Chapter-3 On Pension, Gratuity, BSNL GSLI

E1-E2 Core Rev.
Date: 15-03-2011

For Internal Circulation Only 1

CHAPTER-3

PENSION, GRATUITY, BSNL GSLI
E1-E2 Core Rev. Date: 15-03-2011


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 receipient and sometimes to a widow of the survivor.
Principles Governing Pension
There are certain underlying principles governing the grant of pension. An employee
is not eligible for pension unless the qualifying service is paid for and rendered in a
post under the Government and he is holder of a substantive appointment at the time
of retirement. In the recent past provision was made for grant of pension to the
employees who did not hold substantive appointment at the time of retirement, but
had rendered not less than 10 years of service if they retire on superannuation or
invalidation or rendered not less than 20 years and retire voluntarily. Future good
conduct is implied condition for grant of pension and it continuance in future. Various
rules relating to conditions, and regulation of amounts of pension etc., are contained
in C.C.S (Pension) Rules 1972. In this handout the procedure for verification of
services, processing the pension cases, issue of pension payment order etc., are
described in the succeeding paras.

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 employees 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 doe not come under verification cases,
but final verification of qualifying service is also done while issuing the Enfacement
Report and as such, they are entered(treated) as pension cases received for issue of
Enfacement Report.
Procedure for Verification
A service statement along with the service book is received in pension section from
the Head of the Office. The particulars of the case are entered in Register of
Applications ( SY.133) for verification of services which is maintained to watch
the proper disposal of the cases for verification of services. The serial number
assigned in the register is noted on the statement to signify the entry in the register.
The service statement is examined to see:-
1. that it is complete in all respects;
2. that the date of birth shown in it tallies with the service book;
3. that all periods of non-qualifying service agree with the entries in the
service book and no spell is left out;
4. that necessary notes regarding verification of service exist in the Service
Book;
5. that the periods of service not verified with reference to acquittance rolls
have been verified in accordance with the provisions of Rule 58(iv) of
C.C.S (Pension) Rules, 1972.


6. that necessary note exists in the Service Book under the signatures of the
Circle Accountant or other competent authority for counting any military
service which qualifies for Civil Pension;
7. in the case of foreign service the period should be verified from the
particulars already recorded in a Service Book (Part- III) by the Chief
Accounts Officer (TA).
While checking if any discrepancies affecting the qualifying service are noticed, the
case should be returned to the Head of the Office for reconciliation. If the
discrepancies are such which do not affect the qualifying service, the same can be
communicated to the Head of Office while returning the case after verification of the
qualifying service.
Issue of Verification Memo
If the case is found fit for issue of a verification memo, it is prepared and signed by
the Accounts Officer (DOT Cell). The Statement of services along with the service
book should be returned to the Unit concerned. The disposal should be noted in the
Register of Applications for verification of services. The maximum period allowed for
disposal of verification statement is 15 days from the date of receipt of the case.
Procedure followed in the Units
Preparation of List of officials due to retire
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 1
st
January and 1
st
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
Accountatns.)
5. Compilation of periodical returns etc.
(a) The procedure regarding the first item (Verification of service) has
been described already. Now the procedure for other items of work is
described in the succeeding paras.
(b) Reporting on applications for Pension: On receipt of the
applications (Pension Papers) for pension and gratuity from the Head
of Office the particulars are entered in the Register of Applications
for Pension and Gratuity in Form No. SY. 134. The serial number
assigned to each application in the register should be noted on the
application to signify its entry in the Register. Each application
should be scrutinized in respect of the following points.


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

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 1
st
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) thereunder, the period of three months and
above will be reckoned as one completed half-year.
This means that the fraction of a year consisting of
Less than 3 months to be ignored
3 months and above .one completed
but less than 9 six monthly or
months. Half year period.
9months & above ........ Two completed
six monthly or
half year periods.


