CHAPTER 20: SEPARATION

20.1. Policy
20.1.1. Retire a civil servant with dignity, respect and mutual
appreciation upon completing superannuation age.
20.1.2. Promote financial security to civil servant in retirement
through post retirement benefits/schemes.
20.1.3. Provide appropriate separation schemes.

20.2. General Rules

The RCSC shall adopt the following strategies:
20.2.1. Superannuation
[Link]. A civil servant shall retire from service on
completing the following superannuation age.

Sl. Age of
Position Category
No. Superannuation

Executive and Specialist Position

i. 60 years
Category

Professional and Management Position

ii. 58 years
Category

Supervisory & Support Categories

iii. a. SS4 – SS1 58 years

b. S5 – S1 56 years

iv Operational category 56 years

[Link]. The Agency shall have the authority to issue

separation orders for civil servants of P1 and
below upon completing superannuation age.

[Link]. The date of birth recorded in the service record at

the time of the initial appointment of a civil
servant shall be the basis for deciding the date of
retirement.
 [Link]. Unless otherwise specifically provided by this
Rule, the actual retirement on superannuation
shall be effective on the first day of the month
following the actual date of retirement. The
gratuity and other post retirement benefits shall
be computed as on the effective day of
retirement.

[Link]. No civil servant shall be retained in regular or

contract service beyond the age of
superannuation. Agency shall notify the civil
servants six months prior to superannuation.

[Link]. An Agency shall issue the Office Order of

superannuation for personnel as per the
delegation of authority to accept resignation.

20.2.2. Resignation
[Link]. The powers to accept voluntary resignation
submitted by a civil servant shall be vested with
the following authorities respectively, based on
the Position Category of the civil servant:

Sl.
Position Category Authority
No

i. ESC RCSC

HR Committee of
ii. PMC, SSC and OC
theAgency

[Link]. A civil servant, subject to other rules, on his own

may seek voluntary resignation from service after
giving notice of at least one month in advance.

[Link]. A civil servant who fails to give the prescribed

period of notice of resignation shall be liable to
pay an amount equal to the basic pay for the
prescribed period of notice.
 [Link]. A civil servant shall resign from service prior to
standing as a candidate for any election
conducted under the electoral laws of the
Kingdom or holding any paid or unpaid post in
any political party. He shall not be entitled to re-
employment in the regular Civil Service.

[Link]. The authority that recommends and accepts the

resignation shall ensure that the resigning civil
servant has complied with the conditions of
service laid down in the training, secondment
and other rules.

[Link]. A civil servant shall submit resignation to a

competent authority, as per the delegation of
authority, through the respective Supervisor or
Head of the Agency for approval.

[Link]. In Public interest, HR Committee may withhold a

voluntary resignation up to a maximum period of
six monthtsfrom the notified date.

[Link]. A civil servant who suffers from prolonged

illness and unable to perform regular duties
for three years or more, shall be compulsorily
retired from the service with full retirement
benefits.

[Link]. A civil servant shall be entitled for one month

preparatory leave before superannuation age.
[Link]. An ex-civil servant who exited from the Civil
Service on superannuation, compulsory
retirement or termination shall not be eligible to
apply for any form of re-employment in the Civil
Service.

20.2.3. Early Retirement Scheme (ERS)

 [Link]. The objective of the ERS is to facilitate civil
servants to retire early.
[Link]. Eligibility:
A civil servant shall be eligible for ERS, if they
fulfill any of the following criteria:
a) Is 51 years and above;
b) Is below 51 years of age fulfilling the following
conditions:
i. A civil servant has served for a minimum
of 20 years
ii. A civil servant does not possess a
minimum of Bachelor Degree; and
iii. A civil servant has no obligations to the
Government.
c) Has exhausted admissible Medical Leave
of……..3years??;
d) Has completed tenure as a Govt Secretary
prior to attaining superannuation age.

20.2.4. Disqualification

A civil shall not be eligible for ERS, if:

a) He has impending disciplinary or corruption case (s); and
b) His service is determined to be required by the
Government based on scarcity of such skills and
expertise.

[Link]. The working Agency shall process and provide

the ERS benefits, less other adjustment with the
Agency, to the employee.

[Link]. The HR Committee/Council of the Agency

concerned shall accept, scrutinize and accord
 approval for the decentralised positions for
availing ERS benefits.

[Link]. The ERS benefits to be granted shall be a one-

time lump sum compensation based on the
following calculation:
a) For a civil servant 51 years and above shall
be entitled to three months’ basic salary for
every remaining year of service to
superannuation subject to a maximum of 18
months’ basic salary;
b) For a civil servant below 51 years of age shall
be entitled to two month’s basic salary for
every remaining year of service to
superannuation subject to a maximum of 18
months’ basic salary.

[Link]. Besides the ERS, the above categories will be

eligible for other regular retirement benefits as
per the Civil Service Rule in force.

[Link]. Six months or more shall be considered a full

year of service for the purpose of calculating
the total number of ‘years’ to be credited,
provided a civil servant has served a minimum
of 10 [Link] active service.

