chapter-3 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 authority‘s 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 ½ 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 applicant‘s 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 year‘s

purchase

Age

next

birth

day

Commutation value

expressed as

number of year‘s

purchase

Age

next

birth

day

Commutation value

expressed as number

of year‘s 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 year‘s service, and also to those with less than

one year‘s 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 Department‘s

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

Department‘s 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 Department‘s

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 Department‘s 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 Department‘s 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 Department‘s 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

Department‘s 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 Department‘s 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 Department‘s

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 official‟s 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

company‘s 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 CGEGIS‘80 &

CGEIS‘77

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 undertaking

or autonomous body to the extent of fifty-one percent or more, it shall specify

adequate safeguards for protecting the interests of the absorbed employees of such

public sector undertaking or autonomous body.

(26) The safeguards specified under sub-rule(25) shall include option for voluntary

retirement or continued service in the undertaking or body, as the case may be, or

voluntary retirement benefits on terms applicable to government employees or

employees of the public sector undertaking or autonomous body as per option of the

employees, assured payment of earned pensionary benefits with relaxation in period

of qualifying service, as may be decided by the government.

[(Department of Pen. and PW) (The Gazette of India-Extraordinary)

No.4/61/99-P&PW(D) dt. 30-9-2000 & No.4/61/99-P&PW(D) dt. 28-12-

2002]S.O.1821(E). In exercise of the powers conferred by the proviso to article

309 and clause (5) of Article 148 of the constitution and after consultation with

the Comptroller and Auditor General of India in relation to persons serving in

the Indian Audit and Accounts Department and in supersession of the

notification number S. O. 1487(E) dated 14th

October, 2005 except things done or

omitted to be done before such supersession, the President herby makes the

following rules further to amend the Central Civil Services (Pension) Rules,

1972, namely:-

1. (1) These rules may be called the Central Civil Services (Pension)

(Amendment) Rules, 2007.

(2) They shall be deemed to have come into force from the 30th

day of

September, 2000 i.e. date from which provision of pro-rata pension was withdrawn.

2. In the Central Civil Services (Pension) Rules 1972, in rule 37A, for sub-

rule(8), the following sub rule shall be substituted namely:-



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 or at his option to receive pro-rata retirement benefits for the service rendered

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

Government.

Explanation:- The amount of pension/ family pension of the absorbed employee on

superannuation from Public Sector Undertaking/Autonomous Body shall be

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

retiring on superannuaion, on the same day.

Explanatory memorandum

Option to draw pro-rata monthly pension available to the Government servants who

were transferred and absorbed in Public Sector Undertakings or autonomous Bodies

set up consequent upon conversion of a Government Department under Department of

Pension and Pensioner‘s Welfare‘s O.M.No.41/18/87-P & PW (D) dated 5-7-1989

was withdrawn w. e .f. 30-9-2000 vide Notification No. S.O. 904(E) dated 30-9-2000.

The same provision was restored through Notification No. S. O. 1487(E) dated 14-10-

2005 w. e. f. 14-10-2005. The same provision has been restored through this

notification w. e. f. 30-9-2000. This is certified that no one shall be adversely affected

by giving retrospective effect to this notification.

(Dept. Pen. &PW Notification F.No.4/66/2005-P& PW (D) dated 25-10-2007)

Applicability of revised rules of CCS (Pension )Rules 1972 consequent to the 6th

CPC to the Government employees absorbed in BSNL –Clarification -reg

I am directed to refer to this Department‘s letter of even number dated 4th

/ 15th

May,

2009 to give the following clarification on the applicability of revised rules of CCS

(Pension) Rules, 1972 consequent to 6th

CPC to the Government employees absorbed



in BSNL with regard to emoluments, qualifying service, family pension, DCRG and

commutation of pension:-

Pension

1.Emoluments: The emoluments for the purpose of all pensionary benefits (other

than gratuity) shall be equal to Basic pay plus Dearness Pay (wherever applicable).

The para 5.2 and 5.3 of DOP & PW shall be applicable from 1-1-2006 subject to

provisions of para 2 of DOP & PW‘s OM no.38/37/08-P&PW(A) dated 11-12-2008.

2. Qualifying Service: The revised rules shall be applicable from 2-9-2008

3. Minimum Pension: The present method of calculation of minimum pension which

is 50% of the minimum of the lowest pay scale shall continue.

4. Minimum Family Pension: The minimum family pension shall be 50% (should be

30%) of the minimum of the lowest pay scale

DCRG

1. Emoluments: Emoluments for the purpose of all types of gratuities shall be equal

to Basic Pay plus Dearness Pay (Wherever applicable) plus IDA (as applicable)

2. Enhancement in maximum limit of DCRG: The enhanced limit for all kinds of

gratuities may be made applicable from 1-1-2006

Commutation of Pension

1. For those retiring between 1-1-2006 to 1-9-2008 (both inclusive):

Cases have not become absolute as on 2-9-2008: New table shall be made

applicable with prevalent pay scale as on date of retirement

Cases which have already become absolute: The additional amount of commutable

pension due to revision of pay shall be commuted in accordance with new table.

