Government of India/Bharat Sarkar
Ministry of Personnel & Training, Admn. Reforms
And Public Grievances & Pensions
Department of Pension & Pensioners’ Welfare
New Delhi, the 12th September 1985
Subject: Mobility of personnel between Central Government Departments and Autonomous Bodies – Counting of service for pension-
The undersigned is directed to say that in accordance with para-5(1)(b) of this Department’s Office Memorandum of even number dated 29th August, 1984 an employee of the Central autonomous body or the Central Government who has already received pro-rata retirement benefits or other terminal benefits for his past service will have the option to have the past service counted as qualifying service for pension under the new organisation. In such a case the pro-rata retirement benefits or other terminal benefits, if already received by him will have to be deposited with interest thereon from the date of receipt of these benefits till the date of deposit with the autonomous body or the Central Government as the case may be.
2. The rate of interest to be paid on the amount to be refunded has been engaging the attention of the Government of India. It has been decided in consultation with the Ministry of Finance (Department of Expenditure) that the rate of interest in such cases would be simple interest of 6% per annum.
3. Further, the entire recovery may be made in the monthly installments not exceeding thirty-six in number, the first installment beginning from the month following the month in which person concerned exercised option, provided that the entire recovery in installments does not go beyond the actual date of retirement. The right to count the previous service as qualifying service shall not revive until the whole amount has been refunded.
4. The entire amount including interest may be credited to the normal head to which contributions are credited.
5. Further, in accordance with para-3(a) of the Office Memorandum No.28/10/84-Pension Unit dated 29th August, 1984 the Government/autonomous body will discharge its pension liability by paying in lumpsum as one-time payment, the pro-rata pension/service gratuity/terminal gratuity and the DCRG for the service upto the date of absorption in the autonomous body/Government, as the case may be. The lumpsum amount of the pro-rata pension will be determined with reference to the commutation table laid down in CCS (Commutation of Pension) Rules, 1981, as amended from time to time. Various Ministries/Departments of the Government of India may accept pension liability in all these cases where Central Government employees move to Central autonomous bodies with proper permission and discharge the same in the prescribed manner,. For this purpose ‘proper permission’ means that Government servant applied for the post in autonomous body through ‘proper channel’ and he resigns with due intimation that he is doing so to take up assignment in autonomous body or the Government servant is relieved of his duties by the Government Departments, Office to take up assignment in an autonomous body. Pension liability may also be accepted in past service provided the Government servant took up the assignment in autonomous body with proper permission. The Ministry of Defence etc. may please issue specific directions to their Financial Advisers to advise the autonomous /statutory bodies under their administrative control to make the above provisions in their rules and regulations. In cases where any practice other than mentioned above is presently being followed, the same may be revised in accordance with these decisions and that they may also provide for acceptance of pension liability for the past service.
6. In so far as persons serving in the Indian Audit and Accounts Department are concerned these orders issue after consultation with the Comptroller and Auditor General of India.
Deputy Secretary to the Government of India
All Ministries/Departments of the Government of India etc.