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L.I.C. OF INDIA (EMPLOYEES) PENSION RULES, 1995

 

 

LIFE INSURANCE CORPORATION OF INDIA

(EMPLOYEES) PENSION RULES, 1995

GSR 525(E) – In exercise of the powers conferred by Section 48 of the Life Insurance Corporation Act,1956

(31 of 1956), the Central Government hereby makes the following rules, namely :-

CHAPTER - I

PRELIMINARY

1. Short title and commencement -

(1) These rules may be called the Life Insurance Corporation of India (Employees) Pension Rules,

1995.

(2) Save as otherwise expressly provided in these rules, these rules shall be deemed to have come

into force on the Ist day of November, 1993.

2. Definitions - In these rules, unless the context otherwise requires -

(a) “Act” means the Life Insurance Corporation Act, 1956 (31 of 1956);

(b) “actuary” shall have the meaning assigned to it in clause (1) of Section 2 of the Insurance Act,

1938 (4 of 1938);

(c) “Appendix” means an Appendix annexed to these rules;

(d) “average emoluments” means the average of the pay drawn by an employee during the last ten

months of his service;

(e) “child” means a child of the employee, who, if a son, is under twenty-five years of age and if a

daughter, is unmarried and is under twenty-five years of age and the expression “children” shall

be construed accordingly;

(f) “Competent Authority” means,-

(i) in relation to employees belonging to the cadre of Assistant Administrative Officers and

employees belonging to Class II, Class III and Class IV, the Zonal Manager in-charge of the

Zone of the Corporation; and

(ii) in any other case, the appointing authority specified by Appendix I to these rules;

(g) “contribution” means any sum credited by the Corporation on behalf of an employee to the

Fund, but shall not include any sum credited as interest;

(h) “Corporation” means the Life Insurance Corporation of India established under Section 3 of the

Life Insurance Corporation Act, 1956 (31 of 1956);

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(i) “date of retirement” means the last day of the month in which an employee attains the age of

superannuation or the date on which he is retired by the Corporation or the date on which the

employee voluntarily retires;

(j) “employee” means any person employed in the service of the Corporation on full-time work on

permanent basis and who opts and is governed by these rules but does not include an employee

retired before the commencement of these rules and who is drawing pension from the Pension

Fund of the Oriental Government Security Life Assurance Company Limited in accordance with

sub-regulation(2) of regulation 76 of the Life Insurance Corporation of India (Staff) Regulations,

1960, made under the Act;

* Provided that where the Chairman of the Corporation appointed by the Central Government in

accordance with Section 4 of the Act was immediately preceding such appointment an

Employee of the Corporation, then, subject to the terms of any contract, agreement or letter of

appointment or directions issued by the Central Government, such Chairman for the purposes of

these rules shall also be deemed to be an employee of the Corporation.

(k) “family” in relation to an employee means,-

(i) wife in the case of a male employee or husband in the case of a female employee;

(ii) a judicially separated wife or husband, such separation not being granted on the ground of

adultery and the person surviving was not held guilty of committing adultery;

(iii) son who has not attained the age of twenty-five years and unmarried daughter who has not

attained the age of twenty five years including such son or daughter adopted legally

[......deleted ]*

(l) “financial year” means a year commencing on the first day of April;

(m) “Fund” means the Life Insurance Corporation of India (Employees) Pension Fund constituted

under rule 5;

(n) “notified date” means the date on which these rules are published in the Official Gazette;

+ Provided that the notified date in relation to employees mentioned in proviso to clause (j) shall

mean the date on which these Amendment Rules are published in Official Gazette.

**(o) “pay” includes,-

(i) the basic pay including the stagnation increments if any; and

(ii) all allowances counted for the purpose of making contribution to the Provident Fund and

for the payment of dearness allowance;

and

(iii) fixed personal allowance not exceeding the last increment in the scale of pay; if any,

and

(iv) in a case covered by the proviso to clause (j) or where the salary and other conditions have

been fixed with the approval of the Central Govt., the dearness allowance calculated upto

Index No.1148 in the All India Average Consumer Price Index for Industrial workers in the

series 1960=100 applied on the basic pay drawn by him in the scale of pay notified by the

Central Govt., for the post.

* & [ ]* Notified vide Govt. of India Notification dated 3.7.1996

+ Proviso added vide Govt. Notification dated 3.7.1996

** Clause ‘o’ as amended vide Govt. Notification dated 14.5.1999

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Provided that for the purpose of calculating average emoluments, as defined under sub-clause

(d) of rule 2, in respect of employees whose ten months’ period before retirement falls partly

under pre-revised pay scales and partly under the revised pay scales, the pay for the period for

which they have drawn pay as per pre-revised scales may be updated by including the dearness

allowance actually drawn by them or the dearness allowance upto the AICPI to which the revised

basic pay is pegged, whichever is less.

(p) “pension” includes the basic pension and the additional pension referred to in Chapter VI of

these rules;

(q) “pensioner” means an employee eligible for pension under these rules;

(r) “qualifying service” means the service rendered while on duty or otherwise which shall be taken

into account for the purpose of pension under these rules;

(s) “retirement” means,-

(i) retirement in accordance with the provisions contained in sub-regulation (1) or subregulation

(2) or sub-regulation (3) of regulation 19 of the Life Insurance Corporation of

India (Staff) Regulations, 1960 and rule 14 of the Life Insurance Corporation of India Class

III and Class IV Employees (Revision of Terms and Conditions of Service) Rules, 1985

made under the Act;

(ii) voluntary retirement in accordance with the provisions contained in rule 31 of these rules;

(t) “Service Rules” includes, -

(i) the Life Insurance Corporation of India Class I Officers (Revision of Terms and Conditions

of Service) Rules, 1985;

(ii) the Life Insurance Corporation of India Class III and Class IV Employees (Revision of Terms

and Conditions of Service) Rules, 1985;

(iii) the Life Insurance Corporation of India Development Officers (Revision of Terms and

Conditions of Service) Rules, 1986;

made under Section 48 of the Act;

(u) “Staff Regulations” means the Life Insurance Corporation of India (Staff) Regulations, 1960

made under the Act;

(v) “trust” means the trust of the Life Insurance Corporation of India (Employees) Pension Fund

constituted under sub-rule(1) of rule 5;

(w) “trustee” means the trustee of the Life Insurance Corporation of India (Employees) Pension Fund

constituted under rule 5;

(x) “trustee of the Provident Fund “ means the trustees of the Provident Fund of the Corporation;

(y) all other words and expressions used in these rules but not defined, and defined in the Act or the

Service Rules or the Staff Regulations shall have the same meanings respectively assigned to

them in the Act, the Service Rules or the Staff Regulations, as the case may be.

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CHAPTER II

APPLICATION AND ELIGIBILITY

3. Application - These rules shall apply to employees who,-

(1) (a) were in the service of the Corporation on or after the 1st day of January, 1986 but had

retired before the 1st day of November, 1993; and

(b) exercise an option in writing within one hundred and twenty days from the notified date to

become member of the Fund; and

(c) refund within sixty days after the expiry of the said period of one hundred and twenty days

specified in clause(b), the entire amount of the Corporation’s contribution to the Provident

Fund including interest accrued thereon together with a further simple interest at the rate

of six per cent per annum on the said amount from the date of settlement of the Provident

Fund account till the date of refund of the aforesaid amount to the Corporation; or

(2) (a) have retired on or after the 1st day of November, 1993 but before the notified date; and

(b) exercise an option in writing within one hundred and twenty days from the notified date to

become member of the Fund; and

(c) refund within sixty days after the expiry of the said period of one hundred and twenty days

specified in clause (b), the entire amount of the Corporation’s contribution to the Provident

Fund and interest accrued thereon together with a further simple interest at the rate of

twelve per cent per annum on the said amount from the date of settlement of the

Provident Fund account till the date of refund of the aforesaid amount to the Corporation;

or

(3) (a) are in the service of the Corporation before the notified date and continue to be in the

service of the Corporation on or after the notified date; and

(b) exercise an option in writing within one hundred and twenty days from the notified date to

become member of the Fund; and

(c) authorise the trust of the Provident Fund to transfer the entire contribution of the

Corporation to their Provident Fund alongwith the interest accrued thereon to the credit of

the Fund constituted for the purpose under rule 5; or

(4) join the service of the Corporation on or after the notified date; and

(5) were in the service of the Corporation during any time on or after the 1st day of November,

1993 and had died after retirement but before the notified date, their family shall be entitled for

the amount of pension payable to them from the ate on which they would have been entitled to

pension under these rules had they been alive till the date on which they died, if the family of the

deceased-

(a) exercise an option in writing within one hundred and twenty days from the notified date to

become member of the Fund; and

(b) refund within sixty days after the expiry of the said period of one hundred and twenty days

specified in clause (a) above, the entire amount of the Corporation’s contribution to the

Provident Fund and interest accrued thereon together with a further simple interest at the

rate of twelve per cent per annum from the date of settlement of the Provident Fund

account till the date of refund of the aforesaid amount to the Corporation ; or

(6) joined the service of the Corporation on or after the 1st day of November, 1993 but who have

died while in the service of the Corporation before the notified date, their family shall be entitled

to the family pension under these rules;

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Provided that the family of such a deceased employee refunds within one hundred and eighty

days from the notified date the entire amount of the Corporation’s contribution to the Provident

Fund, if any, and interest accrued thereon together with further simple interest at the rate of

twelve per cent per annum from the date of settlement of the Provident Fund account till the

date of refund of the aforesaid amount to the Corporation;

Provided further that the family of such a deceased employee shall apply in writing for grant of

family pension; or

(7) were in the service of the Corporation during any time on or after the 1st day of January, 1986

and had died while in service on or before the 31st day of October, 1993 or had retired on or

before the 31st day of October, 1993 but died before the notified date in which case their family

shall be entitled to the family pension under these rules, if the family of the deceased, -

(a) exercises an option in writing within one hundred and twenty days from the notified date to

become member of the Fund; and

(b) refund within sixty days after the expiry of the said period of one hundred and twenty days

specified in clause (a) above, the entire amount of the Corporation’s contribution to the

Provident Fund and interest accrued thereon together with a further simple interest at the

rate of six per cent per annum from the date of settlement of the Provident Fund account

till the date of refund of the aforesaid amount to the Corporation ;or

(8) joined the service of the Corporation on or before the 31st day of October, 1993 and who died

while in service on or after the 1st day of November, 1993, but before the notified date in which

case their families shall be entitled to family pension under these rules if the family of the

deceased employee,

(a) exercises an option in writing within one hundred and twenty days from the notified date to

become a member of the Fund; and

(b) refund within sixty days from the date of expiry of the said period of one hundred and

twenty days specified in clause (a) above, the entire amount of the Corporation’s

contribution to the Provident Fund, including interest accrued thereon, together with a

further simple interest at the rate of twelve per cent per annum from the date of

settlement of the Provident Fund account of the employee till the date of refund of the

aforesaid amount to the Corporation.

