This clarification aligns with the Ministry of Finance’s earlier notification (dated 24 January 2025) introducing the UPS for Central Government civil service recruits from 1 April 2025, offering a one-time option for existing NPS-covered employees to transition to the new scheme.

The gratuity benefits will be governed by the Central Civil Service (Payment of Gratuity under NPS) Rules, 2021.

EXTENSION OF BENEFIT OF RETIREMENT GRATUITY AND DEATH GRATUITY TO EMPLOYEES OPTING FOR UNIFIED PENSION SCHEME (UPS)

Ministry of Finance, Department of Financial Service vide its Notification No. FS-1/3/2023-PR dated 24.01.2025 had notified introduction of the Unified Pension Scheme (UPS) as an option under NPS for the recruits to the Central Government civil service w.e.f. 01.04.2025 giving one time option to the Central Government employees covered under the National Pension System (NPS) for inclusion under the Unified Pension Scheme.

In view of the above, the Department of Pension and Pensioners’ Welfare vide its OM No. 57/01/2025-P&PW(B)/UPS/10498 dated 18.06.2025, has issued clarification that the Central Government employees opting for Unified Pension Scheme shall be eligible for benefit of ‘Retirement gratuity and Death gratuity’ under the provisions of the Central Civil Service (Payment of Gratuity under National Pension System) Rules, 2021.

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Pension to Ex-Servicemen

09 AUG 2021

As per the current pension structure applicable to Armed Forces personnel, the following pensionary awards are given:

• Retiring Pension/ Service Pension
• Retiring Gratuity/ Service Gratuity
• Special Pension/ Special Gratuity
• Invalid Pension/ Invalid Gratuity
• Retirement Gratuity/ Death Gratuity
• Disability Pension/ War injury pension
• Ordinary Family pension/ Special Family pension/Liberalized Family pension
• Dependent pension/Second life award of special family pension/ Liberalized family pension
• Family Gratuity

Pension is calculated at 50% of the last emoluments drawn by the individual. The minimum qualifying service for earning a service pension is 20 years in the case of Commissioned Officers and 15 years in the case of Personnel Below Officer Rank.

Pension in respect of Armed Forces personnel has increased from time to time on the basis of recommendations of various Central Pay Commissions. In addition, various Government policy letters have been issued from time to time which resulted in an increase in pension/family pension.

This information was given by Raksha Rajya Mantri Shri Ajay Bhatt in a written reply to Shri Tiruchi Siva in Rajya Sabha today.

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Pensionary Benefits

Introduction
Based on the recommendations of the Vth Pay Commission, the Government has abolished the standard pension of the rank. The normal retiring pension is purely based on two factors i.e. Qualifying Service and Average Monthly Emoluments.

Type of Benefits
If the minimum qualifying service required has been completed officers are eligible for

• Retiring Pension
• Retirement Gratuity

Minimum Qualifying Service
In case officers have not rendered the minimum qualifying service for pension, then they are entitled to

• Retiring Gratuity
• Retirement Gratuity

4. Qualifying Service
It shall mean the actual qualifying service rendered plus a weightage (in years) appropriate to the last rank held (as given subsequently below). The minimum qualifying service (without weightage) to be eligible for retiring pension is 20 years (15 years in case of a late entrant). The maximum qualifying service including weightage reckonable for pensionary benefits is 33 years.

5. Counting of Other Service
Full pre-commissioned service rendered under the Central Government whether in a Civil Department or in the Armed Forces shall be taken in account while working out the Qualifying service for pensionary benefits and determining the minimum Qualifying service for retiring pension.

6. Calculation of Fraction of Year for Qualifying Service
To calculate the length of the Qualifying service, fraction of a year equal to 3 months and above but less than 6 months shall be treated as a completed one half year and reckoned as Qualifying service.

7. Weightage
The object of the weightage for calculating the Retiring Pension is to give the benefit of entitlement to Retiring pension as close as possible to 50% of reckonable emoluments which is the maximum admissible after 33 years of service. The weightage allowed is as follows

8. Reckonable Emoluments
For the purpose of working out the Retiring Pension the term Reckonable Emoluments means the average of the Pay. Dearness Pay, Non-practising Allowance and the Rank pay and Stagnation Pay, if any, drawn during the 10 months immediately preceding the date of retirement.

