Gratuity Pay under New Pension System
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 scheme Central 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:
Sl. No.
|
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.
|
Maximum amount of Death Gratuity admissible is Rs, 10 lakh with effect from 1.1.2006.
This was stated by Minister of State for Finance, Shri Namo Narain Meena, in written reply to a question in the Lok Sabha today.
***
PIB
(Release ID :95539)
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