Download - Chapter13.Terminal Benefits
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CHAPTER-13
TERMINAL BENEFITS (PENSION,
GRATUITY, LEAVE
ENCASHMENT,GPF,EPF,DOT CELL)
(Date of Creation: 01/04/2011)
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Terminal Benefits(Pension, Gratuity, Leave Encashment,
GPF, EPF, DOT Cell)
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.
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.,
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.
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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
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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.
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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.
Sl.No. Item Points to be seen
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.
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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.
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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.
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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.
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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
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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)
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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
From 85 years to less than 90 years 30% of basic pension
From 90 years to less than 95 years 40% of basic pension
From 95 years to less than 100 years 50% 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.
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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
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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.
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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
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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]
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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
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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
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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
a) Family Pension
1. 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.
2. 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.
3. 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.
b) 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:-
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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)
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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.
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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
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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
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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
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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.
(Dept. of P&PW OM no.38/37/08-P&PW(A).pt.II dt.3-10-2008)
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
From 85 years to less than 90 years 30% of basic family pension
From 90 years to less than 95 years 40% of basic family pension
From 95 years to less than 100 years 50% 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
(Dept. of P&PW OM no.38/37/08-P&PW(A).pt.II dt.3-10-2008)
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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
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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
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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.
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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)]
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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.
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(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;
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(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.
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(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;
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(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
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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
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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)
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(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
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(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 or
negligence 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.
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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
the
concerned 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.
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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)
Encashment of Leave
[Encashment is admissible if no reduction in the amount of Pension/ gratuity has been
ordered.(Rule 39(5)(A)]
In terms of the instructions issued by his Department vide O.M.No.14028/18/86-
Estt.(L), dated 22-6-1987, a Government servant, who is compulsorily retired as a
measure of punishment under disciplinary rules and the disciplinary authority has
imposed any reduction in the amount of his pension (including gratuity) under Rule
40 of the CCS (Pensions) Rules 72, he is not being allowed encashment of leave on
such retirement.
2. The demand of the staff side to allow encashment of unutilized earned leave to
those Central Government employees, who are compulsorily retired as a measure of
punishment and in whose case a cut in pension (including gratuity) has been imposed
by the disciplinary Authority, has been reconsidered in consultation with the Ministry
of Finance. It has now been decided that in such cases where the government servants
are compulsorily retired as a measure of punishment and in whose cases even if a cut
in pension (including gratuity) has been ordered, the benefit of encashment of earned
leave at the time of such retirement shall be allowed. It has accordingly been decided
to delete the relevant Rule 39(5-A) of Central Civil Services (Leave) Rules, 1972.
These orders will be effective from the date of issue
(M. O. Per. & Trg. O.M.No.14028/1/2004-Estt.(L) dt. 13-2-2006)
When an employee retires on superannuation while under suspension or while
disciplinary or criminal proceedings are pending against him, the whole or part of
cash equivalent of leave salary may be with held to meet recoveries from him possibly
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arising on conclusion of the proceedings. On conclusion of the proceedings, payment
may be released after adjustment of government dues, if any;
In the case of death while on leave with leave salary, the benefit of increment falling
due during the period of leave will be given even though the increment was not
actually drawn. The benefit will be in the form of ex-gratia payment which should be
got sanctioned by Head of Department. The ex-gratia payment will be the difference
between (1) leave salary and cash equivalent of leave salary actually paid ( which will
be based on the pay last drawn ) and (ii) the leave salary and cash equivalent of leave
salary that would be admissible if the increment falling due during the period of leave
is also taken into account. (G.I.D (3) Rule 39)
Encashment of leave may be sanctioned by the authority competent to sanction
EL.(Rule 39-C)
After payment of cash equivalent of leave salary, if DA is sanctioned with
retrospective effect, the difference due on the basis of enhanced DA is to be paid.
(G.I.O (9) Rule 39)
A Govt. Servant may be permitted to encash 10 days earned leave at the time of
availing of L.T.C subject to the condition that -
a) the total leave so encashed during the entire career does not exceed 60 days in
the aggregate;
b) earned leave of at least an equivalent duration is also availed of
simultaneously by the employee;
c) a balance of at least 30 days of earned leave is still available to the credit of
the employee after taking into account the period of encashment as well as leave;
d) the total encashment of EL allowed to a Govt.Servant along with L.T.C while
in service and as per the provisions of the CCS(Leave) Rules (on death/ retirement or
resignation) should not exceed the maximum limit / ceiling of 300 days or 150 days as
the case may be. (Dept. of Per & Trg O.M. No. 14028/7/97- Estt. (L) dtd. 7.10.97)
Formula for Encashment of EL
{(Pay + DA admissible on Date of retirement / Death ) x (Number of days of E.L. at
credit on the date of retirement / Death subject to a maximum of 300 days)} ÷ 30
(Rule 39 (2) (b))
Personal Pay granted to Govt. Servant either for passing Hindi examination or for
adopting small family norms cannot be taken into account for the purpose of
computing encashment of leave.
( DOT Lr No. 1-4/92-NCG dtd. 17.7.92)
In the case of resignation from service encashment is permissible up to 50% of earned
leave at credit or 150 days, whichever is less.
Pay for the purpose of Leave Encashment: Basic Pay, NPA, Stagnation Increment,
Deputation Allowance, Personal Pay (except P.P for Hindi/ Small Family Norms)
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Only Pay admissible on the date of retirement plus Dearness allowance admissible on
that date are to be taken into account for leave encashment. The teaching allowance
will not be included in the calculation as it is not the part of pay defined in FR 9(21)
(DOT Lr.No.36-2/2002-Pen(T)Pt. Dt. 25-2-2003 )
Treatment of Headquarter Allowance for computation of Earned Leave at the time of
retirement-clarification regarding
I am directed to forward a photocopy of DOP&T, ID No.14028/1/2005-Estt.(L), Part
file, dated 2-9-2005 on the above subject.
2.The clarification on the issue was sought by Department of Telecom from
Department of Personnel and Training. In Department of Posts, the PLI Directorate
has also taken up a similar issue for clarification. In view of the clarification given to
Department of Telecom by DOP&T, the Headquarter Allowance is not to be taken
into account for calculating leave encashment benefits at the time of retirement. The
said clarification may be followed scrupulously.
(Dept. of Posts Lr.No.1-10/2004-PAP dt. 9-12-2005)
Encashment of HPL against shortfall in Earned Leave of 300 days on retirement
in respect of unabsorbed officers working in BSNL on deemed
deputation/deputation as per 6th
CPC recommendations
Orders for encashment of Half pay Leave (HPL) against the shortfall in Earned Leave
of 300 days w.e.f. 1-1-2006 for Central Government employees have been issued vide
DOP&T OM No.14028/3/2008-Estt.(L) dated 25-9-2008 and 16-11-2009 (copy
enclosed)
2. It has been decided with the approval of the competent authority that orders of
Government for encashment of HPL against the short fall in Earned Leave of 300
days may be implemented for unabsorbed officers who have retired /will retire from
BSNL as per provisions of DOP&T OMs mentioned above. The payment made in this
regard may be got reimbursed from DOT as per procedure followed in past for
encashment of Earned Leave.
(BSNL HQ No.1-13/2010-PAT(BSNL)dt. 17-5-2010)
Recommendations of the Sixth Central Pay Commission relating to encashment
of leave in respect of Central Government employees
The undersigned is directed to refer to this Department‘s OM of even number dated
25th
September, 2008 on the subject mentioned above according to which encashment
of leave in respect of central Government employees will be considered both for
earned leave and half pay leave subject to overall limit of 300 days and in respect of
encashment of half pay leave, no reduction shall be made on account of pension and
pension equivalent of other retirement benefits. In case of shortfall in earned leave, no
commutation of half pay leave is permissible. The order was made effective from the
1st September 2008. The matter was reconsidered in this department in consultation
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with department of expenditure (implementation cell) and it has been decided to
modify the date of effect of this department‘s OM if even number dated 25th
September, 2008 to 1-1-2008 instead of 1-9-2008 subject to the following conditions:-
(i)The benefit will be admissible in respect of past cases on receipt of applications to
that effect from the pensioners concerned by the administrative ministry concerned.
(ii)In respect of retirees who have already received encashment of earned leave of
maximum limit of 300 days together with encashment of HPL standing at their credit
on the date of retirement, such cases need not be reopened. However, such cases in
which there was a shortfall in reaching the maximum limit of 300 days can be
reopened.
(iii)Calculations cash equivalent in respect of HPL at credit shall be made mutatis
mutandis in the manner given in this department‘s OM of even number dated 25-9-
2008
(Dept. Of Pers & Trg. No.14028/3/2008-Estt.(L) dt. 16-11-2009)
Encashment of HPL against shortfall in Earned Leave of 300 days on retirement
in respect of Executive/Non-executives absorbed/directly recruited in BSNL
The orders for applicability of DOP&T OM No.14028/3/2008-Estt.(L) dated 25-9-
2008 and 16-11-2009 for encashment of HPL against the short fall in Earned Leave of
300 days has been issued in respect of unabsorbed officers who have retired/will retire
from BSNL vide this office order of even number dated 17-5-2010. The case for
applicability of DOP&T OM no.14028/3/2008-Estt.(L) dated 25-9-2008 and 16-11-
2009 for encashment of HPL against the shortfall in Earned Leave of 300 days in
respect of BSNL absorbed/directly recruited Executives/Non-executives has been
under consideration in this office.
2.It has been decided with the approval of the Board of Directors of BSNL that orders
of Government for encashment of HPL against the short fall in Earned Leave of 300
days may be implemented for BSNL absorbed /directly recruited Executives/Non
Executives w.e.f. 1-1-2006 as per provisions of DOP&T OMs mentioned above.
(BSNL HQ No.1-13/2010-PAT(BSNL)encashment of HPL dt. 1-7-2010)
Payment of leave encashment on revised pay w.e.f. 1-1-2007
Consequent on revision of pay of Board level and below Board level executives w.e.f.
