No. - 57/03/2022-P&PW(B/8361
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Pension and Pensioners' Welfare
***
3 Floor, Lok Nayak Bhavan, Khan Market,
New Delhi, Dated the 26" October, 2022
OFFICE MEMORANDUM
Subject: Options under Central Civil Services (Implementation of National Pension System ) Rules, 2021 to avail benefits under old pension scheme on death of Government servant covered under National Pension System during service or his discharge from service on account of invalidation or disablement -reg.
The undersigned is dirccted to say that Department of Pension and Pensioners Welfare has notified the Central Civil Services (Implementation of National Pension System) Rules, 2021 to govern service related matters of Central Government civil employees covered under National Pension System. Rule 10 of these rules deals with option to be exercised by every Central Government employee covered under National Pension System for availing bencfits under National Pension System or old pension scheme in the event of death of Government servant during serVIce or his discharge on the ground of invalidation or disablement.
2. In accordance with rule 10 of the Central Civil Services (Implementation of National Pension System) Rules, 2021, every Government servant covered under the National Pension System shall, at the time of joining Government service, exercise an option in Form 1 for availing benefits under the National Pension System or under the
Central Civil Service (Pension) Rules or the Central Civil Service (Extraordinary
Pension) Rules in the event of his death or boarding out on account of disablement or
retirement on invalidation. Government servants, who are already in Government
service and are covered by the National Pension System, shall also exercise such option.
3. The option shall be exercised to the Head of Office who will accept the same after verifying all the facts submitted therein and place it in the service book. A copy of the option shall be forwarded by the Head of Office to the Central Record keeping Agency through the Drawing and Disbursing Officer and the Pay and Accounts Officer for their record. The Pay and Accounts Officer shall also make suitable entry
in the online system indicating the details regarding the option exercised by the Government servant.
4. Every Government servant shall, along with the option in Form 1, also submit details of family in Form 2 to the Head of Office. The Head of Office shall, on receipt of the Form 2, acknowledge receipt of the Form 2 and all further communications received from the Government scrvant in this behalf, countersign it indicating the date of receipt and get it pasted on the service book of the Government servant concemed.
5. The Head of Office on receipt of communication from the Government servant Tegarding any change in the size of family shall also incorporate such a change in Form 2.
6. The option exercised may be revised at any number of times by the Subscriber before his retirement by making a fresh option intimating his revised option to the Head of Ofice. On receipt of the revised option, the Head of Office and the Pay and Accounts Officer shall take further action as mentioned above.
A Subscriber who is discharged on invalidation or disability shall be given an opportunity to submit a fresh option at the time of such discharge. Where such Subscriber does not exercise a fresh option or is not in a position to exercise fresh option at the time of discharge, the option alrcady cxercised by the Subscriber shall become operative. Where no option was exercised by the Subscriber and the Subscriber is not in a position to exercisc an option at the time of discharge, his case will be regulated in accordance with para 9 below.
7. In the case of death of a Subscriber while in service, the last option exercised by the deceascd Subscriber before his death shall be treated as final and the family shall have no right to revise the option.
8. Where a Subscriber who did not exercise an option and dies before completion of
service of fifteen years or within three years of the notification of Central Civil
Services (Implementation of National Pension System) Rules, 2021, his family will be
granted family pension in accordance with the provisions of the Central Civil Services
(Pension) Rules or the Central Civil Services (Extraordinary Pension) Rules, as the
case may be, as a default option.
9. Where a Subscriber is discharged from Government service on invalidation or
disability before completion of service of fifteen years or within three years of the
notification of thesc rules without exercising an option, and is also not in a position to
exercise an option at the time of discharge, he will be granted invalid pension or
disability pension in accordance with the provisions of the Central Civil Services
(Pension) Rules or the Central Civil Services (Extraordinary Pension) Rules as the
case may be, as default option;
10. In all other cases, where no option was exerciscd by the Subscriber, the claim
of the Subscriber on discharge from the service and that of the family on death of the
Subscriber, shall be regulated in accordance with the Pension Fund Regulatory and
Development Authority (Exits and Withdrawals under National Pension System)
Regulations, 2015, as default option.
11. In cases where the option exercised by the deceased Subscriber or the default
option for benefit under the Central Civil Services (Pension) Rules or the Central Civil
Services (Extraordinary Pension) Rules becomes infructuous on account of non-
availability of an eligible member of the family for grant of family pension under the
Central Civil Services (Pension) Rules or the Central Civil Services (Extraordinary Pension) Rules, such option would be deemed to have become invalid and the benefits
admissible under the National Pension System shall be granted to the legal heir(s) of
the employee in accordance with the Pension Fund Regulatory and Development
Authority (Exits and Withdrawals under National Pension System) Regulations, 2015.
12. Copy of Form 1 and Form 2 are also enclosed.
13. All Ministries/Departments are requested that the above provisions regarding
option to be exercised under Central Civil Services (Implementation of National
Pension System) Rules, 2021 may be brought to the notice of the Government
employees covered under NPS, Head of Offices and personnel dealing with the NPS
matters in the Ministry/ Department and attached /subordinate offices thereunder, for
strict implementation.
S. Chakrabard)
Under Secretary to the Govt. of India
Encl. as above.
To
All Ministries/Departments/Organisations,
(As per standard list)
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