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Wednesday, May 6, 2009

Additional benefits for employees covered under NPS

No.38/41/06/P&PW(A)
Government of India
Ministry of Personnel Grievances and Pensions
Department of Pension and Pensioners Welfare
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Lok Nayak Bhawan Khan Market, New Delhi - 110 003 Dated 5th May, 2009
OFFICE MEMORANDUM

Subject : Additional Relief on death/disability of Government servants covered by the New Defined Contribution Pension System (NPS)
The undersingned 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 New Pension Scheme), notified by the Ministry of Finance (Department of Economic Affiairs) vide their O.M. No. 5/7/2003-ECB 2 PR dated 22.12.2003.
2. On introduction of New Pension Scheme, among others, the Central Civil Service (Pension) Rules, 1972 and the Central Civil Services (Extraordinary Pension) Rules were amended on 30.12.2003. Under the amended Rules, the benefits of Invalid Pension/Disability Award and Family Pension/Extraordinary Family Pension/Liberalized Pensionary Award relief are not available to the Government servants appointed on or after 1.1.2004. 3. Ministry of Finance (Department of Economic Affairs) has subsequently clarified that the New Pension Scheme is a replacement for only pension under normal circumstances and family pension in case of death of employees after retirement. 4. A High Level Task Force (HLTF) constituted by the Government has recommended certain additional benefits that can be provided on death or discharge on invalidation/disability of a Government servant covered by the New Pension Scheme. It is likely to take some time before the rules regulating these benefits under the New Pension System are put in place. 5. Meanwhile, considering the hardships being faced by the employees appointed on or after 1.1.2004 who are discharged on invalidation/disablement and by the families of such employees who have died during service since 1.1.2004, the President to extend the following benefits to Central Civil Government Servants covered by the New Pension Scheme, on provisional basis till further orders: (I) Retirement from Government service on invalidation not attributable to Government duty: (i) Invalid Pension calculated in terms of Rules 38 and Rule 49 of the Central Civil Services (Pension ) Rules, 1972. (ii) Retirement gratuity calculated in terms of Rule 50 of the Central Civil Services (Pension) Rules, 1972. (II) Death in service not attributable to Government duty: (i) Family Pensin (including enhanced family pension) computed in terms of Rule 54 of the Central Civil Service (Pension) Rules, 1972. (ii) Death / Gratuity computed in terms of Rule 50 of the Central Civil Service (Pension) Rules, 1972.(III) Discharge from Government service due to disease/injury attributable to Government duty: (i) Disability Pension computed in terms of the Central Civil Service (Extraordinary Pension) Rules. (ii) Retirement Gratuity computed in terms of the Central Civil Service (Extraordinary Pension) Rules read with Rule 50 of the Central Civil Service (Pension) Rules, 1972. (IV) Death in service attributable to Government duty: (i) Extraordinary Family Pension computed in terms of Central Civil Service (Extraordinary Pension) Rules and Scheme for Liberalised Pensionary Awards. (ii) Death gratuity computed in terms of Rule 50 of the Central Civil Service (Pension) Rules,1972. The employee / his family will also be paid Dearness Pension / Dearness Relief admissible from time to time in addition to the above benefits, on provisional basis. 6. The above provisional payments will be adjusted against the payments to be made in accordance with the Rules framed on the recommendations of the HLTF and recoveries, if any, will be made from the future payments to be made on the basis of those rules. 7. The recommendations of the HLTF encisage payment of various benefits on death/discharge of a Government employee after adjustment of the monthly annuitised pension from the accumulated funds in the NPS Account of the employee. Therefore, no payment on monthly-annuitised pension will be made to the employee/family of the employee during the period he/she is in receipt of the provisional benefits mentioned in para 5 above. 8. In case where, on discharge/death of the employee, the amount of accumulatd funds in the NPS Account have been paid to the employee/family of the employee, the amount of monthly-annuitised pension from the date of discharge/death will be worked out in accordance with the rules/regulations to be notified by the Department of Financial Service/PFRDA and the same will be adjusted against the payment of benefits/relief after the notified rules in this respect are in place. 9. These instructions will be applicable to those Government servants who joined Government service on or after 1.1.2004 and will take effect from the same date i.e. 1.1.2004. 10. This Order issues with the concurrence of Ministry of Finance (Deapartment of Expenditure) vide their U.O.No. 127/EV/2009 dated 13.4.209. (M.P.Singh) Director


