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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