*(9) (a) joined the service of the Corporation before the 28th day of June, 1995, and are in its

service on the notified date;

(b) exercise an option in writing within one hundred and twenty days from the date of

publication of this notification to become member of the Fund; and

(c) authorised the trustees of the Provident Fund to transfer the entire contribution of the

Corporation to their Provident Fund alongwith the interest accrued thereon to the credit of

the Fund constituted for the purpose under Rule 5.

Note : For the purposes of this rule, other than sub-rule (3), “Notified date” shall mean the

date of publication of the Life Insurance Corporation of India (Employees) Pension

(Amendment) Rules, 1997.

4. Option to subscribe to the Provident Fund -

(1) Notwithstanding anything contained in sub-rule (4) of rule 3, an employee who joins the service

of the Corporation on or after the notified date at the age of thirty-five years or more, may,

within a period of ninety days from the date of his appointment, elect to forego his right to

pension, whereupon these rules shall not apply to him.

(2) The option referred to in sub-rule (1) and in rule 3, once exercised, shall be final.

* Sub-Rule 9 alongwith Note inserted vide Govt. Notification dated 22.4.1997.

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CHAPTER III

THE FUND

5. Constitution of the Fund -

(1) The Corporation shall constitute a Fund to be called the Life Insurance Corporation of India

(Employees) Pension Fund under an irrevocable trust within a period of one hundred and twenty

days from the notified date.

(2) The Fund shall have for its sole purpose the provision of the payment of pension or family

pension in accordance with these rules to the employee or his family.

(3) The Corporation shall be a contributor to the Fund and shall ensure that sufficient sums are

placed in it to enable the trustees to make due payments to beneficiaries under these rules.

6. Liability of the Provident Fund trust - The Provident Fund trust shall, immediately after the

constitution of the Fund, transfer to the Life Insurance Corporation of India (Employees) Pension Fund

the accumulated balance of the contribution of the Corporation to the Provident Fund and interest

accrued thereon upto the date of such transfer in respect of every employee.

7. Composition of the Fund - The Fund shall consist of the following, namely:-

(a) the contribution by the Corporation at the rate of ten per cent. per month of the pay of the

employee;

* Explanation 1 :

For the purpose of this rule “pay” includes -

(i) the basic pay,

(ii) allowances other than dearness allowance which count for the purposes of making

contribution to the Provident Fund and payment of dearness allowance,

(iii) dearness allowance payable on the basic pay and the allowances specified in clause (ii)

above, upto Index Number 1148 in the quarterly average of the All India Consumer Price

Index for Industrial Workers in the series 1960=100; and

(iv) allowances to the extent they count for Provident Fund, house rent allowance, gratuity and

for refixation of salary on promotion:

Provided that the Corporation shall not make any contribution to the account of the

Provident Fund of the employee ;

†Explanation 2 :

On and from the date of publication of Life Insurance Corporation of India (Employees) Pension

(Amendment) Rules, 1997, “pay” includes -

(i) the basic pay,

(ii) allowances other than dearness allowance which count for the purposes of making

contribution to the Provident Fund and also payment of dearness allowance,

(iii) allowances to the extent they count for Contribution to the Provident Fund, house rent

allowance, gratuity and for refixation of salary on promotion:

* Explanation renumbered as Explanation 1 by Notification dated 22.4.1997

† Explanation 2 inserted vide Govt. Notification dated 22.4.1997

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Provided that the Corporation shall not make any contribution to the account of the Provident

Fund of the employee ;

(b) the accumulated contributions of the Corporation to the Provident Fund and interest accrued

thereon upto the date of such transfer in respect of the employees;

(c) the amount consisting of contributions of the Corporation along with interest refunded by the

employees who had retired before the date of publication of these rules but who opt for pension

in accordance with the provisions contained in these rules;

(d) the investment in annuities or securities purchased out of the moneys of the Fund and interest

thereon;

(e) amount of any capital gains arising from the capital assets of the Fund;

(f) the additional annual contribution made by the Corporation in accordance with the provisions

contained in rule 11 of these rules;

(g) any income from investments of the amounts credited to the Fund;

(h) the amount consisting of contribution of the Corporation along with interest refunded by the

family of the deceased employee.

8. Board of Trustees -

(1) The Board of trustees shall consist of such number of persons not less than three and not more

than nine, as may be determined by the Corporation, to be appointed by the Corporation.

(2) The power to appoint the trustees shall be vested with the Corporation and all such

appointments shall be made in writing.

(3) The Corporation shall nominate one of the trustees to be the Chairman of the Board of trustees.

The Corporation shall also nominate a trustee to be an alternate Chairman who shall act as

Chairman in the absence of the Chairman.

9. Trustees to carry out the directions of the Corporation - The trustees shall comply with all such

directions as may be given by the Corporation for the proper functioning of the Fund.

10. Books of accounts of the Fund -

(1) The accounts of the Fund shall contain the particulars of all financial transactions relating to the

Fund in such form as may be specified by the Corporation.

(2) Within one hundred and eighty days from the closing of each financial year, the trust shall

prepare a financial statement of the trust indicating therein the general account of assets and

liabilities of the trust and forward a copy of the same to the Corporation.

(3) The accounts of the Fund shall be audited in accordance with the provisions of section 25 of the

Act.

11. Actuarial investigation of the Fund - The Corporation shall cause an investigation to be made by

an Actuary into the financial condition of the Fund every financial year, on the 31st day of March, and

make such additional annual contributions to the Fund as may be required to secure payment of the

benefits under these rules:

Provided that the Corporation shall cause an investigation to be made by an Actuary into the financial

condition of the Fund, as on the 31st of day of March immediately following the financial year in which

the Fund is constituted.

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12. Investment of the Fund - All moneys contributed to the Fund or received or accruing by way of

interest or otherwise to the Fund, shall, within a reasonable time from the date of the contribution,

receipt or accrual, as the case may be, be dealt in accordance with rule 85 and clause (ii) of rule 89

of the Income-tax Rules 1962, made under the Income-tax Act, 1961,(43 of 1961) and payable both

in respect of capital and interest in India as applicable in the Fund.

13. Payments out of the Fund - The payment of benefits by the trust shall be administered as follows,

namely:-

(a) the trust shall purchase immediate annuities from the Corporation in respect of each employee

or his family, as the case may be, at the time he or his family becomes eligible for the benefits

under these rules;

(b) the trust shall, subject to the availability of additional sums in the Fund, to be provided by the

Corporation as required under rule 5 (3) purchase additional annuities as and when it becomes

necessary to revise upwards the benefits payable in accordance with these rules;

(c) the trust shall, in the event of the benefits payable under these rules being revised downwards

for any reason whatsoever, credit the benefits received from the Corporation under the annuities

purchased as exceed the benefits payable under these rules, to the Fund.

207

CHAPTER - IV

QUALIFYING SERVICE

14. Qualifying Service - Subject to the other conditions contained in these rules, an employee who has

rendered a minimum ten years of service in the Corporation on the date of his retirement shall qualify

for pension.

15. Commencement of qualifying service - Subject to the provisions contained in these rules,

qualifying service of an employee shall commence from the date he takes charge of the post to which

he is first appointed on a regular basis.

16. Counting of service on probation - Service on probation against a post in the Corporation if

followed by confirmation in the same or another post shall qualify.

17. Counting of period spent on leave - All leave during service in the Corporation for which leave

salary is payable shall count as qualifying service:

Provided that extraordinary leave granted on medical certificate or on account of the employees’

inability to join or rejoin duty due to civil commotion, not exceeding twelve months during the entire

service, shall also count as qualifying service.

