Death-cum-Retirement
Gratuity under New Pension System to Central Government employees under
New Pension System (NPS). The information was stated by Minister of
State for Finance, Shri Namo Narain Meena, in written reply to a
question in the Lok Sabha .
Gratuity Pay under New Pension System
Death-cum-Retirement
Gratuity is paid to Central Government employees under New Pension
System (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. |