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 emmoulments.But annual increment falling due during the period of earned
leave ( and not other kinds of leave) not exceeding 120 days (or during the first
120 days of earned leave) but not actually drawn will be taken into account as
emoluments drawn.
v) If the employee was on leave with leave salary after holding higher appointment
in an officiating/ temporary capacity, the benefit of emoluments drawn in such
higher post will be given (for the period of leave) only in cases where it is
certified that he would have continued to officiate in the higher post but for
leave.
vi) The pay drawn by an employee while on foreign service will not be treated as
emoluments but the pay which he would have drawn under Government but
for foreign service will alone be taken as emoluments.


vii) In the case of re-employed Civil/ Military pensioner who retains the pensionary
benefit for his past service, the element of pension, if any, by which his pay in
the re-employed post is reduced, will be taken into account as emoluments.
Calculation of Pension, Gratuity, Family Pension, Commutation Value
Points to be seen
o That the calculations have been made correctly as per the CCS(Pension)
Rules
1972.
Submission of other documents
Points to be seen: that the documents viz.,
a) 3 passport photographs (two in the case of unmarried) duly attested by the
Head of the Office.
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 upto the date of termination of the leave is taken into
account i.e., the retirement in such case does not take effect from the date of
report of the medical authority.,


iii) that the amount of leave as debited against the leave account together with
any period of duty beyond the date of the medical authoritys report should
not exceed six months.,
iv) Invalid Pension should not be less than the normal Family Pension. However
maximum commutation of Pension will be 40% of original Invalid Pension
(before raising to that of Family Pension).
Voluntary Retirement on Completion of 20 years of Qualifying Service (Rule 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 therefor. This request may be
considered by the appointing authority on merits on the condition that the
employee shall not apply for commutation of his pension before the expiry
of full notice period of 3 months.
ii. Date of retirement will be a non-working day.
Calculation of Pension and Gratuity
PENSION:
a) In the case of Govt. Servant retiring after completing qualifying service of not
less than 33 years, the amount of pension will be 50% of the average
emoluments subject to maximum of Rs.15000 per month (w.e.f 1.1.96)
[Rs.22500 w.e.f. 1-4-2004 (CDA scale)]
e.g. Pension = Average Emoluments.
2
b) In the case of Govt. Servants retiring before completing the qualifying service
of 33 years but after completing 10 years of qualifying service the amount of
pension will be proportionate to the amount calculated under (a) above and
subject to the minimum of Rs. 1275 per month (w.e.f. 1.1.96). [Rs.1913
w.e.f. 1-4-2004 (CDA scale)]



e.g. Pension for 63 six monthly period = AE X 63
2 66
Average Emoluments= Total of last 10 months emoluments
10
Emoluments = Basic Pay, N.P.A., & Stagnation Inct.
Emoluments for drawing in CDA scale w.e.f. 1-4-2004 = Basic Pay, NPA, &
Stagnation Increment + Dearness Pay (50% of Basic Pay)
In respect of civil and military pension, the floor ceiling of Rs.1275 taking the two
pensions together will not apply and the individual pensions will be governed by
respective pension rules.
(Dept. Pen. P.W. No.38/38/02-P&PW(A) dt. 23-4-2003)
W.E.F. 1-1-2006
Basic Pay in the revised pay structure means the pay drawn in the prescribed pay band
plus the applicable grade pay but does not include any other type of pay like special
pay, etc. (para 4.2 dt. 2-9-2008) ( the pay in the pay scale in the case of HAG + and
above)
The amount of pension shall be subject to minimum of Rs.3500 and maximum up to
50% of highest pay in the Government (The highest pay in the Govt. is Rs.90000
w.e.f. 1-1-2006) [para 5.5 dt. 2-9-2008]
W.E.F. 2-9-2008 (applicable to Government servants retiring on or after 2-9-
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 1
st
January, 1996 for the
post last held by the employee at the time of his retirement. [From 1-4-
2004, pension should be not less than 50% of the minimum of the CDA
scale plus Dearness Pay of the post] However such pension will be suitably
reduced pro rata, where the pensioner has less than maximum required
service for full pension as per the rule (Rule 49 of CCS (Pension) Rules,
1972) applicable to the pensioner as on the date of his/her superannuation/
retirement and in no case it will be less than Rs. 1,275 p.m. [Rs.1913 w.e.f.
1-4-2004 (CDA scale)]


