What is beneficial ? Pro-rata pension or Pension on combined service ?

Click here for the Pro-rata Pension Calculator: Input your Date of Entry in the Department, Basic pay in CDA as on 1.10.2000 and average basic pay from 1.12.1999 to 30.9.2000. You will get corresponding Pro-rata pension wef 1.10.2000, revised pro-rata from 1.1.2006, Arrears from 1.10.2006 to 30.6.2008 and the net arrears along with total Gratuity amount receivable by you.

The following table shows the comparison of both. 

Sl.No.

Pro-rata Pension

 

Pension on combined service

1

Pension:-

Pension :-

 

a) Government pension rules

Government pension rules

 

b) Service up to absorption on 30/09/2000

Service from date of entry (before and after absorption) to retirement.

 

c) Every month pension will be paid from 01/10/2000. Pension will be paid while in service also. To start with, arrears will be paid. But DA on pension is not payable till retirement.

Pension with DA will be paid every month after retirement.

2.

Gratuity :-

Gratuity :-

 

The gratuity due on 01/10/2000 with interest till the date of payment will be paid. GPF rate of interest will apply. It is yearly compounded. Interest is taxable. Maximum gratuity (excluding interest)  is Rs.3.5 lakh

Gratuity is paid on retirement. At present the maximum limit is Rs.3.5 lakhs. Pay commission has recommended maximum of Rs.10 lakhs.

3.

Commutation of pension is not admissible.

Commutation of 40% of pension is admissible. After commutation, 60% of pension and DA on full basic pension is payable.

4.

EL at credit on 30/09/2000 can be encashed. And EL at credit on retirement also can be cashed. However the total leave encashment amount more than Rs.three lakh is taxable.

EL at credit on the date of retirement is encashable. Leave encashment more than Rs. three lakh is taxable.

5.

GPF balance on 01/10/2000 will be converted as employee contribution of CPF. (Contributory Provident Fund) and will earn CPF rate interest which is 0.5 % more than the GPF interest rate.

GPF continues till retirement.

6.

For service from 01/10/2000 to till the date of retirement:-

 

6.1

Contributory provident fund :- MTNL will pay 12% of pay plus DA every month as Employer’s contribution to the CPF. The accumulated amount with interest will be paid on retirement.

Service after 01/10/2000 is also combined in the above.

6.2

Gratuity for service after 01/10/2000:- 15 days salary (pay plus DA) for every completed year of service is payable on retirement.

 

6.3

Pension under Employees Pension Scheme ’95:-

a)      Those who may retire after 01/10/2012 are eligible.

b)      Out of the employer’s contribution to CPF, EPS pension contribution of Rs.541/- p.m. will be remitted to the EPF organization by MTNL.

c)      The EPS pension is payable by EPF organization.

d)      DA is not admissible on EPS pension.

e)      EPS pension=Rs.6500 x No.of years of service till retirement / 70