Government of India

Department of  Pension and Pensioners’ Welfare



3rd Floor, Lok Nayak Bhavan,

Khan Market, New Delhi-3


13th September 1996




Subject:            Counting of past service  rendered in Public Sector Undertakings   (PSUs) for the purpose of  admissibility  of  Pension under the Central Government.



            The undersigned is directed to refer to the Ministry of Finance (Department of Expenditure) OM No.3(28)EV/A/60 dated 28th March, 1960 and this Department’s OM No.28/10/84-Pension Unit dated the 29th August, 1984 and to say that  periodic references are made by the administrative Ministries to this Department seeking  clarifications in regard to the counting of  service rendered by the Government employees under Public Sector Undertakings (PSUs) or the service  rendered  by employees of the PSUs under the Government for the purpose of pensionary benefit. 


2.         The orders issued by the Ministry of Finance and this Department referred to above clearly lay down the parameters within which the benefit of service rendered in Non-Government Organisations has to be allowed.  The said benefit is admissible only in the event of mobility between Central Autonomous Bodies and the Central Government. Subsequently, the State autonomous bodies were also brought within the purview of these arrangements.


3.         Attention in this regard is invited to para 4 of this Department’s OM dated 29th August, 1984 which defines “Central autonomous body” as a body which is financed wholly or substantially from cess or Central Government grants. “Substantially” means that more than 50% of the expenditure of the autonomous body is met through cess or  Central Government grants.  Autonomous body includes Central statutory body or a Central University but does not include  a public undertaking.


4.         In the light of position stated above, it is once again clarified that the orders contained in Ministry of  Finance (Department of  Expenditure) OM dated 28th March, 1960 and this Department’s OM dated 29th August, 1984 do not  provide for counting of  service   rendered  by a Central Government employee in public sector undertaking or service rendered  by an employee in public sector undertaking under the Government for the purpose of  pension.


5.         Attention in this connection is also invited to the instruction issued vide OM No.28/24/94-P&PW(B) dated 30th May, 1995 which clarify that the employees who had rendered  service  in the Nationalised Banks and other Government financial  institutions are not entitled to count that service for pensionary  benefits admissible  under the Central Government Rules as these organisations are treated  at  par with public sector undertakings.    


6.         Ministry of Defence etc. are requested to bring the position in this regard to the notice of all authorities under their administrative control so that the representations made by the employees for counting of service rendered by them in the above mentioned organisations and writ petitions filed by them are dealt with appropriately in accordance with the  established policy of the Government.    



                                                                        (H.L. ATTRI)

Dy. Secretary to the Govt. of  India (PP)



            All Ministries/Departments of  the Government of  India

            (As per mailing list.)