No.28/10/84-Pension Unit

Government of India/ Bharat Sarkar

Ministry of Home Affairs/Grih Mantralaya

Department of  Personnel and Administrative Reforms

(Karmik aur Prashasnik Sudhar Vibhag)

 

New Delhi, the 29^th August 1984

 

OFFICE MEMORANDUM

 

Subject:            Mobility of personnel between Central Government Departments and Autonomous Bodies – Counting of service for pension –

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            As per existing orders, service rendered outside Central Government does not count for pension in Central Government except in the case of scientific employees of autonomous bodies financed or controlled by the Government, who on permanent absorption under the Central Government are allowed to count their previous service for pension subject to certain conditions.  In respect of personnel other than scientific employees, who are permanent in Central Government, in the event of their subsequent permanent absorption in public sector  undertakings or any autonomous body, proportionate retirement benefits for the service rendered  in Government till the date of  permanent  absorption are allowed as per rules in force at the time  of  absorption.  No such benefit is allowed to temporary employees going over to autonomous body or undertaking.

 

2.         A number of Central autonomous/statutory bodies have also introduced pension scheme for their employees on the lines of the pension scheme available to the Central Government employees. It has, therefore, been urged by such autonomous/statutory bodies that the service rendered by their employees under the Central Government or other autonomous bodies before joining the autonomous body may be allowed to be counted in combination with service in the autonomous body, for the purpose of pension, subject to certain conditions. Similar provisions for employees of autonomous body going over to Central Government have also been urged.  In other words, the suggestion is that the benefit of pension based on combined service should be introduced.                         

 

3.         This matter has been considered carefully and the President has now been pleased to decide that the case of Central Government employees going over to a Central autonomous body or vice-versa and employees of the Central autonomous body moving to another Central autonomous body may be regulated as per the following provisions:-                   

 

(a)    In case of Autonomous Bodies where Pension Scheme is in operation.

 

(i)   Where a Central Government employee borne on pensionable establishment is allowed to be absorbed in an autonomous body, the services rendered by him under the Government shall be allowed to be counted towards pension under the autonomous body irrespective of whether the employee was temporary or permanent in Government.  The pensionary benefits will, however, accrue only if the temporary service is followed by confirmation.  If he retires as a temporary employee in the autonomous body, he will get terminal benefits as are normally available to temporary employees under the Government.  The same procedure will apply in the case of employee of the autonomous bodies who are permanently absorbed under the Central Government.                  

 

The Government/autonomous body will discharge its pension liability by paying in lumpsum as a one-time payment, the pro-rata pension/service gratuity/terminal gratuity and DCRG for the service upto the date of absorption in the autonomous body/Government, as the case may be.  Lumpsum amount of the pro-rata pension will be determined with reference to commutation table laid down in CCS (Commutation of Pension) Rules, 1981, as amended from time to time.  

 

(ii)  A Central Government employee with CPF benefits on permanent absorption in an autonomous body will have the option either to receive CPF benefits which have accrued to him from the Government and start his service afresh in that body or choose to count service rendered in Government as qualifying service for pension in the autonomous body by foregoing Government’s share of CPF contributions with interest, which will be paid to the concerned autonomous body by the concerned Government Department.  The option shall be exercised within one year from the date of absorption.  If no option is exercised within stipulate period, employee shall be deemed to have opted to receive CPF benefits. The option once exercised shall be final.      

    

(b)    Autonomous body where the Pension Scheme is not in operation.    

 

(i)      A permanent Central Government employee borne on pensionable establishment, on absorption under such autonomous body will be eligible for pro-rata retirement benefits in accordance with the provisions of the Ministry of Finance O.M. No.26(18)EV(B)/75 dated the 8^th  April,  1976, as amended from time to time.  In case of quasi-permanent or temporary employees, the terminal gratuity as may be admissible under the rules would be actually payable to the individual on the date when pro-rata retirement benefits to permanent employees become payable.  However, in the case of absorption of a Government employee with CPF benefits, in such an autonomous organisation, the amount of his subscriptions and the Governments’ contribution, if any, together with interest thereon shall be transferred to his new Provident Fund account with the consent of that body.

