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Benefit of Gratuity to CG Employees Covered under National Pension System (NPS)

February 17, 2020 admin 2 Comments

Benefit of Retirement Gratuity on Mobility from One Organization to Another Organization – Clarification

Counting of service on joining new service in State Government / Central Government / autonomous body for the benefit of gratuity in respect of Central Govt Employees covered under National Pension System (NPS)

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, Dated the 12th February, 2020

Office Memorandum

Subject: Counting of service on joining new service in State Government / Central Government / autonomous body for the benefit of gratuity in respect of Central Govt Employees covered under National Pension System (NPS)

The undersigned is dated to say that vide this Department’s O.M. No.38/41/06-P&PW(A) dated 05.05.2009, in the event of death /disability during service, the benefits of Invalid / Disability pension, Family pension and retirement / death gratuity were provisionally extended to NPS employees at par with the employees appointed before 01.01.2004.

Subsequently, the benefit of retirement gratuity and death gratuity has been extended to all Central Government employees covered under National Pension System (NPS) vide this Department’s OM No. 7/5/2012-P&PW(F)/B dated 26.08.2016 on the same terms and conditions, as are applicable to employees recovered by CCS (Pension) Rules, 1972.

2. References have been received in the Department seeking clarification with regard to the benefit of retirement gratuity on mobility from one organization to another organization. This matter has been considered in consultation with Department of Expenditure. It has been decided that the grant of retirement gratuity and counting of service for gratuity on mobility of an NPS Government employee may be regulated in the following manner:

  • (i) On mobility from a Central Government service to another Central Government service, the service rendered in the previous Department in the Central Government shall be counted for the purpose of grant of gratuity. There shall be no sharing of gratuity liability between the two Departments of Central Government.
  • (ii) On mobility from a Central Government service to a State Government service having National Pension System with provision for Retirement / Death Gratuity for its employees similar to those in Central Government, the service rendered in the Central Government shall be counted for the purpose of grant of gratuity. Same provisions shall apply ‘on mobility of an NPS employees of the State Government to Central Government Department. There shall be no sharing of gratuity liability between the Central and State Governments.
  • (iii) On mobility from Central Government service to a Central or State Autonomous Body service having National Pension System with provision of retirement / death gratuity for its employees similar to that in the Central Government, the service rendered in the Central Government would be counted for grant of gratuity. The Government will discharge its gratuity liability by paying the amount of retirement gratuity for the service rendered in the Government to the Central or State Autonomous body. This procedure shall be followed mutatis mutandis in respect of NPS employees going over from one autonomous body to another autonomous body or from an autonomous body to Central Government Department / organisation both having National Pension System with provision of retirement / death gratuity for its employees similar to that in the Central Government.
  • (iv) On mobility from Central Government service to a Central or State Autonomous Body or to a State Government where the provision for grant of gratuity similar to that in Central Government does not exist or to a Public Sector Undertaking, the NPS Government employees shall be granted retirement gratuity as per rule for the service rendered in the Central Government subject to the condition that the total gratuity admissible in respect of the service rendered under the Government of India and that under the later organization, shall not exceed the amount that would have been admissible, had Government servant continued in Government service and retired on the same pay which he/she drew on retirement from the later organization.

The above provisions would be applicable to Government employees covered under NPS who resign to take up with proper permission, another appointment in the Central / State Government or Central / State Autonomous body or a PSU.

3. This issues with the concurrence of Ministry of Finance, Department of Expenditure vide their U.O. Note No. 1(4)/EV/2006-II Dated 31.10.2019

4. In their application to the employees of Indian Audit and Accounts Department, these orders issued after consultation with the Comptroller and Auditor General of India, as mandated under Article 148(5) of the Constitution.

5. All the Ministries / Departments are requested to bring the above instruction to the notice of all offices / field formation working under their administrative control.

sd/-
(Ruchir Mitttal)
Deputy Secretary to the Government of India

Click to view the Gratuity Order in PDF Format

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Filed Under: Gratuity, New Pension Scheme, NPS, NPS to OPS

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Comments

  1. Hemanta Datta says

    June 17, 2020 at 11:56 pm

    I have joined as a central gov employee in 2014.I am eager to resignation after completion of 10 years .Am I eligible for gratuity benefits??

    Reply
    • M.K.KUMAR says

      June 19, 2020 at 11:05 am

      Yes. After completion of 5 years as per the gratuity Act.

      Reply

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