W.E.F 1-1-2006
The full pension shall also not be lower than fifty percent of the sum of the minimum
of the pay in the pay band and the grade pay (or 50% of the minimum of the scale in
the case of HAG+ and above)
For those who have retired between 1-1-2006 and 2-9-2008, the pension will be
reduced pro-rata, where the pensioner had less than 33 years Q.S. (But, it should not
be less than Rs.3500). In case the pension calculated in accordance with Rule 49 of
CCS(Pension) Rules 1972, as applicable before 2-9-2008, is higher than the pension
calculated in the manner indicated above, the same (higher pension) will be treated as
Basic Pension.
[Dept. P&PW OM NO.38/37/08-P&PW(A) pt.II dt. 3-10-2008]
d) Government Servants retiring before completing qualifying service of 10
years are not eligible for pension. However they will be entitled for
lumpsum payment termed as Service Gratuity calculated @ half emoluments
for each completed 6 monthly period. Emoluments for Service Gratuity =
Basic Pay, NPA, Stagnation Increment + DA
[W.E.F. 1-1-2006 Pay drawn in the prescribed pay band plus the applicable grade pay
(the pay in the pay scale in the case of HAG + and above) +DA on the date of
retirement] (para 4.1 & 4.3 of OM dt. 2-9-2008)
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 1
st
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
/
4
th
of emoluments for each completed
six monthly period subject to a maximum of 16 times of emoluments or Rs. 3.5
lakhs whichever is less.(w.e.f. 1.1.1996)
[Maximum Gratuity Rs.10 lakhs w.e.f. 1-1-2006] (para 6.1 dt. 2-9-2008)
2. Emoluments for this purpose shall be last pay drawn or Average Emoluments,
whichever is higher plus DA on the date of retirement on Average Emoluments /
Last Pay.
3. Last Pay / Average Emoluments = Basic Pay, NPA & Stagnation Increment.

[W.E.F. 1-1-2006 Pay drawn in the prescribed pay band plus the applicable
grade pay (the pay in the pay scale in the case of HAG + and above) +DA on
the date of retirement]
4. A temporary G.S. who retires on superannuation or discharged from service or
declared invalid for further service or absorbed in an autonomous body before
completing ten years of continuous service shall be eligible to gratuity on the
same scale and rates as are applicable to permanent civil G.S. under the provisions
of CCS (Pension) Rules 1972.


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 incapacited for further Government
service by the appropriate medical authority after having rendered temporary
service of not less than 10 years, shall be eligible for grant of superannuation


/ invalid pension, retirement gratuity and family pension at the same scale as
admissible to permanent employees under the C.C.S (Pension) Rules 1972.
2. Temporary and quasi-permanent employees who seek voluntary retirement
after completion of 20 years of service shall continue to be eligible for
retirement pension and other pensionary benefits like gratuity and family
pension.
3. In case not covered by paragraphs 1 and 2 above the terminal benefits will
continue to be admissible as at present under C.C.S (Temporary Service)
Rules, 1965.

b) Death Benefits: In the event of death in harness of temporary/ quasi permanent
Government Servants, their families shall be eligible to family pension and death
gratuity on the same scale as admissible to families of permanent Government Servant
under the C.C.S(Pension) Rules, 1972.
Commutation Pension
A retired official is entitled to commute a fraction of his pension subject to a
maximum of 40% of pension sanctioned.(w.e.f. 1.1.1996)
a) The amount payable shall be calculated as shown below:
Amount of Pension to be commuted x 12 x commutation factor.
b) The commutation factor as per the commutation table on the basis of
age of next birth day shall be taken into account.
Commuted value of Pension is rounded off to the next higher rupee.
The application for commutation of pension are of two categories. A brief description
of each category is given below:

