No.

28/30/2004-P&PW (B)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners Welfare
3rd Floor LokNayakBhavan,
New Delhi-110 003, the 26th July 2005.

OFFICE MEMORANDUM

Subject:- Counting of past service on submission of technical resignation on or after 1-1-2004 by

employees governed by Central Civil Services (Pension) Rules, 1972.
***********************************

The various Ministries/Departments/Autonomous bodies have been seeking clarifications from this
Department whether the employees appointed on or before 31-12-2003, who were governed by old
pension scheme under the Central Civil Services (Pension) Rules, 1972, will be eligible for counting
of their past service under Rule 26(2) of the said rules or under the provisions of the DP&ARs
O.M.No.28/10/84-PU dated 29-8-1984, as amended from time to time, in the situation where such
employees submit technical resignation, on or after 1-1-2004 to take up new appointment in the
new Ministry/Department/Central Autonomous Body.

2. The matter has been considered in consultation with the Ministry of Finance and it is clarified
as follow:

(i) All the employees who entered into Central Government service or in the service of an
Autonomous Body set up by Central Government (satisfying the conditions laid down in para-4 of
O.M. dated 29-8-1984), on or before 31-12-2003 and who were governed by old pension scheme
under the Central Civil Services (Pension) Rules, 1972, will continue to be governed by the same
pension scheme and same rules, for the purpose of counting of their past service under the said
rules or under the provisions of the DP&ARs O.M.No.28/10/84-PU dated 29-8-1984, as amended
from time to time, if such employees submit technical resignation on or after 1-1-2004, to take up
new appointment in another Ministry or Department of the Government of India or an Autonomous
Body set up by the Central Government, in which the pension scheme under Central Civil Services
(Pension) Rules, 1972 already exists for the employees who entered into service on or before 31-
12-2003.

(ii) The employees who entered into service on or before 31-12-2003 and who were governed by
CPF scheme or any pension scheme of Central or State Government, other than the pension scheme
under Central Civil Services (Pension) Rules, 1972, on submission of technical resignation to take up
new appointment on or after 1-1-2004, cannot be allowed to join the old pension scheme under
Central Civil Services (Pension) Rules, 1972 because entry to the said scheme ceased w.e.f. 31-12-
2003 and no new entry can be allowed in the pension scheme under above Rules. However, such
employees can seek pensionary/terminal benefits, from the previous organisation/Department, if
admissible under the rules of that organisation/Department, for the period of service rendered
under that organisation/Department.

(iii) All the Central Government employees who entered Central Government service or the
service of an Autonomous Body set up by Central Government, on or before 31-12-2003 and who
were governed by old pension scheme under the Central Civil Services (Pension) Rules, 1972 and
who submit technical resignation on or after 1-1-2004, to take up new appointment under State
Government, will be eligible for grant of pro-rata pensionary benefits for the period of Central
Government or Central Autonomous Body service, on the lines as provided in the Rule 37 of Central
Civil Services (Pension) Rules, 1972 and related orders.

3. Para 3(a)(ii) & 3(b) (ii) of the DP&ARs O.M.No.28/10/84-PU dated 29-8-1984 may be treated
as deleted w.e.f. 1-1-2004. Further, the provisions of the DP&ARs O.M.No.28/10/84-PU dated 29-8-
1984 or any other related order shall, in so far as it provides for any of the matters contained in this
Office Memorandum, cease to operate.
 4. This issues with the concurrence of the Ministry of Finance (Department of Expenditure) vide
I.D.No.177/E.V/05 dated 6-6-2005, Ministry of Finance(Department of Economic Affairs) vide
U.O.No.F.5(80)/2004-ECB&PR dated 28-6-2005 and with the concurrence of Office of the
Comptroller & Auditor General of India vide their U.O.No.111-Audit(Rules)/44-2001-Vol.II dated
13-7-2005.