2. For those retiring on or after 2-9-2008: New commutation table shall apply

with prevalent pay scale as on date of retirement

This issues with the approval of the competent authority

(DOT Lr. No.40-31/2008-Pen(T) dt. 12-8-2009)

Pension Liability for Bharat Sanchar Nigam Ltd. (BSNL) towards pensionary

benefits including Family Pension to its employees



Reference this Department‘s letter No.1045/2003-B dated 15th

June, 2006 on the

above noted subject conveying the following position:-

(i) Annual pension liability of the Government in respect of employees who

retired prior to 1-10-2000 and those who have worked/ are working in

BSNL on deemed deputation and those who are absorbed in BSNL shall

not exceed 60% of the receipt to the Government on the following items:-

(a)Dividend income from MTNL/BSNL

(b)Licence fee from MTNL/BSNL

©corporate Tax/Excise Duty/Service Tax paid by BSNL

(ii) Any amount exceeding (i) shall be borne by BSNL

(iii) Pensionary contribution from BSNL would be made to Government as per

FR-116

(iv) Employees recruited directly by BSNL on or after 1-10-2000 shall not be

covered under this section

2. In this context, it is hereby clarified that the above said limit of 60% is for

normal funding. This does not in any way distract from the fact that the ultimate

liability towards pensionary benefits including family pension to the BSNL

employees (excepting those recruited after 1-10-2000), as per sub-rule 21 of Rule 37-

A of CCS (Pension) Rules, 1972, lies with the Government of India. If BSNL, for any

reason, is not able to contribute to the extent prescribed in para 1 above, the

Government of India will still pay the admissible pensionary benefits including family

Pension to BSNL employees (excepting those recruited after 1-10-2000)

(DOT No.40-12/2007-Pen.(T) dt. 5-1-2009)

Sub : Payment of gratuity as per provisions of BSNL Employees' Gratuity Trust

Rules.

1. Bharat Sanchar Nigam Limited on its formation has appointed many persons

as its

employees on or after 01.10.2000. In addition, BSNL has regularized many persons

who were working in DOT/DTS/DTO and not having temporary status as on

30.09.2000, as its employees on or after 1.10.2000. The above-mentioned employees



hereinafter called as ‗directly recruited employees‘ are covered by EPF Act & EPF

Rules 1952 regarding their provident fund and other related benefits etc.

2. As per the Payment of Gratuity Act 1972 above-mentioned ‗directly recruited

employees‘ are eligible to get death-cum-retirement gratuity. In order to comply with

the provisions of the Payment of Gratuity Act 1972, BSNL has framed BSNL

Employees Gratuity Rules for its ‗directly recruited employees‘. The Board of

Directors of BSNL in its 108th Meeting has approved BSNL Employees Gratuity

Rules.

3. BSNL Employees Gratuity Rules are applicable to its ‗directly recruited

employees‘ as mentioned in Para 1 above. This Gratuity Rules will also be applicable

to persons who will be appointed in future.

4. BSNL Employees Gratuity Rules will not be applicable to the employees of

the Department of Telecommunications and erstwhile Department of Telecom

Services & Department of Telecom Operation who have already been absorbed and /

or will be absorbed in future in BSNL through Presidential Order issued by the

Department of Telecommunications / to be issued in future by the competent authority

and who are covered by Rule 50 of CCS (Pension) Rules 1972 read with Rules 37A of

CCS (Pension) Rules 1972 and accordingly pension contributions are paid by BSNL

to CCA on their account so that pension and death cum- retirement gratuity are paid

by the Govt. of India to such employees.

5. BSNL Management have also extended the benefit of gratuity as per BSNL

Employees Gratuity Trust Rules to following categories of employees or nominees of

such employees.

(a) Casual labourers / Mazdoors not having temporary status, who were

regularized by BSNL on or after 01.10.2000, retired or died in harness &

governed by the order No. 500-85/CA II/BSNL/EPF/Vol. III dt. 10.05.2007,

25.05.2007 & 21.06.2007 and not paid pensionary and other retirement

benefits including death-cum-retirement gratuity by Department of

Telecommunication



(b) Persons who were appointed by BSNL on compassionate ground on or

after 1.10.2000 and governed by the order No. 500-85/CA II/BSNL/EPF/Vol.

III dt. 10.05.2007, 25.05.2007 & 21.06.2007 and not paid pensionary and

other retirement benefits including death-cum-retirement gratuity by

Department of Telecommunication

6. The copy of BSNL Employees Gratuity Rules is enclosed.

7. Various eligibility criteria i.e. conditions for grant of gratuity to the ‗directly

recruited employees‘ have been given in Para 1, 22, 23, 24, 25, 26, 28 & 29 of BSNL

Employees Gratuity Trust Rules. The salient features of BSNL Employees Gratuity

Rules are as follows:

a) To be eligible for getting the gratuity benefit the employees as mentioned in

Para 1 & 5 above, must have completed 5 (five) years continuous service

before their retirement on superannuation / resignation / retirement /

termination / permanent incapacity due to bodily or mental infirmity

b) ‗Retirement‘ means termination of the service of any employee otherwise

than on superannuation

c) ‗Continuous Service‘ means uninterrupted service and includes service,

which is interrupted by sickness, accident, leave, lay-off or lockout, or

cessation of work not caused due to any fault of the employee concerned.

d) In case of death i.e. died in harness and disablement the condition of

completion of the 5 (five) years continuous service is not applicable. In such

case the amount of gratuity will be paid to nominee(s) of the employee and in

the absence of nomination to the legal heir(s) of the employee

e) In case of termination on account of misconduct, insolvency or inefficiency

the employee is not eligible for getting the gratuity

f) In case the employee is terminated from service for riotous or disorderly

conduct or any other act of violence on his part or for any act, which

constitutes an offence involving moral turpitude provided such offence, is

committed by him in the course of his employment, the amount of gratuity

may be wholly or partly forfeited.



g) In case the employee is terminated from service for any act, willful

omission ornegligence causing any damage or loss or destruction of property

belonging to BSNL, the amount of gratuity to the extent of the damage or loss

so caused, shall be forfeited.

h) The amount of gratuity payable will be equal to fifteen days‘ salary for each

completed year of service subject to a maximum of Rs. 3.5 lakh (Rupees three

lakh fifty thousand)

i) Fifteen days wages / salary shall be calculated by dividing the monthly rate

of wages /salary last drawn by him, by twenty-six and multiplying the quotient

by fifteen.

j) Salary / wages for the purpose of calculation of gratuity means the sum paid

by BSNL to the employee as basic salary / wages i.e. basic pay together with

any dearness allowance and it shall not include commission, HRA, PLI,

overtime and other allowance & perquisite etc.

k) Any part of service period of six months or more, after completion of the

initial period of 5 years is to be treated as one year. However, all the

concerned authority of Circle / SSA / Civil & Electrical Division

/Maintenance & Project areas / other must scrupulously observe and follow

the various provisions of BSNL Employees Gratuity Trust Rules before

allowing the gratuity benefit to the eligible employees as mentioned above.