20.2.5. Special Retirement Scheme

The Commission in consultation with the Government may

implement periodic Special Retirement Scheme to right-size
and address redundancy in order to enhance efficiency and
performance in the Civil Service.

20.2.6. Compulsory Retirement

RCSC/Agency may compulsorily retire a civil servant:

[Link]. On disciplinary grounds in accordance with
Section 19.2.6 under Administrative Discipline;
and
 [Link]. A civil servant shall be compulsorily retired from
service with post service benefit if he or she is
convicted by the court of law for a criminal
offence of misdemeanor and above for offences
not related to discharge of official functions.

20.2.7. Termination

RCSC/Agency may terminate a civil servant:

[Link]. A civil servant shall be terminated from service if
he or she is convicted by the court of law for a
criminal offence of misdemeanor and above for
offences related to discharge of official functions.

[Link]. On disciplinary grounds in accordance with Section

19.2.6 under Administrative Discipline.

20.2.8. Agency Severance

The services of a civil servant shall be separated from the

Civil Service upon corporatisation/privatisation of his
Agency, unless his service is required in the Civil Service. [U1
-

20.3. Retirement Benefits

20.3.1. For the purpose of payment of salary in event of death of the
civil servant, the remuneration shall be paid for the entire
month.

20.3.2. Gratuity
[Link]. Eligibility
a) A civil servant who is separated from service
shall be entitled to receive gratuity after
rendering a minimum of 10 years of service,
except, those on contract and death cases
while in service.

b) A civil servant terminated from service shall

not be eligible for gratuity.
[Link]. Amount
The amount of Gratuity payable under this Rule
shall be computed based on the last basic pay
drawn times the number of completed years of
service.

However, service of six months and above shall

be considered as a complete year for the purpose
of calculating gratuity, provided a civil servant
has served a minimum of 10 years active service.

[Link]. Ceiling
The ceiling on quantum of Gratuity shall be
revised by the Royal Government from time to
time.

[Link]. Conditions
Gratuity shall be paid to a civil servant by the
Agency only upon production of an Audit and
Tax Clearance Certificates confirming that the
retiree has no outstanding advances or loans
from financial institution to which the Agency
was the guarantor.

[Link]. Recovery
a) The amount due from a civil servant, if any,
at the time of retirement or demise and not
recoverable otherwise, shall be recovered
from the Gratuity payable to the incumbent,
his nominees or other legal heir to whom
such payments may be released.

b) In case of demise of a civil servant, the

recovery or penalty against the service
obligation shall be treated null and void.

c) Any outstanding in terms of training

obligation as defined at Section 97.36 of the
 CSAB 2010 and as per Section [Link] of
this Rule shall be recovered from the
candidate’s gratuity and other retirement
benefits payable to him.

[Link]. Authority
Gratuity shall be sanctioned to a civil servant by
a competent authority to which such powers
are delegated in the financial manual after
completing the required formalities and the
sanction shall be accorded in the prescribed
form.

20.3.3. Pension
[Link]. A civil servant who has served a minimum of 10
years in the service and made 120 monthly
contributions to the pension account or retires
from service on completing Civil Service
retirement age, shall be entitled to monthly
pension benefits, as per the National Pension and
Provident Fund Rules and Regulations.
[Link]. If a civil servant is terminated, he shall not
be eligible for the pension benefits but
entitled to refund of his contributions made to
the pension account.

20.3.4. Provident Fund

[Link]. A civil servant who has served for a minimum of
one year and retired from service, shall be
entitled to the provident fund benefits, both the
employee and employer contributions together
with returns thereon credited to pension account
as per the National Pension and Provident Fund
Rules and Regulations.

[Link]. A civil servant whose services are terminated

shall be entitled only to his contribution together
 with returns credited thereon to provident fund
account.

[Link]. Monthly Pension and Provident Fund.

[Link]. The amount of monthly pension benefits and

the Provident Fund payable to retired civil
servants under the National Pension and the
Provident Fund benefits shall be subject to the
provisions in the National Pension and
Provident Fund Rules and Regulations.

[Link]. Conditions
A copy of the order relieving a civil servant on
separation from Civil Service shall be endorsed to
the National Pension and Provident Fund, which
shall form the basis for the National Pension and
Provident Fund to sanction the pension and
provident fund benefits.

[Link]. Recovery
The amount accumulated to a member under
the National Pension and Provident Fund shall
not be liable to attachments, garnishments, levy
or seizure, except to pay any dues of the member
payable to the National Pension and Provident
Fund or to the employer.

[Link]. Authority
Pension and Provident Fund Benefits shall be
sanctioned to a retired civil servant by the
National Pension and Provident Fund in
 accordance with the National Pension and
Provident Fund Rules and Regulations.

20.3.5. Verification of Service

The services of a civil servant claiming gratuity, pension and

provident fund benefits under this Rule shall be verified with
respect to the service book of the civil servant and certified in
the prescribed form by a designated authority.

