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Interest on delayed payment of gratuity, pension and family pension under CCS (Pension) Rules, 2021: DoP&PW

Interest on delayed payment of gratuity, pension and family pension under Central Civil Services (Pension) Rules, 2021: DoP&PW OM dated 11.10.2022

No. – 28/91/2022 -P&PW(B)/8331
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Pension and Pensioners’ Welfare

3rd Floor. Lok Nayak Bhavan, Khan Market,
New Delhi, Dated the 11th October, 2022

OFFICE MEMORANDUM

Subject: Payment of Gratuity on death of a Government servant under Central Civil Services (Pension) Rules, 2021- reg.

The undersigned is directed to say that Department of Pension and Pensioners’ Welfare has notified the Central Civil Services (Pension) Rules, 2021 in supersession of the Central Civil Service (Pension) Rules, 1972. Rule 65 of the Central Civil Services (Pension) Rules, 2021 deals with payment of interest in delayed payment of gratuity, pension and family pension.

Read also: Nominations for payment of Gratuity under Central Civil Services (Pension) Rules, 2021: DoP&PW OM dated 11-10-2022

2. As per Rule 65 of the Central Civil Services (Pension) Rules, 2021, in all cases where provisional pension or provisional family pension or provisional gratuity has not been sanctioned in accordance with these rules or where authorisation of payment of pension or family pension or gratuity has been delayed, and it is clearly established that the delay in payment was attributable to administrative reasons or lapses, interest shall be paid on arrears of pension or family pension or gratuity at the rate and in the manner as applicable to General Provident Fund amount. However, if the delay in payment was caused on account of failure on the part of the Government servant or the pensioner or the member of the family of the Government servant to comply with the procedure laid down by the Government for processing the pension or family pension case, no interest shall be payable.

3 All cases of delayed payment of pension or family pension or gratuity (including provisional pension or family pension or gratuity) in respect of employees of a Ministry or Department and the employees of its attached and subordinate offices shall be considered by the Secretary of that Ministry or Department or any other officer, not below the level of Joint Secretary to the Government of India, authorised by him for this purpose, and where the Secretary or the officer authorised by him is satisfied that the delay in the payment of pension or family pension or gratuity was caused on account of administrative reasons or lapse, payment of interest shall be authorised by him.

4. The Department or Office shall also fix the responsibility and take disciplinary action against the Government servant(s) who are found responsible for the delay on account of administrative lapses. Interest shall be paid within two months from the date on which it has been sanctioned by Secretary or the officer authorised by him without waiting for the outcome of the disciplinary proceedings, if any.

Read also: Grant of Retirement Gratuity and Death Gratuity under Central Civil Services (Pension) Rules, 2021: DoP&PW OM dated 11.10.2022

5.The period for which interest shall be payable for the delay in payment of pension or gratuity shall be determined in the following manner, namely:-

(a) In the case of a Government servant who relives on superannuation, interest shall be payable from the date following the date of expiry of a period of three months from the date of retirement, up to the date of payment of arrears of pension or gratuity or both;

(b) In the case of a Government servant who retires or is retired otherwise than on superannuation or is absorbed in & public sector undertaking or an autonomous body or dies during, service or after retirement. interest shall be payable from the date following the date of expiry of a period of three months from the date of retirement or absorption or death, as the case may be, up to the date of payment of arrears of pension or gratuity:

(c) In the case of a Government servant to whom provisional pension was paid and retirement gratuity was not paid on retirement on account of departmental or judicial proceedings pending against him on the date of retirement and who is exonerated of all charges on conclusion of such departmental or judicial proceedings, interest shall be payable on retirement gratuity and arrears of pension, if any, from the date following the date of expiry of a period of three months from the date of retirement up to the date of payment of arrears of pension and gratuity:

(d) In the case of a Government servant to whom provisional pension was paid and retirement gratuity was not paid on retirement on account of departmental or judicial proceedings pending, against him on the date of retirement and despite him not having been fully exonerated of all charges on conclusion of such departmental or judicial proceedings, the competent authority decides to allow payment of pension and retirement gratuity, either in full or in part, interest shall be payable on retirement gratuity and arrears of pension, if any, from the date of expiry of a period of three months from the date on which the order for payment of pension and gratuity is issued by the competent authority up to the date of payment of pension and gratuity.

(e) In the case of a Government servant t0 whom provisional pension was paid and gratuity was not paid on retirement on account of departmental or judicial proceedings pending against him on the date of retirement and such departmental or judicial proceedings are dropped consequent on his death, interest shall be payable on arrears of pension, family pension and gratuity from the date of expiry of a period al three months from the date of death up to the date of payment of such arrears of pension, family pension and gratuity.

(f) Where arrears of pension or gratuity become payable to a Government servant on account of enhancement of the amount of pension authorised or the amount of gratuity paid on retirement consequent on retrospective revision of emoluments or liberalisation in the provisions relating to grant of pension or gratuity, interest shall be payable on arrears of pension or gratuity to the Government servant from the date of expiry of a period of three months from the date of issue of the order revising the emoluments or liberalising the provisions relating to grant of pension or gratuity the case may be, up to the date of payment of arrears of pension or gratuity.

Read also: Payment of Gratuity on death of a Government servant under Central Civil Services (Pension) Rules, 2021: DoP&PW

6. All Ministries/Departments are requested that the above provisions regarding payment of interest on delayed payment of gratuity, pension and family pension under Central Civil Services (Pension) Rules, 2021 may de brought to the notice of the personnel dealing with the pensionary benefits in the Ministry/Department and attached/subordinate offices thereunder, for strict implementation.

(S. Chakrabarti)
Under Secretary to the Govt. of India

To
All Ministries/Departments/Organisations.
(As per standard list)

interest-on-delayed-payment-of-gratuity-pension-and-family-pension

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