What is the Eligibility for Getting Pension? – Pension is the facilities provided by government to their employees. This is the most important part of retirement financial planning as the life of salaried depends on this component after service. There are certain criteria to be followed in order to get eligible for Pension if working with the government sector or PSU or Public Sector Banks.
- To be eligible for pension, an employee has to render a minimum of ten years of service on the date of retirement on superannuation. Broken period of service of more than six months shall be treated as one year.
- An employee who has opted for pension, on completion of 20 years of qualifying service, may voluntarily retire from the services, by giving a notice of not less than 3 months.
- An employee who has rendered minimum service of 10 years and retires on a/c of any bodily or mental infirmity which permanently incapacitates him for the service, is eligible for invalid pension.
- An employee whose qualifying service is 33 years or more is eligible for full pension i.e. 50% of the pay. Pay means, average pay (EPF ranking) drawn during the last 10 months of service. If the qualifying service is less than 33 years, basic pension is equal to Pay x Qualifying service ÷ 66.
- Total pension receivable per month is equal to Basic pension + applicable DA on basic pension. DA rate will be as applicable to regular employees, but will be varied only in February and August every year. Click to Know How Much Gratuity will you be paid Today