Chapter13.Terminal Benefits

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CHAPTER-13 TERMINAL BENEFITS (PENSION, GRATUITY, LEAVE ENCASHMENT,GPF,EPF,DOT CELL) (Date of Creation: 01/04/2011)
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Terminal Benefits(Pension, Gratuity, Leave Encashment, GPF, EPF, DOT Cell)

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. Verification of Services 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., BSNL, India For Internal Circulation Only 2
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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. 6. that necessary note exists in the Service Book under the signatures of the 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 BSNL, India For Internal Circulation Only 3
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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. Preparation of Pension Paper 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. 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.
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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. The following general checks are exercised in respect of the pension cases. Sl.No. 1 2 Item Forms used Name of official Points to be seen 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 service etc., are omitted as per rules. Date of ending of in the afternoon of the last day of the month in which the service in case of official attains the age of 60 years. superannuation An official, whose date of birth is 1st of a month, retires pension. on the afternoon of the last day of the preceding month on attaining the age of 60 years. Period of Military that it was treated as qualifying service for civil pension service under the provision of Rule 19 of CCS (Pension) Rules. Class of Pension that the class of pension admissible is properly specified.
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Rev. Date: 01-04-2011 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 non- qualifying 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 v) that the calculations in leave account are correct vi) 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 to be ignored 3 months and above .one completed but less than 9 six monthly or months. Half year period. 9months & above ........ Two completed six monthly or half year periods.
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i) that periods of EOL, Dies-non, overstayal and suspension treated as nonqualifying service if any, falling within the period of 10 months were disregarded and equal period before 10 months was included. ii) that the month is reckoned as 30 days irrespective of actual number of days. iii) that the calculation of average emoluments is correct. iv) 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. 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. BSNL, India For Internal Circulation Only 7
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2 slips of specimen signature duly attested by Gazetted Officer. 2 slips showing height & personal identification marks. 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., 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
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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)] e.g. Pension for 63 six monthly period = AE X 63 2 66 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) dt. 23-4-2003) 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 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 BSNL, India For Internal Circulation Only 9
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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 1-4-2004, 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)] W.E.F 1-1-2006 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)
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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 Additional quantum of pension From 80 years to less than 85 years 20% of basic pension From 85 years to less than 90 years 30% of basic pension From 90 years to less than 95 years 40% of basic pension From 95 years to less than 100 years 50% of basic pension 100 years or more 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 10-32003) 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 / 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
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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 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.
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Commutation is permissible on the provisional pension except in cases where the provisional pension is sanctioned due to pendency of Departmental or judicial proceedings. Reduction of Pension after commutation 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) 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 BSNL, India For Internal Circulation Only 14
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revised table of commutation value for pension will be used for commutation of entire pension. (para 9.3 dt. 2-9-2008) S. No. Points raised Clarifications 1 What would be the age to be used for The age reckoned for calculation of commutation of additional commuted value of pension at the commutable pension and which time of original application for factor would be used for such commutation of pension will apply additional commuted value of for calculation of commutation value pension 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 Reduction in pension on account of pension on account of additional additional commutation of pension commutation of pension will take will be in two stages as per the effect? provisions contained in Rule 6 of the CCS (Commutation of Pension) Rules, 1981. 3. What will be the date of restoration The commuted portion of pension of additional commutation of shall be restored after 15 years from pension? 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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COMMUTATION VALUE FOR A PENSION OF Re.1 PER ANNUM Age next birth day Commutation Age next value expressed birth day as number of years purchase 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 Commutation birth day value expressed as number of years purchase 62 8.093 63 7.982 64 7.862 65 7.731 66 7.591 67 7.431 68 7.262 69 7.083 70 6.897 71 6.703 72 6.502 73 6.296 74 6.085 75 5.872 76 5.657 77 5.443 78 5.229 79 5.018 80 4.812 81 4.611
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
41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61
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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 1 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. 2 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 form-12. 3 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. 4 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 BSNL, India For Internal Circulation Only 17
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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 a) Family Pension 1. 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. 2. 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. 3. 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. b) 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. Definition of Family:- Family in relation to a Government Servant for the purpose of Family Pension means:-
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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) Posthumous child and v) 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 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)
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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) Divorce is valid in law (ii) Divorced daughter comes back to her parental home. (iii) 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 becoming eligible to family pension for life shall continue to remain operative. 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. BSNL, India For Internal Circulation Only 20
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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 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. The staff side of National Council (JCM) had raised the issue of extension of scope 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 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 BSNL, India For Internal Circulation Only 21
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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 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 BSNL, India For Internal Circulation Only 22
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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) dt. 17-8-2009] 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)] [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 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
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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 Yes. The period of 10 years for payment payment of enhanced family pension of enhanced family pension will count would also apply in the case of a from the date of death of the Government Government servant who dies before 1-1- servant. These orders will, however, not 2006 and in respect of whom the family apply in a case where the period of seven was receiving enhanced family pension years for payment of enhanced family as on 1-1-2006. 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 Additional quantum of family pension From 80 years to less than 85 years 20% of basic family pension From 85 years to less than 90 years 30% of basic family pension From 90 years to less than 95 years 40% of basic family pension From 95 years to less than 100 years 50% of basic family pension 100 years or more 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) 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)
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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 Rate of Gratuity Less than one year 2 times of emoluments. One year or more but less than 6 times of emoluments. 5 years. 5 years or more but less than 12 times of emoluments. 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. 2-908)] Definition of Family: For the purpose of payment of death gratuity, family in relation to a Government servant means: i) Wife or wives (including judicially separated), ii) Husband(including judicially separated), iii) Sons/stepsons/adopted sons, iv) Unmarried daughters/ stepdaughters/adopted daughters, v) Widowed daughters/ stepdaughters/ adopted daughters, vi) Father including adoptive father if personal law permits adoption; vii) Mother including adoptive mother if personal law permits adoption; viii) Brothers/ step brothers below 18 years of age; ix) Unmarried/ Widowed sisters including step-sisters; x) Married daughters; and xi) 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 BSNL, India For Internal Circulation Only 25
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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 predeceasing 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. 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 rate- Maximum 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
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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. 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.
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After death is established or seven years.: i) Difference between death gratuity and retirement gratuity; ii) Insurance cover admissible under Group Insurance Scheme; iii) 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 Rs.7000/- irrespective of the status of the employee to the family of BSNL i.e. whether he was a permanent or temporary official employees who die in Harness. 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 his/her death. 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 Rs.10000/(ii) Death due to attack by robbers, terrorists riots etc., while not on duty 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)] BSNL, India For Internal Circulation Only 28
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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 Exservicemen who held posts below the ranks of commissioned officers at the time of their retirement ) will be entitled to dearness relief on their pension. (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 CLARIFICATION Who will make the payment of: In respect of item no.(i) to (iii) payments will i)DCRG be made by the DOT Cell for the employees ii)Commuted value of pension whether on deemed deputation or absorbed in iii)Provisional pension BSNL. iv)Leave encashment For item no.(iv) to (vi) payment will be made v)Accumulation in the CGEGIS80 & by the DOT Cell to employees who are on CGEIS77 deemed deputation but BSNL will make vi)GPF final payment on payments to the employees who are absorbed superanuation/retirement 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.
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(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. (3) 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)] 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;
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(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 quasipermanent and temporary transferred government servants after they have been confirmed in the public sector undertaking or autonomous body. (11.A) A permanent Government servant absorbed in a 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. (14) 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.
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(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. (21) 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; BSNL, India For Internal Circulation Only 32
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(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 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. 28-12-2002] 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) (Amendment) Rules, 2007. (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. 2. In the Central Civil Services (Pension) Rules 1972, in rule 37A, for subrule(8), the following sub rule shall be substituted namely: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 BSNL, India For Internal Circulation Only 33
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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 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
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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 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) Any amount exceeding (i) shall be borne by BSNL (iii) 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) BSNL, India For Internal Circulation Only 35
E2-E3/Finance (DOT No.40-12/2007-Pen.(T) dt. 5-1-2009)
Rev. Date: 01-04-2011
Sub : Payment of gratuity as per provisions of BSNL Employees' Gratuity Trust Rules. 1. Bharat Sanchar Nigam Limited on its formation has appointed many persons as its 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 hereinafter called as directly recruited employees are covered by EPF Act & EPF Rules 1952 regarding their provident fund and other related benefits etc. 2. As per the Payment of Gratuity Act 1972 above-mentioned directly recruited 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. 3. BSNL Employees Gratuity Rules are applicable to its directly recruited 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 BSNL, India For Internal Circulation Only 36
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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. 7. Various eligibility criteria i.e. conditions for grant of gratuity to the directly 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. g) In case the employee is terminated from service for any act, willful omission or negligence 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.
