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Centre Clarifies Pension Rules For Employees’ Last Working Day: What You Need To know | Business News

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Day of Retirement or Death to Be Counted as Part of Leave or Suspension, Says Centre

Day of Retirement or Death to Be Counted as Part of Leave or Suspension, Says Centre

The Centre has clarified how the last working day of a government employee will be treated for a pension and service record purpose under the Central Civil Services (Pension) Rules, 2021.

The Department of Pension & Pensioners’ Welfare released an Office Memorandum (OM) on claims to pension or family pension under Central Civil Services (Pension) Rules 2021.

According to rule 5 of CCS (Pension) rules 2021, the day on which a government servant retires or is retired or is discharged or is allowed to resign from service, will be treated his/her last completed working day.

Moreover, the death of death will also be treated as a completed working day, it said, adding the pension or family pension will be calculated based on this provision.

“…as per the provisions of Rule 5 of CCS(Pension) Rules 2021, any claim to pension or family pension shall be regulated by the provisions of these rules in force at the time when a Government servant retires or is retired or is discharged or is allowed to resign from service or dies, as the case may be,” as written in the Office Memorandum.

What Happens If Employees Was On Leave At Time Of Retirement?

The OM also specified that if the government servant immediately before his retirement or death was absent from duty on leave or was under suspension, the day of retirement or death will be part of such leave or absence or suspension.

Since the last day is part of leave or suspension, it doesn’t count as an active duty day.

If an employee dies while on leave or under suspension, that day will still be part of the same leave or suspension period — not treated as an additional “working” day before death.

Why Does This Clarification Matter?

For every government employees, pension is calculated based on completed service. This OM clarifies on the last working day, ensuring no extra day is added wrongly while calculating a person’s pension.

Varun Yadav

Varun Yadav

Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More

Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More

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