chapter-3 on pension , gratuity, bsnl gsli

E1-E2 Core Rev. Date: 15-03-2011

For Internal Circulation Only 1

CHAPTER-3

PENSION, GRATUITY, BSNL GSLI



Pension and Gratuity

Introduction

DTO/DTS/DOT Employees as on 30-9-2000 & absorbed in BSNL are eligible for

Pension/Family Pension & Gratuity as applicable to Central Government Servants.

(Rule 37 A CCS Pension Rules, 1972 )

Pension is the series of periodic money payments to a person who retires from service

on completion of the agreed span of service. The payment continues for the rest of

natural life of the receipient and sometimes to a widow of the survivor.

Principles Governing Pension

There are certain underlying principles governing the grant of pension. An employee

is not eligible for pension unless the qualifying service is paid for and rendered in a

post under the Government and he is holder of a substantive appointment at the time

of retirement. In the recent past provision was made for grant of pension to the

employees who did not hold substantive appointment at the time of retirement, but

had rendered not less than 10 years of service if they retire on superannuation or

invalidation or rendered not less than 20 years and retire voluntarily. Future good

conduct is implied condition for grant of pension and it continuance in future. Various

rules relating to conditions, and regulation of amounts of pension etc., are contained

in C.C.S (Pension) Rules 1972. In this handout the procedure for verification of

services, processing the pension cases, issue of pension payment order etc., are

described in the succeeding paras.

LEARNING GOALS

After reading this section, you will be conversant with

Calculation of Pensionary Benefits viz (a) Pension (b) Gratuity (c) Family Pension (d) Commutation (e) Leave Encashment.

Classes of Pension and its description.

Processing of Pension papers.



Verification of Services

The verification of services rendered by an employees is the first step of the

settlement of a pension case. Verification cases received in DOT cell is of two types

viz.,

i) Verification of qualifying service after completion of 25 years of

service or 5 years before the date of retirement and

ii) Verification of services while finalising the pension case.

As a matter of fact the second category of case doe not come under verification cases,

but final verification of qualifying service is also done while issuing the Enfacement

Report and as such, they are entered(treated) as pension cases received for issue of

Enfacement Report.

Procedure for Verification

A service statement along with the service book is received in pension section from

the Head of the Office. The particulars of the case are entered in Register of

Applications ( SY.133) for verification of services which is maintained to watch

the proper disposal of the cases for verification of services. The serial number

assigned in the register is noted on the statement to signify the entry in the register.

The service statement is examined to see:-

1. that it is complete in all respects;

2. that the date of birth shown in it tallies with the service book;

3. that all periods of non-qualifying service agree with the entries in the

service book and no spell is left out;

4. that necessary notes regarding verification of service exist in the Service

Book;

5. that the periods of service not verified with reference to acquittance rolls

have been verified in accordance with the provisions of Rule 58(iv) of

C.C.S (Pension) Rules, 1972.



6. that necessary note exists in the Service Book under the signatures of the

Circle Accountant or other competent authority for counting any military

service which qualifies for Civil Pension;

7. in the case of foreign service the period should be verified from the

particulars already recorded in a Service Book (Part- III) by the Chief

Accounts Officer (TA).

While checking if any discrepancies affecting the qualifying service are noticed, the

case should be returned to the Head of the Office for reconciliation. If the

discrepancies are such which do not affect the qualifying service, the same can be

communicated to the Head of Office while returning the case after verification of the

qualifying service.

Issue of Verification Memo

If the case is found fit for issue of a verification memo, it is prepared and signed by

the Accounts Officer (DOT Cell). The Statement of services along with the service

book should be returned to the Unit concerned. The disposal should be noted in the

Register of Applications for verification of services. The maximum period allowed for

disposal of verification statement is 15 days from the date of receipt of the case.

Procedure followed in the Units

Preparation of List of officials due to retire

A list of officials (MSO(T)-26) who are due to retire within the next 24 to 30 months

is prepared twice a year i.e., on 1st January and 1

st July by the Head of Office. A copy

of the list is supplied to the Accounts Officer(DOT Cell).

Intimation to Directorate of Estates

If the official is in occupation of Government accommodation, the Head of Office

should write to the Directorate of Estates two years before the date of retirement for

issue of No Demand Certificate in respect of the period preceding 8 months of

retirement.



Preparation of Pension Paper

The work of preparing the pension papers of an official due to retire on

superannuation is undertaken 2 years before the date of retirement. This work is

completed in the following stages:

a) Checking the Service Book & see whether certificates of verification are

recorded.,

b) Verification of unverified portions with reference to pay rolls / acquittance

rolls etc., and recording necessary certificates.,

c) Referring to the concerned office in respect of unverified portion relating

to other offices.,

d) Obtaining the declaration from the official in respect of service which

could not be verified with any source available with the office.,

e) Admitting the unverified portion for qualifying service on the basis of the

written statement (declaration) submitted by the official.,

f) Taking all possible steps for making good any omissions/ imperfections/

deficiencies(in S.B) affecting qualifying service.

g) Determining qualifying service omitting such portion the verification of

which was found not possible.

h) Calculation of average emoluments after verifying the correctness of

emoluments for a period of 10 months preceding the date of retirement.,

i) Not later than ten months prior to the date of retirement of the Govt.

Servant, the Head of Office shall furnish to the retiring Govt. Servant a

certificate regarding the length of qualifying service proposed to be

admitted for the purpose of pension and gratuity as also the emoluments

proposed to be reckoned with for retirement gratuity and pension. In case

the certified service and emoluments as indicated by the Head of Office

are not acceptable to him, he shall furnish to the Head of Office the

reasons for non acceptance, inter alia, supported by the relevant documents

in support of his claim.



j) Obtaining Form- 5 from the retiring official ( along with the documents to

be attached to Form-5) 8 months before retirement.

k) Completion of Part-I of Form-7 and

l) Forwarding Pension Papers before 6 months.

Procedure followed in DOT Cell

Processing of Pension and Gratuity cases

1. Verification of service.

2. Reporting on applications for pension (including Family Pension, Gratuity,

Commutation of pension) in the form of Enfacement Report.

3. Issuing Pension or Gratuity, or Family Pension Payment Orders.

4. Checking of pension and Gratuity payment vouchers (by territorial Circle

Accountatns.)

5. Compilation of periodical returns etc.

(a) The procedure regarding the first item (Verification of service) has

been described already. Now the procedure for other items of work is

described in the succeeding paras.

(b) Reporting on applications for Pension: On receipt of the

applications (Pension Papers) for pension and gratuity from the Head

of Office the particulars are entered in the Register of Applications

for Pension and Gratuity in Form No. SY. 134. The serial number

assigned to each application in the register should be noted on the

application to signify its entry in the Register. Each application

should be scrutinized in respect of the following points.



The following general checks are exercised in respect of the pension cases.

1 Forms used that it has been drawn up in proper forms.

2 Name of official that uniformity of spelling in all accompanying documents was

adopted.

3 Date of beginning of

service

that it confirms with entry in service book and boy service etc.,

are omitted as per rules.

4 Date of ending of

service in case of

superannuation pension.

in the afternoon of the last day of the month in which the

official attains the age of 60 years.

An official, whose date of birth is 1st of a month, retires on the

afternoon of the last day of the preceding month on attaining

the age of 60 years.

5 Period of Military

service

that it was treated as qualifying service for civil pension under

the provision of Rule 19 of CCS (Pension) Rules.

