Pension, Gratuity, BSNL GSLICtraining.bsnl.co.in/DIGITAL_LIBRARY_SOURCE/upgradation/E1-E2/E1-E2... · E1-E2 Core Rev. Date: 31-03-2016 ©BSNL, India For Internal Circulation Only

E1-E2 Core Rev. Date: 31-03-2016

©BSNL, India For Internal Circulation Only 1

E1-E2( FINANCE) – CORE MODULE

Chapter-3

Pension, Gratuity, BSNL GSLIC



Pension and Gratuity

Introduction

DTO/DTS/DOT Employees as on 30-9-2000 & absorbed in BSNL are eligible for

Pension/Family Pension & Gratuity as applicable to Central Government Servants. (Rule 37

A CCS Pension Rules, 1972 )

Pension is the series of periodic money payments to a person who retires from service on

completion of the agreed span of service. The payment continues for the rest of natural life

of the recipient and sometimes to a widow of the survivor.

Principles Governing Pension

There are certain underlying principles governing the grant of pension. An employee is not

eligible for pension unless the qualifying service is paid for and rendered in a post under the

Government and he is holder of a substantive appointment at the time of retirement. In the

recent past provision was made for grant of pension to the employees who did not hold

substantive appointment at the time of retirement, but had rendered not less than 10 years of

service if they retire on superannuation or invalidation or rendered not less than 20 years and

retire voluntarily. Future good conduct is implied condition for grant of pension and it

continuance in future. Various rules relating to conditions, and regulation of amounts of

pension etc., are contained in C.C.S (Pension) Rules 1972. In this handout the procedure for

verification of services, processing the pension cases, issue of pension payment order etc., are

described in the succeeding paras.

LEARNING GOALS

After reading this section, you will be conversant with

Calculation of Pensionary Benefits viz (a) Pension (b) Gratuity (c) Family Pension (d) Commutation (e) Leave Encashment.

Classes of Pension and its description.

Processing of Pension papers.



Verification of Services

The verification of services rendered by an employee is the first step of the settlement of a

pension case. Verification cases received in DOT cell is of two types viz.,

i) Verification of qualifying service after completion of 25 years of service or 5

years before the date of retirement and

ii) Verification of services while finalising the pension case.

As a matter of fact the second category of case does not come under verification cases, but

final verification of qualifying service is also done while issuing the Enfacement Report and

as such, they are entered(treated) as pension cases received for issue of Enfacement Report.

Procedure for Verification

A service statement along with the service book is received in pension section from the Head

of the Office. The particulars of the case are entered in Register of Applications ( SY.133)

for verification of services which is maintained to watch the proper disposal of the cases for

verification of services. The serial number assigned in the register is noted on the statement to

signify the entry in the register. The service statement is examined to see:-

1. that it is complete in all respects;

2. that the date of birth shown in it tallies with the service book;

3. that all periods of non-qualifying service agree with the entries in the service book

and no spell is left out;

4. that necessary notes regarding verification of service exist in the Service Book;

5. that the periods of service not verified with reference to acquittance rolls have

been verified in accordance with the provisions of Rule 58(iv) of C.C.S (Pension)

Rules, 1972.

6. that necessary note exists in the Service Book under the signatures of the Circle

Accountant or other competent authority for counting any military service which

qualifies for Civil Pension;

7. in the case of foreign service the period should be verified from the particulars

already recorded in a Service Book (Part- III) by the Chief Accounts Officer (TA).



While checking if any discrepancies affecting the qualifying service are noticed, the case

should be returned to the Head of the Office for reconciliation. If the discrepancies are such

which do not affect the qualifying service, the same can be communicated to the Head of

Office while returning the case after verification of the qualifying service.

Issue of Verification Memo

If the case is found fit for issue of a verification memo, it is prepared and signed by the

Accounts Officer (DOT Cell). The Statement of services along with the service book should

be returned to the Unit concerned. The disposal should be noted in the Register of

Applications for verification of services. The maximum period allowed for disposal of

verification statement is 15 days from the date of receipt of the case.

Procedure followed in the Units

Preparation of List of officials due to retire

A list of officials (MSO (T)-26) who are due to retire within the next 24 to 30 months is

prepared twice a year i.e., on 1st January and 1st July by the Head of Office. A copy of the list

is supplied to the Accounts Officer (DOT Cell).

Intimation to Directorate of Estates

If the official is in occupation of Government accommodation, the Head of Office should

write to the Directorate of Estates two years before the date of retirement for issue of ―No

Demand Certificate‖ in respect of the period preceding 8 months of retirement.



Preparation of Pension Paper

The work of preparing the pension papers of an official due to retire on superannuation is

undertaken 2 years before the date of retirement. This work is completed in the following

stages:

a) Checking the Service Book & see whether certificates of verification are

recorded.,

b) Verification of unverified portions with reference to pay rolls / acquittance rolls

etc., and recording necessary certificates.,

c) Referring to the concerned office in respect of unverified portion relating to other

offices.,

d) Obtaining the declaration from the official in respect of service which could not

be verified with any source available with the office.,

e) Admitting the unverified portion for qualifying service on the basis of the written

statement (declaration) submitted by the official.,

f) Taking all possible steps for making good any omissions/ imperfections/

deficiencies (in S.B) affecting qualifying service.

g) Determining qualifying service omitting such portion the verification of which

was found not possible.

h) Calculation of average emoluments after verifying the correctness of emoluments

for a period of 10 months preceding the date of retirement.,

i) Not later than ten months prior to the date of retirement of the Govt. Servant, the

Head of Office shall furnish to the retiring Govt. Servant a certificate regarding

the length of qualifying service proposed to be admitted for the purpose of

pension and gratuity as also the emoluments proposed to be reckoned with for

retirement gratuity and pension. In case the certified service and emoluments as

indicated by the Head of Office are not acceptable to him, he shall furnish to the

Head of Office the reasons for non acceptance, inter alia, supported by the

relevant documents in support of his claim.

j) Obtaining Form- 5 from the retiring official (along with the documents to be

attached to Form-5) 8 months before retirement.



k) Completion of Part-I of Form-7 and

l) Forwarding Pension Papers before 6 months.

Procedure followed in DOT Cell

Processing of Pension and Gratuity cases

1. Verification of service.

2. Reporting on applications for pension (including Family Pension, Gratuity,

Commutation of pension) in the form of Enfacement Report.

3. Issuing Pension or Gratuity, or Family Pension Payment Orders.

4. Checking of pension and Gratuity payment vouchers (by territorial Circle

Accountants.)

5. Compilation of periodical returns etc.

(a) The procedure regarding the first item (Verification of service) has been

described already. Now the procedure for other items of work is described in

the succeeding paras.

(b) Reporting on applications for Pension: On receipt of the applications

(Pension Papers) for pension and gratuity from the Head of Office the

particulars are entered in the Register of Applications for Pension and

Gratuity in Form No. SY. 134. The serial number assigned to each

application in the register should be noted on the application to signify its

entry in the Register. Each application should be scrutinized in respect of the

following points.



The following general checks are exercised in respect of the pension cases.

Sl.No. Item Points to be seen

1 Forms used that it has been drawn up in proper forms.

2 Name of official that uniformity of spelling in all accompanying

documents was adopted.

3 Date of beginning of

service

that it confirms with entry in service book and boy service

etc., are omitted as per rules.

4 Date of ending of

service in case of

superannuation

pension.

in the afternoon of the last day of the month in which the

official attains the age of 60 years.

An official, whose date of birth is 1st of a month, retires

on the afternoon of the last day of the preceding month on

attaining the age of 60 years.

5 Period of Military

service

that it was treated as qualifying service for civil pension

under the provision of Rule 19 of CCS (Pension) Rules.

6 Class of Pension that the class of pension admissible is properly specified.



7 Qualifying Service i) that the periods such as-

a) boy service

b) suspension adjudged as penalty.

c) EOL without MC where specific entries that it does

not count for pension,

d) Overstayal of leave and joining time and

e) Interruption declared as non- qualifying service

have not been counted.

ii) that the period of training before appointment was

taken into account.

iii) that the service book contains the certificate of

verification

iv) that proper action was taken by the Head of Office

completing omissions

v) that the calculations in leave account are correct

vi) that the entries of condonation of interruptions

were properly made.

vii) that the omissions, imperfections or deficiencies in

Service Book which could not be completed were

ignored.

viii) that in the case of foreign service, contributions

were recovered and entries to this effect were made.

ix) Rounding Off of qualifying service: Rates of Pension/ gratuity have been prescribed with

reference to the number of six-monthly periods of

qualifying service. Under Rule 49(3) of

CCS(Pension) Rules read with GID(2) there under, the period of three months and above will

be reckoned as one completed half-year.

This means that the fraction of a year consisting of—

Less than 3 months …… to be ignored

3 months and above ….…one completed but less than 9 six monthly or

months. Half year period.

9months & above ........ Two completed six monthly or

half year periods.



Calculation of Average Emoluments

Points to be seen:

i) that periods of EOL, Dies-non, overstayal and suspension treated as non-qualifying

service if any, falling within the period of 10 months were disregarded and equal

period before 10 months was included.

ii) that the month is reckoned as 30 days irrespective of actual number of days.

iii) that the calculation of average emoluments is correct.

iv) If the employee was on leave of any kind with leave salary, the ‗emoluments‘

admissible if he was on duty during that period will be taken as ‗emoluments‘ and not

the leave salary actually drawn by him. Similarly, if he was under suspension and

subsequently reinstated in service without forfeiture of service (i.e., if the period of

suspension is allowed to count as qualifying service), the ‗ emoluments‘ which he

would have drawn but for suspension will be taken into account and not the

proportionate pay allowed for the period of suspension. However any increase in pay

which is not actually drawn shall not form part of his emoluments. But annual

increment falling due during the period of earned leave ( and not other kinds of leave)

not exceeding 120 days (or during the first 120 days of earned leave) but not actually

drawn will be taken into account as ‗emoluments‘ drawn.

v) If the employee was on leave with leave salary after holding higher appointment in an

officiating/ temporary capacity, the benefit of ‗ emoluments‘ drawn in such higher post

will be given (for the period of leave) only in cases where it is certified that he would

have continued to officiate in the higher post but for leave.

vi) The pay drawn by an employee while on foreign service will not be treated as

‗emoluments‘ but the pay which he would have drawn under Government but for

foreign service will alone be taken as ‗emoluments‘.

vii) In the case of re-employed Civil/ Military pensioner who retains the pensionary benefit

for his past service, the element of pension, if any, by which his pay in the re-employed

post is reduced, will be taken into account as ‗ emoluments‘.



Calculation of Pension, Gratuity, Family Pension, Commutation Value

Points to be seen

o That the calculations have been made correctly as per the CCS(Pension) Rules

1972.

Submission of other documents

Points to be seen: that the documents viz.,

a) 3 passport photographs (two in the case of unmarried) duly attested by the Head of the Office.

b) 2 slips of specimen signature duly attested by Gazetted Officer.

c) 2 slips showing height & personal identification marks.

d) Details of Family in Form-3 in case it was not submitted already.

Special Checks to be Exercised

In addition to the general points detailed in the preceding paragraph, some special points

requiring notice are stated below for each class of pension.

Invalid Pension

i) that the applicant is declared by the appropriate medical authority to be

permanently incapacitated for further service in accordance with the instructions on

the subject.,

ii) if, however, the medical certificate is submitted by the applicant while on leave, the

service up to the date of termination of the leave is taken into account i.e., the

retirement in such case does not take effect from the date of report of the medical

authority.,

iii) that the amount of leave as debited against the leave account together with any

period of duty beyond the date of the medical authority‘s report should not exceed

six months.,

iv) Invalid Pension should not be less than the normal Family Pension. However

maximum commutation of Pension will be 40% of original Invalid Pension (before

raising to that of Family Pension).



Voluntary Retirement on Completion of 20 years of Qualifying Service (Rule 48-A, CCS

Pension Rules, 1972)

i. The employee should give in writing to the appointing authority of his intension to

retire at least three months before the intended date of retirement. The employee

may, in writing, request for acceptance of notice of less than 3 months giving

reasons there for. This request may be considered by the appointing authority on

merits on the condition that the employee shall not apply for commutation of his

pension before the expiry of full notice period of 3 months.

ii. Date of retirement will be a non-working day.

Calculation of Pension and Gratuity

PENSION:

a) In the case of Govt. Servant retiring after completing qualifying service of not less

than 33 years, the amount of pension will be 50% of the average emoluments

subject to maximum of Rs.15000 per month (w.e.f 1.1.96) [Rs.22500 w.e.f. 1-4-

2004 (CDA scale)]

e.g. Pension = Average Emoluments.

2

b) In the case of Govt. Servants retiring before completing the qualifying service of 33

years but after completing 10 years of qualifying service the amount of pension will

be proportionate to the amount calculated under (a) above and subject to the

minimum of Rs. 1275 per month (w.e.f. 1.1.96). [Rs.1913 w.e.f. 1-4-2004 (CDA

scale)]

e.g. Pension for 63 six monthly period = AE X 63

2 66



Average Emoluments= Total of last 10 months emoluments

10

Emoluments = Basic Pay, N.P.A., & Stagnation Increment.

Emoluments for drawing in CDA scale w.e.f. 1-4-2004 = Basic Pay, NPA, & Stagnation

Increment + Dearness Pay (50% of Basic Pay)

In respect of civil and military pension, the floor ceiling of Rs.1275 taking the two pensions

together will not apply and the individual pensions will be governed by respective pension

rules.