9. Quantum of Retiring Pension

• The retiring pension is calculated at 50% of average emoluments. The amount so determined is the retiring pension for 33 years of reckonable qualifying service. For lesser period of reckonable qualifying service, this amount is proportionately reduced. The minimum pension shall not be less than Rupee 1,275/- per month wef 01 Jan 1996.
• Further with effect from 01 Apr 2004, since 50% of Dearness Allowance converted into Dearness Pay is counted for retirement benefits, pension/family pension shall be calculated at 50% and 30% respectively of the pay plus Dearness Pay subject to minimum of Rupee 1,913/- and maximum of 50% and 30% respectively of the highest pay plus Dearness Pay in the Government. The highest pay in the Govt wef 01 Jan 96 is Rupee 30,000/-. The highest pension, as of now, comes to Rupee 22,500/- (i.e. basic pension Rupee 15,000/- + dearness pay Rupee 7,500/- = total pension Rupee 22,500/-).

10. Protection of Retiring Pension
Retiring Pension in the rank of Cdr, Commodore (Captain with 3 years and 10 months , or more service) and Rear Admiral shall in NO CASE be less than the pension admissible to the officer as a Lt Cdr, Captain (with less than 3 years and 10 months service) or as a Commodore, as the case may be, had the officer not been promoted to the higher rank.

11. Retirement/Retiring Gratuity
Please see the details in Chapter IV on Gratuity.

12. Pension Disbursing Authorities
The officers may claim the pension through Govt. Treasury/Pension Payment Masters/ Defence Pension Disbursing Officers. They may also draw the pension through Public Sector Banks, if they so desire. With effect from 09 Jul 05, pensioners can operate the joint account of pension with his/her spouse.

13. Illustration
An illustration showing the procedure for calculation of Retiring Pension is given at appendix H. For a near exact amount of pension and gratuity, officers are advised to browse the NPO website https://www.navpay.gov.in

Source: Indian Navy

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Based on the recommendations of the Vth Pay Commission, the Government has abolished the standard pension of the rank. The normal retiring pension is purely based on two factors i.e. Qualifying Service and Average Monthly Emoluments.

Type of Benefits
If the minimum qualifying service required has been completed officers are eligible for

• Retiring Pension
• Retirement Gratuity

Minimum Qualifying Service
In case officers have not rendered the minimum qualifying service for pension, then they are entitled to

• Retiring Gratuity
• Retirement Gratuity

Qualifying Service
It shall mean the actual qualifying service rendered plus a weightage (in years) appropriate to the last rank held (as given subsequently below). The minimum qualifying service (without weightage) to be eligible for retiring pension is 20 years (15 years in case of a late entrant). The maximum qualifying service including weightage reckonable for pensionary benefits is 33 years.

Counting of Other Service
Full pre-commissioned service rendered under the Central Government whether in a Civil Department or in the Armed Forces shall be taken in account while working out the Qualifying service for pensionary benefits and determining the minimum Qualifying service for retiring pension.

Calculation of Fraction of Year for Qualifying Service
To calculate the length of the Qualifying service, fraction of a year equal to 3 months and above but less than 6 months shall be treated as a completed one half year and reckoned as Qualifying service.

Weightage
The object of the weightage for calculating the Retiring Pension is to give the benefit of entitlement to Retiring pension as close as possible to 50% of reckonable emoluments which is the maximum admissible after 33 years of service. The weightage allowed is as follows

Reckonable Emoluments
For the purpose of working out the Retiring Pension the term Reckonable Emoluments means the average of the Pay. Dearness Pay, Non-practising Allowance and the Rank pay and Stagnation Pay, if any, drawn during the 10 months immediately preceding the date of retirement.

Quantum of Retiring Pension

• The retiring pension is calculated at 50% of average emoluments. The amount so determined is the retiring pension for 33 years of reckonable qualifying service. For lesser period of reckonable qualifying service, this amount is proportionately reduced. The minimum pension shall not be less than Rupee 1,275/- per month wef 01 Jan 1996.
  