 

(ii)  An employee of an autonomous body on permanent absorption under the Central Government will have the option either to receive CPF benefits which have accrued to him from the autonomous body and start his service afresh in Government or choose to count service rendered in that body as qualifying service for pension in Government by foregoing employer’s share of Contributory Provident Fund contributions with interest thereon, which will be paid to the concerned Government Department by the autonomous body.  The option shall be exercised within one year from the date of absorption.  If no option is exercised within stipulated period, employee shall be deemed to have opted to receive CPF benefits.  The option once exercised shall be final.    

 

(c)    Absorption of employees of one Central Autonomous body to another Central Autonomous body.  The above procedure will be followed mutates mutandis in respect of employees going from one autonomous body to another.

 

4.         “Central autonomous body” means body which is financed wholly or substantially from cess or Central Government grants.  “ Substantially” means that more than 50% of the expenditure of an autonomous body is met through cess or Central Government grants.  Autonomous body includes a Central statutory body or a Central University but does not include a public undertaking.  

 

            Only such service which qualifies for pension under the relevant rules of Government/Autonomous body shall be taken into account for this purpose.         

 

5(1).     The employees of  a Central  autonomous body or Central Government, as the case may be,  who have already been sanctioned  or have received  pro-rata retirement benefits or other  terminal benefits  for their past  service  will have the option either:- 

 

(a)        to retain such benefits and in that event their past service will not qualify for pension under the autonomous body or the Central Government, as the case may be : or  

 

(b)  to have the past service counted  as qualifying service for pension  under the new organisation in which case the pro-rata  retirement or other terminal benefits, if already received by them, will have to be deposited alongwith  interest thereon from the date of  receipt of  those benefits till the date of deposit with the autonomous body or the Central Government, as the case may be.  The right to count previous service as qualifying service shall not revive until the whole amount has been refunded.  In other cases, where pro-rata retirement benefits have already been sanctioned but have not yet become payable, the concerned authorities shall cancel the sanction as soon as the individual concerned opts for counting of his previous service for pension and inform the individual in writing about accepting his option and cancellation of the sanction. The option shall be exercised within a period of one year from the date of issue of those orders. If no option is exercised by such employees within the prescribed time limit, they will be deemed to have opted for retention of the benefit already received by them. The option once exercised shall be final.          

 

5(2).     Where no terminal benefits for the previous service have been received, the previous  service in such cases will be counted  as qualifying service for pension only if  the previous employer accepts pension liability for the service  in accordance with the principles laid down in this Office Memorandum.  In no case pension contribution/liability shall be accepted from the employee concerned.  

 

6          These orders will be applicable only where the transfer of the employee from one organisation to another was/is with the consent of the organisation under which he was serving earlier, including cases where the individual had secured employment directly on his own volition provided he had applied through proper channel/with proper permission of the administrative authority concerned.   

 

7.         These orders will take effect from the date of issue and the revised policy as enunciated above will be applicable to those employees who retire from Government/autonomous body service on or after the date of issue of these orders.   

 

            The provisions contained in the Ministry of Finance Office Memorandum No.26(18)EV(B)/75 dated the 8^th April, 1976 and Office Memorandum No.25(1)EV/83, dated  the 8^th September 1983 or  any other  orders shall, in so far as it provides for any of the matters contained in this Office Memorandum, cease to operate.   

 

8.         The Ministry of Education and Culture etc. are requested to advise the autonomous/statutory bodies under their administrative control, with specific directions to the Financial Advisers concerned, to ensure to make necessary provisions in their Rules and Regulations/ Articles of Association in accordance with the provisions contained in this Office Memorandum.  In cases where any practice otherwise than enumerated above is presently being followed the same may be revised in accordance with the provisions of this Office Memorandum so that uniformity is maintained in such matters in all the organisations.

 

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

 

                                                                                                                                                                             Sd/-

                                                                                                                                                                         S.R. AHIR

Deputy Secretary to the Government of India