5. Hindi version is being issued simultaneously.

sd/-
(Geeta Ram)
Director (PW)

To

All Ministries/Departments/ Office of C&AG of India

(It is requested that this O.M. may also be circulated to all the attached/subordinate offices
and Autonomous Bodies under their administrative control)
 No.38/34/2001-P&PW(F)
GOVERNMENT OF INDIA
MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
DEPARTMENT OF PENSION AND PENSIONERS WELFARE
NEW DELHI
OFFICE MEMORANDUM

Dated: 29.04.2002
Subject: Rate of interest payable on delayed payment of DCRG and rate of interest chargeable on
refund of pensionary benefits already drawn, in connection with counting of past service under CCS
(Pension) Rules, 1972 and Department of Pension & Pensioners Welfare OM No. 28/10/84-PU
dated 29.8.1984 as amended from time to time reg.
******************************

In supersession of this Departments OM No. 7/1/93-P&PW(F) dated 25.8.1994 and 31.10.1995,

on the above subject, the undersigned is directed to say that the President is now pleased to decide
that where the payment of DCRG has been delayed beyond three months from the date of
retirement, an interest at the rate applicable to GPF deposits determined from time to time by the
Government of India will be paid to retired/dependants of deceased Government servants.

2. The administrative Ministries/Departments are requested to comply with the instructions

contained in para 2(d) and (e) of this Departments OM No. 38/64/98-P&PW(F) dated 5.10.1999 in
the matter of payment of interest on delayed payment of DCRG, fixing of responsibility and recover
the amount from the concerned Dealing Official, Supervisor and Head of Office in proportion of
their salary.

3. The President is also pleased to decide that wherever the employees are required to refund
the pensionary benefits received by them for the service already rendered by them under the
Central or State Government or Autonomous Bodies or in Armed Forces (Military Service), in order
to avail of the benefit of counting of past services for pension purposes in terms of the provisions of
Rules 17 to 20 of CCS (Pension) Rules, 1972 and Department of P&PWs OM No. 28/10/84-PU
dated the 29th August, 1984 as amended from time to time, the rate of interest will be at the rate
applicable to GPF deposits determined from time to time by the Government of India, for the period
from the date of receipt of pensionary benefits to date of their refund to the
Government/Autonomous Body.

4. In the case of Military pensioners re-employed in civil service, the interest will be recovered
for the period from the date of joining civil service till the date of refund of pensionary benefits to
Government/Autonomous Body.

5. However, interest calculation in case of refund of pensionary benefits would be as per the
method indicated in Annexure-A.

6. In cases where after the issue of the orders by the competent authority on the basis of option
exercised by an employee for counting of past service for pensionary purposes, if an individual does
not deposit the pensionary benefits already received by him within one months of the receipt of
communication from the Government/ Autonomous Body, a penal interest @ 2 per cent per annum
will be charged in addition to normal rate of interest mentioned above.

7. All the Ministries/Departments are requested to advise the attached/subordinate

offices/autonomous/statutory bodies under their Administrative control and to settle cases in
accordance with the provision of this Office Memorandum.

8. In so far as persons serving in the Indian Audit and Accounts Department are concerned,
these orders issue after consultation with the Comptroller & Auditor General of India.

( SujitDatta )
Director (PW)
 ANNEXURE 'A'

INTEREST CALCULATION IN THE CASE OF REFUND OF PENSIONARY BENEFITS

(ILLUSTRATIVE)

A - For a full year

Balance on 31st March, 1999 - Rs. 38,6000. Interest @ 12% p.a.**

Month Subscription Refund Advance/ Balance at the

end of the
Withdrawal month

Apr-99 1,000 - - 39,600

May-99 1,000 - - 40,600
Jun-99 1,000 - - 41,600
Jul-99 1,000 - - 42,600
Aug-99 1,000 - - 43,600
Sep-99 1,000 - - 44,600
Oct-99 1,000 - - 45,600
Nov-99 1,000 - - 46,600
Dec-99 1,000 - 6000 41,600
Jan-00 1,000 500 - 43,100
Feb-00 1,000 500 - 44,600
Mar-00 1,000 500 - 46,100
_________
Total Rs. 520,200
_________

Interest = 5,20,200 x 1/12/100 = 5,202.

