No.25013/6/2001-Estt.(A)
Government
of India
Ministry
of Personnel, Public Grievances & Pensions
Department
of Personnel & Training
….
Sub: Special
Voluntary Retirement Scheme for Surplus Central Government Employees.
---------
The
Expenditure Reforms Commission (ERC) set up by the Government of India has
suggested a liberal Voluntary Retirement Scheme (VRS) for the employees
declared surplus. This recommendation,
contained in Commission’s second Report on ‘ Optimising Government’s Staff
Strength – Some General Issues’ has been considered carefully and the Central Government have decided to
introduce a special Voluntary
Retirement Scheme (VRS) as per details given in para 2 hereinunder for the
permanent employees declared surplus in any Ministry/Department as a
consequence of one or more of the following:-
(i)
Implementation
of decisions of the Cabinet regarding restructuring of Ministries/Departments;
(ii)
Implementation
of the recommendations of the Expenditure Reforms Commission;
(iii) Implementation of the decision of a Ministry/Department
relating to downsizing/rightsizing including, inter alia, restructuring of an
organization, transfer of an activity to a State Government, Public Sector
Undertaking or other Autonomous Organisation, discontinuation of an ongoing activity and introduction of changes in technology; or
(iv) Implementation
of work study reports undertaken by the Staff Inspection Unit of the Ministry
of Finance or any other body set up by the Central Government or the
Ministry/Department concerned.
2. The features of the Special VRS for the employees declared surplus are as under:-
(a)
All
permanent employees rendered surplus
irrespective of their age
and qualifying service can opt for the
scheme.
(b)
An
optee of Special VRS will be entitled to receive an ex-gratia amount equal to
basic pay plus dearness allowance for the number of days worked out on the
basis of length of service @ 35 days
for each completed year and 25 days for each remaining year. For any part of a
year, the number of days, for ex-gratia amount, will be worked out on the basis
of 365 days in a year. The ex-gratia amount will be further subject to the
following conditions:
(i) total number
of years to be counted for payment of ex-gratia will not exceed 33 years;
(ii) No weightage of additional service will be
given for the purpose of calculation of ex-gratia;
(iii) The
ex-gratia will be subject to a minimum
of Rs.25,000/- or 250 days emoluments, whichever is higher;
(iv)The
ex-gratia amount should not exceed the sum of the basic pay plus DA that the
employee would draw at the prevailing level for the balance of the period of
service left before superannuation;
(v) The
ex-gratia amount will be paid in lump-sum;
(vi) The
ex-gratia amount up to Rs.5.00 lakhs will be exempted from Income Tax;
(c)
A
weightage of five years to the qualifying service shall be given under
CCS(Pension) Rules, 1972 to such permanent surplus employees who have rendered
a minimum of 15 years of qualifying service on the date they are declared surplus. However, as
provided in rule 29 of CCS (Pension) Rules, 1972, the qualifying length of
service after taking into account the aforesaid weightage should not be more
than the service he would have rendered had he retired on the date of his
superannuation .
(d)
Encashment
of Earned Leave accumulated on the date of relief as per CCS(Leave)Rules, 1972;
(e)
Payment
of savings element with interest in the Central Government Employees Group
Insurance Scheme as per rules;
(f)
TA/DA
as on retirement for self and family for settling anywhere in India as per Travelling Allowance Rules;
(g) Group ‘A’ officials opting for the special VRS will be exempted from the
operation of rule 10 of the CCS (Pension) Rules which stipulates previous
sanction of the Government for accepting commercial employment.
3. Payment of ex-gratia to the employees declared surplus and
opting for the special VRS within the specified three months period will be over and above the normal retirement
entitlements under CCS (Pension) Rules, 1972.
4. The order of voluntary retirement in each case should clearly
stipulate that the surplus post held by the retiring incumbent will stand
abolished from the date of his/her voluntary retirement.
5. The identification of surplus employees for the purpose of VRS would be guided by
procedure given in Item 3 of Annexure-I under the heading “Steps for
identification of Surplus staff” to the revised scheme of the disposal of
personnel rendered surplus due to reduction
of establishment in Central Government Department/Offices notified vide
Circular No. 1/18/88-CS-III of DoPT dated 1st April, 1989.
6. The permanent employees
declared surplus will have to exercise option for special VRS within three
months from the date he or she has been declared surplus in any
Ministry/Department. Surplus employees presently on the Rolls of the Surplus
Cell (Redesignated as the Division of Retraining and Redeployment) of the
Department of Personnel & Training as on the date of this OM can also opt
for special VRS within three months from this date.
7. In order to facilitate the maintenance of a close watch on the
implementation of the scheme, all Ministries/Departments are required to submit
quarterly returns to the Surplus Cell of Department of Personnel & Training that may be prescribed by that Cell.
8. Ministry of Finance, etc. are requested to give wide publicity
to the contents of this O.M. to the employees declared surplus.
(Smt. Pratibha Mohan)
Director (E-II)
Tel.: 301 3180
To
All Ministries/Departments (As per standard list).