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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 the concerned 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 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. BSNL, India For Internal Circulation Only 38
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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 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) Encashment of Leave [Encashment is admissible if no reduction in the amount of Pension/ gratuity has been ordered.(Rule 39(5)(A)] In terms of the instructions issued by his Department vide O.M.No.14028/18/86Estt.(L), dated 22-6-1987, a Government servant, who is compulsorily retired as a measure of punishment under disciplinary rules and the disciplinary authority has imposed any reduction in the amount of his pension (including gratuity) under Rule 40 of the CCS (Pensions) Rules 72, he is not being allowed encashment of leave on such retirement. 2. The demand of the staff side to allow encashment of unutilized earned leave to those Central Government employees, who are compulsorily retired as a measure of punishment and in whose case a cut in pension (including gratuity) has been imposed by the disciplinary Authority, has been reconsidered in consultation with the Ministry of Finance. It has now been decided that in such cases where the government servants are compulsorily retired as a measure of punishment and in whose cases even if a cut in pension (including gratuity) has been ordered, the benefit of encashment of earned leave at the time of such retirement shall be allowed. It has accordingly been decided to delete the relevant Rule 39(5-A) of Central Civil Services (Leave) Rules, 1972. These orders will be effective from the date of issue (M. O. Per. & Trg. O.M.No.14028/1/2004-Estt.(L) dt. 13-2-2006) When an employee retires on superannuation while under suspension or while disciplinary or criminal proceedings are pending against him, the whole or part of cash equivalent of leave salary may be with held to meet recoveries from him possibly BSNL, India For Internal Circulation Only 39
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arising on conclusion of the proceedings. On conclusion of the proceedings, payment may be released after adjustment of government dues, if any; In the case of death while on leave with leave salary, the benefit of increment falling due during the period of leave will be given even though the increment was not actually drawn. The benefit will be in the form of ex-gratia payment which should be got sanctioned by Head of Department. The ex-gratia payment will be the difference between (1) leave salary and cash equivalent of leave salary actually paid ( which will be based on the pay last drawn ) and (ii) the leave salary and cash equivalent of leave salary that would be admissible if the increment falling due during the period of leave is also taken into account. (G.I.D (3) Rule 39) Encashment of leave may be sanctioned by the authority competent to sanction EL.(Rule 39-C) After payment of cash equivalent of leave salary, if DA is sanctioned with retrospective effect, the difference due on the basis of enhanced DA is to be paid. (G.I.O (9) Rule 39) A Govt. Servant may be permitted to encash 10 days earned leave at the time of availing of L.T.C subject to the condition that a) the total leave so encashed during the entire career does not exceed 60 days in the aggregate; b) earned leave of at least an equivalent duration is also availed of simultaneously by the employee; c) a balance of at least 30 days of earned leave is still available to the credit of the employee after taking into account the period of encashment as well as leave; d) the total encashment of EL allowed to a Govt.Servant along with L.T.C while in service and as per the provisions of the CCS(Leave) Rules (on death/ retirement or resignation) should not exceed the maximum limit / ceiling of 300 days or 150 days as the case may be. (Dept. of Per & Trg O.M. No. 14028/7/97- Estt. (L) dtd. 7.10.97) Formula for Encashment of EL {(Pay + DA admissible on Date of retirement / Death ) x (Number of days of E.L. at credit on the date of retirement / Death subject to a maximum of 300 days)} 30 (Rule 39 (2) (b)) Personal Pay granted to Govt. Servant either for passing Hindi examination or for adopting small family norms cannot be taken into account for the purpose of computing encashment of leave. ( DOT Lr No. 1-4/92-NCG dtd. 17.7.92) In the case of resignation from service encashment is permissible up to 50% of earned leave at credit or 150 days, whichever is less. Pay for the purpose of Leave Encashment: Basic Pay, NPA, Stagnation Increment, Deputation Allowance, Personal Pay (except P.P for Hindi/ Small Family Norms)
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Only Pay admissible on the date of retirement plus Dearness allowance admissible on that date are to be taken into account for leave encashment. The teaching allowance will not be included in the calculation as it is not the part of pay defined in FR 9(21) (DOT Lr.No.36-2/2002-Pen(T)Pt. Dt. 25-2-2003 ) Treatment of Headquarter Allowance for computation of Earned Leave at the time of retirement-clarification regarding I am directed to forward a photocopy of DOP&T, ID No.14028/1/2005-Estt.(L), Part file, dated 2-9-2005 on the above subject. 2.The clarification on the issue was sought by Department of Telecom from Department of Personnel and Training. In Department of Posts, the PLI Directorate has also taken up a similar issue for clarification. In view of the clarification given to Department of Telecom by DOP&T, the Headquarter Allowance is not to be taken into account for calculating leave encashment benefits at the time of retirement. The said clarification may be followed scrupulously. (Dept. of Posts Lr.No.1-10/2004-PAP dt. 9-12-2005) Encashment of HPL against shortfall in Earned Leave of 300 days on retirement in respect of unabsorbed officers working in BSNL on deemed deputation/deputation as per 6th CPC recommendations Orders for encashment of Half pay Leave (HPL) against the shortfall in Earned Leave of 300 days w.e.f. 1-1-2006 for Central Government employees have been issued vide DOP&T OM No.14028/3/2008-Estt.(L) dated 25-9-2008 and 16-11-2009 (copy enclosed) 2. It has been decided with the approval of the competent authority that orders of Government for encashment of HPL against the short fall in Earned Leave of 300 days may be implemented for unabsorbed officers who have retired /will retire from BSNL as per provisions of DOP&T OMs mentioned above. The payment made in this regard may be got reimbursed from DOT as per procedure followed in past for encashment of Earned Leave. (BSNL HQ No.1-13/2010-PAT(BSNL)dt. 17-5-2010) Recommendations of the Sixth Central Pay Commission relating to encashment of leave in respect of Central Government employees The undersigned is directed to refer to this Departments OM of even number dated 25th September, 2008 on the subject mentioned above according to which encashment of leave in respect of central Government employees will be considered both for earned leave and half pay leave subject to overall limit of 300 days and in respect of encashment of half pay leave, no reduction shall be made on account of pension and pension equivalent of other retirement benefits. In case of shortfall in earned leave, no commutation of half pay leave is permissible. The order was made effective from the 1st September 2008. The matter was reconsidered in this department in consultation BSNL, India For Internal Circulation Only 41
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with department of expenditure (implementation cell) and it has been decided to modify the date of effect of this departments OM if even number dated 25th September, 2008 to 1-1-2008 instead of 1-9-2008 subject to the following conditions:(i)The benefit will be admissible in respect of past cases on receipt of applications to that effect from the pensioners concerned by the administrative ministry concerned. (ii)In respect of retirees who have already received encashment of earned leave of maximum limit of 300 days together with encashment of HPL standing at their credit on the date of retirement, such cases need not be reopened. However, such cases in which there was a shortfall in reaching the maximum limit of 300 days can be reopened. (iii)Calculations cash equivalent in respect of HPL at credit shall be made mutatis mutandis in the manner given in this departments OM of even number dated 25-92008 (Dept. Of Pers & Trg. No.14028/3/2008-Estt.(L) dt. 16-11-2009) Encashment of HPL against shortfall in Earned Leave of 300 days on retirement in respect of Executive/Non-executives absorbed/directly recruited in BSNL The orders for applicability of DOP&T OM No.14028/3/2008-Estt.(L) dated 25-92008 and 16-11-2009 for encashment of HPL against the short fall in Earned Leave of 300 days has been issued in respect of unabsorbed officers who have retired/will retire from BSNL vide this office order of even number dated 17-5-2010. The case for applicability of DOP&T OM no.14028/3/2008-Estt.(L) dated 25-9-2008 and 16-112009 for encashment of HPL against the shortfall in Earned Leave of 300 days in respect of BSNL absorbed/directly recruited Executives/Non-executives has been under consideration in this office. 2.It has been decided with the approval of the Board of Directors of BSNL that orders of Government for encashment of HPL against the short fall in Earned Leave of 300 days may be implemented for BSNL absorbed /directly recruited Executives/Non Executives w.e.f. 1-1-2006 as per provisions of DOP&T OMs mentioned above. (BSNL HQ No.1-13/2010-PAT(BSNL)encashment of HPL dt. 1-7-2010) Payment of leave encashment on revised pay w.e.f. 1-1-2007 Consequent on revision of pay of Board level and below Board level executives w.e.f. 1-1-2007, the issue of grant of encashment of leave on cessation of service due to superannuation/resignation on revised pay has been under consideration this office. 2. The approval of the competent authority is, hereby, conveyed for the grant of encashment of Earned Leave to Board level and below Board level Executives on retirement/resignation on their revised IDA pay w.e.f. 1-1-2007. 3. The lumpsum cash payment will be only to the extent of 300 days of earned leave in case of superannuation and 150 days in case of cessation of service due to BSNL, India For Internal Circulation Only 42
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resignation from service, including the number of days for which encashment was availed along with LTC. The existing method of calculation for encashment earned leave on retirement/resignation will remain unchanged. (BSNL HQ No.1-59/2009-PAT(BSNL) dt. 4-1-2010) Payment of leave encashment on revised pay to Non-executive employees w.e.f. 11-2007 The pay of Non executives employees has been revised w.e.f.1-1-2007 vide this office order no.1-16/2010-PAT(BSNL) dated 7-5-2010. The case for grant of encashment of leave to Non-executive employees on cessation of service due to superannuation /resignation on revised pay has been considered by this office. 2. It has been decided with the approval of the competent authority that payment of encashment of Earned Leave to Non-executive employees on retirement/resignation may be made on their revised IDA pay we.f. 1-1-2007 3. The lumpsum cash payment will be only to the extent of 300 days of earned leave in case of superannuation and 150 days in case of cessation of service due to resignation from service, including the number of days for which encashment was availed alongwith LTC. The existing method of calculation for encashment earned leave on retirement/resignation will remain unchanged. (BSNL HQ No.1-18/2010-PAT(BSNL) dt. 23-6-2010) In case of death while in service and after retirement etc., but before the amount could be paid, payment will be made to the family member in the following order. i) Widow / Widower ii) Eldest Surviving son iii) Eldest Surviving unmarried daughter. iv) Eldest Surviving widowed daughter. v) Father vi) Mother vii) Eldest Surviving brother below 18 years. viii) Eldest Surviving unmarried sister. ix) Eldest Surviving widowed sister. The payment can be made to only one person. (Rule 39-C)
GENERAL PROVIDENT FUND Admission to the Fund DOT/DTS/DTO employees as on 30-9-2000 & working in BSNL are subscribers to the GPF. The officials / Officers recruited on or after 01.10.200 are not eligible to subscribe to this fund. However. They are covered under EPF Scheme 1952. Each
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subscriber is allotted with an account number by the GPF section. The account number thus allotted shall be noted down in the service book. Necessary nominations should be obtained by the Head of Office from the employees and forwarded to the Accounts Officer (TA) of SSA/Circle for placing in the service book. On receipt of the statement of nominations, an account number is allotted through a Register of account numbers/ General Index register and a ledger account is opened. Nominations received shall be kept in safe custody after noting down the account number in the nomination and making necessary entries in a Register of nominations. Serial number of the register of nomination shall also be noted in the nomination and ledger card. Subscription Once the account number is allotted recovery of subscription, subject to a minimum of 6% of pay as on 31st March ( maximum 100% of pay), shall be commenced and continued to be recovered for the entire service including foreign service. The rate of subscription once fixed can also be increased twice and reduced once in a year. The subscription shall not be recovered during suspension but the subscriber shall be permitted, on reinstatement, to remit the arrears in lump sum or in instalments. The subscriber shall also have an option not to subscribe the fund during EXOL/HPL. The subscription to GPF shall be stopped before three months to retirement. Advances An advance up to three months pay or half the amount at credit, whichever is less, may be sanctioned by the Head of office to a subscriber for one or more of the following reasons: (Advance in the case of Head of Office will be sanctioned by the next higher authority) (a) to pay expenses in connection with the illness, confinement or a disability, including the traveling expenses of the subscriber and members of the family or any person actually dependant on him; (b) to meet cost of higher education including the traveling expenses of the subscriber and members of his family or any person actually dependant on him in the following cases:(i) for education outside India for academic, technical, professional or vocational course beyond the high School stage, and (ii) for any medical, engineering or other technical or specialized course in India beyond the High School stage, provided that the course of study for not less than three years.
