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Rule 45 - Residuary Gratuity | KartavyaDesk

CCS Pension

Original Rule Text

(3) In case a Government servant, who, on retirement, became eligible for a service gratuity or pension, dies within five years from the date of his retirement from service including compulsory retirement as a penalty and the sums actually received by him at the time of his death on account of such gratuity or pension, together with the retirement gratuity admissible under sub-rule (1) and the commuted value of any portion of pension commuted by him are less than the amount equal to 12 times of his emoluments, a residuary gratuity equal to the deficiency may be granted to his family in the manner indicated in sub-rule (1) of rule 47.

What This Means

Rule 45 of the CCS (Pension) Rules, 2021, deals with a 'residuary gratuity' payable to the family of a government servant who dies within five years of retirement. Think of it as a safety net ensuring that the family receives a minimum financial benefit. If the total amount the employee received as pension, service gratuity, retirement gratuity, and the commuted value of pension (if any) is less than 12 times their last drawn salary (emoluments), the government will pay the difference as a residuary gratuity to the family. This rule applies even if the retirement was compulsory due to a penalty.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

  • •Applies when a retired government servant dies within 5 years of retirement.
  • •Ensures the family receives at least 12 times the last drawn emoluments.
  • •Considers all payments received by the employee: pension, gratuities, and commuted pension.
  • •The 'residuary gratuity' covers the difference between the total received and 12 times the emoluments.
  • •Applies even in cases of compulsory retirement as a penalty.

Practical Example

Mr. Sharma retired as a Section Officer with a last drawn salary of ₹60,000. He opted for a service gratuity and a portion of his pension was commuted. He received a retirement gratuity of ₹3,00,000 and the commuted value of his pension was ₹1,00,000. He died three years after retirement, having received a total of ₹2,00,000 as pension. His family is eligible for a residuary gratuity. 12 times his emoluments is ₹7,20,000 (12 x ₹60,000). The total amount received by Mr. Sharma and his family is ₹6,00,000 (₹3,00,000 + ₹1,00,000 + ₹2,00,000). Therefore, his family will receive a residuary gratuity of ₹1,20,000 (₹7,20,000 - ₹6,00,000).

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

What are 'emoluments' as referred to in Rule 45?▼
Emoluments generally refer to the basic pay, dearness allowance, and any other allowances specifically classified as emoluments for pensionary benefits, as defined under the CCS (Pension) Rules.
Who is considered 'family' for the purpose of receiving the residuary gratuity?▼
The definition of 'family' is provided in Rule 2(f) of the CCS (Pension) Rules, 2021. It typically includes spouse, children, dependent parents, and other specified relatives.
Is the residuary gratuity taxable?▼
Gratuity received by government employees is generally exempt from income tax, subject to certain limits. Consult the relevant income tax rules for specific details.
What documents are required to claim the residuary gratuity?▼
The family will typically need to submit a death certificate, proof of relationship, pension payment order (PPO) of the deceased, and an application form to the concerned department.
Does this rule apply to employees covered under the National Pension System (NPS)?▼
The applicability of this rule to NPS employees may vary. Refer to the specific rules and guidelines governing the NPS for central 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

Under CCS (Pension) Rules, 2021, Rule 45, within how many years of retirement must a government servant die for their family to be eligible for a residuary gratuity?

Related Rules

Rule 62CCS (Pension) Rules, 2021 - Rule 62Rule 19CCS (Pension) Rules, 2021 - Rule 19Rule 65CCS (Pension) Rules, 2021 - Rule 65Rule 68CCS (Pension) Rules, 2021 - Rule 68Rule 72CCS (Pension) Rules, 2021 - Rule 72

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