ALL INDIA GENERAL

INSURANCE FIELD WORKERS’

ASSOCIATION (Regd)

DEVELOPMENT OFFICER’S
SCHEME
Prepared
By JKP
1
 DEVELOPMENT OFFICER’S
SCHEME & AMENDMENTS
 GENERAL INSURANCE (RATIONALISATION OF PAY
SCALES AND OTHER CONDITIONS OF SERVICE OF
DEVELOPMENT STAFF) SCHEME 1976:-
 SCHEME 1976
 SCHEME 1987 - Amendment
 SCHEME 1990 - “
 SCHEME 1994 - “
 SCHEME 1997 - “
 SCHEME 2000 - “
 SCHEME 2003 - “
SCHEME 2008 - “
2

RATIONALISATION SCHEME 1976
EFFECTIVE FROM 1ST MAY 1976
NEW DESIGNATION- Field Workers to
INSPECTORS
COST: Gross Emoluments + all
allowances (incl. Conveyance
allowance, Entertainment allowance,
Bonus/ex-gratia) +TE +Employers
contribution to PF
Cost Control: Termination for 3 years
consecutive excess cost
3
SCHEME AMENDMENT 1987
 Inspectors designated as Development
Officers
 Termination clause withdrawn
 Decrement formula introduced
 Minimum growth for increment
withdrawn
 Growth, Profit Incentives & CSPI
introduced
 Introduced a modified Cost control
system
4
1990 AMENDMENT SCHEME .

•SCHEME EFFECTIVE FROM 1.4.1990

•PERFORMANCE YEAR CHANGED FROM
CALENDAR YEAR TO FINANCIAL YEAR
•INTRODUCTION OF AUTOMATIC
INCREMENT PROVIDED HE IS NOT LIABLE
FOR DECREMENT
.
5
SCHEME 1990 -COST CONTROL

• COST REMAINS THE SAME FOR

OTHER PURPOSES LIKE NON CORE,
FOR PARA 11, 11A & 13 DEALING
WITH COST CONTROL, COST SHALL
MEAN GROSS EMOLUMENTS ONLY.

• INTRODUCTION OF PROSPECTIVE
RESTORATION OF BASIC PAY
REDUCED DUE TO DECREMENTS

6
 AMENDMENT SCHEME 1997
Scheme came in to force from
1.4.1997
COST RELAXATION:
One percent cost relaxation for
those who have attained 55 years of
age and completed 15 years of
service

7
AMENDMENT SCHEME 2000
 EFFECTIVE FROM : 22.06.2000

 STAGNATION INCREMENT
INTRODUCED

8
 SCHEME 2003 – 3 OPTIONS
 Scheme effective from 1.4.2003

THREE OPTIONS
1. Continue as Development Officer
Mktg.
2. Development Officer (Admn)
3. Special Voluntary Retirement Package

9
 DEVELOPMENT OFFICER (ADMIN)
 Development Officer (Admin) -Functions:-
1) In-house survey and risk inspection
 2) Assist in Motor T.P. Claims Management.
 3) Other areas of customer service.
 4)Market research and Product development.
 5) Claims Investigation.
 6) Any other duties as may be assigned to him
from time to time

10
 2003 scheme -Cost
 Cost:- Single cost- It includes gross
emoluments, and all non-core allowances,
 Except PF,Qulification Pay, Mediacl, LTS,
Leave Encashment, and Incentives
 Cost Ratio will be 7%,8% and 10% for
A,B and C class cities applicable for all
purposes on SPI
 Eligibility for Increment-12 months
continuous Service and he is not
liable for decrements 11
DECREMENT/TERMINATION
Every D.O shall work with cost as to
maintain his cost ratio within the
stipulated limit.
COST CONTROL:-
If the cost ratio exceeds the stipulated
cost limits, the non-core allowances
payable to him shall be reduced within
the stipulated limits.

