Govt extends gratuity benefits to all

Vijay Mohan

Tribune News Service

Chandigarh, August 26

The Central government has extended the benefit of retirement gratuity and death gratuity to all its employees who are covered under the New Defined Contribution Pension System, also known as the National Pension System. 

These orders, issued by the Department of Pension and Pensioners’ Welfare (DPPW) today, would benefit thousands of Central government employees who were appointed from January 2004 onwards.

“The issue of grant of gratuity in respect of government employees covered by the National Pension System has been under consideration and it has now 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 other employees covered by the Central Civil Service (Pension) Rules, 1972” a memorandum issued by DPPW states.

These orders will be applicable to those Central Civil Government employees who joined government service on or after January 1, 2004 and are covered by National Pension System and will take effect from the same date, the memorandum adds.

In December 2015, the then Minister of state for Finance had stated in Parliament that consequent to the amendment, of the pension rules following introduction of the new pension scheme, the Central Civil Services (Pension) Rules were not applicable to the government employees appointed after December 31, 2003 and a case to extend benefits of gratuity to them was under consideration.

Orders were issued in May 2009 for payment of gratuity on a provisional basis only in respect of employees covered under this scheme on their retirement, invalidation or death in service.