1-1-2007, the issue of grant of encashment of leave on cessation of service due to
superannuation/resignation on revised pay has been under consideration this office.
2. The approval of the competent authority is, hereby, conveyed for the grant of
encashment of Earned Leave to Board level and below Board level Executives on
retirement/resignation on their revised IDA pay w.e.f. 1-1-2007.
3. The lumpsum cash payment will be only to the extent of 300 days of earned leave
in case of superannuation and 150 days in case of cessation of service due to
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resignation from service, including the number of days for which encashment was
availed along with LTC. The existing method of calculation for encashment earned
leave on retirement/resignation will remain unchanged.
(BSNL HQ No.1-59/2009-PAT(BSNL) dt. 4-1-2010)
Payment of leave encashment on revised pay to Non-executive employees w.e.f. 1-
1-2007
The pay of Non executives employees has been revised w.e.f.1-1-2007 vide this office
order no.1-16/2010-PAT(BSNL) dated 7-5-2010. The case for grant of encashment of
leave to Non-executive employees on cessation of service due to superannuation
/resignation on revised pay has been considered by this office.
2. It has been decided with the approval of the competent authority that payment
of encashment of Earned Leave to Non-executive employees on
retirement/resignation may be made on their revised IDA pay we.f. 1-1-2007
3. The lumpsum cash payment will be only to the extent of 300 days of earned
leave in case of superannuation and 150 days in case of cessation of service due to
resignation from service, including the number of days for which encashment was
availed alongwith LTC. The existing method of calculation for encashment earned
leave on retirement/resignation will remain unchanged.
(BSNL HQ No.1-18/2010-PAT(BSNL) dt. 23-6-2010)
In case of death while in service and after retirement etc., but before the amount could
be paid, payment will be made to the family member in the following order.
i) Widow / Widower
ii) Eldest Surviving son
iii) Eldest Surviving unmarried daughter.
iv) Eldest Surviving widowed daughter.
v) Father
vi) Mother
vii) Eldest Surviving brother below 18 years.
viii) Eldest Surviving unmarried sister.
ix) Eldest Surviving widowed sister.
The payment can be made to only one person. (Rule 39-C)
GENERAL PROVIDENT FUND
Admission to the Fund
DOT/DTS/DTO employees as on 30-9-2000 & working in BSNL are subscribers to
the GPF. The officials / Officers recruited on or after 01.10.200 are not eligible to
subscribe to this fund. However. They are covered under EPF Scheme 1952. Each
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BSNL, India For Internal Circulation Only 44
subscriber is allotted with an account number by the GPF section. The account
number thus allotted shall be noted down in the service book.
Necessary nominations should be obtained by the Head of Office from the employees
and forwarded to the Accounts Officer (TA) of SSA/Circle for placing in the service
book. On receipt of the statement of nominations, an account number is allotted
through a Register of account numbers/ General Index register and a ledger account is
opened. Nominations received shall be kept in safe custody after noting down the
account number in the nomination and making necessary entries in a Register of
nominations. Serial number of the register of nomination shall also be noted in the
nomination and ledger card.
Subscription
Once the account number is allotted recovery of subscription, subject to a minimum
of 6% of pay as on 31st March ( maximum 100% of pay), shall be commenced and
continued to be recovered for the entire service including foreign service. The rate of
subscription once fixed can also be increased twice and reduced once in a year.
The subscription shall not be recovered during suspension but the subscriber shall be
permitted, on reinstatement, to remit the arrears in lump sum or in instalments. The
subscriber shall also have an option not to subscribe the fund during EXOL/HPL. The
subscription to GPF shall be stopped before three months to retirement.
Advances
An advance up to three months pay or half the amount at credit, whichever is less,
may be sanctioned by the Head of office to a subscriber for one or more of the
following reasons:
(Advance in the case of Head of Office will be sanctioned by the next higher
authority)
(a) to pay expenses in connection with the illness, confinement or a disability,
including the traveling expenses of the subscriber and members of the family or any
person actually dependant on him;
(b) to meet cost of higher education including the traveling expenses of the
subscriber and members of his family or any person actually dependant on him in the
following cases:-
(i) for education outside India for academic, technical, professional or vocational
course beyond the high School stage, and
(ii) for any medical, engineering or other technical or specialized course in India
beyond the High School stage, provided that the course of study for not less than three
years.
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(c) to pay obligatory expenses on a scale appropriate to the subscriber‘s status
which by customary usage the subscriber has to incur in connection with betrothal or
marriages, funerals or other ceremonies;
(d) to meet the cost of legal proceedings instituted by or against the subscriber,
any member of his family or any person actually dependant on him; this may be
availed in addition to any advance for the same purpose from any other Government
source;
(e) to meet the cost of the subscriber‘s defence where he engages a legal
practitioner to defend himself in an enquiry in respect of any alleged official
misconduct on his part;
(f) to purchase consumer durable such as TV,VCR/VCP,Washing Machines,
Cooking range, geysers and Computer.
Note: Production of documentary proof for drawal of advance should not be insisted
upon. It would suffice, if the applicant gives sufficient details in support of the
application.
(Rule 12(1),GID(2,3,4 and 11)
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Special Advances
An advance in excess of 50% of the amount at credit or three months pay or involving
recovery in more than 24 installments or when the earlier advance is not fully
recovered or where the advance is required for reasons other than those mentioned
under para 3, is treated as Special Advance. This can be sanctioned by Heads of
departments and various other authorities specified in V schedule to GPF rules. Heads
of Offices authorized to exercise the powers of Heads of Departments under DFPRs
can also sanction the special advance. Special reasons are to be recorded for sanction
of such advances
If the Special Advance is sanctioned before the completion of the earlier advance, the
balance of the previous advance remaining outstanding will be added to the amount
sanctioned as special advance and the total consolidated amount recovered in suitable
number of installments not exceeding 36. (Rule 12(2)(3)).
Advance is not to be sanctioned during the last three months of service before
superannuation. (GID
12,Rule12)
Recovery of Advance:
Recovery should commence with issue of pay for the month following the one in
which the advance was drawn.
Suspension of recovery
Recovery not to be made except with official's consent in cases of suspension, or on
leave for ten days on HPL or LWP in a calendar month. When advance of pay is
being recovered, recovery may not be made on subscribers written request.
Withdrawals
Authorities competent to sanction special Advances as mentioned in Para 3.1 above
can sanction withdrawals from GPF for one or more of the following purposes, if
advance for the same purpose is not drawn at the same time.
(A) after completion of 15 years or within 10 years of superannuation, whichever
is earlier:
Withdrawal is normally allowed upto 50% of the amount at credit or six
months pay, whichever is less, and in special cases up to 75% of the at credit for:-
(a) meeting the cost of higher education, etc. as per Rule 12(1)
(b) meeting the expenditure in connection with the betrothal/marriage ceremony
of the subscriber or his sons/daughters, or any other female relation actually
dependent ;
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(c) meeting expenses on the illness, etc. as per rule 12(1)(a)
(d) meeting the cost of consumer durable such as TV, VCR/VCP,Washing
Machines, Cooking range.Geysers and Computer.
(B) At any time during the service:- Withdrawal is allowed up to 90% for:-
(a) building or acquiring a suitable house or ready-built flat for his residence
including the cost of the site or any payment towards allotment of a plot or flat by the
DDA,State Housing Board or a House Building Society;
(b) repaying an outstanding amount on account of loan expressly taken for
building or acquiring a suitable house or ready-built flat for his residence;
(c) purchasing a house-site for building a house thereon for residence or repaying
any outstanding amount on account of loan expressly taken for this purpose;
(d) reconstructing or making additions or alterations to a house or a flat already
owned or acquired by a subscriber;
(e) renovating additions or alterations or upkeep of the ancestral house or a house
built with the assistance of loan from Government; and
(f) constructing a house on a site purchased under clause (c)
Notes:- 1. Withdrawal for construction/purchase of a house or flat or site or for
additions/alterations to a house/flat already owned, will be ,subject to the condition
that the total of such withdrawal and advance availed from other Government sources
should not exceed the maximum limit of cost ceiling prescribed under the house
Building advance Rules.
2. Withdrawal for construction/purchase of house or flat or site will be permissible,
at the place of his duty, if the subscriber had taken a loan from Government for
acquiring a house at a place other than the place of duty.
3. Withdrawal for construction the above purposes will be sanctioned only after
submission of a plan duly approved by the local municipal authorities, if the plan is
actually got to be approved
Withdrawal for repayment of loan taken for construction/purchase of
house/flat under clause(b) will be limited to 3/4ths of the balance at credit plus
withdrawal made under clause (a) reduced by the amount of withdrawal. For example,
if the withdrawal already sanctioned for construction/purchase etc., is Rs.50000, the
amount asked for now for repayment of loan under clause (b) is Rs.15000, and the
amount at credit is Rs.30000 the entitlement will be worked out as under:
75% of (30000 +50000) i.e., 60000 (-) 50000 = 10000
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Hence withdrawal under clause (b) will be allowed only up to Rs.10000.
Withdrawal for purchase /construction of house/flat under Clause (a) or
for additions/alterations to an existing house will be allowed, even if the house-site or
house is in the name of the spouse, provided the spouse is the first nominee to receive
the GPF accumulations as per the nomination made by the subscriber.
WITHIN 12 MONTHS BEFORE THE DATE OF SUBSCRIBER`S RETIREMENT
ON SUPERANNUATION:- Withdrawal is allowed up to 90% of the amount at credit
without linking to any purpose.