12
DECREMENT/TERMINATION

• During the second year if it may

continue, he may be issued a letter of
warning and third or subsequent years
in succession, his non-core allowances
shall continue to be reduced.
• If there are no non-core allowances to
be reduced, he shall be liable to
decrements in basic pay as follows:
13
DECREMENT/TERMINATION
Cost limits 1st 2nd 3rd 4th 5th years
>1% 1 1 1 1 1
>1%-3% 1 1 2 2 2
>3%-5% 2 2 3 3 4
>5% or more 2 3 3 4 4
If basic has been fixed at minimum of the scale
Gr.II, shall be provided an opportunity of 1 year
to confirm to the stipulated cost limits and will
be issued a warning letter for termination.
If it continues during the next year his services
shall be Terminated by an officer not below the
rank of AGM after giving him a notice of 30 days.
14
 DECREMENT/TERMINATION
 Reduction of non-core or decrement or
termination shall not be deemed to be a
penalty.
 An appeal committee may consider certain
relevant factors such as factual inaccuracies in
computation of premium, cost and cost ratio or
sickness, accident or such individual
extenuating circumstances beyond the control
of D.O adversely affecting the business
procurement will provide certain relief
 On his specific request, be appointed as clerical
staff as may be decided by CMD subject certain
condition.
 Restoration of basic is limited to 2 decrements
at a time.
15
 INCENTIVE – PROFIT INCENTIVE
 INCENTIVE:-A single incentive
scheme on the basis of operating
surplus:-
 Eligibility:- 1) Should operates within
stipulated cost ratio i.e 7%,8%,10%
 2) Generate a minimum operating
surplus of 20% on SPI..

16
 PROFIT INCENTIVE-LIMIT
 3) Single claim limit of Rs.5 Lacs should
be applied
 4) Achieve a minimum growth of 7.5% or
Rs.60000/-whichever is less.
 5) Incentive to be paid @5% of the
operating surplus or 24 times of last
drawn Basic salary whichever is less

17
 WAGE REVISION
(Amendment Scheme 2008)
GENERAL INSURANCE
(RATIONALISATION OF PAY SCALES
AND OTHER CONDITIONS OF
SERVICE OF DEVELOPMENT STAFF)
(AMENDMENT) SCHEME, 2008:-

PAY SCALES AND ALLOWANCES

18
Wage Revision Scheme Came

into force from 01.04.2003

• The pay scales and allowances such as
Basic, DA, HRA, CCA, Qualification
allowances, PF, Gratuity, FPA
w.e.f.01.04.2003
• Hill Station Allowance and Paradeep
Port Allowance- 01.07.2008
• Equitable relief paid from 1.08.2002 to
31.03.2003
• Allowed one more stagnation
increment. Totally three (earlier 2)
19
 SALARY BENEFITS

• REVISED SALARY BENEFITS

• GR-I:Pay scale:- 7850-485(8)-11730-
500(9)-16230-525(2)-17280-540(4)-
19440 :3 stag.Increment
• Gr-II :-5400-350(3)-6450-400(4)-8050
• DA @.18%

20
 Development Officer Grade –I
Stage No.
Grade -II
FIXATION CHART- Fixation of
Sl.No Basic Pay Sl.No Basic Pay Basic Pay

1 Basic 7850
Pay 13 13730 5400
2 8335 14 14230 5750
3 8820 15 14730 6100
4 9305 16 15230 6450
5 9790 17 15730 6850
6 10275 18 16230 7250
7 10760 19 16755 7650
8 11245 20 17280 8050
9 11730 21 17820
10 12230 22 18360
11 12730 23 18900
12 13230 24 19440 21
 DEARNESS ALLOWANCE
(DA@.18%)
 Determined on All India Average
Consumer Price Index for Industrial
Workers
 Base series 1960 = 100
 Rate of dearness allowance: - For every
four points in the quarterly average over
2328 points, shall be calculated at the rate
of 0.18% of Basic Pay.

22
 DA- Calculation

 Made on quarterly basis for every four

points rise or fall.

