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Retirement Benefits

Reviewed by Vineeth | Updated on Sep 30, 2020

Catalogue

Introduction

Retirement and pension benefits are given to a retired government official to make sure that they have a constant income and a secured life. The pension provisions are in place to ensure that the retired government officials are well off and can be financially independent and can lead their retired lives with no financial challenges.

Parts of Retirement Benefits

The retirement benefits mainly consist of the employees’ leave encashment (employees are allowed to accumulate leaves and exchange them for cash on their retirement), retirement gratuity, and the amount that they were contributing to their provident fund account throughout their service.

All these, when put together, will result in a considerable corpus. This amount is going to be the backbone of the employee’s retired life. Using this amount wisely will alleviate the need to depend on others for handling financial expenses. This will give them a sense of financial confidence.

Other Benefits

Apart from the retirement benefits mentioned above, the retired government officials are also qualified to pension benefits. These benefits will allow them to lead a peaceful retired life with no hassles whatsoever in terms of finance.

The different kinds of pension available for retired government official at the end of their employment tenure are pension on retiring, superannuation, voluntary retirement pension, compassionate allowances, family pension, compensation pension, and extraordinary pension.

Superannuation pension plans are in place for those retired government officers who go on to serve until they turn 60 years old. Voluntary pension is paid out to those government officials who wish to retire just three months after they have completed serving for a period of 20 years.

Extraordinary pension schemes are a kind of pension plan which is paid out to those retired government employees that are differently-abled or physically challenged or to the families of those government employees who lost their lives in the service of their employment with the government.

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