ONCE DURING THE COURSE OF A FINANCIAL YEAR:-Withdrawal is allowed
of an amount equal to one year‘s subscription towards Group Insurance Scheme for
the central Government employees.(Rule 15, notes 1 to 6, Rule 16(1))
FOR THOSE WITH 15 YEARS OR ARE DUE TO RETIRE ON
SUPERANNUATION WITHIN 5 YEARS AND ONCE DURING SERVICE.:
(i) Withdrawal up to Rs.110000 is allowed for purchase of motorcar for officers
with basic pay+NPA+stagnation increment not less than Rs.10500; and
(ii) Withdrawal up to Rs.20000 is allowed for purchase of motor cycle /scooter for
officers with basic pay+DP+NPA+stagnation increment not less than Rs4600, subject
to certain conditions. GID (1),Rule 15)
(iii) Withdrawal in respect of the officers at (i) above up to Rs.,22000 for making
deposit for booking a car and up to Rs.4000 for making deposit for booking a
scooter/motor cycle for officers at (ii) above, will be permitted, subject to the
condition that this amount will be taken into account for the purpose of overall ceiling
prescribed for withdrawal for purchase.
Note 6: Part-final withdrawals are also allowed for repaying the Government
loan already taken for the purpose.
Note 7: For those whose service falls short of the prescribed limit of 15 years by not
more than 6 months, ministry may sanction advance for purchase of car/scootor,
which may be converted as withdrawal on their completing the 15 year period of
service.
For those with 28 years service or are due to retire on superannuation within 3
years:
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Withdrawal upto Rs.10000 or one-third of the amount at credit is admissible once in
the career for the extensive repairs or overhauling of motor car for officers drawing
pay not less than Rs.1400 (under 1973 pay rules) , if at least five years have elapsed
since the car was purchased. ( In the case of secoond-hand car the date of first
purchase to be taken into account)
Final Withdrawals should Not Be Allowed For More Than One House
(G.I.M.F.O.M.No.f.4(I)-E.V(B)/62 dt. 17/4/62)
Conversion of advance into withdrawal:
an advance (or advances) drawn under Rule 12 may be converted as withdrawal,
subject to fulfilment of the conditions under rules 15 and 16, viz., purposes. limits
etc., prescribed. For this purpose the outstanding balance(s) of earlier advances will
be taken into account as credit along with the amount at credit on the date of
conversion.(Rule 16 A)
If any one or more advances do not qualify for conversion, the outstanding
balance of such advance(s) should be worked out notionally. And the total balance
treated as fresh advance which can be recovered in not more than 24 instalments /36
instalments.
Preparation of GPF Ledger
Separate Schedules for GPF Subscriptions and Refunds of Advances (Credit
Schedule) and withdrawals from the fund (Debit Schedule) are prepared furnishing
Account No, Name of the Subscriber, Amount of Subscription, Amount of Refund of
advances in the credit schedule and amount withdrawn in the debit schedule and
forwarded to AO (TA) of SSA/Circle. The following information should be given in
the remarks column of the schedule.
i) reasons for discontinuance of subscriptions and of refund of advances
ii) The period of leave and date of its commencement in the case of subscriber
who is on leave and discontinued payment of subscription or repayment of advances.
iii) a brief explanatory note in cases where-
a) The amount of subscription in a particular month differs from that realized in the
preceding month.
b) Where a subscriber‘s name appears for the first time.
Copies of sanction for withdrawal from the fund shall also been send along with the
debit schedule.
The total of subscriptions/ refund of advances and withdrawals as arrived in the
schedules for that month should agree with the figure booked against the head in the
detailed head wise statement enclosed with the Trial Balance. This is a very
important check to be exercised before sending the schedules to the AO(CA). The
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difference if any due to misclassification/ rectification thereof etc., shall also be
explained.
Maintenance of Ledger Accounts
On receipt of the Credit/Debit Schedules the amount of subscription, refund of
advances and withdrawals shall be posted in the ledger account after verifying the
name, account number with entries in the ledger on monthly basis. If any item could
not be posted for want of ledger card or insufficient information in the schedule the
same shall be posted in a register of un-posted items and clearance of the un-posted
items shall be watched separately.
Maintenance of Broad-sheet
Broad-sheets are maintained unit-wise to verify the accuracy of posting in the Ledger
Cards. The amounts of subscriptions, refund of advances and the withdrawal are
posted in the Broad Sheet from the Ledger accounts.. The totals amounts of the
subscriptions, refund of GPF advances and the with-drawls are worked-out in the
Broad Sheet. The amounts of total credits and debits so arrived for the month as
worked out in the unit wise broad-sheets are entered in a Consolidated Broad-Sheet.
a) The total of Debits and Credits as per broadsheet should agrees with figures in
the monthly Trial Balance
b) If there is any difference between the broadsheet and detail book figures, the
postings in the broadsheet should be checked with the schedules. The amounts shown
in each schedule against individual account number should be ticked with the
corresponding figures posted in the broadsheet and discrepancy located and rectified.
Reconciliation Sheet.
Receipts/Payments. Month………………
Name of the Unit Figures as per Trial
Balance
Figures as per
Broad-Sheets.
Differences
1 2 3 4
Particular care should be taken to see that all discrepancies are settled without any
delay and that action taken in each case is recorded in detail in the explanatory sheet
before it is submitted to the Accounts officer for review. When reviewing the Unit
broadsheets and the consolidated broadsheet the JAO/AAO should also see;
i) that the Unit Broadsheet is prepared from the ledger. This is tested by
checking a few entries in the broadsheet with the corresponding figures in the ledger.
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ii) that all causes of omissions of subscriptions due to discontinuance, leave,
suspension, death, discharge or retirement are properly explained against the blank
numbers in the Unit broadsheet.
iii) that variations in subscriptions are due to authorized causes and not due to
wrong postings.
iv) That in the case of differences between the unit broadsheets and the figures in
departmental accounts, the classification of differences is made under the rules and
action taken where necessary and
v) Those in cases of differences due to posting of any amounts in the wrong
ledgers, the items concerned are taken to the correct ledgers.
Missing Credits
In case credits for subscription do not appear in their respective accounts, it is
essential that ledger accounts should be scrutinized thoroughly and omissions
completed. The cases, in which subscriptions have not appeared, should be entered in
a Register of Missing Credits. This register is intended only for recording missing
credits i.e., original subscriptions. Debits on account of temporary advances and
missing credits on account of refunds may, if considered necessary, also be watched
through the Missing credits register.
As soon as the missing credits are posted in the registers, references should be made
to the Drawing and Disbursing Officers concerned with a view to ascertain the exact
position of the missing credits. Replies to these references should be closely watched
and necessary note kept in the register as well as in the respective ledger account
before the documents containing the requisite information are recorded under the
orders of the JAO/AAO.
The missing credits registers should be closed each month after recording the action
taken up to date against each item and submitted to the Accounts Officer on the last
working day of each month.
Interest (8% Financial year 2007-2008)
At the end of the year, after completion of posting (for the year) interest due on each
accounts is calculated and added to the balance of the account. The closing balance is
struck. The interest calculations should be checked independently. Test examination
of the accounts also is done by the examiner and JAO/AAO and initialled by them.
The interest as calculated in the individual ledger account should be posted in the unit
Broadsheets concerned in the column prescribed there-for against the respective
Account Number. The total of interest column in each unit Broadsheet should then be
struck and carried over, after careful check, to the consolidated Broadsheet.
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BSNL, India For Internal Circulation Only 52
(i) The total amount of interest added to all the accounts as ascertained from the
consolidated broadsheet shall be adjusted in the accounts by Debiting A/C per contra
Credit to the GPF A/C.
ii) The debit should not include the amount of interest paid during the year on
closed accounts as the adjustment must have been made before making the payment.
After the accounts for March (Final) are closed, the total of opening balance, receipts
and interests should then be struck individually for each Account and entered in the
column provided for the purpose in the unit broadsheet. After deduction of the
amounts withdrawn, if any,(which are also totalled up and noted in the relevant
column) the closing balance should be worked out and entered in the column intended
there-for. The closing balance for each account as per Broadsheet should be verified
with that shown in the ledger account. Any discrepancy noticed should be settled
immediately.
The totals of the Unit Broadsheets should then be compared and agreed with the
figures in the consolidated broadsheet.
Review of GPF Accounts
The review work of the group should be carried out regularly and systematically and
the results of the review recorded in a register in Form No. SY-3 which should be
maintained separately for each Junior Accountant. Any discrepancy should be settled
immediately.
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BSNL, India For Internal Circulation Only 53
Maintenance of Broad Sheet by Controller Communication Accounts
As the employees of BSNL are treated as on deputation from DOT, the GPF accounts
are to be maintained by the Controller Communication Accounts (DOT Cell).
Since the detailed accounts together with GPF Ledger Cards are maintained in the
Telecom Accounts Section of SSA/Circle, only Broad Sheet is maintained by the
DOT Cell. On receipt of the Claims Payable/ Claims Receivable from the SSAs
along-with the GPF Schedules in support of the Claim, the broad sheet is posted from
these schedules.
Final Payment
Final payment of GPF accumulations arises in the following events:-
(a) Resignation, termination of service, dismissal and removal from service; or
(b) Retirement; or
(c) death
The payment of GPF balance at the credit of the employee is done by the DOT Cell
by a cheque on the basis of the details available in the Broad Sheet maintained in
DOT Cell.
Transfer of balances
On transfer from one Circle to another Circle :
The balances of GPF moneys including interest will be transferred by the DOT Cell
(on the basis of LPC) by issuing cheque to the DOT Cell under whose jurisdiction the
employee has been transaferred under intimation to the Circle Corporate Accounts
Offices/SSAs concerned.
DEPOSIT-LINKED INSURANCE SCHEME
Under this an additional amount equal to the average balance in the account during
the 36 months preceding the month of death is payable, subject to a maximum of
Rs.60000 (w.e.f.25-4-98) and subject to the following conditions:-
(i) The balance at the credit of such subscriber should not be less than the
minimum given below:
Maximum of the scale of post which the
subscriber was holding (CDA)
Monthly minimum balance
during the period
Rs. 12000 or more 25000
Rs.9000 to Rs.11999 15000
Rs.3500 to Rs.8999 10000
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BSNL, India For Internal Circulation Only 54
Less than rs.3500 6000
(ii) The subscriber should have put in at least 5 years service at the time of death.
