Pension is the scheme regulated under General Insurance (Employees) Pension Scheme 1995.
What is the Date of commencement of Scheme?
As per Chapter-1 (Para-1) the commencement date is 1st November 1993.
To whom the scheme is applicable?
All the confirmed employees of GIC and its subsidiaries viz .Oriental, New India, United India and National Insurance and have completed minimum ten years on date of retirement and opted for the Pension Scheme. It is also applicable to employees who have retired on after 1st Day of January, 1986 with certain parameters.
When this scheme is applicable?
On retirement in accordance with Rationalisation and Revision of Pay Scales and other conditions of service notified by Govt. from time to time.
On attaining the age of Superannuation (i.e.60 years of age) on the lat day of the month.
Refer Para 2( J ) of the Scheme. It is also applicable to employees who tenders Voluntary Retirement known as VRS..Employees who have opted for SVRS, they will be governed by Basis of pay linked to AICPI 1740 points.(Rationalisation Scheme of 01.08.1997)
What is Voluntary Retirement ?
An employee who completes 20Years of service and tenders 90days notice in writing to appointing authority to retire from the services Refer(Chapter V)30( 1 )
What are the components for calculation of Pension?
1) Basic Pay 2) Basic Portion of FPA3) Part of other allowances considered for PF calculation.
How the Pension is Calculated?
Step !: Average pay based on previous ten month Basic Pay plus other components Say Rs.20000.00
Step2: 50% of Average pay Say Rs.10000.00
Step 3: Basic Pension (Average pay * 33/33) Say Rs.10000.00
Step 4: Date of Commutation: 1st of the next month Say 01.06.2009
Step 5: Commutation of Pension: at the age of 61(9.81*(10000/3*12) say Rs.392400
Step6: Pension after Commutation (40% or 1/3rd of commutation) Say 6667.00
Step7:D.R. on Basic Pension of Rs.10000.00/-As per CPI
Step8: monthly pension=( 6 + 7 )
Step9: Restoration of Step 3 will be 15years from date of commutation viz:01.06.2024
GAITONDE
10.01.2010
As per the Scheme Pensioners are Dearness Relief ( D. A. ) is revised upward or downward in every six months effective from Feb & August.
You can become a member by submitting prescribed application form with life membership of Rs.800/- as entrance fee. A donation is also expected from you. You have to remit it by D.D. or core banking or by cheque.
Commutation means permission to sale maximum 1/3rd basic pension for a lumpsum amount calculated on given formula. This commutation is restored after fifteen years of survival of pensioner.
Three months in advance of your retirement you should option pension proforma from the office of posting fill in properly and submit keeping proof of it.
You can submit You request for membership by filling the form given on "Become member?.." where you submit your details.
Retirement age for PSU employees is 60years. under the notification employees can opt for voluntery retirement. also under SPECIAL VOLUNTARY RETIREMENT schem 2002 emplyees were seek retirement earlier than 60 years.
DA means Dearness Allowance which is paid to in-service Employees on basic pay
DR means Dearness Relief which is paid to Retired Employees on a basic pension.
DA is paid at a certain percent for each slab of four points of quarterly average AICPI-IW.
DR is paid at a certain percent for each slab of four points of quarterly average AICPI-IW and is revised half-yearly in February/August.
Pay scales are revised every 5 years on the basis of AICPI-IW
(1)Group I
Retired Employees Pensioners who retired between 01.01.1986 & 31.07.1992(Class III & IV) & 01.01.1986 & 31.03.1993(Class I & II)
Scales of Pay at AICPI-IW 600.
Last Average AICPI-IW(01.08.2019) 7164
Increase =(7164-600)=6564
Slabs=6564/4=1641
Rate of DR per Slab
Basic pension
Upto 1250 0.67%
Next 758 0.55%
Next 130 0.33%
Above 2130 0.23%
(2)Group II
Retired Employees Pensioners who retired between 01.08.1992 & 31.07.1997(Class III & IV) & 01.04.1993 & 31.03.1997(Class I & II)
Scales of Pay at AICPI-IW 1148.
Last Average AICPI-IW(01.08.2019) 7164
Increase =(7164-1148)=6016
Slabs=6016/4=1504.
Rate of DR per Slab
Basic pension
Up to 2400 0.35%
Next 1450 0.29%
Above 3850 0.23%
(3)Group III
Retired Employees Pensioners who retired between 01.08.1997 & 31.07.2002
Scales of Pay at AICPI-IW 1740.
Last Average AICPI-IW(01.08.2019) 7164
Increase =(7164-1740)=5424
Slabs=5424/4=1356
Rate of DR per Slab
Basic pension
0.23%
(4)Group IV
Retired Employees Pensioners who retired between 01.08.2002 & 31.07.2007
Scales of Pay at AICPI-IW 2328.
Last Average AICPI-IW(01.08.2019) 7164
Increase =(7164-2328)=4836
Slabs=4836/4=1209
Rate of DR per Slab
Basic pension
0.18%
(5)Group V
Retired Employees Pensioners who retired between 01.08.2007 & 31.07.2012
Scales of Pay at AICPI-IW 2944.
Last Average AICPI-IW(01.08.2019) 7164
Increase =(7164-2944)=4220
Slabs=4220/4=1055.
Rate of DR per Slab
Basic pension
0.15%
(6)Group VI
Retired Employee Pensioners who retired between 01.08.2012 & 31.07.2017 & onwards
Scales of Pay at AICPI-IW 4708.
Last Average AICPI-IW(01.08.2019) 7164
Increase =(7164-4708)=2456
Slabs=2456/4=614.
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