Retirement Benefits under New Pension Scheme
It was informed by Minister of State
(PERSONNEL,PUBLIC GRIEVANCES AND PENSIONS) that Central Government employees
covered under New Pension Scheme are entitled for DCRG Benefits viz., Death Cum
Retirement Benefits, in cases where a Government employee covered by NPS is
retired on invalidation/disability and in the case of death of a
Government employee covered by NPS in service, on the same rates as are
applicable under the old pension scheme, i.e. CCS (Pension) Rules, 1972.
GOVERNMENT OF INDIA
MINISTRY
OF PERSONNEL,PUBLIC GRIEVANCES AND PENSIONS
LOK SABHA
UNSTARRED
QUESTION NO 1903
ANSWERED
ON 05.12.2012
RETIREMENT BENEFITS
Query:
Will the Minister of
PERSONNEL,PUBLIC GRIEVANCES AND PENSIONS be pleased to state:-
(a) whether the Union Government
employees recruited after January, 2004 are not eligible for retirement
benefits such as pension, GPF and gratuity;
(b) if so, the reasons therefor;
(c) 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;
(d) if so, the details thereof;
(e) whether the Government proposes
to provide all retirement benefits including gratuity to the Government
servants recruited after January, 2004; and
(f) if so, the details thereof?
Answered by Minister of State in the
Ministry of Personnel, Public Grievances and Pensions and Minister of State in
the Prime Ministers Office. (SHRI V. NARAYANASAMY)
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/4th
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: