Government of India
Department of Pension and Pensioners’ Welfare
New Delhi, 30th May 1995
Subject: Mobility of Personnel between Central Government Departments and Autonomous Bodies - Counting of service for pension.
The undersigned is directed to refer to this Department’s OM. No.28/10/84-Pension Unit dated 29-8-84 and No.28/10/84-P&PW (Vol.II) dated 7-2-1986 on the subject mentioned above and to say that enquiries have been made to the effect whether it would be necessary for the parent Government Department or the autonomous body to discharge pro-rata pensionary benefits in cases in which the employee has rendered less than 5 years of qualifying service and is not entitled to any terminal benefits on the date of his permanent absorption in the autonomous body/Government.
2. The matter has been considered in consultation with the Ministry of Finance (Department of Expenditure). It is clarified that discharge of pro-rata pensionary liability by the parent organisation is necessary in all cases of mobility of personnel from Government to Autonomous Bodies and vice-versa, if the employee opts for the pensionary benefits based on combined service in accordance with the above mentioned Office Memorandum. The settlement of payments of pro-rata pension etc. is required to be made between a govt. department and an autonomous body and not between government and individuals. The question of employee’s actual entitlement at the time of such mobility is not relevant. The amount should appropriately be calculated pro-rata based on length of service rendered and would comprise of the terminal gratuity or service gratuity or pension, as the case may be, and retirement gratuity for the employees on pensionable establishments.
3. In the case of an employee of autonomous body, with CPF benefits, the autonomous body will have to pay to the Government the employer’s contribution together with interest for the period of service rendered by him in the said body irrespective of fact whether or not the employee is actually entitled to receive benefits at the time of his absorption.
4. Ministry of Defence etc. are requested to clarify this position to all concerned authorities under their administrative control.
DY. SECRETARY TO THE GOVERNMENT OF INDIA (FP)
All Ministries/Departments of the Government of India
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