18. Qualifying service on re-appointment - Where,-

(a) a person is re-employed in accordance with the provisions contained in regulation 12 of the Staff

Regulations: or

(b) an employee being a Development Officer, whose services had been terminated in accordance

with the provisions contained in,-

(i) the notification of the Corporation No. 65(24)-Ins. III/7/74 dated the 21st April, 1976,

relating to Schedule III to the Staff Regulations; or

(ii) the notification of the Government of India, Ministry of Finance (Department of Economic

Affairs) No. G.S.R. 290(E) dated the 8th April, 1976 relating to the Life Insurance

Corporation Development Officers (Alteration of Remuneration and other Terms and

Conditions of Service) Order, 1976 issued under sub-section(2) of Section 11 of the Act; or

(iii) the notification of the Corporation dated the 19th December, 1978 relating to the

Schedule III to the Staff Regulations published in the Gazette of India Extraordinary

Part III - Section 4 on 19th December, 1978; or

(iv) the notification of the Government of India, Ministry of Finance (Department of Economic

Affairs) No. G.S.R. 584(E) dated the 19th December, 1978 relating to the Life Insurance

Corporation Development Officers (Alteration of Remuneration and other Terms and

Conditions of Service) Order, 1978 issued under sub-section(2) of Section 11 of the Act; or

(v) the notification of the Government of India, Ministry of Finance (Department of Economic

Affairs) No. G.S.R. 643(E) dated the 26th June, 1989 relating to the Life Insurance

Corporation of India Development Officers (Revision of Certain Terms and Conditions of

Service) Rules, 1989 issued under sub-section(2) of Section 48 of the Act,

and who is re-appointed in the service of the Corporation, the service of such a person or an

employee prior to his re-employment or re-appointment, as the case may be, shall be counted

in the qualifying service if he has paid to the Corporation at the time of such

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re-employment or re-appointment the aggregate of the Corporation’s contribution due to him in

the Provident Fund and the interest thereon which were paid to him on the determination of his

previous service:

Provided that :

(i) periods of extraordinary leave on loss of pay except as otherwise provided herein;

(ii) periods of unauthorised absence except as provided in rule 28 of these rules;

(iii) the service prior to his re-employment or re-appointment in the case of a person reemployed

or reappointed after he has resigned from the service of the Corporation;

shall not be counted as qualifying service.

19. Broken period of service of less than one year - If the period of service of an employee includes

broken period of service of less than one year, then if such broken period is more than six months it

shall be treated as one year and if such broken period is six months or less it shall be ignored.

20. Counting of period spent on training - Period spent by an employee on training in the

Corporation immediately before his appointment or re-employment or re-appointment shall count as

qualifying service.

21. Counting of past service with the erstwhile Insurer - Period of continuous service of a

“transferred employee” with an insurer shall qualify for pension:

Provided that such “transferred employee” was not eligible for any pension, annuity, gratuity in lieu of

pension or such other superannuation benefit in lieu of pension from the insurer in respect of his

service with such insurer.

22. Period of suspension - Period of suspension of an employee pending enquiry shall count for

qualifying service where, on conclusion of such enquiry, he has been fully exonerated or the

suspension is held to be wholly unjustified and, in other cases, the period of suspension shall not count

as qualifying service unless the competent authority passing the order under regulation 38 of the Staff

Regulations governing such cases expressly declares at the time that it shall count to such extent as

such authority may declare.

23. Forfeiture of service - Resignation or dismissal or removal or termination or compulsory retirement

of an employee from the service of the Corporation shall entail forfeiture of his entire past service and

consequently shall not qualify for pensionary benefits.

24. Period of deputation to foreign service - An employee deputed on foreign service to the United

Nations or any other foreign body or organisation may, at his option,-

(a) pay pension contribution in respect of his foreign service and count such service as qualifying

service under these rules; or

(b) avail of the retirement benefits admissible under the rules of the foreign employer and not count

such service as qualifying service under these rules:

Provided that where an employee opts for clause(b), retirement benefits shall be payable to him in

India in rupees from such date and in such manner as the Corporation may, by order, specify.

25. Military Service - An employee who has rendered military service before appointment or reemployment

or re- appointment in the Corporation shall continue to draw the military pension, if any,

and the military service rendered by the employee shall not count as qualifying service for

pension.

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26. Period of deputation to an organisation in India - Period of deputation of an employee to another

organisation in India will count as qualifying service:

Provided the organisation to which he is deputed or the employee pays the pensionary contributions at

the rates specified in sub-rule (a) of rule 7 of these rules, to the Corporation.

27. Addition to qualifying service in special circumstances - An employee shall be eligible to add

to his service qualifying for superannuation pension (but not for any other class of pension) the actual

period not exceeding one-fourth of the length of his service or the actual period by which his age at

the time of recruitment exceeded twenty-eight years, or a period of five years, whichever is less, if the

service or post to which the employee is appointed is one -

(a) for which post-graduate research, or specialist qualification or experience in scientific,

technological or professional fields is essential;

and

(b) to which candidates of more than twenty-eight years of age are normally recruited; and

(c) for which the candidate was given age relaxation over and above the maximum age limit fixed

by the Corporation on account of his possessing higher qualifications or experience:

Provided that this concession shall not be admissible to an employee unless his actual qualifying service

at the time he quits the service in the Corporation is not less than ten years:

Provided further that this concession shall be admissible only if the recruitment rules in respect of the

said service or post contain a specific provision that the service or post is one which carries the benefit

of this rule.

28. Condonation of interruption in service -

(1) In the absence of a specific indication to the contrary in the service records, an interruption

between two spells of service in the Corporation rendered by an employee including service

counted in terms of the various provisions contained in these rules shall be treated as

automatically condoned and the pre-interruption service treated as qualifying service.

(2) Nothing in sub-rule(1) shall apply to an interruption caused by resignation or dismissal or removal

or compulsory retirement or termination from service.

(3) The period of interruption referred to in sub- rule(2) shall not count as qualifying service.

29. Counting of service rendered on permanent part-time basis in certain cases -

(1) In the case of an employee who immediately prior to his appointment on a whole-time basis, was

employed on a permanent part-time basis in the service of the Corporation and was contributing

to the Provident Fund, such service rendered by him on a permanent part- time basis shall be

counted as qualifying service;

(2) The length of qualifying service of the employee referred to in sub-rule(1) for the purpose of

calculating the amount of pension shall be determined in accordance with Appendix II.

210

CHAPTER V

CLASSES OF PENSION

30. Superannuation Pension - Superannuation pension shall be granted to an employee who has retired

on his attaining the age specified in rule 14 of the Service Rules or sub-regulation (1) or subregulation(

2) of regulation 19 of the Staff Regulations.

31. Pension on voluntary retirement -

(1) At any time after an employee has completed twenty years of qualifying service he may,by

giving notice of not less than ninety days, in writing, to the appointing authority, retire from

service:

Provided that this sub-rule shall not apply to an employee who is on deputation unless after

having been transferred or having returned to India he has resumed charge of the post in India

and has served for a period of not less than one year:

Provided further that this sub-rule shall not apply to an employee who seeks retirement from

service for being absorbed permanently in an autonomous body or a public sector undertaking to

which he is on deputation at the time of seeking voluntary retirement.

(2) The notice of voluntary retirement given under sub-rule (1) shall require acceptance by the

appointing authority:

Provided that where the appointing authority does not refuse to grant the permission for

retirement before the expiry of the period specified in the said notice, the retirement shall

become effective from the date of expiry of the said period.

(3) (a) An employee referred to in sub-rule (1) may make a request in writing to the appointing

authority to accept notice of voluntary retirement of less than ninety days giving reasons

therefor;

(b) on receipt of a request under clause(a), the appointing authority may, subject to the

provisions of sub-rule (2), consider such request for the curtailment of the period of notice

of ninety days on merits and if it is satisfied that the curtailment of the period of notice will

not cause any administrative inconvenience, the appointing authority may relax the

requirement of notice of ninety days on the condition that the employee shall not apply for

commutation of a part of his pension before the expiry of the notice of ninety days.

(4) An employee, who has elected to retire under this rule and has given necessary notice to that

effect to the appointing authority, shall be precluded from withdrawing his notice except with the

specific approval of such authority:

Provided that the request for such withdrawal shall be made before the intended date of his

retirement.

(5) The qualifying service of an employee retiring voluntarily under this rule shall be increased by a

period not exceeding five years, subject to the condition that the total qualifying service rendered

by such employee shall not in any case exceed thirty-three years and it does not take him

beyond the date of retirement.

(6) The pension of an employee retiring under this rule shall be based on the average emoluments

as defined under clause(d) of rule 2 of these rules and the increase, not exceeding five years in

his qualifying service, shall not entitle him to any notional fixation of pay for the purpose of

calculating his pension.

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32. Invalid Pension -

(1) Invalid pension may be granted to an employee who,-

(a) has rendered minimum ten years of service; and

(b) retires from the service on account of any bodily or mental infirmity which permanently

incapacitates him for the service.

(2) An employee applying for invalid pension shall submit a medical certificate of incapacity from a

medical officer approved by the Corporation.

33. Compassionate Allowance -

(1) An employee, who is dismissed or removed or compulsorily retired or terminated from service,

shall forfeit his pension :

Provided that the authority competent to dismiss or remove or compulsorily retire or terminate

him from service may, if-

(i) such dismissal, removal, compulsory retirement or termination is on or after the 1st day of

November, 1993; and

(ii) the case is deserving of special consideration,

sanction a compassionate allowance not exceeding two-thirds of the pension which would have

been admissible to him on the basis of the qualifying service rendered upto the date of his

dismissal, removal, compulsory retirement or termination.

(2) The compassionate allowance sanctioned under the proviso to sub-rule (1) shall not be less than

the amount of the minimum pension payable under rule 36 of these rules.

34. Payment of pension or family pension in respect of employees who retired or died between

1.1.1986 and 31.10.1993 -

(1) Employees who have retired from the service of the Corporation between the 1st day of

January, 1986 and the 31st day of October, 1993 shall be eligible for pension with effect from

the 1st day of November, 1993.

