21. Retirement

239. The retired service personnel shall cease drawing the previous pension from the commencing date on which he is reemployed. If the service personnel does not cease drawing pension within three months of  reemployment, the previous term of service and the one after reemployment shall not be aggregated for the purpose of pension.

240. Although the return to service of a retiring service personnel on invalid pension is not prohibited when he regains good health, that service personnel shall not be employed in the previous department if he was granted invalid pension on the medical certificate reporting that the incapacity of the service personnel was due to the conditions under which he was performing duties. However, he may be reemployed in other departments. His term of service shall be calculated in accordance with the rules 237 and 238.

241. In the case of a military personnel who rendered the military service after attaining the age of 18 and reemployed in the civil service, such military service may be counted as qualifying service by a competent authority. However:
(a) the military service shall be satisfactory and service entitled to enjoy for pension in accord with the provisions of the military pension rules;
(b) if the person who did not enjoy a pension and was granted only the gratuity, refunds such gratuity to the State, the previous military service shall be aggregated;
(c) if there is a certificate issued by the Audit Office of Ministry of Defence that the person has ceased to draw pension and verifying the term of service and the pension and gratuity earned by him, the military service shall be aggregated.

242. Pension may be commuted to lump-sum payment at the rates specified by the Ministry of Finance.

243. In the case of commutation of a portion of pension as lump-sum payment, the present value shall be calculated on prescribed period contained in pension commutation Table (6) based on the age of the service personnel attained on the date of retirement from the reemployed post.

244. The pension benefit shall be calculated on completed years and the fractions of years shall be ignored. Provided that if the term of service is satisfactory in the cases of superannuation pension, invalid pension and compensation pension, the fractions of year:
(a) the head of service personnel organization may add up to six months;
(b) the head of the Ministry and the organization may add up to 12 months.

245. The fractions of year of term of service of pension benefit shall not be allowed to calculate in the following conditions:
(a) the period needed to complete five years for gratuity;
(b) the period needed to complete 10 years for pension benefit;
(c) the period needed to complete 20 years for reduction pension;
(d) the period needed to complete 25 years for reduction pension;
(e) the period needed to complete 30 yearsfor retiring pension.

246. In respect of calculating the amount of gratuity and pension:
(a) only the gratuity shall be granted in the following manner if ten years of qualifying service for pension is not completed:
(i) in the case of not completing five years of qualifying service for gratuity –

Term of service x last pay x 100% = gratuity

(ii) in the case of completing five years of qualifying service for gratuity but not completing ten years –

term of service x last pay x 150% = gratuity

(b) in the cases of superannuation pension, invalid pension and compensation pension after completing ten years and above of qualifying service for pension and in the cases of retiring and reduction pensions, the pension and gratuity shall be calculated as follows:
(i) term of service x last pay x 1.5% = pension
(ii) term of service x last pay x 50% = gratuity
(c) the Ministry of Finance may issue the order and amend the method of calculation for pension and gratuity with the approval of the Union Government.

247. The family of a service personnel includes the following persons:
(a) the legally married wife and legitimate children if the service personnel is male;
(b) the legally married husband and legitimate children if the service personnel is female;
(c) legitimate children include legally adopted children and step children;
(d) grandchildren;
(e) natural parents, brothers and sisters.

248. In respect of the entitlement of family pension:
(a) a family pension shall be granted to a surviving family in the following priority order:
(i) the first legally married widow or widower of the deceased;
(ii) if there is no legal widow or widower legitimate unmarried child under 18 or legitimate unmarried child above 18 who is pursuing full time education at a university, college or school;
(iii) if there is no eligible person prescribed in clause (ii), unmarried daughter or widowed daughter;
(iv) if there is no eligible person prescribed in clause (iii), fatherless unmarried grandchild under 18 or over 18 who is pursuing full time education at a university, college or school;
(b) if there is no eligible person prescribed in sub-rule (a), the following persons may be allowed family pension.Provided that they may submit the sufficient evidence that they had been residing with and depended on the deceased:
(i) natural parents;
(ii) if there is no parent brother or sister of the service personnel under 18 or above 18 who is pursuing full time education at a university, college or school;
(iii) if there is no eligible person prescribed in clause (ii), unmarried elder sister or younger sister or widowed elder sister or younger sister of the service personnel;
(iv) if there is no eligible person prescribed in clause (iii), other elder or younger brothers or sisters of the service personnel.