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Govt Servant in NPS is eligible to receive a lump sum compensation

January 20, 2021 G. Buvaneswari

Govt Servant in NPS is eligible to receive a lump sum compensation if the disablement is attributable to Government service

It has now been decided that if a Government employee appointed on or after 01.01.2004 and covered under NPS is disabled, he shall also be eligible to receive a lump sum compensation computed in terms of rule 9(3) of CCS (EOP) Rules, if the disablement is attributable to Government service and the Government employee is retained in service in spite of such disablement

1/3/2019-P&P(F)
Government of India
Ministry of Personnel Public Grievances and Pensions
Department of Pension and Pensioners Welfare

Lok Nayak Bhawan Khan Market,
New Delhi- 110003
Dated 1st January 2021

Office Memorandum

Subject: Payment of lump sum compensation to employees covered under NPS on retention in Government service in spite of disablement attributable to Government service in accordance with Rule 9(3) of CCS (Extra Ordinary Pension) Rules, 1939-regarding.

The undersigned is directed to say that on introduction of National Pension System with effect from 01.01.2004, among others, the CCS (Pension) Rules, 1972 and CCS (EOP) Rules, 1939 were amended vide Notification No. 38/16/2003-P&PW (A) dated 30.12.2003 to the effect that the provisions of the aforesaid Rules would not be applicable to the Government employees appointed on or after 01.01.2004.

However, considering the hardships being faced by the employees covered under National Pension System and their families, orders were issued vide this Department’s OM No 38/41/06-P&PW dated 05.05.2009 for provisionally extending the benefits of invalid pension, disability pension and family pension under CCS (Pension) Rules and CCS (EOP) Rules on discharge of such employees from service on invalidation/disability or on their death during service.

Representations/references have been received in this Department for extending the benefit under Rule 9(3) of CCS (EOP) Rules, to the employees appointed on or after 01.01.2004 and covered under NPS. In accordance with Rule 9(3) of CCS (EOP) Rules, applicable to Government employees appointed before 01.01.2004, if a Government employee is retained in service in spite of a disablement attributable to Government service, a lump sum compensation is paid to him by arriving at the capitalized value of the disability element of disability pension, with reference to the commutation table in force from time to time.

The broad-banding under Rule 8(3) of those rules is, however, not applicable in such cases. In accordance with the OM dated 05.05.2009, the benefit of disability pension is available to the employees covered under the National Pension System only on being boarded out on account of the disability attributable to Government service, however, the benefit under Rule 9(3) of the CCS (EOP) Rules, is presently not available to an employee covered under NPS, if he is retained in service in spite of a disablement attributable to Government service.

The matter has been examined in consultation with Department of Expenditure. It has now been decided that if a Government employee appointed on or after 01.01.2004 and covered under NPS is disabled, he shall also be eligible to receive a lump sum compensation computed in terms of rule 9(3) of CCS (EOP) Rules, if the disablement is attributable to Government service and the Government employee is retained in service in spite of such disablement. The provisions of this Department’s OM No 38/41/06-P&PW (A) dated 05.05.2009 shall stand amended to that extent.

The provisions of this O.M. shall take effect from 01.01.2004.

This issues with the concurrence of Ministry of Finance, Department of Expenditure vide their ID No 1(6)/EV/2020 dated 23.12.2020.

In their application to the persons belonging to Indian Audit and Accounts Department, these orders are issued under Article 148(5) of the Constitution and after consultation with the Comptroller and Auditor General of India vide their “यु.ओ.संख्या-232-स्टाफ हक़ (नियम)/ए.आर./09-2019 दिनांक 27.11.2020.

The Administrative Divisions of all Ministries/Departments and attached/subordinate offices are requested to bring the contents of these instructions to the notice of all concerned for compliance. The cases for payment of lump sum compensation to the employees covered under NPS and who have been retained in service in spite of disability attributable to Government service on or after 01.01.2004 may be processed accordingly.

(संजय शंकर)
भारत सरकार के उप-सचिव

View the Order Copy

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