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(c) to pay obligatory expenses on a scale appropriate to the subscribers status which by customary usage the subscriber has to incur in connection with betrothal or marriages, funerals or other ceremonies; (d) to meet the cost of legal proceedings instituted by or against the subscriber, any member of his family or any person actually dependant on him; this may be availed in addition to any advance for the same purpose from any other Government source; (e) to meet the cost of the subscribers defence where he engages a legal practitioner to defend himself in an enquiry in respect of any alleged official misconduct on his part; (f) to purchase consumer durable such as TV,VCR/VCP,Washing Machines, Cooking range, geysers and Computer. Note: Production of documentary proof for drawal of advance should not be insisted upon. It would suffice, if the applicant gives sufficient details in support of the application. (Rule 12(1),GID(2,3,4 and 11)
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Special Advances An advance in excess of 50% of the amount at credit or three months pay or involving recovery in more than 24 installments or when the earlier advance is not fully recovered or where the advance is required for reasons other than those mentioned under para 3, is treated as Special Advance. This can be sanctioned by Heads of departments and various other authorities specified in V schedule to GPF rules. Heads of Offices authorized to exercise the powers of Heads of Departments under DFPRs can also sanction the special advance. Special reasons are to be recorded for sanction of such advances If the Special Advance is sanctioned before the completion of the earlier advance, the balance of the previous advance remaining outstanding will be added to the amount sanctioned as special advance and the total consolidated amount recovered in suitable number of installments not exceeding 36. (Rule 12(2)(3)). Advance is not to be sanctioned during the last three months of service before superannuation. (GID 12,Rule12) Recovery of Advance: Recovery should commence with issue of pay for the month following the one in which the advance was drawn. Suspension of recovery Recovery not to be made except with official's consent in cases of suspension, or on leave for ten days on HPL or LWP in a calendar month. When advance of pay is being recovered, recovery may not be made on subscribers written request. Withdrawals Authorities competent to sanction special Advances as mentioned in Para 3.1 above can sanction withdrawals from GPF for one or more of the following purposes, if advance for the same purpose is not drawn at the same time. (A) after completion of 15 years or within 10 years of superannuation, whichever is earlier: Withdrawal is normally allowed upto 50% of the amount at credit or six months pay, whichever is less, and in special cases up to 75% of the at credit for:(a) meeting the cost of higher education, etc. as per Rule 12(1) (b) meeting the expenditure in connection with the betrothal/marriage ceremony of the subscriber or his sons/daughters, or any other female relation actually dependent ; BSNL, India For Internal Circulation Only 46
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(c)
meeting expenses on the illness, etc. as per rule 12(1)(a)
(d) meeting the cost of consumer durable such as TV, VCR/VCP,Washing Machines, Cooking range.Geysers and Computer. (B) At any time during the service:- Withdrawal is allowed up to 90% for:(a) building or acquiring a suitable house or ready-built flat for his residence including the cost of the site or any payment towards allotment of a plot or flat by the DDA,State Housing Board or a House Building Society; (b) repaying an outstanding amount on account of loan expressly taken for building or acquiring a suitable house or ready-built flat for his residence; (c) purchasing a house-site for building a house thereon for residence or repaying any outstanding amount on account of loan expressly taken for this purpose; (d) reconstructing or making additions or alterations to a house or a flat already owned or acquired by a subscriber; (e) renovating additions or alterations or upkeep of the ancestral house or a house built with the assistance of loan from Government; and (f) constructing a house on a site purchased under clause (c) Notes:- 1. Withdrawal for construction/purchase of a house or flat or site or for additions/alterations to a house/flat already owned, will be ,subject to the condition that the total of such withdrawal and advance availed from other Government sources should not exceed the maximum limit of cost ceiling prescribed under the house Building advance Rules. 2. Withdrawal for construction/purchase of house or flat or site will be permissible, at the place of his duty, if the subscriber had taken a loan from Government for acquiring a house at a place other than the place of duty. 3. Withdrawal for construction the above purposes will be sanctioned only after submission of a plan duly approved by the local municipal authorities, if the plan is actually got to be approved Withdrawal for repayment of loan taken for construction/purchase of house/flat under clause(b) will be limited to 3/4ths of the balance at credit plus withdrawal made under clause (a) reduced by the amount of withdrawal. For example, if the withdrawal already sanctioned for construction/purchase etc., is Rs.50000, the amount asked for now for repayment of loan under clause (b) is Rs.15000, and the amount at credit is Rs.30000 the entitlement will be worked out as under: 75% of (30000 +50000) i.e., 60000 (-) 50000 = 10000 BSNL, India For Internal Circulation Only 47
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Hence withdrawal under clause (b) will be allowed only up to Rs.10000. Withdrawal for purchase /construction of house/flat under Clause (a) or for additions/alterations to an existing house will be allowed, even if the house-site or house is in the name of the spouse, provided the spouse is the first nominee to receive the GPF accumulations as per the nomination made by the subscriber. WITHIN 12 MONTHS BEFORE THE DATE OF SUBSCRIBER`S RETIREMENT ON SUPERANNUATION:- Withdrawal is allowed up to 90% of the amount at credit without linking to any purpose. ONCE DURING THE COURSE OF A FINANCIAL YEAR:-Withdrawal is allowed of an amount equal to one years subscription towards Group Insurance Scheme for the central Government employees.(Rule 15, notes 1 to 6, Rule 16(1)) FOR THOSE WITH 15 YEARS OR ARE DUE TO RETIRE SUPERANNUATION WITHIN 5 YEARS AND ONCE DURING SERVICE.: ON
(i) Withdrawal up to Rs.110000 is allowed for purchase of motorcar for officers with basic pay+NPA+stagnation increment not less than Rs.10500; and (ii) Withdrawal up to Rs.20000 is allowed for purchase of motor cycle /scooter for officers with basic pay+DP+NPA+stagnation increment not less than Rs4600, subject to certain conditions. GID (1),Rule 15) (iii) Withdrawal in respect of the officers at (i) above up to Rs.,22000 for making deposit for booking a car and up to Rs.4000 for making deposit for booking a scooter/motor cycle for officers at (ii) above, will be permitted, subject to the condition that this amount will be taken into account for the purpose of overall ceiling prescribed for withdrawal for purchase. Note 6: Part-final withdrawals are also allowed for repaying the Government loan already taken for the purpose. Note 7: For those whose service falls short of the prescribed limit of 15 years by not more than 6 months, ministry may sanction advance for purchase of car/scootor, which may be converted as withdrawal on their completing the 15 year period of service. For those with 28 years service or are due to retire on superannuation within 3 years: BSNL, India For Internal Circulation Only 48
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Withdrawal upto Rs.10000 or one-third of the amount at credit is admissible once in the career for the extensive repairs or overhauling of motor car for officers drawing pay not less than Rs.1400 (under 1973 pay rules) , if at least five years have elapsed since the car was purchased. ( In the case of secoond-hand car the date of first purchase to be taken into account) Final Withdrawals should Not Be Allowed For More Than One House (G.I.M.F.O.M.No.f.4(I)-E.V(B)/62 dt. 17/4/62) Conversion of advance into withdrawal: an advance (or advances) drawn under Rule 12 may be converted as withdrawal, subject to fulfilment of the conditions under rules 15 and 16, viz., purposes. limits etc., prescribed. For this purpose the outstanding balance(s) of earlier advances will be taken into account as credit along with the amount at credit on the date of conversion.(Rule 16 A) If any one or more advances do not qualify for conversion, the outstanding balance of such advance(s) should be worked out notionally. And the total balance treated as fresh advance which can be recovered in not more than 24 instalments /36 instalments. Preparation of GPF Ledger Separate Schedules for GPF Subscriptions and Refunds of Advances (Credit Schedule) and withdrawals from the fund (Debit Schedule) are prepared furnishing Account No, Name of the Subscriber, Amount of Subscription, Amount of Refund of advances in the credit schedule and amount withdrawn in the debit schedule and forwarded to AO (TA) of SSA/Circle. The following information should be given in the remarks column of the schedule. i) reasons for discontinuance of subscriptions and of refund of advances ii) The period of leave and date of its commencement in the case of subscriber who is on leave and discontinued payment of subscription or repayment of advances. iii) a brief explanatory note in cases wherea) The amount of subscription in a particular month differs from that realized in the preceding month. b) Where a subscribers name appears for the first time. Copies of sanction for withdrawal from the fund shall also been send along with the debit schedule. The total of subscriptions/ refund of advances and withdrawals as arrived in the schedules for that month should agree with the figure booked against the head in the detailed head wise statement enclosed with the Trial Balance. This is a very important check to be exercised before sending the schedules to the AO(CA). The
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difference if any due to misclassification/ rectification thereof etc., shall also be explained. Maintenance of Ledger Accounts On receipt of the Credit/Debit Schedules the amount of subscription, refund of advances and withdrawals shall be posted in the ledger account after verifying the name, account number with entries in the ledger on monthly basis. If any item could not be posted for want of ledger card or insufficient information in the schedule the same shall be posted in a register of un-posted items and clearance of the un-posted items shall be watched separately. Maintenance of Broad-sheet Broad-sheets are maintained unit-wise to verify the accuracy of posting in the Ledger Cards. The amounts of subscriptions, refund of advances and the withdrawal are posted in the Broad Sheet from the Ledger accounts.. The totals amounts of the subscriptions, refund of GPF advances and the with-drawls are worked-out in the Broad Sheet. The amounts of total credits and debits so arrived for the month as worked out in the unit wise broad-sheets are entered in a Consolidated Broad-Sheet. a) The total of Debits and Credits as per broadsheet should agrees with figures in the monthly Trial Balance b) If there is any difference between the broadsheet and detail book figures, the postings in the broadsheet should be checked with the schedules. The amounts shown in each schedule against individual account number should be ticked with the corresponding figures posted in the broadsheet and discrepancy located and rectified. Reconciliation Sheet. Receipts/Payments. Name of the Unit 1
Month Figures as per Trial Figures as per Balance Broad-Sheets. 2 3 Differences 4
Particular care should be taken to see that all discrepancies are settled without any delay and that action taken in each case is recorded in detail in the explanatory sheet before it is submitted to the Accounts officer for review. When reviewing the Unit broadsheets and the consolidated broadsheet the JAO/AAO should also see; i) that the Unit Broadsheet is prepared from the ledger. This is tested by checking a few entries in the broadsheet with the corresponding figures in the ledger. BSNL, India For Internal Circulation Only 50
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ii) that all causes of omissions of subscriptions due to discontinuance, leave, suspension, death, discharge or retirement are properly explained against the blank numbers in the Unit broadsheet. iii) that variations in subscriptions are due to authorized causes and not due to wrong postings. iv) That in the case of differences between the unit broadsheets and the figures in departmental accounts, the classification of differences is made under the rules and action taken where necessary and v) Those in cases of differences due to posting of any amounts in the wrong ledgers, the items concerned are taken to the correct ledgers. Missing Credits In case credits for subscription do not appear in their respective accounts, it is essential that ledger accounts should be scrutinized thoroughly and omissions completed. The cases, in which subscriptions have not appeared, should be entered in a Register of Missing Credits. This register is intended only for recording missing credits i.e., original subscriptions. Debits on account of temporary advances and missing credits on account of refunds may, if considered necessary, also be watched through the Missing credits register. As soon as the missing credits are posted in the registers, references should be made to the Drawing and Disbursing Officers concerned with a view to ascertain the exact position of the missing credits. Replies to these references should be closely watched and necessary note kept in the register as well as in the respective ledger account before the documents containing the requisite information are recorded under the orders of the JAO/AAO. The missing credits registers should be closed each month after recording the action taken up to date against each item and submitted to the Accounts Officer on the last working day of each month. Interest (8% Financial year 2007-2008) At the end of the year, after completion of posting (for the year) interest due on each accounts is calculated and added to the balance of the account. The closing balance is struck. The interest calculations should be checked independently. Test examination of the accounts also is done by the examiner and JAO/AAO and initialled by them. The interest as calculated in the individual ledger account should be posted in the unit Broadsheets concerned in the column prescribed there-for against the respective Account Number. The total of interest column in each unit Broadsheet should then be struck and carried over, after careful check, to the consolidated Broadsheet.