 The final index figures as published in the

Indian Labour Journal or the Gazette of
India, shall be taken for the purpose of
calculation of dearness allowance.

23
House Rent Allowance (HRA)

• HRA to Development Officers, except those

who have been allotted residential
accommodation by the Company shall be
paid at the specified rates depending on the
place of posting
• HRA : A class City B class C class
10%-(1600) 8%-(1350) 7%-
(1300)
24
 CCA Maximum Limit
• City : A class City B class C class
CCA:- 3%-(400) 2.5%-(360) 2%-
(300)
• Cities shall include their Urban Agglomeration
• Population figures shall be as per the latest
Census Report.
• Pay includes Basic Pay and Stagnation
Increments

25
 STAGNATION INCREMENTS
 on completion of 3 years of service after
reaching the maximum of scale Subject to
satisfied work record
 Stagnation Increments are allowed to
Development officers Grade I
 Subject to a maximum of 3 stagnation
increments in the scale of pay

26
 STAGNATION INCREMENTS

 Stagnation Increment Rs.540/- p.m

Released on request
 On completion of 3 years after reaching
maximum of scale subject to work record
 First stage Basic Rs.19980/-
 Second stage Basic Rs.20520/-
 Third Stage Basic Rs.21060/-
27
 FIXED PERSONAL ALLOWANCE(FPA)
 Paid 1 Increment on Computerisation w.e.f.
01.11.1993
 Those who reached maximum scale of pay, FPA is
payable on account of computerisation
 FPA-Grade I Rs.540/-pm and Grade II Rs.400/-.
Equal to 1 increment is Payable On request
 FPA shall not qualify for any Allowance or for any
service/terminal benefits.
 However, the increment portion of FPA Rs 230/- shall
rank for PF and Pension, and the increment portion
along with DA Rs.18.68 (as on the 1.11.1993) shall
rank for Gratuity and encashment of E/L.
28
Transport Allowance For
Admin
Transport Allowance For Admin-
Development Officers. Rs.250pm

HILL STATION ALLOWANCE – as

applicable range from Rs.270-210 (2.5%
and 2%)

29
Qualification/Lump Sum Medical

• Qualification Allowance:-
• Licentiate Associate Fellowship
• Rs.115/- Rs.325/- Rs.545/-

• Lump-sum Medical Benefit(w.e.f 1.1.04)

• Basic upto 16230 – Rs.2500/-
• Basic Rs.16230/- and above - Rs.4000/-

30
THANKS

Long Live AIGIFWA

31
AIGIFWA PRESENTS
AIGIFWA PRESENTS

DEVLOPMENT OFFICER’S
NON CORE BENEFITS

Prepared
By
JKP32
 NON CORE BENEFITS
• REVISION IN NON CORE BENEFITS
TO DEVELOPMENT OFFICERS
APPROVED BY THE GOVERNING
BOARD OF GIPSA ON 21.10.2008
• 1.LOAN FOR PURCHASE OF CAR: -
• The distinction on the basis of
Petrol and Diesel is replaced by a
distinction on the basis of loan
amount
• Two limits of loan amount- Rs.3.25
lacs & Rs. 3.75 lacs
33
 CAR LOAN -Eligibility
 Completed at least 5 years service
after placement as Grade I or
 In the case of Development Officers
from Class III employees, 5 years from
the date of appointment as
Development Officer.
 Must be drawing the basic pay of Rs.
10,275/- as on 1st April of the relevant
appraisal year.
34
For Loan limit of (Amount in Rs. Lacs)
Rs.3.25 lacs: SPI Class of City
A B C
.

