Rule 20 - Military Pension Refund
Original Rule Text
20. Counting of military service rendered before civil employment.- (1) A Government servant, who after having rendered military service, was re-employed in a civil service or post on or before 31st December, 2003 and who on such reemployment, in accordance with an option exercised under the Central Civil Services (Pension) Rules, 1972, ceased to draw his pension and refunded or agreed to refund-
(i) the pension already drawn; and
(ii) the value received for the commutation of a part of military pension; and
(iii) the amount of retirement gratuity including service gratuity, if any;
shall count previous military service, as qualifying service.
Explanation.-1 In accordance with the Central Civil Services (Pension) Rules, 1972, for counting past military service under the relevant rule,
(i) the pension drawn prior to the date of re-employment was not required to be refunded.
(ii) the element of pension which was ignored for fixation of his pay including the element of pension which was not taken into account for fixation of pay on re-employment was not required to be refunded by him,
(iii) the element of pension equivalent of gratuity including the element of commuted part of pension, if any, which was taken into account of fixation of pay was required to be set off against the amount of retirement gratuity and the commuted value of pension and the balance, if any, was required to be refunded by him.
Explanation.-2 A Government servant, who had rendered military service and who on re-employment in a civil service or post on or before 31st December, 2003, had opted, in accordance with Rule 19 of the Central Civil Services (Pension) Rules, 1972, to continue to draw the military pension or retain gratuity received on discharge from military service, his former military services shall not count as qualifying service under these rules.
Explanation.-3 A Government servant, who had rendered military service after joining that service after 31st December, 2003, shall, on re-employment in a civil service or post, continue to draw the military pension or retain gratuity received on discharge from military service and on re-employment in a civil service or post, he shall be covered by the rules governing the National Pension System.
(2) A Government servant, who had exercised the option referred to in sub-rule (1), was required to refund the pension, bonus or gratuity received in respect of his earlier military service, in monthly instalments not exceeding thirty-six in number, the first instalment beginning from the month following the month in which he exercised the option and in the case of such Government servant, the right to count previous service as qualifying service shall not revive unless the whole amount has been refunded.
(3) In the case of a Government servant, who, having elected to refund the pension, bonus or gratuity, dies before the entire amount is refunded, the unrefunded amount of pension or gratuity shall be adjusted against the death gratuity which may become payable to his family.
(4) Where an order was passed under the Central Civil Services (Pension) Rules, 1972 allowing previous military service to count as part of the service qualifying for civil pension, the order shall be deemed to include the condonation of interruption in service, if any, in the military service and between the military and civil services.
(5) The pension and gratuity for the service rendered after re-employment in civil service or post shall not be subject to any limitation with reference to the pension and gratuity drawn by the Government servant in respect of the military service.
What This Means
Rule 20(2) of the CCS (Pension) Rules, 2021 deals with a specific situation where a government employee previously served in the military and received pension, bonus, or gratuity for that service. If this employee later joins the civil service and chooses to count their prior military service towards their civil service pension, they need to repay the benefits they received from their military service. This rule ensures that the employee doesn't receive double benefits for the same period of service.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Applies to government servants who previously received pension/gratuity for military service.
- 2If the government servant opts to count prior military service towards civil service pension, they must refund the military pension/gratuity.
- 3The refund can be made in monthly installments, not exceeding 36.
- 4The right to count previous military service as qualifying service only revives after the full amount is refunded.
- 5The first installment begins the month following the month the option is exercised.
Practical Example
Mr. Rajesh Kumar, after serving in the Indian Army for 15 years and receiving a gratuity of ₹5,00,000, joined the Ministry of Finance as a Section Officer. He decided to exercise his option under Rule 20(1) to count his military service towards his civil service pension. According to Rule 20(2), Mr. Kumar needs to refund the ₹5,00,000 gratuity he received. He chooses to repay it in 36 monthly installments. His first installment will be deducted from his salary the month following the month he officially elected to count his military service. Until the full ₹5,00,000 is repaid, his military service will not be considered qualifying service for his civil service pension.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Cross References
Frequently Asked Questions
What happens if I don't refund the military pension/gratuity?▼
Can I choose to not count my military service and keep the pension I received?▼
What is the maximum number of installments allowed for refunding the amount?▼
When does the first installment start?▼
Does this rule apply to all government employees?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Test Your Knowledge
Question 1 of 3
A Government servant who previously received a military pension opts to count that service towards their civil service pension. According to Rule 20(2) of the CCS (Pension) Rules, 2021, what is the maximum number of monthly installments allowed for refunding the military pension?