6 Class of Pension that the class of pension admissible is properly specified.

7 Qualifying Service i) that the periods such as-

a) boy service

b) suspension adjudged as penalty.

c) EOL without MC where specific entries that it does not

count for pension,

d) Overstayal of leave and joining time and

e) Interruption declared as non- qualifying service have

not been counted.

ii) that the period of training before appointment was

taken into account.

iii) that the service book contains the certificate of

verification

iv) that proper action was taken by the Head of Office

completing omissions



v) that the calculations in leave account are correct

vi) that the entries of condonation of interruptions were

properly made.

vii) that the omissions, imperfections or deficiencies in

Service Book which could not be completed were

ignored.

viii) that in the case of foreign service, contributions were

recovered and entries to this effect were made.

ix) Rounding Off of qualifying service: Rates of Pension/

gratuity have been prescribed with reference to the

number of six-monthly periods of qualifying service.

Under Rule 49(3) of CCS(Pension) Rules read with

GID(2) thereunder, the period of three months and

above will be reckoned as one completed half-year.

This means that the fraction of a year consisting of

Less than 3 months to be ignored

3 months and above .one completed

but less than 9 six monthly or

months. Half year period.

9months & above ........ Two completed

six monthly or

half year periods.



Calculation of Average Emoluments

Points to be seen:

i) that periods of EOL, Dies-non, overstayal and suspension treated as non-

qualifying service if any, falling within the period of 10 months were

disregarded and equal period before 10 months was included.

ii) that the month is reckoned as 30 days irrespective of actual number of days.

iii) that the calculation of average emoluments is correct.

iv) If the employee was on leave of any kind with leave salary, the emoluments

admissible if he was on duty during that period will be taken as emoluments

and not the leave salary actually drawn by him. Similarly, if he was under

suspension and subsequently reinstated in service without forfeiture of service

(i.e., if the period of suspension is allowed to count as qualifying service), the

emoluments which he would have drawn but for suspension will be taken into

account and not the proportionate pay allowed for the period of suspension.

However any increase in pay which is not actually drawn shall not form part of

his emmoulments.But annual increment falling due during the period of earned

leave ( and not other kinds of leave) not exceeding 120 days (or during the first

120 days of earned leave) but not actually drawn will be taken into account as

emoluments drawn.

v) If the employee was on leave with leave salary after holding higher appointment

in an officiating/ temporary capacity, the benefit of emoluments drawn in such

higher post will be given (for the period of leave) only in cases where it is

certified that he would have continued to officiate in the higher post but for

leave.

vi) The pay drawn by an employee while on foreign service will not be treated as

emoluments but the pay which he would have drawn under Government but

for foreign service will alone be taken as emoluments.



vii) In the case of re-employed Civil/ Military pensioner who retains the pensionary

benefit for his past service, the element of pension, if any, by which his pay in

the re-employed post is reduced, will be taken into account as emoluments.

Calculation of Pension, Gratuity, Family Pension, Commutation Value

Points to be seen

o That the calculations have been made correctly as per the CCS(Pension)

Rules

1972.

Submission of other documents

Points to be seen: that the documents viz.,

a) 3 passport photographs (two in the case of unmarried) duly attested by the

Head of the Office.

b) 2 slips of specimen signature duly attested by Gazetted Officer.

c) 2 slips showing height & personal identification marks.

d) Details of Family in Form-3 in case it was not submitted already.

Special Checks to be Exercised

In addition to the general points detailed in the preceding paragraph, some special

points requiring notice are stated below for each class of pension.

Invalid Pension

i) that the applicant is declared by the appropriate medical authority to be

permanently incapacitated for further service in accordance with the

instructions on the subject.,

ii) if, however, the medical certificate is submitted by the applicant while on

leave, the service upto the date of termination of the leave is taken into

account i.e., the retirement in such case does not take effect from the date of

report of the medical authority.,



iii) that the amount of leave as debited against the leave account together with

any period of duty beyond the date of the medical authoritys report should

not exceed six months.,

iv) Invalid Pension should not be less than the normal Family Pension. However

maximum commutation of Pension will be 40% of original Invalid Pension

(before raising to that of Family Pension).

Voluntary Retirement on Completion of 20 years of Qualifying Service (Rule 48-

A, CCS Pension Rules, 1972)

i. The employee should give in writing to the appointing authority of his

intension to retire at least three months before the intended date of

retirement. The employee may, in writing, request for acceptance of notice

of less than 3 months giving reasons therefor. This request may be

considered by the appointing authority on merits on the condition that the

employee shall not apply for commutation of his pension before the expiry

of full notice period of 3 months.

ii. Date of retirement will be a non-working day.

Calculation of Pension and Gratuity

PENSION:

a) In the case of Govt. Servant retiring after completing qualifying service of not

less than 33 years, the amount of pension will be 50% of the average

emoluments subject to maximum of Rs.15000 per month (w.e.f 1.1.96)

[Rs.22500 w.e.f. 1-4-2004 (CDA scale)]

e.g. Pension = Average Emoluments.

2

b) In the case of Govt. Servants retiring before completing the qualifying service

of 33 years but after completing 10 years of qualifying service the amount of

pension will be proportionate to the amount calculated under (a) above and

subject to the minimum of Rs. 1275 per month (w.e.f. 1.1.96). [Rs.1913

w.e.f. 1-4-2004 (CDA scale)]



e.g. Pension for 63 six monthly period = AE X 63

2 66

Average Emoluments= Total of last 10 months emoluments

10

Emoluments = Basic Pay, N.P.A., & Stagnation Inct.

Emoluments for drawing in CDA scale w.e.f. 1-4-2004 = Basic Pay, NPA, &

Stagnation Increment + Dearness Pay (50% of Basic Pay)

In respect of civil and military pension, the floor ceiling of Rs.1275 taking the two

pensions together will not apply and the individual pensions will be governed by

respective pension rules.

(Dept. Pen. P.W. No.38/38/02-P&PW(A) dt. 23-4-2003)

W.E.F. 1-1-2006

Basic Pay in the revised pay structure means the pay drawn in the prescribed pay band

plus the applicable grade pay but does not include any other type of pay like special

pay, etc. (para 4.2 dt. 2-9-2008) ( the pay in the pay scale in the case of HAG + and

above)

The amount of pension shall be subject to minimum of Rs.3500 and maximum up to

50% of highest pay in the Government (The highest pay in the Govt. is Rs.90000

w.e.f. 1-1-2006) [para 5.5 dt. 2-9-2008]

W.E.F. 2-9-2008 (applicable to Government servants retiring on or after 2-9-

2008)

Linkage of full pension with 33 years of qualifying service shall be dispensed with.

Once a Government servant has rendered the minimum qualifying service of twenty

years, pension shall be paid at 50% of the emolument or average emoluments received

during the last 10 months, whichever is more beneficial to him (para 5.2 dt. 2-9-2008)

In cases where Government servant becomes entitled to pension on completion of 10

years of qualifying service in accordance with Rule 49(2) of the CCS (Pension) rules,

1972, pension in those cases shall also be paid at 50% of the emoluments or average



emoluments, whichever is more beneficial to the Government servant. (para 5.3 dt. 2-

9-2008)

It has now been decided that the provision for payment of pension at 50% of the

emoluments (pay last drawn) or 50% of average emoluments received during the last

10 months, whichever is more beneficial to the retiring employee, shall be applicable

to all Government servants retiring on or after 1-1-2006.

[Dept. of Pension & PW no.38/37/08-P&PW(A) dt. 11-12-2008]

It has now been decided that linkage of full pension with 33 years of qualifying

service shall be dispensed with, with effect from 1-1-2006 instead of 2-9-2008. The

revised provisions for calculation of pension in para 5.2 and 5.3 of the OM

No.38/37/08-P&PW(A) dated 2-9-2008 shall come into force with effect from 1-1-

2006 and shall be applicable to the Government servants retired/retiring after that

date. Para 5.4 will further stand modified to that extent.

Consequent upon the above revised provisions, in partial modification of para 7.1 of

the OM No.38/37/01-P&PW(A) dated 2-9-08, the extant benefit of adding years of

qualifying service for the purpose of computation of pension and gratuity shall stand

withdrawn with effect from 1-1-2006.

The overall calculation may take into account revised gratuity and revised

pension/including arrears up to date of revision based on these instructions. However,

no recoveries would be made in the cases already settled.