8. In case of eligible employees as per BSNL Employees Gratuity Trust Rules

theconcerned Head of Circle / SSA / Civil & Electrical Division / Maintenance &

Project Area / Other Administrative Units shall sanction the amount of gratuity

amount payable to such employees as permissible under BSNL Employees Gratuity

Trust Rules and account for the expenditure to accode for ‗Gratuity‘ under respective

‗Remuneration‘ Schedule.

8.1 In case the superannuation / resignation / retirement / termination / death /

permanent incapacity due to bodily or mental infirmity of the directly recruited

employees, has taken place up to 31.03.2008 and in case of employees mentioned in

Para 5 above necessary liability for gratuity amount payable to such employees as

permissible under BSNL Employees Gratuity Trust Rules shall be created in the



accounts of 2007-08 positively by debiting the expenditure to accode for ‗Gratuity‘

under respective ‗Remuneration‘ Schedule and crediting the amount to liability

accode under 119 / 419 schedule. All such liabilities on account of retirement-cum-

death gratuity must be paid to the employees / nominees of employees / legal heirs of

employees within 30 days from the date of issue of this order.

(BSNL HQ No. No. 500-50/2007-08/CA II/BSNL Dated 15th May 2008)

Sub: Nomination in respect of BSNL directly recruited Employees covered under

BSNL Employees‟ Gratuity Trust Rule.

Ref: This office letter No. 500-50/2007-08/CA II/BSNL dt. 15.05.2008 (Circular

No. 135)

Please refer to Para 37 of BSNL Employees Gratuity Trust Rules regarding

nomination in respect of death-cum-retirement gratuity to be submitted in the

prescribed form by the ‗directly recruited employees‘ of BSNL as mentioned in Para

2 of the letter under reference. Copies of Nomination Form i.e. Form ‗F‘, Form ‗G‘ &

Form ‗H‘ in respect of gratuity are enclosed.

Nomination in Form ‗F‘ for death-cum-retirement gratuity shall be obtained

from all the ‗directly recruited employees‘ who are eligible for getting gratuity as per

BSNL Employees Gratuity Trust Rules, which has been circulated through letter

under reference. Nomination in Form ‗G‘ shall be obtained from the concerned

‗directly recruited employees‘ as per terms &conditions mentioned in Sub – Para (D)

of Para 37 of BSNL Employees Gratuity Trust Rules. The ‗directly recruited

employees‘ may modify their nomination and in such case they will submit

modification particulars in Form ‗H‘. Nomination Form for death-cum-retirement

gratuity submitted by the ‗directly recruited employees‘ shall be countersigned by the

concerned Head of the Circle / SSA / Civil & Electrical Division / Maintenance &

Project Area / Other Administrative Units or by an officer nominated who is not

below rank of SDE or equivalent rank. Such counter-signed nomination form shall be

pasted in the Service Book of the concerned ‗directly recruited employees‘



In respect of all the existing ‗directly recruited employees‘ the process of

obtaining nomination form in prescribed form, countersigning and keeping the same

in Service Book shall be completed within one month from date of this letter.

(BSNL HQ No. 500-50/2007-08/CA II/BSNL Dated 19th May 2008)

Introduction of „BSNL GSLI Scheme‟ w.e.f. 20-8-2005, in replacement

of CGEGIS for all ex-DOT/DTS/DTO employees absorbed in BSNL and

also the employees directly recruited by BSNL

This in connection with a new Group Saving Linked Insurance Scheme

drawn-up for BSNL employees. All the ex-DOT employees, while on deemed

deputation to BSNL, were covered by Central government Employees Group

Insurance Scheme (CGEGIS) of the government of India. As a matter of Policy, PSU

employees can not be members of CGEGIS and therefore BSNL has decided to cover

BSNL employees under a Group Savings Linked Insurance Scheme from Life

Insurance corporation of India w.e.f. 20th

august, 2005 (deduction towards premium to

be made from the salary of July, 2005). Detailed rules and Procedures of the Scheme

have since been worked out, a copy there of is enclosed. Salient features of the

Scheme are as follows:

(i) The scheme is compulsory for all employees of BSNL. Thus it will cover

all the ex-DOT employees who have been absorbed into BSNL so far and all the

directly recruited employees of BSNL. All future employees of BSNL whether

directly recruited or absorbed from government shall become members of the scheme

as per rules & Procedure of the scheme.

(ii) The D.D.Os of all BSNL units will have to ensure that no deduction

towards erstwhile CGEGI scheme is made from the employees from the salaries for

the month of August, 2005, onwards. The amount deductible towards BSNL Group

Savings Linked Insurance Scheme as per enclosed Rules shall commence from the

salary for the month of July 2005. the details of head of account, transaction

process/procedure between DDO & LIC will be communicated by finance Wing of

Corporate Office. There will be deduction towards CGEGIS equivalent as well as

deductions as per new scheme from July 2005 salary.