(2) The family of a deceased employee governed by the provisions contained in sub-rule (7) of rule

3 shall be eligible for family pension with effect from the Ist day of November, 1993.

212

CHAPTER VI

RATE OF PENSION

35. Amount of Pension -

(1) In respect of employees who retired between the 1st day of January, 1986 but before the 31st

day of July, 1987, basic pension and additional pension will be updated as per the formula given

in Appendix-III.

(2) In the case of an employee retiring in accordance with the provisions of the Service Rules or of

the Staff Regulations after completing a qualifying service of not less than thirty three years the

amount of basic pension shall be calculated at fifty per cent. of the average emoluments.

(3) (a) Additional pension shall be fifty per cent. of the allowances drawn by an employee during

the last ten months of his service;

(b) no dearness relief shall be paid on the amount of additional pension.

Explanation : For the purpose of this sub-rule “allowances” means allowances which are

admissible to the extent counted for the following purposes only, namely:-

(i) making contributions to the Provident Fund;

(ii) grant of house rent allowance;

(iii) payment of gratuity; and

(iv) re-fixation of salary on promotion.

(4) Pension as computed being the aggregate of sub-rules (2) and (3) above shall be subject to the

minimum pension as specified in these rules.

(5) An employee who has commuted the admissible portion of his pension as per the provisions of

rule 41 of these rules shall receive only the balance of pension, monthly.

(6) (a) In the case of an employee retiring before completing a qualifying service of thirty-three

years, but after completing a qualifying service of ten years, the mount of pension shall be

proportionate to the amount of pension admissible under sub-rules (2) and (3) and in no

case the amount of pension shall be less than the amount of minimum pension specified in

these rules.

(b) Notwithstanding anything contained in these rules, the amount of invalid pension shall not

be less than the ordinary rate of family pension which would have been payable to his

family in the event of his death while in service.

(7) The amount of pension finally determined under this rule shall be expressed in whole rupee and

where the pension contains a fraction of a rupee, it shall be rounded off to the next higher

rupee.

*(8) Notwithstanding anything contained in these rules, in relation to an employee covered by the

proviso to clause (j) of rule 2 or an employee appointed as a Managing Director under Section

20 of the Act, Pension shall be calculated in accordance with the provisions of sub-rule(2). The

amount of Pension so calculated shall not be less than what he would have been entitled to, had

he continued in the grade of Zonal Manager (Selection Scale), when the Pension becomes due

and payable to him.

* Sub-Rule (8) added vide Govt.Notification dated 22.4.1997

213

36. **Minimum pension - The amount of minimum pension shall be,-

(a) rupees three hundred and seventy five per month in respect of an employee, belonging to Class-

III or Class-IV, who had retired or died before 1st August,1992 and in respect of employee

belonging to Class-I or Class-II, who had retired or died before 1st day of April, 1993.

(b) rupees seven hundred and twenty per month in respect of an employee belonging to Class-III or

Class-IV, who had retired or died on or after 1st August, 1992, and in respect of an employee

belonging to Class-I or Class-II, who had retired or died on or after 1st April, 1993.

***(c) rupees 1,100/- per month in respect of employees belonging to Class-I, Class-II, Class-III and

Class-IV, who have retired or died on or after the first day of August, 1997;

***(d) in case of any wage revision in future the amount of minimum pension payable to an employee

shall be determined by the Corporation corresponding to the index to which the scale is linked.

(The Corporation has determined that the amount of minimum pension shall be rupees 1480/-

per month in respect of employees belonging to Class-I, Class-II, Class-III and Class-IV, who have

retired or died on or after the first day of August, 2002);

37. Dearness Relief -

(1) Dearness relief shall be granted on basic pension or family pension or invalid pension or on

compassionate allowance in accordance with the rates specified in appendix IV.

(2) Dearness relief shall be allowed on full basic pension even after commutation.

38. Determination of the period of ten months for average emoluments -

(1) The period of the preceding ten months for the purpose of average emoluments shall be

reckoned from the date of retirement.

(2) In the case of voluntary retirement the period of the preceding ten months for the purpose of

average emoluments shall be reckoned from the date on which the employee voluntarily retires.

(3) In the case of dismissal or removal or compulsory retirement or termination of service the period

of the preceding ten months for the purpose of average emoluments shall be reckoned from the

date on which the employee is dismissed or removed or compulsorily retired or terminated by

the Corporation.

(4) If during the last ten months of the service an employee had been absent from duty on

extraordinary leave on loss of pay or had been under suspension and the period whereof does

not count as service, the aforesaid period of extraordinary leave or suspension shall not be taken

into account in the calculation of the average emoluments and an equal period before the ten

months shall be included.

** Rule 36 was amended vide Govt. Notification No. GSR 349(E), Part-II, Section 3, Sub-section (i) dated 14.5.1999.

*** Notified in Gazette of India, Part-III Section 3 dated 22.6.2000 (GSR No. 553(E)).

214

CHAPTER VII

FAMILY PENSION

39. Family Pension

(1) Without prejudice to the provisions contained in these rules where an employee dies -

(a) after completion of one year of continuous service; or

(b) before completion of one year of continuous service, provided the deceased employee

concerned immediately prior to his appointment to the service or post was examined by a

medical officer approved by the Corporation and declared fit for employment in the

Corporation; or

(c) after retirement from service and was on the date of death in receipt of a pension, or

compassionate allowance;

the family of the deceased shall be entitled to family pension, the amount of which shall be

determined in accordance with Appendix V.

(2) The amount of family pension shall be fixed at monthly rates and be expressed in whole rupees

and where the family pension contains a fraction of a rupee, it shall be rounded off to the next

higher rupee:

Provided that in no case a family pension in excess of the maximum prescribed under these

rules shall be allowed.

(3) (a) (i) Where an employee, who is not governed by the Workmen’s Compensation Act,

1923 (8 of 1923), dies while in service after having rendered not less than seven

years’ continuous service, the rate of family pension payable to the family shall be

equal to fifty per cent of the pay last drawn or twice the family pension admissible

under sub-rule(1), whichever is less, and the amount so admissible shall be payable

from the date following the date of death of the employee for a period of seven years

or for a period up to the date on which the deceased employee would have attained

the age of sixty five years had he survived, whichever is less;

(ii) in the event of death of an employee after retirement, the family pension as

determined under clause (a) or clause (b) of this sub-rule shall be payable for a period

of seven years or for a period up to the date on which the retired deceased

employee would have attained the age of sixty five years had he survived, whichever

is less;

(b) (i) where an employee, who is governed by the Workmen’s Compensation Act, 1923 (8

of 1923), dies while in service after having rendered not less than seven years’

continuous service, the rate of family pension payable to the family shall be equal to

fifty per cent of the pay last drawn or one and half times the family pension

admissible under sub-rule (1), whichever is less;

(ii) the family pension so determined under sub- clause (i)shall be payable for the period

mentioned in clause(a);

(c) after the expiry of the period referred to in clause (a), the family, in receipt of family

pension under that clause or clause (b) shall be entitled to family pension at the rate

admissible under sub-rule (1).

4) Notwithstanding anything contained in these rules where the family of a deceased employee opts

for pension in accordance with sub-rule (5) of rule 3 or is governed by the provisions contained

in sub-rules (6) or (7) or (8) of rule 3 ,such family of the deceased shall be eligible for family

pension under these rules.

215

40. Period of payment of family pension -

(1) The period for which family pension is payable shall be,-

(a) in the case of a widow or a widower, upto the date of death or re-marriage, whichever is

earlier;

(b) in the case of a son, until he attains the age of twenty-five years; and

(c) in the case of an unmarried daughter, until she attains the age of twenty-five years or until

she gets married, whichever is earlier:

Provided that if the son or daughter of an employee is suffering from any disorder or

disability of mind or is physically crippled or disabled so as to render him or her unable to

earn a living even after attaining the age of twenty- five years, the family pension shall be

payable to such son or daughter for life subject to the following conditions, namely:-

(i) if such son or daughter is one among two or more children of the employee, the

family pension shall be initially payable to the minor children in the order set out in

clause (e) of sub-rule(1) until the last minor child attains the age of twenty-five and

thereafter the family pension shall be resumed in favour of the son or daughter

suffering from disorder or disability of mind or who is physically crippled or disabled

and shall be payable to him or her for life;

(ii) if there are more than one such children suffering from disorder or disability of mind

or who are physically crippled or disabled, the family pension shall be paid in the

order of their birth and the younger of them will get the family pension only after the

elder next above him or her ceases to be eligible:

Provided that where the family pension is payable to such twin children it shall be

paid in the manner set out in clause (f) of sub-rule (1);

(iii) the family pension shall be paid to such son or daughter through the guardian as if he

or she were a minor except in the case of a physically crippled son or daughter who

has attained the age of majority;

(iv) before allowing the family pension for life to any such son or daughter, the

Competent Authority shall satisfy that the handicap is of such a nature as to prevent

him or her from earning his or her livelihood and the same shall be evidenced by a

certificate obtained from a medical officer approved by the Corporation, setting out,

as far as possible, the exact mental or physical condition of the child;

(v) the person receiving the family pension as guardian of such son or daughter or such

son or daughter not receiving the family pension through a guardian shall produce

every three years a certificate from a medical officer approved by the Corporation to

the effect that he or she continues to suffer from disorder or disability of mind or

continues to be physically crippled or disabled.