[Dept. of Pension & PW no.38/37/08-P&PW(A) dt. 10-12-2009]

c) The full pension in no case shall be less than 50% of the minimum of the

revised scale of pay introduced with effect from 1st January, 1996 for the

post last held by the employee at the time of his retirement. [From 1-4-

2004, pension should be not less than 50% of the minimum of the CDA

scale plus Dearness Pay of the post] However such pension will be suitably

reduced pro rata, where the pensioner has less than maximum required

service for full pension as per the rule (Rule 49 of CCS (Pension) Rules,

1972) applicable to the pensioner as on the date of his/her superannuation/

retirement and in no case it will be less than Rs. 1,275 p.m. [Rs.1913 w.e.f.

1-4-2004 (CDA scale)]



W.E.F 1-1-2006

The full pension shall also not be lower than fifty percent of the sum of the minimum

of the pay in the pay band and the grade pay (or 50% of the minimum of the scale in

the case of HAG+ and above)

For those who have retired between 1-1-2006 and 2-9-2008, the pension will be

reduced pro-rata, where the pensioner had less than 33 years Q.S. (But, it should not

be less than Rs.3500). In case the pension calculated in accordance with Rule 49 of

CCS(Pension) Rules 1972, as applicable before 2-9-2008, is higher than the pension

calculated in the manner indicated above, the same (higher pension) will be treated as

Basic Pension.

[Dept. P&PW OM NO.38/37/08-P&PW(A) pt.II dt. 3-10-2008]

d) Government Servants retiring before completing qualifying service of 10

years are not eligible for pension. However they will be entitled for

lumpsum payment termed as Service Gratuity calculated @ half emoluments

for each completed 6 monthly period. Emoluments for Service Gratuity =

Basic Pay, NPA, Stagnation Increment + DA

[W.E.F. 1-1-2006 Pay drawn in the prescribed pay band plus the applicable grade pay

(the pay in the pay scale in the case of HAG + and above) +DA on the date of

retirement] (para 4.1 & 4.3 of OM dt. 2-9-2008)

e) In the case of re-employment of a military pensioner in civil service, the

pensionery benefits for second spell of service shall not be subject to any

limitation as per provisions of Rule 18(3) of CCS Pension rules, 1972

W.E.F. 1-1-2006

The quantum of pension available to the old pensioners shall be increased as follows:-

Age of pensioner Additional quantum of pension

From 80 years to less than 85 years 20% of basic pension






100 years or more 100% of basic pension

The pension sanctioning authorities should ensure that the date of birth and the age of

a pensioner is invariably indicated in the pension payment order to facilitate payment

of additional pension by the Pension Disbursing authority as soon as it becomes due.

(para 5.7 of OM dt. 2-9-2008)

The additional quantum of pension, on attaining the age of 80 years and above, would

be admissible from the 1st day of the month in which his date of birth falls.

(Dept. of P&PW OM no.38/37/08-P&PW(A).pt.II dt.3-10-2008)

GRATUITY.

1. Government Servants retiring after completing 5 years of qualifying service,

Gratuity shall be calculated at the rate of 1/4

th of emoluments for each completed

six monthly period subject to a maximum of 16 times of emoluments or Rs. 3.5

lakhs whichever is less.(w.e.f. 1.1.1996)

[Maximum Gratuity Rs.10 lakhs w.e.f. 1-1-2006] (para 6.1 dt. 2-9-2008)

2. Emoluments for this purpose shall be last pay drawn or Average Emoluments,

whichever is higher plus DA on the date of retirement on Average Emoluments /

Last Pay.

3. Last Pay / Average Emoluments = Basic Pay, NPA & Stagnation Increment.

[W.E.F. 1-1-2006 Pay drawn in the prescribed pay band plus the applicable

grade pay (the pay in the pay scale in the case of HAG + and above) +DA on

the date of retirement]

4. A temporary G.S. who retires on superannuation or discharged from service or

declared invalid for further service or absorbed in an autonomous body before

completing ten years of continuous service shall be eligible to gratuity on the

same scale and rates as are applicable to permanent civil G.S. under the provisions

of CCS (Pension) Rules 1972.



Clarification regarding payment of pensionary benefits to a retiree against whom

personal court case (other than Department) is pending in the Competent court.

The department of Pension & PW (vide their I.D.No.17729/03-P&PW(F) dated

10-3-2003) have advised that the term judicial proceedings mentioned in Rule 69 of

CCS (Pension Rules )1972 is relating to judicial proceedings initiated against a Govt.

Servant in his official capacity by the Government authorities. The judicial

proceedings initiated against the Government servant by a private person/agency will

not come the ambit of this rule. Hence there is no objection in releasing DCRG and

final pension to those Govt. servants against whom judicial proceedings have been

initiated by private parties.

The Department of Legal affairs (vide their U.O. No.10412/03 dated 18-3-

2003) have concurred in the above views of Department of Pension & PW.

(DOT Lr.No.36-9/2002-Pen(T) dt. 24-3-2003)

Retirement Benefits in respect of Government service to persons

Dismissed/Removed after their Absorption in BSNL

As per Sub-rule 24 of Rule 37-A of CCS (Pension) Rules, 1972, the absorbed

employees of BSNL are entitled to retirement benefits for the service rendered under

the Government even if they are dismissed/removed from the service after their

absorption in BSNL for any misconduct during service in BSNL. The retirement

benefits in such cases shall be admissible from the day following the date of

dismissal/removal from BSNL

(DOT No.318-12/2008-Pen(T) dt. 21-7-2009)

Terminal/ Death Benefit to Temporary Employees.

a) Terminal Benefits

1. Quasi- Permanent and temporary employees, who retire on superannuation

or on being declared permanently incapacited for further Government

service by the appropriate medical authority after having rendered temporary

service of not less than 10 years, shall be eligible for grant of superannuation



/ invalid pension, retirement gratuity and family pension at the same scale as

admissible to permanent employees under the C.C.S (Pension) Rules 1972.

2. Temporary and quasi-permanent employees who seek voluntary retirement

after completion of 20 years of service shall continue to be eligible for

retirement pension and other pensionary benefits like gratuity and family

pension.

3. In case not covered by paragraphs 1 and 2 above the terminal benefits will

continue to be admissible as at present under C.C.S (Temporary Service)

Rules, 1965.

b) Death Benefits: In the event of death in harness of temporary/ quasi permanent

Government Servants, their families shall be eligible to family pension and death

gratuity on the same scale as admissible to families of permanent Government Servant

under the C.C.S(Pension) Rules, 1972.

Commutation Pension

A retired official is entitled to commute a fraction of his pension subject to a

maximum of 40% of pension sanctioned.(w.e.f. 1.1.1996)

a) The amount payable shall be calculated as shown below:

Amount of Pension to be commuted x 12 x commutation factor.

b) The commutation factor as per the commutation table on the basis of

age of next birth day shall be taken into account.

Commuted value of Pension is rounded off to the next higher rupee.

The application for commutation of pension are of two categories. A brief description

of each category is given below:

Commutation Without Medical Examination

a) A retiring official on superannuation pension can submit his application in

Form 1-A for commutation of pension before the date of superannuation to

the Head of Office. The application is forwarded to the Accounts Officer.

After verification of the application, the Accounts Officer authorises the



Head of Office to draw the amount of commuted value and disburse to the

retiring official on or after the date following date of retirement.

b) A retired official (as indicated in Rule 12 of( CCS Commutation of

Pension) Rules 1981) can submit his application in Form-1 for

commutation before the expiry of one year to the Head of office. The

application is forwarded to the Accounts Officer. After verification of the

application and receiving the PPO from the Post Office, the Accounts

Officer will issue the authority for the payment of commuted value to the

pension disbursing authority concerned and endorse a copy to the

pensioner with instruction to collect the commuted value from the pension

disbursing authority. A revised PPO for the reduced value of pension is

issued.

