Sunday, May 5, 2013

HAPPY NEWS FOR BANK STAFF JOINED AFTER 01.04.2010!

Gratuity Pay under New Pension System


                        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:

Sl. No.
Length of Qualifying Service
Rate of Death Gratuity
1.
Less than one year
2 times of emoluments
2.
One year or more but less than 5 years
6 times of emoluments
3.
5 years or more but less than 20 years
12 times of emoluments
4.
20 years or more
Half of emoluments for every completed six monthly period of qualifying service subject to a maximum of 33 times of emoluments.

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

                        This was stated by Minister of State for Finance, Shri NamoNarain Meena, in written reply to a question in the Lok Sabha today.
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HENCE, BANK EMPLOYEES COVERED UNDER NEW PENSION SCHEME ARE ALSO ELIGIBLE FOR GRATUITY (MAX.10,00,000/-) . ONLY CALCULATION METHOD WILL VARY FOR BANK EMPLOYEES.
(PREVIOUSLY IT WAS SAID THAT THIS SECTION OF EMPLOYEES ARE NOT ENTITLED FOR GRATUITY)
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Go to the following link and change date as 03.05.2013 on the left side,
 you will find this article under head "Gratuity Pay  under New Pension System "
http://pib.nic.in/newsite/erelease.aspx?relid=0
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4 comments:

Santanu(Manager-BoB) said...

I didn't find anything anywhere esle on this matter...n nothing from bank unions also...thus little confused about the authenticity/reach of the said post for us those joined after 01-04-2010...plz anyone having any info regarding the same kindly post it...

Kumar Periyasamy said...

Go to the following link and change date as 03.05.2013 on the left side,
you will find this article under head "Gratuity Pay under New Pension System "
http://pib.nic.in/newsite/erelease.aspx?relid=0

Anonymous said...

In the mentioned note it was no where mentioned that it applicable to bank employees..it was only mentioned about central gov. servants......kindly clarify is it correct that it is applicable to bank employees who are covered under NPS also.

Anonymous said...

The 10th bipartite settlement which falls due since november'2012 is still pending.We boast of our's is a civilised , democratic,soverign country of the third world.Yes its a burning example of that.Shame...shame.The new government is also so reluctant as the earlier one.Now lets see who will bell the cat....is it either IBA at first or the government??