Disciplinary Proceedings to Central Govt Employees Covered under NPS – Clarification issued by DoPPW

Disciplinary Proceedings for Central Govt NPS Employees – Clarification

The Department of Pension and Pensioners’ Welfare (DoPPW) released an order outlining the impact of disciplinary proceedings on the benefits that Central Government employees covered under the National Pension System (NPS) are entitled to. The order states that if an employee is found guilty of misconduct and their pension corpus is withheld as a penalty, the benefits that were previously accumulated through the NPS will also be affected. This includes gratuity, which is a lump sum payment made to employees upon retirement. Therefore, it is important for NPS-covered employees to be aware of the potential consequences of disciplinary proceedings on their retirement benefits.

No. – 57/03/2022-P&PW(B)/8361
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Pension and Pensioners’ Welfare

3th Floor, Lok Nayak Bhavan, Khan Market,
New Delhi, Dated the 27th October, 2022

OFFICE MEMORANDUM

Subject: Provisions relating to effect of disciplinary proceedings on the benefits from accumulated pension corpus under National Pension System and gratuity in respect to Central Government employees covered under NPS.

The undersigned is directed to say that Department of Pension and Pensioners’ Welfare has notified the Central Civil Services (Implementation of National Pension System) Rules, 2021 and Central Civil Services (Payment of Gratuity under National Pension System ) Rules, 2021 which are applicable from the date of its publication in the Official Gazette, to govern service related matters and for grant of gratuity respectively to Central Government civil employees covered under National Pension System.

2. Rule 19 of Central Civil Services (Implementation of NPS) Rules, 2021 provides that the Departmental or judicial proceedings, which were instituted while the Subscriber was in service but are not concluded before retirement or the judicial proceedings instituted after retirement of the Subscriber, shall not affect the benefits payable to the Subscriber out of his accumulated pension corpus and the lump sum and the annuity out of his accumulated pension corpus shall be paid to him in accordance with the regulations notified by the Authority as admissible in the case of exit of a Subscriber from the National Pension System on superannuation.

3. Further, as per Rule 5 of the Central Civil Services (Payment of Gratuity under National Pension System ) Rules, 2021 that if in any departmental or judicial proceedings instituted while the Government servant was in service, the retired Government servant is found guilty of grave misconduct or negligence, his gratuity may be withheld cither in full or in part, and recovery may be ordered from gratuity of the whole or part of any pecuniary loss caused to the Government.

4. After the retirement of the Government servant, the departmental proceedings shall be deemed to be proceedings under rule 5 of the Central Civil Services (Payment of Gratuity under National Pension System ) Rules, 2021 and shall be continued and concluded by the authority by which they were commenced in the same manner as if the Government servant had continued in service. No gratuity shall be payable to the Government servant until the conclusion of the departmental or judicial proceedings and issue of final orders thereon.

5. All Ministries/Departments are requested that the above provisions regarding disciplinary proceeding in respect to Central Government employees covered under National Pension System may be brought to the notice of the personnel dealing with the pensionary benefits in the Ministry/Department and attached/subordinate offices thereunder, for strict implementation.

(S. Chakrabarti)
Under Secretary to the Government of India

All Ministries/Departments/Organisations,
(As per standard list)

Can disciplinary actions affect an employee's pension under the NPS?

Yes, in certain cases where the misconduct is deemed severe, disciplinary actions can have an impact on an employee’s pension benefits under the NPS.

Is there an appeal process for disciplinary actions?

Yes, if an employee is dissatisfied with the outcome of disciplinary proceedings, they can usually appeal to higher authorities or administrative tribunals.

What actions can be taken as a result of disciplinary proceedings?

Depending on the severity of the misconduct, actions can range from issuing warnings and reprimands to imposing fines, demotion, and even termination of employment.

What is the process for disciplinary proceedings?

The process for disciplinary proceedings generally involves an inquiry, where evidence and witnesses are presented. The employee is given an opportunity to defend themselves before a final decision is made.

Who initiates disciplinary proceedings against central government employees covered under NPS?

Disciplinary proceedings can be initiated by the concerned government department or ministry employing the individual.

What kind of misconduct can lead to disciplinary proceedings?

Various forms of misconduct can lead to disciplinary proceedings, including but not limited to fraud, corruption, insubordination, negligence, and violation of rules and regulations.

Are central government employees covered under NPS subjected to disciplinary proceedings?

Yes, like any other government employee, those covered under NPS can be subjected to disciplinary proceedings if they engage in misconduct.

What are disciplinary proceedings?

Disciplinary proceedings refer to the actions taken by the government against an employee for misconduct or violation of rules and regulations.

Who does the NPS cover?

The NPS covers all central government employees, except for those in the armed forces.

What is NPS?

NPS stands for the National Pension System, a pension scheme introduced by the Government of India for its employees.