The Central Government has resolved a significant and long-standing confusion for government employees. It has now been clarified that the date of retirement, resignation, or death of any government employee will be included in their service period. This means that the day an employee retires will also be considered a full working day.
This decision has been implemented under the Central Civil Services (Pension) Rules 2021, and will be used to calculate pension or family pension from now on. This decision has ended years of confusion among employees regarding whether the date of retirement or death will be included in the service period.
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Government Clarification
The Department of Employees’ Pension and Pensioners’ Welfare (DoPPW) recently issued an office memorandum clarifying that in the event of retirement, resignation, removal from service, or death, the relevant date will be considered the employee’s last working day. This means that that day will also be counted as part of the service period and will play a role in pension calculation.
Previously, it was unclear whether the last day should be included in the service period, which often led to disputes in pension determination. Now, this rule has eliminated this uncertainty.
What will happen in case of leave and suspension?
The government has also clarified that if an employee is on leave or suspended before retirement or death, that day will not be considered a separate working day. For example, if an employee retires or dies during leave, that day will be considered part of the leave period.
This arrangement has been made to prevent double-counting of the same day in case of leave or suspension, and to avoid any technical confusion or errors in pension calculation.
Why was it necessary to clarify this rule?
The pension of government employees depends entirely on their total service period. In such a situation, if it is not clear whether the last day will be counted as part of the service period, it creates inequality and confusion in determining the pension amount.
At times, this dispute escalated to the point where even the determination of the family pension was affected. This new government decision now eliminates that problem and brings transparency and equality to the pension process.
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Benefits to Employees and Families
Experts believe that this decision is a positive and far-reaching step in the interests of government employees. It will not only benefit retiring employees but will also provide relief to dependents receiving family pensions.
Now, every employee will receive full entitlement to their service up to the date of retirement. Furthermore, the possibility of any technical errors or disputes in pension calculations will be eliminated. This will simplify and make the pension process simpler and transparent in the future.