(Dept. Pen. P.W. No.38/38/02-P&PW(A) dt. 23-4-2003)

W.E.F. 1-1-2006

Basic Pay in the revised pay structure means the pay drawn in the prescribed pay band plus

the applicable grade pay but does not include any other type of pay like special pay, etc. (para

4.2 dt. 2-9-2008) ( the pay in the pay scale in the case of HAG + and above)

The amount of pension shall be subject to minimum of Rs.3500 and maximum up to 50% of

highest pay in the Government .i.e Rs.45,000 (The highest pay in the Govt. is Rs.90,000

w.e.f. 1-1-2006) [para 5.5 dt. 2-9-2008]

W.E.F. 2-9-2008 (applicable to Government servants retiring on or after 2-9-2008)

Linkage of full pension with 33 years of qualifying service shall be dispensed with. Once a

Government servant has rendered the minimum qualifying service of twenty years, pension

shall be paid at 50% of the emolument or average emoluments received during the last 10

months, whichever is more beneficial to him (para 5.2 dt. 2-9-2008)

In cases where Government servant becomes entitled to pension on completion of 10 years of

qualifying service in accordance with Rule 49(2) of the CCS (Pension) rules, 1972, pension

in those cases shall also be paid at 50% of the emoluments or average emoluments,

whichever is more beneficial to the Government servant. (para 5.3 dt. 2-9-2008)

It has now been decided that the provision for payment of pension at 50% of the emoluments

(pay last drawn) or 50% of average emoluments received during the last 10 months,

whichever is more beneficial to the retiring employee, shall be applicable to all Government

servants retiring on or after 1-1-2006.

[Dept. of Pension & PW no.38/37/08-P&PW(A) dt. 11-12-2008]



It has now been decided that linkage of full pension with 33 years of qualifying service shall

be dispensed with, with effect from 1-1-2006 instead of 2-9-2008. The revised provisions for

calculation of pension in para 5.2 and 5.3 of the OM No.38/37/08-P&PW(A) dated 2-9-2008

shall come into force with effect from 1-1-2006 and shall be applicable to the Government

servants retired/retiring after that date. Para 5.4 will further stand modified to that extent.

Consequent upon the above revised provisions, in partial modification of para 7.1 of the OM

No.38/37/01-P&PW(A) dated 2-9-08, the extant benefit of adding years of qualifying service

for the purpose of computation of pension and gratuity shall stand withdrawn with effect

from 1-1-2006.

The overall calculation may take into account revised gratuity and revised pension/including

arrears up to date of revision based on these instructions. However, no recoveries would be

made in the cases already settled.

[Dept. of Pension & PW no.38/37/08-P&PW(A) dt. 10-12-2009]

c) The full pension in no case shall be less than 50% of the minimum of the revised

scale of pay introduced with effect from 1st January, 1996 for the post last held by

the employee at the time of his retirement. [From 1-4-2004, pension should be not

less than 50% of the minimum of the CDA scale plus Dearness Pay of the post]

However such pension will be suitably reduced pro rata, where the pensioner has

less than maximum required service for full pension as per the rule (Rule 49 of CCS

(Pension) Rules, 1972) applicable to the pensioner as on the date of his/her

superannuation/ retirement and in no case it will be less than Rs. 1,275 p.m.

[Rs.1913 w.e.f. 1-4-2004 (CDA scale)]

W.E.F 1-1-2006

The full pension shall also not be lower than fifty percent of the sum of the minimum of the

pay in the pay band and the grade pay (or 50% of the minimum of the scale in the case of

HAG+ and above)

For those who have retired between 1-1-2006 and 2-9-2008, the pension will be reduced pro-

rata, where the pensioner had less than 33 years Q.S. (But, it should not be less than

Rs.3500). In case the pension calculated in accordance with Rule 49 of CCS(Pension) Rules

1972, as applicable before 2-9-2008, is higher than the pension calculated in the manner

indicated above, the same (higher pension) will be treated as Basic Pension.

[Dept. P&PW OM NO.38/37/08-P&PW(A) pt.II dt. 3-10-2008]



d) Government Servants retiring before completing qualifying service of 10 years are

not eligible for pension. However they will be entitled for lump sum payment

termed as Service Gratuity calculated @ half emoluments for each completed 6

monthly period. Emoluments for Service Gratuity = Basic Pay, NPA, Stagnation

Increment + DA

[W.E.F. 1-1-2006 Pay drawn in the prescribed pay band plus the applicable grade pay ]

(The pay in the pay scale in the case of HAG + and above) + DA on the date of

retirement] (para 4.1 & 4.3 of OM dt. 2-9-2008)

e) In the case of re-employment of a military pensioner in civil service, the pensionery

benefits for second spell of service shall not be subject to any limitation as per

provisions of Rule 18(3) of CCS Pension rules, 1972

W.E.F. 1-1-2006

The quantum of pension available to the old pensioners shall be increased as follows:-

Age of pensioner Additional quantum of pension

From 80 years to less than 85 years 20% of basic pension




100 years or more 100% of basic pension

The pension sanctioning authorities should ensure that the date of birth and the age of a

pensioner is invariably indicated in the pension payment order to facilitate payment of

additional pension by the Pension Disbursing authority as soon as it becomes due.

(para 5.7 of OM dt. 2-9-2008)

The additional quantum of pension, on attaining the age of 80 years and above, would be

admissible from the 1st day of the month in which his date of birth falls.

(Dept. of P&PW OM no.38/37/08-P&PW(A).pt.II dt.3-10-2008)



GRATUITY.

1. Government Servants retiring after completing 5 years of qualifying service, Gratuity

shall be calculated at the rate of 1/4th of emoluments for each completed six monthly

period subject to a maximum of 16 ½ times of emoluments or Rs. 3.5 lakhs whichever is

less.(w.e.f. 1.1.1996)

[Maximum Gratuity Rs.10 lakhs w.e.f. 1-1-2006] (para 6.1 dt. 2-9-2008)

2. Emoluments for this purpose shall be last pay drawn or Average Emoluments, whichever

is higher plus DA on the date of retirement on Average Emoluments / Last Pay.

3. Last Pay / Average Emoluments = Basic Pay, NPA & Stagnation Increment.

[W.E.F. 1-1-2006 Pay drawn in the prescribed pay band plus the applicable grade pay

(the pay in the pay scale in the case of HAG + and above) +DA on the date of

retirement]

4. A temporary G.S. who retires on superannuation or discharged from service or declared

invalid for further service or absorbed in an autonomous body before completing ten

years of continuous service shall be eligible to gratuity on the same scale and rates as are

applicable to permanent civil G.S. under the provisions of CCS (Pension) Rules 1972.



Sub:- Voluntary Retirement from BSNL Service

The undersigned is directed to say that consequent upon insertion of sub-rule 37-A (11A) in

Central Civil Services (Pension) rules, 1972 vide Central Civil Services (Pension)

Amendment Rules, 2002 notified in the Gazette of India on 28-12-2002, a doubt arose as to

whether Rule 48 and Rule 48-A of the same rules would continue to be applicable to the

employees permanently absorbed in BSNL. It also required to be clarified as to whether the

benefit of rule 48-B of CCS (Pension) Rules would be available to the govt. employees

absorbed in BSNL covered under Rule 37-A(11A). Accordingly, all Telecom. Circle offices

were advised to withhold further processing of voluntary retirement cases till further orders

vide this office letter no.17-29/2004-Pers.II dated 20-7-2004.

After examining the matter in consultation with BSNL finance and Department of Telecom, it

is hereby clarified that after notification of CCS(Pension) amendment rules, 2002, rule 48 and

rule 48B of CCS (Pension) rules, 1972 are no more applicable to the Govt. employees

absorbed in BSNL and consequently all voluntary retirement requests of such employees are

now covered under the provisions of sub-rule 37-A(11A) of the same rules.

As regards benefit of additional qualifying service as available under Rule 48-B of

CCS(Pension) Rules, 1972, it is clarified that the same is not available to the employees

retiring under sub-rule 37-A(11A) of CCS(Pension) Rules.

Accordingly, Government employees absorbed in BSNL shall be required to submit their

application/notice afresh under Rule 37A(11A) of the same rules for consideration and

acceptance by the appointing authority.

(BSNL HQ No.31-94/2004-Pen/BSNL dt. 8-10-2004)



Clarification regarding payment of pensionary benefits to a retiree against whom

personal court case (other than Department) is pending in the competent court.

The department of Pension & PW (vide their I.D.No.17729/03-P&PW(F) dated 10-3-

2003) have advised that the term judicial proceedings mentioned in Rule 69 of CCS (Pension

Rules )1972 is relating to judicial proceedings initiated against a Govt. Servant in his official capacity by the Government authorities. The judicial proceedings initiated against the

Government servant by a private person/agency will not come the ambit of this rule. Hence

there is no objection in releasing DCRG and final pension to those Govt. servants against

whom judicial proceedings have been initiated by private parties.

The Department of Legal affairs (vide their U.O. No.10412/03 dated 18-3-2003) have

concurred in the above views of Department of Pension & PW.

(DOT Lr.No.36-9/2002-Pen(T) dt. 24-3-2003)

Retirement Benefits in respect of Government service to persons Dismissed/Removed

after their Absorption in BSNL

―As per Sub-rule 24© of Rule 37-A of CCS (Pension) Rules, 1972, the absorbed employees

of BSNL are entitled to retirement benefits for the service rendered under the Government

even if they are dismissed/removed from the service after their absorption in BSNL for any

misconduct during service in BSNL. The retirement benefits in such cases shall be admissible from the day following the date of dismissal/removal from BSNL‖

(DOT No.318-12/2008-Pen(T) dt. 21-7-2009)

Terminal/ Death Benefit to Temporary Employees.

a) Terminal Benefits

1. Quasi- Permanent and temporary employees, who retire on superannuation or on

being declared permanently incapacitated for further Government service by the

appropriate medical authority after having rendered temporary service of not less

than 10 years, shall be eligible for grant of superannuation / invalid pension,

retirement gratuity and family pension at the same scale as admissible to permanent

employees under the C.C.S (Pension) Rules 1972.

2. Temporary and quasi-permanent employees who seek voluntary retirement after

completion of 20 years of service shall continue to be eligible for retirement pension

and other pensionary benefits like gratuity and family pension.

3. In case not covered by paragraphs 1 and 2 above the terminal benefits will continue

to be admissible as at present under C.C.S (Temporary Service) Rules, 1965.



b) Death Benefits: In the event of death in harness of temporary/ quasi permanent

Government Servants, their families shall be eligible to family pension and death gratuity on

the same scale as admissible to families of permanent Government Servant under the

C.C.S(Pension) Rules, 1972.

Commutation Pension

A retired official is entitled to commute a fraction of his pension subject to a maximum of

40% of pension sanctioned.(w.e.f. 1.1.1996)

a) The amount payable shall be calculated as shown below:

Amount of Pension to be commuted x 12 x Commutation factor.

b) The commutation factor as per the commutation table on the basis of

age of next birth day shall be taken into account.

Commuted value of Pension is rounded off to the next higher rupee.

The application for commutation of pension are of two categories. A brief description of each

category is given below:

Commutation Without Medical Examination

a) A retiring official on superannuation pension can submit his application in Form

1-A for commutation of pension before the date of superannuation to the Head of

Office. The application is forwarded to the Accounts Officer. After verification of

the application, the Accounts Officer authorises the Head of Office to draw the

amount of commuted value and disburse to the retiring official on or after the date

following date of retirement.

b) A retired official (as indicated in Rule 12 of ( CCS Commutation of Pension)

Rules 1981) can submit his application in Form-1 for commutation before the

expiry of one year to the Head of office. The application is forwarded to the

Accounts Officer. After verification of the application and receiving the PPO from

the Post Office, the Accounts Officer will issue the authority for the payment of

commuted value to the pension disbursing authority concerned and endorse a copy

to the pensioner with instruction to collect the commuted value from the pension

disbursing authority. A revised PPO for the reduced value of pension is issued.



Commutation With Medical Examination

All the retired officials listed in Rule 18 of CCS(Commutation of Pension) Rules 1981 will

apply in form-2. Commuted Value of Pension will be authorised after medical examination

and verification of the application etc.

Cases where medical examination is necessary:

1) In Superannuation Pension & Retiring Pension, if the application for commutation

is received after one year of date of retirement.

2) Invalid Pension.

3) Compulsory Retirement Pension.

A Government Servant or a pensioner against whom Departmental or judicial proceedings are

pending is not eligible to commute a part of his pension till the finalization of the

proceedings.

Commutation is permissible on the provisional pension except in cases where the provisional

pension is sanctioned due to pendency of Departmental or judicial proceedings.

Reduction of Pension after commutation

The reduction in the monthly pension as a result of commutation will take from

i. If pension is drawn from the Pension Disbursing Officer, the date of receipt of the

commutation amount by the pensioner or at the end of 3 months from the date of

issue of authority for payment by the Accounts Officer, whichever is earlier.

ii. If pension is drawn through Bank, the date of credit of the commutation amount to

the applicant‘s account.

iii. If the application for commutation is submitted before superannuation, from the

date following the date of retirement. However, if payment of commutation

amount could not be effected due to administrative reasons within the first month

after retirement , the difference of pension due for the period, i.e., from the day

following the day of retirement and the day preceding the date of receipt of

commutation amount is payable to the pensioner.



iv. Nomination: Along with the application for commutation Nomination should

be submitted in Form.5. In the event of the death of the pensioner before receipt of

the commutation amount, the commutation amount will be paid to the nominee. In

the absence of a valid nomination, the amount will be paid as in the case of

‗Death Gratuity‘, failing which to the legal heirs.