While calculating average monthly balances during the 36 months the balance at the
end of March as also at the end of the month preceding the month of death will
include interest credited
Death taking place before midnight of the last working day should be treated a death
in service entitling the nominee of the subscriber to the benefit of this scheme
Applicable in the case of suicide also.
The Accounts Officer will make payment of this additional amount at the time of
making final payments of GPF balance, without any further sanction.
In the case of missing employees payment due under DLI scheme can be made to the
nominees/heirs after expiry of a period of seven years following the month of
disappearance of the subscriber provided the claimants produce a proper and
indisputable proof of death or a decree of the court that the employee concerned shall
be presumed to be dead as laid down in section 108 of the Indian Evidence Act.
Any dues to government are recoverable from the payments made under the scheme.
Though for administrative convenience recovery of subscription are discontinued
during the last three months of service, the official continues to be a subscriber during
this period and this will not affect payment under the scheme.
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BSNL, India For Internal Circulation Only 55
EPF
Employees Provident Fund and Miscellaneous Provisions Act, 1952
[Applicable to Establishments employing 20 or more persons including the persons
engaged by or through contractors]
The membership of an eligible employee under the Employees‘ Provident Funds &
Miscellaneous Provisions Act, 1952 is compulsory from the first day of his
appointment.
Contribution to P.F.is payable monthly by the employer and the employee both at
equal rate (12%). The employer is required to deposit both the shares of contribution.
Out of employer‘s share of contribution, 8.33% equivalent is to be diverted to pension
fund account while the balance of employer‘s share of contribution (3.67%) and the
employees share of contribution in toto will be credited to P.F. account.
Contribution to DLI (0.5%), Administration charges on PF (1.1%) & Administration
charges on DLI (0.01%) are also payable by Employer.
It shall be the responsibility of the Principal employer to pay the above contributions
& their administration charges by himself in respect of the employees directly
employed by him and also in respect of the employees employed by or through a
contractor.
In that connection, the following forms are to be filled in:
1.Form 5A (once in the beginning)
An employer in relation to a factory or establishment as covered under the Act shall
furnish the particulars of ownership in form 5A in duplicate along with branches and
departments to the R.P.F.C. Any change of ownership and particulars is to be
intimated within 15 days.
2.Form 9 (within one month of the date of coverage)
Contain a statement of all the employees in the establishment giving some details
about them viz., name of the employee, father‘s name, age, date of employment,
gender, date of his joining the establishment. This form has to be submitted to the
Regional Provident Funds Commissioner for the time once after coverage and not to
be repeated for subsequent period.
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BSNL, India For Internal Circulation Only 56
3.Form 2 (immediately on enrolment as members to be submitted to RPF with form
15)
It is a nomination form in which a member appoints his/her successor to provident
fund in case of his or her demise who has to be the member of his/her family. In case
there is no family then to any person.
4.Form 5 (15th
of the following month)
This form is similar to form 9 above giving necessary information in case of those
employees who join the establishment after submission of form 9 above.
5.Form 10 (15th
of the following month)
It is a list of employees who leave the establishment after submission of Form 9/ form
5 together with the date of leaving and reason for leaving therefore.
6.Form 12A (25th
of the following month)
This is to be submitted every month by giving the details of basic pay and DA paid,
contribution deducted, contribution paid, administration charges paid together with
the number of employees/members
7.Challan of deposit
On the coverage of establishment, the employer is required to deposit the following
dues in the account noted against each:-
(i) P.F. contribution @12% plus 3.67% in Provident fund Account No.1
(ii) Pension fund contribution @8.33% in Pension Account No.10
(iii) The administration charges (Provident fund) @1.1% of the Basic Pay +DA
in Account No.2
(iv) Insurance fund contribution @0.5% to be deposited in Account No.21
(v) Administration charges (D.L.I.) @0.01% in Account No.22
All these remittances are remitted on one challan in the State Bank of India by a
single cheque favouring SBI Account of Employees‘ Provident Fund. The amount can
also be remitted in cash.
The challan of remittance along with form 12A is to be sent to the R.P.F.C. by 15th
of
the following month.
The establishment is required to maintain a regular record of the amount deducted
from the salary of the member by providing appropriate columns in the pay sheet
which is open to the employee for inspection.
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BSNL, India For Internal Circulation Only 57
The establishment is required to maintain an inspection book which will be available
to the Inspector when he visits for recording his remarks regarding the maintenance of
record of provident fund.
The copies of all the returns sent to the R.P.F.C. will be maintained by the
establishment to be shown to the Inspector of Provident fund as and when he visits the
establishment.
The record of Provident fund for each of the employee is to be monthly posted in one
form 3A as required by paras 35 and 42 of the Employees‘ Provident funds Scheme
read with para 19 of the Employees‘ Pension Scheme, 1995. At the year end these
forms together with form 6A and the reconciliation statement of the dues and paid
shall be sent to RPFC. This is to be sent to RPFC by 30th
April.
The Employees’ Pension Scheme, 1995
Minimum 10 years‘ Contributory Service is required for entitlement to Pension
Normal Superannuation Pension is payable on attaining the age of 58 years
A Member, if he so desires, he may be allowed to draw monthly reduced pension
from a date earlier than 58 years of age but not earlier than 50 years of age. In such
cases, the amount of pension shall be reduced at the rate of 3%, for every year, the age
falls short of 58 years.
Pensionable Service
Total actual service shall be rounded off to the nearest year (service less than 6
months ignored)
Weightage of 2 years in case of superannuation on attaining the age of 58 years or
after rendering a service of 20years or more.
Pensionable salary:- Average of 12 months preceding the date of exit.
Kinds of Pension:
Superannuation Pension:- Served 20 years or more & retired on attaining the age of
58 years.
Retirement Pension:- Served 20 years or more & retired before attaining the age of 58
years.
Short Service Pension:- Served 10 years or more but less than 20 years
Monthly Pension= Pensionable salary x Pensionable service
70
For Pension for Permanent & Total Disablement during the service, no minimum
service. Minimum Pension Rs.250/-
Commutation of Pension
Maximum :- 1/3
rd of Pension
Commuted Value:- Portion of Pension to be commuted x 100
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BSNL, India For Internal Circulation Only 58
WIDOW PENSION
(Till death or remarriage whichever is earlier)
Death in Service Pension calculated up to death or Rs.450
or Table C Whichever is more
Retired before 58 years & eligible for
pension but dies before commencement
of pension
Pension calculated up to exit or Rs.450 or
Table C whichever is more
Died after commencement of Pension 50% of Pension (Minimum Rs.450)
CHILDREN PENSION (in addition to widow pension)
Each child 25% of Widow Pension (Minimum Rs.150) (up to 25 years of age,
Maximum 2 children at a time)
Children pension or orphan pension to Total & Permanently disabled children
for life ( in addition to children pension )
At the time of death No Widow or after death of widow
Children eligible to Orphan Pension:- 75% of Widow Pension
Minimum Orphan Pension for each child Rs.250/- (Maximum 2 children at a time)
If no spouse/child, the official can nominate nominee to receive monthly widow
pension
At the time of death of the official, no spouse/no child/no nomination, widow
pension to Dependent Father. Afterwards to Dependent Mother.
Payment of pension: The claims, complete in all respects submitted along with the
requisite documents shall be settled and benefit amount paid to the beneficiaries
within 30 days from the date of its receipt by the Commissioner.
Benefits on leaving service before being eligible for monthly members pension:-
If a member has not rendered the eligible service prescribed (10 years) on the date of
exit, or on attaining 58 years of age whichever is earlier, he/she shall be entitled a
withdrawal benefit as laid down in table ‗D‘ or may opt to receive the scheme
certificate (indicating the pensionable service, pensionable salary and the amount of
pension due on the date of exit from the employment) provided on the date he/she has
not attained the 58 years of age. If he/she is subsequently employed in an
establishment coverable under this Scheme, his/her earlier service as per the scheme
certificate shall be reckoned for pension alongwith the fresh spell of pensionable
service.
DEPOSIT LINKED INSURANCE SCHEME
Additional amount payable in addition to EPF balance, in case of death in
service
Average balance of EPF in preceding 12 months.
If average balance exceeds Rs.35,000, the amount payable shall be Rs.35000 + 25%
of amount of such excess (maximum Rs.60,000)
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BSNL, India For Internal Circulation Only 59
Withdrawals from Employees Provident fund
Type of Withdrawal Condition Amount
Receivable
Document Required
1. Withdrawal from
the fund for (Para 68-
B)
(Available once in
life time)
(a) The purchase of site
for construction of house
5 years of
membership of
the Fund ( Min.
balance in
member‘s a/c
should be
Rs.1000)
24 months wages
( Basic + DA)
OR
Member‘s own
share of
contribution + Co‘s
share of
contribution with
interest thereon
Original of allotment
order ( in case the
purchase is through
agency) with copy.
Original to be
returned after
verification. Original
Title Deed ( if
purchase is from
individual) with
copy. Original to be
returned after
verification.
Photocopy of the
Registered
Agreement with
Seller alongwith the
receipt of advance
paid alongwith
Original copy for
verification and
return.
(b) The Construction of
House
--- do --- 37 months wages
(Basic + DA)
OR
Member‘s own
share of
contributions +Co‘s
share of
contribution with
interest thereon
Same as per Col.(a)
Photocopy of the
plan approved by the
Colletcor‘s Office or
Municipal
Corporation or the
Local Bodies, Gram
Panchayat as the case
may be.
Type of Withdrawal Condition Amount Receivable Document Required
© The purchase of ---- do ---- --- do --- 1.Original allotment
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BSNL, India For Internal Circulation Only 60
dwelling flat order ( if purchase is
through agency) with
copy.