CCS PENSION RULES:-
Rule No.38 - Rule No.Invalid pension (1) Invalid pension may be granted if a Government servant retires from the service on account of any bodily or mental infirmity which permanently incapacitates him for the service. (2) A Government servant applying for an invalid pension shall submit a medical certificate of incapacity from the following medical authority, namely :- (a) a Medical Board in the case of a Gazetted Government servant and of a non-gazetted Government servant whose pay, as defined in Rule 9 (21) of the Fundamental Rules, exceeds 3[Two thousand and two hundred rupees] per mensem ; (b) Civil Surgeon or a District Medical Officer or Medical Officer of equivalent status in other cases. NOTE 1. - No medical certificate of incapacity for service may be granted unless the applicant produces a letter to show that the Head of his Office or Department is aware of the intention of the applicant to appear before the medical authority. The medical authority shall also be supplied by the Head of the Office or Department in which the applicant is employed with a statement of what appears from official records to be the age of the applicant. If a service book is being maintained for the applicant, the age recorded therein should be reported. NOTE 2. - A lady doctor shall be included as a member of the Medical Board when a woman candidate is to be examined. (3) The form of the Medical Certificate to be granted by the medical authority specified in sub-rule (2) shall be as in Form 23. (4) Where the medical authority referred to in sub-rule (2) has declared a Government servant fit for further service of less laborious character than that which he had been doing, he should, provided he is willing to be so employed, be employed on lower post and if there be no means of employing him even on a lower post, he may be admitted to invalid pension. Footnote : 2. Substituted by G.I., M.F., Notification No. F. 19 (3)-E. V (A)/74, dated the 29th January, 1976. 3. Substituted vide G.I., Dept. of P. & P.W., Notification No. 2/18/87-P. & P.W. (PIC), dated the 20th July, 1988. Published as S.O. No. 2388 in the Gazette of India, dated the 6th August, 1988. Rule No.49 - Subject: Amount of Pension 5[ (1) In the case of a Government servant retiring in accordance with the provisions of these rules before completing qualifying service of ten years, the amount of service gratuity shall be calculated at the rate of half month's emoluments for every completed six monthly period of qualifying service. (2) (a) In the case of a Government servant retiring in accordance with the provisions of these rules after completing qualifying service of not less than thirty-three years, the amount of pension shall be calculated at fifty per cent of average emoluments, subject to a maximum of four thousand and five hundred rupees per mensem.]; (b) in the case of a Government servant retiring in accordance with the provisions of these rules before completing qualifying service of thirty three years, but after completing qualifying service of ten years, the amount of pension shall be proportionate to the amount of pension admissible under Clause (a) and in no case the amount of pension shall be less than 1[Rupee three hundred and seventy-five] per mensem ; (c) notwithstanding anything contained in Clause (a) and Clause (b) the amount of invalid pension shall not be less than the amount of family pension admissible under sub-rule (2) of Rule 54. 2(3) In calculating the length of qualifying service, fraction of a year equal to 3[three months] and above shall be treated as a completed one half-year and reckoned as qualifying service. 2(4) The amount of pension finally determined under Clause (a) or Clause (b) of sub-rule (2), shall be expressed in whole rupees and where the pension contains a fraction of a rupee it shall be rounded off to the next higher rupee. 4(5) & (6) Deleted Footnote : 1. Substituted vide G.I., Dept. of P. & P.W., Notification No. 2/18/87-P. & P.W. (PIC), dated the 20th July, 1988. Published as S.O. No. 2388 in the Gazette of India, dated the 6th August, 1988. Takes effect from 1st January, 1986. 