SERVICE GRATUITY - Service Gratuity in lumpsum is payable in cases where the qualifying service is less than 10 years, in lieu of pension
RETIREMENT GRATUITY - A Government Servant, shall, on his retirement be granted Death-Cum-Retirement Gratuity which is calculated based on the emoluments last drawn and total qualifying service
Calculation of Retirement Gratuity
No Retirement Gratuity is payable in cases where the qualifying service is less than 5 years
Retirement Gratuity is calculated based on the emoluments last drawn and the total qualifying service.
The emoluments for the purpose of Gratuity includes Basic Pay, Special Pay, Personal Pay, if any, and with effect from 1.4.1998 appropriate Dearness Allowance on Pay and Personal Pay admissible on the date of retirement. With effect from 01/01/2006 Dearness pay will also be reckoned as emoluments.
Full Gratuity will become admissible to a person who renders not less than 33 years of Qualifying service.
Half of the qualifying service expressed in terms of years multiplied by the emoluments is the Gratuity in lump sum and the amount so arrived at is subject to a ceiling of Rs.3,50,000.
Gratuity amount calculated is rounded off to the next higher rupee.
DEATH GRATUITY – Where the individual dies while in service, the family is entitled to Death Gratuity as under –
below 1 year
- 2 times of emoluments
1 year and above but Below 5 years
- 6 times of emoluments
5 years and above but Below
- 12 times of emoluments
The facility of nomination is available for Gratuity and a person having a family can nominate any body in the family to receive the Gratuity, when he /she dies before receiving Gratuity after retirement or when he / she dies while in service.
The Family member he can nominate is one or more of the following –
Wife in respect of Male Government Servant
Husband in respect of Female Government Servant
Brothers below 18 years
Children of predeceased son
When there is no family member as mentioned above, the Government servant can nominate any body including a Body/Trust
IF THERE IS NO SUCH NOMINATION – where the individual dies without nominating any body but has left family members, the Gratuity is payable in the following manner to the family:
If there are one or more surviving members of the family as in (1) to (4) above, it shall be paid in equal shares to all such members
If there are no such surviving members of the family as at (1 ) to (4) above but there are one or more members as at (5) to (11) above, to all such members in equal shares
If the individual who has not filed any nomination and is not survived by any of the persons mentioned in (1) to (11) above, it will be payable to a person who makes a claim along with a succession certificate obtained from a Court of Law
Commutation of Pension
A retired Government Servant who has earned a pension can commute upto 1/3rd of his pension i.e., he can surrender up to 33 1/3 % of his pension (in full rupees)
In lieu of surrender, he receives a lump sum calculated with reference to the Commutation Factor as per the Commutation table prescribed by the Government linked with his age next birth day
The amount so surrendered will be restored to him after 15 years from the date of receipt of lump sum amount.
No commutation shall be sanctioned unless medical authority certifies that the pensioner’s health and prospects of duration of life are such as to justify commutation, in cases where the individual applies for commutation after one year from the Date of Retirement or date of issue of Pension Payment Order by Accountant General whichever is later. In the following classes of pension, medical examination is not necessary if he/she applies within one year after the Date of Retirement/ Date of issue of Pension Payment Order.
Medical Certificate is necessary for Compulsory Retirement as a measure of punishment and commutation of compassionate allowance also.
In the case of Pensioner’s drawing invalid pension, certificate of fitness issued by a standing medical board is compulsory for allowing commutation.
Nomination facility is available for commutation of value of pension and also Life time arrears of Pension.
of calculation :-
Lump sum payable = Commutation factor X 12 X amount of Pension opted for commutation
Manner of Payment
GRATUITY - Gratuity is drawn and paid by the Department based on the letter of authority issued by the Accountant General’s Office.
Commuted Value of pension - Commuted value of pension is authorized for payment to the individual concerned through the place of payment of the Government servant‘s choice, indicated for pension
Pension - Pension is authorised for payment to the individual concerned through the place of payment of the Government servant‘s choice. The place of first payment may be a Huzur Treasury, Sub-Treasury. First payment of pension / Family Pension can also be received through Public Sector Banks Scheme. (Subsequently, payment can be obtained through Bank)
Pension Payment Order - The pension is authorised through Pension Payment Order consisting of two Booklets – one meant for the Disbursing authority and the other for the individual. The rate of monthly pension, amount commuted, reduced pension payable (i.e. after commutation) to a Government Servant and the rate of family pension payable to the spouse (where the spouse of the individual is alive) are mentioned in the Pension Payment Order.
Family Pension – When a retired Government Servant dies, the Disbursing Authority can commence payment of Family Pension to the Spouse based on the relevant entries in the Pension Payment Order after observing the prescribed procedure as laid down in the Rules*. In all other cases i.e., in respect of family members other than the spouse, irrespective of their names specified in the Pension Payment Order, under the heading ‘Family members’, the family member concerned should make a claim in Form 14 through the Head of Office for issue of a separate Family Pension Payment Order by the Office of the Accountant General (A&E) .
(*Tamil Nadu Pension Rules 1978)
Forwarding of Applications / Format
Every Government Servant shall submit his application for pension at least one year in advance from the date of his anticipated retirement. The Application Form along with the following enclosures shall be forwarded through the Head of Office / Head of Department to the Accountant General Office for issue of Authorisation of Payment Orders.
Medical certificate of incapacity (if the claim is for Invalid Pension)
Service Book ( Date of Retirement should be indicated in the book)
Two Specimen Signatures, duly attested by the Head of office. Left Hand Thumb impression duly attested by the head of office for those who cannot sign.
Three copies of Passport size Photographs with wife /husband (Joint photo) duly attested by the Head of Office
Two slips showing the particulars of height and identification marks duly attested by Head of Office.
List of Family Members attested by the Head of Office
A certificate to the effect that the Government Servant is permitted to retire voluntarily in cases of Voluntary Retirement along with copy of order allowing voluntary retirement.
In cases where disciplinary proceedings are instituted against a Government Servant
Self Drawing Officers – Application for provisional pension may be sent, pending final orders for authorising Pension by the Accountant General.
Non-Self Drawing Officers – Application for pension need not be forwarded as the Departmental Officer is empowered to sanction provisional pension. Application for normal pension may be forwarded after the final orders are passed.
Format of Applications
Grievances and Complaints
A Pension Enquiry Cell in the office of the Principal Accountant General (A&E) Tamil Nadu redresses the grievances of the Tamil Nadu State Government Pensioners. It functions under the supervision of the Deputy Accountant General (Pension). Pensioners may contact the above Cell in person to redress their grievances on all working days during 10.00 AM to 12.30 PM and 2.00 P.M. to 4.00 PM . Pensioners may contact reception to approach the Pension Enquiry Cell.
In case of difficulty, you may write to:
Senior Accounts Officer (Pen. 30)
Office of the Principal Accountant General (A&E), Tamil Nadu
Chennai – 600 018
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