Commutation Without Medical Examination
a) A retiring official on superannuation pension can submit his application in
Form 1-A for commutation of pension before the date of superannuation to
the Head of Office. The application is forwarded to the Accounts Officer.
After verification of the application, the Accounts Officer authorises the


Head of Office to draw the amount of commuted value and disburse to the
retiring official on or after the date following date of retirement.
b) A retired official (as indicated in Rule 12 of( CCS Commutation of
Pension) Rules 1981) can submit his application in Form-1 for
commutation before the expiry of one year to the Head of office. The
application is forwarded to the Accounts Officer. After verification of the
application and receiving the PPO from the Post Office, the Accounts
Officer will issue the authority for the payment of commuted value to the
pension disbursing authority concerned and endorse a copy to the
pensioner with instruction to collect the commuted value from the pension
disbursing authority. A revised PPO for the reduced value of pension is
issued.
Commutation With Medical Examination
All the retired officials listed in Rule 18 of CCS(Commutation of Pension) Rules
1981 will apply in form-2. Commuted Value of Pension will be authorised after
medical examination and verification of the application etc.
Cases where medical examination is necessary:
1) In Superannuation Pension & Retiring Pension, if the application for
commutation is received after one year of date of retirement.
2) Invalid Pension.
3) Compulsory Retitrment Pension.
A Government Servant or a pensioner against whom Departmental or judicial
proceedings are pending is not eligible to commute a part of his pension till the
finalization of the proceedings.
Commutation is permissible on the provisional pension except in cases where the
provisional pension is sanctioned due to pendency of Departmental or judicial
proceedings.



Reduction of Pension after commutation
The reduction in the monthly pension as a result of commutation will take from
i. If pension is drawn from the Pension Disbursing Officer, the date of
receipt of the commutation amount by the pensioner or at the end of 3
months from the date of issue of authority for payment by the Accounts
Officer, whichever is earlier.
ii. If pension is drawn through Bank, the date of credit of the commutation
amount to the applicants account.
iii. If the application for commutation is submitted before superannuation,
from the date following the date of retirement. However, if payment of
commutation amount could not be effected due to administrative reasons
within the first month after retirement , the difference of pension due for
the period, i.e., from the day following the day of retirement and the day
preceding the date of receipt of commutation amount is payable to the
pensioner.
iv. Nomination: Along with the application for commutation Nomination
should be submitted in Form.5. In the event of the death of the pensioner
before receipt of the commutation amount, the commutation amount will
be paid to the nominee. In the absence of a valid nomination, the amount
will be paid as in the case of Death Gratuity, failing which to the legal
heirs.
The part of the pension commuted will be restored after fifteen years from the date
following the date of retirement, if the reduction in pension due to commutation is
effected in the first month pension itself. Otherwise, it will be restored after fifteen
years reckoned from the date of payment of the commutation amount.
W.E.F 2-9-2008
The existing Table of commutation value for pension annexed to the CCS
(Commutation of Pension) Rules, 1981 shall be substituted by a new table at Annex.I
of this O.M. (para 9.2 dt. 2-9-2008)


The revised table of commutation value for pension will be used for all commutations
of pension which become absolute after the date of issue of this O.M. (2-9-2008) In
the case of those pensioners, in whose case commutation of pension became absolute
on or after 1-1-2006 but before the issue of this OM, the pre-revised table of
commutation value for pension will be used for payment of commutation of pension
based on pre-revised pay/pension. Such pensioners shall have an option to commute
the amount of pension that has become additionally commutable on account of
retrospective revision of pay/pension on implementation of the recommendations of
the Sixth Central Pay commission. On exercising such an option by the pensioner, the
revised Table of commutation value for pension will be used for the commutation of
the additional amount of pension that has become commutable on account of
retrospective revision of pay/pension. In all cases where the date of
retirement/commutation of pension is on or after the date of issue of this OM, the
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 years
purchase
Age
next
birth
day
Commutation value
expressed as
number of years
purchase
Age
next
birth
day
Commutation value
expressed as number
of years 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


