REGD. NO.

D L--33004/99

The Gazette of India

EXTRAORDINARY

PART II—Section 3—Sub-section (ii)

PUBLISHED BY AUTHORITY

No. 644 ] NEW DELHI, SATURDAY, SEPTEMBER 30, 2000/ASVINA 8, 1922

2660 GI/2000 (I)

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MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS

(Department of Pension and Pensioners' Welfare)
NOTIFICATION
New Delhi, the 30th September, 2000

S.O.904(E).— In exercise of the powers conferred by the proviso to article 309 and clause (5)
of article 148 of the Constitution and after consultation with the Comptroller and Auditor General
of India in relation to persons serving in the Indian Audit and Accounts Department, the President
hereby makes the following rules further to amend the Central Civil Services (Pension) Rules
1972, namely:-

1. (1) These rules may be called the Central Civil Services (Pension) Amendment Rules, 2000.
(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Central Civil Services (Pension) Rules, 1972, after rule 37, the following rule shall be
inserted, namely :-

"37A. Conditions for payment of pension on absorption consequent upon conversion of a

Government Department into a Central autonomous body or a Public Sector Undertaking, -
(1) On conversion of a department of the Central Government into a public sector
undertaking or an autonomous body, all Government servants of that Department
shall be transferred en-masse to that public sector undertaking or autonomous body,
6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]

as the case may be, on terms of foreign service without any deputation allowance till
such time as they get absorbed in the said undertaking or body, as the case may be,
and such transferred Government servants shall be absorbed in the public sector .
undertaking or autonomous body, as the case may be, with effect from such date as
may be notified by the Government.

(2) The Central Government shall allow the transferred Government servants an option
to revert back to the Government or to seek permanent absorption in the public
sector undertaking or autonomous body, as the case may be.

(3) The option referred to in sub-rule (2) shall be exercised by every transferred
Government servant in such manner and within such period as may be specified by
the Government.

(4) The permanent absorption of the Government servants as employees of the public
sector undertaking or autonomous body shall take effect from the date on which their
options are accepted by the Government and on and from the date of such acceptance,
such employees shall cease to be Government servants and they shall be deemed to
have retired from Government service.

(5) Upon absorption of Government servants in the public sector undertaking or

autonomous body, the posts which they were holding in the Government before such
absorption shall stand abolished.

(6) The employees who opt to revert to Government service shall be re-deployed
through the surplus cell of the Government.

(7) The employees including quasi-permanent and temporary employees but excluding
casual laborers, who opt for permanent absorption in the public sector undertaking or
autonomous body, shall on and from the date of absorption, be governed by the rules
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and regulations or bye-laws of the public sector undertaking or autonomous body, as

the case may be.

(8) A permanent Government servant who has been absorbed as an employee of a public
sector undertaking or autonomous body shall be eligible for pensionary benefits on
the basis of combined service rendered by him in the Government and in the public
sector undertaking or autonomous body in accordance with the formula for
calculation of pension/family period under these rules as may be in force at the
time of his retirement from the public sector undertaking or autonomous body, as the
case may be.

(9) The pension of an employee under sub-rule (8) shall be calculated on the basis of
his last ten months' average pay.

(10) In addition to pension or family pension, as the case may be, the employees shall also
be eligible to dearness relief as per industrial dearness allowance pattern.

(11) The benefits of pension and family pension shall be available to quasi- permanent and
temporary transferred Government servants after they have been confirmed in the
public sector undertaking or autonomous body.

(12) The Central Government shall create a Pension Fund in the form of a trust and the
pensionary benefits of absorbed employees shall be paid out of such Pension Fund

(13) The Secretary of the administrative Ministry of the public sector undertaking or
autonomous body shall be the Chairperson of the Board of Trustees which shall
include representatives of the Ministries of Finance, Personnel, Public Grievances and
Pensions, Labour, concerned public sector undertaking or autonomous body and their
employees and experts in the relevant field to be nominated by the Central
Government.
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(14) The procedure and the manner in which pensionary benefits are to be sanctioned and
disbursed from the Pension Fund shall be determined by the Government on the
recommendation of the Board of Trustees.

(15) The Government shall discharge its pensionary liability by paying in lump sum as a
one time payment to the Pension Fund the pro rata pension or service gratuity and
retirement gratuity for the service rendered till the date of absorption of the
Government servant in the public sector undertaking or autonomous body.

(16) The manner of sharing the financial liability on account of payment or pensionary
benefits by the public sector undertaking or autonomous body shall be determined by
the Government.

(17) Lump sum amount of the pro rata pension shall be determined with reference to
Commutation Table laid down in Central Civil Services (Commutation of Pension)
Rules, 1981.