(i) SPI in the preceding year should not

be less than
100 (30) 80 (25) 64 (20)
(ii) Average S PI for 3 years should not
be less than
80 (25) 64 (20) 51 (15)
For Loan limit of Rs. 3.75 lacs:
(i) SPI in the preceding year should not
be less than
150 (45) 120 (38) 96 (30)
(ii) Average SPI for 3 years should not
be less than
120 (36) 96 (30.5) 72 (24)
35
 CAR LOAN- Transitional
Arrangements
• For grant of car loans on the basis
of immediately preceding
performance year 2007-08 as also
2008-09, certain premium norms
would apply as transitional
arrangements.
• On the basis of performance year
2009-10 onwards, the revised
premium norms shall apply.
36
 HIGHER PRICED CAR
 It shall not ordinarily be permissible to
avail of the car loan for a model priced
higher than the loan amount.
 In case of a Development Officer
procuring a premium income of Rs. 2
crores or above in the preceding year
and an average SPI of Rs. 1.5 crore in
the preceding 3 years, CMD may relax
the norms and permit to purchase
Higher priced model.
37
TWO WHEELER LOAN

• LOAN FOR PURCHASE OF TWO-

WHEELER : -
• A limit of Rs. 60,000/- as the
maximum loan for two wheelers
in any model shall be applicable
for Development Officers Mktg..

38
 TWO WHEELER LOAN FOR
DEVELOPMENT OFFICER ADMIN
 For Development Officers (Administration),
shall be allowed the Two Wheeler loan
facility with a loan limit - 80% of invoice
value subject to maximum Rs 25,000/-
 Repayment term five years or 60
instalments and Interest rate is @ 5% p.a on
reducing balance

39
 INTEREST FREE LOAN FOR
REPAIRS
• Interest free loans for major repairs to
vehicles.
• Not more than 1 loan is permitted for a
two-wheeler and not more than 3 for a
car.
• The loan limits for major repairs are:-
• Old Limit New Limit
• Four Wheeler Rs. 6000/ Rs. 10000/-
• Two Wheeler Rs. 2500/- Rs. 4000/-
40
REGISTRATION,ROAD TAX AND
INSURANCE
Where the Dev.Officer owns a vehicle
whether on his own or purchased with
the loan facilities, the following
expenses will be reimbursed.
Premium for insuring the car under
package cover as well as the
registration charges and road and other
taxes payable, shall be borne by the
company.
41
REPLACEMENT OF TYRES,
TUBES AND BATTERIES
 80% of cost of replacement of tyres, tubes,
batteries appropriate to the vehicle will be
reimbursed.
 Tyres, tubes of Car can be replaced after 32000 kms
 20000 kms in the case of M/C and 15000 kms in the
case of scooter.
 battery can be replaced after 18 months
 An amount of Rs.300/- for a set of tyre/tubes and
Rs.150/-for battery in the case of Car and Rs.25/- in
the case of two-wheeler will be deducted.
42
 Replacement of Car
after 5 years
• Development Officer may be allowed
change of car after a minimum period of
5 years.
• Change in the vehicle under the existing
loan and No fresh loan will be allowed.
• The balance outstanding loan would be
transferred to the new vehicle.
• Purchase new vehicle from own
resources and the new vehicle should be
hypothecated in favour of the company.
43
 3 CAR LOAN IN THE ENTIRE
SERVICE
 The limit of maximum loans in the entire
service period will be 3 as per the
provisions.
 3rd car Eligibility:-

 Applicable Premium and eligibility norms +

 One lac km in 2nd car +

 8 years after 2nd car

44
CONVEYANCE ALLOWANCE
• Conveyance Allowance Revised w.e.f.
01.04.2008.
• Premium from 5 lacs to 15 lacs-
conveyance allowance will be from 960
to Rs.2110/- range.
• Conveyance allowance for Development
Officer Grade-II (other than on Admin) is
revised from Rs.150/- to Rs.400/-
• DEVELOPMENT OFFICERS GRADE-I WITH
PREMIUM INCOME OF RS. 15 LACS AND ABOVE
will be:-
45
PREMIUM
SPI
RS.15 LACS AND
WITH CAR
ABOVE
WITHOUT CAR

