Ministry of Finance 03-May, 2013
Gratuity Pay under New Pension System
Death-cum-Retirement
Gratuity is paid to Central Government employees under
New PensionSystem (NPS) as it is paid under the old pension scheme.
The monthly annuity under the New Pension System (NPS) is only a replacement of
pension on retirement and family pension of death after retirement. The
benefits of Death cum Retirement Gratuity (DCRG) and pension/family pension
have been provisionally allowed, vide the Office Memorandum of Department
of Pension and Pensioners’ Welfare No. 38/41/06-P & PW(A) dated 5.5.2009 in
respect of Central Government servants covered under NPS in cases where a
Government Servant is retired on invalidation/disability and in the case of death of a
Government servant in service on the same rates as are applicable under the old pension schemeCentral Civil Service
(Pension) Rules, 1972. The retirement gratuity is payable to the retiring
Government servant. A minimum of 5 years’ qualifying service and eligibility to
receive service gratuity/pension is essential to get this one time lump sum
benefit. Retirement gratuity is calculated @ 1/4th of a month’s Basic Pay plus Dearness
Allowance drawn before retirement for each completed six monthly period of
qualifying service. The maximum retirement gratuity payable is 16½ times the
Basic Pay, subject to a maximum of Rs. 10 lakh. If the Government Servant dies
while in service, the death gratuity shall be paid to his family at rates
furnished in the
table below:
|
Length of Qualifying Service
|
Rate of Death Gratuity
|
|
|
1.
|
Less than one year
|
2 times of emoluments
|
|
2.
|
One year or more but less than 5
years
|
6 times of emoluments
|
|
3.
|
5 years or more but less than 20
years
|
12 times of emoluments
|
|
4.
|
20 years or more
|
Half of emoluments for every
completed six monthly period of qualifying service subject to a maximum of 33
times of emoluments.
|
This was stated by Minister of State for Finance, Shri Namo Narain Meena, in written reply to a question in the Lok Sabha today.
***
source //PIB //