Sub:- Voluntary Retirement from BSNL Service
The undersigned is directed to say that consequent upon insertion of sub-rule 37-A
(11A) in Central Civil Services (Pension) rules, 1972 vide Central Civil Services
(Pension) Amendment Rules, 2002 notified in the Gazette of India on 28-12-2002, a
doubt arose as to whether Rule 48 and Rule 48-A of the same rules would continue to
be applicable to the employees permenently absorbed in BSNL. It also required to be
clarified as to whether the benefit of rule 48-B of CCS (Pension) Rules would be
available to the govt. employees absorbed in BSNL covered under Rule 37-A(11A).
Accordingly, all Telecom. Circle offices were advised to withhold further processing
of voluntary retirement cases till further orders vide this office letter no.17-29/2004-
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 reitrement
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)

Family Pension
Receipt of Pension Papers


1 On receipt of the intimation about the death of an employee while in service
the Head of office will ascertain whether any Gratuity or family pension will
be payable.
2 If the deceased employee is eligible for Death Gratuity, the Head of office
shall address the concerned person to whom the amount is payable as per
rules, in form-10 or form-11 as the case may be for making a claim in form-
12.
3 If the family of the deceased employee is eligible for family pension, a claim
in form-14 is obtained from the family by addressing (form-13) to make a
claim. Where the family is residing in the place of duty of Head of office, the
forms and documents, if possible, are obtained personally and for this purpose
the services of Welfare Officer can be utilised.
4 If the deceased employee was an allottee of Government accomodation,
Estates Officer should be addressed for issue of No Demand Certificate.
Verification of Service
The Service Book of the deceased employee is verified to see whether the certificates
of verification are accepted as verified on the basis of the available entries in the
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
1. Family Pension
2. 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.


3. 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.
4. 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.
a) Death Gratuity
1) I f the deceased employee rendered more than 5 years of service but less
than 20 years of qualifying service and the spell of the last 5 years has
been verified and accepted: The amount of gratuity will be equal to 12
times of emoluments. Where the verified and accepted service is less than
5 years of qualifying service the gratuity will be the amount as indicated in
the table reproduced in Para No.9.1
2) If the deceased employee had rendered more than 24 years of service and
entire service is not capable of being verified and accepted, but the service
for the last 5 years has been verified and accepted, the gratuity equal to 12
times of the emoluments is allowed on provisional basis. Final amount of
gratuity should be determined on the acceptance and verification of the
entire service, to be done within a period of 6 months of the issue of the
authority of provisional gratuity and the balance, if any, will be authorised
to the beneficiaries.
Admissibility: Family Pension is admissible on the death of a Government Servant
while in service after having put in one years service, and also to those with less than
one years service if proper medical fitness certificate for appointment has been
submitted. It is also admissible in the case of death of a pensioner, receiving any
pension or compassionate allowance.


Definition of Family:- Family in relation to a Government Servant for the purpose
of Family Pension means:-

i) Wife or Husband (even in cases where the marriage took place
after retirement),
ii) A judicially separated wife/ husband if such separation was not
granted on the ground of adultery and the surviving spouse was not
held guilty of adultery;
iii) Sons, unmarried daughters, Widowed and divorced daughters,
legally adopted son/ unmarried daughter born/ adopted before or
after retirement, who have not attained 25 years of age;
iv) Posthumous child and
v) Parents who were wholly dependent on the Government Servants
when he/she was alive provided the deceased employee had not left
behind a widow /widower, eligible son or daughter or a
widowed/divorced daughter, who will have a prior claim to the
family Pension in the order indicated.