The part of the pension commuted will be restored after fifteen years from the date following

the date of retirement, if the reduction in pension due to commutation is effected in the first

month pension itself. Otherwise, it will be restored after fifteen years reckoned from the date

of payment of the commutation amount.

W.E.F 2-9-2008

The existing Table of commutation value for pension annexed to the CCS (Commutation of

Pension) Rules, 1981 shall be substituted by a new table at Annex.I of this O.M. (para 9.2 dt.

2-9-2008)

The revised table of commutation value for pension will be used for all commutations of

pension which become absolute after the date of issue of this O.M. (2-9-2008) In the case of

those pensioners, in whose case commutation of pension became absolute on or after 1-1-

2006 but before the issue of this OM, the pre-revised table of commutation value for pension

will be used for payment of commutation of pension based on pre-revised pay/pension. Such

pensioners shall have an option to commute the amount of pension that has become

additionally commutable on account of retrospective revision of pay/pension on

implementation of the recommendations of the Sixth Central Pay commission. On exercising

such an option by the pensioner, the revised Table of commutation value for pension will be

used for the commutation of the additional amount of pension that has become commutable

on account of retrospective revision of pay/pension. In all cases where the date of

retirement/commutation of pension is on or after the date of issue of this OM, the revised

table of commutation value for pension will be used for commutation of entire pension. (para

9.3 dt. 2-9-2008)

S. No. Points raised Clarifications

1 What would be the age to be used for

commutation of additional

commutable pension and which factor would be used for such

additional commuted value of pension

The age reckoned for calculation of

commuted value of pension at the time

of original application for commutation of pension will apply for

calculation of commutation value of

additional commutable pension.



However, as mentioned in the OM

dated 2-9-2008, the commutation

factor in the revised Table of commutation value for pension will be

used for commutation of the additional

amount of pension that has become

commutable on account of retrospective revision of pay/pension

2. From which date the reduction in pension on account of additional

commutation of pension will take

effect?

Reduction in pension on account of additional commutation of pension

will be in two stages as per the

provisions contained in Rule 6 of the

CCS (Commutation of Pension) Rules, 1981.

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

The commuted portion of pension shall be restored after 15 years from

the respective dates of commutation as

provided in Government of India

decision no.1 under rule 10 of CCS (commutation of Pension) Rules,

1981. Necessary endorsement should

be made in the PPO.

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



ANNEXURE I

COMMUTATION VALUE FOR A PENSION OF Re.1 PER ANNUM

Age

next

birth day

Commutation

value expressed

as number of year‘s purchase

Age next

birth day

Commutation

value

expressed as number of

year‘s

purchase

Age next

birth day

Commutation

value

expressed as number of

year‘s

purchase

20 9.188 41 9.075 62 8.093

21 9.187 42 9.059 63 7.982

22 9.186 43 9.040 64 7.862

23 9.185 44 9.019 65 7.731

24 9.184 45 8.996 66 7.591

25 9.183 46 8.971 67 7.431

26 9.182 47 8.943 68 7.262

27 9.180 48 8.913 69 7.083

28 9.178 49 8.881 70 6.897

29 9.176 50 8.846 71 6.703

30 9.173 51 8.808 72 6.502

31 9.169 52 8.768 73 6.296

32 9.164 53 8.724 74 6.085

33 9.159 54 8.678 75 5.872

34 9.152 55 8.627 76 5.657

35 9.145 56 8.572 77 5.443

36 9.136 57 8.512 78 5.229

37 9.126 58 8.446 79 5.018

38 9.116 59 8.371 80 4.812

39 9.103 60 8.287 81 4.611

40 9.090 61 8.194



Family Pension

Receipt of Pension Papers

1 On receipt of the intimation about the death of an employee while in service the Head

of office will ascertain whether any Gratuity or Family Pension will be payable.

2 If the deceased employee is eligible for Death Gratuity, the Head of office shall

address the concerned person to whom the amount is payable as per rules, in form-10

or form-11 as the case may be for making a claim in form-12.

3 If the family of the deceased employee is eligible for family pension, a claim in form-

14 is obtained from the family by addressing (form-13) to make a claim. Where the

family is residing in the place of duty of Head of office, the forms and documents, if

possible, are obtained personally and for this purpose the services of Welfare Officer

can be utilised.

4 If the deceased employee was an allottee of Government accommodation, Estates

Officer should be addressed for issue of ‗No Demand Certificate‘.

Verification of Service

The Service Book of the deceased employee is verified to see whether the certificates of

verification are accepted as verified on the basis of the available entries in the service book.

While accepting such periods, it should be ensured that the service was continuous and was

not forfeited on account of dismissal/ removal or resignation from service or participation in

strike.

(a) For the purpose of determination of emoluments for Family Pension and Gratuity

the verification of correctness of emoluments is confined for a maximum period of

one year preceding the date of death of employee.

Cases of incomplete service records

a) Family Pension

1. If the deceased employee rendered more than one year but less than 7 years:

The service and emoluments for the last one year of service is verified and the

amount of family pension is determined.



2. If the service rendered is more than 7 years: The service for the last 7 years and

emoluments for the service rendered in last one year should be verified and

accepted and family pension is determined.

3. If the service rendered is more than 7 years and the service for the last 7 years is

not capable of being verified and accepted, but the service for the last one year is

capable of being verified and accepted :

Pending verification of services for 7 years, family pension is calculated.

The services for the last 7 years should be verified and accepted within the next two months

and the amount of Family Pension at enhanced rate and the period for which it is payable

should be determined.

b) Death Gratuity

1) If the deceased employee rendered more than 5 years of service but less than 20

years of qualifying service and the spell of the last 5 years has been verified and

accepted: The amount of gratuity will be equal to 12 times of emoluments. Where

the verified and accepted service is less than 5 years of qualifying service the

gratuity will be the amount as indicated in the table reproduced in Para No.9.1

2) If the deceased employee had rendered more than 24 years of service and entire

service is not capable of being verified and accepted, but the service for the last 5

years has been verified and accepted, the gratuity equal to 12 times of the

emoluments is allowed on provisional basis. Final amount of gratuity should be

determined on the acceptance and verification of the entire service, to be done

within a period of 6 months of the issue of the authority of provisional gratuity

and the balance, if any, will be authorised to the beneficiaries.

Admissibility: Family Pension is admissible on the death of a Government Servant while in

service after having put in one year‘s service, and also to those with less than one year‘s

service if proper medical fitness certificate for appointment has been submitted. It is also

admissible in the case of death of a pensioner, receiving any pension or compassionate

allowance.

Definition of ‘Family’:- ‗Family‘ in relation to a Government Servant for the purpose of

Family Pension means:-



i) Wife or Husband (even in cases where the marriage took place after

retirement),

ii) A judicially separated wife/ husband if such separation was not granted on

the ground of adultery and the surviving spouse was not held guilty of

adultery;

iii) Sons, unmarried daughters, Widowed and divorced daughters, legally

adopted son/ unmarried daughter born/ adopted before or after retirement,

who have not attained 25 years of age;

iv) Posthumous child and

v) Parents who were wholly dependent on the Government Servants when

he/she was alive provided the deceased employee had not left behind a

widow /widower, eligible son or daughter or a widowed/divorced

daughter, who will have a prior claim to the family Pension in the order

indicated.

It has since been decided by the Government that the income criteria in respect of parents and

widowed/divorced daughters will be that their earning is not more than Rs. 2,550/- per

month. The parents will get family pension at 30% of basic pay of the deceased employee

subject to a minimum of Rs. 1,275/- per month. They also will have to produce an annual

certificate to the effect that their earning is not more than Rs.2,550 per month. Further, the

family pension to the widowed/ divorced daughters will be admissible till they attain the age

of 25 years or up to the date of her re-marriage, whichever is earlier.

It has also been decided by the Government on the basis of the recommendations of the Fifth

Central Pay Commission and in partial modification of this Department‘s O.M No. 1(26)-

P&PW/90-(E). dated 18.1.1993 that the Family Pension in respect of sons /daughters

(including widowed/ divorced daughter) will be admissible subject to the condition that the

payment should be discontinued/ not admissible when the eligible son/ daughter starts

earning a sum of Rs. 2,550/- per month from employment in Government, the private sector,

self employment, etc. It is further clarified that the family pension to the son/daughter will be

admissible till he/ she attains 25 years of age or up to the date of his/ her marriage/ re-

marriage whichever is earlier. There is however, no change in the provisions about

admissibility of family pension in respect of sons/ daughters suffering from any disorder or



disability of mind or who is physically crippled or disabled as mentioned in the O.M dated

18.1.1993.

Admissibility of family pension to parents and widowed/ divorced daughter will be effective

from 1.1.1998 subject to fulfilment of other usual conditions. The cases where family pension

has already been granted to sons/ daughters after 1.1.1998 before issue/ implementation of

this OM without imposition of earning condition need not be reopened.

(G.I Dept. of Pen & Pen.Welfare O.M No. 45/51/97-P&PW(E) dtd. 5.3.98)

Parents of Government servants who died prior to 1-1-98 will also be entitled to family

pension, w.e.f. 1-1-98. The family pension wherever admissible to parents, the mother will

receive first and after her death, the father will receive the family pension.

Parents are eligible for family pension at the ordinary rate only i.e. 30% of the pay of the

deceased employee.

Payment of family pension is to be discontinued in the event of the eligible sons/daughters

(including widowed/divorced daughters) getting married/remarried or on their earning a

monthly income exceeding Rs.2550 or on attaining 25 years of age whichever is earlier.

It has been decided that if the marriage of the disabled daughter is legally annulled, she

would be eligible for family pension for life from the date her marriage stands annulled,

subject to the following conditions:-

(i) Divorce is valid in law

(ii) Divorced daughter comes back to her parental home.

(iii) Disability is certified by an appropriate authority as required under the

rules.

(iv) The requirement regarding submission of the requisite certificates as laid

down under rule 54(6) of the CCS (Pension) rules for becoming eligible to

family pension for life shall continue to remain operative.

Similarly, the widowed disabled daughter would also be eligible for family pension for life

from the date of death of her husband, subject to fulfillment of above mentioned conditions,

as applicable in her case.

(Deptt. of Pension & P.W. No.45/51/97-P&PW(E) Vol.II dt. 25-7-2001)



Payment of family pension is to be allowed to the judicially separated spouse of the deceased

G.S. after his/her children cease to be eligibility for family pension till his/ her death or

remarriage whichever is earlier.

(Deptt. of Pension & P.W. No.1/6/98-P&PW(E) dt. 5-7-1999)

Eligibility of divorced /widowed daughter for grant of Family Pension

The undersigned is directed to say that as per Clauses (ii) and (iii) of sub-rule (6) of Rule 54

of the CCS (Pension) Rules, 1972 read with clause (b) of para 7.2 of this Department‘s O.M.

No. 45/86/97-P& P W(A)-Part I, dated the 27th October, 1997, son/daughter including

widowed/divorced daughter shall be eligible for grant of family pension till he/she attains the

age of 25 years or up to the date of his/her marriage/remarriage, whichever is earlier (subject

to income criterion to be notified separately). The income criterion has been laid down in this

Department‘s O.M.No.45/51/97-P&PW(E), dated the 5th March, 1998 according to which, to

be eligible for family pension, a son/ daughter (including widowed/divorced daughter) shall

not have an income exceeding Rs.2550 per month from employment in Government, the

private sector, self employment, etc. Further order were issued vide this Department‘s O.M.

No.45/51/97-P&PW(E) (Vol.II), dated the 25th July 2001 regarding eligibility of disabled

divorced/widowed daughter for family pension for life subject to conditions specified therein.

2. Government has received representations for removing the condition of age limit in

favour of divorced/widowed daughter so that they become eligible for family pension even

after attaining the age limit of 25 years. The matter has been under consideration in this

Department for some time. In consultation with the Ministry of Finance, Department of

Expenditure and the Ministry of Lay and Justice, Department of Legal affairs etc., it has now

been decided that there will be no age restriction in the case of the divorced/widowed

daughter who shall be eligible for family pension even after their attaining 25 years of age

subject to all other conditions prescribed in the case of son/daughter. Such daughter,

including disabled divorced/widowed daughter shall, however, not be required to come back

to her parental home as stipulated in para 2(ii) of this Department‘s O.M. dated the 25th July,

2001, which may be deemed to have been modified to that extent.

(Dept. of Pen. & PW OM No.1/19/03-P & PW (E) dated 25-8-2004)



Extension of scope of family pension to unmarried daughters of Central Government

servants/pensioners

The undersigned is directed to say that as per existing provisions under clauses (ii) and (iii) of

sub-rule (6) of Rule 54 of the C.C.S. (pension) Rules, 1972, read with of para 7.2 (b) of this

Department‘s O.M. No.45/86/97-P&PW(A)-Part I dated the 27th October 1997, son/daughter

including widowed/divorced daughter is eligible for grant of family pension till he/she attains

the age of 25 years or up to the date of his/her marriage/remarriage, whichever is earlier

subject to income criterion laid sown in this Department‘s O.M.No.45/51/97-P&PW(E) dated

the 5th March 1998 which stipulates that a son/daughter, including widowed/divorced

daughter, shall not have an income exceeding Rs.2550/- per month from employment in

Government, the private sector and self employment, etc., to be eligible for family pension.