Commutation With Medical Examination

All the retired officials listed in Rule 18 of CCS(Commutation of Pension) Rules

1981 will apply in form-2. Commuted Value of Pension will be authorised after

medical examination and verification of the application etc.

Cases where medical examination is necessary:

1) In Superannuation Pension & Retiring Pension, if the application for

commutation is received after one year of date of retirement.

2) Invalid Pension.

3) Compulsory Retitrment Pension.

A Government Servant or a pensioner against whom Departmental or judicial

proceedings are pending is not eligible to commute a part of his pension till the

finalization of the proceedings.

Commutation is permissible on the provisional pension except in cases where the

provisional pension is sanctioned due to pendency of Departmental or judicial

proceedings.



Reduction of Pension after commutation

The reduction in the monthly pension as a result of commutation will take from

i. If pension is drawn from the Pension Disbursing Officer, the date of

receipt of the commutation amount by the pensioner or at the end of 3

months from the date of issue of authority for payment by the Accounts

Officer, whichever is earlier.

ii. If pension is drawn through Bank, the date of credit of the commutation

amount to the applicants account.

iii. If the application for commutation is submitted before superannuation,

from the date following the date of retirement. However, if payment of

commutation amount could not be effected due to administrative reasons

within the first month after retirement , the difference of pension due for

the period, i.e., from the day following the day of retirement and the day

preceding the date of receipt of commutation amount is payable to the

pensioner.

iv. Nomination: Along with the application for commutation Nomination

should be submitted in Form.5. In the event of the death of the pensioner

before receipt of the commutation amount, the commutation amount will

be paid to the nominee. In the absence of a valid nomination, the amount

will be paid as in the case of Death Gratuity, failing which to the legal

heirs.

The part of the pension commuted will be restored after fifteen years from the date

following the date of retirement, if the reduction in pension due to commutation is

effected in the first month pension itself. Otherwise, it will be restored after fifteen

years reckoned from the date of payment of the commutation amount.

W.E.F 2-9-2008

The existing Table of commutation value for pension annexed to the CCS

(Commutation of Pension) Rules, 1981 shall be substituted by a new table at Annex.I

of this O.M. (para 9.2 dt. 2-9-2008)



The revised table of commutation value for pension will be used for all commutations

of pension which become absolute after the date of issue of this O.M. (2-9-2008) In

the case of those pensioners, in whose case commutation of pension became absolute

on or after 1-1-2006 but before the issue of this OM, the pre-revised table of

commutation value for pension will be used for payment of commutation of pension

based on pre-revised pay/pension. Such pensioners shall have an option to commute

the amount of pension that has become additionally commutable on account of

retrospective revision of pay/pension on implementation of the recommendations of

the Sixth Central Pay commission. On exercising such an option by the pensioner, the

revised Table of commutation value for pension will be used for the commutation of

the additional amount of pension that has become commutable on account of

retrospective revision of pay/pension. In all cases where the date of

retirement/commutation of pension is on or after the date of issue of this OM, the

revised table of commutation value for pension will be used for commutation of entire

pension. (para 9.3 dt. 2-9-2008)

S. No. Points raised Clarifications

1 What would be the age to be used for

commutation of additional

commutable pension and which factor

would be used for such additional

commuted value of pension

The age reckoned for calculation of

commuted value of pension at the time

of original application for commutation

of pension will apply for calculation of

commutation value of additional

commutable pension. However, as

mentioned in the OM dated 2-9-2008,

the commutation factor in the revised

Table of commutation value for pension

will be used for commutation of the

additional amount of pension that has

become commutable on account of

retrospective revision of pay/pension

2. From which date the reduction in

pension on account of additional

commutation of pension will take

effect?

Reduction in pension on account of

additional commutation of pension will

be in two stages as per the provisions

contained in Rule 6 of the CCS



(Commutation of Pension) Rules, 1981.

3. What will be the date of restoration of

additional commutation of pension?

The commuted portion of pension shall

be restored after 15 years from the

respective dates of commutation as

provided in Government of India

decision no.1 under rule 10 of CCS

(commutation of Pension) Rules, 1981.

Necessary endorsement should be made

in the PPO.

[Dept. Pen &PW OM No.38/79/2008-P&PW(G) dt. 16-2-2009]



ANNEXURE I

COMMUTATION VALUE FOR A PENSION OF Re.1 PER ANNUM

Age next

birth day

Commutation value

expressed as

number of years

purchase

Age

next

birth

day

Commutation value

expressed as

number of years

purchase

Age

next

birth

day

Commutation value

expressed as number

of years purchase

20 9.188 41 9.075 62 8.093

21 9.187 42 9.059 63 7.982

22 9.186 43 9.040 64 7.862

23 9.185 44 9.019 65 7.731

24 9.184 45 8.996 66 7.591

25 9.183 46 8.971 67 7.431

26 9.182 47 8.943 68 7.262

27 9.180 48 8.913 69 7.083

28 9.178 49 8.881 70 6.897

29 9.176 50 8.846 71 6.703

30 9.173 51 8.808 72 6.502

31 9.169 52 8.768 73 6.296

32 9.164 53 8.724 74 6.085

33 9.159 54 8.678 75 5.872

34 9.152 55 8.627 76 5.657

35 9.145 56 8.572 77 5.443

36 9.136 57 8.512 78 5.229

37 9.126 58 8.446 79 5.018

38 9.116 59 8.371 80 4.812

39 9.103 60 8.287 81 4.611

40 9.090 61 8.194



Sub:- Voluntary Retirement from BSNL Service

The undersigned is directed to say that consequent upon insertion of sub-rule 37-A

(11A) in Central Civil Services (Pension) rules, 1972 vide Central Civil Services

(Pension) Amendment Rules, 2002 notified in the Gazette of India on 28-12-2002, a

doubt arose as to whether Rule 48 and Rule 48-A of the same rules would continue to

be applicable to the employees permenently absorbed in BSNL. It also required to be

clarified as to whether the benefit of rule 48-B of CCS (Pension) Rules would be

available to the govt. employees absorbed in BSNL covered under Rule 37-A(11A).

Accordingly, all Telecom. Circle offices were advised to withhold further processing

of voluntary retirement cases till further orders vide this office letter no.17-29/2004-

Pers.II dated 20-7-2004.

After examining the matter in consultation with BSNL finance and Department of

Telecom, it is hereby clarified that after notification of CCS(Pension) amendment

rules, 2002, rule 48 and rule 48B of CCS (Pension) rules, 1972 are no more applicable

to the Govt. employees absorbed in BSNL and consequently all voluntary reitrement

requests of such employees are now covered under the provisions of sub-rule 37-

A(11A) of the same rules.

As regards benefit of additional qualifying service as available under Rule 48-B of

CCS(Pension) Rules, 1972, it is clarified that the same is not available to the

employees retiring under sub-rule 37-A(11A) of CCS(Pension) Rules.

Accordingly, Government employees absorbed in BSNL shall be required to submit

their application/notice afresh under Rule 37A(11A) of the same rules for

consideration and acceptance by the appointing authority.

(BSNL HQ No.31-94/2004-Pen/BSNL dt. 8-10-2004)

Family Pension

Receipt of Pension Papers



1 On receipt of the intimation about the death of an employee while in service

the Head of office will ascertain whether any Gratuity or family pension will

be payable.

2 If the deceased employee is eligible for Death Gratuity, the Head of office

shall address the concerned person to whom the amount is payable as per

rules, in form-10 or form-11 as the case may be for making a claim in form-

12.

3 If the family of the deceased employee is eligible for family pension, a claim

in form-14 is obtained from the family by addressing (form-13) to make a

claim. Where the family is residing in the place of duty of Head of office, the

forms and documents, if possible, are obtained personally and for this purpose

the services of Welfare Officer can be utilised.

