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Government issued 6 new guidelines for pensioners. Everyone will get more money now.

by Amit Tripathi
November 30, 2024
Government issued 6 new guidelines for pensioners. Everyone will get more money now.

In today’s time when every person is worried about securing his future, the new guidelines issued by the Central Government for pensioners are like a news of relief. These guidelines have been issued with the aim of improving pension, GPF, gratuity and other retirement benefits. Especially those employees who have completed their service before 2006 will be able to get better benefits from these guidelines.

Case 1: Pension Revision (under Sixth Pay Commission)

Earlier, pension was determined on the basis of 50% of the last salary, in which there were many discrepancies. Some people, like Mr. Maniklal, claimed that his pension was not determined correctly. Now under the new guidelines, pension will be determined in two ways – 50% of last pay and 50% of minimum pay band + grade pay. With this, pensioners will get maximum and equitable pension.

Case 2: Service period and pension eligibility

Many times employees are deprived of pension due to short service period. Like, Mr. Jagdish, who did not get pension after 9 years and 8 months of service. Now the government has given instructions that a few months of service will be considered as a full year so that more employees can get the benefit of pension.

Case 3: Provision of interest on delayed payment

For pensioners facing financial distress if pension and other retirement benefits are delayed, the government has decided that if the delay exceeds 3 months, they will be given 6% interest.

Case 4: New Pension System (NPS) vs Old Pension Scheme (OPS)

To remove confusion between NPS and OPS, it has been decided to extend the benefits of the old pension scheme to the family of the deceased employee. If there is no eligible member, the NPS funds will go to the legal heir.

Case 5: General Provident Fund (GPF) and ceiling

There is a limit on the annual contribution to GPF, and additional deductions will be stopped if this limit is crossed. However, the interest will be taxable if it exceeds the limit.

Case 6: Payment of Gratuity (for temporary employees)

It has also been decided to give the benefit of gratuity to temporary employees on the basis of length of service, so that they can avail their rights.

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