** GPF interest has been revised as under:

Final Year Rate

2000-2001 11.0%

2001-2002 9.5%

2002-2003 9.0%
 No.28/10/84-Pension Unit
Government of India/ Bharat Sarkar
Ministry of Home Affairs/Grih Mantralaya
Department of Personnel and Administrative Reforms
(Karmikaur Prashasnik Sudhar Vibhag)

New Delhi, the 29th August 1984

OFFICE MEMORANDUM

Subject: Mobility of personnel between Central Government Departments and

Autonomous Bodies Counting of service for pension

******************************************************

As per existing orders, service rendered outside Central Government does not count for
pension in Central Government except in the case of scientific employees of autonomous bodies
financed or controlled by the Government, who on permanent absorption under the Central
Government are allowed to count their previous service for pension subject to certain conditions. In
respect of personnel other than scientific employees, who are permanent in Central Government, in
the event of their subsequent permanent absorption in public sector undertakings or any
autonomous body, proportionate retirement benefits for the service rendered in Government till
the date of permanent absorption are allowed as per rules in force at the time of absorption. No
such benefit is allowed to temporary employees going over to autonomous body or undertaking.

2. A number of Central autonomous/statutory bodies have also introduced pension scheme for
their employees on the lines of the pension scheme available to the Central Government employees.
It has, therefore, been urged by such autonomous/statutory bodies that the service rendered by
their employees under the Central Government or other autonomous bodies before joining the
autonomous body may be allowed to be counted in combination with service in the autonomous
body, for the purpose of pension, subject to certain conditions. Similar provisions for employees of
autonomous body going over to Central Government have also been urged. In other words, the
suggestion is that the benefit of pension based on combined service should be introduced.

3. This matter has been considered carefully and the President has now been pleased to decide
that the case of Central Government employees going over to a Central autonomous body or vice-
versa and employees of the Central autonomous body moving to another Central autonomous body
may be regulated as per the following provisions:-

(a) In case of Autonomous Bodies where Pension Scheme is in operation.

(i) Where a Central Government employee borne on pensionable establishment is allowed to be

absorbed in an autonomous body, the services rendered by him under the Government shall be
allowed to be counted towards pension under the autonomous body irrespective of whether the
employee was temporary or permanent in Government. The pensionary benefits will, however,
accrue only if the temporary service is followed by confirmation. If he retires as a temporary
employee in the autonomous body, he will get terminal benefits as are normally available to
temporary employees under the Government. The same procedure will apply in the case of
employee of the autonomous bodies who are permanently absorbed under the Central Government.

The Government/autonomous body will discharge its pension liability by paying in lumpsum as a
one-time payment, the pro-rata pension/service gratuity/terminal gratuity and DCRG for the service
upto the date of absorption in the autonomous body/Government, as the case may be. Lumpsum
amount of the pro-rata pension will be determined with reference to commutation table laid down
in CCS (Commutation of Pension) Rules, 1981, as amended from time to time.
 (ii) A Central Government employee with CPF benefits on permanent absorption in an autonomous
body will have the option either to receive CPF benefits which have accrued to him from the
Government and start his service afresh in that body or choose to count service rendered in
Government as qualifying service for pension in the autonomous body by foregoing Governments
share of CPF contributions with interest, which will be paid to the concerned autonomous body by
the concerned Government Department. The option shall be exercised within one year from the
date of absorption. If no option is exercised within stipulate period, employee shall be deemed to
have opted to receive CPF benefits. The option once exercised shall be final.

(b) Autonomous body where the Pension Scheme is not in operation.

(i) A permanent Central Government employee borne on pensionable establishment, on

absorption under such autonomous body will be eligible for pro-rata retirement benefits in
accordance with the provisions of the Ministry of Finance O.M. No.26(18)EV(B)/75 dated the 8th
April, 1976, as amended from time to time. In case of quasi-permanent or temporary employees,
the terminal gratuity as may be admissible under the rules would be actually payable to the
individual on the date when pro-rata retirement benefits to permanent employees become payable.
However, in the case of absorption of a Government employee with CPF benefits, in such an
autonomous organisation, the amount of his subscriptions and the Governments contribution, if
any, together with interest thereon shall be transferred to his new Provident Fund account with the
consent of that body.

(ii) An employee of an autonomous body on permanent absorption under the Central Government
will have the option either to receive CPF benefits which have accrued to him from the autonomous
body and start his service afresh in Government or choose to count service rendered in that body as
qualifying service for pension in Government by foregoing employers share of Contributory
Provident Fund contributions with interest thereon, which will be paid to the concerned
Government Department by the autonomous body. The option shall be exercised within one year
from the date of absorption. If no option is exercised within stipulated period, employee shall be
deemed to have opted to receive CPF benefits. The option once exercised shall be final.

(c) Absorption of employees of one Central Autonomous body to another Central Autonomous
body. The above procedure will be followed mutates mutandis in respect of employees going from
one autonomous body to another.