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(i) The total amount of interest added to all the accounts as ascertained from the consolidated broadsheet shall be adjusted in the accounts by Debiting A/C per contra Credit to the GPF A/C. ii) The debit should not include the amount of interest paid during the year on closed accounts as the adjustment must have been made before making the payment. After the accounts for March (Final) are closed, the total of opening balance, receipts and interests should then be struck individually for each Account and entered in the column provided for the purpose in the unit broadsheet. After deduction of the amounts withdrawn, if any,(which are also totalled up and noted in the relevant column) the closing balance should be worked out and entered in the column intended there-for. The closing balance for each account as per Broadsheet should be verified with that shown in the ledger account. Any discrepancy noticed should be settled immediately. The totals of the Unit Broadsheets should then be compared and agreed with the figures in the consolidated broadsheet. Review of GPF Accounts The review work of the group should be carried out regularly and systematically and the results of the review recorded in a register in Form No. SY-3 which should be maintained separately for each Junior Accountant. Any discrepancy should be settled immediately.
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Maintenance of Broad Sheet by Controller Communication Accounts As the employees of BSNL are treated as on deputation from DOT, the GPF accounts are to be maintained by the Controller Communication Accounts (DOT Cell). Since the detailed accounts together with GPF Ledger Cards are maintained in the Telecom Accounts Section of SSA/Circle, only Broad Sheet is maintained by the DOT Cell. On receipt of the Claims Payable/ Claims Receivable from the SSAs along-with the GPF Schedules in support of the Claim, the broad sheet is posted from these schedules. Final Payment Final payment of GPF accumulations arises in the following events:(a) (b) (c) Resignation, termination of service, dismissal and removal from service; or Retirement; or death
The payment of GPF balance at the credit of the employee is done by the DOT Cell by a cheque on the basis of the details available in the Broad Sheet maintained in DOT Cell. Transfer of balances On transfer from one Circle to another Circle : The balances of GPF moneys including interest will be transferred by the DOT Cell (on the basis of LPC) by issuing cheque to the DOT Cell under whose jurisdiction the employee has been transaferred under intimation to the Circle Corporate Accounts Offices/SSAs concerned. DEPOSIT-LINKED INSURANCE SCHEME Under this an additional amount equal to the average balance in the account during the 36 months preceding the month of death is payable, subject to a maximum of Rs.60000 (w.e.f.25-4-98) and subject to the following conditions:(i) The balance at the credit of such subscriber should not be less than the minimum given below: Maximum of the scale of post which the Monthly minimum subscriber was holding (CDA) during the period Rs. 12000 or more 25000 Rs.9000 to Rs.11999 15000 Rs.3500 to Rs.8999 10000 balance
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(ii) The subscriber should have put in at least 5 years service at the time of death. While calculating average monthly balances during the 36 months the balance at the end of March as also at the end of the month preceding the month of death will include interest credited Death taking place before midnight of the last working day should be treated a death in service entitling the nominee of the subscriber to the benefit of this scheme Applicable in the case of suicide also. The Accounts Officer will make payment of this additional amount at the time of making final payments of GPF balance, without any further sanction. In the case of missing employees payment due under DLI scheme can be made to the nominees/heirs after expiry of a period of seven years following the month of disappearance of the subscriber provided the claimants produce a proper and indisputable proof of death or a decree of the court that the employee concerned shall be presumed to be dead as laid down in section 108 of the Indian Evidence Act. Any dues to government are recoverable from the payments made under the scheme. Though for administrative convenience recovery of subscription are discontinued during the last three months of service, the official continues to be a subscriber during this period and this will not affect payment under the scheme.
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EPF Employees Provident Fund and Miscellaneous Provisions Act, 1952 [Applicable to Establishments employing 20 or more persons including the persons engaged by or through contractors] The membership of an eligible employee under the Employees Provident Funds & Miscellaneous Provisions Act, 1952 is compulsory from the first day of his appointment. Contribution to P.F.is payable monthly by the employer and the employee both at equal rate (12%). The employer is required to deposit both the shares of contribution. Out of employers share of contribution, 8.33% equivalent is to be diverted to pension fund account while the balance of employers share of contribution (3.67%) and the employees share of contribution in toto will be credited to P.F. account. Contribution to DLI (0.5%), Administration charges on PF (1.1%) & Administration charges on DLI (0.01%) are also payable by Employer. It shall be the responsibility of the Principal employer to pay the above contributions & their administration charges by himself in respect of the employees directly employed by him and also in respect of the employees employed by or through a contractor. In that connection, the following forms are to be filled in: 1.Form 5A (once in the beginning) An employer in relation to a factory or establishment as covered under the Act shall furnish the particulars of ownership in form 5A in duplicate along with branches and departments to the R.P.F.C. Any change of ownership and particulars is to be intimated within 15 days. 2.Form 9 (within one month of the date of coverage) Contain a statement of all the employees in the establishment giving some details about them viz., name of the employee, fathers name, age, date of employment, gender, date of his joining the establishment. This form has to be submitted to the Regional Provident Funds Commissioner for the time once after coverage and not to be repeated for subsequent period.
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3.Form 2 (immediately on enrolment as members to be submitted to RPF with form 15) It is a nomination form in which a member appoints his/her successor to provident fund in case of his or her demise who has to be the member of his/her family. In case there is no family then to any person. 4.Form 5 (15th of the following month) This form is similar to form 9 above giving necessary information in case of those employees who join the establishment after submission of form 9 above. 5.Form 10 (15th of the following month) It is a list of employees who leave the establishment after submission of Form 9/ form 5 together with the date of leaving and reason for leaving therefore. 6.Form 12A (25th of the following month) This is to be submitted every month by giving the details of basic pay and DA paid, contribution deducted, contribution paid, administration charges paid together with the number of employees/members 7.Challan of deposit On the coverage of establishment, the employer is required to deposit the following dues in the account noted against each:(i) P.F. contribution @12% plus 3.67% in Provident fund Account No.1 (ii) Pension fund contribution @8.33% in Pension Account No.10 (iii) The administration charges (Provident fund) @1.1% of the Basic Pay +DA in Account No.2 (iv) Insurance fund contribution @0.5% to be deposited in Account No.21 (v) Administration charges (D.L.I.) @0.01% in Account No.22
All these remittances are remitted on one challan in the State Bank of India by a single cheque favouring SBI Account of Employees Provident Fund. The amount can also be remitted in cash. The challan of remittance along with form 12A is to be sent to the R.P.F.C. by 15 th of the following month. The establishment is required to maintain a regular record of the amount deducted from the salary of the member by providing appropriate columns in the pay sheet which is open to the employee for inspection.