4 If the deceased employee was an allottee of Government accomodation,

Estates Officer should be addressed for issue of No Demand Certificate.

Verification of Service

The Service Book of the deceased employee is verified to see whether the certificates

of verification are accepted as verified on the basis of the available entries in the

service book. While accepting such periods, it should be ensured that the service was

continuous and was not forfeited on account of dismissal/ removal or resignation from

service or participation in strike.

(a) For the purpose of determination of emoluments for family pension and

Gratuity the verification of correctness of emoluments is confined for a

maximum period of one year preceding the date of death of employee.

Cases of incomplete service records

1. Family Pension

2. If the deceased employee rendered more than one year but less than 7

years: The service and emoluments for the last one year of service is

verified and the amount of family pension is determined.



3. If the service rendered is more than 7 years: The service for the last 7

years and emoluments for the service rendered in last one year should be

verified and accepted and family pension is determined.

4. If the service rendered is more than 7 years and the service for the last 7

years is not capable of being verified and accepted, but the service for the

last one year is capable of being verified and accepted :

Pending verification of services for 7 years, family pension is calculated.

The services for the last 7 years should be verified and accepted within the next two

months and the amount of Family Pension at enhanced rate and the period for which it

is payable should be determined.

a) Death Gratuity

1) If the deceased employee rendered more than 5 years of service but less

than 20 years of qualifying service and the spell of the last 5 years has

been verified and accepted: The amount of gratuity will be equal to 12

times of emoluments. Where the verified and accepted service is less than

5 years of qualifying service the gratuity will be the amount as indicated in

the table reproduced in Para No.9.1

2) If the deceased employee had rendered more than 24 years of service and

entire service is not capable of being verified and accepted, but the service

for the last 5 years has been verified and accepted, the gratuity equal to 12

times of the emoluments is allowed on provisional basis. Final amount of

gratuity should be determined on the acceptance and verification of the

entire service, to be done within a period of 6 months of the issue of the

authority of provisional gratuity and the balance, if any, will be authorised

to the beneficiaries.

Admissibility: Family Pension is admissible on the death of a Government Servant

while in service after having put in one years service, and also to those with less than

one years service if proper medical fitness certificate for appointment has been

submitted. It is also admissible in the case of death of a pensioner, receiving any

pension or compassionate allowance.



Definition of Family:- Family in relation to a Government Servant for the purpose

of Family Pension means:-

i) Wife or Husband (even in cases where the marriage took place

after retirement),

ii) A judicially separated wife/ husband if such separation was not

granted on the ground of adultery and the surviving spouse was not

held guilty of adultery;

iii) Sons, unmarried daughters, Widowed and divorced daughters,

legally adopted son/ unmarried daughter born/ adopted before or

after retirement, who have not attained 25 years of age;

iv) Posthumous child and

v) Parents who were wholly dependent on the Government Servants

when he/she was alive provided the deceased employee had not left

behind a widow /widower, eligible son or daughter or a

widowed/divorced daughter, who will have a prior claim to the

family Pension in the order indicated.

It has since been decided by the Government that the income criteria in respect of

parents and widowed/divorced daughters will be that their earning is not more than

Rs. 2,550/- per month. The parents will get family pension at 30% of basic pay of the

deceased employee subject to a minimum of Rs. 1,275/- per month. They also will

have to produce an annual certificate to the effect that their earning is not more than

Rs.2,550 per month. Further, the family pension to the widowed/ divorced daughters

will be admissible till they attain the age of 25 years or upto the date of her re-

marriage, whichever is earlier.

It has also been decided by the Government on the basis of the recommendations of

the Fifth Central Pay Commission and in partial modification of this Departments

O.M No. 1(26)-P&PW/90-(E). dated 18.1.1993 that the Family Pension in respect of

sons /daughters (including widowed/ divorced daughter) will be admissible subject to

the condition that the payment should be discontinued/ not admissible when the

eligible son/ daughter starts earning a sum of Rs. 2,550/- per month from employment



in Government, the private sector, self employment, etc. It is further clarified that the

family pension to the son/daughter will be admissible till he/ she attains 25 years of

age or up to the date of his/ her marriage/ re-marriage whichever is earlier. There is

however, no change in the provisions about admissibility of family pension in respect

of sons/ daughters suffering from any disorder or disability of mind or who is

physically crippled or disabled as mentioned in the O.M dated 18.1.1993.

Admissibility of family pension to parents and widowed/ divorced daughter will be

effective from 1.1.1998 subject to fulfilment of other usual conditions. The cases

where family pension has already been granted to sons/ daughters after 1.1.1998

before issue/ implementation of this OM without imposition of earning condition need

not be reopened.

(G.I Dept. of Pen & Pen.Welfare O.M No. 45/51/97-P&PW(E) dtd. 5.3.98)

Parents of Government servants who died prior to 1-1-98 will also be entitled to

family pension, w.e.f. 1-1-98. The family pension wherever admissible to parents, the

mother will receive first and after her death, the father will receive the family pension.

Parents are eligible for family pension at the ordinary rate only i.e. 30% of the pay of

the deceased employee.

Payment of family pension is to be discontinued in the event of the eligible

sons/daughters (including widowed/divorced daughters) getting married/remarried or

on their earning a monthly income exceeding Rs.2550 or on attaining 25 years of age

whichever is earlier.

It has been decided that if the marriage of the disabled daughter is legally annulled,

she would be eligible for family pension for life from the date her marriage stands

annulled, subject to the following conditions:-

(i) Divorce is valid in law

(ii) Divorced daughter comes back to her parental home.

(iii) Disability is certified by an appropriate authority as required under

the rules.

(iv) The requirement regarding submission of the requisite certificates

as laid down under rule 54(6) of the CCS (Pension) rules for



becoming eligible to family pension for life shall continue to

remain operative.

Similarly, the widowed disabled daughter would also be eligible for family pension

for life from the date of death of her husband, subject to fulfillment of above

mentioned conditions, as applicable in her case.

(Deptt. of Pension & P.W. No.45/51/97-P&PW(E) Vol.II dt. 25-7-2001)

Payment of family pension is to be allowed to the judicially separated spouse of the

deceased G.S. after his/her children cease to be eligibility for family pension till his/

her death or remarriage whichever is earlier.

(Deptt. of Pension & P.W. No.1/6/98-P&PW(E) dt. 5-7-1999)

Eligibility of divorced /widowed daughter for grant of Family Pension

The undersigned is directed to say that as per Clauses (ii) and (iii) of sub-rule (6) of

Rule 54 of the CCS (Pension) Rules, 1972 read with clause (b) of para 7.2 of this

Departments O.M. No. 45/86/97-P& P W(A)-Part I, dated the 27th October, 1997,

son/daughter including widowed/divorced daughter shall be eligible for grant of

family pension till he/she attains the age of 25 years or up to the date of his/her

marriage/remarriage, whichever is earlier (subject to income criterion to be notified

separately). The income criterion has been laid down in this Departments

O.M.No.45/51/97-P&PW(E), dated the 5th

March, 1998 according to which, to be

eligible for family pension, a son/ daughter (including widowed/divorced daughter)

shall not have an income exceeding Rs.2550 per month from employment in

Government, the private sector, self employment, etc. Further order were issued vide

this Departments O.M. No.45/51/97-P&PW(E) (Vol.II), dated the 25th July 2001

regarding eligibility of disabled divorced/widowed daughter for family pension for

life subject to conditions specified therein.

2. Government has received representations for removing the condition of age limit

in favour of divorced/widowed daughter so that they become eligible for family

pension even after attaining the age limit of 25 years. The matter has been under

consideration in this Department for some time. In consultation with the Ministry of

Finance, Department of Expenditure and the Ministry of Lay and Justice, Department

of Legal affairs etc., it has now been decided that there will be no age restriction in



the case of the divorced/widowed daughter who shall be eligible for family pension

even after their attaining 25 years of age subject to all other conditions prescribed in

the case of son/daughter. Such daughter, including disabled divorced/widowed

daughter shall, however, not be required to come back to her parental home as

stipulated in para 2(ii) of this Departments O.M. dated the 25th July, 2001, which

may be deemed to have been modified to that extent.

