Chapter-3 On Pension, Gratuity, BSNL GSLI

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CHAPTER-3
PENSION, GRATUITY, BSNL GSLI
For Internal Circulation Only
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Pension and Gratuity

LEARNING GOALS
After reading this section, you will be conversant with Calculation of Pensionary Benefits viz (a) Pension (b) Gratuity (c) Family Pension (d) Commutation (e) Leave Encashment. Classes of Pension and its description. Processing of Pension papers.
Introduction DTO/DTS/DOT Employees as on 30-9-2000 & absorbed in BSNL are eligible for Pension/Family Pension & Gratuity as applicable to Central Government Servants. (Rule 37 A CCS Pension Rules, 1972 ) Pension is the series of periodic money payments to a person who retires from service on completion of the agreed span of service. The payment continues for the rest of natural life of the receipient and sometimes to a widow of the survivor. Principles Governing Pension There are certain underlying principles governing the grant of pension. An employee is not eligible for pension unless the qualifying service is paid for and rendered in a post under the Government and he is holder of a substantive appointment at the time of retirement. In the recent past provision was made for grant of pension to the employees who did not hold substantive appointment at the time of retirement, but had rendered not less than 10 years of service if they retire on superannuation or invalidation or rendered not less than 20 years and retire voluntarily. Future good conduct is implied condition for grant of pension and it continuance in future. Various rules relating to conditions, and regulation of amounts of pension etc., are contained in C.C.S (Pension) Rules 1972. In this handout the procedure for verification of services, processing the pension cases, issue of pension payment order etc., are described in the succeeding paras.
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The verification of services rendered by an employees is the first step of the settlement of a pension case. Verification cases received in DOT cell is of two types viz., i) Verification of qualifying service after completion of 25 years of service or 5 years before the date of retirement and ii) Verification of services while finalising the pension case.
As a matter of fact the second category of case doe not come under verification cases, but final verification of qualifying service is also done while issuing the Enfacement Report and as such, they are entered(treated) as pension cases received for issue of Enfacement Report. Procedure for Verification A service statement along with the service book is received in pension section from the Head of the Office. The particulars of the case are entered in Register of Applications ( SY.133) for verification of services which is maintained to watch
the proper disposal of the cases for verification of services. The serial number assigned in the register is noted on the statement to signify the entry in the register. The service statement is examined to see:1. that it is complete in all respects; 2. that the date of birth shown in it tallies with the service book; 3. that all periods of non-qualifying service agree with the entries in the service book and no spell is left out; 4. that necessary notes regarding verification of service exist in the Service Book; 5. that the periods of service not verified with reference to acquittance rolls have been verified in accordance with the provisions of Rule 58(iv) of C.C.S (Pension) Rules, 1972.
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Circle Accountant or other competent authority for counting any military service which qualifies for Civil Pension; 7. in the case of foreign service the period should be verified from the particulars already recorded in a Service Book (Part- III) by the Chief Accounts Officer (TA). While checking if any discrepancies affecting the qualifying service are noticed, the case should be returned to the Head of the Office for reconciliation. If the discrepancies are such which do not affect the qualifying service, the same can be communicated to the Head of Office while returning the case after verification of the qualifying service. Issue of Verification Memo If the case is found fit for issue of a verification memo, it is prepared and signed by the Accounts Officer (DOT Cell). The Statement of services along with the service book should be returned to the Unit concerned. The disposal should be noted in the Register of Applications for verification of services. The maximum period allowed for disposal of verification statement is 15 days from the date of receipt of the case.
Procedure followed in the Units

