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Rule 65 - Delayed Pension Interest | KartavyaDesk

CCS Pension

Original Rule Text

(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.

What This Means

Rule 65(d) of the CCS (Pension) Rules, 2021 deals with the payment of interest on delayed pension and gratuity payments when a government employee retires with pending departmental or judicial proceedings. Imagine someone retires but can't get their full pension and gratuity immediately because of an ongoing investigation. This rule kicks in if, after the proceedings conclude, the government decides to release the pension and gratuity, even if the employee wasn't completely cleared of all charges. It ensures that the employee receives interest on the delayed payments to compensate for the time they were without their rightful dues.

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

Key Points

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

Practical Example

Mr. Sharma retired from the Ministry of Finance on January 1, 2024, but departmental proceedings were pending against him. He received a provisional pension. The proceedings concluded on July 1, 2024, and while not fully exonerated, the competent authority ordered the release of his full pension and gratuity on August 1, 2024. However, the actual payment was made on November 15, 2024. According to Rule 65(d), interest will be calculated on the retirement gratuity and any pension arrears from November 1, 2024 (three months after the order date) until November 15, 2024, the date of payment.

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

Frequently Asked Questions

What happens if the employee is fully exonerated? Does Rule 65(d) still apply?
No, Rule 65(d) specifically applies when the employee is *not* fully exonerated but the government still decides to release the pension and gratuity. If fully exonerated, different rules regarding timely payment and interest may apply.
From when is the interest calculated?
The interest is calculated 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.
Does this rule apply to family pension?
Rule 65(d) specifically addresses retirement gratuity and arrears of pension for the *government servant*. Rules regarding family pension are covered elsewhere in the CCS (Pension) Rules, 2021.
What is the rate of interest applicable under this rule?
The rate of interest is usually the same as the rate applicable to General Provident Fund (GPF) deposits, but refer to the latest government orders for the precise applicable rate.

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

According to Rule 65(d) of the CCS (Pension) Rules, 2021, under what circumstances is interest payable on delayed retirement gratuity and pension arrears?

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