Old New Increase Old New Increase

Premium
Conveyance Conveyance Conveyance Conveyanc
15 – less than 25 2200- 2520 2750 230 1460-1575 1675 100-215
25 – less than 35 2520-2680 3000 320 1575 1875 300
35 – less than 50 2680 3500 820 1575 2325 750
50 – less than 60 2680 4000 1320 1575 2800 1225
60 – less than 65 2680 4250 1570 1575 2975 1400
65 – less than 70 2680 4500 1820 1575 3150 1575
70 – less than 75 2680 4750 2070 1575 3325 1750
75 – less than 80 2680 5000 2320 1575 3500 1925
80 – less than 85 2680 5250 2570 1575 3675 2100
85 – less than 90 2680 5500 2820 1575 3850 2275
90 – less than 95 2680 6000 3320 1575 4050 2475
95 – less than 100 2680 6500 3820 1575 4250 2675
46
100 and above 2680 7500 4820 1575 4500 2925
 TELECOMMUNICATION EXPS.

 REIMBURSEMENT OF TELEPHONE
EXPENSES RENAMED AS
TELECOMMUNICATION EXPENSES-

 Introduced the system of reimbursement

which is linked to monetary limits.

47
 Telecommunication Exps.
 These monetary limits shall be
inclusive of expenses on both landline
connection as also the mobile
connection (including Internet).
 Revision in the monetary
reimbursement of telecommunication
expenses - w.e.f. 1st April, 2008

48
 Maximum limit of reimbursement
towards rental and call charges
taken together permissible p.a
.
Premium Income for the preceding year (Exclusive of service tax) (Rs)
Previous Revised
Not exceeding Rs. 15 lakhs 5200-6600 6600
•.
15 lacs or above but not exceeding Rs. 25 6600-6800 7500
25 lacs or above but not exceeding Rs. 35 6800-7000 8000
35 lacs or above but not exceeding Rs. 50 7000 10000
lacs
50 lacs or above but not exceeding 7000 12500
Rs. 75 lacs
75 lacs or above but not exceeding 7000 15000
Rs.100 lacs
Exceeding Rs.100 lacs 7000 1800049
 INTERNET CONNECTION
 In addition, the Development Officer
procuring a minimum premium income of Rs.
60 lacs in ‘C’ Class, Rs.75 lacs in ‘B’ Class &
Rs.100 lacs in “A” Class cities shall be
allowed reimbursement of expenses on
Internet connection (landline or data card, or
both) at the rate of Rs.3000/- per annum
(plus service tax).

50
 Internet Connection
For Development Officer not qualifying
for Internet connection, the
reimbursement of expenses on Internet
connection could be made within the
maximum limit of reimbursement
permissible for Telephone and Mobile
connection.

51
 REIMBURSEMENT–Annexure A
• Reimbursement - against submission
of requisite declaration as per
Annexure A.
• Reimbursement of telecom exps.
within the stipulated limits shall be
made on half-yearly basis
• on 1st May (for the period from 1st
October to 31st March) and
• On 1st November (for the period from
1st April to 30th September) 52
INTEREST FREE COMPUTER
LOAN
 LOAN FOR COMPUTER / LAPTOP :-
 Interest free loan for purchase of a desk
top / laptop (including accessories)
repayable in 50 EMIs for the specified
amount, shall be available to D.Os
 Subject to maintaining the stipulated cost
ratios in the preceding 3 years:-

53
COMPUTER LOAN
AMOUNT LIMIT
• For Development Officers
procuring SPI of Rs. 50 lacs or
above loan will be Rs. 25,000/-
• For Development Officers
procuring SPI of Rs. 100 lacs or
above loan amount will be Rs.
50,000/-

54
 NEWS PAPER
 REIMBURSEMENT OF NEWSPAPER
EXPENSES – w.e.f 01/04/2008
 Reimbursement of 70% cost of one financial
daily, not exceeding Rs. 100/- per month.
 Reimbursement shall be done on annual
basis on the first working day of April
every year against submission of requisite
declaration as per Annexure B.
 No Cash Memo is needed