Preparation of List of officials due to retire A list of officials (MSO(T)-26) who are due to retire within the next 24 to 30 months is prepared twice a year i.e., on 1st January and 1st July by the Head of Office. A copy of the list is supplied to the Accounts Officer(DOT Cell). Intimation to Directorate of Estates If the official is in occupation of Government accommodation, the Head of Office should write to the Directorate of Estates two years before the date of retirement for issue of No Demand Certificate in respect of the period preceding 8 months of retirement.
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The work of preparing the pension papers of an official due to retire on superannuation is undertaken 2 years before the date of retirement. This work is completed in the following stages: a) Checking the Service Book & see whether certificates of verification are recorded., b) Verification of unverified portions with reference to pay rolls / acquittance rolls etc., and recording necessary certificates., c) Referring to the concerned office in respect of unverified portion relating to other offices., d) Obtaining the declaration from the official in respect of service which could not be verified with any source available with the office., e) Admitting the unverified portion for qualifying service on the basis of the written statement (declaration) submitted by the official., f) Taking all possible steps for making good any omissions/ imperfections/ deficiencies(in S.B) affecting qualifying service. g) Determining qualifying service omitting such portion the verification of which was found not possible. h) Calculation of average emoluments after verifying the correctness of emoluments for a period of 10 months preceding the date of retirement., i) Not later than ten months prior to the date of retirement of the Govt. Servant, the Head of Office shall furnish to the retiring Govt. Servant a certificate regarding the length of qualifying service proposed to be admitted for the purpose of pension and gratuity as also the emoluments proposed to be reckoned with for retirement gratuity and pension. In case the certified service and emoluments as indicated by the Head of Office are not acceptable to him, he shall furnish to the Head of Office the reasons for non acceptance, inter alia, supported by the relevant documents in support of his claim.
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j) Obtaining Form- 5 from the retiring official ( along with the documents to be attached to Form-5) 8 months before retirement. k) Completion of Part-I of Form-7 and l) Forwarding Pension Papers before 6 months. Procedure followed in DOT Cell Processing of Pension and Gratuity cases 1. Verification of service. 2. Reporting on applications for pension (including Family Pension, Gratuity, Commutation of pension) in the form of Enfacement Report. 3. Issuing Pension or Gratuity, or Family Pension Payment Orders. 4. Checking of pension and Gratuity payment vouchers (by territorial Circle Accountatns.) 5. Compilation of periodical returns etc. (a) The procedure regarding the first item (Verification of service) has been described already. Now the procedure for other items of work is described in the succeeding paras. (b) Reporting on applications for Pension: On receipt of the
applications (Pension Papers) for pension and gratuity from the Head of Office the particulars are entered in the Register of Applications for Pension and Gratuity in Form No. SY. 134. The serial number assigned to each application in the register should be noted on the application to signify its entry in the Register. Each application should be scrutinized in respect of the following points.
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The following general checks are exercised in respect of the pension cases.
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Forms used Name of official
that it has been drawn up in proper forms. that uniformity of spelling in all accompanying documents was adopted.
Date of beginning of that it confirms with entry in service book and boy service etc., service are omitted as per rules. of in ending case of in the afternoon of the last day of the month in which the of official attains the age of 60 years. An official, whose date of birth is 1st of a month, retires on the afternoon of the last day of the preceding month on attaining the age of 60 years.
Date service
superannuation pension.
Period service
of
Military that it was treated as qualifying service for civil pension under the provision of Rule 19 of CCS (Pension) Rules. that the class of pension admissible is properly specified. i) that the periods such asa) boy service b) suspension adjudged as penalty. c) EOL without MC where specific entries that it does not count for pension, d) Overstayal of leave and joining time and e) Interruption declared as nonqualifying service have not been counted. ii) that the period of training before appointment was taken into account. iii) that the service book contains the certificate of verification iv) that proper action was taken by the Head of Office completing omissions
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Class of Pension Qualifying Service
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v) vi)
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that the calculations in leave account are correct that the entries of condonation of interruptions were properly made. vii) that the omissions, imperfections or deficiencies in Service Book which could not be completed were ignored. viii) that in the case of foreign service, contributions were recovered and entries to this effect were made. ix) Rounding Off of qualifying service: Rates of Pension/ gratuity have been prescribed with reference to the number of six-monthly periods of qualifying service. Under Rule 49(3) of CCS(Pension) Rules read with GID(2) thereunder, the period of three months and above will be reckoned as one completed half-year. This means that the fraction of a year consisting of Less than 3 months 3 months and above but less than 9 months. 9months & above to be ignored .one completed six monthly or Half year period. ........ Two completed six monthly or half year periods.
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that periods of EOL, Dies-non, overstayal and suspension treated as nonqualifying service if any, falling within the period of disregarded and equal period before 10 months was included. 10 months were
ii) iii) iv)
that the month is reckoned as 30 days irrespective of actual number of days. that the calculation of average emoluments is correct. If the employee was on leave of any kind with leave salary, the emoluments admissible if he was on duty during that period will be taken as emoluments and not the leave salary actually drawn by him. Similarly, if he was under suspension and subsequently reinstated in service without forfeiture of service (i.e., if the period of suspension is allowed to count as qualifying service), the emoluments which he would have drawn but for suspension will be taken into account and not the proportionate pay allowed for the period of suspension. However any increase in pay which is not actually drawn shall not form part of his emmoulments.But annual increment falling due during the period of earned leave ( and not other kinds of leave) not exceeding 120 days (or during the first 120 days of earned leave) but not actually drawn will be taken into account as emoluments drawn.
v)
If the employee was on leave with leave salary after holding higher appointment in an officiating/ temporary capacity, the benefit of emoluments drawn in such higher post will be given (for the period of leave) only in cases where it is certified that he would have continued to officiate in the higher post but for leave.
vi)
The pay drawn by an employee while on foreign service will not be treated as emoluments but the pay which he would have drawn under Government but for foreign service will alone be taken as emoluments.
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vii) In the case of re-employed Civil/ Military pensioner who retains the pensionary benefit for his past service, the element of pension, if any, by which his pay in the re-employed post is reduced, will be taken into account as emoluments. Calculation of Pension, Gratuity, Family Pension, Commutation Value Points to be seen o That the calculations have been made correctly as per the CCS(Pension) Rules 1972. Submission of other documents Points to be seen: that the documents viz., a) 3 passport photographs (two in the case of unmarried) duly attested by the Head of the Office. b) 2 slips of specimen signature duly attested by Gazetted Officer. c) 2 slips showing height & personal identification marks. d) Details of Family in Form-3 in case it was not submitted already. Special Checks to be Exercised In addition to the general points detailed in the preceding paragraph, some special points requiring notice are stated below for each class of pension. Invalid Pension i) that the applicant is declared by the appropriate medical authority to be permanently incapacitated for further service in accordance with the instructions on the subject., ii) if, however, the medical certificate is submitted by the applicant while on leave, the service upto the date of termination of the leave is taken into account i.e., the retirement in such case does not take effect from the date of report of the medical authority.,
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iii) that the amount of leave as debited against the leave account together with any period of duty beyond the date of the medical authoritys report should not exceed six months., iv) Invalid Pension should not be less than the normal Family Pension. However maximum commutation of Pension will be 40% of original Invalid Pension (before raising to that of Family Pension). Voluntary Retirement on Completion of 20 years of Qualifying Service (Rule 48A, CCS Pension Rules, 1972) i. The employee should give in writing to the appointing authority of his intension to retire at least three months before the intended date of retirement. The employee may, in writing, request for acceptance of notice of less than 3 months giving reasons therefor. This request may be considered by the appointing authority on merits on the condition that the employee shall not apply for commutation of his pension before the expiry of full notice period of 3 months. ii. Date of retirement will be a non-working day.
Calculation of Pension and Gratuity PENSION: a) In the case of Govt. Servant retiring after completing qualifying service of not less than 33 years, the amount of pension will be 50% of the average emoluments subject to maximum of Rs.15000 per month (w.e.f 1.1.96) [Rs.22500 w.e.f. 1-4-2004 (CDA scale)] e.g. Pension = Average Emoluments. 2 b) In the case of Govt. Servants retiring before completing the qualifying service of 33 years but after completing 10 years of qualifying service the amount of pension will be proportionate to the amount calculated under (a) above and subject to the minimum of Rs. 1275 per month (w.e.f. 1.1.96). [Rs.1913 w.e.f. 1-4-2004 (CDA scale)]
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Average Emoluments= Total of last 10 months emoluments 10 Emoluments = Basic Pay, N.P.A., & Stagnation Inct. Emoluments for drawing in CDA scale w.e.f. 1-4-2004 = Basic Pay, NPA, & Stagnation Increment + Dearness Pay (50% of Basic Pay) In respect of civil and military pension, the floor ceiling of Rs.1275 taking the two pensions together will not apply and the individual pensions will be governed by respective pension rules. (Dept. Pen. P.W. No.38/38/02-P&PW(A) W.E.F. 1-1-2006 Basic Pay in the revised pay structure means the pay drawn in the prescribed pay band plus the applicable grade pay but does not include any other type of pay like special pay, etc. (para 4.2 dt. 2-9-2008) ( the pay in the pay scale in the case of HAG + and above) The amount of pension shall be subject to minimum of Rs.3500 and maximum up to 50% of highest pay in the Government (The highest pay in the Govt. is Rs.90000 w.e.f. 1-1-2006) [para 5.5 dt. 2-9-2008] W.E.F. 2-9-2008 (applicable to Government servants retiring on or after 2-92008) Linkage of full pension with 33 years of qualifying service shall be dispensed with. Once a Government servant has rendered the minimum qualifying service of twenty years, pension shall be paid at 50% of the emolument or average emoluments received during the last 10 months, whichever is more beneficial to him (para 5.2 dt. 2-9-2008) In cases where Government servant becomes entitled to pension on completion of 10 years of qualifying service in accordance with Rule 49(2) of the CCS (Pension) rules, 1972, pension in those cases shall also be paid at 50% of the emoluments or average dt. 23-4-2003)
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emoluments, whichever is more beneficial to the Government servant. (para 5.3 dt. 29-2008) It has now been decided that the provision for payment of pension at 50% of the emoluments (pay last drawn) or 50% of average emoluments received during the last 10 months, whichever is more beneficial to the retiring employee, shall be applicable to all Government servants retiring on or after 1-1-2006. [Dept. of Pension & PW no.38/37/08-P&PW(A) dt. 11-12-2008]
It has now been decided that linkage of full pension with 33 years of qualifying service shall be dispensed with, with effect from 1-1-2006 instead of 2-9-2008. The revised provisions for calculation of pension in para 5.2 and 5.3 of the OM No.38/37/08-P&PW(A) dated 2-9-2008 shall come into force with effect from 1-12006 and shall be applicable to the Government servants retired/retiring after that date. Para 5.4 will further stand modified to that extent. Consequent upon the above revised provisions, in partial modification of para 7.1 of the OM No.38/37/01-P&PW(A) dated 2-9-08, the extant benefit of adding years of qualifying service for the purpose of computation of pension and gratuity shall stand withdrawn with effect from 1-1-2006. The overall calculation may take into account revised gratuity and revised pension/including arrears up to date of revision based on these instructions. However, no recoveries would be made in the cases already settled. [Dept. of Pension & PW no.38/37/08-P&PW(A) dt. 10-12-2009]
c) The full pension in no case shall be less than 50% of the minimum of the revised scale of pay introduced with effect from 1st January, 1996 for the post last held by the employee at the time of his retirement. [From 1-42004, pension should be not less than 50% of the minimum of the CDA scale plus Dearness Pay of the post] However such pension will be suitably reduced pro rata, where the pensioner has less than maximum required service for full pension as per the rule (Rule 49 of CCS (Pension) Rules, 1972) applicable to the pensioner as on the date of his/her superannuation/ retirement and in no case it will be less than Rs. 1,275 p.m. [Rs.1913 w.e.f. 1-4-2004 (CDA scale)]
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The full pension shall also not be lower than fifty percent of the sum of the minimum of the pay in the pay band and the grade pay (or 50% of the minimum of the scale in the case of HAG+ and above) For those who have retired between 1-1-2006 and 2-9-2008, the pension will be reduced pro-rata, where the pensioner had less than 33 years Q.S. (But, it should not be less than Rs.3500). In case the pension calculated in accordance with Rule 49 of CCS(Pension) Rules 1972, as applicable before 2-9-2008, is higher than the pension calculated in the manner indicated above, the same (higher pension) will be treated as Basic Pension. [Dept. P&PW OM NO.38/37/08-P&PW(A) pt.II dt. 3-10-2008]
d) Government Servants retiring before completing qualifying service of 10 years are not eligible for pension. However they will be entitled for
lumpsum payment termed as Service Gratuity calculated @ half emoluments for each completed 6 monthly period. Emoluments for Service Gratuity = Basic Pay, NPA, Stagnation Increment + DA [W.E.F. 1-1-2006 Pay drawn in the prescribed pay band plus the applicable grade pay (the pay in the pay scale in the case of HAG + and above) +DA on the date of retirement] (para 4.1 & 4.3 of OM dt. 2-9-2008) e) In the case of re-employment of a military pensioner in civil service, the pensionery benefits for second spell of service shall not be subject to any limitation as per provisions of Rule 18(3) of CCS Pension rules, 1972
W.E.F. 1-1-2006 The quantum of pension available to the old pensioners shall be increased as follows:Age of pensioner From 80 years to less than 85 years From 85 years to less than 90 years Additional quantum of pension 20% of basic pension 30% of basic pension
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From 90 years to less than 95 years From 95 years to less than 100 years 100 years or more
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40% of basic pension 50% of basic pension 100% of basic pension
The pension sanctioning authorities should ensure that the date of birth and the age of a pensioner is invariably indicated in the pension payment order to facilitate payment of additional pension by the Pension Disbursing authority as soon as it becomes due. (para 5.7 of OM dt. 2-9-2008) The additional quantum of pension, on attaining the age of 80 years and above, would be admissible from the 1st day of the month in which his date of birth falls. (Dept. of P&PW OM no.38/37/08-P&PW(A).pt.II dt.3-10-2008) GRATUITY. 1. Government Servants retiring after completing 5 years of qualifying service, Gratuity shall be calculated at the rate of 1/4th of emoluments for each completed six monthly period subject to a maximum of 16 times of emoluments or Rs. 3.5 lakhs whichever is less.(w.e.f. 1.1.1996) [Maximum Gratuity Rs.10 lakhs w.e.f. 1-1-2006] (para 6.1 dt. 2-9-2008) 2. Emoluments for this purpose shall be last pay drawn or Average Emoluments, whichever is higher plus DA on the date of retirement on Average Emoluments / Last Pay. 3. Last Pay / Average Emoluments = Basic Pay, NPA & Stagnation Increment.
[W.E.F. 1-1-2006 Pay drawn in the prescribed pay band plus the applicable grade pay (the pay in the pay scale in the case of HAG + and above) +DA on the date of retirement] 4. A temporary G.S. who retires on superannuation or discharged from service or declared invalid for further service or absorbed in an autonomous body before completing ten years of continuous service shall be eligible to gratuity on the same scale and rates as are applicable to permanent civil G.S. under the provisions of CCS (Pension) Rules 1972.
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Clarification regarding payment of pensionary benefits to a retiree against whom personal court case (other than Department) is pending in the Competent court. The department of Pension & PW (vide their I.D.No.17729/03-P&PW(F) dated 10-3-2003) have advised that the term judicial proceedings mentioned in Rule 69 of CCS (Pension Rules )1972 is relating to judicial proceedings initiated against a Govt. Servant in his official capacity by the Government authorities. The judicial proceedings initiated against the Government servant by a private person/agency will not come the ambit of this rule. Hence there is no objection in releasing DCRG and final pension to those Govt. servants against whom judicial proceedings have been initiated by private parties. The Department of Legal affairs (vide their U.O. No.10412/03 dated 18-32003) have concurred in the above views of Department of Pension & PW. (DOT Lr.No.36-9/2002-Pen(T) dt. 24-3-2003)
Retirement Benefits in respect of Government service to persons Dismissed/Removed after their Absorption in BSNL As per Sub-rule 24 of Rule 37-A of CCS (Pension) Rules, 1972, the absorbed employees of BSNL are entitled to retirement benefits for the service rendered under the Government even if they are dismissed/removed from the service after their absorption in BSNL for any misconduct during service in BSNL. The retirement benefits in such cases shall be admissible from the day following the date of dismissal/removal from BSNL (DOT No.318-12/2008-Pen(T) dt. 21-7-2009)
Terminal/ Death Benefit to Temporary Employees. a) Terminal Benefits 1. Quasi- Permanent and temporary employees, who retire on superannuation or on being declared permanently incapacited for further Government service by the appropriate medical authority after having rendered temporary service of not less than 10 years, shall be eligible for grant of superannuation
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/ invalid pension, retirement gratuity and family pension at the same scale as admissible to permanent employees under the C.C.S (Pension) Rules 1972. 2. Temporary and quasi-permanent employees who seek voluntary retirement after completion of 20 years of service shall continue to be eligible for retirement pension and other pensionary benefits like gratuity and family pension. 3. In case not covered by paragraphs 1 and 2 above the terminal benefits will continue to be admissible as at present under C.C.S (Temporary Service) Rules, 1965.
b) Death Benefits: In the event of death in harness of temporary/ quasi permanent Government Servants, their families shall be eligible to family pension and death gratuity on the same scale as admissible to families of permanent Government Servant under the C.C.S(Pension) Rules, 1972. Commutation Pension A retired official is entitled to commute a fraction of his pension subject to a maximum of 40% of pension sanctioned.(w.e.f. 1.1.1996) a) The amount payable shall be calculated as shown below: Amount of Pension to be commuted x 12 x commutation factor. b) The commutation factor as per the commutation table on the basis of age of next birth day shall be taken into account. Commuted value of Pension is rounded off to the next higher rupee. The application for commutation of pension are of two categories. A brief description of each category is given below:
Commutation Without Medical Examination a) A retiring official on superannuation pension can submit his application in Form 1-A for commutation of pension before the date of superannuation to the Head of Office. The application is forwarded to the Accounts Officer. After verification of the application, the Accounts Officer authorises the
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Head of Office to draw the amount of commuted value and disburse to the retiring official on or after the date following date of retirement. b) A retired official (as indicated in Rule 12 of( CCS Commutation of Pension) Rules 1981) can submit his application in Form-1 for
commutation before the expiry of one year to the Head of office. The application is forwarded to the Accounts Officer. After verification of the application and receiving the PPO from the Post Office, the Accounts Officer will issue the authority for the payment of commuted value to the pension disbursing authority concerned and endorse a copy to the pensioner with instruction to collect the commuted value from the pension disbursing authority. A revised PPO for the reduced value of pension is issued. Commutation With Medical Examination All the retired officials listed in Rule 18 of CCS(Commutation of Pension) Rules 1981 will apply in form-2. Commuted Value of Pension will be authorised after medical examination and verification of the application etc. Cases where medical examination is necessary: 1) In Superannuation Pension & Retiring Pension, if the application for commutation is received after one year of date of retirement. 2) Invalid Pension. 3) Compulsory Retitrment Pension. A Government Servant or a pensioner against whom Departmental or judicial proceedings are pending is not eligible to commute a part of his pension till the finalization of the proceedings. Commutation is permissible on the provisional pension except in cases where the provisional pension is sanctioned due to pendency of Departmental or judicial proceedings.
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The reduction in the monthly pension as a result of commutation will take from i. If pension is drawn from the Pension Disbursing Officer, the date of receipt of the commutation amount by the pensioner or at the end of 3 months from the date of issue of authority for payment by the Accounts Officer, whichever is earlier. ii. If pension is drawn through Bank, the date of credit of the commutation amount to the applicants account. iii. If the application for commutation is submitted before superannuation, from the date following the date of retirement. However, if payment of commutation amount could not be effected due to administrative reasons within the first month after retirement , the difference of pension due for the period, i.e., from the day following the day of retirement and the day preceding the date of receipt of commutation amount is payable to the pensioner. iv. Nomination: Along with the application for commutation Nomination should be submitted in Form.5. In the event of the death of the pensioner before receipt of the commutation amount, the commutation amount will be paid to the nominee. In the absence of a valid nomination, the amount will be paid as in the case of Death Gratuity, failing which to the legal heirs. The part of the pension commuted will be restored after fifteen years from the date following the date of retirement, if the reduction in pension due to commutation is effected in the first month pension itself. Otherwise, it will be restored after fifteen years reckoned from the date of payment of the commutation amount. W.E.F 2-9-2008 The existing Table of commutation value for pension annexed to the CCS (Commutation of Pension) Rules, 1981 shall be substituted by a new table at Annex.I of this O.M. (para 9.2 dt. 2-9-2008)
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The revised table of commutation value for pension will be used for all commutations of pension which become absolute after the date of issue of this O.M. (2-9-2008) In the case of those pensioners, in whose case commutation of pension became absolute on or after 1-1-2006 but before the issue of this OM, the pre-revised table of commutation value for pension will be used for payment of commutation of pension based on pre-revised pay/pension. Such pensioners shall have an option to commute the amount of pension that has become additionally commutable on account of retrospective revision of pay/pension on implementation of the recommendations of the Sixth Central Pay commission. On exercising such an option by the pensioner, the revised Table of commutation value for pension will be used for the commutation of the additional amount of pension that has become commutable on account of retrospective revision of pay/pension. In all cases where the date of
retirement/commutation of pension is on or after the date of issue of this OM, the revised table of commutation value for pension will be used for commutation of entire pension. (para 9.3 dt. 2-9-2008)
S. No. 1 Points raised What would be the age to be used for commutation of additional commutable pension and which factor would be used for such additional commuted value of pension Clarifications The age reckoned for calculation of commuted value of pension at the time of original application for commutation of pension will apply for calculation of commutation value of additional commutable pension. However, as mentioned in the OM dated 2-9-2008, the commutation factor in the revised Table of commutation value for pension will be used for commutation of the additional amount of pension that has become commutable on account of retrospective revision of pay/pension 2. From which date the reduction in pension on account of additional commutation of pension will take effect? Reduction in pension on account of additional commutation of pension will be in two stages as per the provisions contained in Rule 6 of the CCS
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(Commutation of Pension) Rules, 1981.
3.
What will be the date of restoration of additional commutation of pension?
The commuted portion of pension shall be restored after 15 years from the respective dates of commutation as provided in Government of India decision no.1 under rule 10 of CCS (commutation of Pension) Rules, 1981. Necessary endorsement should be made in the PPO.
[Dept. Pen &PW OM No.38/79/2008-P&PW(G) dt. 16-2-2009]
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E1-E2 Core ANNEXURE I
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COMMUTATION VALUE FOR A PENSION OF Re.1 PER ANNUM