(Dept. of Pen. & PW OM No.1/19/03-P & PW (E) dated 25-8-2004)

Extension of scope of family pension to unmarried daughters of Central

Government servants/pensioners

The undersigned is directed to say that as per existing provisions under clauses (ii)

and (iii) of sub-rule (6) of Rule 54 of the C.C.S. (pension) Rules, 1972, read with of

para 7.2 (b) of this Departments O.M. No.45/86/97-P&PW(A)-Part I dated the 27th

October 1997, son/daughter including widowed/divorced daughter is eligible for grant

of family pension till he/she attains the age of 25 years or up to the date of his/her

marriage/remarriage, whichever is earlier subject to income criterion laid sown in this

Departments O.M.No.45/51/97-P&PW(E) dated the 5th March 1998 which stipulates

that a son/daughter, including widowed/divorced daughter, shall not have an income

exceeding Rs.2550/- per month from employment in Government, the private sector

and self employment, etc., to be eligible for family pension. Orders were also issued

vide this Departments O.M.No.45/51/97-P&PW (E) (Vol. II) dated 25th July 2001

regarding eligibility of disabled divorced/widowed daughter for family pension for

life subject to conditions mentioned therein. Further, orders were issued for making

the widowed/divorced daughter eligible for family pension vide this Departments

O.M. of even number dated 25th

August, 2004.

2. The staff side of National Council (JCM) had raised the issue of extension of

scope of family pension to unmarried daughters of the government

servants/Pensioners even after attaining the age of 25 years at par with the

widowed/divorced daughters, which has been agreed to in principle. It has,

accordingly, been decided that the unmarried daughters beyond 25 years of age shall



also be eligible for family pension at par with the widowed/divorced daughters subject

to other conditions being fulfilled. Grant of family pension to

unmarried/widowed/divorced daughters shall be payable in order of their date of birth

and younger of them will not be eligible for family pension unless the next above her

has become ineligible for grant of family pension. It is further clarified that family

pension to unmarried/widowed/divorced daughters above the age of 25 years shall be

payable only after the other eligible children below the age of 25 years have ceased to

be eligible to receive family pension and that there is no disabled child to receive the

family pension.

(Dept. of Pension & Pensioners welfare No.1/19/03-P&PW(E) dt. 6-9-2007)

WE.F. 1-1-2006

For the purpose grant of Family Pension, the Family shall be categorized as under:

Category-I

(a) Widow or widower, up to the date of death or re-marriage, whichever is

earlier;

(b) Son / daughter (including widowed daughter), up to the date of his/her

marriage/re-marriage or till the date he/she starts earning or till the age of 25

years, whichever is the earliest

Category-II

(c) (c) Unmarried/Widowed/Divorced daughter, not covered by Category I above,

up to the date of marriage/re-marriage or till the date she starts earning or up

to the date of death whichever is earliest

(d) (d)Parents who were wholly dependent on the Government servant when

he/she was alive provided the deceased employee had left behind neither a

widow nor a child.

Family pension to dependent parents, unmarried/divorced/widowed daughter will

continue till the date of death.

Family pension to Unmarried/widowed/divorced daughters in Category II and

dependent parents shall be payable only after the other eligible family members in



category I have ceased to be eligible to receive family pension and there is no

disabled child to receive the family pension. Grant of family pension to children in

respective categories shall be payable in order of their date of birth and younger of

them will not be eligible for family pension unless the next above him/her has become

ineligible for grant of family pension in that category. (para 8.4 of OM dt. 2-9-2008)

The dependency criteria for the purpose of family pension shall be the minimum

family pension along with dearness relief thereon (para 8.5 dt. 2-9-2008)

The childless widow of a deceased Government employee shall continue to be paid

family pension even after her remarriage subject to the condition that the family

pension shall cease once her independent income from all other sources becomes

equal to or higher than the minimum prescribed family pension in the Central

Government. The family pensioner in such cases would be required to give a

declaration regarding her income from other sources to the pension disbursing

authority every six months. (para 8.6 dt. 2-9-2008)

It has now been decided to include the dependent disabled siblings (i.e.

brothers/sisters) of Government servants/pensioners in the definition of family for

the purpose of eligibility for family pension. Such disabled siblings shall be eligible

for family pension for life in the same manner and following the same disability

criteria, as laid down in rule 54 of the CCS (Pension) rules, 1972 in the case of

son/daughter of Government employees/Pensioners suffering from any disorder or

disability of mind (including mentally retarded) or physically crippled or disabled, so

as to render him/her unable to earn a living even after attaining the age of 25 years.

[Dept. of Pen. & PW no.1/15/2008-P&PW(E) dt. 17-8-2009]

Rates of family pension. (W.E.F 1.1.96)

Last Pay or Average Emoluments whichever is higher--- 30%

Minimum-- Rs. 1,275/- [CDA scale w.e.f. 1-4-2004 =Rs.1913]

Maximum Rs. 9,000/- [CDA scale w.e.f. 1-4-2004 =Rs.13500]

Last Pay/ Average Emoluments = Basic Pay, NPA & Stagnation Increment

[CDA Scale (1-4-2004) Basic Pay, NPA & Stagnation Increment +

Dearness Pay (50% of Basic Pay)]



[W.E.F. 1-1-2006 Pay drawn in the prescribed pay band plus the applicable grade pay

( the pay in the pay scale in the case of HAG + and above)]

The family pension shall not be less than 30% of the minimum pay (not NPA) in the

revised scale introduced w.e.f. 1-1-96 of the post last held by the pensioner/deceased

Government servant.

W.E.F. 1-1-2006

Minimum Rs.3500 Maximum Rs.27000 (30% of highest Pay Rs.90000)

(para 8.1 of OM dt. 2-9-2008)

Enhanced rates of family pension

i) A higher rate of family pension is payable for a period of 7 years

from the date following the date of death or for a period up to the

date on which the deceased Government Servant would have

attained the age of 65 years (67 years in cases where government is

to retire at the age of 60 years in pursuance of the notification

No.GSR 248(E), DATED 13-5-1998 AND NOT WHERE

Government servant has already retired at the age of 58 years or

would have retired at the age of 58 years but for his premature

demise) had he survived whichever is earlier, if the Government

servant has rendered not less than 7 years of continuous service.

ii) In the case of death while in service the family will be entitled for

higher rate of family pension at the rate of 50 % of basic pay or

twice the family pension whichever is less.

iii) In the event of death of Government servant after retirement the

family is entitled for higher rate of family pension at the rate of

50% of basic pay or twice the family pension or normal pension

whichever is less.

W.E.F. 1-1-2006



The enhanced family pension under Rule 54(3)(a)(i) shall be payable to the family of

a Government servant who dies in service from the date of death of the Government

servant for a period of ten years, without any upper age limit. (para 8.2 of OM dt. 2-9-

2008)

Whether the period of 10 years for payment

of enhanced family pension would also apply

in the case of a Government servant who dies

before 1-1-2006 and in respect of whom the

family was receiving enhanced family

pension as on 1-1-2006.

Yes. The period of 10 years for payment of

enhanced family pension will count from the

date of death of the Government servant.

These orders will, however, not apply in a

case where the period of seven years for

payment of enhanced family pension has

already been completed as on 1-1-2006 and

the family was in receipt of normal family

pension on that date.


