A Manual on Pension Procedures (NEW)

Shaheen...2796-01....MS-Wing....PC-3 FOREWORD The last edition of “A Manual of Pension Procedures” was published in 1999. The manual proved very useful and served as an authentic reference book for settlement of pension cases. The government has introduced a number of measures to ensure expeditious disposal of pension cases of retired government servants. Instructions/Orders were issued from time to time to facilitate retired government servants and their families in case of death of government servants. The Pakistan Public Administration Research Centre of Establishment Division being the sole agency to prepare, review, update and publish Administrative/ Establishment Codes and Manuals, have now reviewed and updated the Manual in consultation with the Finance Division and Office of the Accountant General of Pakistan Revenue and brought out this comprehensive revised edition-2006 which incorporates all such policy guidelines and procedures for initiation and finalization of pension cases without any delay. 2. It is hoped that the Manual will serve as a guide for the functionaries dealing with pension cases and will assist Ministries/ Divisions/Departments in timely completion and submission of such cases. 3. Though every effort has been made to ensure accuracy and comprehensiveness, however, any error, omission or suggestion for improvement may kindly be brought to the notice of Director General, Pakistan Public Administration Research Centre, M. S. Wing, Establishment Division Islamabad. (Sheikh Naseer-ul-Haq) Additional Secretary Islamabad November, 2006 (i) (ii) PREFACE One of the functions of the Pakistan Public Administration Research Centre (PPARC) of Establishment Division is preparation, review, updating and publication of the administrative/establishment codes and manuals to facilitate the disposal of official business in federal government. The Centre has compiled and published twenty five codes/manuals and their updated editions. 2. The previous edition of “A Manual of Pension Procedures” was published in 1999. Since then a number of further instructions and orders were issued by the government on the subject which necessitated bringing out a revised edition of the manual to facilitate retiring government servants and their families who expired in service or after retirement in settlement of pension cases. 3. The PPARC undertook review of the last edition (1999) of ‘Manual of Pension Procedures’ and updated it by incorporating the new instructions/orders issued till July, 2006 as well as relevant portions of Pension Act, 1871, Articles of CSR, orders relating to pension increases from 1-7-1980 onwards etc. The manual has been finalized in consultation with the Finance Division and the Office of the Accountant General of Pakistan Revenue (AGPR). I hope this comprehensive edition will prove to be of immense utility for timely preparation and completion of pension papers. 4. I am thankful to Mr. Muhammad Raziq, Sr. Joint Secretary, Mr. Khadim Husain, Section Officer of Finance Division and Mr. Muhammad Parvez, Deputy Accountant General, Office of the AGPR for their cooperation extended in vetting the manuscript prepared by PPARC. I am also grateful to Sheikh Naseer-ul-Haq Additional Secretary, Establishment Division for his guidance, encouragement and support to bring out this revised edition. 5. I also appreciate the efforts of Mr. Zahoor Gul, Printing Officer and Mr. Ghulam Haider, Proof Reader of PPARC for proof reading/checking and publication of the manual. 6. Any suggestion for improvement of the manual will be welcome and may be forwarded to Director General, Pakistan Public Administration Research Centre, Management Services Wing, Establishment Division, Islamabad. (Saeed-un-Nisa Abbasi) Director General Islamabad November, 2006 (iii) (iv) Shaheen Job No. 2796-1----2796(04)M.S. Wing....PC-3....01—06 CONTENTS Section Sl. No(s) Page(s) Foreword ................................................................. (i) Preface .................................................................... (iii) (1) THE PENSIONS ACT, 1871 1 1 REVISED PENSION RULES: (i) Terms used in the Pension Rules and their Explanation. ..................................................... 2 5 (ii) Provision of Civil Servant Act, 1973 ............... 3 6 (iii) Classification of Pension: ................................ 4 7–9 (a) Compensation Pension. (b) Invalid Pension. (c) Family Pension. (d) Superannuation Pension. (e) Retiring Pension. (iv) Conditions of qualifying service ...................... 5 10–11 (v) Condonation of interruption and deficiencies in qualifying service for Pension/Gratuity ........... 6–9 12–14 (2) LIBERALISED PENSION RULES: (i) Liberalised Pension Rules, 1977 and ancillary instructions ...................................................... 