20.3.6. Travel Allowance

A civil servant who leaves the service for any reason, other
than termination, shall be entitled to Travel Allowance of an
amount equal to one month's last basic pay of the civil
servant.

20.3.7. Transfer Grant

A civil servant who leaves service for a reason other than

termination shall be entitled to the transfer grant of one-
month basic pay.

20.3.8. Transport Charge of Personal Effects

A civil servant, who leaves service for a reason other than

termination, shall be entitled to receive transport of
personal effects as per ANNEXURE 14/1 (5) of Chapter 14.

20.3.9. Group Insurance Scheme A civil servant who leaves service

shall be entitled to the benefit of Employees Group
Insurance Scheme.

20.3.10. Benefits Payable to the Family

[Link]. If a civil servant expires while in service
including probation period, his family/legal
nominee shall be entitled to all retirement
benefits.
 [Link]. If a civil servant is required to resign due to
illness or disability incurred while in service,
he/his family/legal nominee shall be
entitled to all retirement benefits.

20.3.11. Personal Pay: The personal pay, if any as per Section

[Link], shall be clubbed with the basic pay for calculation
of retirement benefits (gratuity, TA, TG).

20.4. Incidence of Payment

Gratuity and other retirement benefits shall be paid to the retired civil
servant
20.4.1. Gratuity and other terminal benefits shall be claimed by a
civil servant from the Agency from which he received his last
pay.

20.4.2. For a civil servant who has served both in a Government

Agency and public sector corporation, the gratuity shall be
paid for the entire service period.

20.4.3. In the event the annual increment is due for a civil servant
on the day following the date of retirement, the annual
increment shall be released and it shall be considered for the
purpose of calculating all retirement benefits.
20.4.4. Gratuity and other benefits shall also be payable to the
nominee(s) of a civil servant who expires while in Civil
Service.

20.4.5. Gratuity and other benefits payable to a civil servant who

expires without filing the nomination shall be disbursed in
accordance with the law of the country.

20.4.6. Travel allowance, transfer grant and transport charges of

personal effects shall be payable to a civil servant only upon
fulfillment of service obligation under Section 4.11.1 of
Chapter 4 or Section 7.14.1 of Chapter 7, unless specified
otherwise.
 20.4.7. A retired civil servant or his survivor or nominee shall not be
paid gratuity and other benefits if he:
[Link]. Is under indictment or has charges
outstanding against him referred under the
rules of the Government for offences related to
official functions;
[Link]. Willfully remains outside the Kingdom of Bhutan
with the knowledge of the indictment or charges,
as the case may be; or
[Link]. Fails to appear, testify, or produce a book,
paper, record, or other document, relating to the
service as an employee, before a Government-
appointed authority or a Court of Law
concerning the past or present relationship with
a foreign Government/Agency or a matter
involving or relating to an interference with or
endangerment of, or involving or relating to a
plan or attempt to interfere with or endanger the
national security or sovereignty of the Kingdom
of Bhutan.

20.5. Nomination
20.5.1. A civil servant shall submit to the Agency concerned a
nomination in the prescribed Form conferring on one or
more persons the right to receive the retirement benefits that
may be due to him in the event of his demise.

20.5.2. A civil servant who desires to nominate more than one

person under Section 20.5.1 above, shall specify the amount
payable to each of the nominees.

20.5.3. A civil servant may, at any time, cancel a nomination and

submit a fresh one in its place.

20.5.4. A civil servant may state in a nomination that in the event of

the pre-decease of the nominee, the right conferred upon the
nominee shall automatically change to another person or
persons, as may be specified in the nomination.
 20.5.5. A civil servant not having a family at the time of nomination
shall file a fresh nomination on acquiring a family and if one
fails to comply with this requirement, the benefits shall be
paid to the nominees nominated earlier or disbursed in
accordance with the law of inheritance, as the case may be.

20.5.6. Every nomination made and every notice of cancellation by a

civil servant shall, to the extent it is valid, take effect on the
date on which it is received by the Agency concerned.

20.6. Formality
20.6.1. There shall be a proper handing/taking over of the charge
before a civil servant is relieved on retirement, including the
Government property, including official passport, files and
records.

20.6.2. Agency shall ensure that personal files of ESC are handed
over RCSC.

20.6.3. Agency concerned shall take the responsibility to

immediately process his postretirement benefits upon
superannuation or retirement and settle all payments within
one month.

20.6.4. A civil servant with clean service record shall be relieved with
appreciation and dignity.

20.7. Accountability
20.7.1. A separation not carried out in conformity to the provisions
of this Rule shall be regarded as illegal. HR Committee shall
be held accountable for such separation.

20.7.2. A civil servant who dishonours the Office Order issued by the
competent authority shall be accountable and liable for
disciplinary actions.

20.8. Commendation
20.8.1. A civil servant retiring after minimum of 20 years of clean
service record shall be awarded an “Expression of
Commendation” in appreciation of his service in accordance
with delegation of authority (Annexure 20/1 and Annexure
20/2).