Orders were also issued vide this Department‘s O.M.No.45/51/97-P&PW (E) (Vol. II) dated

25th July 2001 regarding eligibility of disabled divorced/widowed daughter for family

pension for life subject to conditions mentioned therein. Further, orders were issued for

making the widowed/divorced daughter eligible for family pension vide this Department‘s

O.M. of even number dated 25th August, 2004.

2. The staff side of National Council (JCM) had raised the issue of extension of scope of

family pension to unmarried daughters of the government servants/Pensioners even after

attaining the age of 25 years at par with the widowed/divorced daughters, which has been

agreed to in principle. It has, accordingly, been decided that the unmarried daughters beyond

25 years of age shall also be eligible for family pension at par with the widowed/divorced

daughters subject to other conditions being fulfilled. Grant of family pension to

unmarried/widowed/divorced daughters shall be payable in order of their date of birth and

younger of them will not be eligible for family pension unless the next above her has become

ineligible for grant of family pension. It is further clarified that family pension to

unmarried/widowed/divorced daughters above the age of 25 years shall be payable only after

the other eligible children below the age of 25 years have ceased to be eligible to receive

family pension and that there is no disabled child to receive the family pension.

(Dept. of Pension & Pensioners‘ welfare No.1/19/03-P&PW(E) dt. 6-9-2007)



FAMILY PENSION - W.E.F. 1-1-2006

For the purpose grant of Family Pension, the ‗Family‘ shall be categorized as under:

Category-I

(a) Widow or widower, up to the date of death or re-marriage, whichever is earlier;

(b) Son / daughter (including widowed daughter), up to the date of his/her marriage/re-

marriage or till the date he/she starts earning or till the age of 25 years, whichever is

the earliest

Category-II

(c) (c) Unmarried/Widowed/Divorced daughter, not covered by Category I above, up to

the date of marriage/re-marriage or till the date she starts earning or up to the date of

death whichever is earliest

(d) (d)Parents who were wholly dependent on the Government servant when he/she was

alive provided the deceased employee had left behind neither a widow nor a child.

Family pension to dependent parents, unmarried/divorced/widowed daughter will continue

till the date of death.

Family pension to Unmarried/widowed/divorced daughters in Category II and dependent

parents shall be payable only after the other eligible family members in category I have

ceased to be eligible to receive family pension and there is no disabled child to receive the

family pension. Grant of family pension to children in respective categories shall be payable

in order of their date of birth and younger of them will not be eligible for family pension

unless the next above him/her has become ineligible for grant of family pension in that

category. (para 8.4 of OM dt. 2-9-2008)

The dependency criteria for the purpose of family pension shall be the minimum family

pension along with dearness relief thereon (para 8.5 dt. 2-9-2008)

The childless widow of a deceased Government employee shall continue to be paid family

pension even after her remarriage subject to the condition that the family pension shall cease

once her independent income from all other sources becomes equal to or higher than the

minimum prescribed family pension in the Central Government. The family pensioner in

such cases would be required to give a declaration regarding her income from other sources

to the pension disbursing authority every six months. (para 8.6 dt. 2-9-2008)



It has now been decided to include the dependent disabled siblings (i.e. brothers/sisters) of

Government servants/pensioners in the definition of ‗family‘ for the purpose of eligibility for

family pension. Such disabled siblings shall be eligible for family pension for life in the same

manner and following the same disability criteria, as laid down in rule 54 of the CCS

(Pension) rules, 1972 in the case of son/daughter of Government employees/Pensioners

suffering from any disorder or disability of mind (including mentally retarded) or physically

crippled or disabled, so as to render him/her unable to earn a living even after attaining the

age of 25 years.

[Dept. of Pen. & PW no.1/15/2008-P&PW(E) dt. 17-8-2009]

RATES OF FAMILY PENSION. (W.E.F 1.1.96)

Last Pay or Average Emoluments whichever is higher--- 30%

Minimum-- Rs. 1,275/- [CDA scale w.e.f. 1-4-2004 =Rs.1913]

Maximum – Rs. 9,000/- [CDA scale w.e.f. 1-4-2004 =Rs.13500]

Last Pay/ Average Emoluments = Basic Pay, NPA & Stagnation Increment [CDA

Scale (1-4-2004) Basic Pay, NPA & Stagnation Increment + Dearness Pay (50%

of Basic Pay)]

[W.E.F. 1-1-2006 Pay drawn in the prescribed pay band plus the applicable grade pay

( the pay in the pay scale in the case of HAG + and above)]

The family pension shall not be less than 30% of the minimum pay (not NPA) in the revised

scale introduced w.e.f. 1-1-96 of the post last held by the pensioner/deceased Government

servant.

W.E.F. 1-1-2006

Minimum Rs.3500 Maximum Rs.27000 (30% of highest Pay Rs.90000)

(para 8.1 of OM dt. 2-9-2008)

ENHANCED RATES OF FAMILY PENSION

i) A higher rate of family pension is payable for a period of 7 years from the

date following the date of death or for a period up to the date on which the

deceased Government Servant would have attained the age of 65 years (67

years in cases where government is to retire at the age of 60 years in



pursuance of the notification No.GSR 248(E), DATED 13-5-1998 AND

NOT WHERE Government servant has already retired at the age of 58

years or would have retired at the age of 58 years but for his premature

demise) had he survived whichever is earlier, if the Government servant

has rendered not less than 7 years of continuous service.

ii) In the case of death while in service the family will be entitled for higher

rate of family pension at the rate of 50 % of basic pay or twice the family

pension whichever is less.

iii) In the event of death of Government servant after retirement the family is

entitled for higher rate of family pension at the rate of 50% of basic pay or

twice the family pension or normal pension whichever is less.

W.E.F. 1-1-2006

The enhanced family pension under Rule 54(3)(a)(i) shall be payable to the family of a

Government servant who dies in service from the date of death of the Government servant

for a period of ten years, without any upper age limit. (para 8.2 of OM dt. 2-9-2008)

Whether the period of 10 years for payment of enhanced family pension would also

apply in the case of a Government servant

who dies before 1-1-2006 and in respect of

whom the family was receiving enhanced family pension as on 1-1-2006.

Yes. The period of 10 years for payment of enhanced family pension will count from

the date of death of the Government

servant. These orders will, however, not

apply in a case where the period of seven years for payment of enhanced family

pension has already been completed as on

1-1-2006 and the family was in receipt of

normal family pension on that date.

(Dept. of P&PW OM no.38/37/08-P&PW(A).pt.II dt.3-10-2008)

The quantum of family pension available to the old family pensioners shall be increased as

follows:-

Age of family pensioner Additional quantum of family pension

From 80 years to less than 85 years 20% of basic family pension






100 years or more 100% of basic family pension

The pension sanctioning authorities should ensure that the date of birth and the age of a

family pensioner is invariably indicated in the Form 3 (regarding details of family) and the

pension payment order to facilitate payment of additional family pension by the pension

disbursing authority as soon as it becomes due. The amount additional family pension will be

shown distinctly in the pension payment order (para 8.3 of OM dt. 2-9-2008)

The additional quantum of family pension, on attaining the age of 80 years and above, would

be admissible from the 1st day of the month in which his date of birth falls (Dept. of P&PW

OM no.38/37/08-P&PW(A).pt.II dt.3-10-2008)



DEATH GRATUITY

In the event of death in harness, the Death Gratuity shall be admissible at the following

rates:-

Emoluments = Average Emoluments / Last Pay whichever is higher

Plus DA on the date of death.

Average Emoluments/ Last Pay = Basic Pay, NPA & Stagnation Increment.

Length of Service Rate of Gratuity

Less than one year 2 times of emoluments.

One year or more but less than 5 years.

6 times of emoluments.

5 years or more but less than

20 years.

12 times of emoluments.

20 years or more Half of emoluments for every completed six

monthly period of qualifying service subject to a maximum of 33 times emoluments provided that

the amount of Death Gratuity shall in no case,

exceed 3.5 Lakh rupees w.e.f. 1.1.96. [Rs.10

Lakhs, w.e.f. 1-1-2006 (para 6.1 of OM dt. 2-9-08)]

Definition of Family: For the purpose of payment of death gratuity, ‗family‘ in relation to a

Government servant means:

i) Wife or wives (including judicially separated),

ii) Husband(including judicially separated),

iii) Sons/stepsons/adopted sons,

iv) Unmarried daughters/ stepdaughters/adopted daughters,

v) Widowed daughters/ stepdaughters/ adopted daughters,

vi) Father including adoptive father if personal law permits adoption;

vii) Mother including adoptive mother if personal law permits adoption;

viii) Brothers/ step brothers below 18 years of age;

ix) Unmarried/ Widowed sisters including step-sisters;

x) Married daughters; and

xi) Children of pre-deceased son. (Rule 50(6))

Persons to whom gratuity is payable.



i) Where a valid nomination exists:- If the nominee- family member or

members are surviving and are eligible to receive the gratuity, payment will be

made to all such nominees in the shares indicated in the nomination.

Eligibility will have to be checked whether the nominees fulfill the conditions

as on the date of death. For example, brother attaining the age of 18 years or

sister getting married before death of the official becomes ineligible. If these

events take place after the death of the official but before the payment is made,

their eligibility will not be affected. If all the nominees are alive and are

eligible, payment will be made as per the nomination without any difficulty.

ii) Where a part of the nomination only is valid:- If only some members of the

family become ineligible and the others nominated are eligible, the share/

shares of the ineligible members will be paid equally to the eligible nominees.

iii) Where there is no valid nomination:- In cases where the entire nomination

becomes invalid due to the nominee(s) as also the alternate nominee(s) either

pre-deceasing the official or becoming ineligible or where no nomination was

made, payment will be made as under:

a) in equal shares to the surviving members of the family, viz.,

spouse, sons and daughters .

b) if there are no surviving members as in (a) above, to other

members of the family as in (v) to (xi) of Para 9.2 above.

After obtaining the claim/ claims from the family, Form-18 is completed. It is sent to

Accounts Officer with a covering letter in Form-19 alongwith the documents listed

therein (from-19) within one month of the claim.

The DOT Cell(CCA) will issue a sanction letter in favour of claimant or claimants

indicating the amount of provisional family pension and 100% of gratuity. The amount

recoverable from the gratuity is also indicated.

After the issue of sanction letter, the provisional family pension and gratuity after

deducting the dues are drawn & disbursed by the DOT Cell (CCA) to the

claimant/claimants

On receipt of the papers requisite checks are exercised and section I of Part-II of Form-18

is completed. The amount of balance of gratuity is determined after adjusting all dues.



Then DOT Cell to draw & disburse the balance of gratuity to the claimant/ claimants. The

fact of issue of pension payment order is reported to the Head of Office.

When both husband and wife are Government servants

On the death of both husband & wife, the children of the deceased couple will be granted two

F.P. subject to the following limits: - (1-1-1996)

1. If both or one of the family pension is payable at the higher rate- Maximum

Rs.15,000

2. If both the F.Ps. are payable at the normal rate –Rs.9,000

(No.45/1/2001-P&PW(E) dt. 30-6-2005)

Payment of benefits when an official’s where-abouts not known.

If an employee is missing and his whereabouts are not known, his family can be paid the

retirement benefits. For this purpose, the family should have lodged a complaint with the

Police Station concerned and obtained a report that the employee has not been traced after all

efforts had been made.

Benefits payable in the first instance.: Salary due, leave encashment due and the amount of

GPF.

After one year.: i) Death Gratuity limited to the amount of Retirement Gratuity; (ii) Family

Pension from the date of FIR or expiry of leave whichever is later ; and (iii) Accumulations

from the Savings Fund under Group Insurance Scheme.

The nominees/ dependants should furnish an Indemnity Bond that all payments shall be

adjusted against the payment due to the employee in case he/ she appears on the scene at a

later date and makes a claim.



After death is established or seven years.:

i) Difference between Death Gratuity and Retirement Gratuity;

ii) Insurance cover admissible under Group Insurance Scheme;

iii) Deposit Linked Insurance Scheme (If conditions are satisfied.)

The claimants should produce proper and indisputable proof of death or Decree of the Court

that the employee concerned should be presumed to be dead as laid down in Section of 108

of the Indian Evidence Act.

Subscriptions for one year and Insurance Premium alone for the next six years will be

recovered with interest from the amounts payable on account of Savings Fund and Insurance

Fund respectively under Group Insurance Scheme.

If an employee dies while in service, his family will be eligible for immediate monetary

relief of three months‘ pay or Rs.8000, which ever is less in the form of advance (payable

only to the person, in the same manner as payment of death gratuity), which is adjustable

within 6 months from arrears of Pay & Allowances, Leave salary, Death Gratuity, balance in

GPF account or any other payment due in respect of deceased official.

Benefits from Welfare Fund

Immediate financial assistance

to the family of BSNL

employees who die in Harness.

Rs.7,000/- irrespective of the status of the employee

i.e. whether he was a permanent or temporary official

or temporary status Mazdoor.

The basic pay of the deceased employee should not be more than Rs.12750/-(CDA Pay-scale) on the date of

his/her death.

Financial assistance in cases of death occurred due to attack by robbers, terrorist, riots etc.,

(i) Death due to attack by robbers, terrorist, riots etc., while on duty Rs.10,000/-

(ii) Death due to attack by robbers, terrorists riots etc., while not on duty Rs. 5,000/-

In case of Temporary Status Mazdoors and casual labourers also the above amount is to be

paid to the bereaved families.