The quantum of family pension available to the old family pensioners shall be

increased as follows:-

Age of family pensioner Additional quantum of family pension

From 80 years to less than 85 years 20% of basic family pension




100 years or more 100% of basic family pension

The pension sanctioning authorities should ensure that the date of birth and the age of

a family pensioner is invariably indicated in the Form 3 (regarding details of family)

and the pension payment order to facilitate payment of additional family pension by

the pension disbursing authority as soon as it becomes due. The amount additional

family pension will be shown distinctly in the pension payment order (para 8.3 of OM

dt. 2-9-2008)



The additional quantum of family pension, on attaining the age of 80 years and above,

would be admissible from the 1st day of the month in which his date of birth falls


DEATH GRATUITY

In the event of death in harness, the Death Gratuity shall be admissible at the

following rates:-

Emoluments = Average Emoluments / Last Pay whichever is higher

Plus DA on the date of death.

Average Emoluments/ Last Pay = Basic Pay, NPA & Stagnation Increment.

Length of Service Rate of Gratuity

Less than one year 2 times of emoluments.

One year or more but less than 5

years.

6 times of emoluments.

5 years or more but less than 20

years.

12 times of emoluments.

20 years or more Half of emoluments for every completed six monthly

period of qualifying service subject to a maximum of

33 times emoluments provided that the amount of

Death Gratuity shall in no case, exceed 3.5 Lakh

rupees w.e.f. 1.1.96. [Rs.10 Lakhs, w.e.f. 1-1-2006

(para 6.1 of OM dt. 2-9-08)]

Definition of Family: For the purpose of payment of death gratuity, family in

relation to a Government servant means:

i) Wife or wives (including judicially separated),

ii) Husband(including judicially separated),

iii) Sons/stepsons/adopted sons,

iv) Unmarried daughters/ stepdaughters/adopted daughters,

v) Widowed daughters/ stepdaughters/ adopted daughters,

vi) Father including adoptive father if personal law permits adoption;



vii) Mother including adoptive mother if personal law permits adoption;

viii) Brothers/ step brothers below 18 years of age;

ix) Unmarried/ Widowed sisters including step-sisters;

x) Married daughters; and

xi) Children of pre-deceased son. (Rule 50(6))

Persons to whom gratuity is payable.

i) Where a valid nomination exists:- If the nominee- family member or

members are surviving and are eligible to receive the gratuity, payment

will be made to all such nominees in the shares indicated in the

nomination. Eligibility will have to be checked whether the nominees

fulfill the conditions as on the date of death. For example, brother

attaining the age of 18 years or sister getting married before death of

the official becomes ineligible. If these events take place after the

death of the official but before the payment is made, their eligibility

will not be affected. If all the nominees are alive and are eligible,

payment will be made as per the nomination without any difficulty.

ii) Where a part of the nomination only is valid:- If only some members

of the family become ineligible and the others nominated are eligible,

the share/ shares of the ineligible members will be paid equally to the

eligible nominees.

iii) Where there is no valid nomination:- In cases where the entire

nomination becomes invalid due to the nominee(s) as also the alternate

nominee(s) either pre-deceasing the official or becoming ineligible or

where no nomination was made, payment will be made as under:

a) in equal shares to the surviving members of the family,

viz., spouse, sons and daughters .

b) if there are no surviving members as in (a) above, to other

members of the family as in (v) to (xi) of Para 9.2 above.



After obtaining the claim/ claims from the family, Form-18 is completed. It is

sent to Accounts Officer with a covering letter in Form-19 alongwith the

documents listed therein (from-19) within one month of the claim.

The DOT Cell(CCA) will issue a sanction letter in favour of claimant or claimants

indicating the amount of provisional family pension and 100% of gratuity. The

amount recoverable from the gratuity is also indicated.

After the issue of sanction letter, the provisional family pension and gratuity after

deducting the dues are drawn & disbursed by the DOT Cell (CCA) to the

claimant/claimants

On receipt of the papers requisite checks are exercised and section I of Part-II of

Form-18 is completed. The amount of balance of gratuity is determined after

adjusting all dues. Then DOT Cell to draw & disburse the balance of gratuity to

the claimant/ claimants. The fact of issue of pension payment order is reported to

the Head of Office.

When both husband and wife are Government servants

On the death of both husband & wife, the children of the deceased couple will be

granted two F.P. subject to the following limits: - (1-1-1996)

1. If both or one of the family pension is payable at the higher rate-

Maximum Rs.15000

2. If both the F.Ps. are payable at the normal rate Rs.9000

(No.45/1/2001-P&PW(E) dt. 30-6-2005)

Payment of benefits when an officials where-abouts not known.

If an employee is missing and his whereabouts are not known, his family can be paid

the retirement benefits. For this purpose, the family should have lodged a complaint

with the Police Station concerned and obtained a report that the employee has not

been traced after all efforts had been made.

Benefits payable in the first instance.: Salary due, leave encashment due and the

amount of GPF.



After one year.: i) Death Gratuity limited to the amount of Retirement Gratuity; (ii)

Family Pension from the date of FIR or expiry of leave whichever is later ; and (iii)

Accumulations from the Savings Fund under Group Insurance Scheme.

The nominees/ dependants should furnish an Indemnity Bond that all payments shall

be adjusted against the payment due to the employee in case he/ she appears on the

scene at a later date and makes a claim.

After death is established or seven years.:

i) Difference between death gratuity and retirement gratuity;

ii) Insurance cover admissible under Group Insurance Scheme;

iii) Deposit Linked Insurance Scheme(If conditions are satisfied.)

The claimants should produce proper and indisputable proof of death or Decree of the

Court that the employee concerned should be presumed to be dead as laid down in

Section of 108 of the Indian Evidence Act.

Subscriptions for one year and insurance premium alone for the next six years will be

recovered with interest from the amounts payable on account of Savings Fund and

Insurance Fund respectively under Group Insurance Scheme.

If an employee dies while in service, his family will be eligible for immediate

monetary relief of three months pay or Rs.8000, which ever is less in the form of

advance(payable only to the person, in the same manner as payment of death

gratuity), which is adjustable within 6 months from arrears of pay & allowances,

leave salary, death gratuity, balance in GPF or any other payment due in respect of

deceased official.

Benefits from Welfare Fund

Immediate financial assistance to

the family of BSNL employees

who die in Harness.

Rs.7000/- irrespective of the status of the employee i.e.

whether he was a permanent or temporary official or

temporary status Mazdoor.

The basic pay of the deceased employee should not be

more than Rs.12750/-(CDA Pay-scale) on the date of



his/her death.

Financial assistance in cases of death occurred due to attack by robbers, terrorist, riots

etc.,

(i) Death due to attack by robbers, terrorist, riots etc., while on duty Rs.10000/-

(ii) Death due to attack by robbers, terrorists riots etc., while not on duty Rs.5000/-

In case of Temporary Status Mazdoors and casual labourers also the above amount is

to be paid to the bereaved families.

The financial assistance indicated above will be in addition to the immediate relief of

Rs.7000/- and lump sum compensation wherever applicable as provided under the

companys orders.

5.Financial Assistance in case of death and Booking of expenditure thereof:- It has

been decided that henceforth immediate financial assistance to the family of deceased

employee be raised from Rs.7000/- to Rs.10000 and expenditure may continue to be

met from the Welfare Fund.

These orders shall be effective from the financial year 2006-07.

(BSNL HQ No.12-1/2005-BSNL (Welfare) dt. 24-4-2006)]

4. Financial assistance in case of death: It has been decided that the immediate

financial assistance of Rs.15000 in case of death of employee be paid immediately to

the family of deceased employee from the administrative fund, if the welfare fund is

not available,. It can be recouped later from the Welfare fund

[BSNL HQ No.12-1/2009-BSNL(WL) dt. 1-6-2009)

Dearness relief to re-employed pensioners and employed family pensioners:-

(1) Dearness Relief at the rates applicable from time to time shall be admissible

on Family Pension.

(2) Re-employed pensioners (who held posts below Group A and those Ex-

servicemen who held posts below the ranks of commissioned officers at the

time of their retirement ) will be entitled to dearness relief on their pension.