Explanation. The grant of family pension to disabled children beyond the age limit

specified in this sub-rule is subject to the following conditions, namely:-

(i) a daughter shall become ineligible for family pension under this sub-rule from

the date she gets married;

(ii) the family pension payable to such son or daughter shall be stopped if he or she

starts earning his or her livelihood. In such cases it shall be the duty of the

guardian or son or daughter to furnish a certificate to the Corporation every

month that -

(A) he or she has not started earning his or her livelihood;

(B) in case of daughter that she has not yet married;

216

(d) if a deceased employee or pensioner leaves behind a widow or widower, the family

pension shall become payable to the widow or widower, failing which to the eligible child;

(e) family pension to the children shall be payable in the order of their birth and the younger

of them shall not be eligible for family pension unless the elder next above him or her has

becomes ineligible for the grant of family pension;

Provided that where the family pension is payable to twin children it shall be paid in the

manner set out in clause (f) of the sub-rule (1);

(f) where the family pension is payable to twin children it shall be paid to such children in

equal shares:

Provided that where one such child ceases to be eligible, his or her share shall revert to the

other child and where both of these cease to be eligible, the family pension shall be

payable to the next eligible single child or twin children, as the case may be.

(2) Where a deceased employee or a pensioner leaves behind more children than one, the eldest

eligible child shall be entitled to the family pension for the period mentioned in clauses (b) or (c)

of sub- rule(1), as the case may be, and after the expiry of that period the next child shall

become eligible for the grant of family pension.

(3) Where family pension is granted under this rule to a minor, it shall be payable to the guardian

on behalf of the minor.

(4) In case both wife and husband are employees of the Corporation and are governed by the

provisions of this rule and one of them dies while in service or after retirement, the family

pension in respect of the deceased shall be payable to the surviving husband or wife and in the

event of death of the husband or wife, the surviving child or children shall be granted the two

family pensions in respect of the deceased parents subject to the limits specified below, namely:-

(a) if the surviving child or children is or are eligible to draw two family pensions at the rates

mentioned in sub-clause(i) of clause (a) and sub- clause(i) of clause(b) of sub-rule (3) of rule

39 the amount of both pensions shall be limited to two thousand five hundred rupees only

per mensem in respect of employees who retired or died while in service prior to the 1st

day of November, 1993 and four thousand eight hundred rupees per mensem only in

respect of employees who retired or died on or after the 1st day of November, 1993;

(b) if one of the family pensions ceases to be payable at the rates mentioned in sub-clause (i)

of clause(a) or sub-clause (i) of clause (b) of sub- rule (3) of rule 39 and in lieu thereof the

family pension at the rate mentioned in sub-rule(1) of rule 39 becomes payable, the

amount of both the pensions shall also be limited to two thousand five hundred rupees per

mensem in respect of employees who retired or died while in service prior to the 1st day

of November, 1993 and four thousand eight hundred rupees per mensem in respect of

employees who retired or died on or after the 1st day of November, 1993 ;

(c) if both the family pensions are payable at the rate mentioned in sub-rule (1) of rule 39 the

amount of the two pensions shall be limited to one thousand two hundred and fifty rupees

per mensem in the case of employees who retired or died while in service prior to the 1st

day of November, 1993 and two thousand four hundred rupees per mensem in respect of

employees who retired or died on or after the 1st day of November, 1993.

*Note : In this sub-rule, for the figures and words “1st day of November, 1993” the figures and

words “1st day of August, 1992”, shall be substituted in respect of employees belonging to

Class-III or Class-IV who have retired or died on or after 1st day of August, 1992 and the figures

and words “1st day of April, 1993” shall be substituted in respect of Officers belonging to

Class-I and Class-II who have retired or died on or after 1st day of April, 1993.

* Note to sub-rule 4 of Rule 40 which was inserted vide Govt. Notification dated 22.4.1997 has been amended vide Govt.

Notification dated 14.5.1999.

217

(5) (a) Where family pension is payable to more widows than one, the family pension shall be paid

to the widows in equal shares;

(b) on the death of a widow, her share of the family pension shall become payable to her

eligible child:

Provided that if the widow is not survived by any child, her share of the family pension shall

not lapse but shall be payable to the other widows in equal shares, or if there is only one

such other widow, in full, to her;

(c) where the deceased employee or pensioner is survived by a widow but has left behind

eligible child or children from another wife who is not alive, the eligible child or children

shall be entitled to the share of family pension which the mother would have received if she

had been alive at the time of the death of the employee or pensioner:

Provided that on the share or shares of family pension payable to such a child or children

or to a widow or widows ceasing to be payable, such share or shares shall not lapse, but

shall be payable to the other widow or widows or to other child or children otherwise

eligible, in equal shares, or if there is only one widow or child, in full, to such widow or

child;

(d) where the family pension is payable to twin children it shall be paid to such children in the

manner specified in clause (f) of sub-rule (1) above;

(e) except as provided in this sub-rule the family pension shall not be payable to more than

one member of the family at the same time.

(6) Where a female employee or male employee dies leaving behind a judicially separated husband

or widow and no child or children, the family pension in respect of the deceased shall be payable

to the person surviving:

Provided that where in a case the judicial separation is granted on the ground of adultery and

the death of the employee takes place during the period of such judicial separation, the family

pension shall not be payable to the person surviving if such person surviving was held guilty of

committing adultery.

(7) (a) Where a female employee or male employee dies leaving behind a judicially separated

husband or widow with a child or children, the family pension payable in respect of the

deceased shall be payable to the surviving person provided he or she is the guardian of

such child or children;

(b) where the surviving person has ceased to be the guardian of such child or children, such

family pension shall be payable to the person who is the actual guardian of such child or

children.

(8) If the son or unmarried daughter eligible for the grant of family pension has attained the age of

eighteen years, the family pension may be paid to such son or unmarried daughter directly.

(9) (a) If a person who, in the event of death of an employee while in service, is eligible to receive

family pension under these rules is charged with the offence of murdering the employee or

for abetting in the commission of such an offence, the claim of such a person, including

other eligible member or members of the family to receive the family pension, shall remain

suspended till the conclusion of the criminal proceedings instituted against him;

(b) if on the conclusion of the criminal proceedings referred to in clause(a),the person

concerned -

(i) is convicted for the murder or abetting in the murder of the employee, such a person

shall be debarred from receiving the family pension which shall be payable to the

other eligible member of the family, from the date of death of the employee;

(ii) is acquitted of the charge of murder or abetting in the murder of the employee, the

family pension shall be payable to such a person from the date of death of the

employee;

(c) the provisions of sub-clauses (a) and (b) shall also apply for the family pension becoming

payable on the death of an employee after his retirement.

218

CHAPTER-VIII

COMMUTATION

41. Commutation -

(1) An employee shall be entitled to commute for a lump sum payment of a fraction not exceeding

one-third of his pension:

Provided that in respect of an employee who is governed by sub-rule (5) of rule 3 of these rules,

the family of such employee shall also be entitled to commute for a lump sum payment a

fraction not exceeding one-third of the pension admissible to the employee.

(2) An employee shall indicate the fraction of pension which he desires to commute and may either

indicate the maximum limit of one-third pension or such lower limit as he may desire to

commute.

(3) If fraction of pension to be commuted results in fraction of rupee, such fraction of a rupee shall

be ignored for the purpose of commutation.

(4) The lump sum payable to an applicant shall be calculated in accordance with the Table given

below:-

TABLE

Commutation Values for a pension of Re. one per annum

Age next Commutation Age next Commutation Age next Commutation

birthday value expressed birthday value expressed birthday value expressed

as number of as number of as number of

year’s purchase year’s purchase year’s purchase

17 19.28 42 15.40 67 7.85

18 19.20 43 15.15 68 7.53

19 19.11 44 14.90 69 7.22

20 19.01 45 14.64 70 6.91

21 18.91 46 14.37 71 6.60

22 18.81 47 14.10 72 6.30

23 18.70 48 13.82 73 6.01

24 18.59 49 13.54 74 5.72

25 18.47 50 13.25 75 5.44

26 18.34 51 12.95 76 5.17

27 18.21 52 12.66 77 4.90

28 18.07 53 12.35 78 4.65

29 17.93 54 12.05 79 4.40

30 17.78 55 11.73 80 4.17

31 17.62 56 11.42 81 3.94

32 17.46 57 11.10 82 3.72

33 17.29 58 10.78 83 3.52

34 17.11 59 10.46 84 3.32

35 16.92 60 10.13 85 3.13

36 16.72 61 9.81

37 16.52 62 9.48

38 16.31 63 9.15

39 16.09 64 8.82

40 15.87 65 8.50

41 15.64 66 8.17

219

Notes :-

(1) The Table above indicates the commuted value of pension expressed as number of years’

purchase with reference to the age of the pensioner as on his next birthday. The

commuted value in the case of an employee retiring at the age of fifty eight years is 10.46

years’ purchase and, therefore, if he commutes rupees one hundred from his pension

within one year of retirement, the lump sum amount payable to him works out to

Rs.100 X 10.46 X 12 = Rs.12,552.

(2) An employee who had commuted the admissible portion of pension is entitled to have the

commuted portion of the pension restored after the expiry of a period of fifteen years

from the date of commutation.

(3) An applicant who is authorised a superannuation pension, voluntary retirement pension,

invalid pension or compassionate allowance shall be eligible to commute a fraction of his

pension under these rules.

(4) In the case of a pensioner eligible for superannuation pension or pension on voluntary

retirement, no medical examination shall be necessary, if the application for commutation

is made within one year from the date of retirement. However, if such a pensioner applies

for commutation of pension after one year from the date of his retirement, the same will

be permitted subject to medical examination.

Explanation.- An applicant who -

(i) retires on invalid pension under rule 32 of these rules, or

(ii) is in receipt of compassionate allowance under rule 33 of these rules,

shall be eligible to commute a fraction of his pension subject to the limit

specified in sub-rule (1) after he has been declared fit by a medical officer

approved by the Corporation.

