For the Central Government employees covered under the National Pension System (NPS), the benefit of retirement gratuity while counting the service period, on moving from one organisation to another organisation, remained a matter of concern. The government has come out with a clarification and the rules to determine the service period in such cases. For counting of service on joining a new service in State Government or Central Government or autonomous body for the benefit of gratuity in respect of Central Government employees covered under the National Pension System (NPS) is clearly defined now.

The employees of the Central government were often moved from one department to another or from a Central Government service to a State Government service or even to a State Autonomous Body service having National Pension System.

It has now been decided that the grant of retirement gratuity and counting of service for gratuity on the mobility of an NPS government employee may be regulated in the following manner:

(i) On mobility from a Central Government service to ‘another Central Government service, the service rendered in the previous Department in the Central Government shall be counted for the purpose of grant of gratuity. There shall be no sharing of gratuity liability between the two Departments of Central Government.

(ii) On mobility from a Central Government service to a State Government service having National Pension System with provision for Retirement / Death Gratuity for its employees similar to those in Central Government, the service rendered in the Central Government shall be counted for the purpose of grant of gratuity. Same provisions shall apply on the mobility of an NPS employee of the State Government to the Central Government Department. There shall be no sharing of gratuity liability between the Central and State Governments.

(iii) On mobility from Central Government service to a Central or State Autonomous Body service having National Pension System with the provision of retirement/death gratuity for its employees similar to that in the Central Government, the service rendered in the Central Government would be counted for grant of gratuity. The Government will discharge its gratuity liability by paying the amount of retirement gratuity for the service rendered in the Government to the Central or State Autonomous body.

(iv) On mobility from Central Government service to a Central or State Autonomous Body or to a State Government where the provision for grant of gratuity similar to that in Central Government does not exist or to a Public Sector Undertaking, the NPS Government employees shall be granted retirement gratuity as per rule for the service rendered in the Central Government subject to the condition that the total gratuity admissible in respect of the service rendered under the Government of India and that under the later organization, shall not exceed the amount that would have been admissible. had Government servant continued in Government service and retired on the same pay which he/ she drew on retirement from the later Organization.

The above provisions would be applicable to Government employees covered under NPS who resign to take up with proper permission, another appointment in the Central / State Government or Central / State Autonomous body or a PSU.

Earlier, in the event of death or disability during service, the benefits of invalid or disability pension, family pension and retirement or death gratuity were provisionally extended to NPS employees at par with the employees appointed before 01.01.2004.

Subsequently, the benefit of retirement gratuity and death gratuity was extended to all central government employees covered under National Pension System (NPS) on the same terms and conditions, as are applicable to employees covered by CCS (Pension) Rules, 1972.

Source : PTI