(iii) Every directly recruited employee of BSNL will be required to nominate a

Beneficiary in the prescribed Form-I as per rule 12 of the ―BSNL GSLI Scheme‖.

(iv) The Master Record in form-II of the employees admitted as Members of

the above Scheme (ex DOT absorbed BSNL employees as well as directly recruited

BSNL employees ) duly verified by D.D.Os concerned is required to be positively

sent in soft as well as hard copy form by 16th

of August 2005, by each DDO to his

designated P&GS unit of LIC as per enclosed list.

(v) Each DDO will also ensure sending of Monthly Return in Form-III

indicating additions/Deletions of Members to his designated P&GS unit of LIC as per

procedure prescribed in Rule 18.

(vi) Heads of Circles/SSA/Field Units may kindly ensure that duties and

responsibilities of D.D.Os in regard to implementation of the scheme as detailed in

Rule & Procedures of the Scheme are meticulously carried out by them.

(vii) The DDO‘s will transact/deal with their designated P&GS unit of LIC as

per the location of DDO and not as per location of his circle HQ. For example, a DDO

of Northern Telecom Project Circle located in Jallandhar (Punjab) will deal with LIC

of India, P&GS Department, Divisional office, chandigarh, Jeevan Prakash, Post Box

42, Sector 17-B, chandigary-160017 for all type of transactions in connection with

this LIC based Group Insurance Scheme.

2. Kindly nominate a Nodal Officer in your circle who will ensure that all the required

action items are met within deadlines so that the employees are covered under ―BSNL

GSLI Scheme‖ w.e.f. 20th

August 2005.

3. Kindly ensure supervision of this work in respect of your circle, so that ―BSNL

GSLI Scheme 2005‖ of Life Insurance corporation of India is implemented smoothly.

Any clarification in connection with this scheme may be addressed to Jt. DDG (CA)

BSNL corporate Office, New Delhi.

BSNL GROUP SAVINGS LINKED INSURANCE SCHEME –2005

Rules

1. DEFINITIONS:

1.1 In these rules, where the context so admits, the masculine shall include the

feminine, the singular shall include the plural and the following words and



expressions shall, unless repugnant to the context, have the following

meanings:-

(i) ‗COMPANY‘ shall mean the ‗BHARAT SANCHAR NIGAM LIMITED‘

inclusive of all its units located anywhere in India or abroad. Registered

and corporate Office of the company is located at B-148 statesman House

10th

floor, Barakhamba road, New Delhi-110001.

(ii) ‗EMPLOYER‘ shall mean ‘BHARAT SANCHAR NIGAM LIMITED‘

and any other Company, firm or Corporation which may in future be

managed or controlled by or become associated with the BSNL and which

may agree to become bound by these rules and terms and conditions

thereof.

(iii) ‗CORPORATION‘ shall mean the Life Insurance Corporation of India

established under Section 3 of the Life Insurance Corporation Act, 1956.

(iv) ―SCHEME‖ shall mean ‗BSNL GSLI Scheme 2005‘.

(v) ―RULES‖ shall mean the rules of the Scheme as set out below and as

amended from time to time.

(vi) ―MEMBER‖ shall mean the particular employee of the employer who has

been admitted to the membership of the scheme and on whose life an

Assurance has been or is to be effected in accordance with these Rules and

terms and conditions thereof as in force from time to time.

(vii) ―COMMENCEMENT DATE‖ shall men the 20th

of August 2005, the date

from which the Scheme commences.

(viii) ―ENTRY DATE‖ shall mean:

(a) In relation to the original members admitted to the Scheme on the date

of commencement, the said date of commencement;

(b) In relation to new members of Group A or other transferred from

Central Govt. who are to be admitted to the Scheme after the

commencement date, 20th

of the month following the month in which

deduction of premium is made from the salary.

(c) In relation to new members directly recruited by the Employer, 20th

of

the month following the month in which deduction of premium is

made from the salary.



(ix) ‖ANNUAL RENEWAL DATE‖ shall mean in relation to the Scheme the

20th

day of August 2006 and the 20th

day of August in each subsequent

year.

(x) ―TERMINAL DATE‖ shall mean in respect of a Member the date on

which he completes the age of retirement on Superannuation, which

currently is 60 years OR any earlier date of cessation of service on account

of voluntary/premature retirement, resignation, termination, death etc.

(xi) ―the ASSURANCE‖ shall mean the Assurance to be effected on the life of

the Member.

(xii) ―THE RUNNING ACCOUNT‖ shall mean the account to be maintained

by the Corporation in favour of the Employer to which will be credited the

premium remaining in respect of the Members after utilizing such part as

is required to provide Life Insurance Benefit, as elaborated in rule 7 and

notes there under.

(xiii) ‗SERVICE‘ shall mean the period of continuous service rendered by the

Member as an employee of the employer reckoned from the date on which

he enters the Scheme to the Terminal Date. For the purpose of the Scheme,

‗Service‘ shall include a period of authorized leave.

(xiv) ‗THE BENEFICIARY‘ shall mean in relation of a Member, the person or

persons who has/have appointed by him in terms of these rules to receive

the benefits under the Scheme in the event of his death while being

insured.

(xv) ‗D.D.O.‘ shall mean Accounts Officer or any other Officer of the Accounts

Dept. of BSNL (including Circles/SSAs/Field Units) notified as D.D.O.

(Drawing and Disbursing Officer) to discharge the functions of drawal and

disbursal of Salary/Wages in respect of employees under his jurisdiction

for the said purpose.

2. The Employer will act for and on behalf of the Members in all matters relating to

the ‗Scheme and every act done by, agreement made with and notice given to the

Corporation shall be binding on the Members.

