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Life Insurance & Pension Plan

DoPPW Clarifies Pension Rules: Last Completed Working Day Defined For Government Employees

The DoPPW issued an OM to provide clarity about what should be considered the last working day for pension calculation in case of retirement, resignation, discharge, or death

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DoPPW clarifies last working day rules for pension claims Photo: AI Generated
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  • DoPPW issued an office memorandum recently to provide clarity on the last completed day of work for pension calculation

  • Rule 5 of the CCS (Pension) Rules 2021 defines claims for pension and family pension

  • Absences before retirement affect the last working day

The Department of Pension and Pensioners' Welfare (DoPPW) recently issued an Office Memorandum (OM) to clarify claims related to pension and family pension under the Central Civil Services (Pension) Rules, 2021. The OM clarifies pension rules related to the last completed working day when a government servant retires, resigns, is discharged, or dies, depending on the day one, for pension calculation.

Rule 5 of the Central Civil Services (Pension) Rules 2021 is at the heart of the clarification. The OM clarifies that any claim to pension or family pension must be regulated by the provisions of the rules which are in force at the time of retirement, resignation, discharge, or in case of the employee's death. It stresses the applicability of the point in time when these events occur to define the entitlements accurately.

According to the OM, issued on October 30, 2025, "The day on which a Government servant retires or is retired or is discharged or is allowed to resign from service, as the case may be, shall be treated as his/her last completed working day and the date of death shall also be treated as a completed working day."

Simply, it provides clarity on the definition of a completed day of service for calculating pension. Per the OM:

• The day when a government employee retires, is retired, is allowed to resign, or is discharged from duties, is to be treated as such employee’s last completed working day.

• In case of the death of the employee, the date of death is treated as a completed working day for the purpose of claims and pension calculation.

However, it further explains that "In case where the Government servant immediately before his retirement or death was absent from duty on leave or otherwise or was under suspension, the day of retirement or death shall be part of such leave or absence or suspension."

This OM is another addition to the clarifications DoPPW has been issuing lately regarding different types of pension-related issues. Recently, it has issued clarification regarding the extended coverage of family pension if an employee has two wives, and mandatory submission of a life certificate by both parents receiving family pension at the enhanced rate.

The focus on providing clarity on pension rules has come at a time when other administrative actions are also underway, such as the formation of the 8th Central Pay Commission (CPC), revision in the dearness allowance and dearness relief rates, among others.

This OM reinforces the objective of the current pension and family pension rules remaining robust and adhered to. The clear interpretation of the last working day is an effort to make the employees' transitioning to pensioner status smooth without any administrative delay.

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