The government has come out with new NPS guidelines with regards to the payment of lump sum compensation to staff covered beneath National Pension System on retention in government service inspite of disablement attributable to government service. This is in accordance with Rule 9(3) of CCS (Extra Ordinary Pension) Rules, 1939.
On the introduction of National Pension System with impact from 01.01.2004, amongst other people, the CCS (Pension) Rules, 1972 and CCS (EOP) Rules, 1939 have been amended to the impact that the provisions of the Rules would not be applicable to the government staff appointed on or right after 01.01.2004.
However, taking into consideration the hardships getting faced by the staff covered beneath National Pension System and their households, orders have been issued for provisionally extending the advantages of invalid pension, disability pension and family members pension beneath CCS (Pension) Rules and CCS (EOP) Rules on the discharge of such staff from service on invalidation/disability or on their death through service.
Representations and references have been received for extending the advantage beneath Rule 9(3) of CCS (EOP) Rules, to the staff appointed on or right after 01.01.2004 and covered beneath NPS.
In accordance with Rule 9(3) of CCS ( EOP) Rules, applicable to Government staff appointed ahead of 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 worth of the disability element of disability pension, with reference to the commutation table in force from time to time.
The broad-banding beneath Rule 8(3) of these guidelines is, having said that , not applicable in such instances. In accordance with the OM dated 05.05.2009, the advantage of disability pension is out there to the staff covered beneath the National Pension System only on getting boarded out on account of the disability attributable to Government service, having said that, the advantage beneath Rule 9(3) of the CCS ( EOP) Rules, is presently not out there to an employee covered beneath NPS, if he is retained in service in spite of a disablement attributable to Government service.
NPS New Rule
It has now been decided that if a Government employee appointed on or right after 01.01.2004 and covered beneath NPS is disabled, he shall also be eligible to get 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 will take impact from 01.01.2004. The instances for payment of lump sum compensation to the staff covered beneath NPS and who have been retained in service in spite of disability attributable to Government service on or right after 01.01.2004 may perhaps be processed accordingly.