Government of  India

Department of  Pension and Pensioners’ Welfare


New Delhi, 30th May 1995


Subject:           Mobility of Personnel between Central Government Departments and Autonomous Bodies - Counting of service for pension.



The undersigned is directed to refer to this Department’s OM.  No.28/10/84-Pension Unit dated  29-8-84 and No.28/10/84-P&PW (Vol.II) dated  7-2-1986 on  the subject mentioned above  and to say that enquiries have been made  to the effect  whether it  would be necessary for the parent Government Department or the autonomous  body to discharge  pro-rata  pensionary benefits in cases in which the employee has rendered less than  5 years  of  qualifying  service  and is not  entitled  to any  terminal  benefits on the date of  his permanent absorption in the autonomous body/Government.  


2.         The matter has been considered in consultation with the Ministry of Finance (Department of Expenditure).  It is clarified that discharge of pro-rata pensionary liability by the parent organisation is necessary in all cases of mobility of personnel from Government to Autonomous Bodies and vice-versa, if the employee opts for the pensionary benefits based on combined service in accordance with the above mentioned Office Memorandum.  The settlement of payments of pro-rata pension etc. is required to be made between a govt. department and an autonomous body and not between government and individuals.  The question of employee’s actual entitlement at the time of such mobility is not relevant. The amount should appropriately be calculated pro-rata based on length of service rendered and would comprise of the terminal gratuity or  service gratuity or pension, as the case may be, and retirement gratuity for the employees on pensionable  establishments.  


3.         In the case of an employee of autonomous body, with CPF benefits, the autonomous body will have to pay to the Government the employer’s contribution together with interest for the period of service rendered by him in the said body irrespective of fact whether or not the employee is actually  entitled  to receive benefits at the time of  his absorption.   


4.            Ministry of Defence etc. are requested to clarify this position to all concerned authorities under their administrative control.



                                               (S.C. BATRA)



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