Gratuity to all NPS Employees

No. 7/5/2012-P&PW(F)/B
Ministry of Personnel, Public (Grievances and Pensions
Department of Pension and Pensioners Welfare

Lok Nayak Bhawan, Khan Market,
New Delhi-110 003, Dated the 26th August, 2016

OFFICE MEMORANDUM

Subject: Extension of benefit 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 O.M. No. 38/41/2006-P&PW(A) dated 5.5.2009.

2. 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) Rulke,1972.

3. These orders issue with the concurrence of Ministry of Finance, Department of Expenditure, vide their .D. Note No. 1(4)/EV/2006-II dated 29.07.2016.

4. In their application to the persons belonging to the India Audit and Accounts Department, these orders issue after consultation with Comptroller and Auditor General of India.

5. These orders will be applicable to those Central Civil Government Employees who joined Government Service on or after 1.1.2004 and are covered by National Pension System and will take effect from the same date i.e. 1.1.2004.

Sd/-
(Harjit Singh)
Director (Pension Policy)