(18) The public sector undertaking or autonomous body shall make pensionary contribution
to the Pension Fund for the period of service to be rendered by the concerned
employees under that undertaking or body at the rates as may be determined by the
Board of Trustees so that the Pension Fund shall be self-supporting.

(19) If, for any financial or operational reason, the Trust is unable to discharge its liabilities
fully from the Pension Fund and the public sector undertaking or autonomous body is
also not in a position to meet the shortfall, the Government shall be liable to meet
such expenditure and such expenditure shall be debited to either the Fund or to the
public sector undertaking or autonomous body, as the case may be.
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(20) Payments of Pensionary benefits of the pensioners of a Government Department on

the date of conversion of it into a public sector undertaking or autonomous body shall
continue to be the responsibility of the Government and the mechanism for sharing its
liabilities on this account shall be determined by the Government.

(21) Nothing contained in sub-rules (12) to (20) shall apply in the case of conversion of
the Departments of Telecom Services and Telecom Operations into Bharat Sanchar
Nigam Limited, in which case the pensionary benefits including family pension shall
be paid by the Government.
(22) For the purposes of payment of pensionary benefits including family pension referred
to in sub-rule (21), the Government shall specify the arrangements and manner
including the rate of pensionary contributions to be made by Bharat Sanchar Nigam
Limited to the Government and the manner in which financial liabilities on this
account shall be met

(23) The arrangements under sub-rule (22) shall be applicable to the existing pensioners
and to the employees who are deemed to have retired from the Government service
for absorption in Bharat Sanchar Nigam Limited and shall not apply to the employees
directly recruited by the Bharat Sanchar Nigam Limited for whom it shall devise its
own pension scheme and make arrangements for funding and disbursing the
pensionary benefits.

(24) Upon conversion of a Government department into a public sector undertaking or

autonomous body -

(a) the balance of provident fund standing at the credit of the absorbed employees
on the date of their absorption in the public sector undertaking or autonomous
body shall, with the consent of such undertaking or body, be transferred to the
new Provident Fund Account of the employees in such undertaking or body,
as the case may be;

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(b) earned leave and half pay leave at the credit of the employees on the date of
absorption shall stand transferred to such undertaking or body, as the case
may be;

(c) the dismissal or removal from service of the public sector undertaking or
autonomous body of any employee after his absorption in such undertaking or
body for any subsequent misconduct shall not amount to forfeiture of the
retirement benefits for the service rendered under the Government and in the
event of his dismissal or removal or retrenchment the decisions of the
undertaking or body shall be subject to review by the Ministry
administratively concerned with the undertaking or body.

(25) In case the Government disinvests its equity in any public sector undertaking or
autonomous body to the extent of fifty-one per cent, or more, it shall specify adequate
safeguards for protecting the interests of the absorbed employees of such public
sector undertaking or autonomous body.

(26) The safeguards specified under sub-rule (25) shall include option for voluntary
retirement or continued service in the undertaking or body, as the case may be, or
voluntary retirement benefits on terms applicable to Government employees or
employees of the public sector undertaking or autonomous body as per option of the
employees, assured payment of earned pensionary benefits with relaxation in period
of qualifying service, as may be decided by the Government.".

[No.4/61/99-P&PW(D)]
P.K. BRAHMA, Addl. Secy.
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Note: The Central Civil Services (Pension) Rules, 1972 were published as S.O. 934 dated
1.4.72. The fourth edition( corrected up to July,1988) of the Rules was printed in
1988. The Rules were subsequently amended vide Department of Pension and
Pensioners' Welfare Notification given below:

S.No. Notification No. Date

1. S.O. No. 254 4.2.1989

2. S.o. No. 970 6.5.1989
3. S.O.No. 2467 7.10.1989
4. S.O.No.899 14.4.1990
5. S.O.No. 1454 26.5.1990
6. S.O.No.2329 8.9.1990
7. S.O.No. 3269 8.12.1990
8. S.O.No. 3270 8.12.1990
9. S.O.No. 3273 8.12.1990
10. S.O.No. 409 9.12. 1991
11. S.O.No. 464 16.2.1991
12. S.O.No. 2287 7.9.1991
13. S.O.No. 2740 2.11.1991
14. GSR No. 677 7.12.1991
15. GSR No. 39 1.2.1992
16. GSR No. 55 15.2.1992
17. GSR No. 570 19.12.1992
18. S.O.No. 258 13.2.1993
19. S.O.No.258 13.2.1993
20. S.O.No. 1673 7.8.1993
21. GSR No. 449 11.9.1993
22. S.O.No. 1984 25.9.1993
23. GSR 389(E) 18.4.1994
24. S.O.No. 1775 19.7.1997
25. S.O.No. 259 30.1.1999

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