Gratuity Benefits for CG Employees Covered by NPS
The clarification statement aims to shed light on the benefit of retirement gratuity when it comes to mobility from one organization to another. Retirement gratuity is a significant financial incentive that provides employees with a sense of security and stability during their post-retirement life. When an individual decides to switch from one organization to another, they can carry over their retirement gratuity to the new organization, ensuring a smooth transition without any loss of benefits. This clarification serves to reassure employees that they can confidently move between organizations while still receiving the benefits they deserve.
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)
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
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.
Deputy Secretary to the Government of India
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What is the benefit of gratuity for Central Government (CG) employees covered under the National Pension System (NPS)?
The benefit of gratuity is provided to CG employees covered under NPS as a form of retirement benefit.
How is the counting of service done for the benefit of gratuity?
The counting of service for gratuity is based on the total length of service in the State Government, Central Government, or autonomous bodies that the employee has joined.
Is the counting of service considered when an employee joins a new service?
Yes, the counting of service is considered when an employee joins a new service in the State Government, Central Government, or autonomous body.
Who is eligible for the benefit of gratuity under NPS?
Central Government employees who are covered under the National Pension System are eligible for the benefit of gratuity.
What is the purpose of providing gratuity to CG employees under NPS?
The purpose of providing gratuity is to ensure financial security and stability to CG employees upon their retirement.