Delivery of Fruit for Good Seed sown years back

Transcription

1 Delivery of Fruit for Good Seed sown years back An Officer is eligible to receive terminal benefits in the event of anyone of the following occasion. 1. RESIGNATION : At any time submitting three months notice. 2. PREMATURE RETIREMENT : Permitted only on medical grounds due to mental ;or physical disability or whose service are terminated on medical grounds before completion of 55 years of age subject to production and verification of certificate from a Government / Bank s Doctor certifying that the Officer will be unable to perform his normal official duties. 3. VOLUNTARY RETIREMENT UNDER OFFICERS SERVICE REGULATION : At the request of the Officer on or after completion of 55 years of age or 30 years of service, whichever is earlier. (under Pension Regulation, an Officer who have opted for pension is eligible to apply for Voluntary Retirement after completion of 20 years of service). 4. SUPERANNUATION RETIREMENT : In the normal course, on completion of 60 years of age. Hand Book on Duties and Rights

2 ENTITLEMENTS ON RETIREMENT / RESIGNATION : 1. PROVIDENT FUND (THOSE WHO JOINED BEFORE ): Member s Contribution : Member s contribution is payable in case of exit Viz. RESIGNATION, PREMATURE RETIREMENT, VOLUNTARY RETIREMENT UNDER OSR, SUPERANNUATION RETIREMENT, DEATH OR ANYOTHER MANNER - subject to adjusting the liability under PF Loan, if any availed by him. A) Bank s Contribution : a) Resignation : I) In the case of Officer resigning before completion of 5 years of service, No bank s contribution is payable. ii) In the case of Officers resigning after 5 years of service, Bank s contribution available as below : 10% of contribution of each completed years of service with proportionate interest as detailed below : 5 Years 6 Years 7 Years 8 Years 9 Years 10 Years 50% 60% 70% 80% 90% 100% b) Premature Retirement : 100% of bank s contribution is available. c) Voluntary Retirement Under OSR : 100% of bank s contribution. d) Superannuation Retirement : 100% of Bank s contribution available. Those who have opted for Pension, bank s contribution is not available. e) Deceased members : There is no restriction of minimum service requirement for payment of PF, Gratuity, Leave Encashment and Group Insurance benefits in the case of deceased Officers. Those who have opted for pension, Bank s contribution to PF is not available. 2. GRATUITY : An Officer is eligible for Gratuity in the event of exit from bank s service. Two alternate methods are available for calculation of eligible gratuity. 1. Bank s Scheme 2. Gratuity Act. 246 Hand Book on Duties and Rights

3 WHICHEVER IS BENEFICIAL TO THE OFFICER WILL BE CONSIDERED. GRATUITY ELIGIBLE AND PAYABLE UNDER DIFFERENT TYPE OF EXIT : RESIGNATION a. Before completion of 5 yrs. NIL b. On or after completion of 5 yrs and before completion of 10 yrs of service, gratuity will be paid as per Gratuity Act only. c. On or after completion of 10 years either as per Gratuity Act or Bank s scheme whichever is beneficial. PREMATURE RETIREMENT Gratuity is payable as per Bank s Scheme or Gratuity Act, whichever is beneficial to the Officer. VOL. RETIREENT UNDER ORS - Do - SUPERANNUATION DEATH PUNISHMENT Gratuity is payable as per Bank s scheme or Gratuity Act whichever is beneficial to the Officer.In the case of Ex-servicemen, there is no minimum service requirement to be entitled to Gratuity. Gratuity is payable as per Bank s scheme or Gratuity Act whichever is beneficial to the officer.there is no restriction as to the minimum service requirement for payment of Gratuity. Refer chart enclosed. COMPASSIONATE GRATUITY : This is payable in addition to Gratuity in the case of deceased members while in service only. Minimum Service : 5 years Amount eligible : Difference between Gratuity paid and Rs lacs subject to a maximum of Rs.10,000/-. GRATUITY PAYABLE UNDER BANK S SCHEME : Under this method, the minimum service of an Officer should be 10years. Amount payable is : a. Last drawn basic pay and special allowances multiplied by completed years of service subject to a maximum of 15 months. Hand Book on Duties and Rights

