NPS Retirement Gratuity – Govt Allows Gratuity For NPS Covered Employees Also
It is very good news for all central government employees covered by NPS (New Pension Scheme / National Pension System). The Govt has finally decided to grant retirement gratuity and Death Gratuity to NPS covered employees at par with central government employees who are entitled to Pension under Central Civil Service (Pension) Rule,1972
Subject : Extension of benefits of ‘Retirement Gratuity and Death Gratuity’ to the Central Government employees covered by new Defined Contribution Pension System (National Pension System) – regarding.The undersigned is directed to say that the pension of the Government servants appointed on or after 1.1.2004 is regulated by the new Defined Contribution Pension System (known as National Pension System), notified by the Ministry of Finance (Department of Economic Affairs) vide their O.M No. 5/7/2003-ECB & PR dated 22.12.2003. Orders were issued for payment of gratuity on provisional basis in respect of employees covered under National Pension System on their retirement from Government service on invalidation or death in service, vide this Department’s OM No. 38/41/2006-P&PW(A) dated 5.5.2002. The issue of grant of gratuity in respect of government employees covered by the National Pension System has been under consideration of the Government. It has been decided that the government employees covered by National Pension System shall be eligible for benefit of ‘Retirement gratuity and Death gratuity’ on the same terms and conditions, as are applicable to employees covered by Central Civil Service (Pension) Rule,1972.
