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Now the hassle of scheduling office days to calculate pension is over. The government has made it very clear as to what will be considered as an employee’s last day in office. The government has implemented it under the Central Civil Services (Pension) Rules 2021. Pension or family pension will be calculated on this basis.
New DelhiThe Central Government has resolved an important and long standing dilemma for government employees. Now it has been made clear that the day of retirement, resignation or death of any government employee will be considered as part of his service period. That means, the day an employee retires, that day will also be considered as his full working day. The government has implemented this decision under the Central Civil Services (Pension) Rules 2021 and the pension or family pension will be calculated on this basis.
The Department of Employees Pension and Pensioners Welfare (DoPPW) has issued an office memorandum clarifying that in case of retirement, resignation, removal from service or death, the same day will be considered as the last working day of the employee. This means that that day will be included in the service period and will be counted in the calculation of pension. Earlier there was a question whether the date of retirement or death would be included in the service period or not, but now with this rule that confusion has ended.
What will happen in cases of leave or suspension
The government has also clarified that if an employee is on leave or is under suspension before retirement or death, that day will be considered as part of the period of the same leave or suspension. For example, if an employee retires or dies while on leave, that day will not be considered a separate working day, but will be counted among the leave days. This system has been kept so that there is no double counting in case of leave or suspension.
Why was this explanation necessary?
The calculation of pension of employees is based on their total service period. In such a situation, if it is not clear whether the last day of service will be counted or not, then there is confusion in the calculation of pension. Because of this, many times disputes would arise in determining the amount of pension or family pension. Now with this new rule of the government, it has become clear that the last day will also be a part of service, which will bring transparency and uniformity in the pension process.
What will be its effect?
Experts believe that this step is not only in the interest of government employees but is also a relief for the dependents receiving family pension. This rule will provide full rights to every employee working till the day of retirement. Also, the possibility of any technical deduction or dispute in pension determination will be eliminated.