• Further with effect from 01 Apr 2004, since 50% of Dearness Allowance converted into Dearness Pay is counted for retirement benefits, pension/ family pension shall be calculated at 50% and 30% respectively of the pay plus Dearness Pay subject to minimum of Rupee 1,913/- and maximum of 50% and 30% respectively of the highest pay plus Dearness Pay in the Government. The highest pay in the Govt wef 01 Jan 96 is Rupee 30,000/-. The highest pension, as of now, comes to Rupee 22,500/- (i.e. basic pension Rupee 15,000/- + dearness pay Rupee 7,500/- = total pension Rupee 22,500/-).

Protection of Retiring Pension
Retiring Pension in the rank of Cdr, Commodore (Captain with 3 years and 10 months, or more service) and Rear Admiral shall in NO CASE be less than the pension admissible to the officer as a Lt Cdr, Captain (with less than 3 years and 10 months service) or as a Commodore, as the case may be, had the officer not been promoted to the higher rank.

Retirement/ Retiring Gratuity
Please see the details in Chapter IV on Gratuity.

Pension Disbursing Authorities
The officers may claim the pension through Govt. Treasury/ Pension Payment Masters/ Defence Pension Disbursing Officers. They may also draw the pension through Public Sector Banks, if they so desire. With effect from 09 Jul 05, pensioners can operate the joint account of pension with his/her spouse.

Illustration
An illustration showing the procedure for calculation of Retiring Pension is given at appendix H. For a near exact amount of pension and gratuity, officers are advised to browse the NPO website https://www.navpay.gov.in

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NPS – Extension of benefits of Retirement Gratuity and Death Gratuity to the employees of Autonomous Body/ Organisation covered under National Pension System

F.110230(NPS)2018 /KVS(HQ)/ P&I/ 2133

Dated: 16.05.2019

The Deputy Commissioner/Director,
Kendriya Vidyalaya Sangathan,
All Regional Offices/ZIETs

Sub:- Extension of benefits of Retirement Gratuity and Death Gratuity to the employees of Autonomous Body/Organisation covered under National Pension System (NPS).

Sir,

I am to inform you that Ministry of HRD, vide letter dated 22.04.2019, has directed KVS for stoppage of retirement and death gratuity to the NPS subscribers forthwith. Therefore, death & retirement gratuity and provisional family pension, in terms of CCS (Pension) Rules, 1972, will not be payable to NPS subscriber with effect from 30.04.2019 till further order.

This issues with the approval of the Commissioner, KVS.

Yours faithfully,

(A.K. Srivastava)
Assistant Commissioner (Finance)

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Ministry of Personnel, Public Grievances & Pensions

Withdrawal of Pension Facility

03 JAN 2019

Information regarding the number of Central Government employees in the country is not maintained centrally in this Ministry. As per information provided by Department of Expenditure, the total number of Central Government civilian employees, as on 01.03.2016, was 32, 21,183

Total number of Central Government civil pensioners, as on 31.03.2018, is 37, 02,882.

Central Government employees (except Armed Forces personnel) appointed on or after 01.01.2004 are covered under the National Pension System (NPS) notified vide Ministry of Finance (Department of Economic Affair’s) Notification No. 5/7/2003-ECB & PR dated 22.12.2003 and Section 20 of PFRDA Act, 2013. Such employees are, therefore, not covered by the Central Civil Services (Pension) Rule, 1972, which are allocable to Central Government civil employees appointed on or before 31.12.2003.

Under NPS a monthly contribution of 10 percent of basic pay plus dearness allowance is required to be made by the employees and a matching contribution is made by the Government. It has since been decided to increase the Government contribution to 14 percent of basic pay and dearness allowance.

On superannuation/retirement, at least 40% of the accumulated pension wealth of such subscriber is mandatorily utilized for purchase of annuity providing for a monthly or any other periodical pension and the balance of the accumulated pension wealth after such utilization is paid to the subscriber in lump sum.

In the event of death of a Government servant of his discharge from service on account of disability or invalidation on medical grounds, the benefit of Central Civil Services (Pension) Rules, 1972 are available to the Government employees of his family members.