Age next birth day Commutation value expressed as number of years purchase 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 9.188 9.187 9.186 9.185 9.184 9.183 9.182 9.180 9.178 9.176 9.173 9.169 9.164 9.159 9.152 9.145 9.136 9.126 9.116 9.103 9.090 Age next birth day 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 Commutation value expressed as number of years purchase 9.075 9.059 9.040 9.019 8.996 8.971 8.943 8.913 8.881 8.846 8.808 8.768 8.724 8.678 8.627 8.572 8.512 8.446 8.371 8.287 8.194 Age next birth day 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 8.093 7.982 7.862 7.731 7.591 7.431 7.262 7.083 6.897 6.703 6.502 6.296 6.085 5.872 5.657 5.443 5.229 5.018 4.812 4.611 Commutation value expressed as number of years purchase
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Sub:- Voluntary Retirement from BSNL Service

The undersigned is directed to say that consequent upon insertion of sub-rule 37-A (11A) in Central Civil Services (Pension) rules, 1972 vide Central Civil Services (Pension) Amendment Rules, 2002 notified in the Gazette of India on 28-12-2002, a doubt arose as to whether Rule 48 and Rule 48-A of the same rules would continue to be applicable to the employees permenently absorbed in BSNL. It also required to be clarified as to whether the benefit of rule 48-B of CCS (Pension) Rules would be available to the govt. employees absorbed in BSNL covered under Rule 37-A(11A). Accordingly, all Telecom. Circle offices were advised to withhold further processing of voluntary retirement cases till further orders vide this office letter no.17-29/2004Pers.II dated 20-7-2004. After examining the matter in consultation with BSNL finance and Department of Telecom, it is hereby clarified that after notification of CCS(Pension) amendment rules, 2002, rule 48 and rule 48B of CCS (Pension) rules, 1972 are no more applicable to the Govt. employees absorbed in BSNL and consequently all voluntary reitrement requests of such employees are now covered under the provisions of sub-rule 37A(11A) of the same rules. As regards benefit of additional qualifying service as available under Rule 48-B of CCS(Pension) Rules, 1972, it is clarified that the same is not available to the employees retiring under sub-rule 37-A(11A) of CCS(Pension) Rules. Accordingly, Government employees absorbed in BSNL shall be required to submit their application/notice afresh under Rule 37A(11A) of the same rules for consideration and acceptance by the appointing authority. (BSNL HQ No.31-94/2004-Pen/BSNL dt. 8-10-2004)
Family Pension
Receipt of Pension Papers
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On receipt of the intimation about the death of an employee while in service the Head of office will ascertain whether any Gratuity or family pension will be payable.
If the deceased employee is eligible for Death Gratuity, the Head of office shall address the concerned person to whom the amount is payable as per rules, in form-10 or form-11 as the case may be for making a claim in form12.
If the family of the deceased employee is eligible for family pension, a claim in form-14 is obtained from the family by addressing (form-13) to make a claim. Where the family is residing in the place of duty of Head of office, the forms and documents, if possible, are obtained personally and for this purpose the services of Welfare Officer can be utilised.
If the deceased employee was an allottee of Government accomodation, Estates Officer should be addressed for issue of No Demand Certificate.
Verification of Service The Service Book of the deceased employee is verified to see whether the certificates of verification are accepted as verified on the basis of the available entries in the service book. While accepting such periods, it should be ensured that the service was continuous and was not forfeited on account of dismissal/ removal or resignation from service or participation in strike. (a) For the purpose of determination of emoluments for family pension and Gratuity the verification of correctness of emoluments is confined for a maximum period of one year preceding the date of death of employee. Cases of incomplete service records 1. Family Pension 2. If the deceased employee rendered more than one year but less than 7 years: The service and emoluments for the last one year of service is verified and the amount of family pension is determined.
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3. If the service rendered is more than 7 years: The service for the last 7 years and emoluments for the service rendered in last one year should be verified and accepted and family pension is determined. 4. If the service rendered is more than 7 years and the service for the last 7 years is not capable of being verified and accepted, but the service for the last one year is capable of being verified and accepted : Pending verification of services for 7 years, family pension is calculated. The services for the last 7 years should be verified and accepted within the next two months and the amount of Family Pension at enhanced rate and the period for which it is payable should be determined. a) Death Gratuity 1) If the deceased employee rendered more than 5 years of service but less than 20 years of qualifying service and the spell of the last 5 years has been verified and accepted: The amount of gratuity will be equal to 12 times of emoluments. Where the verified and accepted service is less than 5 years of qualifying service the gratuity will be the amount as indicated in the table reproduced in Para No.9.1 2) If the deceased employee had rendered more than 24 years of service and entire service is not capable of being verified and accepted, but the service for the last 5 years has been verified and accepted, the gratuity equal to 12 times of the emoluments is allowed on provisional basis. Final amount of gratuity should be determined on the acceptance and verification of the entire service, to be done within a period of 6 months of the issue of the authority of provisional gratuity and the balance, if any, will be authorised to the beneficiaries. Admissibility: Family Pension is admissible on the death of a Government Servant while in service after having put in one years service, and also to those with less than one years service if proper medical fitness certificate for appointment has been submitted. It is also admissible in the case of death of a pensioner, receiving any pension or compassionate allowance.
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Definition of Family:- Family in relation to a Government Servant for the purpose of Family Pension means:-
i)
Wife or Husband (even in cases where the marriage took place after retirement),
ii)
A judicially separated wife/ husband if such separation was not granted on the ground of adultery and the surviving spouse was not held guilty of adultery;
iii)
Sons, unmarried daughters, Widowed and divorced daughters, legally adopted son/ unmarried daughter born/ adopted before or after retirement, who have not attained 25 years of age;
iv) v)
Posthumous child and Parents who were wholly dependent on the Government Servants when he/she was alive provided the deceased employee had not left behind a widow /widower, eligible son or daughter or a widowed/divorced daughter, who will have a prior claim to the family Pension in the order indicated.
It has since been decided by the Government that the income criteria in respect of parents and widowed/divorced daughters will be that their earning is not more than Rs. 2,550/- per month. The parents will get family pension at 30% of basic pay of the deceased employee subject to a minimum of Rs. 1,275/- per month. They also will have to produce an annual certificate to the effect that their earning is not more than Rs.2,550 per month. Further, the family pension to the widowed/ divorced daughters will be admissible till they attain the age of 25 years or upto the date of her remarriage, whichever is earlier. It has also been decided by the Government on the basis of the recommendations of the Fifth Central Pay Commission and in partial modification of this Departments O.M No. 1(26)-P&PW/90-(E). dated 18.1.1993 that the Family Pension in respect of sons /daughters (including widowed/ divorced daughter) will be admissible subject to the condition that the payment should be discontinued/ not admissible when the eligible son/ daughter starts earning a sum of Rs. 2,550/- per month from employment
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in Government, the private sector, self employment, etc. It is further clarified that the family pension to the son/daughter will be admissible till he/ she attains 25 years of age or up to the date of his/ her marriage/ re-marriage whichever is earlier. There is however, no change in the provisions about admissibility of family pension in respect of sons/ daughters suffering from any disorder or disability of mind or who is physically crippled or disabled as mentioned in the O.M dated 18.1.1993. Admissibility of family pension to parents and widowed/ divorced daughter will be effective from 1.1.1998 subject to fulfilment of other usual conditions. The cases where family pension has already been granted to sons/ daughters after 1.1.1998 before issue/ implementation of this OM without imposition of earning condition need not be reopened. (G.I Dept. of Pen & Pen.Welfare O.M No. 45/51/97-P&PW(E) dtd. 5.3.98) Parents of Government servants who died prior to 1-1-98 will also be entitled to family pension, w.e.f. 1-1-98. The family pension wherever admissible to parents, the mother will receive first and after her death, the father will receive the family pension. Parents are eligible for family pension at the ordinary rate only i.e. 30% of the pay of the deceased employee. Payment of family pension is to be discontinued in the event of the eligible sons/daughters (including widowed/divorced daughters) getting married/remarried or on their earning a monthly income exceeding Rs.2550 or on attaining 25 years of age whichever is earlier. It has been decided that if the marriage of the disabled daughter is legally annulled, she would be eligible for family pension for life from the date her marriage stands annulled, subject to the following conditions:(i) (ii) (iii) Divorce is valid in law Divorced daughter comes back to her parental home. Disability is certified by an appropriate authority as required under the rules. (iv) The requirement regarding submission of the requisite certificates as laid down under rule 54(6) of the CCS (Pension) rules for
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Similarly, the widowed disabled daughter would also be eligible for family pension for life from the date of death of her husband, subject to fulfillment of above mentioned conditions, as applicable in her case. (Deptt. of Pension & P.W. No.45/51/97-P&PW(E) Vol.II dt. 25-7-2001) Payment of family pension is to be allowed to the judicially separated spouse of the deceased G.S. after his/her children cease to be eligibility for family pension till his/ her death or remarriage whichever is earlier. (Deptt. of Pension & P.W. No.1/6/98-P&PW(E) dt. 5-7-1999) Eligibility of divorced /widowed daughter for grant of Family Pension The undersigned is directed to say that as per Clauses (ii) and (iii) of sub-rule (6) of Rule 54 of the CCS (Pension) Rules, 1972 read with clause (b) of para 7.2 of this Departments O.M. No. 45/86/97-P& P W(A)-Part I, dated the 27th October, 1997, son/daughter including widowed/divorced daughter shall be eligible for grant of family pension till he/she attains the age of 25 years or up to the date of his/her marriage/remarriage, whichever is earlier (subject to income criterion to be notified separately). The income criterion has been laid down in this Departments O.M.No.45/51/97-P&PW(E), dated the 5th March, 1998 according to which, to be eligible for family pension, a son/ daughter (including widowed/divorced daughter) shall not have an income exceeding Rs.2550 per month from employment in Government, the private sector, self employment, etc. Further order were issued vide this Departments O.M. No.45/51/97-P&PW(E) (Vol.II), dated the 25th July 2001 regarding eligibility of disabled divorced/widowed daughter for family pension for life subject to conditions specified therein. 2. Government has received representations for removing the condition of age limit
in favour of divorced/widowed daughter so that they become eligible for family pension even after attaining the age limit of 25 years. The matter has been under consideration in this Department for some time. In consultation with the Ministry of Finance, Department of Expenditure and the Ministry of Lay and Justice, Department of Legal affairs etc., it has now been decided that there will be no age restriction in
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the case of the divorced/widowed daughter who shall be eligible for family pension even after their attaining 25 years of age subject to all other conditions prescribed in the case of son/daughter. Such daughter, including disabled divorced/widowed daughter shall, however, not be required to come back to her parental home as stipulated in para 2(ii) of this Departments O.M. dated the 25th July, 2001, which may be deemed to have been modified to that extent. (Dept. of Pen. & PW OM No.1/19/03-P & PW (E) dated 25-8-2004)
Extension of scope of family pension to unmarried daughters of Central Government servants/pensioners The undersigned is directed to say that as per existing provisions under clauses (ii) and (iii) of sub-rule (6) of Rule 54 of the C.C.S. (pension) Rules, 1972, read with of para 7.2 (b) of this Departments O.M. No.45/86/97-P&PW(A)-Part I dated the 27th October 1997, son/daughter including widowed/divorced daughter is eligible for grant of family pension till he/she attains the age of 25 years or up to the date of his/her marriage/remarriage, whichever is earlier subject to income criterion laid sown in this Departments O.M.No.45/51/97-P&PW(E) dated the 5th March 1998 which stipulates that a son/daughter, including widowed/divorced daughter, shall not have an income exceeding Rs.2550/- per month from employment in Government, the private sector and self employment, etc., to be eligible for family pension. Orders were also issued vide this Departments O.M.No.45/51/97-P&PW (E) (Vol. II) dated 25th July 2001 regarding eligibility of disabled divorced/widowed daughter for family pension for life subject to conditions mentioned therein. Further, orders were issued for making the widowed/divorced daughter eligible for family pension vide this Departments O.M. of even number dated 25th August, 2004.
2. scope
The staff side of National Council (JCM) had raised the issue of extension of of family pension to unmarried daughters of the government
servants/Pensioners even after attaining the age of 25 years at par with the widowed/divorced daughters, which has been agreed to in principle. It has, accordingly, been decided that the unmarried daughters beyond 25 years of age shall
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also be eligible for family pension at par with the widowed/divorced daughters subject to other conditions being fulfilled. Grant of family pension to
unmarried/widowed/divorced daughters shall be payable in order of their date of birth and younger of them will not be eligible for family pension unless the next above her has become ineligible for grant of family pension. It is further clarified that family pension to unmarried/widowed/divorced daughters above the age of 25 years shall be payable only after the other eligible children below the age of 25 years have ceased to be eligible to receive family pension and that there is no disabled child to receive the family pension. (Dept. of Pension & Pensioners welfare No.1/19/03-P&PW(E) dt. 6-9-2007)
WE.F. 1-1-2006 For the purpose grant of Family Pension, the Family shall be categorized as under: Category-I (a) Widow or widower, up to the date of death or re-marriage, whichever is earlier; (b) Son / daughter (including widowed daughter), up to the date of his/her marriage/re-marriage or till the date he/she starts earning or till the age of 25 years, whichever is the earliest Category-II (c) (c) Unmarried/Widowed/Divorced daughter, not covered by Category I above, up to the date of marriage/re-marriage or till the date she starts earning or up to the date of death whichever is earliest (d) (d)Parents who were wholly dependent on the Government servant when he/she was alive provided the deceased employee had left behind neither a widow nor a child. Family pension to dependent parents, unmarried/divorced/widowed daughter will continue till the date of death. Family pension to Unmarried/widowed/divorced daughters in Category II and dependent parents shall be payable only after the other eligible family members in
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category I have ceased to be eligible to receive family pension and there is no disabled child to receive the family pension. Grant of family pension to children in respective categories shall be payable in order of their date of birth and younger of them will not be eligible for family pension unless the next above him/her has become ineligible for grant of family pension in that category. (para 8.4 of OM dt. 2-9-2008) The dependency criteria for the purpose of family pension shall be the minimum family pension along with dearness relief thereon (para 8.5 dt. 2-9-2008) The childless widow of a deceased Government employee shall continue to be paid family pension even after her remarriage subject to the condition that the family pension shall cease once her independent income from all other sources becomes equal to or higher than the minimum prescribed family pension in the Central Government. The family pensioner in such cases would be required to give a declaration regarding her income from other sources to the pension disbursing authority every six months. (para 8.6 dt. 2-9-2008) It has now been decided to include the dependent disabled siblings (i.e. brothers/sisters) of Government servants/pensioners in the definition of family for the purpose of eligibility for family pension. Such disabled siblings shall be eligible for family pension for life in the same manner and following the same disability criteria, as laid down in rule 54 of the CCS (Pension) rules, 1972 in the case of son/daughter of Government employees/Pensioners suffering from any disorder or disability of mind (including mentally retarded) or physically crippled or disabled, so as to render him/her unable to earn a living even after attaining the age of 25 years. [Dept. of Pen. & PW no.1/15/2008-P&PW(E) Rates of family pension. (W.E.F 1.1.96) Last Pay or Average Emoluments whichever is higher--- 30% Minimum-- Rs. 1,275/- [CDA scale w.e.f. 1-4-2004 =Rs.1913] Maximum Rs. 9,000/- [CDA scale w.e.f. 1-4-2004 =Rs.13500] Last Pay/ Average Emoluments = Basic Pay, NPA & Stagnation Increment [CDA Scale (1-4-2004) Basic Pay, NPA & Stagnation Increment + Dearness Pay (50% of Basic Pay)] dt. 17-8-2009]
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[W.E.F. 1-1-2006 Pay drawn in the prescribed pay band plus the applicable grade pay ( the pay in the pay scale in the case of HAG + and above)] The family pension shall not be less than 30% of the minimum pay (not NPA) in the revised scale introduced w.e.f. 1-1-96 of the post last held by the pensioner/deceased Government servant. W.E.F. 1-1-2006 Minimum Rs.3500 Maximum Rs.27000 (30% of highest Pay Rs.90000) (para 8.1 of OM dt. 2-9-2008) Enhanced rates of family pension i) A higher rate of family pension is payable for a period of 7 years from the date following the date of death or for a period up to the date on which the deceased Government Servant would have attained the age of 65 years (67 years in cases where government is to retire at the age of 60 years in pursuance of the notification No.GSR 248(E), DATED 13-5-1998 AND NOT WHERE Government servant has already retired at the age of 58 years or would have retired at the age of 58 years but for his premature demise) had he survived whichever is earlier, if the Government servant has rendered not less than 7 years of continuous service. ii) In the case of death while in service the family will be entitled for higher rate of family pension at the rate of 50 % of basic pay or twice the family pension whichever is less. iii) In the event of death of Government servant after retirement the family is entitled for higher rate of family pension at the rate of 50% of basic pay or twice the family pension or normal pension whichever is less.
