BANKING AFFAIRS

Detailed explanation-1: -Defined as per Rule 33 of CCS Pension Rules for the purpose of calculating pension (other than Retirement / Death gratuity). It includes basic pay (substantive or officiating), Non-Practising Allowance and Stagnation Increment. Further, Dearness Pay (i.e. 50% of basic pay) is also counted as ‘emoluments’ w.e.f. 1.4.

Detailed explanation-2: -The emoluments for the purpose of retirement/death gratuity are reckoned in accordance with rule 31. If the emoluments of a Government servant have been reduced during the last ten months of his service, average emoluments as referred to in rule 32 are treated as emoluments.

Detailed explanation-3: -W.e.f 1.1.2006, Pension is calculated with reference to emoluments (i.e.last basic pay) or average emoluments (i.e. average of the basic pay drawn during the last 10 months of the service) whichever is more beneficial. The amount of pension is 50% of the emoluments or average emoluments whichever is beneficial.

Detailed explanation-4: -Accordingly the first proviso of Rule 50(1)(b) of the CCS (Pension) Rules, 1972, shall stand modified to the effect that the amount of retirement/death gratuity payable under this rule shall in no case exceed Rs. 3.5 lakhs.” Except for the above, the other provisions of O.M. dt.

Detailed explanation-5: -A gratuity is nothing more than a token of appreciation from an employer to an employee for the latter’s work. Instead, the pension is a retirement plan where the employer invests a set amount in guaranteeing payment to the employee upon retirement. The employer pays the entire Gratuity amount in one lump sum.