3. Comencement date:



3.1 The Scheme commences and the Rules shall take effect from 20th

August 2005

4. Eligibility

(a) All BSNL Employees aged not less than 18 years and not more than 60

years and are as per the following categorization shall be eligible to

join Scheme.

Category Group

I Executives (IDA Pay scale of Rs.14500-350-18700 and beyond)

II Executives (IDA Pay scale up to Rs.13000-350-18250)

III Non Executives

(b) The existing employees as per above categorization shall join the

Scheme from the date of commencement of the Scheme (i.e. 20th

August, 2005)

NOTE:

The existing employees shall mean the BSNL employees who are on

roles of the Employer as on the commencement Date.

It shall be the condition of service that existing employees who are

within the above category and all future employees shall compulsorily

join the Scheme on the relevant Entry Dates as soon as they satisfy the

conditions of eligibility.

No member shall withdraw from the Scheme while he is still an

eligible employee satisfying the conditions of eligibility described

above.

On promotion from Non-Executive to Executive or promotion from

Category II to Category I within Executive Categories the promoted

employee will be obliged to contribute for the enhanced Insurance

Cover at the monthly contribution/premiums shown in the table below

Rule Rule 7(i) of these Rules and will be entitled to benefits of the

enhanced category from the 20th

of the month following the month in

which deduction of premium is made from the salary.



For consideration of the above categorization, those employees who

are working on officiating/adhoc promotion basis for more than 365

days in higher category pay scale will, for Group Insurance Scheme

deduction/membership purpose, belong to that category.

For those employees who are promoted on adhoc basis or given

promotion on officiating basis shall continue to belong to their

previous category but will move over to their higher category for

Group Insurance deduction purposes as soon as they complete 365

days in their new category. However, the enhanced category deduction

will start only on the next annual renewal date.

Note for (f) & (g) ― an employee promoted to higher post/pay scale on

local officiating/short term arrangement for a period not exceeding 180

days, shall continue to remain in the same category of ‗BSNL GSLI

Scheme‘ to which he/she belonged immediately before his/her such

promotion‖.

5. Evidence of age:

The ―Date of Birth‖ as entered/available in the ―Service Book‖ of the employee

concerned will be taken as evidence of age of the employee concerned.

6. Evidence of insurability:

Existing Employees of the Employer, will be deemed to have fulfilled requirement

of insurability. In respect of directly recruited Employees of the Employer,

medical fitness taken at the time of their entry into the service of the employer

will be deemed to have fulfilled requirement of evidence of their insurability.

7. Contribution

(i) Every member shall pay a monthly contribution according to his category

at the rate as under. The contribution shall commence on the ‗Entry Date‘ and

continue until the ‗Terminal Date‘ or otherwise as specified in these Rules.



Category Group Monthly

contribution/

Premium (Rs.)

Sum

Assured

(Rs.)

I Executives (IDA Pay scale of Rs.14500-

350-18700 and beyond)

525 5,00,000

II Executives (IDA Pay scale up to

Rs.13000-350-18250)

315 3,00,000

III Non-executives in Group ‗C & D‘ 105 1,00,000

(ii) The employer shall deduct the contribution in respect of all the Members from

their salaries and remit the same in full to the Corporation for providing benefits

in accordance with these Rules.

A part of the contribution as may be fixed by the Corporation from year to year,

expressed as a uniform average amount per member shall be utilized to provide for

each member Life Assurance benefit as mentioned in Rule 8 (i). In case of non

executive employees in Category III out of monthly contribution of Rs.105/-, Rs.30/-

will be towards Life cover, Rs.70/- towards savings fund and Rs.5/- towards double

accident benefit. In case of executive in Category II, Rs.90/- will be towards life

cover, Rs.210/- will be towards savings fund and rs.15/- will be towards double

accident benefit. For executives in Category I, Rs.150/- will be towards life cover,

Rs.350/- towards savings fund and Rs.25/- towards accident benefit. The life

assurance benefit will become payable upon the death of the member whilst being

insured under the Scheme. For this purpose, the Employer shall effect Assurances

under the one Year Renewable Term assurance plan with the corporation. The balance

of the contribution will be credited to a Running account to be maintained by the

Corporation in favour of the employer for providing the benefits described in rule

8(ii) to the Members. The corporation shall allow interest on the balance in the

running Account at the rates declared every year. The amount credited towards

accident benefit will be utilized for providing accident benefit in case of death due to

accident.



1. The apportionment ratio of 70:35, towards savings and risk (including DAB)

of the monthly contribution, agreed for the present can change depending upon the

death experience in the last three years. This ratio is subject to review by LIC every

three years, if the claim outgo falls below 80% or goes above 120%.

2. The ‗Savings Fund‘ will be allowed interest by LIC as declared from time to

time, which is 8% at present.

3. The increase in cover towards Life assurance benefits for the existing members

placed on higher category due to promotion shall be from the 20th

of the month

following month in which increased contribution is deducted from salary.

4. A monthly return regarding (a) additions on account of fresh entrants (b)

Deletions on account of cessation of service for any reason defined as ‗Terminal

Date‘ under Rule 1(x) above, will be sent to specified offices of the corporation on

monthly basis by the D.D.O. of the Circles.

8. Benefits:

(i) On death of the member before the ‗Terminal Date‘ the Life Assurance

benefit, category-wise as under, together with the amount to the credit of

the member in the Running Account as on the date of his death,

determined in the manner referred to in Rule 8(ii) below shall become

payable to the Beneficiary.

Category Sum Assured (Rs.)

I 5,00,000/-

II 3,00,000/-

III 1,00,000/-

(ii) On reaching ―Terminal Date‖ or on earlier cessation of service other than

death, the total amount to the credit of the member in the Running Account

as shall be determined by the Corporation having regard to the Entry Date,

the amounts credited to the Running Account from time to time, together

with interest on the date of exit shall become payable to member.