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The establishment is required to maintain an inspection book which will be available to the Inspector when he visits for recording his remarks regarding the maintenance of record of provident fund. The copies of all the returns sent to the R.P.F.C. will be maintained by the establishment to be shown to the Inspector of Provident fund as and when he visits the establishment. The record of Provident fund for each of the employee is to be monthly posted in one form 3A as required by paras 35 and 42 of the Employees Provident funds Scheme read with para 19 of the Employees Pension Scheme, 1995. At the year end these forms together with form 6A and the reconciliation statement of the dues and paid shall be sent to RPFC. This is to be sent to RPFC by 30th April. The Employees Pension Scheme, 1995 Minimum 10 years Contributory Service is required for entitlement to Pension Normal Superannuation Pension is payable on attaining the age of 58 years A Member, if he so desires, he may be allowed to draw monthly reduced pension from a date earlier than 58 years of age but not earlier than 50 years of age. In such cases, the amount of pension shall be reduced at the rate of 3%, for every year, the age falls short of 58 years. Pensionable Service Total actual service shall be rounded off to the nearest year (service less than 6 months ignored) Weightage of 2 years in case of superannuation on attaining the age of 58 years or after rendering a service of 20years or more. Pensionable salary:- Average of 12 months preceding the date of exit. Kinds of Pension: Superannuation Pension:- Served 20 years or more & retired on attaining the age of 58 years. Retirement Pension:- Served 20 years or more & retired before attaining the age of 58 years. Short Service Pension:- Served 10 years or more but less than 20 years Monthly Pension= Pensionable salary x Pensionable service 70 For Pension for Permanent & Total Disablement during the service, no minimum service. Minimum Pension Rs.250/Commutation of Pension Maximum :- 1/3rd of Pension Commuted Value:- Portion of Pension to be commuted x 100 BSNL, India For Internal Circulation Only 57
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WIDOW PENSION (Till death or remarriage whichever is earlier) Death in Service Pension calculated up to death or Rs.450 or Table C Whichever is more Retired before 58 years & eligible for Pension calculated up to exit or Rs.450 or pension but dies before commencement Table C whichever is more of pension Died after commencement of Pension 50% of Pension (Minimum Rs.450) CHILDREN PENSION (in addition to widow pension) Each child 25% of Widow Pension (Minimum Rs.150) (up to 25 years of age, Maximum 2 children at a time) Children pension or orphan pension to Total & Permanently disabled children for life ( in addition to children pension ) At the time of death No Widow or after death of widow Children eligible to Orphan Pension:- 75% of Widow Pension Minimum Orphan Pension for each child Rs.250/- (Maximum 2 children at a time) If no spouse/child, the official can nominate nominee to receive monthly widow pension At the time of death of the official, no spouse/no child/no nomination, widow pension to Dependent Father. Afterwards to Dependent Mother. Payment of pension: The claims, complete in all respects submitted along with the requisite documents shall be settled and benefit amount paid to the beneficiaries within 30 days from the date of its receipt by the Commissioner. Benefits on leaving service before being eligible for monthly members pension:If a member has not rendered the eligible service prescribed (10 years) on the date of exit, or on attaining 58 years of age whichever is earlier, he/she shall be entitled a withdrawal benefit as laid down in table D or may opt to receive the scheme certificate (indicating the pensionable service, pensionable salary and the amount of pension due on the date of exit from the employment) provided on the date he/she has not attained the 58 years of age. If he/she is subsequently employed in an establishment coverable under this Scheme, his/her earlier service as per the scheme certificate shall be reckoned for pension alongwith the fresh spell of pensionable service. DEPOSIT LINKED INSURANCE SCHEME Additional amount payable in addition to EPF balance, in case of death in service Average balance of EPF in preceding 12 months. If average balance exceeds Rs.35,000, the amount payable shall be Rs.35000 + 25% of amount of such excess (maximum Rs.60,000) BSNL, India For Internal Circulation Only 58
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Withdrawals from Employees Provident fund Type of Withdrawal Condition Amount Receivable Document Required (Available once in life time) 24 months wages ( Basic + DA) OR Members own share of contribution + Cos share of contribution with interest thereon Original of allotment order ( in case the purchase is through agency) with copy. Original to be returned after verification. Original Title Deed ( if purchase is from individual) with copy. Original to be returned after verification. Photocopy of the Registered Agreement with Seller alongwith the receipt of advance paid alongwith Original copy for verification and return. Same as per Col.(a) Photocopy of the plan approved by the Colletcors Office or Municipal Corporation or the Local Bodies, Gram Panchayat as the case may be. Document Required 1.Original allotment
1. Withdrawal from the fund for (Para 68B) (a) The purchase of site 5 years of for construction of house membership of the Fund ( Min. balance in members a/c should be Rs.1000)
(b) The Construction of House
--- do ---
Type of Withdrawal The purchase
Condition of ---- do ----
37 months wages (Basic + DA) OR Members own share of contributions +Cos share of contribution with interest thereon Amount Receivable --- do ---
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Rev. Date: 01-04-2011 order ( if purchase is through agency) with copy. 2.Copy of the Agreement with seller, duly registered under the Indian Registration Act, 1908 ( Photocopy + Original) for verification and return. 4. Nonencumbrance declaration from the member and seller. 5. Receipt of advance payment towards flat. 5. If purchase is in the Co-op Housing society, then Registration No. of the Society. 5 years from the date of completion of dwelling house 12 months basic or members own share of contributions with interest thereon 1.Proof of ownership. 2.Details of addition/ alteration to be carried out alongwith permission to carry out additions etc. 3.Estimate from the appropriate authority.
2nd Advance (d) Additions, Alterations or improvements to the dwelling house
3rd Advance (e) --- do ---
10Years from the date of completion of the dwelling
--- do ---
--- do ---
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2. Withdrawal from the fund for repayment of loan in special cases to State Govt., Registered Co Op Societies, State Housing Board, Nationalised Banks, Public Financial Institutions, Municipal Corporation or Secular Bodies 3. Advance from the fund for illness viz. hospitalization for more than a month, major surgical operation or suffering from TB, leprosy, Paralysis, Cancer, Heart ailment etc. ( for member of family and self)
36 months wages (Basic + DA) OR Members own share
A certificate from the leading authority furnishing the details of loan and outstanding amount and if they are ready to accept premature payment.
6 months wages (Basic+DA) or his share of PF whichever is less.
1.Certificate from the Regd. Medical Practitioner, Govt Doctor for hospitalization or operation. In case of serious diseases, of the specialists. 2.Certificate from employer that ESI benefits are not available to the member.
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4.Advance from the fund for marriage of Self/son/daughter/sister/ brother etc.
5.Advance from the fund for education of son/ daughter
7 years membership of the fund and the minimum balance of members fund a/c should be Rs.1000/---- do ---
50% of members Marriage invitation own share of Card / declaration contribution. of member. (Max. advances allowed 3)
50% of members own share of contribution. (Max. advances allowed 3) Rs.5000 or 50% of members own share of contributions
6. Grant of Advance in abnormal condition (Para 68L) Natural Calamities etc.
1.Ceritificate of damage. 2.State Govt. declaration.
7. Withdrawal within 1.He should have one year before attained the age of retirement. 54 years. 2.to retire within ensuing year. 8. Option for 1.More than 55 withdrawal for years of age. investment in Pension 2.LIC Policy for Beema Yojana Beema Yojana
90% of both contributions
Certificate from the institution regarding the course of study and anticipated expenditure. Certificate from the appropriate authority within the State Govt. ( To apply within 4 months) Certificate by the employer to this effect.
1.90% of both Proposal from LIC contributions. duly accepted and 2.Payment to be passed. made to LIC directly.
12A. Option for commutation: - A member eligible to pension may, in lieu of pension normally admissible under paragraph 12, opt on completion of three years from the commencement of this Scheme, to commute upto a maximum of one-third of his pension so as to receive hundred times the monthly pension as commuted value of pension. Balance pension will be paid on monthly basis as per option exercised under paragraph 13. Explanation: If for example, the normal pension under paragraph 12 is Rs.600 and the pensioner opts to commute one third of this monthly pension, the commuted value will be equal to 1/3 X 600 X 100 = Rs. 20,000 and the same shall be paid at the time of exercise of option for commutation. The balance of pension payable on monthly basis is Rs.400.00) BSNL, India For Internal Circulation Only 62
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13. Option for return of capital:-- (1) A member eligible to pension may, in lieu of pension normally admissible under paragraph 12, (subject to commutation of pension, if any, under paragraph 12A) opt to draw for reduced pension and avail of return of capital under any one of the three alternatives given below: Sl.No 1 Alternatives Revised Pension payable Revised pension during 90% of original lifetime of member with monthly pension. return of capital on his death. Revised pension during the 90% of original lifetime of member, further monthly pension to reduced pension during the member. On his lifetime of the widow or death 80% of the her remarriage whichever original monthly is earlier and return of pension to the capital on widows death/ widow. remarriage. Pension for a fixed period 875% of the of 20 years not original monthly withstanding whether the pension for a fixed member lives for the period period of 20 years. or not The pension will cease thereafter. Amount payable as return of capital 100 times the original monthly pension on death of member to the nominee. 90 times the original monthly pension on dearth of widow/ remarriage to the nominee.
100 times the original monthly pension at the end of 20 years from the date of commencement of pension to the member if he is alive, otherwise to his nominee.
Explanation 1:- In alternative 2, if the (spouse) dies or remarried before the death of member, capital equal to 90 times the original monthly pension shall be paid to the nominee on the members death. Explanation 2:- In alternative 3, if the member dies before the end of the 20 year period, the pension shall be paid to his nominee for the balance period. Explanation 3:- In the case of a member who is eligible for permanent total disablement pension, and where the payment of such pension is to commence before his attaining the age of 50 years, the option shall also be admissible but in such cases the actual pension payable shall be reduced by 1 per cent. And the return of capital shall be further reduced by Rs.1,000 for every year by which the age at the commencement of pension falls short of 50 years.
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Explanation 4:- In cases of exercise of option for commutation under paragraph 12A, balance monthly pension payable after commutation shall be deemed to be the original pension for the purpose of this paragraph. TABLE C (See Paragraph 16) EQUIVALENT WIDOW PENSION. Salary at day of Equivalent widow death not more pension than (Rupees) (Rupees) Upto 300 250 350 327 400 343 450 359 500 375 550 391 600 408 650 425 700 442 750 459 800 476 850 493 900 510 950 527 1000 544 1050 561 1100 578 1150 595 1200 612 1250 629 1300 646 1350 664 1400 682 1450 700 1500 718 1550 736 1600 754 1650 772 1700 797 1750 808 1800 826 BSNL, India
Salary at day of death not more than (Rupees) 3300 3350 3400 3450 3500 3550 3600 3650 3700 3750 3800 3850 3900 3950 4000 4050 4100 4150 4200 4250 4300 4350 4400 4450 4500 4550 4600 4650 4700 4750 4800
Equivalent widow pension (Rupees) 1401 1421 1441 1461 1481 1501 1521 1541 1561 1581 1601 1621 1641 1661 1681 1701 1721 1741 1751 1761 1771 1781 1791 1801 1811 1821 1831 1841 1851 1861 1871 64
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Rev. Date: 01-04-2011 1881 1891 1896 1901 1906 1911 1916 1921 1926 1931 1936 1941 1946 1951 1956 1961 1966 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016 2021 2026 2031 2036 2041 2046 2051
NOTE: In the case of employees drawing wages above Rs. 3500 p.m the widow pension shall be increased by Rs. 20 p.m for every increase in wages of Rs. 50 or part BSNL HQ ORDERS Opening of Employees Provident Fund Account with Regional Provident fund commissioners in respect of directly recruited BSNL Personnel.
