Retirement Gratuity and counting of service on mobility of an NPS Government Employee

Department of Pension and Pensioners Welfare released the office memorandum No.7/5/2012-P&PW(F)/B dated 12th February, 2020 with the subject Counting of service on joining new service in State Government / Central Government/ autonomous body for the benefit of gratuity in respect of Central Govt. Employees covered under National Pension System (NPS), in which DOPPW decided that the grant of retirement gratuity and counting of service for gratuity on 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 mobility of an NPS employee of the State Government to 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 provision of retirement I 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. This procedure shall be followed mutatis mutandis in respect of NPS employees going over from one autonomous body to another autonomous body or from an autonomous body to Central Government / Department / organisation both having National Pension System with provision of retirement / death gratuity for its employees similar to that in the Central Government.

(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.

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