W.E.F. 1-1-2006
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The enhanced family pension under Rule 54(3)(a)(i) shall be payable to the family of a Government servant who dies in service from the date of death of the Government servant for a period of ten years, without any upper age limit. (para 8.2 of OM dt. 2-92008)
Whether the period of 10 years for payment of enhanced family pension would also apply in the case of a Government servant who dies before 1-1-2006 and in respect of whom the family was receiving enhanced family pension as on 1-1-2006. Yes. The period of 10 years for payment of enhanced family pension will count from the date of death of the Government servant. These orders will, however, not apply in a case where the period of seven years for payment of enhanced family pension has already been completed as on 1-1-2006 and the family was in receipt of normal family pension on that date. (Dept. of P&PW OM no.38/37/08-P&PW(A).pt.II dt.3-10-2008)
The quantum of family pension available to the old family pensioners shall be increased as follows:Age of family pensioner From 80 years to less than 85 years From 85 years to less than 90 years From 90 years to less than 95 years From 95 years to less than 100 years 100 years or more Additional quantum of family pension 20% of basic family pension 30% of basic family pension 40% of basic family pension 50% of basic family pension 100% of basic family pension
The pension sanctioning authorities should ensure that the date of birth and the age of a family pensioner is invariably indicated in the Form 3 (regarding details of family) and the pension payment order to facilitate payment of additional family pension by the pension disbursing authority as soon as it becomes due. The amount additional family pension will be shown distinctly in the pension payment order (para 8.3 of OM dt. 2-9-2008)
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The additional quantum of family pension, on attaining the age of 80 years and above, would be admissible from the 1st day of the month in which his date of birth falls (Dept. of P&PW OM no.38/37/08-P&PW(A).pt.II dt.3-10-2008) DEATH GRATUITY In the event of death in harness, the Death Gratuity shall be admissible at the following rates:-
Emoluments = Average Emoluments / Last Pay whichever is higher Plus DA on the date of death. Average Emoluments/ Last Pay = Basic Pay, NPA & Stagnation Increment.
Length of Service Less than one year One year or more but less than 5 years. 5 years or more but less than 20 years. 20 years or more Half of emoluments for every completed six monthly period of qualifying service subject to a maximum of 33 times emoluments provided that the amount of Death Gratuity shall in no case, exceed 3.5 Lakh rupees w.e.f. 1.1.96. [Rs.10 Lakhs, w.e.f. 1-1-2006 (para 6.1 of OM dt. 2-9-08)] 12 times of emoluments. Rate of Gratuity 2 times of emoluments. 6 times of emoluments.
Definition of Family: For the purpose of payment of death gratuity, family in relation to a Government servant means: i) ii) iii) iv) v) vi) Wife or wives (including judicially separated), Husband(including judicially separated), Sons/stepsons/adopted sons, Unmarried daughters/ stepdaughters/adopted daughters, Widowed daughters/ stepdaughters/ adopted daughters, Father including adoptive father if personal law permits adoption;
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Rev. Date: 15-03-2011 Mother including adoptive mother if personal law permits adoption; Brothers/ step brothers below 18 years of age; Unmarried/ Widowed sisters including step-sisters; Married daughters; and Children of pre-deceased son. (Rule 50(6))
Persons to whom gratuity is payable.
i)
Where a valid nomination exists:- If the nominee- family member or members are surviving and are eligible to receive the gratuity, payment will be made to all such nominees in the shares indicated in the nomination. Eligibility will have to be checked whether the nominees fulfill the conditions as on the date of death. For example, brother attaining the age of 18 years or sister getting married before death of the official becomes ineligible. If these events take place after the death of the official but before the payment is made, their eligibility will not be affected. If all the nominees are alive and are eligible, payment will be made as per the nomination without any difficulty.
ii)
Where a part of the nomination only is valid:- If only some members of the family become ineligible and the others nominated are eligible, the share/ shares of the ineligible members will be paid equally to the eligible nominees.
iii)
Where there is no valid nomination:- In cases where the entire nomination becomes invalid due to the nominee(s) as also the alternate nominee(s) either pre-deceasing the official or becoming ineligible or where no nomination was made, payment will be made as under: a) in equal shares to the surviving members of the family, viz., spouse, sons and daughters . b) if there are no surviving members as in (a) above, to other members of the family as in (v) to (xi) of Para 9.2 above.
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After obtaining the claim/ claims from the family, Form-18 is completed. It is sent to Accounts Officer with a covering letter in Form-19 alongwith the documents listed therein (from-19) within one month of the claim. The DOT Cell(CCA) will issue a sanction letter in favour of claimant or claimants indicating the amount of provisional family pension and 100% of gratuity. The amount recoverable from the gratuity is also indicated. After the issue of sanction letter, the provisional family pension and gratuity after deducting the dues are drawn & disbursed by the DOT Cell (CCA) to the claimant/claimants On receipt of the papers requisite checks are exercised and section I of Part-II of Form-18 is completed. The amount of balance of gratuity is determined after adjusting all dues. Then DOT Cell to draw & disburse the balance of gratuity to the claimant/ claimants. The fact of issue of pension payment order is reported to the Head of Office.
When both husband and wife are Government servants On the death of both husband & wife, the children of the deceased couple will be granted two F.P. subject to the following limits: - (1-1-1996) 1. If both or one of the family pension is payable at the higher rateMaximum Rs.15000 2. If both the F.Ps. are payable at the normal rate Rs.9000 (No.45/1/2001-P&PW(E) dt. 30-6-2005) Payment of benefits when an officials where-abouts not known. If an employee is missing and his whereabouts are not known, his family can be paid the retirement benefits. For this purpose, the family should have lodged a complaint with the Police Station concerned and obtained a report that the employee has not been traced after all efforts had been made. Benefits payable in the first instance.: Salary due, leave encashment due and the amount of GPF.
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After one year.: i) Death Gratuity limited to the amount of Retirement Gratuity; (ii) Family Pension from the date of FIR or expiry of leave whichever is later ; and (iii) Accumulations from the Savings Fund under Group Insurance Scheme. The nominees/ dependants should furnish an Indemnity Bond that all payments shall be adjusted against the payment due to the employee in case he/ she appears on the scene at a later date and makes a claim. After death is established or seven years.: i) ii) iii) Difference between death gratuity and retirement gratuity; Insurance cover admissible under Group Insurance Scheme; Deposit Linked Insurance Scheme(If conditions are satisfied.)
The claimants should produce proper and indisputable proof of death or Decree of the Court that the employee concerned should be presumed to be dead as laid down in Section of 108 of the Indian Evidence Act. Subscriptions for one year and insurance premium alone for the next six years will be recovered with interest from the amounts payable on account of Savings Fund and Insurance Fund respectively under Group Insurance Scheme. If an employee dies while in service, his family will be eligible for immediate monetary relief of three months pay or Rs.8000, which ever is less in the form of advance(payable only to the person, in the same manner as payment of death gratuity), which is adjustable within 6 months from arrears of pay & allowances, leave salary, death gratuity, balance in GPF or any other payment due in respect of deceased official.
Benefits from Welfare Fund
Immediate financial assistance to the family of BSNL employees who die in Harness.
Rs.7000/- irrespective of the status of the employee i.e. whether he was a permanent or temporary official or temporary status Mazdoor. The basic pay of the deceased employee should not be more than Rs.12750/-(CDA Pay-scale) on the date of
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his/her death.
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Financial assistance in cases of death occurred due to attack by robbers, terrorist, riots etc., (i) Death due to attack by robbers, terrorist, riots etc., while on duty (ii) Death due to attack by robbers, terrorists riots etc., while not on duty Rs.10000/Rs.5000/-
In case of Temporary Status Mazdoors and casual labourers also the above amount is to be paid to the bereaved families. The financial assistance indicated above will be in addition to the immediate relief of Rs.7000/- and lump sum compensation wherever applicable as provided under the companys orders.
5.Financial Assistance in case of death and Booking of expenditure thereof:- It has been decided that henceforth immediate financial assistance to the family of deceased employee be raised from Rs.7000/- to Rs.10000 and expenditure may continue to be met from the Welfare Fund. These orders shall be effective from the financial year 2006-07. (BSNL HQ No.12-1/2005-BSNL (Welfare) dt. 24-4-2006)]
4. Financial assistance in case of death: It has been decided that the immediate financial assistance of Rs.15000 in case of death of employee be paid immediately to the family of deceased employee from the administrative fund, if the welfare fund is not available,. It can be recouped later from the Welfare fund [BSNL HQ No.12-1/2009-BSNL(WL) dt. 1-6-2009) Dearness relief to re-employed pensioners and employed family pensioners:(1) Dearness Relief at the rates applicable from time to time shall be admissible on Family Pension. (2) Re-employed pensioners (who held posts below Group A and those Ex servicemen who held posts below the ranks of commissioned officers at the time of their retirement ) will be entitled to dearness relief on their pension.
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(3) Re-employed pensioners(who held Group-A post or posts of the ranks of commissioned officers at the time of their retirement ) will not be entitled to dearness relief on pension.
POINTS OF DOUBT Who will make the payment of: i)DCRG ii)Commuted value of pension iii)Provisional pension iv)Leave encashment v)Accumulation in the CGEGIS80 & CGEIS77 vi)GPF final payment on superanuation/retirement
CLARIFICATION In respect of item no.(i) to (iii) payments will be made by the DOT Cell for the employees whether on deemed deputation or absorbed in BSNL. For item no.(iv) to (vi) payment will be made by the DOT Cell to employees who are on deemed deputation but BSNL will make payments to the employees who are absorbed in BSNL.
(DOT Lr.No.7-1/2000-TA-I/17
dt. 18/10/2000)
Central Civil Services (Pension)Rules,1972 37A. Conditions for payment of pension on absorption consequent upon conversion of a Government Department into a Central Autonomous body or a Public sector Undertaking:(1) On conversion of a department of the Central Government into a public sector
undertaking or an autonomous body, all government servants of that Department shall be transferred en-masse to that public sector undertaking or autonomous body, as the case may be, on terms of foreign service without any deputation allowance till such time as they get absorbed in the said undertaking or body, as the case may be, and such transferred government servants shall be absorbed in the public sector under taking or autonomous body, as the case may be, with effect from such date as may be notified by the government.
(2)
The central government shall allow the transferred government servants an
option to revert back to the government or to seek permanent absorption in the public sector undertaking or autonomous body, as the case may be.
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The option referred to in sub-rule(2) shall be exercised by every transferred
government servant in such manner and within such period as may be specified by the government.
(4)
The permanent absorption of the government servants as employees of the
public sector undertaking or a autonomous body shall take effect from the date on which their options are accepted by the government and on and from the date of such acceptance, such employees shall cease to be government servants and they shall be deemed to have retired from government service.
(5)
Upon absorption of government servants in the public sector undertaking or
autonomous body, the posts which they were holding in the government before such absorption shall stand abolished. (6) The employees who opt to revert to government service shall be re-deployed
through the surplus cell of the government.
(7)
The employees including quasi-permanent and temporary employees but
excluding causal labourers, who opt for permanent absorption in the public sector undertaking or autonomous body, shall on and from the date of absorption, be governed by the rules and regulations or bye laws of the public sector undertaking or autonomous body, as the case may be.
(8)
A permanent government servant who has been absorbed as an employee of a
public sector undertaking or autonomous body shall be eligible for pensionary benefits on the basis of combined service rendered by him in the government and in the public sector undertaking or autonomous body in accordance with the formula for calculation of pension/family pension under these rules as may be in force at the time of his retirement from the public sector undertaking or autonomous body, as the case may be. [ For at his option, to receive prorata retirement benefits for the service rendered under the Central Government in accordance with orders issued by the Central Government.(Dept. of P & P.W.No.4/66/2005-P&PW(D) dt. 14-10-2005)]
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EXPLANATION:- The amount of pension/family pension of the absorbed employee on superannuation from public undertaking/autonomous body shall be calculated in the same way as would be the case with a Central Government servant, retiring on superannuation, on the same day; (9) The pension of an employee under sub-rule(8) shall be calculated on the basis
of his last ten months average pay.
(10)
In addition to pension or family pension, as the case may be, the employees
shall also be eligible to dearness relief as per industrial dearness allowance pattern.
(11)
The benefits of pension and family pension shall be available to quasi-
permanent and temporary transferred government servants after they have been confirmed in the public sector undertaking or autonomous body.
(11.A)
permanent
Government
servant
absorbed
in
public
sector
undertaking/autonomous body or a temporary/quasi permanent government servant who has been confirmed in the public sector undertaking/ autonomous body subsequent to his absorption therein, shall be eligible to seek voluntary retirement after completing 10 years of qualifying service with the government and autonomous body/public sector undertaking taken together, and he/she shall be eligible for pro-rata pensionary benefits on the basis of combined qualifying service
(12)
The Central government shall create a Pension fund in the form of a trust and
the pensionary benefits of absorbed employees shall be paid out of such pension fund.
(13)
The Secretary of the administrative Ministry of the public sector undertaking
or autonomous body shall be the chairperson of the Board of Trustees which shall include representatives of the Ministries of finance, Personnel, Public grievances and Pensions, Labour, concerned public sector undertaking or autonomous body and their employees and experts in the relevant field to be nominated by the central government.
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The procedure and the manner in which pensionary benefits are to be
sanctioned and disbursed from the pension fund shall be determined by the government on the recommendation of the Board of trustees.
(15)
The government shall discharge its pensionary liability by paying in lump sum
as a one time payment to the Pension fund the pro rate pension or service gratuity and retirement gratuity for the service rendered till the date of absorption of the government servant in the public sector undertaking or autonomous body.
(16)
The manner of sharing the financial liability on account of payment of
pensionary benefits by the public sector undertaking or autonomous body shall be determined by the government.
(17)
Lump sum amount of the pro rate pension shall be determined with reference
to commutation Table laid down in central Civil services (commutation of Pension) rules,1981. (18) The public sector undertaking or autonomous body shall make pensionary
contribution to the pension fund for the period of service to be rendered by the concerned employees under that undertaking or body at the rates as may be determined by the Board of trustees so that the pension fund shall be self-supporting.
(19)
If, for any financial or operational reason, the trust is unable to discharge its
liabilities fully from the pension fund and the public sector undertaking or autonomous body is also not in apposition to meet the shortfall, the government shall be liable to meet such expenditure and such expenditure shall be debited to either the fund or to the public sector undertaking or autonomous body, as the case may be.
(20)
Payments of Pensionary benefits of the pensioners of a government
Department on the date of conversion of it into a public sector undertaking or autonomous body shall continue to be the responsibility of the government and the mechanism for sharing its liabilities on this account shall be determined by the government.
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Nothing contained in sub-rules(12) to (20) shall apply in the case of
conversion of the Departments of Telecom services and Telecom Operations into Bharat sanchar Nigam Limited, in which case the pensionary benefits including family pension shall be paid by the government. (22) For the purposes of payment of pensionary benefits including family pension
referred to in sub-rule(21), the government shall specify the arrangements and manner including the rate of pensionary contributions to be made by Bharat sanchar Nigam Limited to the government and the manner in which financial liabilities on this account shall be met.
(23)
The arrangements under sub-rule(22) shall be applicable to the existing
pensioners and to the employees who are deemed to have retired from the government service for absorption in Bharat sanchar Nigam Limited and shall not apply to the employees directly recruited by the Bharat sanchar Nigam Limited for whom it shall devise its own pension scheme and make arrangements for funding and disbursing the pensionary benefits. (24) Upon conversion of a Government department into a public sector undertaking
or autonomous body:(a) the balance of provident fund standing at the credit of the absorbed employees on the date of their absorption in the public under taking or autonomous body shall, with the consent of such undertaking or body, be transferred to the new Provident fund account of the employees in such undertaking or body, as the case may be;
(b) earned leave and half pay leave at the credit of the employees on the date of absorption shall stand transferred to such undertaking or body, as the case may be;
the dismissal or removal from service of the public sector undertaking or autonomous body of any employee after his absorption in such undertaking or body for any subsequent misconduct shall not amount to forfeiture of the retirement benefits for the service rendered under the government and in the