(5) The commutation of pension shall become absolute in the case of an employee -

(a) retiring on superannuation or voluntary retirement who submits an application for

commutation of pension before the date of retirement, on the date following the date

of retirement :

Provided that the employee governed by sub-rule(3) of rule 31 shall not apply for

commutation of a part of his pension before the expiry of the notice of three months

and the commutation of pension shall become absolute only on the expiry of the

period of notice referred to in sub-rule (1) of rule 31;

(b) retiring on superannuation or on voluntary retirement if he applies for commutation

of pension after the date of retirement but before the completion of one year from

the date of retirement, on the date the application for commutation is received by

the Competent Authority;

(c) retiring on superannuation or on voluntary retirement, if he applies for commutation

of pension after one year from the date of retirement, on the date of the medical

certificate given by a medical officer approved by the Corporation;

(d) who has retired prior to the 1st day of November, 1993 and who opts to be

governed by these rules, on the 1st day of November, 1993, where the application

for commutation is made within the period specified by clause (b) of the sub-rule (1) of

rule 3;

220

(e) who was in the service of the Corporation on or after the 1st day of November, 1993

but who retired prior to the publication of these rules, on the day immediately

following the date of his retirement, where the application is made within the period

specified by clause (b) of sub- rule (2) of rule 3;

(f) who retired on or after the 1st day of November, 1993, but died prior to the notified

date, on the day immediately following the date of his retirement, where the

application for commutation is made by the family of the deceased within the period

specified by clause (a) of sub-rule(5) of rule 3;

(g) in respect of whom invalid pension under rule 32 or compassionate allowance under

rule 33 is admissible, commutation shall become absolute on the date of the medical

certificate given by a medical officer approved by the Corporation.

221

CHAPTER-IX

GENERAL CONDITIONS

42. Pension subject to future good conduct - Future good conduct shall be an implied condition of every

grant of pension and its continuance under these rules.

43. Withholding or withdrawal of Pension - The Competent Authority may, by order in writing, withhold

or withdraw a pension or a part thereof, whether permanently or for a specified period, if the

pensioner is convicted of a serious crime or is found guilty of grave misconduct:

Provided that where a part of pension is withheld or withdrawn, the amount of such pension shall not

be reduced below the minimum pension per mensem payable under these rules.

44. Conviction by Court - Where a pensioner is convicted of a serious crime by a Court of Law, action

shall be taken in the light of the judgement of the court relating to such conviction.

45. Pensioner guilty of grave misconduct - In a case not falling under rule 44 if the Competent

Authority considers that the pensioner is prima facie guilty of grave misconduct, it shall, before passing

an order, follow the procedure specified in regulation 39 of the Staff Regulations.

46. Provisional pension -

(1) An employee who has retired on attaining the age of superannuation or otherwise and against

whom any departmental or judicial proceedings are instituted or where departmental

proceedings are continued, a provisional pension, equal to the maximum pension which would

have been admissible to him, would be allowed subject to adjustment against final retirement

benefits sanctioned to him, upon conclusion of the proceedings but no recovery shall be made

where the pension finally sanctioned is less than the provisional pension or the pension is

reduced or withheld etc, either permanently or for a specified period.

(2) In such cases the gratuity shall not be paid to such an employee until the conclusion of the

proceedings against him. The gratuity shall be paid to him on conclusion of the proceedings

subject to the decision of the proceedings. Any recoveries to be made from an employee shall be

adjusted against the amount of gratuity payable.

Explanation - In this chapter -

(a) the expression ‘serious crime’ includes a crime involving an offence under the Official

Secrets Act, 1923 (19 of 1923);

(b) the expression “grave misconduct” includes the communication or disclosure of any secret

official code or password or any sketch, plan, model, article, note, document or

information, such as is mentioned in section 5 of the Official Secrets Act, 1923 (19 of

1923) (which was obtained while holding an office in the Corporation) so as to prejudicially

affect the interests of the general public or the security of the State.

47. Commutation of pension during departmental or judicial proceedings - An employee against

whom departmental or judicial proceedings have been instituted before the date of his retirement or

a person against whom such proceedings are instituted after the date of his retirement, shall not be

eligible to commute a fraction of his provisional pension, or pension, as the case may be, authorised

under these rules, during the pendency of such proceedings.

48. Recovery of Pecuniary loss caused to the Corporation -

(1) The Competent Authority may withhold or withdraw a pension or a part thereof, whether

permanently or for a specified period, and order recovery from pension of the whole or part of

222

any pecuniary loss caused to the Corporation if in any departmental or judicial proceedings the

pensioner is found guilty of grave misconduct or negligence during the period of his service :

Provided that the Executive Committee shall be consulted before any final orders are passed:

Provided further that departmental proceedings, if instituted while the employee was in service,

shall, after the retirement of the employee, be deemed to be proceedings under this rule and

shall be continued and concluded by the authority by which they were commenced in the same

manner as if the employee had continued in service:

Provided also that no departmental or judicial proceedings, if not initiated while the employee

was in service, shall be instituted in respect of a cause of action which arose or in respect of an

event which took place more than four years before such institution.

(2) Where the Competent Authority orders recovery of the pecuniary loss from the pension, the

recovery shall not ordinarily be made at a rate exceeding one-third of the pension admissible on

the date of retirement of the employee:

Provided that where a part of pension is withheld or withdrawn, the amount of pension drawn by

a pensioner shall not be less than the minimum pension payable under these rules.

49. Recovery of Corporation’s dues - The Corporation shall be entitled to recover the dues to the

Corporation on account of housing loans, advances, license fees, other recoveries and recoveries due

to staff co-operative credit society from the commutation value of the pension or the pension or the

family pension.

50. Commercial employment after retirement -

(1) If a pensioner who, immediately before his retirement was holding the post of an officer

belonging to the cadre of Divisional Manager or above and wishes to accept any commercial

employment before the expiry of two years from the date of his retirement, he shall obtain the

previous sanction of the Corporation to such acceptance:

Provided that an employee who was permitted by the Corporation to take up a particular form

of commercial employment during his leave preparatory to retirement or during refused leave

shall not be required to obtain subsequent permission for his continuance in such employment

after retirement.

(2) Subject to the provision of sub-rule (3), the Corporation may, by order in writing, on the

application by a pensioner, grant, subject to such conditions, if any, as it may deem necessary,

permission, or refuse, for reasons to be recorded in the order, permission to such pensioner to

take up the commercial employment specified in the application.

(3) In granting or refusing permission under sub-rule (2) to a pensioner for taking up any

commercial employment, the Corporation shall have regard to the following factors, namely:

(a) the nature of the employment proposed to be taken up and the antecedents of the

employer;

(b) whether his duties in the employment which he proposes to take up might be such as to

bring him into conflict with the Corporation;

(c) whether the pensioner while in service had any such dealing with the employer under

whom he proposes to seek employment as it might afford a reasonable basis for the

suspicion that such pensioner had shown favours to such employer;

(d) whether the duties of the commercial employment proposed involve liaison or contact work

with Corporation;

223

(e) whether his commercial duties will be such that his previous official position or knowledge

or experience under Corporation could be used to give the proposed employer an unfair

advantage;

(f) the emoluments offered by the proposed employer; and

(g) any other relevant factor.

(4) Where within a period of sixty days of the date of receipt of an application under sub-rule (3),

the Corporation does not refuse to grant the permission applied for or does not communicate

the refusal to the applicant, the Corporation shall be deemed to have granted the permission

applied for:

Provided that in any case where defective or insufficient information is furnished by the applicant

and it becomes necessary for the Corporation to seek further clarifications or information from

him, the period of sixty days shall be counted from the date on which the defects have been

removed or complete information has been furnished by the applicant.

(5) Where the Corporation grants the permission applied for subject to any conditions or refuses

such permission, the applicant may, within thirty days of the receipt of the order of the

Corporation to that effect, make a representation against any such condition or refusal and the

Corporation may make such orders thereon as it deems fit:

Provided that no order other than an order cancelling such condition or granting such permission

without any conditions shall be made under this sub-rule without giving the pensioner making the

representation an opportunity to show cause against the order proposed to be made.

(6) If any pensioner takes up any commercial employment at any time before the expiry of two

years from the date of his retirement without the prior permission of the Corporation or commits

a breach of any condition subject to such permission to take up any commercial employment has

been granted to him under this rule, it shall be competent for the Corporation to declare by

order in writing and for reasons to be recorded therein that he shall not be entitled to the whole

or such part of the pension and for such periods as may be specified in the order:

Provided that no such order shall be made without giving the pensioner concerned an

opportunity of show cause against such declaration:

Provided further that in making any order under this sub-rule, the Corporation shall have regard

to the following factors, namely:

(i) the financial circumstances of the pensioner concerned;

(ii) the nature of, and the emoluments from, the commercial employment taken up by the

pensioner concerned; and

(iii) any other relevant factor.

(7) Every order passed by the Corporation under this rule shall be communicated to the pensioner

concerned.

(8) In this rule,

(a) the expression “commercial employment” means -

(i) an employment in any capacity including that of an agent, under a company, cooperative

society, firm or individual engaged in trading, commercial, industrial,

financial or professional business and includes also a directorship of such company

and partnership of such firm, but does not include employment under a body

corporate, wholly or substantially owned or controlled by the Central Government or

a State Government;

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(ii) setting up practice, either independently or as a partner of a firm, as adviser or

consultant in matters in respect of which the pensioner_

(A) has no professional qualifications and the matters in respect of which the

practice is to be set up or is carried on are relatable to his official knowledge or

experience, or

(B) has professional qualifications but the matters in respect of which such practice

is to be set up are such as are likely to give his clients an unfair advantage by

reason of his previous official position, or

(C) has to undertake work involving liaison or contact with the offices or officers of

the Corporation.

