Discontinuation of Multiple Pensions (Officers)
previous Rule
Previous Rule. If a person was re-employed on a pensionable job after
retirement. He was entitled pension from both the departments. On his death, his family was entitled family pension (75%) both pensions. In some cases, more than two pensions were given, e.g. A widow getting 2 pensions of husband and one pension of father (after death of mother)
New Rule
Only one pension is entitled. Employee has the option of holding higher one and surrender all others.
Pension Succession
previous Rule
Previous Rule. On death of pensioner, his spouse is entitled 75% family pension. On death of spouse, same is transferred to unmarried / widow / divorced daughter for life / re-marriage
New Rule
New Rule. Unmarried / widow / divorced daughter will get family pension for only 10 years.
No Compounding Increase of Pension
Previous Rule
(1) Every year, increase is announced on drawing pension.
(2) On 1st Year, if pension is 10,000, then 10% increase is 1,000 and pension becomes 11,000.
(2) Next year, 10% increase is on 11,000, increase is 1,100 and pension becomes 12,100.
New Rule
(1) No compounding. Increase will be given on gross pension (GP) worked out at time of retirement.
(2) Pensioner retd in 2016 and drawing pension now is Rs 111,185 had GP
Rs 42,227 (almost 1/3rd). Increase will be on GP.
Contributory Pension
a. Previous Rule. Govt was bearing all expenses.5.Either Pay or Pensiona.
b. New Rule. During service, deductions from pay will be made to give pension.
Either Pay or Pension
Previous Rule. Re-employed govt servants were getting pay of job and pension of previous service, both.
b. New Rule
(1) Either get salary from new job, or get pension.
(2)Mostly, armed forces personnel effected, who retire at early age.
(3) Moral. After retirement, go for business, not for job.