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event of his dismissal or removal or retrenchment the decisions of the undertaking or body shall be subject to confirmation by the Ministry administratively concerned with the undertaking or body.
(25)
In case the government disinvests its equity in any public sector undertaking
or autonomous body to the extent of fifty-one percent or more, it shall specify adequate safeguards for protecting the interests of the absorbed employees of such public sector undertaking or autonomous body. (26) The safeguards specified under sub-rule(25) shall include option for voluntary
retirement or continued service in the undertaking or body, as the case may be, or voluntary retirement benefits on terms applicable to government employees or employees of the public sector undertaking or autonomous body as per option of the employees, assured payment of earned pensionary benefits with relaxation in period of qualifying service, as may be decided by the government. [(Department of Pen. and PW) (The Gazette of India-Extraordinary) No.4/61/99-P&PW(D) dt. 30-9-2000 & No.4/61/99-P&PW(D) dt. 28-122002]S.O.1821(E). In exercise of the powers conferred by the proviso to article 309 and clause (5) of Article 148 of the constitution and after consultation with the Comptroller and Auditor General of India in relation to persons serving in the Indian Audit and Accounts Department and in supersession of the notification number S. O. 1487(E) dated 14th October, 2005 except things done or omitted to be done before such supersession, the President herby makes the following rules further to amend the Central Civil Services (Pension) Rules, 1972, namely:1. (1) These rules may be called the Central Civil Services (Pension) (2) They shall be deemed to have come into force from the 30th day of September, 2000 i.e. date from which provision of pro-rata pension was withdrawn.
(Amendment) Rules, 2007.
2.
In the Central Civil Services (Pension) Rules 1972, in rule 37A, for sub-
rule(8), the following sub rule shall be substituted namely:-
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A permanent Government servant who has been absorbed as an employee of a public sector undertaking or autonomous body shall be eligible for pensionary benefits on the basis of combined service rendered by him in the Government and in the public sector undertaking or autonomous body in accordance with the formula for calculation of pension/family pension under these rules as may be in force at the time of his retirement from the public sector undertaking or autonomous body, as the case may be or at his option to receive pro-rata retirement benefits for the service rendered under the Central Government in accordance with the orders issued by the Central Government.
Explanation:- The amount of pension/ family pension of the absorbed employee on superannuation from Public Sector Undertaking/Autonomous Body shall be calculated in the same way as would be the case with a Central Government servant retiring on superannuaion, on the same day.
Explanatory memorandum Option to draw pro-rata monthly pension available to the Government servants who were transferred and absorbed in Public Sector Undertakings or autonomous Bodies set up consequent upon conversion of a Government Department under Department of Pension and Pensioners Welfares O.M.No.41/18/87-P & PW (D) dated 5-7-1989 was withdrawn w. e .f. 30-9-2000 vide Notification No. S.O. 904(E) dated 30-9-2000. The same provision was restored through Notification No. S. O. 1487(E) dated 14-102005 w. e. f. 14-10-2005. The same provision has been restored through this notification w. e. f. 30-9-2000. This is certified that no one shall be adversely affected by giving retrospective effect to this notification. (Dept. Pen. &PW Notification F.No.4/66/2005-P& PW (D) dated 25-10-2007)
Applicability of revised rules of CCS (Pension )Rules 1972 consequent to the 6 th CPC to the Government employees absorbed in BSNL Clarification -reg I am directed to refer to this Departments letter of even number dated 4th/ 15th May, 2009 to give the following clarification on the applicability of revised rules of CCS (Pension) Rules, 1972 consequent to 6th CPC to the Government employees absorbed
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in BSNL with regard to emoluments, qualifying service, family pension, DCRG and commutation of pension:-
Pension 1.Emoluments: The emoluments for the purpose of all pensionary benefits (other than gratuity) shall be equal to Basic pay plus Dearness Pay (wherever applicable). The para 5.2 and 5.3 of DOP & PW shall be applicable from 1-1-2006 subject to provisions of para 2 of DOP & PWs OM no.38/37/08-P&PW(A) dated 11-12-2008. 2. Qualifying Service: The revised rules shall be applicable from 2-9-2008
3. Minimum Pension: The present method of calculation of minimum pension which is 50% of the minimum of the lowest pay scale shall continue. 4. Minimum Family Pension: The minimum family pension shall be 50% (should be 30%) of the minimum of the lowest pay scale
DCRG 1. Emoluments: Emoluments for the purpose of all types of gratuities shall be equal to Basic Pay plus Dearness Pay (Wherever applicable) plus IDA (as applicable) 2. Enhancement in maximum limit of DCRG: The enhanced limit for all kinds of gratuities may be made applicable from 1-1-2006
Commutation of Pension 1. For those retiring between 1-1-2006 to 1-9-2008 (both inclusive):
Cases have not become absolute as on 2-9-2008: New table shall be made applicable with prevalent pay scale as on date of retirement Cases which have already become absolute: The additional amount of commutable pension due to revision of pay shall be commuted in accordance with new table. 2. For those retiring on or after 2-9-2008: New commutation table shall apply with prevalent pay scale as on date of retirement This issues with the approval of the competent authority (DOT Lr. No.40-31/2008-Pen(T) dt. 12-8-2009)
Pension Liability for Bharat Sanchar Nigam Ltd. (BSNL) towards pensionary benefits including Family Pension to its employees
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Reference this Departments letter No.1045/2003-B dated 15th June, 2006 on the above noted subject conveying the following position:(i) Annual pension liability of the Government in respect of employees who retired prior to 1-10-2000 and those who have worked/ are working in BSNL on deemed deputation and those who are absorbed in BSNL shall not exceed 60% of the receipt to the Government on the following items:(a)Dividend income from MTNL/BSNL (b)Licence fee from MTNL/BSNL corporate Tax/Excise Duty/Service Tax paid by BSNL (ii) (iii) Any amount exceeding (i) shall be borne by BSNL Pensionary contribution from BSNL would be made to Government as per FR-116 (iv) Employees recruited directly by BSNL on or after 1-10-2000 shall not be covered under this section 2. In this context, it is hereby clarified that the above said limit of 60% is for
normal funding. This does not in any way distract from the fact that the ultimate liability towards pensionary benefits including family pension to the BSNL employees (excepting those recruited after 1-10-2000), as per sub-rule 21 of Rule 37A of CCS (Pension) Rules, 1972, lies with the Government of India. If BSNL, for any reason, is not able to contribute to the extent prescribed in para 1 above, the Government of India will still pay the admissible pensionary benefits including family Pension to BSNL employees (excepting those recruited after 1-10-2000) (DOT No.40-12/2007-Pen.(T) dt. 5-1-2009)
Sub : Payment of gratuity as per provisions of BSNL Employees' Gratuity Trust Rules.
1. as its
Bharat Sanchar Nigam Limited on its formation has appointed many persons
employees on or after 01.10.2000. In addition, BSNL has regularized many persons who were working in DOT/DTS/DTO and not having temporary status as on 30.09.2000, as its employees on or after 1.10.2000. The above-mentioned employees
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hereinafter called as directly recruited employees are covered by EPF Act & EPF Rules 1952 regarding their provident fund and other related benefits etc. As per the Payment of Gratuity Act 1972 above-mentioned directly recruited
2.
employees are eligible to get death-cum-retirement gratuity. In order to comply with the provisions of the Payment of Gratuity Act 1972, BSNL has framed BSNL Employees Gratuity Rules for its directly recruited employees. The Board of Directors of BSNL in its 108th Meeting has approved BSNL Employees Gratuity Rules. BSNL Employees Gratuity Rules are applicable to its directly recruited
3.
employees as mentioned in Para 1 above. This Gratuity Rules will also be applicable to persons who will be appointed in future.
4.
BSNL Employees Gratuity Rules will not be applicable to the employees of
the Department of Telecommunications and erstwhile Department of Telecom Services & Department of Telecom Operation who have already been absorbed and / or will be absorbed in future in BSNL through Presidential Order issued by the Department of Telecommunications / to be issued in future by the competent authority and who are covered by Rule 50 of CCS (Pension) Rules 1972 read with Rules 37A of CCS (Pension) Rules 1972 and accordingly pension contributions are paid by BSNL to CCA on their account so that pension and death cum- retirement gratuity are paid by the Govt. of India to such employees.
5.
BSNL Management have also extended the benefit of gratuity as per BSNL
Employees Gratuity Trust Rules to following categories of employees or nominees of such employees. (a) Casual labourers / Mazdoors not having temporary status, who were regularized by BSNL on or after 01.10.2000, retired or died in harness & governed by the order No. 500-85/CA II/BSNL/EPF/Vol. III dt. 10.05.2007, 25.05.2007 & 21.06.2007 and not paid pensionary and other retirement benefits including death-cum-retirement gratuity by Department of
Telecommunication
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(b) Persons who were appointed by BSNL on compassionate ground on or after 1.10.2000 and governed by the order No. 500-85/CA II/BSNL/EPF/Vol. III dt. 10.05.2007, 25.05.2007 & 21.06.2007 and not paid pensionary and other retirement benefits including death-cum-retirement gratuity by Department of Telecommunication
6.
The copy of BSNL Employees Gratuity Rules is enclosed. Various eligibility criteria i.e. conditions for grant of gratuity to the directly
7.
recruited employees have been given in Para 1, 22, 23, 24, 25, 26, 28 & 29 of BSNL Employees Gratuity Trust Rules. The salient features of BSNL Employees Gratuity Rules are as follows: a) To be eligible for getting the gratuity benefit the employees as mentioned in Para 1 & 5 above, must have completed 5 (five) years continuous service before their retirement on superannuation / resignation / retirement / termination / permanent incapacity due to bodily or mental infirmity b) Retirement means termination of the service of any employee otherwise than on superannuation c) Continuous Service means uninterrupted service and includes service, which is interrupted by sickness, accident, leave, lay-off or lockout, or cessation of work not caused due to any fault of the employee concerned. d) In case of death i.e. died in harness and disablement the condition of completion of the 5 (five) years continuous service is not applicable. In such case the amount of gratuity will be paid to nominee(s) of the employee and in the absence of nomination to the legal heir(s) of the employee e) In case of termination on account of misconduct, insolvency or inefficiency the employee is not eligible for getting the gratuity f) In case the employee is terminated from service for riotous or disorderly conduct or any other act of violence on his part or for any act, which constitutes an offence involving moral turpitude provided such offence, is committed by him in the course of his employment, the amount of gratuity may be wholly or partly forfeited.
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g) In case the employee is terminated from service for any act, willful omission ornegligence causing any damage or loss or destruction of property belonging to BSNL, the amount of gratuity to the extent of the damage or loss so caused, shall be forfeited. h) The amount of gratuity payable will be equal to fifteen days salary for each completed year of service subject to a maximum of Rs. 3.5 lakh (Rupees three lakh fifty thousand) i) Fifteen days wages / salary shall be calculated by dividing the monthly rate of wages /salary last drawn by him, by twenty-six and multiplying the quotient by fifteen. j) Salary / wages for the purpose of calculation of gratuity means the sum paid by BSNL to the employee as basic salary / wages i.e. basic pay together with any dearness allowance and it shall not include commission, HRA, PLI, overtime and other allowance & perquisite etc. k) Any part of service period of six months or more, after completion of the initial period of 5 years is to be treated as one year. However, all the
concerned authority of Circle / SSA / Civil & Electrical Division /Maintenance & Project areas / other must scrupulously observe and follow the various provisions of BSNL Employees Gratuity Trust Rules before allowing the gratuity benefit to the eligible employees as mentioned above.
8.
In case of eligible employees as per BSNL Employees Gratuity Trust Rules
theconcerned Head of Circle / SSA / Civil & Electrical Division / Maintenance & Project Area / Other Administrative Units shall sanction the amount of gratuity amount payable to such employees as permissible under BSNL Employees Gratuity Trust Rules and account for the expenditure to accode for Gratuity under respective Remuneration Schedule.
8.1
In case the superannuation / resignation / retirement / termination / death /
permanent incapacity due to bodily or mental infirmity of the directly recruited employees, has taken place up to 31.03.2008 and in case of employees mentioned in Para 5 above necessary liability for gratuity amount payable to such employees as permissible under BSNL Employees Gratuity Trust Rules shall be created in the
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accounts of 2007-08 positively by debiting the expenditure to accode for Gratuity under respective Remuneration Schedule and crediting the amount to liability accode under 119 / 419 schedule. All such liabilities on account of retirement-cumdeath gratuity must be paid to the employees / nominees of employees / legal heirs of employees within 30 days from the date of issue of this order. (BSNL HQ No. No. 500-50/2007-08/CA II/BSNL Dated 15th May 2008)
Sub: Nomination in respect of BSNL directly recruited Employees covered under BSNL Employees Gratuity Trust Rule.
Ref: This office letter No. 500-50/2007-08/CA II/BSNL dt. 15.05.2008 (Circular No. 135) Please refer to Para 37 of BSNL Employees Gratuity Trust Rules regarding nomination in respect of death-cum-retirement gratuity to be submitted in the prescribed form by the directly recruited employees of BSNL as mentioned in Para 2 of the letter under reference. Copies of Nomination Form i.e. Form F, Form G & Form H in respect of gratuity are enclosed. Nomination in Form F for death-cum-retirement gratuity shall be obtained from all the directly recruited employees who are eligible for getting gratuity as per BSNL Employees Gratuity Trust Rules, which has been circulated through letter under reference. Nomination in Form G shall be obtained from the concerned directly recruited employees as per terms &conditions mentioned in Sub Para (D) of Para 37 of BSNL Employees Gratuity Trust Rules. The directly recruited employees may modify their nomination and in such case they will submit modification particulars in Form H. Nomination Form for death-cum-retirement gratuity submitted by the directly recruited employees shall be countersigned by the concerned Head of the Circle / SSA / Civil & Electrical Division / Maintenance & Project Area / Other Administrative Units or by an officer nominated who is not below rank of SDE or equivalent rank. Such counter-signed nomination form shall be pasted in the Service Book of the concerned directly recruited employees
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In respect of all the existing directly recruited employees the process of obtaining nomination form in prescribed form, countersigning and keeping the same in Service Book shall be completed within one month from date of this letter. (BSNL HQ No. 500-50/2007-08/CA II/BSNL Dated 19th May 2008)
Introduction of BSNL GSLI Scheme w.e.f. 20-8-2005, in replacement of CGEGIS for all ex-DOT/DTS/DTO employees absorbed in BSNL and also the employees directly recruited by BSNL
This in connection with a new Group Saving Linked Insurance Scheme drawn-up for BSNL employees. All the ex-DOT employees, while on deemed deputation to BSNL, were covered by Central government Employees Group Insurance Scheme (CGEGIS) of the government of India. As a matter of Policy, PSU employees can not be members of CGEGIS and therefore BSNL has decided to cover BSNL employees under a Group Savings Linked Insurance Scheme from Life Insurance corporation of India w.e.f. 20th august, 2005 (deduction towards premium to be made from the salary of July, 2005). Detailed rules and Procedures of the Scheme have since been worked out, a copy there of is enclosed. Salient features of the Scheme are as follows: (i) The scheme is compulsory for all employees of BSNL. Thus it will cover
all the ex-DOT employees who have been absorbed into BSNL so far and all the directly recruited employees of BSNL. All future employees of BSNL whether directly recruited or absorbed from government shall become members of the scheme as per rules & Procedure of the scheme. (ii) The D.D.Os of all BSNL units will have to ensure that no deduction
towards erstwhile CGEGI scheme is made from the employees from the salaries for the month of August, 2005, onwards. The amount deductible towards BSNL Group Savings Linked Insurance Scheme as per enclosed Rules shall commence from the salary for the month of July 2005. the details of head of account, transaction process/procedure between DDO & LIC will be communicated by finance Wing of Corporate Office. There will be deduction towards CGEGIS equivalent as well as deductions as per new scheme from July 2005 salary.
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Every directly recruited employee of BSNL will be required to nominate a
Beneficiary in the prescribed Form-I as per rule 12 of the BSNL GSLI Scheme. (iv) The Master Record in form-II of the employees admitted as Members of
the above Scheme (ex DOT absorbed BSNL employees as well as directly recruited BSNL employees ) duly verified by D.D.Os concerned is required to be positively sent in soft as well as hard copy form by 16th of August 2005, by each DDO to his designated P&GS unit of LIC as per enclosed list. (v) Each DDO will also ensure sending of Monthly Return in Form-III
indicating additions/Deletions of Members to his designated P&GS unit of LIC as per procedure prescribed in Rule 18. (vi) Heads of Circles/SSA/Field Units may kindly ensure that duties and
responsibilities of D.D.Os in regard to implementation of the scheme as detailed in Rule & Procedures of the Scheme are meticulously carried out by them. (vii) The DDOs will transact/deal with their designated P&GS unit of LIC as
per the location of DDO and not as per location of his circle HQ. For example, a DDO of Northern Telecom Project Circle located in Jallandhar (Punjab) will deal with LIC of India, P&GS Department, Divisional office, chandigarh, Jeevan Prakash, Post Box 42, Sector 17-B, chandigary-160017 for all type of transactions in connection with this LIC based Group Insurance Scheme. 2. Kindly nominate a Nodal Officer in your circle who will ensure that all the required action items are met within deadlines so that the employees are covered under BSNL GSLI Scheme w.e.f. 20th August 2005. 3. Kindly ensure supervision of this work in respect of your circle, so that BSNL GSLI Scheme 2005 of Life Insurance corporation of India is implemented smoothly. Any clarification in connection with this scheme may be addressed to Jt. DDG (CA) BSNL corporate Office, New Delhi.
BSNL GROUP SAVINGS LINKED INSURANCE SCHEME 2005