9. Accident benefit:



If death of a member occurs directly from injuries caused by an accident by outward,

violent and visible means within 120 days of its occurrence solely, directly and

independently of all other causes, the corporation shall pay an additional Sum equal to

the Sum assured as described in 8(i) of the rules in respect of a member.

10. Termination of membership:

10.1 The membership of the scheme in respect of a member shall terminate upon the

happening of any of the following events:

(a) Member ceasing to be in the service of the Employer

(b) Member reaching the Terminal Date.

(c) Termination of the Scheme.

10.2 Upon termination of the Membership, the Life assurance benefit of the member

shall cease forthwith and the amount at his credit in the Running Acco7nt as

determined in Rule 8(ii) shall become payable.

11. Master policy:

11.1 The corporation will issue Master Policy to the Employer incorporating the terms

and conditions under which the benefits are assured.

12. Settlement of claim:

In case of exit of employee by way of Resignation/Retirement/Death, the claim

amount will be settled by the Corporation in favour of the Member or Beneficiary,

appointed in Form I. In respect of existing employees, the nominations for CGEGIS

will be deemed to have been accepted as beneficiary (s) for this Scheme.

13. Amendment or discontinuance of scheme:

13.1 The Employer may discontinue the Scheme or amend the terms and condition

thereof at any time on any Renewal Date subject to 3 months‘ previous notice being

given to the members and the Corporation and the discontinuance shall be effective

from the 20th

of the month c0-incident with or following the expiry of the notice

period.



13.2 The corporation reserves a similar right by giving 3 months‘ notice to the

Employer.

14. Jurisdiction

14.1 ALL Assurances issued under the Scheme shall be governed by Indian Laws.

They will be subject to Indian Laws including the Indian Insurance Act, 1938 as

amended, Indian Estate Duty Act 1956, the Income Tax Act, 1961 and to any

legislation subsequently introduced and shall be subject to the jurisdiction of law

courts at New Delhi.

Procedures

15. Admission of employees as members of the scheme:

15.1 All D.D.Os will ensure to make entry to the effect of the employees joining

the scheme in the Service Book of the Employee concerned.

15.2 D.D.O will also ensure to obtain prescribed form-I from each directly

recruited BSNL employee in regard to Appointment of beneficiary/Beneficiaries

as provided in Rule 12 above. This form should be obtained in duplicate. DDOs

will ensure to paste this form in the Service Book of the employees.

15.3 All D.D.Os concerned will get the Employees‘ Data compiled in Master

Record (Form II) (Copy annexed), in respect of all Employees admitted as

Members of Scheme. DDOs will then get the Data contained in the aforesaid

Master Record (form II) in a floppy which should be sent along with the hard

copies of his unit to the Servicing P&GS Unit OF LIC positively by 16-8-05. This

will be a one-time exercise at the commencement of the Scheme.

16. Deduction of monthly contribution/premium from the salary of the

employees

16.1 From the salary of July, 2005 onwards, the contribution of the employees on

the LIC Group Insurance Scheme rate (shown in rule 7(i) above) will be deducted

under this ―BSNL GSLI Scheme‖ of LIC. Following actions are required to be

taken by D.D.O s concerned to implement above provisions:-

(i) All D.D.Os to ensure that monthly contribution of all the concerned Employees

towards ―BSNL GSLI Scheme ― is deducted at the rates prescribed in Rule 7(i)



above, from the monthly salary of the Employees commencing from salary month

of July, 2005 onwards. The contribution is to be deducted without any break, even

including for period of leave/dies-non/suspension etc. till terminal date. The

amount so deducted is to be sent to the designated LIC P& GS office of his State

so as not to reach the designated LIC P & GS later than 10th

of every month. In the

first month the cheque will go with Master Record (form II) and subsequent

months along with additions/deletion (Form III)

Illustration

(1) The Premium for the month of July, 2005 to be remitted to LIC by 10-8-2005

will be based on the Master record of BSNL DDO (Form II) sent to LIC vide

rule 15.3 above.

(2) Next monthly premium of August should be payable by 10th

September 2005

and so on and so forth will be based on the Master Record already furnished to

LIC (subject to corrections, if any) and the additions/deletions as may be

reported in Monthly return (form III) by the respective DDO as per procedure

narrated in rule 18 below.

17. Maintaining of “register” containing records of members

17.1 All D.D.Os will maintain a Register of the Employees admitted as Members of

the BSNL GLSI Scheme. The Master record (Form II) will be treated as ―Register of

Members‖, which will be updated based on Monthly return of Additions/Deletions

(form III). ‗Employee Number shall mean the Number assigned to each Employee

based on which his salary/wage is drawn.

18. Monthly return of additions/deletions in the membership of the scheme

18.1 All D.D.Os will ensure to send to designated LIC P&GS Unit a Monthly return

of Additions/Deletions in the membership of the Scheme, as per provisions contained

in rule 7 (iv) in the prescribed proforma (Form III) mentioned therein positively by

10th

of the month along with that month‘s premium cheque.



19. Claiming of benefits from LIC

19.1 to enable BSNL to seek reimbursement of claims/benefits as envisaged in rule 8

above on the termination of membership of the Employees for the reasons mentioned

in rule 10 above, the following detailed procedure is prescribed for compliance by all

concerned.

