Gratuity to CPS Employees in AP- Details of Benifits

Gratuity to CPS Employees in AP- Details of Benifits

Ap Govt agrred to sanction Gratuity to CPS Employees in Andhra Pradesh gratuity-to-cps-employees-in-ap-details-benifits
G.O.Ms.No.653,dt:22.09.2004 Our State adopted the New Pension Scheme of Govt of India for the employees appointed on or after 01.09.2004
G.O.Ms.No.654 ,dt:22.09.2004 GPF rules will not apply to the employees under New Pension Scheme /Contributory Pension Scheme
10 % of (Pay + DA) be deducted every month salary towards employee contribution , and the equal amount be added by Govt. towards employer’s contribution
The fund will be transferred to PFRDA (Pension Fund Regulatory Development Authority). They in turn invest the amount in three Pension Funds. 10%(Pay+DA)Empl oyee Share 10%(Pay+DA)
Govt Share

  • 60 % paid to the Pensioner (Inclusive Taxes)
  • 100% Pension Wealth
  • Annuity Plans* shall be purchased with 40% fund.

Gratuity to CPS Employees in AP- Details of Benifits | Ap Govt agrred to sanction Gratuity to CPS Employees in Andhra Pradesh gratuity-to-cps-employees-in-ap-details-benifits

 Orders pertaining to Gratuity & Family Pension Chronologically

  1. In respect of employees retired on Invalidation/ Died, In 2009, Govt. of India issued orders by providing an option to the Employees/ Families of Deceased Employees to choose retirement benefits under Old Pension Scheme or New Pension Scheme.
  2. Accordingly GOAP also issued similar orders in 2010 vide Cir.Memo.No.422 . At that date exit guidelines under NPS were not finalized.
  3. In 2014 , Exit guidelines under NPS were notified. Orders in Memo. No. 422 were withdrawn in G.O.Ms.No.62, 2014.
  4. But in Govt. of India 2009 orders are continued in force from 2009 to till now.
  5. In 2016 Govt of India ordered that all NPS employees are eligible for Gratuity.
  6. Our Request is to adopt Govt of India Policy.

PFRDA Exit Guidelines under NPS/CPS (notified vide G.O.Ms.No.62

Upon retirement

60% shall be given to pensioner (after Income Tax)
40% shall be used to purchase Annuity Plans

UP on Death

100% Pension Wealth will be given to Family Members.

Premature Exit

80% shall be used to Purchase Annuity Plans
20% shall be given to Pensioner.

Gratuity to CPS Employees

Retirement Gratuity

Min Qualifying Service:  5 Years
Financial Benefit : Based on the length of Qualifying
Max Amount : Rs.12.00 lakhs

Death Gratuity

  1. 0-1 year service: 6 times/4(Pay +Day)
  2. 1-5 years service: 18 times/4(Pay +Day)
  3. 5-18 years service: 36 times/4(Pay +Day)
  4. 18 years service: 38/4(pay +day) Max amount: Rs.12.00 lakhs

Family Pension

This will be given to the Family members of the Employee/Pensioner. 3 Types
1. Enhanced Family Pension :
Min Qualifying Service:  More than 7 Years
Amount : 50% of Last Pay Drawn and allowances for seven years or 65 years
whichever is earlier.

2. Family Pension:
Min Qualifying Service:  One Year to 7 years.
After expiry of Enhanced Family Pension, Family Pension will be given.
Amount: 30% of Last Pay Drawn and allowances

3. Extra Ordinary Family Pension :
This Pension will be given to the Family members of the deceased employees who died while discharging his/her duties.
Amount:  Full Salary upto the normal age of retirement of the deceased
After age of retirement : 30% of Last Pay Drawn and allowances

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