Rules 1. 1.1 DEFINITIONS: In these rules, where the context so admits, the masculine shall include the feminine, the singular shall include the plural and the following words and
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expressions shall, unless repugnant to the context, have the following meanings:(i) COMPANY shall mean the BHARAT SANCHAR NIGAM LIMITED inclusive of all its units located anywhere in India or abroad. Registered and corporate Office of the company is located at B-148 statesman House 10th floor, Barakhamba road, New Delhi-110001. (ii) EMPLOYER shall mean BHARAT SANCHAR NIGAM LIMITED and any other Company, firm or Corporation which may in future be managed or controlled by or become associated with the BSNL and which may agree to become bound by these rules and terms and conditions thereof. (iii) CORPORATION shall mean the Life Insurance Corporation of India established under Section 3 of the Life Insurance Corporation Act, 1956. (iv) (v) SCHEME shall mean BSNL GSLI Scheme 2005. RULES shall mean the rules of the Scheme as set out below and as amended from time to time. (vi) MEMBER shall mean the particular employee of the employer who has been admitted to the membership of the scheme and on whose life an Assurance has been or is to be effected in accordance with these Rules and terms and conditions thereof as in force from time to time. (vii) COMMENCEMENT DATE shall men the 20th of August 2005, the date from which the Scheme commences. (viii) ENTRY DATE shall mean: (a) In relation to the original members admitted to the Scheme on the date of commencement, the said date of commencement; (b) In relation to new members of Group A or other transferred from Central Govt. who are to be admitted to the Scheme after the commencement date, 20th of the month following the month in which deduction of premium is made from the salary. (c) In relation to new members directly recruited by the Employer, 20th of the month following the month in which deduction of premium is made from the salary.
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ANNUAL RENEWAL DATE shall mean in relation to the Scheme the 20th day of August 2006 and the 20th day of August in each subsequent year. TERMINAL DATE shall mean in respect of a Member the date on which he completes the age of retirement on Superannuation, which currently is 60 years OR any earlier date of cessation of service on account of voluntary/premature retirement, resignation, termination, death etc. the ASSURANCE shall mean the Assurance to be effected on the life of the Member. THE RUNNING ACCOUNT shall mean the account to be maintained by the Corporation in favour of the Employer to which will be credited the premium remaining in respect of the Members after utilizing such part as is required to provide Life Insurance Benefit, as elaborated in rule 7 and notes there under.
(x)
(xi)
(xii)
(xiii) SERVICE shall mean the period of continuous service rendered by the Member as an employee of the employer reckoned from the date on which he enters the Scheme to the Terminal Date. For the purpose of the Scheme, Service shall include a period of authorized leave. (xiv) THE BENEFICIARY shall mean in relation of a Member, the person or persons who has/have appointed by him in terms of these rules to receive the benefits under the Scheme in the event of his death while being insured. (xv) D.D.O. shall mean Accounts Officer or any other Officer of the Accounts Dept. of BSNL (including Circles/SSAs/Field Units) notified as D.D.O. (Drawing and Disbursing Officer) to discharge the functions of drawal and disbursal of Salary/Wages in respect of employees under his jurisdiction for the said purpose.
2.
The Employer will act for and on behalf of the Members in all matters relating to the Scheme and every act done by, agreement made with and notice given to the Corporation shall be binding on the Members.
3.
Comencement date:
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The Scheme commences and the Rules shall take effect from 20th August 2005
4.
Eligibility (a) All BSNL Employees aged not less than 18 years and not more than 60 years and are as per the following categorization shall be eligible to join Scheme. Category I Group
Executives (IDA Pay scale of Rs.14500-350-18700 and beyond)
II Executives (IDA Pay scale up to Rs.13000-350-18250) III Non Executives
(b)
The existing employees as per above categorization shall join the Scheme from the date of commencement of the Scheme (i.e. 20th August, 2005)
NOTE: The existing employees shall mean the BSNL employees who are on roles of the Employer as on the commencement Date. It shall be the condition of service that existing employees who are within the above category and all future employees shall compulsorily join the Scheme on the relevant Entry Dates as soon as they satisfy the conditions of eligibility. No member shall withdraw from the Scheme while he is still an eligible employee satisfying the conditions of eligibility described above. On promotion from Non-Executive to Executive or promotion from Category II to Category I within Executive Categories the promoted employee will be obliged to contribute for the enhanced Insurance Cover at the monthly contribution/premiums shown in the table below Rule Rule 7(i) of these Rules and will be entitled to benefits of the enhanced category from the 20th of the month following the month in which deduction of premium is made from the salary.
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For consideration of the above categorization, those employees who are working on officiating/adhoc promotion basis for more than 365 days in higher category pay scale will, for Group Insurance Scheme deduction/membership purpose, belong to that category.
For those employees who are promoted on adhoc basis or given promotion on officiating basis shall continue to belong to their previous category but will move over to their higher category for Group Insurance deduction purposes as soon as they complete 365 days in their new category. However, the enhanced category deduction will start only on the next annual renewal date. Note for (f) & (g) an employee promoted to higher post/pay scale on local officiating/short term arrangement for a period not exceeding 180 days, shall continue to remain in the same category of BSNL GSLI Scheme to which he/she belonged immediately before his/her such promotion.
5.
Evidence of age: The Date of Birth as entered/available in the Service Book of the employee concerned will be taken as evidence of age of the employee concerned.
6. Evidence of insurability: Existing Employees of the Employer, will be deemed to have fulfilled requirement of insurability. In respect of directly recruited Employees of the Employer, medical fitness taken at the time of their entry into the service of the employer will be deemed to have fulfilled requirement of evidence of their insurability.
7. Contribution (i) Every member shall pay a monthly contribution according to his category at the rate as under. The contribution shall commence on the Entry Date and continue until the Terminal Date or otherwise as specified in these Rules.
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Category
Group
Monthly contribution/ Premium (Rs.)
Sum Assured (Rs.) 5,00,000
Executives (IDA Pay scale of Rs.14500350-18700 and beyond)
525
II
Executives (IDA Pay scale up to Rs.13000-350-18250) Non-executives in Group C & D
315
3,00,000
III
105
1,00,000
(ii) The employer shall deduct the contribution in respect of all the Members from their salaries and remit the same in full to the Corporation for providing benefits in accordance with these Rules.
A part of the contribution as may be fixed by the Corporation from year to year, expressed as a uniform average amount per member shall be utilized to provide for each member Life Assurance benefit as mentioned in Rule 8 (i). In case of non executive employees in Category III out of monthly contribution of Rs.105/-, Rs.30/will be towards Life cover, Rs.70/- towards savings fund and Rs.5/- towards double accident benefit. In case of executive in Category II, Rs.90/- will be towards life cover, Rs.210/- will be towards savings fund and rs.15/- will be towards double accident benefit. For executives in Category I, Rs.150/- will be towards life cover, Rs.350/- towards savings fund and Rs.25/- towards accident benefit. The life assurance benefit will become payable upon the death of the member whilst being insured under the Scheme. For this purpose, the Employer shall effect Assurances under the one Year Renewable Term assurance plan with the corporation. The balance of the contribution will be credited to a Running account to be maintained by the Corporation in favour of the employer for providing the benefits described in rule 8(ii) to the Members. The corporation shall allow interest on the balance in the running Account at the rates declared every year. The amount credited towards accident benefit will be utilized for providing accident benefit in case of death due to accident.
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The apportionment ratio of 70:35, towards savings and risk (including DAB)
of the monthly contribution, agreed for the present can change depending upon the death experience in the last three years. This ratio is subject to review by LIC every three years, if the claim outgo falls below 80% or goes above 120%. 2. The Savings Fund will be allowed interest by LIC as declared from time to
time, which is 8% at present. 3. The increase in cover towards Life assurance benefits for the existing members placed on higher category due to promotion shall be from the 20th of the month following month in which increased contribution is deducted from salary. 4. A monthly return regarding (a) additions on account of fresh entrants (b) Deletions on account of cessation of service for any reason defined as Terminal Date under Rule 1(x) above, will be sent to specified offices of the corporation on monthly basis by the D.D.O. of the Circles.
8. (i)
Benefits: On death of the member before the Terminal Date the Life Assurance benefit, category-wise as under, together with the amount to the credit of the member in the Running Account as on the date of his death, determined in the manner referred to in Rule 8(ii) below shall become payable to the Beneficiary.
Category I II III
Sum Assured (Rs.) 5,00,000/3,00,000/1,00,000/-
(ii)
On reaching Terminal Date or on earlier cessation of service other than death, the total amount to the credit of the member in the Running Account as shall be determined by the Corporation having regard to the Entry Date, the amounts credited to the Running Account from time to time, together with interest on the date of exit shall become payable to member.
9. Accident benefit:
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If death of a member occurs directly from injuries caused by an accident by outward, violent and visible means within 120 days of its occurrence solely, directly and independently of all other causes, the corporation shall pay an additional Sum equal to the Sum assured as described in 8(i) of the rules in respect of a member.
10. Termination of membership:
10.1 The membership of the scheme in respect of a member shall terminate upon the happening of any of the following events: (a) (b) (c) Member ceasing to be in the service of the Employer Member reaching the Terminal Date. Termination of the Scheme.
10.2 Upon termination of the Membership, the Life assurance benefit of the member shall cease forthwith and the amount at his credit in the Running Acco7nt as determined in Rule 8(ii) shall become payable.
11. Master policy: 11.1 The corporation will issue Master Policy to the Employer incorporating the terms and conditions under which the benefits are assured.
12. Settlement of claim: In case of exit of employee by way of Resignation/Retirement/Death, the claim amount will be settled by the Corporation in favour of the Member or Beneficiary, appointed in Form I. In respect of existing employees, the nominations for CGEGIS will be deemed to have been accepted as beneficiary (s) for this Scheme.
13. Amendment or discontinuance of scheme: 13.1 The Employer may discontinue the Scheme or amend the terms and condition thereof at any time on any Renewal Date subject to 3 months previous notice being given to the members and the Corporation and the discontinuance shall be effective from the 20th of the month c0-incident with or following the expiry of the notice period.
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13.2 The corporation reserves a similar right by giving 3 months notice to the Employer.
14. Jurisdiction 14.1 ALL Assurances issued under the Scheme shall be governed by Indian Laws. They will be subject to Indian Laws including the Indian Insurance Act, 1938 as amended, Indian Estate Duty Act 1956, the Income Tax Act, 1961 and to any legislation subsequently introduced and shall be subject to the jurisdiction of law courts at New Delhi.
Procedures 15. Admission of employees as members of the scheme: 15.1 All D.D.Os will ensure to make entry to the effect of the employees joining the scheme in the Service Book of the Employee concerned. 15.2 D.D.O will also ensure to obtain prescribed form-I from each directly recruited BSNL employee in regard to Appointment of beneficiary/Beneficiaries as provided in Rule 12 above. This form should be obtained in duplicate. DDOs will ensure to paste this form in the Service Book of the employees. 15.3 All D.D.Os concerned will get the Employees Data compiled in Master Record (Form II) (Copy annexed), in respect of all Employees admitted as Members of Scheme. DDOs will then get the Data contained in the aforesaid Master Record (form II) in a floppy which should be sent along with the hard copies of his unit to the Servicing P&GS Unit OF LIC positively by 16-8-05. This will be a one-time exercise at the commencement of the Scheme.
16. Deduction of monthly contribution/premium from the salary of the employees 16.1 From the salary of July, 2005 onwards, the contribution of the employees on the LIC Group Insurance Scheme rate (shown in rule 7(i) above) will be deducted under this BSNL GSLI Scheme of LIC. Following actions are required to be taken by D.D.O s concerned to implement above provisions:(i) All D.D.Os to ensure that monthly contribution of all the concerned Employees towards BSNL GSLI Scheme is deducted at the rates prescribed in Rule 7(i)
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above, from the monthly salary of the Employees commencing from salary month of July, 2005 onwards. The contribution is to be deducted without any break, even including for period of leave/dies-non/suspension etc. till terminal date. The amount so deducted is to be sent to the designated LIC P& GS office of his State so as not to reach the designated LIC P & GS later than 10th of every month. In the first month the cheque will go with Master Record (form II) and subsequent months along with additions/deletion (Form III)
Illustration (1) The Premium for the month of July, 2005 to be remitted to LIC by 10-8-2005 will be based on the Master record of BSNL DDO (Form II) sent to LIC vide rule 15.3 above. (2) Next monthly premium of August should be payable by 10th September 2005 and so on and so forth will be based on the Master Record already furnished to LIC (subject to corrections, if any) and the additions/deletions as may be reported in Monthly return (form III) by the respective DDO as per procedure narrated in rule 18 below.
17. Maintaining of register containing records of members 17.1 All D.D.Os will maintain a Register of the Employees admitted as Members of the BSNL GLSI Scheme. The Master record (Form II) will be treated as Regis ter of Members, which will be updated based on Monthly return of Additions/Deletions (form III). Employee Number shall mean the Number assigned to each Employee based on which his salary/wage is drawn.
18. Monthly return of additions/deletions in the membership of the scheme 18.1 All D.D.Os will ensure to send to designated LIC P&GS Unit a Monthly return of Additions/Deletions in the membership of the Scheme, as per provisions contained in rule 7 (iv) in the prescribed proforma (Form III) mentioned therein positively by 10th of the month along with that months premium cheque.
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19. Claiming of benefits from LIC 19.1 to enable BSNL to seek reimbursement of claims/benefits as envisaged in rule 8 above on the termination of membership of the Employees for the reasons mentioned in rule 10 above, the following detailed procedure is prescribed for compliance by all concerned. 19.2 All D.D.Os shall furnish claims in the prescribed form-IV (Copy annexed) upon termination of the membership of the employees on happening of any of the following events:(a) Member ceasing to be in the service of the Employer (BSNL) (b) Member reaching the Terminal Date 19.2.1 The aforesaid claims in form-IV will be forwarded by the D.D.Os to the respective LIC P& GS Unit by 15th of the said month for seeking reimbursement of the claims 19.2.2 Upon the receipt of reimbursement of claims from DDO, LIC P& GS Unit will immediately release payment by Account Pay Cheque/DD in favour of concerned Employee/Beneficiary 19.2.2.1 The LIC P&GS unit will send the DD/Cheque at par drawn in favour of the member/beneficiary to the concerned DDO, who will immediately acknowledge its receipt to LIC and simultaneously forward the same to the member/beneficiary. The final receipt should be obtained from the member/beneficiary and sent to concerned LIC P&GS unit.
20. No member shall be granted any loan under this Scheme/policy.\
21. Restraining an anticipation or encumberance: 21.1 The benefits under the Scheme are strictly personal and cannot be assigned, charged or alienated in any way.
22. Amendments/modifications in the rules/procedures 22.1.1 CMD BSNL is empowered to carry out any amendment/modification in the aforesaid rules/Procedures (in consultation with Employees/LIC, wherever it is so
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considered necessary), within the provisions of the Master Policy obtained by BSNL under Group Savings Linked Insurance Scheme of LIC. 22.1.2 Director (HRD) BSNL or any Officer so authorized by him, is empowered for issuance of any clarification to any of the provisions of the above Scheme, including interpretation thereof. (BSNL HQ No.8-1/2002-Restrg(pt.) dt. 1-7-2005)
Sub: Accounting procedure for BSNL GSLI Scheme Ref: Letter No. 8-1/2002-Restrg (Pt.) dt. 1.7.2005 issued by DDG (Restructuring) The accounting procedures as mentioned below shall be followed in respect of BSNL GSLI Scheme (a) The following accodes are allotted for accounting the recovery of monthly
premium from the eligible employees:
1190210 - BSNL GSLI Scheme - 2005 L - 40 4190210 - BSNL GSLI Scheme 2005 L - 40
The monthly recovery shall be credited to above-mentioned accode and while remitting the monthly premium so recovered, to the designated LIC P&GS Units/Offices the above-mentioned accode shall be debited and bank account be credited. The payment of monthly premium must reach the designated LIC P&GS Units/offices on or before 10th of the month following the month of recovery. All DDO must ensure that the cheque/draft is sent on or before 8th of the month by Speed Post to the designated LIC P&GS unit/office so that it reaches positively by 10th of the month.
(b)
As per Rule 16.1 (i) of BSNL Group Savings Linked Insurance Scheme - 2005
the contribution is to be recovered from each eligible employee without any break, even including for period of leave/dies-non/suspension etc. till terminal date (refer Rule 1.1 (x) and Rule 10 of BSNL GSLI Scheme for termination of membership). In case the amount of monthly salaries (here the 'amount of monthly salaries' means the
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total monthly salary minus the statutory compulsory minimum deduction towards GPF/EPF and other statutory dues such as Income Tax, Education cess, court attachment which can't be postponed to further periods) payable to an employee during a month isn't sufficient to recover the monthly premium of BSNL GSLI Scheme, the amount of shortfall towards monthly premium shall be paid by BSNL from its own fund and the said amount of shortfall towards monthly premium shall be treated as non-interest bearing advance given to the said employee. Such advance is given in order to continue the insurance policy and this may be treated as a welfare benefit extended by BSNL to its employees. The amount of such advance shall be booked/debited to accode mentioned below. Such advance shall be noted in the Retrenchment Register and recovered from next month's salary or any other dues payable to employees i.e. TA/LTC claim bill, transfer TA claim bill etc. If any amount of such advance, which remains pending to be recovered at the time retirement/termination of service etc. may be recovered from the leave encashment payment/gratuity payment/GPF final payment. 1180211 - Advance for payment of contribution towards BSNL GSLI Scheme 23 4180211 - Advance for payment of contribution towards BSNL GSLI Scheme 23 KK-
The recovery of advance shall be credited to above-mentioned accodes.
(c)
As per order referred above recovery of premium towards BSNL GSLI
Scheme will start from the Salary of July 2005, however the BSNL GSLI Scheme will commence from 20.08.2005. The recovery towards CGEGIS/CGEIS shall also be made from the salary of July 2005, however the recovery towards CGEGIS/CGEIS shall be stopped from the salary of August 2005. Therefore, in the month of July 2005 the contribution of Rs. 105/-, Rs.315/- and Rs. 525/- shall be deducted for BSNL GSLI Scheme in addition to the existing deduction of Rs. 30/-, Rs.60/- and Rs.120/as applicable to CGEGIS. However, the deduction of contribution of Rs.30/-, Rs.60/and Rs.120/- will be stopped from August 2005 onwards due to discontinuation of CGEGIS/CGEIS.
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Copy of the order under reference and rules of BSNL Group Savings Linked
Insurance Scheme - 2005 are available in the Intranet (under Director HRD Restructuring Cell). All the Heads of units may kindly be instructed so that BSNL GSLI Scheme is implemented in the month of July 2005 positively and close coordination shall be created by involving the concerned officials of Administration and Finance Branches for smooth time bound implementation of the Scheme. (e) The date of commencement of the scheme as mentioned in column 3 of Form
II (Rule 15.3 of BSNL Group Savings Linked Insurance Scheme - 2005) may kindly be read as '20.08.2005' instead of '20.06.2005'. All the Circle Heads may kindly submit a status report regarding successful implementation of BSNL GSLI Scheme by 20th August 2005 to Corporate Accounts Section for perusal of CMD BSNL. (BSNL HQ No. No. 500-31/2005-06/CA I/BSNL Dated 7th July, 2005)
Kindly refer to this office letter no.500-31/2005-06/CAI/BSNL dated 7-72005. In this connection it is further intimated that P&GS Deptt., Central Office, Mumbai, LIC has given consent to settle claims by DD/Cheque payable at par to the claimants i.e. no bank commission charges will be deducted on encashment of cheque at the time of settlement of claims. It is further decided to remit the monthly GSLI premium to LIC by demand Draft where the designated P&GS office is not located at the same station. In view of above it is requested to instruct all the DDOs under your control to remit the monthly GSLI premium by Demand Draft to the concerned designated P&GS offices that are situated outstation. The bank charges for preparation of Demand Draft will be borne by LIC. Accordingly the net amount of premium will be remitted after deducting the commission charges from the total payable amount. However as a good gesture, the concessional rates for preparation of Demand Draft may be availed from the concerned banks where the BSNL, Corporate office has already made agreement with them. (BSNL HQ No.500-57/2001/CA-II/BSNL, dt. 28-9-2005)
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Sl.No. 1 Point of doubt Since the commencement date is 20th August, 2005, it is felt that no recovery need be made from the salary of July 205 in respect of employees retiring on 31-7-2005 2 Since premium for a particular month is recovered from the salary of previous month to be remitted to LIC before 10th of the month, it is felt that the recovery of premium from the salary of the month in which the employee is retiring need not be recovered 3 It is presumed that offg. Promotion for a period not exceeding 180 days followed by reversion and then repromotion, the employee will continue in the previous category; in other words the employee not completed 365 days continuously will not be eligible switch over to higher category. Clarification
Rev. Date: 15-03-2011
No recovery is to made from the salary of July, 2005 of the official retiring on 31-72005
No recovery of premium towards BSNL GSLI scheme is to be made from the salary of the month in which the official is retiring
Yes, the point has already been clarified through note under para 4(g) of BSNL GSLI Scheme, 2005 enclosed to letter No.8-1/2002-Restrg(part) dt. 1-7-05. The note under para 4(g) should be read along with para 4(g)
(BSNL HQ No.500-57/2005/CA II
DT. 21-7-2005)
Sl. No. 1
Point of Doubt
Clarification
Whether premium has to be paid for the officials who are absent for a long period and for whom no pay is drawn
Premium has to be paid for all eligible employees without any break including the period of leave/dies-non/suspension etc. till terminal date as per rule 1.1(x) and rule 10 of GSLI scheme
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2 Whether the existing contribution of CGEGIS will be adjusted
Rev. Date: 15-03-2011