Central Government employees covered under NPS are eligible for the benefit of retirement gratuity and death gratuity on the same terms and conditions as are applicable under Central Civil Services (Pension) Rules, 1972.

NPS employees are also eligible for other post-retirement benefits such as leave encashment, group insurance, medical facility, etc., as are applicable to employees appointed before 01.01.2014.

This information was provided by the Union Minister of State (Independent Charge) Development of North-Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances & Pensions, Atomic Energy and Space, Dr Jitendra Singh in written reply to a question in Rajya Sabha today.

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19 DEC 2018

Department of Social Justice & Empowerment has informed that there is at present no proposal in that Department for lowering the age of senior citizen. Government employees become entitle to pension on retirement. There is also no proposal to increase or decrease the age of retirement of Central Government Employees.

The salient features of the pension entitlements of employees retiring from the Central Government are as under:

• A Government servant retiring in accordance with the rules, after completing a qualifying service of not less than 10 years, is entitled to a pension @ 50% of his last pay or 50% of average emoluments for the last 10 months, whichever is more beneficial to him/her.
• After completion of 80 years of age or above, additional pension @ 20% to 100% is payable to the retired Government servant.
• A retired/retiring Government servant is entitled to, at his/her option, a lump sum payment, by commutation of a maximum of 40% of his/her pension.
• On retirement, a Government employee is entitled to a retirement gratuity based on his/her emoluments and length of qualifying service.
• On death of a Central Government pensioner, the family is entitled to a family pension the amount of which is 50% of the last pay for a period of seven years, or for a period up to the date on which the retired deceased Government servant would have attained the age of 67 years had he/she survived, whichever is earlier. Thereafter, the amount of family pension is 30% of his last pay.  The amount of family pension is also increased by 20% to 100% after the family pensioner attains the age of 80 years and above.
• The family of a Government servant, who dies while in service after having rendered not less than seven years’ continuous service, is entitled to a family pension 50% of the last pay for a period of ten years. Thereafter, the amount of family pension is 30% of his/her last pay.

This was stated by the Minister of State in the Ministry of Personnel, Public Grievances and Pensions and Minister of State in the Prime Minister’s Office, Dr. Jitendra Singh in a written reply to a question in the Lok Sabha today.

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Circular No C-170

No.G1/C/MISC/NPS-II/Tech
O/o the PCDA (P), Allahabad
Dated: 13-07-2017

Sub: NPS: Extension of benefits of Retirement Gratuity and Death Gratuity to the Central Government employees covered by New Defined Contribution Pension System (National Pension System) -regarding.

Ref:- This office Circular No. 79 dated 29/10/2010 and No. 110 dated 12/08/2013

Benefits of Retirement Gratuity and Death Gratuity to the Central Government employees covered by New Defined Contribution Pension System (National Pension System) has been extended vide Govt. of India, Ministry of PPG & P, Deptt. of P&PW in their O.M. No. 7/5/2012-P&PW (F)/B dated 26.08.2016 (copy enclosed)on the same terms and conditions as are applicable to employees covered by Central Civil Service (Pension) Rules, 1972. The Ministry has further clarified vide O.M.No.28/03/2017-P&PW(B) dt. 18/05/2017, that CCS (Pension) Rules, 1972 are otherwise not applicable to the Central Government employees covered under NPS. Hence, they would obviously not be eligible for Service Gratuity or Pension under the CCS (Pension) Rules.

2. The phrase ‘terms and condition’ in the ibid O.M. dated 26.08.2016 refers to the requirement of qualifying service, the rates on which retirement gratuity is to be paid, the limit of amount of gratuity, nominations, disciplinary provisions, etc. in the CCS(Pension) Rules. All these condition would be equally applicable for grant of gratuity to employees covered under NPS. The decision to extend retirement gratuity and death gratuity vide the O.M. dated 26.08.2016 is absolute and not provisional. Separate rules on gratuity for Central Government employees under NPS would be framed in due course.