55
ENTERTAINMENT ALLOWANCE
Entertainment Allowance revised w.e.f. 1st
April, 2008 depending upon the premium.
SPI for the preceding year, Allowance per
month shall be:-
Above Rs.50 lacs but not exceeding Rs.75
lacs Rs.350/-
Above 75 lacs but not exceeding 1 crore
Rs.400/-
Exceeding Rs.100 lacs Rs.450/-
56
 Halting Allowance &
Lodging
• A B C
• Halting Allowance: 400 300 250
• Halting Less than 6 hrs – 30% of
halting allowance
• Exceeding 6 hrs,but less than 12 hrs
-50% rate
• Exceeding 12 hrs - Full daily rate
• Lodging Charges:- 900 675 450
57
 Travelling Exps.
Mileage allowance:-

Motor cycle- 5%of 1 liter petrol cost

Car (Petrol)- 12%of 1 liter petrol cost
Car (Diesel)- 15%of 1 liter diesel cost

58
 Transfer
On Transfer- Eligible class of travel for
family and halting allowance is applicable.
Plus eligible transfer grant, Transportation
of luggage and packing charges are
applicable.
Joining time-If no change of residence-1
day is allowed and if change of station from
one station to another station is involved 6
days are allowed for preparation plus
journey time

59
 Leave Encashment/Brief case
 Leave Encashment:-Once in 2 years.
 15 days salary (Basic+DA+HRA)

 Brief case – Rs.1500/- for Purchasing

Brief Case- Once in 3 years

60
 LEAVE FACILITY
 Types of leave Eligible:
 Casual Leave- CL upto 12 days granted during a
calander year.
 Not more than SIX days of CL can be availed at a
time.
 Earned Leave / Privilege (EL / PL)-At the rate of
one day for every 11 days of duty can be availed
with minimum of seven days at a time and maximum
of 120 days.
 Advance notice of 15 days necessary. Leave may be
granted for shorter duration on maximum two
occasions in a year, if CL not available.
 E/L Can be accumulated upto 240 days.
61
 Sick Leave
• Sick Leave (SL)-At the rate of 30
days on half pay basis for each
calendar year of service (can be
availed on full pay by debiting double
of the leave)
• Maximum accumulation can be upto
240 days.
• Medical Certificate has to be
submitted.

62
 Special Sick Leave (SSL)

• Maximum 6 months on half pay basis is

allowed when a Development Officer has
no SL to his credit.
• It is provided only for 8 major diseases
such as Cancer, Leprosy, Tuberculosis
Paralysis, Brain Tumour, Cardiac
Ailment, Kidney disease and Mental
diseases.
63
 Maternity Leave (ML)

• Female Development Officer having less

than 3 living children is allowed ML for 90
days.
• Six weeks leave is allowed in case of
miscarriage / abortion / medical termination
of pregnancy
• Encashment of Earned Leave

64
Encashment of Earned Leave

 Earned Leave may be encashed upto a

maximum of 15 days in a block of 2
years starting from even number i.e.
08-09, 10-11, etc.
 Must be availed minimum 15 days
earned leave.

65
LEAVE TRAVEL SUBSIDY (LTS)
• Eligibility for Employee and his family
members
• Should goes on any sanctioned leave
including the CL .
• ‘Family’ include spouse, dependent
children and dependent parents
residing with the employee.
• ‘Children’ shall mean legitimate,
legally adopted or step children.
• ‘Dependent’ means a person not having
income exceeding Rs. 1500/-pm. 66
 LTS Block Years
 The subsidy shall be available once in the block
of two years
 Limited to the cost of travel upto 2000 kms each
way.
 The block applicable to Development Officers is
Even years( 2008-09, 2010-11& so on)
 Surface distance between two points by
shortest route by rail will be the basis.
 Scheme is formulated on the basis of rail
distance.

