PRO-RATA PENSION
Vs COMBINED SERVICE PENSION -FAQ
For absorbed Gr-B
and Gr-A officers:-
PRO-RATA PENSION
1) What is
pro-rata pension ?
Pro-rata pension means
the proportionate pension for the Government service. It is calculated as
per the Government pension rules. The pro-rata pension is paid by the
Government.
2) Who is
eligible for pro-rata pension benefits ?
In MTNL the
absorbed Gr-B or Gr-A employees having 9 years and 9 months of continuous
service (including the training period ) as on 30/09/2000 are eligible for
pro-rata pension for the period of Government service.
3) What are all
the pro-rata pension benefits ?
a) Pension from 01/10/2000: Arrears of pension will be paid from
01/10/2000.
b) Gratuity : It will be paid with interest at GPF interest rates
compounded annually from 01/10/2000 till date of payment..
c) Leave Encashment:- EL at credit on 01/10/2000 can be encashed. OR
carried over for encashment on retirement.
d) Family pension based on CDA pay on 01/10/2000 if specifically opted.
Commutation of
pension is NOT admissible.
4) How the
pension is calculated as per Government rules ?
As per Government pension rules the pension depends upon length of
qualifying service and average pay for the last 10 months.
Three months and above is one six monthly period. The training period prior
to appointment is also considered as qualifying service. The maximum six
monthly periods is limited to 66.
Pension=10 months average of basic pay
from Number of six monthly periods of
01/12/1999 to 30/09/2000 /
2 X Qualifying service / 66
Pension is taxable.
Minimum amount of pension p.m. = Rs.1913
5)
How the Gratuity is calculated ?
Gratuity = Pay plus DA for Sep’2000 X No. of
six monthly periods of service / 4.
· No. of six
monthly periods is limited to 66.
· The
maximum limit is Rs. 3.5 lakhs only.
Gratuity is NOT taxable.
6)
Any interest is payable for arrears of pension and gratuity ?
6.1 Interest is NOT payable for the arrears of pension.
6.2 The gratuity
has become due on 01/10/2000. This gratuity amount will carry interest till
the date of payment at GPF interest rate, compounded yearly.
The interest on
gratuity is taxable.
7) Leave
Encashment :-
7.1 EL at credit
on 01/10/2000 can be encashed.
L. E. = Pay +
DA on CDA on 01/10/00 X No. of days of EL / 30
Leave Encashment
amount beyond Rs.three lakhs is taxable.
Benefits for MTNL
Service:-
8. Whether any pension
is payable for MTNL service after 01/10/2000 ?
Yes. If you opt for
pro-rata pension, you will get the following benefits for the MTNL service.
a)
Contributory Provident fund
b) Gratuity
under Gratuity Act
c) EPS
(Employees Pension Scheme’95) Pension for MTNL service.
9. What is Contributory
Provident Fund ?
Contributory Provident
fund:- Every month MTNL will pay CPF contribution to MTNL PF Trust @12% of
basic pay plus DA of that month.
Out of this contribution
a sum of Rs.541/- will be remitted to Employees Provident Fund Organisation
towards EPS pension contribution.
The balance (12% of
basic pay + DA (-) Rs.541/-) money in the PF Trust will accumulate with
interest compounded yearly and will be paid on retirement by the MTNL PF
Trust..
10. How gratuity is
calculated under gratuity Act ?
Gratuity is equal
to 15 days of service for every completed year of service.
Gratuity payable for
Government service and gratuity payable for MTNL service together is limited
to 3.5 lakhs.
11. What is EPS Pension
?
It is governed by ‘The
Employees’ Pension Scheme, 1995. The EPS Pension is paid by Employees
Provident Fund Office of Central Government..
Out of the CPF
contribution a sum of Rs.541/- per month (@8.33% of Rs.6500) will be paid
to EPF organisation as contribution towards EPS pension up to 58 years of
age. However the EPS pension will start on retirement at 60 years.
EPS pension =
RS.6500 X Period of contribution / 70
Two years weightage will
be added to period of contribution on retirement.
12.Whether any DA is
admissible on EPS pension ?
No. DA is not admissible
on EPS pension.
13. Who are eligible
for EPS pension ?
a) Gr-C and
Gr-D employees recruited in MTNL on or after 01/11/98
Gr-B and Gr-A officers
recruited on or after 01/10/2000.
b) Pro–rata
pension optees with 10 years of continuous service in MTNL up to his age
of 58. In other words the pro-rata optees with date of birth on after
01/10/1952 are eligible.
Pension on
combined service:-
1. Who are
eligible for pension on combined service ?
Absorbed employees who
have not opted for pro-rata pension are eligible for pension on combined
service.
2. What are
the benefits ?
a) Pension on
total service (Service from date of entry to date of retirement) as per
government pension rules.
b) Gratuity
as per government pension rules
c) Leave
encashment of EL at credit on the date of retirement.
3. Who will
pay the pension on combined service ?
As an interim measure
MTNL is paying. The ruling position is as under:-
a) For Gr-C
and Gr-D employees :- MTNL pension trust should pay. This pension trust has
not yet been constituted.
b) For Gr-B
and Gr-A employees:- Central Government pension trust should pay. This
pension trust has not yet been constituted.
4. What do we
demand ?
All the Unions and
Associations of MTNL demand that the pension should be paid by the
Government. In BSNL pension is poid by the Government.
5. Please
tell me clearly whether I should opt for prorata pension or not?
Illustrations of
benefits under both the options will be on our site within a few days.
For any query please
mail to tkjawahar@rediffmail.com
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