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In respect of the directly recruited personnel of BSNL like JTOs etc., who have been directly recruited by BSNL Employees Provident fund accounts are required to be got opened with the Regional Provident fund commissioners. You are requested to take all necessary steps on priority to complete the above process and to ensure timely remittance of the EPF deductions with the RPF commissioners (BSNL HQ No.500-85/TA-I/BSNL dt. 22-3-2002) Kindly find enclosed copy of corporate office New Delhi letter No.500-85/TAI/BSNL dated 22-3-2002 regarding opening of employees provident fund accounts in respect of directly recruited employees of BSNL. The SSAs/PAUs have to submit applications in the prescribed format for allotment of code numbers for the purpose of remittance of EPF deductions with the Regional Provident Fund Commissioner. The particulars of sub regional offices of EPF and area covered by each sub region are furnished below. Name of RPF/Sub RPF office Regional Provident fund Office, Pattom, Trivandrum Sub Regional Provident fund office 1.Kottayam 2.Ernakulam 3.Kozhikode 4.Kannur Units/SSA concerned Trivandrum/Kollam & Pathinamthitta
Kottayam Alleppey,/Ernakulam/Trissur Kozhikode/Palghat/Malapuram Kannur
Hence all the units where the directly recruited employees of BSNL are working at present may take necessary action in this regard immediately. Other units shall take action as and when direct recruit employees are appointed and report for duty. The following information are furnished for ready reference. 1. Emoluments means Basic Pay + Dearness Allowance from time to time. 2. Contribution by the employees- 12% of emoluments 3. Employer-12% of emoluments 4. Administrative expenses towards PF-1.1 % of total emoluments of all the employees (payable by the employer) 5. Contribution towards employees Deposit linked Insurance Scheme 0.5% of the total emoluments as contribution and 0.01% of the total emoluments as administrative expenses (payable by the employer) 6. Due date of remittance-within 15 days of close of every month. 7. Mode of remittance-the amount may be remitted by cheque by the local units, i.e. the units where the RPF commissioners office is functioning and by demand drafts by other units. 8. Rounding offBSNL, India For Internal Circulation Only 66
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a) The contributions by employees and employer in respect of each employee may be rounded to nearest rupee. b) The amount under item (4) & (5) above may be rounded to next higher rupee. 9. Accounting a) The recovery of contributions from the employees through salary bills may be credited under the head 190501-CPF recoveries. b) The contribution payable by the employer shall be accounted in the same month through a journal slip as indicated below Dr. XX1600 Employers contribution to CPF Cr. 1190500 CPF recoveries XX indicates schedule number viz. 151 to 165 under Remuneration c) Administrative expenses towards PF and the contribution & administrative expenses towards Deposit Linked Insurance scheme shall be accounted through a journal slip as below Dr. XX 1700 Admn., charges on EPF Cr 1190500-CPF recoveries XX indicates schedule number viz. 151 to 165 under Remuneration d) When the amount remitted to RPF the same may be debited to 1190500 10. Advances/Withdrawal-Advances and withdrawals from the fund will be allowed only by the RPF commissioners directly to the employees. 11. Modification done in the pay bill package to this effect will be intimated separately. All required action may be taken for allotment of codes, recovery and remittance, mtce. of relevant records in further consultations and coordination with the /enforcement Officers of the Regional / Sub Regional offices of EPF. (CGMT TVM Lr.No.TA/20/33-2/EPF/2002-03/4 dt. 31-7-2002 & TA/20/332/EPF/02-03/17 dt. 9-10-2002) Clarification were sought by various units regarding the limit of Basic Pay and IDA on which the employers share of EPF contribution as well as the administrative charges are payable in respect of directly recruited employees. The clarifications in this regard issued by Corporate office as Circular No.44 vide letter No.500-85/2004-CAII/BSNL/KW dated 12-8-2005 is enclosed for further necessary action at your end. In order to enable the employee to contribute at a rate more than Rupees Six thousand Five Hundred, it is required vide para 26(6) of EPF scheme 1952, that a joint request has to be submitted by the employer and the employee to the EPF authorities. Further the employer has to give an undertaking in writing that he shall pay the administrative
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charges payable and shall comply with all statutory provisions in respect of such employees. In the light of the BSNL Board decision conveyed vide the circular no.44 dated 12-82005, you are requested to submit the requests/undertaking as above on behalf of BSNL A compliance report of implementation of the above decisions may be furnished to this office for further intimation to Corporate office. (CGMT TVM No.CA/20/33-2/EPF/2004-2005/16 dt. 25-8-2005)
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Sub:-Introduction of EPF facility to staff recruited directly by BSNL Ref:-This office letter no.1)500-85/TA-I/BSNL dt. 22-3-2002 2)500-85/TA-I/BSNL dt. 14-5-2002 3)500-85/TA-IV?KW dt. 20-6-2003 4)500-85/2002/CA/BSNL dt. 21-4-2003 BSNL has already extended the facility of EPF to its directly recruited staff. Instructions in this regard has been issued from time to time through letters under reference. However, it has been brought to the notice of BSNL Management that the circle are not following uniform policy regarding extension of EPF facility to the directly recruited staff of BSNL. In order to remove all such anomalies, BSNL Board has taken the following decision in its 61st meeting held on July11, 2005. a. That the benefit of EPF Scheme as per EPF & M.P.Act 1952, be extended to all the directly recruited employees of the company, either in temporary or permanent status; b. That the Basic Pay and IDA be taken for calculation of employers contribution to the EPF; c. That the company shall pay employers contribution @12% of monthly basic pay and IDA drawn by each directly recruited employee: d. That the company shall pay employers contribution at the rate proposed at above, on full basic pay and IDA drawn by each directly recruited employee during each month without limiting the same to Rs.6500 (Rs.Six thousand and five hundred only) e. That during the period of suspension, the company shall pay 12% of subsistence allowance (only the elements of Basic Pay and IDA of subsistence allowance) payable to directly recruited employer on suspension, as employers share of contribution towards EPF; and f. That Heads of Circles/regions/SSA & Units and the DDG (Personnel) in respect of directly recruited employees of the Circles/Regions/SSA & Units and Corporate Office respectively are authorized severally to submit request in writing on behalf of the company, i.e. Bharat Sanchar Nigam Limited (BSNL) to EPF authorities as required under paragraph 26(6) of EPF Scheme, 1952. BSNL authorities will pay the applicable administrative charges to EPF authorities. The concerned employee will pay Employees contribution @ 12% of monthly basic pay and IDA drawn by him. It is requested to implement the above mentioned decision of BSNL Board immediately. Past anomalies, if any, shall be settled in accordance with the decision of BSNLBoard mentioned above. A compliance report regarding implementation of Boards decision should be sent to this office for submission of Action taken report to the Management of BSNL. (BSNL HQ No.500-85/2004-CAII/BSNL/KW, dt. 12-8-2005) BSNL, India For Internal Circulation Only 69
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Point of doubt 1.Whether the food allowance provided to the non-executive employees from the financial year 2005-06 and onwards is to be included while calculating the employees and employers contribution 2.Whether the recovery at the revised rate will be effected in respect of past cases in view of circular no.44 dated 12-8-05 (BSNL HQ No.500-85/2004-CAII/BSNL
Clarification 1.No. The employees and employers contribution for EPF should be calculated @ 12% on Basic Pay plus IDA only as communicated vide circular No.44 dated 12-8-2005 2. Yes. In para 5 of the circular no.44 dated 12-8-2005, it has already been instructed to settle the past anomalies, if any. dt. 6-10-2005)
Sub:-Recovery of Arrears of EPF contribution from the employees recruited by BSNL Ref:- Letter no.500-85/CAII/BSNL/EPF/Vol II dated 18-7-2006 Kindly refer to the above mentioned letter vide which it was instructed to pay the arrears of EPF contribution toward employees share in one installment to EPFO by BSNL units initially and to recover the same from the pay and allowances of the concerned employees in six monthly installments. It was also instructed for not charging any interest from the employees for such payment by BSNL on behalf of the employees. Various Associations and officials have given their representation expressing their hardship to repay the arrears which was paid by BSNL, in six monthly installments and requested BSNL management to recover the arrears in easy installments so that their take home salary is not reduced much. The matter has been examined by the competent authority at BSNL corporate office and it has been decided that the remaining portion of arrears towards employees share of EPF contribution which has been paid by BSNL, shall be recovered from the pay & allowances of concerned employee on monthly basis @18% of Gross Salary per month or Rs.3000 per month whichever is lower. Therefore the remaining amount of recovery should be made in suitable installments in accordance with the above guidelines. However it is reiterated that the normal monthly recovery of EPF will be in addition to the installment of arrears. (BSNL HQNo.500-85/CA-II/BSNL/EPF/Vol II dt. 11-10-2006) EPF contribution in respect of labourers/employees employed by Contractors for execution of works of BSNL Of late Regional Provident Fund Commissioners of various States have started serving notice to the BSNL Circles/Units for non-compliance of provisions of EPF & Misc. Provisions Act, 1952 in respect of labourers/employees engaged by the contractors for carrying out works of BSNL. In some cases RPFC has also instructed BSNL, India For Internal Circulation Only 70
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the Circles to submit the details of the labourers/employees engaged by contractors for performing works of BSNL right from 1-10-2000 onwards. In view of above, the CS & GM (legal), Corporate office has issued instructions under No.BSNL/SECTT/25-4/2004 dt. 26-10-2004 elaborating the course action to be taken by the Circles in respect of contractors employees. It is requested to adhere to the instructions issued by the CS & GM (Legal). In additions the Circles and its Units may take the following action: (a) A clause specifying the terms and conditions towards fulfillment/compliance of the provisions of EPF & Misc. Provisions Act. 1952 & Employees Provident Fund Scheme 1952 by the Contractors in respect of labourers/employees engaged by them for performing the works of BSNL, may be inserted/added in the (i) Bid Documents (ii) orders issued for engagement of contractors for executions of works of BSNL (b) Conditions may also be included in the (i) Bid documents, (ii) orders issued for engagement of contractors/contract agreement, to the effect that each claim bill of contractors must accompany the (i) list showing the details of labourers/employees engaged (ii) duration of their engagement (iii) the amount of wages paid to such labourers/employees for the duration in question, (iv) amount of EPF contributions (both employers & employees contribution) for the duration of engagement in question, paid to the EPF authorities, (v) copies of authenticated documents of payments of such contribution to EPF authorities and (vi) a declaration from the contractors regarding compliance of the conditions of EPF Act. 1952. (c) While passing the bills of contractors, the bill passing authority must check the payment particulars regarding EPF contribution furnished by the contractors along with the bill as mentioned in para (b) above and keep full records of the payments etc. each contract wise. The bill will be passed by the bill passing authority only if the contractor complies with the terms and conditions of EPF Act. 1952. (d) The contract-wise information kept by bill passing authority as mentioned in para above may be produced to the EPF authorities as and when demanded by the latter. (e) The circles may take the legal advice from the local experts in dealing with the cases on EPF in respect of contractors labourers/employees. [BSNL HQ No.500-85/2004-CA-II/BSNL DT. 8-11-2004 addressed to all CGMs with copy to :1. The CGM, Chhattisgarh Telecom Circle, 2nd floor, Doorsanchar Bhawan, G.E.Road, Raipur-492001 for information with ref. to his No.SWP/CG/0303/EIP/PF/04-05/12 dt. 28-9-04. He is requested to take legal opinion for defending the present case. BSNL, India For Internal Circulation Only 71