4. Central autonomous body means body which is financed wholly or substantially from cess
or Central Government grants. Substantially means that more than 50% of the expenditure of an
autonomous body is met through cess or Central Government grants. Autonomous body includes a
Central statutory body or a Central University but does not include a public undertaking.

Only such service which qualifies for pension under the relevant rules of
Government/Autonomous body shall be taken into account for this purpose.

5(1). The employees of a Central autonomous body or Central Government, as the case may be,
who have already been sanctioned or have received pro-rata retirement benefits or other terminal
benefits for their past service will have the option either:-

(a) to retain such benefits and in that event their past service will not qualify for pension under
the autonomous body or the Central Government, as the case may be : or

(b) to have the past service counted as qualifying service for pension under the new organisation
in which case the pro-rata retirement or other terminal benefits, if already received by them, will
have to be deposited alongwith interest thereon from the date of receipt of those benefits till the
date of deposit with the autonomous body or the Central Government, as the case may be. The right
to count previous service as qualifying service shall not revive until the whole amount has been
refunded. In other cases, where pro-rata retirement benefits have already been sanctioned but have
not yet become payable, the concerned authorities shall cancel the sanction as soon as the individual
concerned opts for counting of his previous service for pension and inform the individual in writing
about accepting his option and cancellation of the sanction. The option shall be exercised within a
period of one year from the date of issue of those orders. If no option is exercised by such employees
within the prescribed time limit, they will be deemed to have opted for retention of the benefit
already received by them. The option once exercised shall be final.

5(2). Where no terminal benefits for the previous service have been received, the previous
service in such cases will be counted as qualifying service for pension only if the previous employer
accepts pension liability for the service in accordance with the principles laid down in this Office
Memorandum. In no case pension contribution/liability shall be accepted from the employee
concerned.

6 These orders will be applicable only where the transfer of the employee from one
organisation to another was/is with the consent of the organisation under which he was serving
earlier, including cases where the individual had secured employment directly on his own volition
provided he had applied through proper channel/with proper permission of the administrative
authority concerned.

7. These orders will take effect from the date of issue and the revised policy as enunciated above
will be applicable to those employees who retire from Government/autonomous body service on or
after the date of issue of these orders.

The provisions contained in the Ministry of Finance Office Memorandum No.26(18)EV(B)/75

dated the 8th April, 1976 and Office Memorandum No.25(1)EV/83, dated the 8th September 1983
or any other orders shall, in so far as it provides for any of the matters contained in this Office
Memorandum, cease to operate.

8. The Ministry of Education and Culture etc. are requested to advise the autonomous/statutory
bodies under their administrative control, with specific directions to the Financial Advisers
concerned, to ensure to make necessary provisions in their Rules and Regulations/ Articles of
Association in accordance with the provisions contained in this Office Memorandum. In cases where
any practice otherwise than enumerated above is presently being followed the same may be revised
in accordance with the provisions of this Office Memorandum so that uniformity is maintained in
such matters in all the organisations.

9. 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.

Sd/-
S.R. AHIR
Deputy Secretary to the Government of India
 No. 28(10)/84-P&PW.Vol.II
Government of India/ Bharat Sarkar
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners Welfare-
6th Floor, NirvachanSadan,
Ashoka Road, New Delhi-110001

Dated, the 7th February 1986

ToThe Chief Secretaries of all the State Governments

Subject: Counting of service for purpose of Pension of employees of Central Government and
Central Autonomous Bodies seeking absorption in Autonomous Bodies under the state Governments
and vice-versa.
******************************************************

Sir,

I am directed to say that in August, 1984, Central Government had issued orders that where a
Central Government employee borne on pensionable establishment is allowed to be absorbed in a
Central Autonomous Body having a pension scheme of its own, the service rendered by him under
the Government shall be allowed to be counted towards pension under the Autonomous Body
irrespective of whether the employees was temporary or permanent in Government, subject to
certain conditions. The same procedure will apply in the case of employees of the Autonomous
Bodies who are permanently absorbed under the Central Government. Certain employees of the
State Governments and State Autonomous Bodies, who joined the Central Autonomous
Bodies/Statutory Bodies, have also represented that their service under the State Government/State
Autonomous Body may be allowed to be counted towards pension under Central Autonomous Body
where they are presently working. Similarly, certain Central Government servants and employees of
the Central Autonomous Bodies/Statutory Bodies might have joined Autonomous Bodies/Statutory
Bodies (excluding public undertakings) of the State Governments and may be desirous of getting the
benefit of counting of service under Central Government/Autonomous Bodies towards pension in
the organisations where they are presently working.

