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R.Devaraju
07-05-2013, 08:37 PM
On absorption, there is an option either to receive pro- rata retirement pension benefits or count the service rendered under parent department along with future service for combined pension. This option shall be exercised within six months. Most of the absorbees opted for counting past service. Some of the absorbees, who got pro rata pension / lump sum grant, subsequently demanded for counting past service as it was more beneficial. Their request was considered by Govt. of India after various legal battles.

But the various pension rules amended subsequently have extended the following additional pension benefits to the employees opted for pro rata pension, discriminating employees opted for combined service pension by counting past service. Had the Government of India issued orders and allowed the additional pension benefits on or before the time of absorption, the absorbees who had opted for counting past service would have also opted for pro-rata pension. They are deprived of getting such additional pension benefits due to them.

1. Restoration of 1/3 rd commuted pension to the employees who opted for lump sum payment on . absorption along with Dearness Relief wef 1999.
2. Dearness Relief on pension from 1999 to all pro rata pensioners.
3. The VI Central Pay Commission has granted full pension for 10 years service.

So, the absorbees counted their past service may please note that the those who have drawn lump sum for the service rendered are drawing 1/3 rd amount of pension plus D.A for the full pension. Those who have opted for pro rata pension are getting pension with D.A in addition to DCRG and commutation. Both the groups are very much entitled for full pension from their new departments concerned if they put 10 years service there.But the absorbees who counted their past service are not getting any such benefits. Whose fault is this ? It is nothing but a discrimination, made to the absorbees who counted their past service, by the orders of Govt. of India issued in 1999 and 6th CPC. How to get their due benefits?

This is very much possible.
1. If Govt. of India gives second pension option to absorbees as it gave in 1999, so that the absorbees can examine their case afresh and opt for pro rata pension, if beneficial. The department, which received pensionary benefits for counting past service, may be advised to return the money back to parent department.

2. Alternatively, the department which absorbed the employee, can be directed to pay the received pensionary benefits to the absorbee alongwith interest treating the absorbee as the one who has drawn lump sum payment on absorption. The parent department can be advised to pay 1/3 rd pension after 15 years from the date of absorption.


For guidance and clarification, the past history, pension rules etc may please be seen. Though the option once exercised is final, it is not followed strictly by the Government of India. It has relaxed the rules and given second option in several occasions and extended the requested pension benefits to the absorbed employees. The concept of counting of past service on mobility of employees from Central Government Departments to Central Autonomous Bodies and vice-versa came into existence vide order issued under DP&AR’ O.M. No.28/10/84-PU dated 29.8.84. The above orders were made applicable to the employees of State Autonomous Bodies moving over to Central Government Department/Central Autonomous bodies and employees of State Government Departments to Central Autonomous bodies and vice-versa vide Department of Pension & Pensioners Welfare O.M. No.28/10/84-P&PW/Vol.II dated the 7th February, 1986 and subsequent orders issued on the dates various State Governments agreed to the reciprocal arrangement. Under the provisions of above orders, employees who were absorbed prior to 31.3.87 were required to exercise option for counting of past service within one year of absorption or within one year of the issue of orders as the case may be. Despite the clear instructions contained in above orders which were widely circulated to all Ministries/Departments, Department of Pension and Pensioners’ Welfare was receiving large number of representations from individual who want to get their past service counted by surrendering pro-rata pensionary benefits already drawn by them although they did not opt for counting of past service within the stipulated time period and the usual excuses are that they were not aware of the orders. Their requests were also considered and they were once again given a chance to exercise their option vide letter No.28/10/99-P&PW(B) Date: 19th April, 1999 of Department of Pension & Pensioners’ Welfare Date: 19th April, 1999.
Considering the requests of Public Sector Bank employees, now the employees were permitted re-opening of pension option and enhancement in gratuity limits – Prudential Regulatory Treatment vide letter N.o.RBI/2010-11/400 DBOD.No.BP.BC.80/ 21.04.018/2010-11 dated 9.02.2011. The BSNL absorbees were also allowed to exercise second option for pro rata pension in several occasions considering their requests.

In order to rectify the discriminations whenever experienced in the unforeseen circumstances, such as change in pension rules, court orders, pay commission orders, condition of service etc, Government will usually provide an opportunity to all concerned employees to exercise fresh option in the light of new rules so that there could not be any anomaly in the benefits due to them. But unfortunately no opportunity was given to the absorbed employees’ opted for counting past service so that they could exercise fresh option.

As per the Rule 88 of CCS Pension Rules 1972, where any Ministry or Department of the Government is satisfied that the operation of any of these rules, causes undue hardship in any particular case, that Ministry or Department, as the case may be, may, by order for reasons to be recorded in writing, dispense with or relax the requirements of that rule to such extent and subject to such exceptions and conditions as it may consider necessary for dealing with the case in a just and equitable manner with the concurrence of the Department of Pension & Pensioner's Welfare.

Hence I request all the absorbees, who have counted their past service, to join together and start a legal battle for getting second pension option. It is also to be noted that the Govt of India will never understand the discrimination and render justice unless atleast 100 or more absorbees join together and fight legally for pro rata pension to get the above cited due pension benefits. Please co-operate and offer your valuable suggestions / comments.

R.DEVARAJU. PH: 044-24864841. 9445644841.