No.28/24/94-P&PW (B)

Government of   India

Department of Pension  & Pensioners’ Welfare

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New Delhi, the 30^th May 1995.

 

OFFICE MEMORANDUM 

 

Subject:           Grant of Pro-rata retirement benefits to the permanent Central  Government employees  who are absorbed in the Nationalised Banks, General Insurance Corporation and its subsidiaries – Question regarding.

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            The undersigned is directed to refer to this Department’s OM Nos.4/8/84-P&PW dated 14^th May, 1986 & No.4/23/87-P&PW dated 10^th November, 1987 on the subject mentioned above and to say that inquiries have been  made to the effect  whether  the benefit of  counting  of  service  for the purpose of  pensionary  benefits, as admissible  in terms of  this Department’s OM No.28/10/84-Pension Unit dated the 29^th August, 1984, is to be allowed  in the case of  mobility of  personnel from Government to Nationalised  Banks and financial institutions like Life Insurance Corporation of  India & General Insurance  Corporation  etc. and  vice-versa.    

 

2.         The matter has been considered in the light of  instructions issued by this Department in regard to mobility of  personnel between Government and non-Government Organisations including  Public Sector  Undertakings and Autonomous Bodies. The orders contained in this Department’s OM No.4/8/84-P&PW dated 14^th May, 1986 and OM No.4/23/87-P&PW dated the 10^th November, 1987, stated that the Nationalised Banks including the Reserve Bank of  India  and the State Bank of  India  and its subsidiaries , the General Insurance Corporation of  India and its four subsidiaries  are to be treated  as Autonomous Bodies for the purpose of  grant of  pro-rata retirement benefits to the permanent Central Government employees who are absorbed by these Bodies on the terms and conditions  envisaged  in Ministry of  Finance, Department of  Expenditure OM No.26/(18)/EV/75 dated 8^th April, 1976, as amended  from time to time.  It is clarified that such employees are not entitled to count the service rendered in Government for the purpose of pension on absorption in the Nationalised Banks including the Reserve Bank of India and the State Bank of India and its subsidiaries and other financial Institutions including Life Insurance Corporation of India, General Insurance Corporation and its subsidiaries as per our OM No.28/10/84-Pension Unit dated the 29^th August, 1984 referred to above.

 

3.         Central Government employees who have rendered service in the Nationalised Banks as well as other financial Institutions including Life Insurance Corporation of India/General Insurance Corporation.  Prior to their appointment in the Central Government are also not entitled to count such service for the pensionary benefit ‘under’ the Central Government They are, however, free to seek terminal benefits as admissible under the relevant rules from the concerned Nationalised Banks and such other institutions in which they had rendered service before being appointed in the Central Government. 

 

 4.    Ministry of Defence, etc. are requested to clarify this position to all concerned authorities under their administrative control. The past cases decided otherwise then the procedure clarified above may be reviewed in case the concerned employees are still in service.

 

5.         In so far as persons serving in the Indian Audit and Accounts Department are concerned, these orders are issued after consultation with the Comptroller and Auditor General of India.

 

Sd/-

                                                                        (S.C. BATRA)

DY. SECRETARY TO THE GOVT. OF INDIA

 

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