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2. The GM(F), O/O the CGM Rajasthan Telecom Circle, Jaipur-302008 for information w.r.t. his no.A/cs 25-43/EPF/03-04/139 dt. 18-10-04. BSNL has extended the benefit of EPF scheme to its directly recruited employees on voluntary basis under Section 1(4) of EPF Act. 1952 as per approval given by the Management committee of BSNL Board. EPF Accounts for the directly recruited employees may be opened at SSA/PAU level. The present cases may kindly be defended legally. 3. All IFAs of BSNL Telecom Circles. 4. The DDG (Admn)/ADG(R&P), corporate Office, Statesman House, New Delhi] Clarifications regarding Temporary status Mazdoors and Casual Labourers regularized in BSNL on or after 1-10-2000 reg A number of references have been received from various circle/units on the issues of whether Temporary status Mazdoors as well as casual labourers regularized on or after 1-10-2000 are to be treated as BSNL employees, whether Presidential orders are to be issued and whether such employees will be covered under the GPF or EPF Act? 2. The above issues have been considered in consultation with the Department of Telecom and the Finance wing of BSNL and it has been decided that on TSMs/Casual Labourers including those appointed on compassionate grounds who have been regularized on or after 1-10-2000, will be treated as BSNL employees and as such, Presidential orders for absorption in BSNL are not required to be issued. 3. In view of above, further necessary orders relating to terminal/retirement benefits, Leave, EPF etc. shall be issued by the concerned branches of the Corporate office, separately. (BSNL HQ No.269-5/2005-Pers-IV dt. 10/4/2006) Counting of past services of the Temporary Status Mazdoors upon their absorption in BSNL-reg In supersession to previous orders for absorption in respect of temporary status mazdoors (TSMs), it has been decided that those Temporary Status Mazdoors who have been regularized in pursuance of this office letter no.269-94/98-STN-II dated 299-2000 were to be absorbed in BSNL w.e.f. 1-10-2000 as per their status as existing on 30-9-2000. Accordingly Presidential Orders may be issued in respect of those Temporary Status Mazdoors who were having TSM status prior to 30-9-2000 so as to allow them benefit of counting of 50% of the TSM period for pensionary benefits related service matters of these TSMs absorbed in BSNL w.e.f. 1-10-2000 may be resolved accordingly. It is further clarified that in respect of those casual labourers who were not having TSM status as on 30-9-2000 and who have regularized in BSNL after 1-10-2000, their status will be of a PSU appointee and therefore, no Presidential Order need be issued in such cases.
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Prior to issue of Presidential orders, the cases of eligible TSMs may be examined and forwarded through BSNL HQ for approval for issue of Presidential orders. The individual Presidential Orders will be issued at circle level under the signature of the Director (Estt.) designated for the issue of P.O. (DOT Lr.No.27-2/2006-SNG dt. 20-10-2006) Applicability of GPF/EPF scheme to the casual labourers Several references have been received from BSNL circles regarding applicability of Provident fund scheme in respect of casual labourers who have been regularized in BSNL on or after 1-10-2000 in view of CO BSNL letter no.269-5/2005-Pers-IV dated 10-4-2006. In this connection DOT has issued a clarification vide their OM no.27-2/2006SNG dated 20-10-2006 which has been circulated vide CO BSNL letter no.2695/2005-Pers-IV dated 31-10-2006 as per which the Temporary status Mazdoors who were having TSM status prior to 30-9-2000 and regularized in pursuance of DOT OM no.269-94/98-STN-II dated 29-9-2000 were to be absorbed in BSNL w.e.f. 1-10-2000 as per their status as existing on 30-9-2000 and accordingly Presidential orders may be issued so as to allow them benefit of counting of 50% of the TSM period for pensionary benefits. In view of this clarification these officials will be under the purview of GPF scheme like BSNL absorbed employees. It has also been clarified by DOT in their OM referred above that the casual labourers who were not having TSM status as on 30-9-2000 and who have been regularized in BSNL after 1-10-2000, their status will be of a BSNL (PSU) appointee. Therefore, these casual labourers will be covered under EPF scheme only. Necessary action for EPF contribution may kindly be taken by all the circles as per the laid down procedure. (BSNL HQ No.500-85/CA-II/BSNL/EPF/Vol III, dt. 23-3-2007) Sub:-Introduction of EPF Scheme Ref:-NO.BSNL/4/SR/2002 Vol III dated 4-5-2007 of ADG (SR-I), C.O. BSNL Kindly refer to the letter cited above, in which the status of certain category of employees has been clarified. As per the said clarification, the under mentioned category of employees have been treated as BSNL recruited employees only. (a) Casual labours not having Temporary status in DOT prior to 1-10-2000 who are regularized in BSNL (b) Employees appointed on compassionate ground where appointment order has been issued after 30-9-2000 by BSNL. In view of the clarification, necessary action may kindly be taken to introduce EPF scheme 1952 in respect of employees mentioned at serial (a) and (b) above. (BSNL HQ No.500-85/CA-II/BSNL/EPF/Vol III, dt. 10-5-2007) Allotment of Business Number and Social Security Number by EPF Authority As intimated by Regional PF Commissioner-I, Delhi(north), EPF authority is going to launch Project Reinventing EPF India which aims at BSNL, India For Internal Circulation Only 73
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Providing seamless trouble free service to establishments; Prompt and efficient customer service including disposal of member claims Under the Porject Reinventing EPF India, there will be two products viz., (a) Allotment of Business number to the establishment (b) Allotment of Social Security Number. Employees provident fund organization, HQ, New Delhi has also confirmed vide their leter dated 24-8-2007 that BSNL organizations may directly contact to Regional offices/Sub regional offices in whose jurisdiction their establishments are covered. Therefore it is requested kindly to direct all the unit heads under your circle jurisdiction to contact the EPF Regional Offices/Sub Regional offices where the EPF contributions are being remitted by the units, for getting the Business Number for the establishment to be allotted by EPF aurhority and SSN for the employees who contribute iin the EPF scheme. All the BSNL employees of the units, who are contributing towards EPF, should also submit their applications in the prescribed proforma for getting the Social Security Number, which will facilitate faster settlement of claims and extensionof other services. Format of applications for Business number and Social Security number and further details are available in the Website:www.epfindia.nic.in or www.epfindia.com (BSNL HQ No.500-85/2007/CAII/BSNL/KW, dt. 13-9-2007) CIRCULAR NO. 151 Ref : (1) This office letter no.500-85/CA II/BSNL/EPF/Vol III dated 14.03.2007 (2) This office letter no. 500-85/2004/CA II/BSNL/KW-I dated 03.04.2008 Sub : Non issue of Annual Statement of EPF Balances. In spite of issue of several instructions on the above mentioned subject complaints are being received in Corporate Office regarding non receipt of annual statement of EPF balances by the concerned employees as per provisions of EPF Scheme, 1952. In this context Action Point sl. No. 74 of the minutes of 14th HOCC held on 22nd & 23rd May 2008 on the above subject issue may also be referred to. It has been reported by the representative Unions/Associations of the BSNL that the direct recruit employees of BSNL are not getting the EPF statement in time nor their account no. allotted has been intimated to them. In the said meeting CMD has expressed his views that considering the merit of the cases, it needs to be resolved by the concerned CGMs on the priority basis as it is their money and they should know where it is going. In order to build confidence among the employees for whom BSNL is paying towards employer contribution regularly to EPF authorities, the following measures should be taken immediately by all the DDOs under your control :-
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1. Every month details of employees contribution, employee-wise as being deducted from the salary of each employee together with employers contribution may be displayed on the notice board positively. A proforma for displaying the same is enclosed in Annexure A. Concerned Employees Unions/Associations may also be given a copy of the same every month. This statement should be displayed immediately starting from the month of July08 for the contribution to be remitted in the month of August08.. 2. At the end of the financial year annual return is required to be submitted to the EPF authorities vide Form3A for every individual employee together with consolidation in Form6A. The specimen of the above forms are attached as Annexure B & C. Every individual employee should be given a photo copy of Form3A as furnished to EPF authorities. The photo copy of Form6A may be displayed on the Notice Board, so that the officials can also pursue with EPF authorities for early issue of annual statement of accounts. Copies of Form 3A & 6A as specified above may be given from financial year 2008-09 onwards and the photo copy of same may be supplied to individual employee positively by 30th April of each year. 3. As already intimated vide reference (2), the matter may be pursued with the concerned EPF authorities for furnishing the annual statement of EPF balances to the employees concerned through the employer as per para 73 of EPF scheme, 1952. You are also requested to monitor personally that annual statements are received from the EPF authorities in time in respect of each SSA under your control and the same have been handed over to the employee concerned properly under receipt. Enclo : As above. Copy to : (1) GM (Finance) / IFA of all BSNL Circle for ensuring the above instructions are strictly adhered with. (2) CGMT, IT Project Circle, Pune, with a request to explore the possibility so that Annexure A on monthly basis and Form 3A & 6A on annual basis can be generated from HRMS package DDO wise as reports. (BSNL HQNo. 500-85/CA II/BSNL/EPF/ Vol II Dated 11.08.2008)
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Rev. Date: 01-04-2011
Bharat Sanchar Nigam Limited (BSNL) has been formed w.e.f. 1.10.2000 by converting the erstwhile Department of Telecom. Services (DTS) and Department of Telecom. Operations (DTO). A need was therefore felt for formation of a separate cell in DOT to deal with the residual items of work relating to DOT and DTS. Accordingly, a DOT Cell Unit has been formed at each Telecom Circle Accounting unit. These units have been subsequently, renamed as offices of CCA (Controller of communication Accounts) from 27.06.2002 as per DOT letter NO.3-4/31/2000-SEA dated 27.06.2002. The constitution in general of a CCA office will be as follows: Controller of Communication Accounts in the grade of SAG from Accounts & Finance Service Joint CCA - in the grade of JAG from Accounts & Finance service. Deputy CCA -in the grade of STS from Accounts & finance service. Communication Accounts Officer in the grade Group B from Accounts & Finance service. Junior Communication Accounts Officer in the grade of Group B from Accounts & Finance services. The office establishment comprises of Senior Accountants, Junior Accountants and Lower Division Clerks etc. It is necessary that closing balances as on 30.09.2000 in respect of various transactions like loans and advances, GPF etc. are identified and balances agreed with the books of accounts are transferred to the DOT. In addition to the above, the recoveries made after 1.10.2000 in respect of the above transactions relating to DOT period are transferred to CCA regularly on month to month basis so as to enable the CCA to maintain necessary broad sheets for the same. ITEM 1 (A) The responsibilities of the SSAs in BSNL and the CCA unit in respect of items of work relating to erstwhile DOT/DTS employees who are on deemed deputation to BSNL and also for those who are absorbed in BSNL are summarized below:
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E2-E3/Finance S.NO ITEM WORK Settlement pension retirement benefits OF RESPONSIBILITY OF BSNL FIELD UNITS of Will process the pension & cases and other retirement cases and submit them direct to the circle CCA
Rev. Date: 01-04-2011 RESPONSIBILITY OF THE CCA UNIT. Will issue PPOs. Authorize DCRG, Commuted value of pension, family pension, insurance payment, GPF final payment.
