In a departure from the previous rule, the Centre has said that retirement benefits of ex-government employees working now in PSU firms can be forfeited under certain conditions.
The new rule says a PSU employee can be denied retirement benefits from his or her previous job under the government if found guilty of any wrongdoing or misconduct after his absorption in the public sector firm where the individual is currently working, according to a Department of Pension and Pensioners’ Welfare (DoPPW) notification.
The DOPPW has notified a change in the Central Civil Services (Pension) Rules, 2021, inserting a new clause in sub-rule 29 of rule 37 of the CCS (Pension) Rules.
“…the dismissal or removal from service of the public sector undertaking of any employee after his absorption in such undertaking for any subsequent misconduct shall lead to forfeiture of the retirement benefits for the service rendered under the Government also and in the event of his dismissal or removal or retrenchment the decision of the undertaking shall be subject to review by the Ministry administratively concerned with the undertaking,” the notification dated May 22 said.
What was the previous rule in such cases?
The previous rule did not suggest forfeiting of retirement benefits in case of dismissal of an employee from the PSU service on account of any misconduct.
“The dismissal or removal from service of the public sector undertaking of any employee after his absorption in such undertaking for any subsequent misconduct shall not amount to forfeiture of the retirement benefits for the service rendered under the Government and in the event of his dismissal or removal or retrenchment the decisions of the undertaking shall be subject to review by the ministry administratively concerned with the undertaking,” Clause C of Sub-Rule 29 of Rule 37 of the CCS (Pension) Rules, 2021 said before the amendment.
For the purpose of this Rule, the relevant provisions of Rule 7 and 8 read with Rule 41 and Rule 44(5)(a) &(b) would be applicable analogous as is applicable to a Government servant under these Rules”.
The amendment in Rule 37 (29)(c) of CCS (Pension) Rules, 2021 was carried out in the light of the Order dated 09.01.2023 of Hon’ble Supreme Court of India in SLP No.4817/2020 titled as Suraj Pratap Singh Vs CMD BSNL & Ors.
Rule 37A refers to conditions for payment of pension on absorption consequent upon conversion of a government department into a public sector undertaking.
“On conversion of a department of the central government into a PSU, all government servants of that department shall be transferred en-masse to that PSU, on terms of foreign service without any deputation allowance till such time as they get absorbed in the said undertaking, and such transferred government servants shall be absorbed in the PSU with effect from such date as may be notified by the government,” says Rule 37A.
Rule 37B deals with conditions for payment of pension on absorption consequent upon conversion of a government department into a Central Autonomous Body.
“On conversion of a department of the central government into an autonomous body, all government servants of that department shall be
transferred en-masse to that autonomous body on terms of foreign service without any deputation allowance till such time as they get absorbed in the said body and such transferred government servants shall be absorbed in the autonomous body with effect from such date as may be notified by the government,” says Rule 37.