67
LTS 2 BLOCKS

• When two points are not

connected by rail, reference
may be made to the road map
for mileage by direct route.
• Carry forward of subsidy
• This is restricted to the next
block only. No further carry
forward allowed.
68
 LTS Advance
 LTS Advance
 90% of the total subsidy may be allowed 60
days prior to commencement date of outward
journey.
 The advance so drawn shall be refunded
forthwith if the outward journey is not
commenced within two months from the drawn
of advance.
 Employees violating the rules are to be charge-
sheeted & punished forthwith & show cause
notice be issued to the officer In charge who has
failed to monitor and recover the amounts from
the employees in time.
69
 Submission of LTS Bill
Submission of LTS Bill
 LTS Bill is to be submitted in duplicate within
fifteen days from the date of completion of
return journey
 The competent authority may condone the
delay in submission of the claim if he is
satisfied with the reasons.
 It is necessary to submit either the original or a
photocopy of the train ticket along with TE/LTS
claim forms.

70
 SERVICE CHARGES
• Service charges - Service charges
for booking tickets may be allowed
• Taxi driver charges, night halt charges,
passenger tax and toll at the check post
can be reimbursed if included in the
Tourist Agency Bill.
• Travel by steamer/ferry etc
• When part of the journey is undertaken
by steamer/ferry/motor launch the
shortest route of surface distance shall
be taken. 71
PARTLY BY AIR/OTHER MODE

 PARTLY BY AIR/OTHER MODE

 If we travelled by air/other mode, the
reimbursement will be aggregate of
actual fare by air incurred or
aggregate of ‘entitled railway fare’
whichever is less

72
 TRAVEL WITH FAMILY
MEMBERS
• The employee and the members of his
family may travel together or separately
in not more than two groups and claim
reimbursement accordingly.
• Claims for not more than two such groups
shall be allowed in respect of any block
or for combination of two consecutive
blocks
73
TERMINAL BENEFITS-PENSION

• Pension Scheme – 1995 came into

force on1.11.93.
• Employees who have joined the
service of the Company after
28.06.95, compulsorily to be
governed by Pension Scheme - 1995.

74
QUALIFYING SERVICE

• To become eligible for pension

an employee must have
rendered at least 10 years of
service in the Corporation or a
Company on the date of
retirement

75
 SUPERANNUATION PENSION
 Superannuation Pension shall be granted to
an employee who has retired from the
service on his attaining the age of
superannuation as specified in the service
condition.
 PENSION ON VOLUNTARY RETIREMENT
 An employee can seek voluntary retirement
by giving 90 days notice to the appointing
authority after completing 20 years of
Qualifying Service.
76
 PENSION ON RETIREMENT
 BASIC PENSION - After completing the
qualifying service of not less than 33 years
the amount of Basic Pension shall be 50%
of the Average Monthly Emoluments (Basic
+ Pre-revised FPA) for the last 10 months
in service prior to retirement.

77
Pension less than Qualifying
Service
In the case of an employee retiring before
completing a qualifying service of 33
years, but after completing qualifying
service of 10 years, the amount of
pension shall be proportionate to the
amount of pension admissible ..

78
 BASIC/MINIMUM PENSION

 Basic Pension =
 50% of Average monthly Emoluments for
the last
10 Months preceeding retirement
X No.of yrs.of Qualifying Service
33
 Subject to minimum Rs. 1480/-.

79
 TERMINAL BENEFITS -FAMILY
PENSION
 The family pension shall be paid to the family
of the deceased employee in the event of his
death-
 Whilst in the service at any time.
 After retirement and was in receipt of pension
from the Company.
 BASIC FAMILY PENSION
 The Family Pension is payable from the date
following the date of death at the rate of
30%,20% and 15% of the basic as per 80