4 b. For those who have completed more than 30 years of service, an addition of half month s pay for every completed year of service after 30 years will be calculated. c. Any amount received under Scheme is taxable if it is in excess of what the Officer would have received as per Gratuity Act i.e Rs lacs. Example : (bank s scheme) If an Officer has completed 37 years, 9 months and 16 days at the time his retirement and drawing a Basic Pay of Rs.35,200/- + DA of Rs.18, PQP of Rs.1,030/- + FPA of Rs.900/- then Gratuity payable under Bank s scheme will be as below: Basic Pay P Q P 1680 FPA 1460 Total So, X 37/ / = 11,46,306/- is gratuity payable. Since the gratuity amount is more than Rs lacs, the excess amt. of Rs. 1,46,306/- more than 10 lac alone is taxable. GRATUITY PAYABLE UNDER GRATUITY ACT : Under this method, the gratuity payable is : Basic Pay + D A + Special Allowances ranking for PF should not exceed 15 days of a month (half a month), multiplied by number of years of service divided by 26 days of a month (excluding 4 Sundays) subject to maximum of Rs lacs (not taxable). EXAMPLE : If an Officer has completed 37 years, 1 month and 11 days at the time of retirement and drawing a Basic Pay of Rs.34,200/- + PQP of Rs.410/- + FPA of Rs.900/- + applicable DA, the eligible gratuity will be as under : Gratuity payable under Act : Basic Pay PQP 670 FPA 1460 D A Total So, X 15/26 X 37 Rs.17,55, But Maximum Gratuity payable Rs.10,00,000/- 248 Hand Book on Duties and Rights

5 Gratuity payable under Scheme : Basic Pay P Q P 670 F P A 1460 TOTAL So, X 37/2 Maximum Gratuity payable Rs.10,73,000 Rs.10,73,000* * The Officer will be paid as per scheme - Rs.10,73,000/- Calculation will be made under both Gratuity Act and Scheme. Sanction will be given for the amount which is beneficial to the member as per the calculation. Under the Act, the maximum amount of Gratuity payable is Rs lacs even if the calculation amount is more than Rs lacs. Under Scheme, if the amount calculated in more than Rs lacs, exact amount will be given but the amount above Rs lacs will be taxable LEAVE ENCASHMENT : Encashment of Previlege Leave available to an Officer s credit is permitted upto 240 days on Superannuation / under Regulation 19 of OSR Voluntary Retirement (either under OSR or Pension regulation) or to the legal heirs in the case of demise. In the case of Resignation, 50% of balance available in P L only can be encashed subject to a maximum of 120 days. TAXABLE PREVILEGE LEAVE ENCASHMENT AMOUNT : The Previlege Leave encashment received by an Officer, whether on superannuation or otherwise, is exempted subject to the condition the Previlege leave entitlement should not exceed 30 days for every year of actual service rendered. Under Sec.10 (10AA) of Income Tax, the least of the following is exempted: a. Actual Leave Encshment (subject to a maximum of 8 months of pay) received by the Officer. b. Leave salary for 10 months, based on average salary drawn by the Officer during ten months immediately preceding his retirement. For this purpose of arriving at average salary, HRA & CCA should be excluded. c. Leave salary for the actual number of days of PL at credit at the time of retirement, calculated at the 10 months average salary. d. Maximum ceiling of Rs.3,00,000/- (Tax Exemption limit) Hand Book on Duties and Rights

6 EXAMPLE : An Officer whose Basic Pay is Rs.32,400/-, DA Rs.13,639.44, HRA Rs /-, CCA Rs.540/-, PQP Rs.1,030/- and FPP Rs.965/-, retires on and has 240 days of Privilege Leave to his credit and he has served for 28 years. The taxable encashment is to be calculated as under : 1 Actual Leave encashment paid ( ) i.e. Rs X 240 / months average pay (BP (DA on BP & PQP = ) + FPP PQP 1030 i.e. Rs X 10 months Rs.4,22, Rs.4,72, months averge pay X actual number of Rs.3,77, days PL i.e. Rs X 8 months 4 Maximum Amount exempted from I T Rs.3,00, Actual Leave Encashment Paid Rs.4,22, LESS : Exempted (least of 1, 2, 3, 4) Rs.3,00, TAXABLE LEAVE ENCASHMENT ( 5 6) Rs.1,22, Note: In case of Officers staying in Quarters, Notional (standard) HRA has to be taken for the above calculation. OTHER FACILITIES AT THE TIME OF RETIREMENT : TA/HA to settle at Retention of Transfer of furniture at place of his/her choice quarters facility concessional rate RESIGNATION NOT AVAILABLE NOT AVAILABLE NOT AVAILABLE PREMATURE RETIREMENT NOT AVAILABLE NOT AVAILABLE NOT AVAILABLE VOLUNTARY RET. UNDER OSR AVAILABLE AVAILABLE AVAILABLE SUPERANNUATION AVAILABLE AVAILABLE AVAILABLE ON DEMISE NOT AVAILABLE NOT AVAILABLE NOT AVAILABLE 250 Hand Book on Duties and Rights