RBE No. 29/2020: NPS – National Pension System – Counting of Previous Service

No.F(E)III/2005/PN1/35, dated 04.03.2020

Sub: Counting of service on joining new service in State Government/ Central Government/ Autonomous Body for the benefit of gratuity in respect of Railways employees covered under National Pension System (NPS).

1. A copy of Department of Pension & Pensioners’ Welfare (DOP&PW’s) O.M. No.7/5/2012-P&PW(F)/B, dated 12th February, 2020 is enclosed herewith for compliance and guidance. These instructions shall apply mutatis-mutandis on the Railways also. Central Civil Services (Pension) Rules, 1972 correspond to the Railway Services (Pension) Rules, 1993.
2. The Railway Board’s instructions corresponding to the DOP&PW’s instructions referred to in their aforesaid O.M. dated 12th February, 2020 are given under:-

Ministry of Personnel, Public Grievances and Pensions
Department of Pension and Pensioners Welfare
O.M. No.7/5/2012-P&PW(F)/B, dated 12th February, 2020
OFFICE MEMORANDUM

Sub: 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).

1. The undersigned is directed to say that vide this departments O.M. No.38/41/06-P&PW(A), dated 05.05.2009, in the event of death/ disability during service, the benefits of Invalid/ Disability pension, Family pension and retirement/ 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 has been extended to all Central Government employees covered under National Pension System (NPS) vide this Department’s O.M. No.7/5/2012-P&PW(F)/B, dated 26.08.2016 on the same terms and conditions as are applicable to employees covered by CCS (Pension) Rules, 1972.
2. References have been received in the Department seeking clarification with regard to the benefit of retirement gratuity on mobility from one organization to another organization. This matter has been considered in consultation with the Department of Expenditure. It has been 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 services rendered in the Central Government shall be counted for the purpose of grant of gratuity. Same provision 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/ 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/ Organization 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 employee 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 services 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.

3. This issues with the concurrence of Ministry of Finance, Department of Expenditure vide their U.O. Note No.1(4)/EV/2006-II, dated 30.10.2019.
4. In their application to the employees of Indian Audit and Accounts Department these orders issued after consultation with the Comptroller and Auditor General of India as mandated under Article 148(5) of the Constitution.
5. All the Ministries/ Departments are requested to bring the above instructions to the notice of all offices/ field formation working under their administrative control.

Download Railway Board Circular RBE No. 29/2020

Forward reference ⇒ RBE No.