Government servant? Know all about the classes of pension; which one are you eligible for
If you are working as a government employee, you are entitled to get pension on monthly basis after your retirement. Barring government organizations, there are some large companies which also offer pension to their employees but not all employers do the same. Under a pension plan, employer contributes money to the pension plan while you are working, and the amount is paid to you as a monthly check after you reach a specific retirement age. Notably, a formula determines how much pension income you will receive once you reach supperannuation.
Superannuation
A superannuation pension shall be granted to a Government servant who is retired on his attaining the age of superannuation. Image source: PTI
Retiring Pension
A retiring pension shall be granted to a Government servant who retires, or is retired before attaining the age of Superannuation or to a Government servant who, on being declared surplus opts, for voluntary retirement. Image source: Reuters
Voluntary Retirement
Any Government servant can apply for voluntary retirement, three months in advance, only after the completion of twenty years of his qualifying service, provided there is no vigilance or Departmental Enquiry pending /initiated against him/her. Image source: PTI
Invalid Pension
Invalid Pension may be granted if a Government servant applies for retirement from the service on account of any bodily or mental infirmity which permanently incapacitates him/her for the service. The request for invalid pension has to be supported by medical report from the competent medical board. Image source: Reuters
Compensation Pension
If a Government servant is selected for discharge owing to the abolition of a permanent post, he shall, unless he is appointed to another post the conditions of which are deemed by the authority competent to discharge him/her to be at least equal to those of his own, have the option.
(a) of taking compensation pension to which he may be entitled for the service he had rendered, or
(b) of accepting another appointment on such pay as may be offered and continuing to count his previous service for pension. Image source: Reuters
Compassionate Allowance
(i) A Government servant who is dismissed or removed from service shall forfeit his pension and gratuity:
Provided that the authority competent to dismiss or remove him from service may, if the case is deserving of special consideration, sanction a compassionate allowance not exceeding two-thirds of pension or gratuity or both which would have been admissible to him if he had retired on compensation pension.
(ii) A compassionate allowance sanctioned under the proviso to sub-rule (i) shall not be less than Rs. 9,000/- pm. Image source: PTI
Pension income puts you in an advantageous position as it provides you guaranteed income. You must think of your future and chalk out a plan as to what amount you should save to create a corpus amount to benefit you when your superannuate. Therefore, there is always future value attached to saving into a pension scheme. Image source: PTI