2.Copy of the
Agreement with
seller, duly registered
under the Indian
Registration Act,
1908 ( Photocopy +
Original) for
verification and
return.
4. Non-
encumbrance
declaration from the
member and seller.
5. Receipt of
advance payment
towards flat.
5. If purchase is in
the Co-op Housing
society, then
Registration No. of
the Society.
2nd
Advance
(d) Additions,
Alterations or
improvements to the
dwelling house
5 years from the
date of
completion of
dwelling house
12 months basic or
member‘s own
share of
contributions with
interest thereon
1.Proof of
ownership.
2.Details of addition/
alteration to be
carried out alongwith
permission to carry
out additions etc.
3.Estimate from the
appropriate authority.
3rd
Advance
(e) --- do --- 10Years from
the date of
completion of
the dwelling
--- do --- --- do ---
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BSNL, India For Internal Circulation Only 61
house
2. Withdrawal from the
fund for repayment of
loan in special cases to
State Govt., Registered
Co Op Societies, State
Housing Board,
Nationalised Banks,
Public Financial
Institutions, Municipal
Corporation or Secular
Bodies
10 years
membership of
the fund and
should have
Rs.1000 as
employee‘s
share of
contributions +
Co‘s share of
contributions
with interest
thereon.
36 months wages
(Basic + DA)
OR
Member‘s own
share
A certificate from
the leading
authority furnishing
the details of loan
and outstanding
amount and if they
are ready to accept
premature payment.
3. Advance from the fund
for illness viz.
hospitalization for more
than a month, major
surgical operation or
suffering from TB,
leprosy, Paralysis,
Cancer, Heart ailment
etc. ( for member of
family and self)
6 months wages
(Basic+DA) or
his share of PF
whichever is less.
1.Certificate from
the Regd. Medical
Practitioner, Govt
Doctor for
hospitalization or
operation. In case of
serious diseases, of
the specialists.
2.Certificate from
employer that ESI
benefits are not
available to the
member.
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BSNL, India For Internal Circulation Only 62
4.Advance from the
fund for marriage of
Self/son/daughter/sister/
brother etc.
7 years
membership of
the fund and the
minimum balance
of member‘s fund
a/c should be
Rs.1000/-
50% of member‘s
own share of
contribution.
(Max. advances
allowed 3)
Marriage invitation
Card / declaration
of member.
5.Advance from the
fund for education of
son/ daughter
---- do --- 50% of member‘s
own share of
contribution.
(Max. advances
allowed 3)
Certificate from
the institution
regarding the
course of study and
anticipated
expenditure.
6. Grant of Advance in
abnormal condition
(Para 68L) Natural
Calamities etc.
1.Ceritificate of
damage.
2.State Govt.
declaration.
Rs.5000 or 50% of
member‘s own
share of
contributions
Certificate from
the appropriate
authority within
the State Govt. (
To apply within 4
months)
7. Withdrawal within
one year before
retirement.
1.He should have
attained the age of
54 years.
2.to retire within
ensuing year.
90% of both
contributions
Certificate by the
employer to this
effect.
8. Option for
withdrawal for
investment in Pension
Beema Yojana
1.More than 55
years of age.
2.LIC Policy for
Beema Yojana
1.90% of both
contributions.
2.Payment to be
made to LIC
directly.
Proposal from LIC
duly accepted and
passed.
12A. Option for commutation: - A member eligible to pension may, in lieu of pension
normally admissible under paragraph 12, opt on completion of three years from the
commencement of this Scheme, to commute upto a maximum of one-third of his
pension so as to receive hundred times the monthly pension as commuted value of
pension. Balance pension will be paid on monthly basis as per option exercised under
paragraph 13.
Explanation: If for example, the normal pension under paragraph 12 is Rs.600 and the
pensioner opts to commute one third of this monthly pension, the commuted value
will be equal to 1/3 X 600 X 100 = Rs. 20,000 and the same shall be paid at the time
of exercise of option for commutation. The balance of pension payable on monthly
basis is Rs.400.00)
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BSNL, India For Internal Circulation Only 63
13. Option for return of capital:-- (1) A member eligible to pension may, in lieu of
pension normally admissible under paragraph 12, (subject to commutation of pension,
if any, under paragraph 12A) opt to draw for reduced pension and avail of return of
capital under any one of the three alternatives given below:
Sl.No Alternatives Revised Pension
payable
Amount payable as
return of capital
1 Revised pension during
lifetime of member with
return of capital on his
death.
90% of original
monthly pension.
100 times the original
monthly pension on
death of member to
the nominee.
2 Revised pension during the
lifetime of member, further
reduced pension during
lifetime of the widow or
her remarriage whichever
is earlier and return of
capital on widow‘s death/
remarriage.
90% of original
monthly pension to
the member. On his
death 80% of the
original monthly
pension to the
widow.
90 times the original
monthly pension on
dearth of widow/
remarriage to the
nominee.
3 Pension for a fixed period
of 20 years not
withstanding whether the
member lives for the period
or not
875% of the
original monthly
pension for a fixed
period of 20 years.
The pension will
cease thereafter.
100 times the original
monthly pension at
the end of 20 years
from the date of
commencement of
pension to the
member if he is alive,
otherwise to his
nominee.
Explanation 1:- In alternative 2, if the (spouse) dies or remarried before the death of
member, capital equal to 90 times the original monthly pension shall be paid to the
nominee on the member‘s death.
Explanation 2:- In alternative 3, if the member dies before the end of the 20 year
period, the pension shall be paid to his nominee for the balance period.
Explanation 3:- In the case of a member who is eligible for permanent total
disablement pension, and where the payment of such pension is to commence before
his attaining the age of 50 years, the option shall also be admissible but in such cases
the actual pension payable shall be reduced by 1 per cent. And the return of capital
shall be further reduced by Rs.1,000 for every year by which the age at the
commencement of pension falls short of 50 years.
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BSNL, India For Internal Circulation Only 64
Explanation 4:- In cases of exercise of option for commutation under paragraph 12A,
balance monthly pension payable after commutation shall be deemed to be the
original pension for the purpose of this paragraph.
TABLE C
(See Paragraph 16)
EQUIVALENT WIDOW PENSION.
Salary at day of
death not more
than
Equivalent widow
pension
Salary at day of
death not more
than
Equivalent widow
pension
(Rupees) (Rupees) (Rupees) (Rupees)
Upto 300
350
400
450
500
550
600
650
700
750
800
850
900
950
1000
1050
1100
1150
1200
1250
1300
1350
1400
1450
1500
1550
1600
1650
1700
1750
1800
250
327
343
359
375
391
408
425
442
459
476
493
510
527
544
561
578
595
612
629
646
664
682
700
718
736
754
772
797
808
826
3300
3350
3400
3450
3500
3550
3600
3650
3700
3750
3800
3850
3900
3950
4000
4050
4100
4150
4200
4250
4300
4350
4400
4450
4500
4550
4600
4650
4700
4750
4800
1401
1421
1441
1461
1481
1501
1521
1541
1561
1581
1601
1621
1641
1661
1681
1701
1721
1741
1751
1761
1771
1781
1791
1801
1811
1821
1831
1841
1851
1861
1871
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BSNL, India For Internal Circulation Only 65
1850
1900
1950
2000
2050
2100
2150
2200
2250
2300
2350
2400
2450
2500
2550
2600
2650
2700
2750
2800
2850
2900
2950
3000
3050
3100
3150
3200
3250
844
862
880
898
916
935
954
973
992
1011
1030
1049
1068
1087
1106
1125
1144
1163
1182
1201
1221
1241
1261
1281
1301
1321
1341
1361
1381
4850
4900
4950
5000
5050
5100
5150
5200
5250
5300
5350
5400
5450
5500
5550
5600
5650
5700
5750
5800
5850
5900
5950
6000
6050
6100
6150
6200
6250
6300
6350
6400
6450
6500
1881
1891
1896
1901
1906
1911
1916
1921
1926
1931
1936
1941
1946
1951
1956
1961
1966
1971
1976
1981
1986
1991
1996
2001
2006
2011
2016
2021
2026
2031
2036
2041
2046
2051
NOTE: In the case of employees drawing wages above Rs. 3500 p.m the widow
pension shall be increased by Rs. 20 p.m for every increase in wages of Rs. 50 or part
BSNL HQ ORDERS
Opening of Employees Provident Fund Account with Regional Provident fund
commissioners in respect of directly recruited BSNL Personnel.
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BSNL, India For Internal Circulation Only 66
In respect of the directly recruited personnel of BSNL –like JTOs etc., who have been
directly recruited by BSNL –Employees Provident fund accounts are required to be
got opened with the Regional Provident fund commissioners.
You are requested to take all necessary steps on priority to complete the above
process and to ensure timely remittance of the EPF deductions with the RPF
commissioners
(BSNL HQ No.500-85/TA-I/BSNL dt. 22-3-2002)
Kindly find enclosed copy of corporate office New Delhi letter No.500-85/TA-
I/BSNL dated 22-3-2002 regarding opening of employees provident fund accounts in
respect of directly recruited employees of BSNL. The SSAs/PAUs have to submit
applications in the prescribed format for allotment of code numbers for the purpose of
remittance of EPF deductions with the Regional Provident Fund Commissioner. The
particulars of sub regional offices of EPF and area covered by each sub region are
furnished below.
Name of RPF/Sub RPF office Units/SSA concerned
Regional Provident fund Office, Pattom,
Trivandrum
Trivandrum/Kollam & Pathinamthitta
Sub Regional Provident fund office
1.Kottayam
2.Ernakulam
3.Kozhikode
4.Kannur
Kottayam
Alleppey,/Ernakulam/Trissur
Kozhikode/Palghat/Malapuram
Kannur
Hence all the units where the directly recruited employees of BSNL are working at
present may take necessary action in this regard immediately. Other units shall take
action as and when direct recruit employees are appointed and report for duty. The
following information are furnished for ready reference.
