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Retirement Benefits

Pension

Pension is calculated :

  • on CDA scale of pay on the date of absorption in MTNL to those who opted for pro-rata pension.
  • on IDA scale of pay on retirement to those who opted for combined service pension.
  • Pension is based on Average Emoluments (AE) or Basic Pay (BP) and Qualifying service (QS).
  • Average of 10 months of basic pay prior to retirement is Average Emoluments.

Retirement Prior to 01/01/2006 :

Pension = AE/2 x QS (maximum of 66 six monthly periods)/66

Retirement on or after 01/01/2006 :

Pension = AE/2 or BP/2 (whichever is more) x QS (maximum of 40 six monthly periods) / 40  

Minimum Amount of Pension / Family pension :

  •  up to 01/01/2006:- Rs.1913 p.m.
  •  from 01/01/2006:- Rs.3500 p.m 

Maximum amount of basic pension : Rs.45000 p.m. from 01/01/2006

Retirement Gratuity

Retirement Gratuity = AE or BP (whichever is more) + DA x QS/4 (maximum of 66 six monthly periods)

Maximum Gratuity

  • Rs.3.5 lakhs for retirement prior to 01/01/2006
  • Rs. 10 lakhs for retirement from 01/01/2006

For pro rata pensioners : the gratuity is based on Pay in CDA scale on the date of absorption. For the period of service in MTNL, gratuity is payable as per Gratuity Act.

Commutation of Pension

Those who opted for pro rata pension are not eligible.

Commutation on superannuation = 40% of Pension x CF x 12

Commutation Factor (CF)

  • prior to 01/09/2008 = 9.81
  • From 01/09/2008    = 8.194 

Leave Encashment

Pay + DA on the day of retirement/30 x No.of days of EL at credit.

Savings Fund of LIC Group Insurance

Family Pension

  • Normal rate of FP = 30% of Pay on the day of retirement or death.
  • Higher rate of FP = 50% of Pay on the day of retirement or death. 

Higher rate of FP is paid from the day after date of death for a period of 7 years or up to 67 years of age of employee had he survived whichever is less.

For pro rata pensioners the FP is based on the pay in CDA scale on the date of absorption.

Death Gratuity

Payable If death occurs while in service.

Death Gratuity = AE or BP (whichever is more) + DA x QS/4 (maximum of 66 six monthly periods)

For death after 20 years of service =Double the gratuity subject to maximum.

Maximum Gratuity

  • Rs.3.5 lakhs for death to 01/01/2006
  • Rs. 10 lakhs for death from 01/01/2006

For those who opted for pro rata pension the Death Gratuity is paid as per Gratuity Act

 

Pensioner's Identity Card  

Issued by the IR section of GM (Admn) on application by the pensioner.

Medical Benefits for Outdoor Treatment

Reimbursement of actual medical bills for self and spouse is admissible. The benefits are restricted one month’s basic pay plus DA. One month’s basic pay plus DA is restricted to a) 50% of the Pay+IDA on retirement OR b) 50 % of Pay + IDA as on 01/04/2008 in the pre revised scale OR c) 50% of mid pay in the pre revised scale + IDA whichever is less.

Medical Benefits for Indoor Treatment

The pensioners are covered under Medi Claim Policy of United India Assurance. The family floater cover for self and spouse is Rs.1.5 lakh and a corporate floater to be approved by ED is another Rs.1.5 lakhs and further floater to be approved by Corporate office is another 1.5 lakhs.

The facility is cashless for the first 1.5 lakhs at the panelled hospitals.

Free Telephone Facility

One rent free land line under Retired Officers category is admissible. The free calls per BI-MONTH is 120 calls in addition to the free calls as under:-

Gr-A:- IDA Scales, maximum of not less than Rs.14600 as on 01/01/1997:-        

                                                                                                    1000 calls (BI-MONTH)

Gr-B:- IDA Scales, maximum of not less than Rs.11825/ but less than Rs.14600 as on 01/01/1997:-

                                                                                                     500 cals  (BI-MONTH)

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