Pension and Assess correctly and remit Will undertake collection leave salary regularly the amount of and employee wise contribution contribution to the CCA scrutiny. General Details of amount collected Will maintain employee Provident Fund and amounts paid will be wise GPF broad sheet. accounting intimated to the CCA unit. Recovery and Recovery particulars accounting of respect of such loans HBA and other advances already taken long term the employees prior advances corporatisation will intimated by the BSNL in & by to be Will maintain the official wise broad sheets and watch for complete recovery.
Settlement of Will co-ordinate with CCA Settlement will be done outstanding unit for early by the CCA in balances under reconciliation. collaboration with the remittance and BSNL suspense heads before transfer of firm figures to the balance sheet of the corporation
BSNL, India
77
E2-E3/Finance
Rev. Date: 01-04-2011
Settlement of To submit the claim for To settle the claim after USO subsidy subsidy every quarter exercising necessary claims checks
Important All claims of the govt. against the BSNL and those of the BSNL will be settled in Cash. Further , there should be no netting of BSNLs claims against the GPF contribution or pension contribution or leave salary contribution etc. A soft copy (floppy) and hard Copy (print out) of the schedules is to be given. Item 1 (B) The other functions of CCA office are as below: 1. Collection of license fees in the form of revenue sharing from various organizations on behalf of Govt. 2. Collection of service tax from the telecom service providers.(This has since been dispensed with and SSAs are now to remit the service tax amount directly to service tax authorities) 3. Will handle the budget, finance and accounting functions of the Wireless Monitoring Organization. 4. Handling realization and accounting of revenue in the form of license fee and royalty for use of spectrum. 5. Handle the budgeting, accounting and DDO functions of CCA unit. It may be seen from the list given at item 1(A) above, that it shall be the responsibility of the SSA units in BSNL to ensure that the monthly recoveries of GPF,CGEIS, Leave salary & Pension Contribution, Loans & advances etc. are made regularly and are transferred duly agreed in time every month to the CCA office. This work is required to be completed before 15th of the month following the month of account. The amount due should be remitted in the form of DD. It is important to note that the correctness of maintenance of accounts would depend upon the correctness and promptness with which the returns are submitted by the BSNL.
BSNL, India
78
E2-E3/Finance
Rev. Date: 01-04-2011
Levy of penalty for delayed payments to CCA: Of late undue delay has been observed in transferring the recoveries to the CCA unit. It has been therefore been decided by the Govt. that the corporation will be liable to pay penal interest on delayed pension contribution. The following are the details of rates of penal interest decided for levy provisionally by the DOT pending final approval by Ministry of Finance: (i) (ii) Delay in remittance of LSC/PC: Delay in remittance of GPF/L&A: As per SR 307(1)
2.5% above the applicable rate of interest. Interest will be charged from 1st of the month following the recovery, if payment is not made by the specified date. (iii) In case of CGEIS/CGEIS 2.5% of the ruling rate of interest on CGEIS per annum (Compounded quarterly). Interest will be charged from 1st of the month following the recovery, if payment is not made by the specified date. Claims if any, by BSNL on the CCAs/DOT may be preferred separately by 7 th of following month and CCA will settle the same within 7 days from the date of receipt of the claim.. No netting is allowed to be made from the recoveries or any other amount due and payable to CCAs/DOT. Actions suggested by the CCA for timely payment of pension to BSNL staff : So as to obviate the possible delays in settlement and to ensure that the pension and other retirement benefits are settled in time, the following schedule of action has been prescribed. (A) Supply of six monthly list of the officials due to retire with in the next 24 to 30 months: This should be supplied to the CCA office not later than 31 st of January or 31 st of July as the case may be. In the case of officials retiring for reasons other than superannuation, the office of CCA is to be informed as soon as the employee seeks retirement.
BSNL, India
79
E2-E3/Finance
Rev. Date: 01-04-2011
Preparation of Pension Papers: Immediate action should be taken to verify the qualifying service of all employees retiring within 2 years. Ensure 24 months before retirements that the Service Book contains the certificates of verification for the entire period of service. Wanting certificates if any should be called for and recorded in the SB. If service verification relating to a different unit is not forth coming, the official concerned may be asked to file a written statement certifying the service rendered producing supporting evidence. All Govt. dues to be ascertained in advance and kept ready. In case of death/voluntary retirement, the head of the office should start verifying qualifying service, dues, pending disciplinary cases if any, and try to obtain the pension papers to avoid delay in settlement of the case. The TA branch of the SSA should complete calculation of average emoluments 10 months before retirement of retiring officials. Pension papers in triplicate to be forwarded to the individual with in 8 months of the retirement. The pension case should be forwarded to the office of CCA by the TA wing of the SSA not later than 6 months before the date of retirement, duly ensuring that (i) the Joint photo is duly attested and pasted in the application. (ii) All columns in the data sheet are completed (iii) The calculations are correct. (iv) The bank account no. is clearly noted in the application if the govt. servant wishes to draw pension through the bank. (v) The place where the retiring govt.. Servant wishes to stay after retirement and whether the place covered under the CGHS or otherwise. Documents that should accompany the pension claims sent to the office of CCA: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Data sheet Pension application Photograph/Joint photograph Specimen signature slip-claimant Specimen signature slip-spouse Details of family members Nomination for DCRG/GPF/CGEIS Statement showing non-qualifying service Report of vfn. Of 25 yrs. Service Commutation application Two copies. Two Copies Two copies Two copies Two copies One Copy One copy One copy One copy One copy 80
BSNL, India
E2-E3/Finance 11. 12. 13. 14. 15. 16. 17. 18. Vig/disciplinary clearance Identification marks of the individual Identification marks of the spouse. Detailed calculation sheet No dues certificate Succession certificate. (in case of no nomination) LPC (Provisional/Final)
Rev. Date: 01-04-2011 One copy One copy One copy One copy One copy One copy One copy
BSNL, India
81
E2-E3/Finance Questions on Terminal Benefits:
Rev. Date: 01-04-2011
1. What are the conditions to sanction Encashment of Leave along with LTC? 2. What is formula to calculate Pension, Retirement Gratuity, Family Pension 3. Write about BSNL Employees Gratuity Trust Rules 4. How do you check the applications for withdrawals from GPF? 5. What are the benefits available in EPF Scheme? Write about contributions by employee, employer and administrative charges payable by BSNL. 6. What is the new name of DOT CELL? When it is formed? 7. When BSNL formed? 8. Is it possible netting of BSNLs claims against the GPF Contribution? 9. What are other functions of CCA office? 10. Levy of penalty for delayed payments to CCA Please elaborate? 11. Actions suggested by the CCA for timely payment of pension to BSNL staff? 12. Briefly explain the procedure of pension papers? 13. What are the documents should accompany the pension claims sent to the office of CCA?
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Chapter13.Terminal Benefits

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E2-E3/Finance

Rev. Date: 01-04-2011

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Terminal Benefits(Pension, Gratuity, Leave Encashment, GPF, EPF, DOT Cell)

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E2-E3/Finance 7 Qualifying Service

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E2-E3/Finance Calculation of Average Emoluments Points to be seen:

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E2-E3/Finance (DOT No.40-12/2007-Pen.(T) dt. 5-1-2009)

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