The CGEGIS and GSLI are two distinct schemes. Therefore the question of adjustment of contribution made in CGEGIS does not arise.
Whether any exception is to be given for the recovery of new BSNL GSLI scheme for the official likely to be retired within a couple of months.
The clarification given in para 2 of this office letter no.500-57/2005/CAII dated 21-7-2005 may be referred to. The recovery of GSLI premium has to be made in all cases except in the month of retirement of the official concerned.
Refund of amount held in deposit in CGEGIS
DOT has already been requested to refund the admissible amount lying in CGEGIS scheme through their respective CCAs.
(BSNL HQ No.500-57/2005/CAII
dt. 6-9-2005)
Sub: Applicability of BSNL GSLI Scheme in respect of Gr. A officers. It has been decided by the Competent Authority that the BSNL GSLI scheme should also be extended to all Group A officers , who have been absorbed in BSNL and in whose case the Presidential order has been issued , w.e.f. 20th Feb 2006. To implement the scheme the recovery of the premium for GSLI will be made from the month of salary of January 2006 as per prescribed rates. However, the recovery of
CGEGIS premium will also continue in the month of Jan. and Feb. 2006 also so that no officer remains uncovered in any intervening period. The coverage of BSNL GSLI scheme should also be extended to all other absorbed Group A officer in BSNL and whose presidential orders are issued time to time. (No.500-57/2005/CA-II/BSNL Dated : 05.01.2006)
Sub:- Date of commencement of BSNL GSLI Scheme for the employees of BSNL Ref:-1.No.8-1/2002-Restg(Pt.) dt. 1-7-2005 2.No.500-31/2005-06/CAI/BSNL dt. 7-7-2005 (Circular No.43) Kindly refer to Para 1 of letter dt. 1-7-05 and Para of letter dt. 7-7-05. In the said Para it has been stated that the date of commencement of BSNL GSLI scheme is 20-8-2005.
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However, the matter was taken up with LIC of India to pre-pone the date of commencement of BSNL GSLI scheme to 1-8-2005. LIC of India has accepted our request and issued order under No.LIC/CO/P&GS dated 16-5-2006 for pre-poning the date of commencement of BSNL GSLI scheme for BSNL employees to 1-8-2005. Necessary change in Master Policy issued by servicing units of P&GS may kindly be get incorporated accordingly. In view of above, if any employee who is covered by BSNL GSLI Scheme and premium of July2005 has been deducted from his pay in July2005 and died in harness on or after 1-8-2005, necessary claim for insurance amount and other entitlement in respect of such deceased employees as per LIC based group insurance scheme shall be lodged to the respective P&GS units of LIC of India You are requested to take necessary action in the matter. (BSNL HQ No.500-57?CAII/2006/BSNL dt. 18-5-2006)
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Chapter-3 On Pension, Gratuity, BSNL GSLI

