7th Pay Commission Recommendations on Voluntary Retirement Scheme

7th CPC Voluntary Retirement Scheme

The DoPT Order No.25013/7/77-Estt.(A) Dt. 26.8.1977 said as follows…

“As per Rule 59(1) a civil servant may allowed to retire voluntarily if he has completed 15 years of service and given proportionate pension and gratuity”.

The above recommendations of the Administrative Reforms Commission was considered by Government and it has been decided that Government Servants may be allowed to retire voluntarily after 20 Years of qualifying service on proportionate pension and gratuity with a weightage of upto 5 years towards qualifying service where applicable, subject to certain conditions. [Click to know more…]

Is the date of voluntary retirement treated as duty?
Yes, the date of voluntary retirement is treated as duty (Rule 5).

When can a Government servant apply for voluntary retirement?
Under Rule 48, a Government servant can apply for voluntary retirement after completion of 30 years of qualifying service. Under Rule 48-A, he can apply for voluntary retirement after completion of qualifying service of 20 years. Under FR 56 (k) he can apply for voluntary retirement an attaining the age of 50 years (for Gr. A & B) and 55 years (in other cases).

Recommendation on Voluntary retirement in 6th Pay Commission…

Presently, all employees on completion of 30 years qualifying service can take voluntary retirement by giving 3 months’ notice. Group A & B Officers who had entered service before the age of 35 years have the right to retire after attaining the age of 50 years by giving a similar notice. Group A & B Officers who had entered the service after 35 years of age and all Group C & D employees can also take voluntary retirement at their option. Retirement becomes effective on the expiry of notice period. No formal approval is necessary unless the official is under suspension. Employee can also retire voluntarily by giving 3 months’ notice on completion of 20 years qualifying service. However, in this case, acceptance by the Appointing Authority is necessary.

Pension on voluntary retirement is payable only if 20 years of qualifying service or more has been put in. In case of superannuation, pension is payable on completion of 10 years qualifying service or more. However full pension, whether on superannuation or voluntary retirement, is presently payable only on completion of qualifying service of 33 years. Weightage of upto 5 years for purposes of reckoning qualifying service for pension/gratuity is allowed in case of voluntary retirement provided the total qualifying service including the weightage does not exceed 33 years and the period does not go beyond the date of normal superannuation.

Pension on voluntary retirement is payable only if 20 years of qualifying service or more has been put in. In case of superannuation, pension is payable on completion of 10 years qualifying service or more. However full pension, whether on superannuation or voluntary retirement, is presently payable only on completion of qualifying service of 33 years. Weightage of upto 5 years for purposes of reckoning qualifying service for pension/gratuity is allowed in case of voluntary retirement provided the total qualifying service including the weightage does not exceed 33 years and the period does not go beyond the date of normal superannuation.
Here some important orders issued by the DoPT…

Collection of some key features of Voluntary Retirement from 7th Central Pay Commission Report…

Report of Seventh CPC – Page No.406

Premature/Voluntary Retirees

Pension equal to 50% of last RE is being paid.

Disability Pension comprising (i) Service Element (SE) equal
to 50% of last RE and Disability Element (DE) equal to 30%
of last RE for 100% disability is being paid. For lesser
percentage of disability, the amount of DE is reduced prorata. There is no DE for disability <20%.

Report of Seventh CPC – Page No.411

Enhancing the Cover of Disability

10.2.56 The Services have sought that disability element should be made admissible to personnel on retirement as well as invalidment in the event of his/her acquiring any amount of disability (presently Nil in case of Disability less than 20 percent) that is attributable to/aggravated by military service or otherwise.

10.2.57 The issue of how disability element should be determined for personnel retiring with disability, as distinct from those being invalided out, has been the subject matter of judicial pronouncements in the recent past. In Ram Avatar vs Union of India, the Supreme Court has held that personnel retiring on attaining the age of superannuation or on completion of tenure
of engagement, if found to be suffering from some disability which is attributable to/ aggravated by military service, would be entitled to the benefit of ‘rounding’ of disability pension for disability greater than 20 percent. The Commission has also noted that the government has decided to implement the benefit of broadbanding of disability (‘rounding’ of disability pension) w.e.f. 01.01.2015 for all eligible cases except premature cases/voluntary retirement cases. The Commission, keeping in view the above, recommends broad banding of disability for all personnel retiring with disability, including premature cases/
voluntary retirement cases for disability greater than 20 percent. This will ensure uniformity in treatment of disability cases as far as determination of disability element is concerned and bring the regime at par with those invalided out for disability greater than 20 percent.

Report of Seventh CPC – Page No.118

6.2.56 Compensation Package: The Commission notes the demand made is for doubling of the existing compensation package of one month’s reckonable emoluments for each completed year of service by a SSC Officer. In the case of officers in the public sector opting for voluntary retirement/voluntary separation, they are paid one and a half months emoluments for each completed year of service.