Government of India
Department of Pension & Pensioners’ Welfare
New Delhi, the 30th May 1995.
Subject: Grant of Pro-rata retirement benefits to the permanent Central Government employees who are absorbed in the Nationalised Banks, General Insurance Corporation and its subsidiaries – Question regarding.
The undersigned is directed to refer to this Department’s OM Nos.4/8/84-P&PW dated 14th May, 1986 & No.4/23/87-P&PW dated 10th November, 1987 on the subject mentioned above and to say that inquiries have been made to the effect whether the benefit of counting of service for the purpose of pensionary benefits, as admissible in terms of this Department’s OM No.28/10/84-Pension Unit dated the 29th August, 1984, is to be allowed in the case of mobility of personnel from Government to Nationalised Banks and financial institutions like Life Insurance Corporation of India & General Insurance Corporation etc. and vice-versa.
2. The matter has been considered in the light of instructions issued by this Department in regard to mobility of personnel between Government and non-Government Organisations including Public Sector Undertakings and Autonomous Bodies. The orders contained in this Department’s OM No.4/8/84-P&PW dated 14th May, 1986 and OM No.4/23/87-P&PW dated the 10th November, 1987, stated that the Nationalised Banks including the Reserve Bank of India and the State Bank of India and its subsidiaries , the General Insurance Corporation of India and its four subsidiaries are to be treated as Autonomous Bodies for the purpose of grant of pro-rata retirement benefits to the permanent Central Government employees who are absorbed by these Bodies on the terms and conditions envisaged in Ministry of Finance, Department of Expenditure OM No.26/(18)/EV/75 dated 8th April, 1976, as amended from time to time. It is clarified that such employees are not entitled to count the service rendered in Government for the purpose of pension on absorption in the Nationalised Banks including the Reserve Bank of India and the State Bank of India and its subsidiaries and other financial Institutions including Life Insurance Corporation of India, General Insurance Corporation and its subsidiaries as per our OM No.28/10/84-Pension Unit dated the 29th August, 1984 referred to above.
3. Central Government employees who have rendered service in the Nationalised Banks as well as other financial Institutions including Life Insurance Corporation of India/General Insurance Corporation. Prior to their appointment in the Central Government are also not entitled to count such service for the pensionary benefit ‘under’ the Central Government They are, however, free to seek terminal benefits as admissible under the relevant rules from the concerned Nationalised Banks and such other institutions in which they had rendered service before being appointed in the Central Government.
4. Ministry of Defence, etc. are requested to clarify this position to all concerned authorities under their administrative control. The past cases decided otherwise then the procedure clarified above may be reviewed in case the concerned employees are still in service.
5. In so far as persons serving in the Indian Audit and Accounts Department are concerned, these orders are issued after consultation with the Comptroller and Auditor General of India.
DY. SECRETARY TO THE GOVT. OF INDIA
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