The financial assistance indicated above will be in addition to the immediate relief of

Rs.7,000/- and lump sum compensation wherever applicable as provided under the

company‘s orders.



5.Financial Assistance in case of death and Booking of expenditure thereof:- It has been

decided that henceforth immediate financial assistance to the family of deceased employee be

raised from Rs.7,000/- to Rs.10,000 and expenditure may continue to be met from the

Welfare Fund.

These orders shall be effective from the financial year 2006-07.

(BSNL HQ No.12-1/2005-BSNL (Welfare) dt. 24-4-2006)]

4. Financial assistance in case of death: It has been decided that the immediate financial

assistance of Rs.15,000 in case of death of employee be paid immediately to the family of

deceased employee from the administrative fund, if the welfare fund is not available,. It can

be recouped later from the Welfare fund

[BSNL HQ No.12-1/2009-BSNL(WL) dt. 1-6-2009)

Dearness relief to re-employed pensioners and employed family pensioners :-

(1) Dearness Relief at the rates applicable from time to time shall be admissible on

Family Pension.

(2) Re-employed pensioners (who held posts below Group ‗A‘ and those Ex-

servicemen who held posts below the ranks of commissioned officers at the time of

their retirement ) will be entitled to dearness relief on their pension.

(3) Re-employed pensioners(who held Group-A post or posts of the ranks of

commissioned officers at the time of their retirement ) will not be entitled to

dearness relief on pension.

POINTS OF DOUBT CLARIFICATION

Who will make the payment of:

i)DCRG

ii)Commuted value of pension iii)Provisional pension

iv)Leave encashment

v)Accumulation in the CGEGIS‘80 &

CGEIS‘77 vi)GPF final payment on

superanuation/retirement

In respect of item no.(i) to (iii) payments will

be made by the DOT Cell for the employees

whether on deemed deputation or absorbed in BSNL.

For item no.(iv) to (vi) payment will be made

by the DOT Cell to employees who are on

deemed deputation but BSNL will make payments to the employees who are absorbed

in BSNL.

(DOT Lr.No.7-1/2000-TA-I/17 dt. 18/10/2000)



Central Civil Services (Pension)Rules,1972

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

a Government Department into a Central Autonomous body or a Public sector

Undertaking:-

(1) On conversion of a department of the Central Government into a public sector

undertaking or an autonomous body, all government servants of that Department

shall be transferred en-masse to that public sector undertaking or autonomous

body, as the case may be, on terms of Foreign Service without any Deputation

Allowance till such time as they get absorbed in the said undertaking or body, as

the case may be, and such transferred government servants shall be absorbed in

the public sector under taking or autonomous body, as the case may be, with effect

from such date as may be notified by the government.

(2) The Central Government shall allow the transferred government servants an option to

revert back to the government or to seek permanent absorption in the public sector

undertaking or autonomous body, as the case may be.

(3) The option referred to in sub-rule(2) shall be exercised by every transferred

government servant in such manner and within such period as may be specified by the

government.

(4) The permanent absorption of the government servants as employees of the public

sector undertaking or a autonomous body shall take effect from the date on which their

options are accepted by the government and on and from the date of such acceptance, such

employees shall cease to be government servants and they shall be deemed to have retired

from government service.

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

autonomous body, the posts which they were holding in the government before such

absorption shall stand abolished.

(6) The employees who opt to revert to government service shall be re-deployed through

the surplus cell of the government.



(7) The employees including quasi-permanent and temporary employees but excluding

causal labourers, who opt for permanent absorption in the public sector undertaking or

autonomous body, shall on and from the date of absorption, be governed by the rules and

regulations or bye laws of the public sector undertaking or autonomous body, as the case may

be.

(8) A permanent government servant who has been absorbed as an employee of a public

sector undertaking or autonomous body shall be eligible for pensionary benefits on the basis

of combined service rendered by him in the government and in the public sector undertakin g

or autonomous body in accordance with the formula for calculation of pension/family

pension under these rules as may be in force at the time of his retirement from the public

sector undertaking or autonomous body, as the case may be.

[ For at his option, to receive pro-rata retirement benefits for the service rendered under the

Central Government in accordance with orders issued by the Central Government.(Dept. of P

& P.W.No.4/66/2005-P&PW(D) dt. 14-10-2005)]

EXPLANATION:- The amount of pension/family pension of the absorbed employee on

superannuation from public undertaking/autonomous body shall be calculated in the

same way as would be the case with a Central Government servant, retiring on

superannuation, on the same day;

(9) The pension of an employee under sub-rule(8) shall be calculated on the basis of his

last ten months‘ average pay.

(10) In addition to pension or family pension, as the case may be, the employees shall also

be eligible to dearness relief as per industrial dearness allowance pattern.

(11) The benefits of pension and family pension shall be available to quasi-permanent and

temporary transferred government servants after they have been confirmed in the public

sector undertaking or autonomous body.

(11.A) A permanent Government servant absorbed in a public sector

undertaking/autonomous body or a temporary/quasi permanent government servant who has

been confirmed in the public sector undertaking/ autonomous body subsequent to his



absorption therein, shall be eligible to seek voluntary retirement after completing 10 years of

qualifying service with the government and autonomous body/public sector undertaking

taken together, and he/she shall be eligible for pro-rata pensionary benefits on the basis of

combined qualifying service

(12) The Central government shall create a Pension fund in the form of a trust and the

pensionary benefits of absorbed employees shall be paid out of such pension fund.

(13) The Secretary of the administrative Ministry of the Public Sector Undertaking or

autonomous body shall be the chairperson of the Board of Trustees which shall include

representatives of the Ministries of Finance, Personnel, Public grievances and Pensions,

Labour, concerned Public Sector Undertaking or Autonomous body and their employees and

experts in the relevant field to be nominated by the Central Government.

(14) The procedure and the manner in which pensionary benefits are to be sanctioned and

disbursed from the pension fund shall be determined by the government on the

recommendation of the Board of Trustees.

(15) The government shall discharge its pensionary liability by paying in lump sum as a

one time payment to the Pension Fund the pro rate pension or Service Gratuity and

Retirement Gratuity for the service rendered till the date of absorption of the government

servant in the public sector undertaking or autonomous body.

(16) The manner of sharing the financial liability on account of payment of pensionary

benefits by the public sector undertaking or autonomous body shall be determined by the

government.

(17) Lump sum amount of the pro rate pension shall be determined with reference to

commutation Table laid down in Central Civil Services (Commutation of Pension) rules,

1981.

(18) The public sector undertaking or autonomous body shall make pensionary

contribution to the pension fund for the period of service to be rendered by the concerned

employees under that undertaking or body at the rates as may be determined by the Board of

Trustees so that the pension fund shall be self-supporting.



(19) If, for any financial or operational reason, the trust is unable to discharge its liabilities

fully from the pension fund and the public sector undertaking or autonomous body is also not

in 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.

(20) Payments of Pensionary benefits of the pensioners of a Government Department on

the date of conversion of it into a public sector undertaking or autonomous body shall

continue to be the responsibility of the government and the mechanism for sharing its

liabilities on this account shall be determined by the government.

(21) Nothing contained in sub-rules(12) to (20) shall apply in the case of conversion of the

Departments of Telecom Services and Telecom Operations into Bharat Sanchar Nigam

Limited, in which case the pensionary benefits including family pension shall be paid by the

government.

(22) For the purposes of payment of pensionary benefits including family pension referred

to in sub-rule(21), the government shall specify the arrangements and manner including the

rate of pensionary contributions to be made by Bharat Sanchar Nigam Limited to the

government and the manner in which financial liabilities on this account shall be met.

(23) The arrangements under sub-rule(22) shall be applicable to the existing pensioners

and to the employees who are deemed to have retired from the government service for

absorption in Bharat Sanchar Nigam Limited and shall not apply to the employees directly

recruited by the Bharat Sanchar Nigam Limited for whom it shall devise its own pension

scheme and make arrangements for funding and disbursing the pensionary benefits.

(24) Upon conversion of a Government department into a Public Sector Undertaking or

Autonomous body:-

(a) the balance of provident fund standing at the credit of the absorbed employees on the

date of their absorption in the public under taking or autonomous body shall, with the

consent of such undertaking or body, be transferred to the New Provident Fund

account of the employees in such undertaking or body, as the case may be;



(b) Earned Leave and Half Pay Leave at the credit of the employees on the date of

absorption shall stand transferred to such undertaking or body, as the case may be;

© The Dismissal or Removal from service of the Public Sector Undertaking or

Autonomous Body of any employee after his absorption in such undertaking or body

for any subsequent misconduct shall not amount to forfeiture of the retirement

benefits for the service rendered under the government and in the event of his

Dismissal or Removal or Retrenchment the decisions of the undertaking or body shall

be subject to confirmation by the Administrative Ministry concerned with the

undertaking or body.

(25) In case the government disinvests its equity in any public sector undertaking or

autonomous body to the extent of fifty-one percent or more, it shall specify adequate

safeguards for protecting the interests of the absorbed employees of such Public Sector

Undertaking or Autonomous Body.

(26) The safeguards specified under sub-rule(25) shall include option for Voluntary

Retirement or continued service in the undertaking or body, as the case may be, or

Voluntary Retirement benefits on terms applicable to government employees or employees of

the Public Sector Undertaking or Autonomous Body as per option of the employees, assured

payment of earned pensionary benefits with relaxation in period of qualifying service, as may

be decided by the government.

[(Department of Pen. and PW) (The Gazette of India-Extraordinary)

No.4/61/99-P&PW(D) dt. 30-9-2000 & No.4/61/99-P&PW(D) dt. 28-12-2002]

S.O.1821(E). In exercise of the powers conferred by the proviso to article 309 and clause (5)

of Article 148 of the constitution and after consultation with the Comptroller and Auditor

General of India in relation to persons serving in the Indian Audit and Accounts Department

and in supersession of the notification number S. O. 1487(E) dated 14th October, 2005 except

things done or omitted to be done before such supersession, the President herby makes the

following rules further to amend the Central Civil Services (Pension) Rules, 1972, namely:-

1. (1) These rules may be called the Central Civil Services (Pension) (Amendment)

Rules, 2007.

(2) They shall be deemed to have come into force from the 30th day of September,

2000 i.e. date from which provision of pro-rata pension was withdrawn.



2. In the Central Civil Services (Pension) Rules 1972, in rule 37A, for sub-rule(8), the

following sub rule shall be substituted namely:-

A permanent Government servant who has been absorbed as an employee of a public sector

undertaking or autonomous body shall be eligible for pensionary benefits on the basis of

combined service rendered by him in the Government and in the public sector undertaking or

autonomous body in accordance with the formula for calculation of pension/family pension

under these rules as may be in force at the time of his retirement from the public sector

undertaking or autonomous body, as the case may be or at his option to receive pro-rata

retirement benefits for the service rendered under the Central Government in accordance with

the orders issued by the Central Government.

Explanation:- The amount of pension/ family pension of the absorbed employee on

superannuation from Public Sector Undertaking/Autonomous Body shall be calculated in the

same way as would be the case with a Central Government servant retiring on

superannuation, on the same day.

EXPLANATORY MEMORANDUM

Option to draw pro-rata monthly pension available to the Government servants who were

transferred and absorbed in Public Sector Undertakings or autonomous Bodies set up

consequent upon conversion of a Government Department under Department of Pension and

Pensioner‘s Welfare‘s O.M.No.41/18/87-P & PW (D) dated 5-7-1989 was withdrawn w. e .f.

30-9-2000 vide Notification No. S.O. 904(E) dated 30-9-2000. The same provision was

restored through Notification No. S. O. 1487(E) dated 14-10-2005 w. e. f. 14-10-2005. The

same provision has been restored through this notification w. e. f. 30-9-2000. This is certified

that no one shall be adversely affected by giving retrospective effect to this notification.

(Dept. Pen. &PW Notification F.No.4/66/2005-P& PW (D) dated 25-10-2007)

Applicability of revised rules of CCS (Pension )Rules 1972 consequent to the 6 th CPC to

the Government employees absorbed in BSNL –Clarification -reg

I am directed to refer to this Department‘s letter of even number dated 4th/ 15th May, 2009 to

give the following clarification on the applicability of revised rules of CCS (Pension) Rules,



1972 consequent to 6th CPC to the Government employees absorbed in BSNL with regard to

emoluments, qualifying service, family pension, DCRG and commutation of pension:-

Pension

1.Emoluments: The emoluments for the purpose of all pensionary benefits (other than

gratuity) shall be equal to Basic pay plus Dearness Pay (wherever applicable). The para

5.2 and 5.3 of DOP & PW shall be applicable from 1-1-2006 subject to provisions of para 2

of DOP & PW‘s OM no.38/37/08-P&PW(A) dated 11-12-2008.

2. Qualifying Service: The revised rules shall be applicable from 2-9-2008

3. Minimum Pension: The present method of calculation of minimum pension which is 50%

of the minimum of the lowest pay scale shall continue.