1. Emoluments means Basic Pay + Dearness Allowance from time to time.
2. Contribution by the employees- 12% of emoluments
3. Employer-12% of emoluments
4. Administrative expenses towards PF-1.1 % of total emoluments of all the
employees (payable by the employer)
5. Contribution towards employees Deposit linked Insurance Scheme –0.5% of
the total emoluments as contribution and 0.01% of the total emoluments as
administrative expenses (payable by the employer)
6. Due date of remittance-within 15 days of close of every month.
7. Mode of remittance-the amount may be remitted by cheque by the local units,
i.e. the units where the RPF commissioners office is functioning and by demand drafts
by other units.
8. Rounding off-
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BSNL, India For Internal Circulation Only 67
a) The contributions by employees and employer in respect of each employee
may be rounded to nearest rupee.
b) The amount under item (4) & (5) above may be rounded to next higher rupee.
9. Accounting
a) The recovery of contributions from the employees through salary bills may be
credited under the head ―190501-CPF recoveries.
b) The contribution payable by the employer shall be accounted in the same
month through a journal slip as indicated below
Dr. XX1600 Employers contribution to CPF
Cr. 1190500 –CPF recoveries
―XX‖ indicates schedule number viz. 151 to 165 under Remuneration
c) Administrative expenses towards PF and the contribution & administrative
expenses towards Deposit Linked Insurance scheme shall be accounted through a
journal slip as below
Dr. XX 1700 Admn., charges on EPF
Cr 1190500-CPF recoveries
―XX‖ indicates schedule number viz. 151 to 165 under Remuneration
d) When the amount remitted to RPF the same may be debited to 1190500
10. Advances/Withdrawal-Advances and withdrawals from the fund will be
allowed only by the RPF commissioners directly to the employees.
11. Modification done in the pay bill package to this effect will be intimated
separately.
All required action may be taken for allotment of codes, recovery and remittance,
mtce. of relevant records in further consultations and coordination with the
/enforcement Officers of the Regional / Sub Regional offices of EPF.
(CGMT TVM Lr.No.TA/20/33-2/EPF/2002-03/4 dt. 31-7-2002 & TA/20/33-
2/EPF/02-03/17 dt. 9-10-2002)
Clarification were sought by various units regarding the limit of Basic Pay and IDA
on which the employer‘s share of EPF contribution as well as the administrative
charges are payable in respect of directly recruited employees.
The clarifications in this regard issued by Corporate office as Circular No.44 vide
letter No.500-85/2004-CAII/BSNL/KW dated 12-8-2005 is enclosed for further
necessary action at your end.
In order to enable the employee to contribute at a rate more than Rupees Six thousand
Five Hundred, it is required vide para 26(6) of EPF scheme 1952, that a joint request
has to be submitted by the employer and the employee to the EPF authorities. Further
the employer has to give an undertaking in writing that he shall pay the administrative
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BSNL, India For Internal Circulation Only 68
charges payable and shall comply with all statutory provisions in respect of such
employees.
In the light of the BSNL Board decision conveyed vide the circular no.44 dated 12-8-
2005, you are requested to submit the requests/undertaking as above on behalf of
BSNL
A compliance report of implementation of the above decisions may be furnished to
this office for further intimation to Corporate office.
(CGMT TVM No.CA/20/33-2/EPF/2004-2005/16 dt. 25-8-2005)
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Sub:-Introduction of EPF facility to staff recruited directly by BSNL
Ref:-This office letter no.1)500-85/TA-I/BSNL dt. 22-3-2002
2)500-85/TA-I/BSNL dt. 14-5-2002
3)500-85/TA-IV?KW dt. 20-6-2003
4)500-85/2002/CA/BSNL dt. 21-4-2003
BSNL has already extended the facility of EPF to its directly recruited staff.
Instructions in this regard has been issued from time to time through letters under
reference.
However, it has been brought to the notice of BSNL Management that the circle are
not following uniform policy regarding extension of EPF facility to the directly
recruited staff of BSNL.
In order to remove all such anomalies, BSNL Board has taken the following decision
in its 61st meeting held on July11, 2005.
a. ―That the benefit of EPF Scheme as per EPF & M.P.Act 1952, be
extended to all the directly recruited employees of the company, either in temporary
or permanent status;
b. That the Basic Pay and IDA be taken for calculation of employer‘s
contribution to the EPF;
c. That the company shall pay employer‘s contribution @12% of
monthly basic pay and IDA drawn by each directly recruited employee:
d. That the company shall pay employer‘s contribution at the rate
proposed at above, on full basic pay and IDA drawn by each directly recruited
employee during each month without limiting the same to Rs.6500 (Rs.Six thousand
and five hundred only)
e. That during the period of suspension, the company shall pay 12% of
subsistence allowance (only the elements of Basic Pay and IDA of subsistence
allowance) payable to directly recruited employer on suspension, as employer‘s share
of contribution towards EPF; and
f. That Heads of Circles/regions/SSA & Units and the DDG (Personnel)
in respect of directly recruited employees of the Circles/Regions/SSA & Units and
Corporate Office respectively are authorized severally to submit request in writing on
behalf of the company, i.e. Bharat Sanchar Nigam Limited (BSNL) to EPF authorities
as required under paragraph 26(6) of EPF Scheme, 1952‖.
BSNL authorities will pay the applicable administrative charges to EPF authorities.
The concerned employee will pay Employees‘ contribution @ 12% of monthly basic
pay and IDA drawn by him.
It is requested to implement the above mentioned decision of BSNL Board
immediately. Past anomalies, if any, shall be settled in accordance with the decision
of BSNLBoard mentioned above.
A compliance report regarding implementation of Board‘s decision should be sent to
this office for submission of ‗Action taken report‘ to the Management of BSNL.
(BSNL HQ No.500-85/2004-CAII/BSNL/KW, dt. 12-8-2005)
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Point of doubt Clarification
1.Whether the food allowance provided
to the non-executive employees from the
financial year 2005-06 and onwards is to
be included while calculating the
employee‘s and employer‘s contribution
1.No. The employee‘s and employer‘s
contribution for EPF should be calculated
@ 12% on Basic Pay plus IDA only as
communicated vide circular No.44 dated
12-8-2005
2.Whether the recovery at the revised rate
will be effected in respect of past cases in
view of circular no.44 dated 12-8-05
2. Yes. In para 5 of the circular no.44
dated 12-8-2005, it has already been
instructed to settle the past anomalies, if
any.
(BSNL HQ No.500-85/2004-CAII/BSNL dt. 6-10-2005)
Sub:-Recovery of Arrears of EPF contribution from the employees recruited by
BSNL
Ref:- Letter no.500-85/CAII/BSNL/EPF/Vol II dated 18-7-2006
Kindly refer to the above mentioned letter vide which it was instructed to pay
the arrears of EPF contribution toward employee‘s share in one installment to EPFO
by BSNL units initially and to recover the same from the pay and allowances of the
concerned employees in six monthly installments. It was also instructed for not
charging any interest from the employees for such payment by BSNL on behalf of the
employees.
Various Associations and officials have given their representation expressing
their hardship to repay the arrears which was paid by BSNL, in six monthly
installments and requested BSNL management to recover the arrears in easy
installments so that their take home salary is not reduced much.
The matter has been examined by the competent authority at BSNL corporate
office and it has been decided that the remaining portion of arrears towards
employees‘ share of EPF contribution which has been paid by BSNL, shall be
recovered from the pay & allowances of concerned employee on monthly basis
@18% of Gross Salary per month or Rs.3000 per month whichever is lower.
Therefore the remaining amount of recovery should be made in suitable installments
in accordance with the above guidelines. However it is reiterated that the normal
monthly recovery of EPF will be in addition to the installment of arrears.
(BSNL HQNo.500-85/CA-II/BSNL/EPF/Vol II dt. 11-10-2006)
EPF contribution in respect of labourers/employees employed by Contractors for
execution of works of BSNL
Of late Regional Provident Fund Commissioners of various States have started
serving notice to the BSNL Circles/Units for non-compliance of provisions of EPF &
Misc. Provisions Act, 1952 in respect of labourers/employees engaged by the
contractors for carrying out works of BSNL. In some cases RPFC has also instructed
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BSNL, India For Internal Circulation Only 71
the Circles to submit the details of the labourers/employees engaged by contractors
for performing works of BSNL right from 1-10-2000 onwards.
In view of above, the CS & GM (legal), Corporate office has issued instructions under
No.BSNL/SECTT/25-4/2004 dt. 26-10-2004 elaborating the course action to be taken
by the Circles in respect of contractors‘ employees. It is requested to adhere to the
instructions issued by the CS & GM (Legal). In additions the Circles and its Units
may take the following action:
(a) A clause specifying the terms and conditions towards
fulfillment/compliance of the provisions of EPF & Misc. Provisions Act. 1952 &
Employees Provident Fund Scheme 1952 by the Contractors in respect of
labourers/employees engaged by them for performing the works of BSNL, may be
inserted/added in the (i) Bid Documents (ii) orders issued for engagement of
contractors for executions of works of BSNL
(b) Conditions may also be included in the (i) Bid documents, (ii) orders
issued for engagement of contractors/contract agreement, to the effect that each claim
bill of contractors must accompany the (i) list showing the details of
labourers/employees engaged (ii) duration of their engagement (iii) the amount of
wages paid to such labourers/employees for the duration in question, (iv) amount of
EPF contributions (both employer‘s & employees‘ contribution) for the duration of
engagement in question, paid to the EPF authorities, (v) copies of authenticated
documents of payments of such contribution to EPF authorities and (vi) a declaration
from the contractors regarding compliance of the conditions of EPF Act. 1952.
