I am sharing here for the readers the details of Gratuity Pension Rates History and Pension Contribution in the Urdu language. After this article, you will be able to know the basic information of pension, commute, gratuity, and pension contribution. You will also get information that most of the employees and accounts-related persons don’t know. Let’s start:
Pension Contribution in Urdu and Gratuity Rates
Pension Gratuity Before 1985
When in 1954 Family Pension started, it was emphasized that if the employee died before retirement or within 5 years after retirement, then his family got a pension for a particular period.
Duration of Pension:
The retired employee got a pension till his / her life but family pension duration at the start was 5 years and later on it increased for 10 years. During service death, the Government granted a family pension to the full fixed period. But if the employee died after retirement, his / her family got a pension after deducting the period for which he/she got the pension from 5 or 10 years.
The ratio of Family Pension
In cases of service death, the family got 75% of the pension that the employee would get in case he got as was live and got pension on retirement. If the employee died after retirement, then his family used to get 50% of the pension he/she got already. For example:
- During service death case if the employees own gross pension is Rs. 100/- the family got 75 rupees
- Death after retirement case, if the pensioner already getting Rs. 100/- ten his / her family got Rs. 50/-
Gratuity / Commute
In past, whether the employee, got his / her pension after retirement or his / her family got a pension in case of during service death, in both cases the Govt paid gratuity 1/4th of the lump sum gross pension. This 1/4th part was called surrendered part of the pension. For example, if the gross pension of the employee is 100 rupees, then 25 rupees from this amount was taken as gratuity. They fixed the amount of gratuity of the period of employment at a particular ratio. At the start, the pensioner got 120, 130, or 140 rupees for one rupee according to the duration of service. Later on, the Government increased this amount since 1970 to Rs. 160, 187, or 210 rupees.
Family Pension History
It is to mention here that Family Pension started in 1954 before this Government did not allow family pension. However, the pensioner had the right to commute ½ th of the gross pension. For example, if the gross pension of the pensioner is Rs. 100/- he/she had the option to got commuted Rs. 50/- out of 100/-.In this way, he/she got a lump sum commute. To get this lump sum amount he/she would have to get the medical board. Medical Board after examination recommended for how many years pension is to be commuted. This commutation was final and the commuted portion of pension was forever gone and could not be restored.
The important change since 1985 was the restoration of the Commuted Portion of pension. After 1986 there was an important change, the commutation period government fixed without medical board examinations and its recommendations. The government started the restoration of family pension since 1994. Since 2001, there were more changes, the number of years for commutation decreased. The Govt fixed the commutation limit 40% instead of 50%. In 2005, the further decreased to 35% instead of 40%. The government also fixed the increase of pension on current pension instead of a gross pension.
In 2010 they made an important change, Govt increased Family pension in such a way that:
- In case of during service death, family pension increased from 75% to 100%
- After retirement death, family pension increased from 50% to 75%
Sometimes, Government transfers the employee temporarily, to any other department where there is no facility for a pension. For example, provincial or federal employees are sent to companies or foreign departments. This temporary appointment according to pension rules is called foreign service and such a department is called a foreign employer. Pension Contribution in Urdu will help you to understand this topic.
The pension amount depends on two things; one is the pensionable duration of service and 2nd is emoluments for the purpose of pension. In these emoluments, you don’t add all the pay.
You can serve Foreign Service many years before retirement so according to rules from the foreign employers you get pension contribution during Foreign Service. The foreign employer can pay the pension contribution directly on a monthly basis and if suitable or necessary, the employee on foreign service can pay pension contributions himself/ herself. Unless the Government does not receive this contribution, the foreign service is not pensionable.
On temporary Transfer from Provincial to Federal
Remember, the temporary transfer of the employees from Federal to Provincial or from Provincial to Federal is not considered a foreign service. Emoluments of all these Governments are official. You can say this temporary transfer as Deputation. On the retirement of the employee, you calculate which Government the employee had how much service length. At the time of approval of pension, the head of the department has to mention the rate of pension for each Government. Federal and Provincial AG Offices have the calculation of this pension contribution.
How to Fix Contribution?
Now the question arises, how to fix the pension contribution during foreign service? Its answer is available in Appendix 11-A of Fundamental Rules Vol-II. The mean of the initial and maximum of the pay scale is taken of the employee in which he was at the time of transfer to foreign service. If there is any pensionable emolument then you should also add it. 1/3rd of such amount they count as pension contribution every month.
For example, if the initial and final stage of the pay for the employee going on foreign service are Rs. 10000/- and 20000/- ten the mean of the pay will be Rs. 10000 + 20000/2 = 15000/- If qualification pay is Rs. 600/- then total emoluments will be Rs. 15600/-. In this way, a monthly contribution is 15600/3 = Rs. 5200/-.
There you can see such situations when two non-government independent departments have fixed the procedure of pension contribution. For example, a university employee after serving a few years in that university adopted employment in another university and retired from the second university. The first university paid the amount of pension contribution on demand of the 2nd University. You can call it capital value. They have to fix the interest amount for the capital value or net present value. Read below the full detail of Pension’s contribution to Urdu to clear the concept.
(By Mr. Agha Amir)
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