(3) Re-employed pensioners(who held Group-A post or posts of the ranks of

commissioned officers at the time of their retirement ) will not be entitled to

dearness relief on pension.

POINTS OF DOUBT CLARIFICATION

Who will make the payment of:

i)DCRG

ii)Commuted value of pension

iii)Provisional pension

iv)Leave encashment

v)Accumulation in the CGEGIS80 &

CGEIS77

vi)GPF final payment on

superanuation/retirement

In respect of item no.(i) to (iii) payments will be

made by the DOT Cell for the employees whether

on deemed deputation or absorbed in BSNL.

For item no.(iv) to (vi) payment will be made by

the DOT Cell to employees who are on deemed

deputation but BSNL will make payments to the

employees who are absorbed in BSNL.

(DOT Lr.No.7-1/2000-TA-I/17 dt. 18/10/2000)

Central Civil Services (Pension)Rules,1972

37A. Conditions for payment of pension on absorption consequent upon

conversion of a Government Department into a Central Autonomous body or a

Public sector Undertaking:-

(1) On conversion of a department of the Central Government into a public sector

undertaking or an autonomous body, all government servants of that Department shall

be transferred en-masse to that public sector undertaking or autonomous body, as the

case may be, on terms of foreign service without any deputation allowance till such

time as they get absorbed in the said undertaking or body, as the case may be, and

such transferred government servants shall be absorbed in the public sector under

taking or autonomous body, as the case may be, with effect from such date as may be

notified by the government.

(2) The central government shall allow the transferred government servants an

option to revert back to the government or to seek permanent absorption in the public

sector undertaking or autonomous body, as the case may be.



(3) The option referred to in sub-rule(2) shall be exercised by every transferred

government servant in such manner and within such period as may be specified by the

government.

(4) The permanent absorption of the government servants as employees of the

public sector undertaking or a autonomous body shall take effect from the date on

which their options are accepted by the government and on and from the date of such

acceptance, such employees shall cease to be government servants and they shall be

deemed to have retired from government service.

(5) Upon absorption of government servants in the public sector undertaking or

autonomous body, the posts which they were holding in the government before such

absorption shall stand abolished.

(6) The employees who opt to revert to government service shall be re-deployed

through the surplus cell of the government.

(7) The employees including quasi-permanent and temporary employees but

excluding causal labourers, who opt for permanent absorption in the public sector

undertaking or autonomous body, shall on and from the date of absorption, be

governed by the rules and regulations or bye laws of the public sector undertaking or

autonomous body, as the case may be.

(8) A permanent government servant who has been absorbed as an employee of a

public sector undertaking or autonomous body shall be eligible for pensionary

benefits on the basis of combined service rendered by him in the government and in

the public sector undertaking or autonomous body in accordance with the formula for

calculation of pension/family pension under these rules as may be in force at the time

of his retirement from the public sector undertaking or autonomous body, as the case

may be.

[ For at his option, to receive prorata retirement benefits for the service rendered

under the Central Government in accordance with orders issued by the Central

Government.(Dept. of P & P.W.No.4/66/2005-P&PW(D) dt. 14-10-2005)]



EXPLANATION:- The amount of pension/family pension of the absorbed

employee on superannuation from public undertaking/autonomous body shall be

calculated in the same way as would be the case with a Central Government

servant, retiring on superannuation, on the same day;

(9) The pension of an employee under sub-rule(8) shall be calculated on the basis

of his last ten months average pay.

(10) In addition to pension or family pension, as the case may be, the employees

shall also be eligible to dearness relief as per industrial dearness allowance pattern.

(11) The benefits of pension and family pension shall be available to quasi-

permanent and temporary transferred government servants after they have been

confirmed in the public sector undertaking or autonomous body.

(11.A) A permanent Government servant absorbed in a public sector

undertaking/autonomous body or a temporary/quasi permanent government servant

who has been confirmed in the public sector undertaking/ autonomous body

subsequent to his absorption therein, shall be eligible to seek voluntary retirement

after completing 10 years of qualifying service with the government and autonomous

body/public sector undertaking taken together, and he/she shall be eligible for pro-rata

pensionary benefits on the basis of combined qualifying service

(12) The Central government shall create a Pension fund in the form of a trust and

the pensionary benefits of absorbed employees shall be paid out of such pension fund.

(13) The Secretary of the administrative Ministry of the public sector undertaking

or autonomous body shall be the chairperson of the Board of Trustees which shall

include representatives of the Ministries of finance, Personnel, Public grievances and

Pensions, Labour, concerned public sector undertaking or autonomous body and their

employees and experts in the relevant field to be nominated by the central

government.



(14) The procedure and the manner in which pensionary benefits are to be

sanctioned and disbursed from the pension fund shall be determined by the

government on the recommendation of the Board of trustees.

(15) The government shall discharge its pensionary liability by paying in lump sum

as a one time payment to the Pension fund the pro rate pension or service gratuity and

retirement gratuity for the service rendered till the date of absorption of the

government servant in the public sector undertaking or autonomous body.

(16) The manner of sharing the financial liability on account of payment of

pensionary benefits by the public sector undertaking or autonomous body shall be

determined by the government.

(17) Lump sum amount of the pro rate pension shall be determined with reference

to commutation Table laid down in central Civil services (commutation of Pension)

rules,1981.

(18) The public sector undertaking or autonomous body shall make pensionary

contribution to the pension fund for the period of service to be rendered by the

concerned employees under that undertaking or body at the rates as may be

determined by the Board of trustees so that the pension fund shall be self-supporting.

(19) If, for any financial or operational reason, the trust is unable to discharge its

liabilities fully from the pension fund and the public sector undertaking or

autonomous body is also not in apposition to meet the shortfall, the government shall

be liable to meet such expenditure and such expenditure shall be debited to either the

fund or to the public sector undertaking or autonomous body, as the case may be.

(20) Payments of Pensionary benefits of the pensioners of a government

Department on the date of conversion of it into a public sector undertaking or

autonomous body shall continue to be the responsibility of the government and the

mechanism for sharing its liabilities on this account shall be determined by the

government.



(21) Nothing contained in sub-rules(12) to (20) shall apply in the case of

conversion of the Departments of Telecom services and Telecom Operations into

Bharat sanchar Nigam Limited, in which case the pensionary benefits including

family pension shall be paid by the government.

(22) For the purposes of payment of pensionary benefits including family pension

referred to in sub-rule(21), the government shall specify the arrangements and manner

including the rate of pensionary contributions to be made by Bharat sanchar Nigam

Limited to the government and the manner in which financial liabilities on this

account shall be met.

(23) The arrangements under sub-rule(22) shall be applicable to the existing

pensioners and to the employees who are deemed to have retired from the government

service for absorption in Bharat sanchar Nigam Limited and shall not apply to the

employees directly recruited by the Bharat sanchar Nigam Limited for whom it shall

devise its own pension scheme and make arrangements for funding and disbursing the

pensionary benefits.

(24) Upon conversion of a Government department into a public sector undertaking

or autonomous body:-

(a) the balance of provident fund standing at the credit of the absorbed employees

on the date of their absorption in the public under taking or autonomous body

shall, with the consent of such undertaking or body, be transferred to the new

Provident fund account of the employees in such undertaking or body, as the

case may be;

(b) earned leave and half pay leave at the credit of the employees on the date of

absorption shall stand transferred to such undertaking or body, as the case may

be;

the dismissal or removal from service of the public sector undertaking or

autonomous body of any employee after his absorption in such undertaking or

body for any subsequent misconduct shall not amount to forfeiture of the

retirement benefits for the service rendered under the government and in the



event of his dismissal or removal or retrenchment the decisions of the

undertaking or body shall be subject to confirmation by the Ministry

administratively concerned with the undertaking or body.

(25) In case the government disinvests its equity in any public sector un

chapter-3 on pension , gratuity, bsnl gsli

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