A brief note of the Ministry of DOPT
on New Pension Scheme - Retirement Benefits
The below questions raised by the
Hon'ble Member of Parliament Shri.Aswamedh Devi in the Lok Sabha and the
Minister of State in the Ministry of Personnel, Public Grievances and Pensions
and Minister of State in the Prime Ministers Office Shri. V. NARAYANASAMY
answered to the question below quoted on 05.12.2012 in the written form as
follows...
Questions :-
Whether the Union Government
employees recruited after January, 2004 are not eligible for retirement benefits
such as pension, GPF and gratuity..?
Whether not providing gratuity,
pension and GPF facility is a discrimination with employees recruited after
January, 2004 as the same is being provided to the employees of private
sector..?
Whether the Government proposes to
provide all retirement benefits including gratuity to the Government servants
recruited after January, 2004..?
Answer :-
A new restructured defined
contribution pension system for the new entrants to Central Government service,
except to the Armed Forces, replacing the system of defined benefit pension
including GPF, was notified on 22nd December, 2003. The Government employees
appointed on or after 1.1.2004 and governed by the New Pension System can
withdraw 60% of their Pension Fund as a lumpsum when they retire and the
balance 40% of their wealth is used to purchase an annuity scheme from a life
insurance company of their choice, which will pay him/her a monthly pension for
the rest of his life. In casethe employees leave the New Pension Scheme prior
to age 60, the mandatory anuitization would be 80% of the pension wealth.
The monthly annuity under the New
Pension Scheme is only a replacement of pension on retirement and family
pension on death after retirement. The benefits of Death-cum-Retirement
Gratuity (DCRG) and pension/family pension have been provisionally allowed,
vide Department of Pension & Pensioners` Welfare OM No.
38/41/06-P&PW(A) dated 5.5.2009, in respect of the Central Government
servants covered by the New Pension Scheme 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, i.e. CCS (Pension) Rules, 1972.
The details of DCRG payable to
employees of Central Government under NPS are as under:
(i) 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 @ l/4lh
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 16 XA times the Basic Pay, subject to a maximum of Rs. 10
lakhs.
(ii) If the Government Servant dies
while in service, the death gratuity shall be paid to his family at the rates
furnished in the table below:
Maximum amount of Death Gratuity admissible is Rs. 10 lakhs w.e.f. 1.1.2006. | |||||||||||||||
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