Rule 65 - Delayed Pension Interest

65. Interest on delayed payment of gratuity, pension and family pension.- (1) In all cases where provisional pension or provisional family pension or provisional gratuity has not been sanctioned in accordance with these rules or where the payment of pension or family pension or gratuity has been authorised later than the date when its payment becomes due, including in the cases of retirement otherwise than on superannuation, 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 in accordance with the instructions issued from time to time:

Provided that no interest under this sub-rule shall be payable 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.

(2) Every case 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, the said Secretary or the officer authorised by him shall sanction payment of interest.

(3)

(a) The administrative Ministry or the Department or the office shall issue sanction for the payment of interest after the Secretary or the officer authorised by him has sanctioned the payment of interest under sub-rule (2).

(b) The payment of interest on delayed payment of gratuity or pension or family pension shall be paid within two months from the date on which payment of interest has been sanctioned by Secretary or the officer authorised by him.

(4) In all cases where the payment of interest has been sanctioned by the Secretary of the administrative Ministry or the Department or the officer authorised by him, such Ministry or the Department or Office shall fix the responsibility and take disciplinary action against the Government servant or servants who are found responsible for the delay in the payment of gratuity or pension or family pension on account of administrative lapses:

Provided that payment of interest under sub-rule (3) shall be made without waiting for the outcome of the disciplinary proceedings, if any.

(5) Without prejudice to the generality of the provisions of sub-rule (1), 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 retires 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 a 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 in accordance with clause

(c) of sub-rule (4) of rule 8 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 in accordance with clause

(c) of sub-rule (5) of rule 8 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 to whom provisional pension was paid and gratuity was not paid on retirement in accordance with clause

(c) of sub-rule (5) of rule 8 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 of 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, as the case may be, up to the date of payment of arrears of pension or gratuity.

What This Means

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

Key Points

• 1Applies when provisional pension was paid, and retirement gratuity was withheld due to pending proceedings.
• 2Covers situations where the competent authority decides to release pension and gratuity despite the employee not being fully exonerated.
• 3Interest is payable on retirement gratuity and arrears of pension.
• 4Interest calculation starts three months after the order for payment of pension and gratuity is issued.
• 5Interest is paid up to the date of actual payment of pension and gratuity.

Practical Example

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

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