Explanation - For the purpose of this clause, the expression “employment under a

co-operative society” includes the holding of any office, whether elective or otherwise,

such as that of President, Chairman, Manager, Secretary, Treasurer and the like, by

whatever name called in such society.

51. Nomination

(1) The trust shall allow every employee governed by these rules to make a nomination conferring

on one or more persons the right to receive the amount of pensionary benefits under these rules

in the event of his death before that amount becomes payable or, having become payable, has

not been paid. Such nomination shall be made in such form as may be specified by the

Corporation from time to time.

(2) If any employee nominates more than one person under sub-rule (1), he shall, in his nomination,

specify the amount or share payable to each of the nominees in such a manner as to cover the

whole of the amount of the pensionary benefits that may be payable in the event of his death.

(3) A nomination made by an employee may, at any time, be modified or revoked by him after

giving a written notice to the trust of his intention of doing so in such form as the Corporation

may from time to time specify.

(4) A nomination or its revocation or its modification shall take effect to the extent it is valid on the

date on which it is received by the trust.

52. Date from which pension becomes payable -

(1) Except in the case of an employee to whom the provisions of rule 43 and rule 46 apply a

pension other than family pension shall become payable from the date following the date on

which an employee retires.

(2) Family pension shall become payable from the date following the date of death of the employee

or the pensioner.

(3) Pension including family pension shall be payable for the day on which its recipient dies.

53. Currency in which pension is payable - All pensions admissible under these rules shall be payable

in rupees in India only.

54. Manner of payment of pension - A pension fixed at a monthly rate shall be payable monthly on or

after the first day of the following month.

55. Power to issue instructions - The Chairman of the Corporation may from time to time issue

instructions as may be considered necessary or expedient for the implementation of these rules.

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*55A. Power to Relax - Where the Central Government is satisfied that the operation of any of these rules

causes undue hardship in respect of any class or categories of persons, it may, by order for reasons to

be recorded in writing relax the requirement of the provision of that rule in a manner not inconsistent

with these rules.

56. Residuary provisions - Matters relating to pension and other benefits in respect of which no

express provision has been made in these rules shall be governed by the corresponding provisions

contained in the Central Civil Services (Pension) Rules, 1972 or the Central Civil Services

(Commutation of Pension) Rules, 1981 applicable for central government employees.

* Notified in Gazette of India dated 6.12.1999 and came into force on the date of publication in the official gazette.

226

APPENDIX I

[See clause (f) of rule 2]

Category of Employees Appointing Authority

(1) (2)

*(i) Chairman of the Corporation Central Govt

(ii) Posts in the Cadres of Zonal Manager and

above and equivalent cadres. Corporation

(iii) Posts in the Cadres of Deputy Zonal Executive Committee

Manager/Senior Divisional Manager and

equivalent cadres

(iv) Posts in the Cadre of Assistant Divisional Chairman

Manager, Senior Branch Manager and

equivalent cadres

(v) Posts in the Cadre of Branch Manager/ Managing Director

Administrative Officer.

* Entry (i) inserted vide Govt. Notification dated 3.7.1996

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APPENDIX II

(See rule 29)

Actual service rendered on Permanent Length of corresponding qualifying service

Part-time basis for each year of service rendered on

permanent part-time basis for calculating

the amount of pension

(1) (2)

Less than 3 hours 1/4th of a year

3 hours or more but less than 4 hours 3/8th of a year

4 hours or more but less than 5 hours 1/2 of a year

5 hours or more but less than 6 hours 5/8th of a year

6 hours or more but less than 7 hours 3/4th of a year

7 hours or more but less than 8 hours 7/8th of a year

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APPENDIX – III

(See rule 35)

The formula of updating basic pension and additional pension in respect of employees who retired between

the Ist day of January 1986 and the 31st day of July, 1987 shall be as under:

(1) A. Basic pension shall be increased by an amount of -

(a) 50 per cent of first Rs. 1000 of the average Rs.

emoluments reckonable for pension.

(b) 45 per cent of next Rs. 500 Rs.

(c) 40 per cent of the average emoluments reckonable for Rs.

pension exceeding Rs. 1500

Total of (a + b + c) Rs. (A)

B. 50 per cent of the average monthly emoluments for the Rs. (B)

last 10 months in service prior to retirement.

C. Dearness relief at index number 600 in the All India Average Rs. (C)

Consumer Price Index for Industrial Workers in the series

1960=100, on basic pension calculated at (1) above,

as per Table given below

D. Total increased basic pension

=(B + C) x number of years of qualifying service

(Max. 33 years)

=

33

Rs. (D)

E. Basic pension as on 1.11.1993 (rounded off to the next Rs. (E)

higher rupee)

(2) For increase in the additional pension, amount of special allowances counted for making

contributions to Provident Fund will be increased with reference to the quantum of special

allowances ranking for Provident Fund as per the Staff Regulations or Service Rules

229

TABLE

Rates of dearness relief worked out at index no. 600 in the All India Average Consumer Price Index for

Industrial Workers in the series 1960=100 for all classes of employees who retired during the period

1.1.1986 to 31.07.1987:

(a) Class IV employees 80.40 per cent of pension calculated at (1) above

(b) Class III employees drawing pension 67 per cent of pension calculated at (1) above

upto Rs. 757/- per month

(c) Class III employees drawing pension of Rs. 757/- per month and above will be eligible for dearness

relief as under:

Amount of basic pension drawn per month The amount of dearness relief admissible

(Rs.) (Rs.)

(1) (2)

757 to 796 508.00

797 to 804 534.00

805 to 824 540.00

825 to 844 553.00

845 to 864 567.00

865 to 884 580.00

885 to 904 593.00

905 to 924 607.00

925 to 944 620.00

945 to 964 634.00

965 to 984 647.00

985 to 1004 660.00

1025 to 1044 687.00

1045 to 1064 701.00

1065 to 1084 714.00

1085 and above 727.00

(d) Class I and Class II employees shall be eligible for dearness relief as under:

(i) For those drawing basic pension upto 66 per cent of the amount of pension calculated

Rs. 765/- per month as at (1) above subject to a maximum of Rs. 500/-

(ii) For those drawing basic pension from Rs. 500/-

Rs. 766/- to Rs. 1165/- per month

(iii) For those drawing basic pension from 42.90 per cent of the amount of pension

Rs. 1166/- per month or above calculated as at (1) above subject to a maximum

of Rs. 715/-

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APPENDIX-IV

(See rule 37)

Dearness relief on basic pension shall be as under:

(1) In the case of employees who retired on or after the Ist day of January, 1986, but before the Ist day

of November, 1993, dearness relief shall be payable for every rise or be recoverable for every fall, as

the case may be, of every 4 points over 600 points in the quarterly average of the All India Average

Consumer Price Index for Industrial Workers in the series 1960 = 100. Such increase or decrease in

dearness relief for every said four points shall be calculated in the manner given below:

Scale of basic pension The rate of dearness relief as a

per month percentage of basic pension

(1) (2)

(i) upto Rs. 1250/- 0.67 per cent

(ii) Rs. 1251/- to Rs. 2,000/- 0.67 per cent of Rs. 1250/- plus 0.55 per cent of basic

pension in excess of Rs. 1250/-.

(iii) Rs. 2001/- to Rs. 2130/- 0.67 per cent of Rs. 1250/- plus 0.55 per cent of the

difference between Rs. 2000/- and Rs. 1250/- plus

0.33 per cent of basic pension in excess of Rs. 2000/-

(iv) above Rs. 2130/- 0.67 per cent of Rs. 1250/- plus 0.55 per cent of the

difference between Rs. 2000/- and Rs. 1250/- plus

0.33 per cent of the difference between Rs. 2130/- and

Rs. 2000/- plus 0.17 per cent of basic pension in excess of

Rs. 2130/-.

(2) In the case of employees who retire on or after the 1st day of November, 1993, dearness relief shall

be payable for every rise or be recoverable for every fall, as the case may be, of every 4 points over

1148 points in the quarterly average of the All India Average Consumer Price Index for Industrial

Workers in the series 1960 = 100. Such increase or decrease in dearness relief for every said four

points shall be calculated in the manner given below:

Scale of basic pension The rate of dearness relief as a

per month percentage of basic pension

(1) (2)

(i) upto Rs. 2,400/- 0.35 per cent

(ii) Rs. 2,401 to Rs. 3,850/- 0.35 per cent of Rs. 2,400/- plus 0.29 per cent of basic

pension in excess of Rs. 2,400/-

(iii) Rs. 3,851 to Rs. 4,100/- 0.35 per cent of Rs. 2,400/- plus 0.29 per cent of the

difference between Rs. 3,850/- and Rs. 2,400/- plus

0.17 per cent of basic pension in excess of Rs. 3,850/-

(iv) above Rs. 4,100/- 0.35 per cent of Rs. 2,400/- plus 0.29 per cent of the

difference between Rs. 3,850 and Rs. 2,400/- plus

0.17 per cent of the difference between Rs. 4,100/-

and Rs. 3,850/- plus 0.09 per cent of basic pension in

excess of Rs. 4,100/-

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*(3) Notwithstanding anything contained in Para (1) and Para (2), in respect of employees belonging to

Class-III and Class-IV, who have retired on or after the 1st day of August, 1992 and in respect of

Officers belonging to Class-I and Class-II, retired on or after 1st day of April, 1993, dearness relief

shall be payable or be recoverable as may be determined from time to time.