2. In the circumstances explained above, it was felt that reciprocal arrangements may be
entered into with the various State Governments to the effect that where employees of the State
Governments/State Autonomous Bodies/State Statutory Bodies, have been absorbed in the Central
Autonomous Bodies, they may be allowed the same benefits as have been extended to the Central
Government servants and vice-versa.

3. The question of extension of various benefits like counting of service etc. in the case of (i)
employees of Central Government absorbed in State Autonomous Bodies and (ii) employees of
Central Autonomous Bodies absorbed in State Governments and State Autonomous Bodies, and vice-
versa has been considered in consultation with the State Governments. After careful consideration,
the President has now been pleased to decide that these cases may be decided in accordance with
the principles as laid down in the Department of Personnel and Administrative Reforms OM
No.28/10/84-Pension Unit dated 29-8-84 (copy enclosed). The cases of Central Government
servants appointed in State Governments and vice-versa will continue to be decided as hitherto.

4. Similar orders regarding counting of service of the Central Government employees in the
event of their absorption in the State Autonomous Bodies and employees of the Central Autonomous
Bodies in the State Governments, and State Autonomous Bodies as well as orders regarding
acceptance of pension liability etc. in respect of State Government and State Autonomous Bodies,
employees absorbed in Central Autonomous Bodies and employees of State Autonomous Bodies
absorbed in Central Government will be issued by the respective State Governments.
5. These orders shall apply to employees of the State Governments and State Autonomous
Bodies moving to Central Government/Central Autonomous Bodies in respect of the State
Governments listed below: -

(1) Karnataka (8) Uttar Pradesh

(2) Madhya Pradesh (9) Bihar

(3) Punjab (10) Gujarat

(4) Rajasthan (11) Assam

(5) Sikkim (12) Meghalaya

(6) Tripura (13) Himachal Pradesh

(7) West Bengal

These orders shall be extended to the employees of other State Governments as and when
they agree to similar reciprocal arrangements.

6. These orders will apply to the employees of the Central Government moving in State
Autonomous Bodies and employees of Central Autonomous Bodies to the State Governments and
their Autonomous Bodies mentioned in para-5 above and vice-versa who are in service on the date
of issue of these orders, irrespective of the date of their absorption.

7. So far as persons serving in the Indian Audit and Accounts Department are concerned, these
issue after consultation with the Comptroller and Auditor General of India.

Yours faithfully,
Sd/-
(HAZARA SINGH)
Deputy Secretary to the Government of India

Note: The applicability of above orders has been extended to the following States from the date
indicated against each:

(14) Andhra Pd. 17-06-1986 (20) Arunachal Pd. 27-05-1988

(15) Kerala 30-10-1986 (21) Nagaland 07-09-1988

(16) J&K 20-03-1987 (22) Manipuri 20-09-1988

(17) Mizoram 07-03-1988 (23) Haryana 20-07-1989

(18) Tamilnadu 18-04-1988 (24) Orissa 14-02-1990

(19) Goa 27-05-1988 (25) Maharashtra 13-07-1992

 No.28/10/99-P&PW(B)
Government of India
Ministry of Personnel,
Public Grievances & Pensions
Department of Pension & Pensioners Welfare

Date: 19th April, 1999

OFFICE MEMORANDUM

Counting of past service on mobility of employees from Central /State Government Departments to
Central/State Autonomous Bodies -acceptance of belated options for counting of past service.