10 15–22 (ii) Clarification of Procedure for calculation of Pension/Gratuity .............................................. 11–17 23–27 (iii) Calculation of Pension without applying any reduction due to cut off points......................... 18 28 (v) Section Sl. No(s) Page(s) (iv) Calculation of Pension on last pay/emoluments drawn .............................................................. 19–20 28–29 (v) Benefit for extra years of service after completion of 30 years ........................................... 21–22 29 (3) PENSION-CUM-GRATUITY SCHEME: (i) Pension-cum-Gratuity Scheme, 1954 .............. 23 31–40 (ii) Payment of family Pension in the case of employees who remain missing for 12 months 24–25 41 (iii) Commutation of Pension ................................. 26–29 41–44 (iv) Rates of Commutation/Commutation Table .... 30–32 44–46 (v) Grant of Commutation to the Widow of a Government Servant retired on superannuation but expired before signing his Pension/ Commutation claims ........................................ 33 47 (vi) Grant of Commutation to the Widow of Govern- ment Servant,Retired on Invalidation by Medi- cal Board but expired before signing his pension/commutation claims ................................. 34 47 (vii) Grant of commutation to the widow of Govern- ment servant compulsory retired but expired before sining his pension/commuted claim ...... 35 48 (viii) Pension and Commutation under Revised Pay Scales 2001 ..................................................... 36 48 (ix) Pension and Commutation under Revised Pay Scales 2005 ..................................................... 37 51 (x) Anticipatory Pension ....................................... 38 52 (xi) Wounds, Injuries and Extraordinary Pension .. 39 53 (vi) Section Sl. No(s) Page(s) (xii) Restoration of 1/4th amount of gross pension surrendered in lieu of Gratuity......................... 40–41 54 (xiii) Withdrawal/Restoration of pension surrendered in lieu of Commutation/Gratuity ...................... 42 55 (xiv) Grant of Family Pension for life to a widow/ widower .......................................................... 43–44 56 (xv) Grant of family pension to those widows whose husbands died after drawal of pension for 5/10 years before 1st July, 1983 ................ 45 57 (xvi) Grant of family pension to the widows of those civil servants who had retired before 24th March, 1954 or who did not opt for the pension- cum-gratuity scheme of 1954 .......................... 46–47 57–58 (xvii) Admissibility of pension for life to a widower. 48 58 (xviii) Grant of Minimum Pension to Ex-Burma Police Pensioners ............................................ 49 59 (4) PROCEDURE FOR SANCTION OF PENSION: (i) Steps for finalisation of pension cases ............ 50–51 61–73 (ii) Grant of Usual Increment in the year of retirement ........................................................... 52 73 (iii) Procedure for preparation of Pension papers and sanction of Pension .................................. 53 74 (iv) Stages relating to preparation and disposal of an Ordinary Pension Case .............................. 54 80 (v) Introduction of Revised Pension application Forms CSR-25 ................................................ 55 80 (vii) Section Sl. No(s) Page(s) (5) EMOLUMENTS RECKONED FOR PENSION: (i) Definitions of the terms ‘Emoluments’ and ‘Average Emoluments’. (CSR-486-487) ........ 56 91 (ii) Determination of Amount of Pension .............. 57 92 (iii) Calculation of average emoluments for the pur- pose of Pension ............................................... 58–59 94 (iv) Calculation of Pension on the basis of revised pay scales ........................................................ 60–64 94–100 (v) Grant of increase in Pension ........................... 65–69 100–104 (vi) Grant of increase in pension to Civil Pensioners of the Federal Government including civilians paid from DefenceEstimates .......................... 70 105 (vii) Revision of Basic Pay and Fringe Benefits of Civil Employees (BPS 1—22) of the Federal Government (2001) ......................................... 71–72 106–107 (viii) Incentives for Civil Servants of B-20 and above ............................................................... 73 107 (ix) Restoration of Pension Surrendered in lieu of Commutation/Gratuity ..................................... 74–75 107–108 (x) Grant of Increase in Pension to Civil Pen- sioners of the Federal Government as well as Retired Armed Forces Personnel ............... 76–79 108–110 (xi) Revitalization of the Critical Services; Institu- tional response to sectarian violance against Government officials ....................................... 80–82 112 (xii) Payment of

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