(c) While passing the bills of contractors, the bill passing authority must
check the payment particulars regarding EPF contribution furnished by the contractors
along with the bill as mentioned in para (b) above and keep full records of the
payments etc. each contract wise. The bill will be passed by the bill passing authority
only if the contractor complies with the terms and conditions of EPF Act. 1952.
(d) The contract-wise information kept by bill passing authority as
mentioned in para © above may be produced to the EPF authorities as and when
demanded by the latter.
(e) The circles may take the legal advice from the local experts in dealing
with the cases on EPF in respect of contractor‘s labourers/employees.
[BSNL HQ No.500-85/2004-CA-II/BSNL DT. 8-11-2004 addressed to all
CGMs with copy to :-
1. The CGM, Chhattisgarh Telecom Circle, 2nd
floor, Doorsanchar Bhawan,
G.E.Road, Raipur-492001 for information with ref. to his No.SWP/CG/03-
03/EIP/PF/04-05/12 dt. 28-9-04. He is requested to take legal opinion for defending
the present case.
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BSNL, India For Internal Circulation Only 72
2. The GM(F), O/O the CGM Rajasthan Telecom Circle, Jaipur-302008 for
information w.r.t. his no.A/cs 25-43/EPF/03-04/139 dt. 18-10-04. BSNL has
extended the benefit of EPF scheme to its directly recruited employees on
voluntary basis under Section 1(4) of EPF Act. 1952 as per approval given by the
Management committee of BSNL Board. EPF Accounts for the directly recruited
employees may be opened at SSA/PAU level. The present cases may kindly be
defended legally.
3. All IFAs of BSNL Telecom Circles.
4. The DDG (Admn)/ADG(R&P), corporate Office, Statesman House, New
Delhi]
Clarifications regarding Temporary status Mazdoors and Casual Labourers
regularized in BSNL on or after 1-10-2000 –reg
A number of references have been received from various circle/units on the issues of
whether Temporary status Mazdoors as well as casual labourers regularized on or
after 1-10-2000 are to be treated as BSNL employees, whether Presidential orders are
to be issued and whether such employees will be covered under the GPF or EPF Act?
2. The above issues have been considered in consultation with the Department of
Telecom and the Finance wing of BSNL and it has been decided that on TSMs/Casual
Labourers including those appointed on compassionate grounds who have been
regularized on or after 1-10-2000, will be treated as BSNL employees and as such,
Presidential orders for absorption in BSNL are not required to be issued.
3. In view of above, further necessary orders relating to terminal/retirement
benefits, Leave, EPF etc. shall be issued by the concerned branches of the Corporate
office, separately.
(BSNL HQ No.269-5/2005-Pers-IV dt. 10/4/2006)
Counting of past services of the Temporary Status Mazdoors upon their
absorption in BSNL-reg
In supersession to previous orders for absorption in respect of temporary status
mazdoors (TSMs), it has been decided that those Temporary Status Mazdoors who
have been regularized in pursuance of this office letter no.269-94/98-STN-II dated 29-
9-2000 were to be absorbed in BSNL w.e.f. 1-10-2000 as per their status as existing
on 30-9-2000. Accordingly Presidential Orders may be issued in respect of those
Temporary Status Mazdoors who were having TSM status prior to 30-9-2000 so as to
allow them benefit of counting of 50% of the TSM period for pensionary benefits
related service matters of these TSMs absorbed in BSNL w.e.f. 1-10-2000 may be
resolved accordingly. It is further clarified that in respect of those casual labourers
who were not having TSM status as on 30-9-2000 and who have regularized in BSNL
after 1-10-2000, their status will be of a PSU appointee and therefore, no Presidential
Order need be issued in such cases.
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BSNL, India For Internal Circulation Only 73
Prior to issue of Presidential orders, the cases of eligible TSMs may be
examined and forwarded through BSNL HQ for approval for issue of Presidential
orders. The individual Presidential Orders will be issued at circle level under the
signature of the Director (Estt.) designated for the issue of P.O.
(DOT Lr.No.27-2/2006-SNG dt. 20-10-2006)
Applicability of GPF/EPF scheme to the casual labourers
Several references have been received from BSNL circles regarding applicability of
Provident fund scheme in respect of casual labourers who have been regularized in
BSNL on or after 1-10-2000 in view of CO BSNL letter no.269-5/2005-Pers-IV dated
10-4-2006.
In this connection DOT has issued a clarification vide their OM no.27-2/2006-
SNG dated 20-10-2006 which has been circulated vide CO BSNL letter no.269-
5/2005-Pers-IV dated 31-10-2006 as per which the Temporary status Mazdoors who
were having TSM status prior to 30-9-2000 and regularized in pursuance of DOT OM
no.269-94/98-STN-II dated 29-9-2000 were to be absorbed in BSNL w.e.f. 1-10-2000
as per their status as existing on 30-9-2000 and accordingly Presidential orders may
be issued so as to allow them benefit of counting of 50% of the TSM period for
pensionary benefits. In view of this clarification these officials will be under the
purview of GPF scheme like BSNL absorbed employees.
It has also been clarified by DOT in their OM referred above that the casual
labourers who were not having TSM status as on 30-9-2000 and who have been
regularized in BSNL after 1-10-2000, their status will be of a BSNL (PSU) appointee.
Therefore, these casual labourers will be covered under EPF scheme only.
Necessary action for EPF contribution may kindly be taken by all the circles
as per the laid down procedure.
(BSNL HQ No.500-85/CA-II/BSNL/EPF/Vol III, dt. 23-3-2007)
Sub:-Introduction of EPF Scheme
Ref:-NO.BSNL/4/SR/2002 Vol III dated 4-5-2007 of ADG (SR-I), C.O. BSNL
Kindly refer to the letter cited above, in which the status of certain category of
employees has been clarified. As per the said clarification, the under mentioned
category of employees have been treated as BSNL recruited employees only.
(a) Casual labours not having Temporary status in DOT prior to 1-10-2000 who
are regularized in BSNL
(b) Employees appointed on compassionate ground where appointment order has
been issued after 30-9-2000 by BSNL.
In view of the clarification, necessary action may kindly be taken to introduce EPF
scheme 1952 in respect of employees mentioned at serial (a) and (b) above.
(BSNL HQ No.500-85/CA-II/BSNL/EPF/Vol III, dt. 10-5-2007)
Allotment of Business Number and Social Security Number by EPF Authority
As intimated by Regional PF Commissioner-I, Delhi(north), EPF authority is going to
launch ―Project Reinventing EPF India‖ which aims at
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BSNL, India For Internal Circulation Only 74
Providing seamless trouble free service to establishments;
Prompt and efficient customer service including disposal of member
claims
Under the ―Porject Reinventing EPF India‖, there will be two products viz., (a)
Allotment of Business number to the establishment (b) Allotment of Social Security
Number. Employees provident fund organization, HQ, New Delhi has also confirmed
vide their leter dated 24-8-2007 that BSNL organizations may directly contact to
Regional offices/Sub regional offices in whose jurisdiction their establishments are
covered.
Therefore it is requested kindly to direct all the unit heads under your circle
jurisdiction to contact the EPF Regional Offices/Sub Regional offices where the EPF
contributions are being remitted by the units, for getting the Business Number for the
establishment to be allotted by EPF aurhority and SSN for the employees who
contribute iin the EPF scheme. All the BSNL employees of the units, who are
contributing towards EPF, should also submit their applications in the prescribed
proforma for getting the Social Security Number, which will facilitate faster
settlement of claims and extensionof other services.
Format of applications for Business number and Social Security number and further
details are available in the Website:www.epfindia.nic.in or www.epfindia.com
(BSNL HQ No.500-85/2007/CAII/BSNL/KW, dt. 13-9-2007)
CIRCULAR NO. 151
Ref : (1) This office letter no.500-85/CA II/BSNL/EPF/Vol III dated 14.03.2007
(2) This office letter no. 500-85/2004/CA II/BSNL/KW-I dated 03.04.2008
Sub : Non issue of Annual Statement of EPF Balances.
In spite of issue of several instructions on the above mentioned subject complaints are
being received in Corporate Office regarding non receipt of annual statement of EPF
balances by the concerned employees as per provisions of EPF Scheme, 1952.
In this context Action Point sl. No. 74 of the minutes of 14th HOCC held on 22nd &
23rd May 2008 on the above subject issue may also be referred to. It has been
reported by the representative Unions/Associations of the BSNL that the direct recruit
employees of BSNL are not getting the EPF statement in time nor their account no.
allotted has been intimated to them. In the said meeting CMD has expressed his views
that ―considering the merit of the cases, it needs to be resolved by the concerned
CGMs on the priority basis as it is their money and they should know where it is
going‖. In order to build confidence among the employees for whom BSNL is paying
towards employer contribution regularly to EPF authorities, the following measures
should be taken
immediately by all the DDOs under your control :-
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BSNL, India For Internal Circulation Only 75
1. Every month details of employees‘ contribution, employee-wise as being
deducted from the salary of each employee together with employers‘ contribution
may be displayed on the notice board positively. A proforma for displaying the same
is enclosed in Annexure ‗A‘. Concerned Employees Unions/Associations may also be
given a copy of the same every month. This statement should be displayed
immediately starting from the month of July‘08 for the contribution to be remitted in
the month of August‘08..
2. At the end of the financial year annual return is required to be submitted to the
EPF authorities vide Form–3A for every individual employee together with
consolidation in Form–6A. The specimen of the above forms are attached as
Annexure ‗B‘ & ‗C‘. Every individual employee should be given a photo copy of
Form–3A as furnished to EPF authorities. The photo copy of Form–6A may be
displayed on the Notice Board, so that the officials can also pursue with EPF
authorities for early issue of annual statement of accounts. Copies of Form ‗3A‘ &
‗6A‘ as specified above may be given from financial year 2008-09 onwards and the
photo copy of same may be supplied to individual employee positively by 30th April
of each year.