3. Now, it has been decided that to submit the claims of above beneficiaries for Retirment Gratuity and Death Gratuity, the following procedures shall be adopted by HOO and Pay Audit Controllers:-

i. H.O.O. will prepare a claim in case of NPS beneficiaries going to retire in accordance with the procedure as prescribed for Defence Civilian Personnel appointed before 01.01.2004 and will submit the same along with service boom and all the relevant documents (Which is required in case of pre 01.01.2004 Cases) to PAO concerned i.e.LAO/RAO. The Permanent Retirement account No. (PRAN) of the concerned Government Servant Allotted by National Security Depository limited (NSDL) will also be indicated. In cases where PRAN has not been allotted by NSDL to a NPS subscriber being non-effecting account as on 0104.2008, permanent pension account No.(PPAN) allotted to subscriber will be indicated.

ii. PAO will carry all necessary checks with reference to the entries in service book and as admissible under the OM No.38/41/06 P&PW (A) dated 05.05.2009 (already circulated under this office circular no.79 dt. 29-10-2010) to ensure that entries made in claim are in as per records in the service book of the individual. After signing and affixing the seal, the PAO concerned i.e.LAO/RAO will pass on the claim to the PCDA(P) Allahabad. The service book will be returned by PAO to HOO concerned.

iii.HOO will also maintain a separate register for recording entries for PRAN /PPAN No., Name of Government Servant, PPO No. and awards notified.

iv. On receipt of PPO from PCDA(P) Allahabad, HOO will check the same and after recording the entries in the register retransmit PDA’s copy to PDA, Pensioner copy to Pensioner and retain

HOO copy for their own record.

v. Other procedures prescribed for pre 01-01-2004 pensioner will also be followed by the HOO in case of NPS beneficiaries.

4. In view of the foregoing, you also are requested to issue suitable instructions (along with copy of this circular) to all the Head of Offices under your administrative control to ensure that claim on the subject matter henceforth are floated in accordance with instructions given in above Para.

(Rajeev Ranjan Kumar)
Dy.CDA (P)

Source: [PCDA.nic.in]

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Extend the benefit of Gratuity to all NPS Employees

IMPORTANT GOVT ORDER

A MAJOR VICTORY OF THE STRUGGLE OF CENTRAL GOVT EMPLOYEES:

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Extension of benefits of (Retirement Gratuity and Death Gratuity) to the Central Government employees covered by new Defined Contribution Pension System (National Pension System)- regarding.

No.7/5/2012-P&PW(F)/B
Ministry of Personnel, Public Grievances and Pensions
Department of Pension and Pensioners Welfare

Lok Nayak Bhavan, Khan Market,
New De1hi-110 003, Dated the 26 August, 2016.

OFFICE MEMORANDUM

Subject : Extension of benefits of ‘Retirement Gratuity and Death Gratuity’ to the Central Government employees covered by new Defined Contribution Pension System (National Pension System) — regarding.

The undersigned 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 National Pension System), notified by the Ministry of Finance (Department of Economic Affairs) vide their OM No.5/7/2003-ECB & PR dated 22.12.2003. Orders were issued for payment of gratuity on provisional basis in respect of employees covered under National Pension System on their retirement from Government service on invalidation or death in service, vide this Department’s OM No.38/41/2006-P&PW(A) dated 5.5.2009.

2. The issue of grant of gratuity in respect government employees covered by the National Pension System has been under consideration of the Government. It has been decided that the government employees covered by National Pension System shall eligible for benefit of ‘Retirement gratuity and Death gratuity’ on the same terms and conditions, as are applicable to employees covered by Central Civil Service (Pension) Rule,1972.

3. These orders issue with the concurrence of Ministry of Finance, Department of Expenditure, vide their I.D. Note No.1(4)/EV/2006-II dated 29.07.2016.

4. In their application to the persons belonging to the Indian Audit and Accounts Department, these orders issue after consultation with Comptroller and Auditor General of India.

5. These orders will be applicable to those Central Civil Government employees who joined Government service on or after 1.1.2004 and are covered by National Pension System and will take effect from the same date i.e. 1.1_2004.

sd/-
(Harjit Singh)
Director (Pension Policy)

Click to view the order

Authority :http://www.pensionersportal.gov.in/

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