Death-cum-Retirement Gratuity is paid to Central Government employees under New Pension System (NPS) as it is paid under the old pension scheme. The monthly annuity under the New Pension System (NPS) is only a replacement of pension on retirement and family pension of death after retirement. The benefits of Death cum Retirement Gratuity (DCRG) and pension/family pension have been provisionally allowed, vide the Office Memorandum of Department of Pension and Pensioners’ Welfare No. 38/41/06-P & PW(A) dated 5.5.2009 in respect of Central Government servants covered under NPS in cases where a Government Servant is retired on invalidation/disability and in the case of death of a Government servant in service on the same rates as are applicable under the old pension scheme Central Civil Service (Pension) Rules, 1972. The retirement gratuity is payable to the retiring Government servant. A minimum of 5 years’ qualifying service and eligibility to receive service gratuity/pension is essential to get this one time lump sum benefit. Retirement gratuity is calculated @ 1/4th of a month’s Basic Pay plus Dearness Allowance drawn before retirement for each completed six monthly period of qualifying service. The maximum retirement gratuity payable is 16½ times the Basic Pay, subject to a maximum of Rs. 10 lakh. If the Government Servant dies while in service, the death gratuity shall be paid to his family at rates furnished in the table below:

Maximum amount of Death Gratuity admissible is Rs, 10 lakh with effect from 1.1.2006.

This was stated by Minister of State for Finance, Shri Namo Narain Meena, in written reply to a question in the Lok Sabha today.

DSM/RS/rs

(Release ID :95539)

Death-cum-Retirement Gratuity under NPS continues with eligibility and prescribed multiplicative death and retirement rates. Death-cum-Retirement Gratuity under NPS is payable on the same basis as under the old pension scheme; the Department provisionally allowed DCRG and pension/family pension for invalidation/disability retirement and in-service death at equivalent rates by OM dated 5.5.2009. Retirement gratuity requires a minimum of five years' qualifying service and is calculated at 1/4th of a month's Basic Pay plus Dearness Allowance per completed six monthly period, subject to a maximum of 161/2 months' Basic Pay and an overall monetary ceiling. Death gratuity to family is payable at specified multiplicative rates of emoluments based on length of qualifying service, subject to the maximum limit.