19.2 All D.D.Os shall furnish claims in the prescribed form-IV (Copy annexed) upon

termination of the membership of the employees on happening of any of the following

events:-

(a) Member ceasing to be in the service of the Employer (BSNL)

(b) Member reaching the ‗Terminal Date‘

19.2.1 The aforesaid claims in form-IV will be forwarded by the D.D.Os to the

respective LIC P& GS Unit by 15th

of the said month for seeking reimbursement of

the claims

19.2.2 Upon the receipt of reimbursement of claims from DDO, LIC P& GS Unit will

immediately release payment by Account Pay Cheque/DD in favour of concerned

Employee/Beneficiary

19.2.2.1 The LIC P&GS unit will send the DD/Cheque at par drawn in favour of the

member/beneficiary to the concerned DDO, who will immediately acknowledge its

receipt to LIC and simultaneously forward the same to the member/beneficiary. The

final receipt should be obtained from the member/beneficiary and sent to concerned

LIC P&GS unit.

20. No member shall be granted any loan under this Scheme/policy.\

21. Restraining an anticipation or encumberance:

21.1 The benefits under the Scheme are strictly personal and cannot be assigned,

charged or alienated in any way.

22. Amendments/modifications in the rules/procedures

22.1.1 CMD BSNL is empowered to carry out any amendment/modification in the

aforesaid rules/Procedures (in consultation with Employees/LIC, wherever it is so



considered necessary), within the provisions of the Master Policy obtained by BSNL

under Group Savings Linked Insurance Scheme of LIC.

22.1.2 Director (HRD) BSNL or any Officer so authorized by him, is empowered for

issuance of any clarification to any of the provisions of the above Scheme, including

interpretation thereof.

(BSNL HQ No.8-1/2002-Restrg(pt.) dt. 1-7-2005)

Sub: Accounting procedure for BSNL GSLI Scheme

Ref: Letter No. 8-1/2002-Restrg (Pt.) dt. 1.7.2005 issued by DDG

(Restructuring)

The accounting procedures as mentioned below shall be followed in respect of BSNL

GSLI Scheme

(a) The following accodes are allotted for accounting the recovery of monthly

premium from the eligible employees:

1190210 - BSNL GSLI Scheme - 2005 L - 40

4190210 - BSNL GSLI Scheme – 2005 L - 40

The monthly recovery shall be credited to above-mentioned accode and while

remitting the monthly premium so recovered, to the designated LIC P&GS

Units/Offices the above-mentioned accode shall be debited and bank account be

credited. The payment of monthly premium must reach the designated LIC P&GS

Units/offices on or before 10th of the month following the month of recovery. All

DDO must ensure that the cheque/draft is sent on or before 8th of the month by Speed

Post to the designated LIC P&GS unit/office so that it reaches positively by 10th of

the month.

(b) As per Rule 16.1 (i) of BSNL Group Savings Linked Insurance Scheme - 2005

the contribution is to be recovered from each eligible employee without any break,

even including for period of leave/dies-non/suspension etc. till terminal date (refer

Rule 1.1 (x) and Rule 10 of BSNL GSLI Scheme for termination of membership). In

case the amount of monthly salaries (here the 'amount of monthly salaries' means the



total monthly salary minus the statutory compulsory minimum deduction towards

GPF/EPF and other statutory dues such as Income Tax, Education cess, court

attachment which can't be postponed to further periods) payable to an employee

during a month isn't sufficient to recover the monthly premium of BSNL GSLI

Scheme, the amount of shortfall towards monthly premium shall be paid by BSNL

from its own fund and the said amount of shortfall towards monthly premium shall be

treated as non-interest bearing advance given to the said employee. Such advance is

given in order to continue the insurance policy and this may be treated as a welfare

benefit extended by BSNL to its employees. The amount of such advance shall be

booked/debited to accode mentioned below. Such advance shall be noted in the

Retrenchment Register and recovered from next month's salary or any other dues

payable to employees i.e. TA/LTC claim bill, transfer TA claim bill etc. If any

amount of such advance, which remains pending to be recovered at the time

retirement/termination of service etc. may be recovered from the leave encashment

payment/gratuity payment/GPF final payment.

1180211 - Advance for payment of contribution towards BSNL GSLI Scheme K -

23

4180211 - Advance for payment of contribution towards BSNL GSLI Scheme K -

23

The recovery of advance shall be credited to above-mentioned accodes.

(c) As per order referred above recovery of premium towards BSNL GSLI

Scheme will start from the Salary of July 2005, however the BSNL GSLI Scheme will

commence from 20.08.2005. The recovery towards CGEGIS/CGEIS shall also be

made from the salary of July 2005, however the recovery towards CGEGIS/CGEIS

shall be stopped from the salary of August 2005. Therefore, in the month of July 2005

the contribution of Rs. 105/-, Rs.315/- and Rs. 525/- shall be deducted for BSNL

GSLI Scheme in addition to the existing deduction of Rs. 30/-, Rs.60/- and Rs.120/-

as applicable to CGEGIS. However, the deduction of contribution of Rs.30/-, Rs.60/-

and Rs.120/- will be stopped from August 2005 onwards due to discontinuation of

CGEGIS/CGEIS.



(d) Copy of the order under reference and rules of BSNL Group Savings Linked

Insurance Scheme - 2005 are available in the Intranet (under Director HRD -

Restructuring Cell). All the Heads of units may kindly be instructed so that BSNL

GSLI Scheme is implemented in the month of July 2005 positively and close co-

ordination shall be created by involving the concerned officials of Administration and

Finance Branches for smooth time bound implementation of the Scheme.

(e) The date of commencement of the scheme as mentioned in column 3 of Form

II (Rule 15.3 of BSNL Group Savings Linked Insurance Scheme - 2005) may kindly

be read as '20.08.2005' instead of '20.06.2005'.

All the Circle Heads may kindly submit a status report regarding successful

implementation of BSNL GSLI Scheme by 20th August 2005 to Corporate Accounts

Section for perusal of CMD BSNL.