3. As already intimated vide reference (2), the matter may be pursued with the
concerned EPF authorities for furnishing the annual statement of EPF balances to the
employees concerned through the employer as per para 73 of EPF scheme, 1952. You
are also requested to monitor personally that annual statements are received from the
EPF authorities in time in respect of each SSA under your control and the same have
been handed over to the employee concerned properly under receipt.
Enclo : As above.
Copy to :
(1) GM (Finance) / IFA of all BSNL Circle for ensuring the above instructions are
strictly
adhered with.
(2) CGMT, IT Project Circle, Pune, with a request to explore the possibility so that
Annexure ‗A‘ on monthly basis and Form ‗3A‘ & ‗6A‘ on annual basis can be
generated from HRMS package DDO wise as reports.
(BSNL HQNo. 500-85/CA II/BSNL/EPF/ Vol II Dated 11.08.2008)
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DOT Cell Functions:
CONTROLLER OF COMUNICATION ACCOUNTS
Bharat Sanchar Nigam Limited (BSNL) has been formed w.e.f. 1.10.2000 by
converting the erstwhile Department of Telecom. Services (DTS) and Department of
Telecom. Operations (DTO). A need was therefore felt for formation of a separate cell
in DOT to deal with the residual items of work relating to DOT and DTS.
Accordingly, a DOT Cell Unit has been formed at each Telecom Circle Accounting
unit.
These units have been subsequently, renamed as offices of CCA (Controller of
communication Accounts) from 27.06.2002 as per DOT letter NO.3-4/31/2000-SEA
dated 27.06.2002. The constitution in general of a CCA office will be as follows:
Controller of Communication Accounts - in the grade of SAG from
Accounts & Finance Service
Joint CCA - in the grade of JAG from Accounts
& Finance service.
Deputy CCA -in the grade of STS from Accounts
& finance service.
Communication Accounts Officer - in the grade Group B from
Accounts & Finance service.
Junior Communication Accounts Officer - in the grade of Group B from
Accounts & Finance services.
The office establishment comprises of Senior Accountants, Junior Accountants and
Lower Division Clerks etc.
It is necessary that closing balances as on 30.09.2000 in respect of various
transactions like loans and advances, GPF etc. are identified and balances agreed with
the books of accounts are transferred to the DOT. In addition to the above, the
recoveries made after 1.10.2000 in respect of the above transactions relating to DOT
period are transferred to CCA regularly on month to month basis so as to enable the
CCA to maintain necessary broad sheets for the same.
ITEM 1 (A)
The responsibilities of the SSAs in BSNL and the CCA unit in respect of items of
work relating to erstwhile DOT/DTS employees who are on deemed deputation to
BSNL and also for those who are absorbed in BSNL are summarized below:
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BSNL, India For Internal Circulation Only 77
S.NO ITEM OF
WORK
RESPONSIBILITY
OF BSNL FIELD UNITS
RESPONSIBILITY OF
THE CCA UNIT.
1 Settlement of
pension &
retirement
benefits
Will process the pension
cases and other retirement
cases and submit them
direct to the circle CCA
Will issue PPOs.
Authorize DCRG,
Commuted value of
pension, family pension,
insurance payment, GPF
final payment.
2 Pension and
leave salary
contribution
Assess correctly and remit
regularly the amount of
contribution to the CCA
Will undertake collection
and employee wise
scrutiny.
3 General
Provident Fund
accounting
Details of amount collected
and amounts paid will be
intimated to the CCA unit.
Will maintain employee
wise GPF broad sheet.
4 Recovery and
accounting of
HBA and other
long term
advances
Recovery particulars in
respect of such loans &
advances already taken by
the employees prior to
corporatisation will be
intimated by the BSNL
Will maintain the official
wise broad sheets and
watch for complete
recovery.
5 Settlement of
outstanding
balances under
remittance and
suspense heads
before transfer of
firm figures to
the balance sheet
of the
corporation
Will co-ordinate with CCA
unit for early
reconciliation.
Settlement will be done
by the CCA in
collaboration with the
BSNL
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6 Settlement of
USO subsidy
claims
To submit the claim for
subsidy every quarter
To settle the claim after
exercising necessary
checks
Important
All claims of the govt. against the BSNL and those of the BSNL will be settled in
Cash. Further , there should be no netting of BSNL‘s claims against the GPF
contribution or pension contribution or leave salary contribution etc. A soft copy
(floppy) and hard Copy (print out) of the schedules is to be given.
Item 1 (B)
The other functions of CCA office are as below:
1. Collection of license fees in the form of revenue sharing from various
organizations on behalf of Govt.
2. Collection of service tax from the telecom service providers.(This has since
been dispensed with and SSAs are now to remit the service tax amount directly to
service tax authorities)
3. Will handle the budget, finance and accounting functions of the Wireless
Monitoring Organization.
4. Handling realization and accounting of revenue in the form of license fee and
royalty for use of spectrum.
5. Handle the budgeting, accounting and DDO functions of CCA unit.
It may be seen from the list given at item 1(A) above, that it shall be the responsibility
of the SSA units in BSNL to ensure that the monthly recoveries of GPF,CGEIS,
Leave salary & Pension Contribution, Loans & advances etc. are made regularly and
are transferred duly agreed in time every month to the CCA office. This work is
required to be completed before 15th
of the month following the month of account.
The amount due should be remitted in the form of DD. It is important to note that
the correctness of maintenance of accounts would depend upon the correctness
and promptness with which the returns are submitted by the BSNL.
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Levy of penalty for delayed payments to CCA:
Of late undue delay has been observed in transferring the recoveries to the CCA unit.
It has been therefore been decided by the Govt. that the corporation will be liable to
pay penal interest on delayed pension contribution.
The following are the details of rates of penal interest decided for levy provisionally
by the DOT pending final approval by Ministry of Finance:
(i) Delay in remittance of LSC/PC: As per SR 307(1)
(ii) Delay in remittance of GPF/L&A:
2.5% above the applicable rate of interest. Interest will be charged from 1st of the
month following the recovery, if payment is not made by the specified date.
(iii) In case of CGEIS/CGEIS
2.5% of the ruling rate of interest on CGEIS per annum (Compounded quarterly).
Interest will be charged from 1st of the month following the recovery, if payment is
not made by the specified date.
Claims if any, by BSNL on the CCAs/DOT may be preferred separately by 7th
of
following month and CCA will settle the same within 7 days from the date of receipt
of the claim.. No netting is allowed to be made from the recoveries or any other
amount due and payable to CCAs/DOT.
Actions suggested by the CCA for timely payment of pension to BSNL staff :
So as to obviate the possible delays in settlement and to ensure that the pension and
other retirement benefits are settled in time, the following schedule of action has been
prescribed.
(A) Supply of six monthly list of the officials due to retire with in the next 24 to 30
months:
This should be supplied to the CCA office not later than 31 st of January or 31 st of
July as the case may be. In the case of officials retiring for reasons other than
superannuation, the office of CCA is to be informed as soon as the employee seeks
retirement.
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BSNL, India For Internal Circulation Only 80
Preparation of Pension Papers:
Immediate action should be taken to verify the qualifying service of all
employees retiring within 2 years.
Ensure 24 months before retirements that the Service Book contains the
certificates of verification for the entire period of service. Wanting certificates if any
should be called for and recorded in the SB.
If service verification relating to a different unit is not forth coming, the
official concerned may be asked to file a written statement certifying the service
rendered producing supporting evidence.
All Govt. dues to be ascertained in advance and kept ready.
In case of death/voluntary retirement, the head of the office should start
verifying qualifying service, dues, pending disciplinary cases if any, and try to obtain
the pension papers to avoid delay in settlement of the case.
The TA branch of the SSA should complete calculation of average
emoluments 10 months before retirement of retiring officials.
Pension papers in triplicate to be forwarded to the individual with in 8 months
of the retirement.
The pension case should be forwarded to the office of CCA by the TA wing of
the SSA not later than 6 months before the date of retirement, duly ensuring that -
(i) the Joint photo is duly attested and pasted in the application.
(ii) All columns in the data sheet are completed
(iii) The calculations are correct.
(iv) The bank account no. is clearly noted in the application if the govt. servant
wishes to draw pension through the bank.
(v) The place where the retiring govt.. Servant wishes to stay after retirement and
whether the place covered under the CGHS or otherwise.
Documents that should accompany the pension claims sent to the office of CCA:
1. Data sheet Two copies.
2. Pension application Two Copies
3. Photograph/Joint photograph Two copies
4. Specimen signature slip-claimant Two copies
5. Specimen signature slip-spouse Two copies
6. Details of family members One Copy
7. Nomination for DCRG/GPF/CGEIS One copy
8. Statement showing non-qualifying service One copy
9. Report of vfn. Of 25 yrs. Service One copy
10. Commutation application One copy
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11. Vig/disciplinary clearance One copy
12. Identification marks of the individual One copy
13. Identification marks of the spouse. One copy
14. Detailed calculation sheet One copy
15. No dues certificate One copy
16. Succession certificate. One copy
17. (in case of no nomination)
18. LPC (Provisional/Final) One copy
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Questions on Terminal Benefits:
1. What are the conditions to sanction Encashment of Leave along with LTC?
2. What is formula to calculate Pension, Retirement Gratuity, Family Pension
3. Write about BSNL Employees ‗Gratuity Trust Rules‘
4. How do you check the applications for withdrawals from GPF?
5. What are the benefits available in EPF Scheme? Write about contributions by
employee, employer and administrative charges payable by BSNL.
6. What is the new name of DOT CELL? When it is formed?
7. When BSNL formed?
8. Is it possible netting of BSNL‘s claims against the GPF Contribution?
9. What are other functions of CCA office?
10. Levy of penalty for delayed payments to CCA – Please elaborate?
11. Actions suggested by the CCA for timely payment of pension to BSNL staff?
12. Briefly explain the procedure of pension papers?
13. What are the documents should accompany the pension claims sent to the
office of CCA?