Government of India

Ministry of Personnel, P.G. &  Pensions

(Department of  Pension and Pensioners’ Welfare)



New Delhi, dated, the 31st March 1987




Subject:            Parity in the matter of payment of pro-rata retirement benefits to the Government servants permanently absorbed in the Central Public Sector Undertakings and Central Autonomous Bodies.



            The undersigned is directed to say that at present the terms and conditions of permanent absorption of Central Government employees in the Central Autonomous Bodies are regulated by the instructions contained in the Ministry of Finance (Department of Expenditure) O.M. No.26(18)-EV(B)/75 dated the 8th April, 1976, as amended from time to time .  The terms and condition of those Government servants who are absorbed in the Central Public Undertakings are regulated by the instructions issued vide Department of Personnel and Training O.M.No.28016/5/85-Estt.(C) dated the 31st January, 1986.  Since there were certain disparities in the terms and conditions of absorption in the two organisations, the question of bringing about parity has been under the consideration of Government. The President is now pleased to decide as follows: -      


(i)                  The terms and conditions of absorption of Central Government employees in the Central Autonomous Bodies will be, as applicable to those permanently absorbed in the public sector undertakings. In both the cases the instructions laid down in the Department of Personnel and Training O.M. No.28016/5/85-Estt.(C) dated the 31st January, 1986, referred to above, will apply;    


(ii)                Those absorbed in the autonomous bodies having pension scheme shall have an option to receive pro-rata retirement benefits or continue to have the benefit of combined service under the Government and in the autonomous body subject to the conditions laid down in the Department of Personnel and AR’s OM No.28/10/84-PU dated the 29th August, 1984 and 12th September, 1985.  Such option should be exercised within six months from the date of permanent absorption. In case no option is exercised within stipulated period, he will be eligible for pension based on combined service.  


(iii)               Encashment of earned leave shall be admissible upto the maximum limit of 240 days.  Half pay leave will stand forfeited.        


(iv)              In respect of officers who are already on deputation to autonomous bodies, the existing terms and conditions of their deputation will operate and no extension of deputation beyond the period specified in their deputation orders should be allowed.  In case a Government employee does not return to his parent Department during or after the sanctioned deputation period, he will be deemed to have been permanently absorbed in the autonomous body on the date of  expiry of  deputation  period.      


2.         All existing instructions on the subject will stand amended/superseded to the extent indicated in the preceding paragraphs.  Formal  amendments in the statutory  rules, where considered necessary, will be, carried out in due course. 


3.         All cases of grant of pensionary benefits etc., to Government servants who are appointed in the Central Autonomous Bodies on immediate absorption basis shall be decided by the Administrative Ministries/Cadre Controlling Authorities/Authorities competent to accept resignation of a Government servant in accordance with provisions of this O.M.  If any question arises regarding the interpretation of these instructions or requiring relaxation or if there is any doubt, the question should be referred to the Department of Pension and Pensioners’ Welfare.


4.         These orders will, however, not be applicable in the cases of those Government servants whose Departments have been converted into a Central Autonomous Body or a Central Public Sector Undertaking.  Their cases are covered by different set of orders on the subject.                  


5.         For the purpose of these orders, a Central Autonomous Body is generally a non-profit making organisation, which is financed wholly or substantially from cess or Central Government grants.  “Substantially” means that more than 50% of the expenditure of the autonomous body is met through cess or Central Government grants.  As autonomous body may be a society registered under the Societies Registration Act, 1860 or a statutory body or a Central  university having its own governing  council whose memorandum of  association/bye-laws etc., contain  provision for complying  with Government directives for carrying outs its business in achieving  the objectives for which the organisation is established.      


6.         The Ministry of Home Affairs etc., may please bring these orders to the notice of all concerned including the autonomous bodies under their administrative control.


7.         These orders will take effect from the date of issue.


8.         In so far as persons serving in the Indian Audit and Accounts Departments are concerned, these orders issue with the concurrence of the Comptroller and Auditor General of India.



                                                (HAZARA SINGH)

Under Secretary to the Government of India