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Chapter-3 On Pension, Gratuity, BSNL GSLI

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E1-E2 Core

Rev. Date: 15-03-2011

PENSION, GRATUITY, BSNL GSLI

For Internal Circulation Only

Rev. Date: 15-03-2011

Pension and Gratuity

For Internal Circulation Only

E1-E2 Core Verification of Services

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For Internal Circulation Only

Procedure followed in the Units

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E1-E2 Core Preparation of Pension Paper

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For Internal Circulation Only

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For Internal Circulation Only

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Forms used Name of official

Class of Pension Qualifying Service

For Internal Circulation Only

Rev. Date: 15-03-2011

For Internal Circulation Only

E1-E2 Core Calculation of Average Emoluments Points to be seen: i)

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ii) iii) iv)

For Internal Circulation Only

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For Internal Circulation Only

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For Internal Circulation Only

E1-E2 Core e.g. Pension for 63 six monthly period = AE X 63 2 66

Rev. Date: 15-03-2011

For Internal Circulation Only

Rev. Date: 15-03-2011

For Internal Circulation Only

E1-E2 Core W.E.F 1-1-2006

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For Internal Circulation Only

Rev. Date: 15-03-2011

For Internal Circulation Only

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For Internal Circulation Only

Rev. Date: 15-03-2011

For Internal Circulation Only

Rev. Date: 15-03-2011

For Internal Circulation Only

E1-E2 Core Reduction of Pension after commutation

Rev. Date: 15-03-2011

For Internal Circulation Only

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For Internal Circulation Only

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What will be the date of restoration of additional commutation of pension?

[Dept. Pen &PW OM No.38/79/2008-P&PW(G) dt. 16-2-2009]

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E1-E2 Core ANNEXURE I

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COMMUTATION VALUE FOR A PENSION OF Re.1 PER ANNUM

For Internal Circulation Only

Rev. Date: 15-03-2011

Sub:- Voluntary Retirement from BSNL Service

For Internal Circulation Only