It has since been decided by the Government that the income criteria in respect of
parents and widowed/divorced daughters will be that their earning is not more than
Rs. 2,550/- per month. The parents will get family pension at 30% of basic pay of the
deceased employee subject to a minimum of Rs. 1,275/- per month. They also will
have to produce an annual certificate to the effect that their earning is not more than
Rs.2,550 per month. Further, the family pension to the widowed/ divorced daughters
will be admissible till they attain the age of 25 years or upto the date of her 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 Departments
O.M No. 1(26)-P&PW/90-(E). dated 18.1.1993 that the Family Pension in respect of
sons /daughters (including widowed/ divorced daughter) will be admissible subject to
the condition that the payment should be discontinued/ not admissible when the
eligible son/ daughter starts earning a sum of Rs. 2,550/- per month from employment


in Government, the private sector, self employment, etc. It is further clarified that the
family pension to the son/daughter will be admissible till he/ she attains 25 years of
age or up to the date of his/ her marriage/ re-marriage whichever is earlier. There is
however, no change in the provisions about admissibility of family pension in respect
of sons/ daughters suffering from any disorder or disability of mind or who is
physically crippled or disabled as mentioned in the O.M dated 18.1.1993.
Admissibility of family pension to parents and widowed/ divorced daughter will be
effective from 1.1.1998 subject to fulfilment of other usual conditions. The cases
where family pension has already been granted to sons/ daughters after 1.1.1998
before issue/ implementation of this OM without imposition of earning condition need
not be reopened.
(G.I Dept. of Pen & Pen.Welfare O.M No. 45/51/97-P&PW(E) dtd. 5.3.98)
Parents of Government servants who died prior to 1-1-98 will also be entitled to
family pension, w.e.f. 1-1-98. The family pension wherever admissible to parents, the
mother will receive first and after her death, the father will receive the family pension.
Parents are eligible for family pension at the ordinary rate only i.e. 30% of the pay of
the deceased employee.
Payment of family pension is to be discontinued in the event of the eligible
sons/daughters (including widowed/divorced daughters) getting married/remarried or
on their earning a monthly income exceeding Rs.2550 or on attaining 25 years of age
whichever is earlier.
It has been decided that if the marriage of the disabled daughter is legally annulled,
she would be eligible for family pension for life from the date her marriage stands
annulled, subject to the following conditions:-
(i) Divorce is valid in law
(ii) Divorced daughter comes back to her parental home.
(iii) Disability is certified by an appropriate authority as required under
the rules.
(iv) The requirement regarding submission of the requisite certificates
as laid down under rule 54(6) of the CCS (Pension) rules for


becoming eligible to family pension for life shall continue to
remain operative.
Similarly, the widowed disabled daughter would also be eligible for family pension
for life from the date of death of her husband, subject to fulfillment of above
mentioned conditions, as applicable in her case.
(Deptt. of Pension & P.W. No.45/51/97-P&PW(E) Vol.II dt. 25-7-2001)
Payment of family pension is to be allowed to the judicially separated spouse of the
deceased G.S. after his/her children cease to be eligibility for family pension till his/
her death or remarriage whichever is earlier.
(Deptt. of Pension & P.W. No.1/6/98-P&PW(E) dt. 5-7-1999)
Eligibility of divorced /widowed daughter for grant of Family Pension
The undersigned is directed to say that as per Clauses (ii) and (iii) of sub-rule (6) of
Rule 54 of the CCS (Pension) Rules, 1972 read with clause (b) of para 7.2 of this
Departments O.M. No. 45/86/97-P& P W(A)-Part I, dated the 27
th
October, 1997,
son/daughter including widowed/divorced daughter shall be eligible for grant of
family pension till he/she attains the age of 25 years or up to the date of his/her
marriage/remarriage, whichever is earlier (subject to income criterion to be notified
separately). The income criterion has been laid down in this Departments
O.M.No.45/51/97-P&PW(E), dated the 5
th
March, 1998 according to which, to be
eligible for family pension, a son/ daughter (including widowed/divorced daughter)
shall not have an income exceeding Rs.2550 per month from employment in
Government, the private sector, self employment, etc. Further order were issued vide
this Departments O.M. No.45/51/97-P&PW(E) (Vol.II), dated the 25
th
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 Departments O.M. dated the 25
th
July, 2001, which
may be deemed to have been modified to that extent.
(Dept. of Pen. & PW OM No.1/19/03-P & PW (E) dated 25-8-2004)