4. Minimum Family Pension: The minimum family pension shall be 50% (should be 30%)

of the minimum of the lowest pay scale

DCRG

1. Emoluments: Emoluments for the purpose of all types of gratuities shall be equal to Basic

Pay plus Dearness Pay (Wherever applicable) plus IDA (as applicable)

2. Enhancement in maximum limit of DCRG: The enhanced limit for all kinds of gratuities

may be made applicable from 1-1-2006

Commutation of Pension

1. For those retiring between 1-1-2006 to 1-9-2008 (both inclusive):

Cases have not become absolute as on 2-9-2008: New table shall be made applicable with

prevalent pay scale as on date of retirement

Cases which have already become absolute: The additional amount of commutable pension

due to revision of pay shall be commuted in accordance with new table.

2. For those retiring on or after 2-9-2008: New commutation table shall apply with

prevalent pay scale as on date of retirement.

This issues with the approval of the competent authority

(DOT Lr. No.40-31/2008-Pen(T) dt. 12-8-2009)



Pension Liability for Bharat Sanchar Nigam Ltd. (BSNL) towards

pensionary benefits including Family Pension to its employees

Reference this Department‘s letter No.1045/2003-B dated 15th June, 2006 on the above noted

subject conveying the following position:-

(i) Annual pension liability of the Government in respect of employees who retired

prior to 1-10-2000 and those who have worked/ are working in BSNL on deemed

deputation and those who are absorbed in BSNL shall not exceed 60% of the

receipt to the Government on the following items:-

(a) Dividend income from MTNL/BSNL

(b) License Fee from MTNL/BSNL

© Corporate Tax/Excise Duty/Service Tax paid by BSNL

(ii) Any amount exceeding (i) shall be borne by BSNL

(iii) Pensionary contribution from BSNL would be made to Government as per FR-

116

(iv) Employees recruited directly by BSNL on or after 1-10-2000 shall not be covered

under this section

2. In this context, it is hereby clarified that the above said limit of 60% is for normal

funding. This does not in any way distract from the fact that the ultimate liability towards

pensionary benefits including family pension to the BSNL employees (excepting those

recruited after 1-10-2000), as per sub-rule 21 of Rule 37-A of CCS (Pension) Rules, 1972,

lies with the Government of India. If BSNL, for any reason, is not able to contribute to the

extent prescribed in para 1 above, the Government of India will still pay the admissible

pensionary benefits including family Pension to BSNL employees (excepting those recruited

after 1-10-2000)

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

Sub : Payment of gratuity as per provisions of BSNL Employees' Gratuity Trust Rules.

1. Bharat Sanchar Nigam Limited on its formation has appointed many persons as its

employees on or after 01.10.2000. In addition, BSNL has regularized many persons who

were working in DOT/DTS/DTO and not having temporary status as on 30.09.2000, as its

employees on or after 1.10.2000. The above-mentioned employees hereinafter called as

‗directly recruited employees‘ are covered by EPF Act & EPF Rules 1952 regarding their

provident fund and other related benefits etc.



2. As per the Payment of Gratuity Act 1972 above-mentioned ‗directly recruited

employees‘ are eligible to get death-cum-retirement gratuity. In order to comply with the

provisions of the Payment of Gratuity Act 1972, BSNL has framed BSNL Employees

Gratuity Rules for its ‗directly recruited employees‘. The Board of Directors of BSNL in its

108th Meeting has approved BSNL Employees Gratuity Rules.

3. BSNL Employees Gratuity Rules are applicable to its ‗directly recruited employees‘

as mentioned in Para 1 above. This Gratuity Rules will also be applicable to persons who will

be appointed in future.

4. BSNL Employees Gratuity Rules will not be applicable to the employees of the

Department of Telecommunications and erstwhile Department of Telecom Services &

Department of Telecom Operation who have already been absorbed and / or will be absorbed

in future in BSNL through Presidential Order issued by the Department of

Telecommunications / to be issued in future by the competent authority and who are covered

by Rule 50 of CCS (Pension) Rules 1972 read with Rules 37A of CCS (Pension) Rules 1972

and accordingly pension contributions are paid by BSNL to CCA on their account so that

pension and death cum- retirement gratuity are paid by the Govt. of India to such employees.

5. BSNL Management have also extended the benefit of gratuity as per BSNL

Employees Gratuity Trust Rules to following categories of employees or nominees of such

employees.

(a) Casual labourers / Mazdoors not having temporary status, who were regularized

by BSNL on or after 01.10.2000, retired or died in harness & governed by the order

No. 500-85/CA II/BSNL/EPF/Vol. III dt. 10.05.2007, 25.05.2007 & 21.06.2007 and

not paid pensionary and other retirement benefits including death-cum-retirement

gratuity by Department of Telecommunication

(b) Persons who were appointed by BSNL on compassionate ground on or after

1.10.2000 and governed by the order No. 500-85/CA II/BSNL/EPF/Vol. III dt.

10.05.2007, 25.05.2007 & 21.06.2007 and not paid pensionary and other retirement

benefits including death-cum-retirement gratuity by Department of

Telecommunication



6. The copy of BSNL Employees Gratuity Rules is enclosed.

7. Various eligibility criteria i.e. conditions for grant of gratuity to the ‗directly recruited

employees‘ have been given in Para 1, 22, 23, 24, 25, 26, 28 & 29 of BSNL Employees

Gratuity Trust Rules. The salient features of BSNL Employees Gratuity Rules are as follows:

a) To be eligible for getting the gratuity benefit the employees as mentioned in Para 1

& 5 above, must have completed 5 (five) years continuous service before their

retirement on superannuation / resignation / retirement / termination / permanent

incapacity due to bodily or mental infirmity

b) ‗Retirement‘ means termination of the service of any employee otherwise than on

superannuation

c) ‗Continuous Service‘ means uninterrupted service and includes service, which is

interrupted by sickness, accident, leave, lay-off or lockout, or cessation of work not

caused due to any fault of the employee concerned.

d) In case of death i.e. died in harness and disablement the condition of completion of

the 5 (five) years continuous service is not applicable. In such case the amount of

gratuity will be paid to nominee(s) of the employee and in the absence of nomination

to the legal heir(s) of the employee

e) In case of termination on account of misconduct, insolvency or inefficiency the

employee is not eligible for getting the gratuity

f) In case the employee is terminated from service for riotous or disorderly conduct or

any other act of violence on his part or for any act, which constitutes an offence

involving moral turpitude provided such offence, is committed by him in the course of

his employment, the amount of gratuity may be wholly or partly forfeited.

g) In case the employee is terminated from service for any act, willful omission or

negligence causing any damage or loss or destruction of property belonging to BSNL,

the amount of gratuity to the extent of the damage or loss so caused, shall be forfeited.

h) The amount of gratuity payable will be equal to fifteen days‘ salary for each

completed year of service subject to a maximum of Rs. 3.5 lakh (Rupees three lakh

fifty thousand)

i) Fifteen days wages / salary shall be calculated by dividing the monthly rate of

wages /salary last drawn by him, by twenty-six and multiplying the quotient by

fifteen.



j) Salary / wages for the purpose of calculation of gratuity means the sum paid by

BSNL to the employee as basic salary / wages i.e. basic pay together with any

dearness allowance and it shall not include commission, HRA, PLI, overtime and

other allowance & perquisite etc.

k) Any part of service period of six months or more, after completion of the initial

period of 5 years is to be treated as one year. However, all the concerned authority of

Circle / SSA / Civil & Electrical Division /Maintenance & Project areas / other must

scrupulously observe and follow the various provisions of BSNL Employees Gratuity

Trust Rules before allowing the gratuity benefit to the eligible employees as

mentioned above.

8. In case of eligible employees as per BSNL Employees Gratuity Trust Rules the

concerned Head of Circle / SSA / Civil & Electrical Division / Maintenance & Project

Area / Other Administrative Units shall sanction the amount of gratuity amount

payable to such employees as permissible under BSNL Employees Gratuity Trust

Rules and account for the expenditure to accode for ‗Gratuity‘ under respective

‗Remuneration‘ Schedule.

8.1 In case the superannuation / resignation / retirement / termination / death / permanent

incapacity due to bodily or mental infirmity of the directly recruited employees, has taken

place up to 31.03.2008 and in case of employees mentioned in Para 5 above necessary

liability for gratuity amount payable to such employees as permissible under BSNL

Employees Gratuity Trust Rules shall be created in the accounts of 2007-08 positively by

debiting the expenditure to accode for ‗Gratuity‘ under respective ‗Remuneration‘ Schedule

and crediting the amount to liability accode under 119 / 419 schedule. All such liabilities on

account of retirement-cum-death gratuity must be paid to the employees / nominees of

employees / legal heirs of employees within 30 days from the date of issue of this order.

(BSNL HQ No. No. 500-50/2007-08/CA II/BSNL Dated 15th May 2008)



Sub: Nomination in respect of BSNL directly recruited Employees covered under BSNL

Employees’ Gratuity Trust Rule.

Ref: This office letter No. 500-50/2007-08/CA II/BSNL dt. 15.05.2008 (Circular No. 135)

Please refer to Para 37 of BSNL Employees Gratuity Trust Rules regarding

nomination in respect of death-cum-retirement gratuity to be submitted in the prescribed form

by the ‗directly recruited employees‘ of BSNL as mentioned in Para 2 of the letter under

reference. Copies of Nomination Form i.e. Form ‗F‘, Form ‗G‘ & Form ‗H‘ in respect of

gratuity are enclosed.

Nomination in Form ‗F‘ for death-cum-retirement gratuity shall be obtained from all

the ‗directly recruited employees‘ who are eligible for getting gratuity as per BSNL

Employees Gratuity Trust Rules, which has been circulated through letter under reference.

Nomination in Form ‗G‘ shall be obtained from the concerned ‗directly recruited employees‘

as per terms & conditions mentioned in Sub – Para (D) of Para 37 of BSNL Employees

Gratuity Trust Rules. The ‗directly recruited employees‘ may modify their nomination and in

such case they will submit modification particulars in Form ‗H‘. Nomination Form for death-

cum-retirement gratuity submitted by the ‗directly recruited employees‘ shall be

countersigned by the concerned Head of the Circle / SSA / Civil & Electrical Division /

Maintenance & Project Area / Other Administrative Units or by an officer nominated who is

not below rank of SDE or equivalent rank. Such counter-signed nomination form shall be

pasted in the Service Book of the concerned ‗directly recruited employees‘

In respect of all the existing ‗directly recruited employees‘ the process of obtaining

nomination form in prescribed form, countersigning and keeping the same in Service Book

shall be completed within one month from date of this letter.

(BSNL HQ No. 500-50/2007-08/CA II/BSNL Dated 19th May 2008)



Introduction of ‘BSNL GSLI Scheme’ w.e.f. 20-8-2005, in replacement of

CGEGIS for all ex-DOT/DTS/DTO employees absorbed in BSNL and also the

employees directly recruited by BSNL

This in connection with a new Group Saving Linked Insurance Scheme drawn-up for

BSNL employees. All the ex-DOT employees, while on deemed deputation to BSNL, were

covered by Central government Employees Group Insurance Scheme (CGEGIS) of the

government of India. As a matter of Policy, PSU employees can not be members of CGEGIS

and therefore BSNL has decided to cover BSNL employees under a Group Savings Linked

Insurance Scheme from Life Insurance corporation of India w.e.f. 20th August, 2005

(deduction towards premium to be made from the salary of July, 2005). Detailed rules

and Procedures of the Scheme have since been worked out, a copy there of is enclosed.

Salient features of the Scheme are as follows:

(i) The scheme is compulsory for all employees of BSNL. Thus it will cover all the

ex-DOT employees who have been absorbed into BSNL so far and all the directly recruited

employees of BSNL. All future employees of BSNL whether directly recruited or absorbed

from government shall become members of the scheme as per rules & Procedure of the

scheme.

(ii) The D.D.Os of all BSNL units will have to ensure that no deduction towards

erstwhile CGEGI scheme is made from the employees from the salaries for the month of

August, 2005, onwards. The amount deductible towards BSNL Group Savings Linked

Insurance Scheme as per enclosed Rules shall commence from the salary for the month of

July 2005. the details of head of account, transaction process/procedure between DDO &

LIC will be communicated by finance Wing of Corporate Office. There will be deduction

towards CGEGIS equivalent as well as deductions as per new scheme from July 2005 salary.

(iii) Every directly recruited employee of BSNL will be required to nominate a

Beneficiary in the prescribed Form-I as per rule 12 of the ―BSNL GSLI Scheme‖.

(iv) The Master Record in form-II of the employees admitted as Members of the above

Scheme (ex DOT absorbed BSNL employees as well as directly recruited BSNL employees )



duly verified by D.D.Os concerned is required to be positively sent in soft as well as hard

copy form by 16th of August 2005, by each DDO to his designated P&GS unit of LIC as per

enclosed list.

(v) Each DDO will also ensure sending of Monthly Return in Form-III indicating

additions/deletions of Members to his designated P&GS unit of LIC as per procedure

prescribed in Rule 18.

(vi) Heads of Circles/SSA/Field Units may kindly ensure that duties and

responsibilities of D.D.Os in regard to implementation of the scheme as detailed in Rule &

Procedures of the Scheme are meticulously carried out by them.

(vii) The DDO‘s will transact/deal with their designated P&GS unit of LIC as per the

location of DDO and not as per location of his circle HQ. For example, a DDO of Northern

Telecom Project Circle located in Jallandhar (Punjab) will deal with LIC of India, P&GS

Department, Divisional office, Chandigarh, Jeevan Prakash, Post Box 42, Sector 17-B,

chandigary-160017 for all type of transactions in connection with this LIC based Group

Insurance Scheme.

