NPS Retirement Gratuity – Govt allows Gratuity for NPS covered employees also

NPS Retirement Gratuity – Extension of benefits of ‘Retirement Gratuity and Death Gratuity’ to the Central Government employees covered by new Defined Contribution Pension System (National Pension System)

It is very good news for all central government employees covered by NPS (New Pension Scheme / National Pension System).  The Govt has finally decided to grant retirement gratuity and Death Gratuity to NPS covered employees at par with central government employees who are entitled to Pension under  Central Civil Service (Pension) Rule,1972.
This order would benefit all central government employees who joined in government service on after 1st January 2004.

No.7/5/2012-P&PW(F)/B

Ministry of Personnel, Public Grievances and Pensions

Department of Pension and Pensioners Welfare

Lok Nayak Bhavan, Khan Market,

New Delhi – 110 003, Dated the 26 August, 2016.

OFFICE MEMORANDUM.

Subject : Extension of benefits of ‘Retirement Gratuity and Death Gratuity’ to the Central Government employees covered by new Defined Contribution Pension System (National Pension System) – regarding.
The undersigned is directed to say that the pension of the Government servants appointed on or after 1.1.2004 is regulated by the new Defined Contribution Pension System (known as National Pension System), notified by the Ministry of Finance (Department of Economic Affairs) vide their O.M No. 5/7/2003-ECB & PR dated 22.12.2003. Orders were issued for payment of gratuity on provisional basis in respect of employees covered under National Pension System on their retirement from Government service on invalidation or death in service, vide this Department’s OM No. 38/41/2006-P&PW(A) dated 5.5.2009.
2. The issue of grant of gratuity in respect of government employees covered by the National Pension System has been under consideration of the Government. It has been decided that the government employees covered by National Pension System shall be eligible for benefit of ‘Retirement gratuity and Death gratuity’ on the same terms and conditions, as are applicable to employees covered by Central Civil Service (Pension) Rule,1972.
3. These orders issue with the concurrence of Ministry of Finance, Department of Expenditure, vide their ID. Note No. 1(4)/EV/2006-II dated 29.07.2016.
4. In their application to the persons belonging to the Indian Audit and Accounts Department, these orders issue after consultation with Comptroller and Auditor General of India.
5. These orders will be applicable to those Central Civil Government employees who joined Government service on or after 1.1.2004 and are covered by National Pension System and will take effect from the same date i.e. 1.1.2004.

(Harjit Singh)

Director (Pension Policy)