scheme.
BASIC FAMILY PENSION ENHANCED
RATE IN CERTAIN CASES
• When an employee dies whilst in service
remain not less than 7 years of service or
• when an employee dies after retirement,
the Basic Family Pension payable to the
family shall be equal to 50% of last drawn
basic pay ( Basic + pre revised FPA) or
twice the Basic Family Pension rate
admissible whichever is less.
• The enhanced rate of Family Pension is
payable for a period of 7 years or until the
deceased employee would have attained
the age of 65 years had he survived,
whichever is less.
81
 COMPASSIONATE
ALLOWANCE
 An employee who is dismissed or
removed or compulsorily retired or
terminated from service shall forfeit his
pension.
 However, Competent Authority may
sanction Compassionate Allowance as a
special consideration, which shall not
exceed 2/3rd of the admissible pension
 But it shall not be less than the minimum
pension payable under the Scheme.
82
CALCULATION OF COMMUTATION
VALUE OF PENSION
• An employee who is eligible for any
pension is entitled to commute for a
lump sum payment a fraction of his
pension not exceeding 1/3rd portion
of pension
• It shall be restored after 15 years
from the date of commutation.
• The lump sum payable shall be
calculated in accordance with the
specified commuted value of
pension expressed in number of
years in relation with the age of the
pensioner as on his next birthday.
83
 DEARNESS RELIEF

 Dearness relief is payable to the

Pensioner / Family Pensioner on the
Basic Pension / Basic Family Pension
shall be at the rate of 0.18% of Basic
Pension.
 Dearness relief will be allowed on full
Basic Pension even after commutation
84
TERMINAL BENEFITS -GRATUITY
 Gratuity shall be payable on termination of
his employment after the continuous
service for not less than five years -
 On superannuation or On voluntary
retirement/ resignation or On death or
disablement due to accident or diseases or
 On service being dispensed with owing to
reduction of staff or reorganization of
establishment
85
TERMINAL BENEFITS
-GRATUITY
• Provided that the completion of
continuous service of five years
shall not be necessary where
the termination of the
employment of any officer is
due to death or disablement.
• ‘Wages’ means Basic +D.A. +
pre revised FPA + DA thereon
86
GRATUITY AMOUNT
CALCULATION
• one month’s basic pay ( Basic +
pre-revised FPA) for each
completed years of service. For
service upto 30 years maximum
15 month’s basic pay is payable.
• Additional gratuity @ ½ month’s
Basic Pay for each completed
year of service beyond 30 years.

87
 GRATUITY CALCULATION
• a)SERVICE UPTO 30 YEARS
• Basic pay ( last drawn basic + pre revised
FPA) x No. of yrs x R*
• ( max. 15 years)
• (b) SERVICE OVER 30 YEARS
• Basic pay ( last drawn) (basic + pre revised
FPA) x Years in excess of 30 years divided by
2
• Total Payable : a + b 88
 Rate of Gratuity
• For service more than 15 years, limit the
number of years to 15
• Rate of gratuity for each year of
service (R)
• Upto11 years-50% of Basic Pay last drawn
• 12 years of service -60 %-
• 13 years -70%-
• 14 years -80%-
• 15 years or more 100%-
• Maximum Amount limited to Rs.3.5 lacs 89
 ENCASHMENT OF EARNED LEAVE ON
RETIREMENT

 Terminal Benefits:
 MAX.NO.OF DAYS LEAVE CAN BE
ENCASHED -240 DAYS
 On Retirement-Basic + D.A. + pre revised
FPA + D.A. thereon retirement)
 On DEATH-240 DAYS Basic+DA +HRA +
CCA+ FPA (pre-revised) + DA Thereon

90
 TERMINAL BENEFITS-
MEDICLAIM
 Group Mediclaim cover for Retiring/ Voluntarily
retiring employees and their spouse.
 They were members of Group Mediclaim Policy
before retirement.
 Cover is optional. However, such option by the
employees has to be exercised before retirement.
 The entire premium, less group discount shall be
borne by the retired employee
 Cover shall be under the category opted for, the
concerned retired employee before the
commencement of every policy year. 91
 OTHER TERMINAL BENEFITS
 PROVIDENT FUND/
 PF Contribution, if opted
 FECILITATION OF EMPLOYEES ON
RETIREMENT
 Life Insurance/Society Benefits

92
AIGIFWA STANDS FOR THE
BENEFIT OF ITS MEMBERS

THANKS 93