2. Kindly nominate a Nodal Officer in your circle who will ensure that all the required action

items are met within deadlines so that the employees are covered under ―BSNL GSLI

Scheme‖ w.e.f. 20th August 2005.

3. Kindly ensure supervision of this work in respect of your circle, so that ―BSNL GSLI

Scheme 2005‖ of Life Insurance corporation of India is implemented smoothly. Any

clarification in connection with this scheme may be addressed to Jt. DDG (CA) BSNL

corporate Office, New Delhi.

BSNL GROUP SAVINGS LINKED INSURANCE SCHEME –2005

RULES

1. DEFINITIONS:

1.1 In these rules, where the context so admits, the masculine shall include the feminine,

the singular shall include the plural and the following words and expressions shall,

unless repugnant to the context, have the following meanings:-

(i) ‗COMPANY‘ shall mean the ‗BHARAT SANCHAR NIGAM LIMITED‘

inclusive of all its units located anywhere in India or abroad. Registered and



corporate Office of the company is located at B-148 statesman House 10th floor,

Barakhamba road, New Delhi-110001.

(ii) ‗EMPLOYER‘ shall mean ‘BHARAT SANCHAR NIGAM LIMITED‘ and any

other Company, firm or Corporation which may in future be managed or

controlled by or become associated with the BSNL and which may agree to

become bound by these rules and terms and conditions thereof.

(iii) ‗CORPORATION‘ shall mean the Life Insurance Corporation of India established

under Section 3 of the Life Insurance Corporation Act, 1956.

(iv) ―SCHEME‖ shall mean ‗BSNL GSLI Scheme 2005‘.

(v) ―RULES‖ shall mean the rules of the Scheme as set out below and as amended

from time to time.

(vi) ―MEMBER‖ shall mean the particular employee of the employer who has been

admitted to the membership of the scheme and on whose life an Assurance has

been or is to be effected in accordance with these Rules and terms and conditions

thereof as in force from time to time.

(vii) ―COMMENCEMENT DATE‖ shall men the 20th of August 2005, the date from

which the Scheme commences.

(viii) ―ENTRY DATE‖ shall mean:

(a) In relation to the original members admitted to the Scheme on the date of

commencement, the said date of commencement;

(b) In relation to new members of Group A or other transferred from Central

Govt. who are to be admitted to the Scheme after the commencement date,

20th of the month following the month in which deduction of premium is made

from the salary.

(c) In relation to new members directly recruited by the Employer, 20th of the

month following the month in which deduction of premium is made from the

salary.

(ix) ‖ANNUAL RENEWAL DATE‖ shall mean in relation to the Scheme the 20th

day of August 2006 and the 20th day of August in each subsequent year.

(x) ―TERMINAL DATE‖ shall mean in respect of a Member the date on which he

completes the age of retirement on Superannuation, which currently is 60 years

OR any earlier date of cessation of service on account of voluntary/premature

retirement, resignation, termination, death etc.



(xi) ―the ASSURANCE‖ shall mean the Assurance to be effected on the life of the

Member.

(xii) ―THE RUNNING ACCOUNT‖ shall mean the account to be maintained by the

Corporation in favour of the Employer to which will be credited the premium

remaining in respect of the Members after utilizing such part as is required to

provide Life Insurance Benefit, as elaborated in rule 7 and notes there under.

(xiii) ‗SERVICE‘ shall mean the period of continuous service rendered by the Member

as an employee of the employer reckoned from the date on which he enters the

Scheme to the Terminal Date. For the purpose of the Scheme, ‗Service‘ shall

include a period of authorized leave.

(xiv) ‗THE BENEFICIARY‘ shall mean in relation of a Member, the person or persons

who has/have appointed by him in terms of these rules to receive the benefits

under the Scheme in the event of his death while being insured.

(xv) ‗D.D.O.‘ shall mean Accounts Officer or any other Officer of the Accounts Dept.

of BSNL (including Circles/SSAs/Field Units) notified as D.D.O. (Drawing and

Disbursing Officer) to discharge the functions of drawal and disbursal of

Salary/Wages in respect of employees under his jurisdiction for the said purpose.

2. The Employer will act for and on behalf of the Members in all matters relating to the

‗Scheme and every act done by, agreement made with and notice given to the

Corporation shall be binding on the Members.

3. COMENCEMENT DATE:

3.1 The Scheme commences and the Rules shall take effect from 20th August 2005

4. ELIGIBILITY

(a) All BSNL Employees aged not less than 18 years and not more than 60 years

and are as per the following categorization shall be eligible to join Scheme.

Category Group

I Executives (IDA Pay scale of Rs.14500-350-18700 and beyond)

II Executives (IDA Pay scale up to Rs.13000-350-18250)

III Non Executives



(b) The existing employees as per above categorization shall join the Scheme

from the date of commencement of the Scheme (i.e. 20th August, 2005)

NOTE:

The existing employees shall mean the BSNL employees who are on roles of

the Employer as on the commencement Date.

It shall be the condition of service that existing employees who are within the

above category and all future employees shall compulsorily join the Scheme

on the relevant Entry Dates as soon as they satisfy the conditions of eligibility.

No member shall withdraw from the Scheme while he is still an eligible

employee satisfying the conditions of eligibility described above.

On promotion from Non-Executive to Executive or promotion from Category

II to Category I within Executive Categories the promoted employee will be

obliged to contribute for the enhanced Insurance Cover at the monthly

contribution/premiums shown in the table below Rule 7(i) of these Rules and

will be entitled to benefits of the enhanced category from the 20th of the

month following the month in which deduction of premium is made from

the salary.

For consideration of the above categorization, those employees who are

working on officiating/adhoc promotion basis for more than 365 days in

higher category pay scale will, for Group Insurance Scheme

deduction/membership purpose, belong to that category.

For those employees who are promoted on adhoc basis or given promotion on

officiating basis shall continue to belong to their previous category but will

move over to their higher category for Group Insurance deduction purposes as

soon as they complete 365 days in their new category. However, the enhanced

category deduction will start only on the next annual renewal date.

Note for (f) & (g) ― an employee promoted to higher post/pay scale on local

officiating/short term arrangement for a period not exceeding 180 days, shall

continue to remain in the same category of ‗BSNL GSLI Scheme‘ to which

he/she belonged immediately before his/her such promotion‖.



5. EVIDENCE OF AGE:

The ―Date of Birth‖ as entered/available in the ―Service Book‖ of the employee

concerned will be taken as evidence of age of the employee concerned.

6. EVIDENCE OF INSURABILITY:

Existing Employees of the Employer, will be deemed to have fulfilled requirement of

insurability. In respect of directly recruited Employees of the Employer, medical fitness

taken at the time of their entry into the service of the employer will be deemed to have

fulfilled requirement of evidence of their insurability.

7. CONTRIBUTION

(i) Every member shall pay a monthly contribution according to his category at the

rate as under. The contribution shall commence on the ‗Entry Date‘ and continue until the ‗Terminal Date‘ or otherwise as specified in these Rules.

Category Group Monthly

contribution/

Premium

(Rs.)

Sum

Assured

(Rs.)

I Executives (IDA Pay scale of

Rs.14500-350-18700 and beyond)

525 5,00,000

II Executives (IDA Pay scale up to

Rs.13000-350-18250)

315 3,00,000

III Non-executives in Group ‗C & D‘ 105 1,00,000

(ii) The employer shall deduct the contribution in respect of all the Members from their

salaries and remit the same in full to the Corporation for providing benefits in accordance

with these Rules.

A part of the contribution as may be fixed by the Corporation from year to year, expressed as

a uniform average amount per member shall be utilized to provide for each member Life

Assurance benefit as mentioned in Rule 8 (i). In case of non executive employees in Category

III out of monthly contribution of Rs.105/-, Rs.30/- will be towards Life cover, Rs.70/-



towards savings fund and Rs.5/- towards double accident benefit. In case of executive in

Category II, Rs.90/- will be towards life cover, Rs.210/- will be towards savings fund and

rs.15/- will be towards double accident benefit. For executives in Category I, Rs.150/- will be

towards life cover, Rs.350/- towards savings fund and Rs.25/- towards accident benefit. The

life assurance benefit will become payable upon the death of the member whilst being insured

under the Scheme. For this purpose, the Employer shall effect Assurances under the one Year

Renewable Term assurance plan with the corporation. The balance of the contribution will be

credited to a Running account to be maintained by the Corporation in favour of the employer

for providing the benefits described in rule 8(ii) to the Members. The corporation shall allow

interest on the balance in the running Account at the rates declared every year. The amount

credited towards accident benefit will be utilized for providing accident benefit in case of

death due to accident.

1. The apportionment ratio of 70:35, towards savings and risk (including DAB) of the

monthly contribution, agreed for the present can change depending upon the death experience

in the last three years. This ratio is subject to review by LIC every three years, if the claim

outgo falls below 80% or goes above 120%.

2. The ‗Savings Fund‘ will be allowed interest by LIC as declared from time to time,

which is 8% at present.

3. The increase in cover towards Life assurance benefits for the existing members placed

on higher category due to promotion shall be from the 20th of the month following month in

which increased contribution is deducted from salary.

4. A monthly return regarding (a) additions on account of fresh entrants (b) Deletions

on account of cessation of service for any reason defined as ‗Terminal Date‘ under Rule 1(x)

above, will be sent to specified offices of the corporation on monthly basis by the D.D.O. of

the Circles.

8. BENEFITS:

(i) On death of the member before the ‗Terminal Date‘ the Life Assurance benefit,

category-wise as under, together with the amount to the credit of the member in

the Running Account as on the date of his death, determined in the manner

referred to in Rule 8(ii) below shall become payable to the Beneficiary.

Category Sum Assured (Rs.)



I 5,00,000/-

II 3,00,000/-

III 1,00,000/-

(ii) On reaching ―Terminal Date‖ or on earlier cessation of service other than death,

the total amount to the credit of the member in the Running Account as shall be

determined by the Corporation having regard to the Entry Date, the amounts

credited to the Running Account from time to time, together with interest on the

date of exit shall become payable to member.

9. ACCIDENT BENEFIT:

If death of a member occurs directly from injuries caused by an accident by outward, violent

and visible means within 120 days of its occurrence solely, directly and independently of all

other causes, the corporation shall pay an additional Sum equal to the Sum assured as

described in 8(i) of the rules in respect of a member.

10. TERMINATION OF MEMBERSHIP:

10.1 The membership of the scheme in respect of a member shall terminate upon the

happening of any of the following events:

(a) Member ceasing to be in the service of the Employer

(b) Member reaching the Terminal Date.

(c) Termination of the Scheme.

10.2 Upon termination of the Membership, the Life assurance benefit of the member shall

cease forthwith and the amount at his credit in the Running Account as determined in Rule

8(ii) shall become payable.

11. MASTER POLICY:

11.1 The corporation will issue Master Policy to the Employer incorporating the terms and

conditions under which the benefits are assured.



12. SETTLEMENT OF CLAIM:

In case of exit of employee by way of Resignation/Retirement/Death, the claim amount will

be settled by the Corporation in favour of the Member or Beneficiary, appointed in Form I. In

respect of existing employees, the nominations for CGEGIS will be deemed to have been

accepted as beneficiary (s) for this Scheme.

13. AMENDMENT OR DISCONTINUANCE OF SCHEME:

13.1 The Employer may discontinue the Scheme or amend the terms and condition thereof at

any time on any Renewal Date subject to 3 months‘ previous notice being given to the

members and the Corporation and the discontinuance shall be effective from the 20th of the

month of-incident with or following the expiry of the notice period.

13.2 The corporation reserves a similar right by giving 3 months‘ notice to the Employer.

14. JURISDICTION

14.1 ALL Assurances issued under the Scheme shall be governed by Indian Laws. They

will be subject to Indian Laws including the Indian Insurance Act, 1938 as amended,

Indian Estate Duty Act 1956, the Income Tax Act, 1961 and to any legislation

subsequently introduced and shall be subject to the jurisdiction of law courts at New

Delhi.

PROCEDURES

15. ADMISSION OF EMPLOYEES AS MEMBERS OF THE SCHEME:

15.1 All D.D.Os will ensure to make entry to the effect of the employees joining the

scheme in the Service Book of the Employee concerned.

15.2 D.D.O will also ensure to obtain prescribed form-I from each directly recruited

BSNL employee in regard to Appointment of beneficiary/Beneficiaries as provided in

Rule 12 above. This form should be obtained in duplicate. DDOs will ensure to paste this

form in the Service Book of the employees.

15.3 All D.D.Os concerned will get the Employees‘ Data compiled in Master Record

(Form II) (Copy annexed), in respect of all Employees admitted as Members of Scheme.

DDOs will then get the Data contained in the aforesaid Master Record (form II) in a

floppy which should be sent along with the hard copies of his unit to the Servicing P&GS



Unit OF LIC positively by 16-8-05. This will be a one-time exercise at the

commencement of the Scheme.