The concept of counting of past service on mobility of employees from Central Government
Departments to Central Autonomous Bodies and vice-versa came into existence vide order issued
under DP&AR O.M. No.28/10/84-PU dated 29.8.84. The above orders were made applicable to the
employees of State Autonomous Bodies moving over to Central Government Department/Central
Autonomous bodies and employees of State Government Departments to Central Autonomous
bodies and vice-versa vide Department of Pension & Pensioners Welfare O.M. No.28/10/84-
P&PW/Vol.II dated the 7th February, 1986 and subsequent orders issued on the dates various State
Governments agreed to the reciprocal arrangement. Under the provisions of above orders,
employees who were absorbed prior to 31.3.87 were required to exercise option for counting of past
service within one year of absorption or within one year of the issue of orders as the case may be.
Despite the clear instructions contained in above orders which were widely circulated to all
Ministries/Departments, Department of Pension and Pensioners Welfare is receiving large number
of representations from individual who want to get their past service counted by surrendering pro-
rata pensionary benefits already drawn by them although they did not opt for counting of past
service within the stipulated time period and the usual excuses are that they were not aware of the
orders.

2. Ignorance of Rules could not be an acceptable reason for re-opening of a case after years. It has
now been decided that Department of Pension & Pensioners Welfare may consider only such
selective cases where it is established that the Government orders with regard to options were not
circulated to the field formations/offices by the administrative Ministry where applicant had been
working. In such cases, administrative Ministry concerned should clearly record a certificate to that
effect and also certify that the lapse regarding non-circulation is being investigated and action is
being taken by them to fix responsibility. In future, no case relating to exercising of belated options
will be considered unless the above condition is met.

3. All the Ministries/Departments are requested to bring the above instructions to the notice of all
the offices/field formations working under their administrative control.

(SUJIT DATTA)
Director (PW)

To

All Ministries/Departments and Organisations in the mailing list of Department of Pension &
Pensioners Welfare.
 No.28/2/85-P&PW
Government of India
Ministry of Personnel
Public Grievances & Pension
Department of Pension & Pensioners Welfare

6th floor, NirvachanSadan, Ashok Road,

New Delhi, dated the 22nd February, 1988

OFFICE MEMORANDUM

Subject: Mobility of personnel between Central Government Departments and Autonomous

Bodies counting of service for pension.

******************************************************

The undersigned is directed to say that vide para-7 of the instructions issued vide the
Department of Personnel & Administrative Reforms OM No.28/10/84-Pension Unit dated 29th
August, 1984 on the above subject these instructions are effective from the date of issue i.e. 29th
August, 1984. It is further stipulated therein that the revised policy as enunciated thereunder would
be applicable to those employees who retired from Government/Autonomous Body service on or
after the issue of these orders.

2. It has been held by the Supreme Court of India in its judgment dated 12th August, 1987 in
Writ Petition No.3739 of 1985 case of Shri R.L. Marwaha vs. Union of India & Others, that
paragraph 7 of the Government cannot be used against persons in the position of the petitioner to
deny them the benefit of the past service for purposes of computing the pension.

3. The question regarding implementation of the Supreme Court judgement has been under
consideration of the Government. The President has now been pleased to decide that the benefit
under the instructions contained in the orders dated 29-8-84 should also be extended to all those
who had retired prior to the issue of said orders and who are otherwise eligible for the benefit of
counting of service thereunder.

4. The arrears of pension, if any, which become due to the concerned pensioners, would be
disbursed to them w.e.f. 29-8-84 i.e. the date of the Government order only and that they would not
be entitled to get any relief in respect of the period prior to 29-8-84.

5. All the Ministries/Departments/Autonomous Bodies may review the cases of such pensioners
on receipt of their requests.

6. In their application to pensioners who retired from Indian Audit & Accounts Department,
these orders have been issued after consultation with the Comptroller & Auditor General of India.

Sd/-
(A.K. PATNAIK)
Deputy Secretary to the Government of India

To

All Ministries/Departments of the Government of India.

 No.28/10/95-P&PW(B)
Government of India
Department of Pension and Pensioners Welfare
..
New Delhi, 30th May 1995
OFFICE MEMORANDUM

Subject: Mobility of Personnel between Central Government Departments and Autonomous

Bodies - Counting of service for pension.
******************************************************

The undersigned is directed to refer to this Departments 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 employees 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 employers 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.

Sd/-
(S.C. BATRA)
DY. SECRETARY TO THE GOVERNMENT OF INDIA (FP)

To

All Ministries/Departments of the Government of India

(As per standard mailing list.)
 No.28/24/94-P&PW(B)
Government of India
Department of Pension and Pensioners Welfare
3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi-3
13th September 1996

OFFICE MEMORANDUM

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 Departments 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 Departments 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
Departments 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.

Sd/-
(H.L. ATTRI)
Dy. Secretary to the Govt. of India (PP)

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