(BSNL HQ No. No. 500-31/2005-06/CA I/BSNL Dated 7th July, 2005)

Kindly refer to this office letter no.500-31/2005-06/CAI/BSNL dated 7-7-

2005. In this connection it is further intimated that P&GS Deptt., Central Office,

Mumbai, LIC has given consent to settle claims by DD/Cheque payable at par to the

claimants i.e. no bank commission charges will be deducted on encashment of cheque

at the time of settlement of claims.

It is further decided to remit the monthly GSLI premium to LIC by demand

Draft where the designated P&GS office is not located at the same station.

In view of above it is requested to instruct all the DDOs under your control to

remit the monthly GSLI premium by Demand Draft to the concerned designated

P&GS offices that are situated outstation. The bank charges for preparation of

Demand Draft will be borne by LIC. Accordingly the net amount of premium will be

remitted after deducting the commission charges from the total payable amount.

However as a good gesture, the concessional rates for preparation of Demand

Draft may be availed from the concerned banks where the BSNL, Corporate office

has already made agreement with them.

(BSNL HQ No.500-57/2001/CA-II/BSNL, dt. 28-9-2005)



Sl.No. Point of doubt Clarification

1 Since the commencement date is

20th August, 2005, it is felt that no

recovery need be made from the

salary of July 205 in respect of

employees retiring on 31-7-2005

No recovery is to made from the salary of

July, 2005 of the official retiring on 31-7-

2005

2 Since premium for a particular

month is recovered from the salary

of previous month to be remitted to

LIC before 10th of the month, it is

felt that the recovery of premium

from the salary of the month in

which the employee is retiring need

not be recovered

No recovery of premium towards BSNL

GSLI scheme is to be made from the salary

of the month in which the official is retiring

3 It is presumed that offg. Promotion

for a period not exceeding 180 days

followed by reversion and then re-

promotion, the employee will

continue in the previous category; in

other words the employee not

completed 365 days continuously

will not be eligible switch over to

higher category.

Yes, the point has already been clarified

through note under para 4(g) of BSNL

GSLI Scheme, 2005 enclosed to letter

No.8-1/2002-Restrg(part) dt. 1-7-05. The

note under para 4(g) should be read along

with para 4(g)

(BSNL HQ No.500-57/2005/CA II DT. 21-7-2005)

Sl.

No.

Point of Doubt Clarification

1 Whether premium has to be paid for

the officials who are absent for a

long period and for whom no pay is

drawn

Premium has to be paid for all eligible

employees without any break including the

period of leave/dies-non/suspension etc. till

terminal date as per rule 1.1(x) and rule 10 of

GSLI scheme



2 Whether the existing contribution of

CGEGIS will be adjusted

The CGEGIS and GSLI are two distinct

schemes. Therefore the question of

adjustment of contribution made in CGEGIS

does not arise.

3 Whether any exception is to be

given for the recovery of new BSNL

GSLI scheme for the official likely

to be retired within a couple of

months.

The clarification given in para 2 of this office

letter no.500-57/2005/CAII dated 21-7-2005

may be referred to. The recovery of GSLI

premium has to be made in all cases except

in the month of retirement of the official

concerned.

4 Refund of amount held in deposit in

CGEGIS

DOT has already been requested to refund

the admissible amount lying in CGEGIS

scheme through their respective CCAs.

(BSNL HQ No.500-57/2005/CAII dt. 6-9-2005)

Sub: Applicability of BSNL GSLI Scheme in respect of Gr. „A‟ officers.

It has been decided by the Competent Authority that the BSNL GSLI scheme

should also be extended to all Group ‗A‘ officers , who have been absorbed in BSNL

and in whose case the Presidential order has been issued , w.e.f. 20th

Feb 2006. To

implement the scheme the recovery of the premium for GSLI will be made from the

month of salary of January 2006 as per prescribed rates. However, the recovery of

CGEGIS premium will also continue in the month of Jan. and Feb. 2006 also so that

no officer remains uncovered in any intervening period.

The coverage of BSNL GSLI scheme should also be extended to all other

absorbed Group ‗A‘ officer in BSNL and whose presidential orders are issued time to

time. (No.500-57/2005/CA-II/BSNL Dated : 05.01.2006)

Sub:- Date of commencement of BSNL GSLI Scheme for the employees of BSNL

Ref:-1.No.8-1/2002-Restg(Pt.) dt. 1-7-2005

2.No.500-31/2005-06/CAI/BSNL dt. 7-7-2005 (Circular No.43)

Kindly refer to Para 1 of letter dt. 1-7-05 and Para © of letter dt. 7-7-05. In the

said Para it has been stated that the date of commencement of BSNL GSLI scheme is

20-8-2005.



However, the matter was taken up with LIC of India to pre-pone the date of

commencement of BSNL GSLI scheme to 1-8-2005. LIC of India has accepted our

request and issued order under No.LIC/CO/P&GS dated 16-5-2006 for pre-poning the

date of commencement of BSNL GSLI scheme for BSNL employees to 1-8-2005.

Necessary change in Master Policy issued by servicing units of P&GS may kindly be

get incorporated accordingly.

In view of above, if any employee who is covered by BSNL GSLI Scheme

and premium of July‘2005 has been deducted from his pay in July‘2005 and died in

harness on or after 1-8-2005, necessary claim for insurance amount and other

entitlement in respect of such deceased employees as per LIC based group insurance

scheme shall be lodged to the respective P&GS units of LIC of India

You are requested to take necessary action in the matter.

(BSNL HQ No.500-57?CAII/2006/BSNL dt. 18-5-2006)

chapter-3 pension, gratuity, bsnl gsli

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