2. Substituted by G.I., Dept. of Per. & A.R., Notification No. F. 38 (4)-Pen. (A)/80, dated the 8th August, 1980. 3. Substituted by G.I., Dept. of Per. & A.R., Notification No. 32/4/83-Pension Unit, dated the 26th August, 1983. Takes effect from 28th June 1983. 4. Deleted by G.I., Dept. of Per. & A.R., Notification No. F. 38 (4)-Pen. (A)/80, dated the 8th August, 1980. 5. Substituted vide G.I., Dept. of P. & P.W., Notification No. 2/18/87-P. & P.W. (PIC), dated the 20th July, 1988. Published as S.O. No. 2388 in the Gazette of India, dated the 6th August, 1988. Takes effect from 1st January, 1986. Rule No.50 - Subject: Retirement on completion of 30 years' qualifying service (1) At any time after a Government servant has completed thirty years' qualifying service - (a) he may retire from service, or (b) he may be required by the appointing authority to retire in the public interest, and in the case of such retirement the Government servant shall be entitled to a retiring pension : Provided that - (a) a Government servant shall give a notice in writing to the appointing authority at least three months before the date on which he wishes to retire; and (b) the appointing authority may also give a notice in writing to a Government servant at least three months before the date on which he is required to retire in the public interest or three months' pay and allowances in lieu of such notice : 2 Provided further that where the Government servant giving notice under clause (a) of the preceding proviso is under suspension, it shall be open to the appointing authority to withhold permission to such Government servant to retire under this rule : 3 Provided further that the provisions of clause (a) of this sub-rule shall not apply to a Government servant, including scientist or technical expert who is - (i) on assignments under the Indian Technical and Economic Cooperation (ITEC) Programme of the Ministry of External Affairs and other aid programmes, (ii) posted abroad in foreign based offices of the Ministries/Departments, (iii) on a specific contract assignment to a foreign Government, unless, after having been transferred to India, he has resumed the charge of the post in India and served for a period of not less than one year. 1(1-A) (a) A Government servant referred to in clause (a) of the first proviso to sub-rule (1) may make a request in writing to the appointing authority to accept notice of less than three months giving reasons therefor. (b) On receipt of a request under clause (a) the appointing authority may consider such request for the curtailment of the period of notice of three months on merits and if it is satisfied that the curtailment of the period of notice will not cause any administrative inconvenience, appointing authority may relax the requirement of notice of three months on the condition that the Government servant shall not apply for commutation of a part of his pension before the expiry of the period of notice of three months. (2) A Government servant, who has elected to retire under this rule and has given the necessary intimation to that effect to the appointing authority, shall be precluded from withdrawing his election subsequently except with the specific approval of such authority : Provided that the request for withdrawal shall be within the intended date of his retirement. 4(3) For the purpose of this rule the expression 'appointing authority' shall mean the authority which is competent to make appointments to the service or post from which the Government servant retires. For consolidated instructions regarding premature retirement of Government servants refer appendix 10 of CCS(Pension) rules book Footnote : 1. Inserted by G.I., Dept. of Per. & A.R., Notification No. 31/3/80-Pension Unit, dated the 5th March, 1981. 2. Inserted by G.I., M.F., Notification No. 6 (8)-E. V (A)/73, dated the 25th January, 1974. 3. Inserted by G.I., Dept. of P. & P.W., Notification No. 38/15/85-Pension Unit, dated the 1st July, 1985, published as S.O. No. 3324 in the Gazette of India, dated the 20th July, 1985 and takes effect from that date. 4. Inserted by G.I., M.F., Notification No. 7 (10)-E. V (A)/77, dated the 31st August, 1977.

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