16. DEDUCTION OF MONTHLY CONTRIBUTION/PREMIUM FROM THE

SALARY OF THE EMPLOYEES

16.1 From the salary of July, 2005 onwards, the contribution of the employees on the LIC

Group Insurance Scheme rate (shown in rule 7(i) above) will be deducted under this

―BSNL GSLI Scheme‖ of LIC. Following actions are required to be taken by D.D.O s

concerned to implement above provisions:-

(i) All D.D.Os to ensure that monthly contribution of all the concerned Employees

towards ―BSNL GSLI Scheme ― is deducted at the rates prescribed in Rule 7(i) above,

from the monthly salary of the Employees commencing from salary month of July, 2005

onwards. The contribution is to be deducted without any break, even including for period

of leave/dies-non/suspension etc. till terminal date. The amount so deducted is to be sent

to the designated LIC P& GS office of his State so as not to reach the designated LIC

P & GS later than 10th of every month. In the first month the cheque will go with Master

Record (form II) and subsequent months along with additions/deletion (Form III)

ILLUSTRATION

(1) The Premium for the month of July, 2005 to be remitted to LIC by 10-8-2005 will be

based on the Master record of BSNL DDO (Form II) sent to LIC vide rule 15.3 above.

(2) Next monthly premium of August should be payable by 10th September 2005 and so

on and so forth will be based on the Master Record already furnished to LIC (subject

to corrections, if any) and the additions/deletions as may be reported in Monthly

return (form III) by the respective DDO as per procedure narrated in rule 18 below.

17. MAINTAINING OF ―REGISTER‖ CONTAINING RECORDS OF MEMBERS

17.1 All D.D.Os will maintain a Register of the Employees admitted as Members of the

BSNL GLSI Scheme. The Master record (Form II) will be treated as ―Register of Members‖,

which will be updated based on Monthly return of Additions/Deletions (form III). ‗Employee

Number shall mean the Number assigned to each Employee based on which his salary/wage

is drawn.



18. MONTHLY RETURN OF ADDITIONS/DELETIONS IN THE MEMBERSHIP OF

THE SCHEME

18.1 All D.D.Os will ensure to send to designated LIC P&GS Unit a Monthly return of

Additions/Deletions in the membership of the Scheme, as per provisions contained in rule 7

(iv) in the prescribed proforma (Form III) mentioned therein positively by 10th of the month

along with that month‘s premium cheque.

19. CLAIMING OF BENEFITS FROM LIC

19.1 To enable BSNL to seek reimbursement of claims/benefits as envisaged in rule 8 above

on the termination of membership of the Employees for the reasons mentioned in rule 10

above, the following detailed procedure is prescribed for compliance by all concerned.

19.2 All D.D.Os shall furnish claims in the prescribed form-IV (Copy annexed) upon

termination of the membership of the employees on happening of any of the following

events:-

(a) Member ceasing to be in the service of the Employer (BSNL)

(b) Member reaching the ‗Terminal Date‘

19.2.1 The aforesaid claims in form-IV will be forwarded by the D.D.Os to the respective

LIC P& GS Unit by 15th of the said month for seeking reimbursement of the claims

19.2.2 Upon the receipt of reimbursement of claims from DDO, LIC P& GS Unit will

immediately release payment by Account Pay Cheque/DD in favour of concerned

Employee/Beneficiary

19.2.2.1 The LIC P&GS unit will send the DD/Cheque at par drawn in favour of the

member/beneficiary to the concerned DDO, who will immediately acknowledge its receipt to

LIC and simultaneously forward the same to the member/beneficiary. The final receipt

should be obtained from the member/beneficiary and sent to concerned LIC P&GS unit.

20. No member shall be granted any loan under this Scheme/policy.

21. RESTRAINING AN ANTICIPATION OR ENCUMBERANCE:

21.1 The benefits under the Scheme are strictly personal and cannot be assigned, charged or

alienated in any way.

22. AMENDMENTS/MODIFICATIONS IN THE RULES/PROCEDURES

22.1.1 CMD BSNL is empowered to carry out any amendment/modification in the aforesaid

rules/Procedures (in consultation with Employees/LIC, wherever it is so considered



necessary), within the provisions of the Master Policy obtained by BSNL under Group

Savings Linked Insurance Scheme of LIC.

22.1.2 Director (HRD) BSNL or any Officer so authorized by him, is empowered for

issuance of any clarification to any of the provisions of the above Scheme, including

interpretation thereof.

(BSNL HQ No.8-1/2002-Restrg(pt.) dt. 1-7-2005)

Sub: Accounting procedure for BSNL GSLI Scheme

Ref: Letter No. 8-1/2002-Restrg (Pt.) dt. 1.7.2005 issued by DDG (Restructuring)

The accounting procedures as mentioned below shall be followed in respect of BSNL GSLI

Scheme

(a) The following accodes are allotted for accounting the recovery of monthly premium

from the eligible employees:

1190210 - BSNL GSLI Scheme - 2005 L - 40

4190210 - BSNL GSLI Scheme – 2005 L - 40

The monthly recovery shall be credited to above-mentioned accode and while remitting the

monthly premium so recovered, to the designated LIC P&GS Units/Offices the above-

mentioned accode shall be debited and bank account be credited. The payment of monthly

premium must reach the designated LIC P&GS Units/offices on or before 10th of the month

following the month of recovery. All DDO must ensure that the cheque/draft is sent on or

before 8th of the month by Speed Post to the designated LIC P&GS unit/office so that it

reaches positively by 10th of the month.

(b) As per Rule 16.1 (i) of BSNL Group Savings Linked Insurance Scheme - 2005 the

contribution is to be recovered from each eligible employee without any break, even

including for period of leave/dies-non/suspension etc. till terminal date (refer Rule 1.1 (x) and

Rule 10 of BSNL GSLI Scheme for termination of membership). In case the amount of

monthly salaries (here the 'amount of monthly salaries' means the total monthly salary minus

the statutory compulsory minimum deduction towards GPF/EPF and other statutory dues

such as Income Tax, Education cess, court attachment which can't be postponed to further

periods) payable to an employee during a month isn't sufficient to recover the monthly



premium of BSNL GSLI Scheme, the amount of shortfall towards monthly premium shall be

paid by BSNL from its own fund and the said amount of shortfall towards monthly premium

shall be treated as non-interest bearing advance given to the said employee. Such advance is

given in order to continue the insurance policy and this may be treated as a welfare benefit

extended by BSNL to its employees. The amount of such advance shall be booked/debited to

accode mentioned below. Such advance shall be noted in the Retrenchment Register and

recovered from next month's salary or any other dues payable to employees i.e. TA/LTC

claim bill, transfer TA claim bill etc. If any amount of such advance, which remains pending

to be recovered at the time retirement/termination of service etc. may be recovered from the

leave encashment payment/gratuity payment/GPF final payment.

1180211 - Advance for payment of contribution towards BSNL GSLI Scheme K - 23

4180211 - Advance for payment of contribution towards BSNL GSLI Scheme K - 23

The recovery of advance shall be credited to above-mentioned accodes.

(c) As per order referred above recovery of premium towards BSNL GSLI Scheme will

start from the Salary of July 2005, however the BSNL GSLI Scheme will commence from

20.08.2005. The recovery towards CGEGIS/CGEIS shall also be made from the salary of

July 2005, however the recovery towards CGEGIS/CGEIS shall be stopped from the salary of

August 2005. Therefore, in the month of July 2005 the contribution of Rs. 105/-, Rs.315/- and

Rs. 525/- shall be deducted for BSNL GSLI Scheme in addition to the existing deduction of

Rs. 30/-, Rs.60/- and Rs.120/- as applicable to CGEGIS. However, the deduction of

contribution of Rs.30/-, Rs.60/- and Rs.120/- will be stopped from August 2005 onwards due

to discontinuation of CGEGIS/CGEIS.

(d) Copy of the order under reference and rules of BSNL Group Savings Linked

Insurance Scheme - 2005 are available in the Intranet (under Director HRD - Restructuring

Cell). All the Heads of units may kindly be instructed so that BSNL GSLI Scheme is

implemented in the month of July 2005 positively and close co-ordination shall be created by

involving the concerned officials of Administration and Finance Branches for smooth time

bound implementation of the Scheme.

(e) The date of commencement of the scheme as mentioned in column 3 of Form II

(Rule 15.3 of BSNL Group Savings Linked Insurance Scheme - 2005) may kindly be read as

'20.08.2005' instead of '20.06.2005'.



All the Circle Heads may kindly submit a status report regarding successful

implementation of BSNL GSLI Scheme by 20th August 2005 to Corporate Accounts Section

for perusal of CMD BSNL.

(BSNL HQ No. No. 500-31/2005-06/CA I/BSNL Dated 7th July, 2005)

Kindly refer to this office letter no.500-31/2005-06/CAI/BSNL dated 7-7-2005. In

this connection it is further intimated that P&GS Deptt., Central Office, Mumbai, LIC has

given consent to settle claims by DD/Cheque payable at par to the claimants i.e. no bank

commission charges will be deducted on encashment of cheque at the time of settlement of

claims.

It is further decided to remit the monthly GSLI premium to LIC by demand Draft

where the designated P&GS office is not located at the same station.

In view of above it is requested to instruct all the DDOs under your control to remit

the monthly GSLI premium by Demand Draft to the concerned designated P&GS offices that

are situated outstation. The bank charges for preparation of Demand Draft will be borne by

LIC. Accordingly the net amount of premium will be remitted after deducting the

commission charges from the total payable amount.

However as a good gesture, the concessional rates for preparation of Demand Draft

may be availed from the concerned banks where the BSNL, Corporate office has already

made agreement with them.

(BSNL HQ No.500-57/2001/CA-II/BSNL, dt. 28-9-2005)

Sl.No. Point of doubt Clarification

1 Since the commencement date is

20th August, 2005, it is felt that

no recovery need be made from the salary of July 205 in respect

of employees retiring on 31-7-

2005

No recovery is to made from the salary

of July, 2005 of the official retiring on

31-7-2005

2 Since premium for a particular

month is recovered from the

salary of previous month to be remitted to LIC before 10th of the

month, it is felt that the recovery

of premium from the salary of the

month in which the employee is retiring need not be recovered

No recovery of premium towards

BSNL GSLI scheme is to be made from

the salary of the month in which the official is retiring



3 It is presumed that Officiating

Promotion for a period not

exceeding 180 days followed by reversion and then re-promotion,

the employee will continue in the

previous category; in other words

the employee not completed 365 days continuously will not be

eligible switch over to higher

category.

Yes, the point has already been clarified

through note under para 4(g) of BSNL

GSLI Scheme, 2005 enclosed to letter No.8-1/2002-Restrg(part) dt. 1-7-05.

The note under para 4(g) should be read

along with para 4(g)

(BSNL HQ No.500-57/2005/CA II DT. 21-7-2005)

Sl. No.

Point of Doubt Clarification

1 Whether premium has to be paid for the officials who are absent for

a long period and for whom no pay

is drawn

Premium has to be paid for all eligible employees without any break including the

period of leave/dies-non/suspension etc. till

terminal date as per rule 1.1(x) and rule 10

of GSLI scheme

2 Whether the existing contribution

of CGEGIS will be adjusted

The CGEGIS and GSLI are two distinct

schemes. Therefore the question of adjustment of contribution made in

CGEGIS does not arise.

3 Whether any exception is to be

given for the recovery of new

BSNL GSLI scheme for the

official likely to be retired within a couple of months.

The clarification given in para 2 of this

office letter no.500-57/2005/CAII dated

21-7-2005 may be referred to. The

recovery of GSLI premium has to be made in all cases except in the month of

retirement of the official concerned.

4 Refund of amount held in deposit

in CGEGIS

DOT has already been requested to refund

the admissible amount lying in CGEGIS

scheme through their respective CCAs.

(BSNL HQ No.500-57/2005/CAII dt. 6-9-2005)

Sub: Applicability of BSNL GSLI Scheme in respect of Gr. ‘A’ officers .

It has been decided by the Competent Authority that the BSNL GSLI scheme should

also be extended to all Group ‗A‘ officers , who have been absorbed in BSNL and in whose

case the Presidential order has been issued , w.e.f. 20th Feb 2006. To implement the scheme

the recovery of the premium for GSLI will be made from the month of salary of January 2006

as per prescribed rates. However, the recovery of CGEGIS premium will also continue in



the month of Jan. and Feb. 2006 also so that no officer remains uncovered in any intervening

period.

The coverage of BSNL GSLI scheme should also be extended to all other absorbed

Group ‗A‘ officer in BSNL and whose presidential orders are issued time to time. (No.500-

57/2005/CA-II/BSNL Dated : 05.01.2006)

Sub:- Date of commencement of BSNL GSLI Scheme for the employees of BSNL

Ref:-1.No.8-1/2002-Restg(Pt.) dt. 1-7-2005

2.No.500-31/2005-06/CAI/BSNL dt. 7-7-2005 (Circular No.43)

Kindly refer to Para 1 of letter dt. 1-7-05 and Para © of letter dt. 7-7-05. In the said

Para it has been stated that the date of commencement of BSNL GSLI scheme is 20-8-2005.

However, the matter was taken up with LIC of India to pre-pone the date of

commencement of BSNL GSLI scheme to 1-8-2005. LIC of India has accepted our request

and issued order under No.LIC/CO/P&GS dated 16-5-2006 for pre-poning the date of

commencement of BSNL GSLI scheme for BSNL employees to 1-8-2005. Necessary change

in Master Policy issued by servicing units of P&GS may kindly be get incorporated

accordingly.

In view of above, if any employee who is covered by BSNL GSLI Scheme and

premium of July‘2005 has been deducted from his pay in July‘2005 and died in harness on or

after 1-8-2005, necessary claim for insurance amount and other entitlement in respect of such

deceased employees as per LIC based group insurance scheme shall be lodged to the

respective P&GS units of LIC of India

You are requested to take necessary action in the matter.

(BSNL HQ No.500-57?CAII/2006/BSNL dt. 18-5-2006)

Documents

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