@3(A) In case of employees who have retired or died on or after the 1st day of August 1997, the dearness

relief shall be payable for every rise or to be recoverable for every fall, as the case may be, of every

4 points over 1740 points in the quarterly Average Consumer Price Index for Industrial Workers in

the series of 1960 = 100 Such increase or decrease in dearness relief for every said 4 points shall be

at the rate of 0.23 per cent of the Basic Pension;

@3(B) In case of any wage revision in future the rate of dearness relief payable to an employee shall be

determined by the Corporation corresponding to the index to which the scale is linked.

(The Corporation has determined that in case of employees who have retired or died on or after

the 1st day of August 2002, the dearness relief shall be payable for every rise or to be

recoverable for every fall, as the case may be, of every 4 points over 2328 points in the quarterly

Average Consumer Price Index for Industrial Workers in the series of 1960 = 100 Such increase

or decrease in dearness relief for every said 4 points shall be at the rate of 0.18 per cent of the

Basic Pension).

(4) Dearness relief shall be payable for the half year commencing from the 1st day of February and

ending with 31st day of July on the quarterly average of the index figures published for the months of

October, November and December of the previous year and for the half year commencing from the

1st day of August and ending with the 31st day of January on the quarterly average of the index

figures published for the months of April, May and June of the same year.

(5) In the case of family pension, invalid pension and compassionate allowance, dearness relief shall be

payable in accordance with the rates mentioned above.

(6) Dearness relief will be allowed on full basic pension even after commutation.

(7) Dearness relief is not payable on additional pension.

* Para (3) added vide Govt. Notification dated 22.4.1997 and further amended vide notification dated 14.5.1999.

@ Notified in Gazette of India, Part-III Section 3 dated 22.6.2000

232

APPENDIX - V

(See rule 39)

The ordinary rates of family pension shall be as under:

(a) In respect of employees retired before 1.11.1993

Scale of pay per month Amount of monthly Family Pension

(1) (2)

Upto Rs. 1500 30 per cent of the ‘Pay’ shall be the basic family pension plus 30 per cent

of allowances which are counted for making contributions to Provident Fund

but not for dearness allowance shall be the additional family pension. The

aggregate of basic and additional family pension shall not be less than

Rs. 375 per month.

Rs. 1501 to Rs. 3000 20 per cent of the ‘Pay’ shall be the basic family pension plus 20 per cent

of allowances which are counted for making contributions to Provident Fund

but not for dearness allowance shall be the additional family pension. The

aggregate of basic and additional family pension shall not be less than

Rs. 450 per month.

Above Rs. 3000 15 per cent of the ‘Pay’ shall be the basic family pension plus 15 per cent

of allowances which are counted for making contributions to Provident Fund

but not for dearness allowance shall be the additional family pension.

The aggregate of basic and additional family pension shall not be less than

Rs. 600 per month and more than Rs. 1250 per month.

(b) In respect of employees retired or retiring on or after 1.11.1993

Scale of pay Amount of monthly Family Pension

(1) (2)

Upto Rs. 2870 30 per cent of the ‘Pay’ shall be the basic family pension plus 30 per cent

of the allowances which are counted for making contributions to Provident

Fund but not for dearness allowance shall be the additional family pension.

The aggregate of basic and additional family pension shall be subject to a

minimum of Rs. 720 per month.

Rs. 2871 to Rs. 5740 20 per cent of the ‘Pay’ shall be the basic family pension plus 20 per cent

of the allowances which are counted for making contributions to Provident

Fund but not for dearness allowance shall be the additional family pension.

The aggregate of basic and additional family pension shall be subject to a

minimum of Rs. 860 per month.

Above Rs. 5740 15 per cent of the ‘Pay’ shall be the basic family pension plus 15 per cent

of the allowances which are counted for making contributions to Provident

Fund but not for dearness allowance shall be the additional family pension.

The aggregate of basic and additional family pension shall be subject to a

minimum of Rs. 1150 per month and a maximum of Rs. 2400 per month.

233

*(c) Notwithstanding anything contained in Para (a) or Para (b), in respect of employees belonging to Class-

III or Class-IV who have retired on or after 1st day of August, 1992 or in respect of Officers belonging

to Class-I or Class-II who have retired on or after 1st April, 1993, the ordinary rates of Family Pension

shall be calculated as per the rates prescribed in Para (b) above.

@(d) In respect of employees retired on or after 1st August, 1997, the rate of ordinary family pension shall

be as under:

Scale of pay per month Amount of monthly Family Pension

(1) (2)

Upto Rs. 4,360/- 30 per cent of the “Pay” shall be the basic family pension plus 30 per

cent of the allowances which are counted for making contributions to

Provident Fund but not for dearness allowance shall be the additional

family pension. The aggregate of basic and additional family pension

shall be subject to a minimum of Rs. 1,100/- per month.

Rs. 4,361/- to Rs. 8,700/- 20 per cent of the “Pay” shall be the basic family pension plus 20 per

cent of the allowances which are counted for making contributions to

Provident Fund but not for dearness allowance shall be the additional

family pension. The aggregate of basic and additional family pension

shall be subject to a minimum of Rs. 1,310/- per month.

Rs. 8,701/- and above 15 per cent of the “Pay” shall be the basic family pension plus 15 per

cent of the allowances which are counted for making contributions to

Provident Fund but not for dearness allowance shall be the additional

family pension. The aggregate of basic and additional family pension

shall be subject to a minimum of Rs. 1,740/- per month.

@(e) In case of any wage revision in future the rate of family pension to an employee shall be determined

by the Corporation corresponding to the index to which the scale is linked.

Notes: (1) Dearness relief is not payable on additional family pension.

(2) “Scale of pay” for the purpose of calculation of family pension as above shall be aggregate of

“pay” as defined in sub-clause (o) of rule 2 and “allowances” as defined in the explanation to

sub-rule (3) of rule 35.

* Para (c) to Appendix-V inserted vide Govt. Notification dated 22.4.1997 and further amended vide notification dated

14.5.1999 (effective dated 1.11.93)

@ Notified in Gazette of India, Part-III, Section 3 dated 22.6.2000 (GSR No.553(E))

234

(The Corporation has determined that In respect of employees retired on or after 1st August, 2002, the rate

of ordinary family pension shall be as under):

Scale of pay Amount of monthly Family Pension

(1) (2)

Upto Rs. 5,840/- 30 per cent of the “Pay” shall be the basic family pension plus 30 per

cent of the allowances which are counted for making contributions to

Provident Fund but not for dearness allowance shall be the additional

family pension. The aggregate of basic and additional family pension

shall be subject to a minimum of Rs. 1,480/- per month

Rs. 5,841/- to Rs. 11,640/- 20 per cent of the “Pay” shall be the basic family pension plus 20 per

cent of the allowances which are counted for making contributions to

Provident Fund but not for dearness allowance shall be the additional

family pension. The aggregate of basic and additional family pension

shall be subject to a minimum of Rs. 1,760/- per month

Rs. 11,641/- and above 15 per cent of the “Pay” shall be the basic family pension plus 15 per

cent of the allowances which are counted for making contributions to

Provident Fund but not for dearness allowance shall be the additional

family pension. The aggregate of basic and additional family pension

shall be subject to a minimum of Rs. 2,330/- per month

(F. No. )

Joint Secretary (Insurance)

235

EXPLANATORY MEMORANDUM

The Life Insurance Corporation of India was established under Section 3 of the Life Insurance Corporation,

Act, 1956. The terms and conditions of service of the employees of the Corporation are governed by rules

made by the Central Government under Section 48 and regulations made by the Corporation under

Section 49 of the said Act.

The rules and regulations under Section 48 and Section 49 of the Act do not provide for payment of pension

except for the transferred employees of the Oriental Government Security Life Assurance Company Limited.

There has been persistent demand from the employees of the Corporation for introduction of a pension

scheme in the Corporation. The Corporation in consultation with the Unions of the employees have

recommended introduction of an index-linked pension scheme in lieu of Corporation’s contribution to the

Provident Fund with effect from 1st November, 1993.

The proposed pension scheme will be applicable to those who joined the service of the Corporation on or

after 1.11.1993. However the benefit of the pension scheme is proposed to be extended to those who

retired or died on or after 1.1.1986. It is also proposed to provide the benefit of family pension in respect

of those employees who died subject to fulfilling certain conditions.

It is certified that no employee of the Corporation is likely to be affected adversely by the introduction of the

pension scheme with retrospective effect.

Foot Note : The principal rules were published vide GSR No.525(E) dated 28.6.1995 and subsequently amended as under :

1. GSR No. 265(E) dated 03.07.1996

2. GSR No. 225(E) dated 22.04.1997

3. GSR No. 349(E) dated 14.05.1999

4. GSR No. 804(E) dated 06.12.1999 and

5. GSR No. 553(E) dated 22.06.2000.

**** In exercise of powers conferred by Sec. 48 Of the L.I.C. Act,1956 (31 of 1956), the Government of India while

Notification dated 05.09.2005 Revised the Pay Scales and other service conditions of employees of the L.I.C. of India

w.e.f. 01.08.2002.

As a consequence of the same the relevant provisions of LIC of India (Employees) Pension Rules are necessary to be amended. The

Government of India vide Notification dated 22.06.2000, empowered the Corporation to amend the relevant provisions to

determine the amount of Minimum Pension, Dearness Relief and Family Pension.

The instructions based on this Rule have been amended w.e.f. 01.08.2002.