Extension of scope of family pension to unmarried daughters of Central
Government servants/pensioners
The undersigned is directed to say that as per existing provisions under clauses (ii)
and (iii) of sub-rule (6) of Rule 54 of the C.C.S. (pension) Rules, 1972, read with of
para 7.2 (b) of this Departments O.M. No.45/86/97-P&PW(A)-Part I dated the 27
th

October 1997, son/daughter including widowed/divorced daughter is eligible for grant
of family pension till he/she attains the age of 25 years or up to the date of his/her
marriage/remarriage, whichever is earlier subject to income criterion laid sown in this
Departments O.M.No.45/51/97-P&PW(E) dated the 5
th
March 1998 which stipulates
that a son/daughter, including widowed/divorced daughter, shall not have an income
exceeding Rs.2550/- per month from employment in Government, the private sector
and self employment, etc., to be eligible for family pension. Orders were also issued
vide this Departments O.M.No.45/51/97-P&PW (E) (Vol. II) dated 25
th
July 2001
regarding eligibility of disabled divorced/widowed daughter for family pension for
life subject to conditions mentioned therein. Further, orders were issued for making
the widowed/divorced daughter eligible for family pension vide this Departments
O.M. of even number dated 25
th
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)

WE.F. 1-1-2006
For the purpose grant of Family Pension, the Family shall be categorized as under:
Category-I
(a) Widow or widower, up to the date of death or re-marriage, whichever is
earlier;
(b) Son / daughter (including widowed daughter), up to the date of his/her
marriage/re-marriage or till the date he/she starts earning or till the age of 25
years, whichever is the earliest
Category-II
(c) (c) Unmarried/Widowed/Divorced daughter, not covered by Category I above,
up to the date of marriage/re-marriage or till the date she starts earning or up
to the date of death whichever is earliest
(d) (d)Parents who were wholly dependent on the Government servant when
he/she was alive provided the deceased employee had left behind neither a
widow nor a child.
Family pension to dependent parents, unmarried/divorced/widowed daughter will
continue till the date of death.
Family pension to Unmarried/widowed/divorced daughters in Category II and
dependent parents shall be payable only after the other eligible family members in


category I have ceased to be eligible to receive family pension and there is no
disabled child to receive the family pension. Grant of family pension to children in
respective categories shall be payable in order of their date of birth and younger of
them will not be eligible for family pension unless the next above him/her has become
ineligible for grant of family pension in that category. (para 8.4 of OM dt. 2-9-2008)
The dependency criteria for the purpose of family pension shall be the minimum
family pension along with dearness relief thereon (para 8.5 dt. 2-9-2008)
The childless widow of a deceased Government employee shall continue to be paid
family pension even after her remarriage subject to the condition that the family
pension shall cease once her independent income from all other sources becomes
equal to or higher than the minimum prescribed family pension in the Central
Government. The family pensioner in such cases would be required to give a
declaration regarding her income from other sources to the pension disbursing
authority every six months. (para 8.6 dt. 2-9-2008)
It has now been decided to include the dependent disabled siblings (i.e.
brothers/sisters) of Government servants/pensioners in the definition of family for
the purpose of eligibility for family pension. Such disabled siblings shall be eligible
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.

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 1
st
day of the month in which his date of birth falls
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.15000
2. If both the F.Ps. are payable at the normal rate Rs.9000
(No.45/1/2001-P&PW(E) dt. 30-6-2005)
Payment of benefits when an officials where-abouts not known.
If an employee is missing and his whereabouts are not known, his family can be paid
the retirement benefits. For this purpose, the family should have lodged a complaint
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 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.7000/- 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.10000/-
(ii) Death due to attack by robbers, terrorists riots etc., while not on duty Rs.5000/-
In case of Temporary Status Mazdoors and casual labourers also the above amount is
to be paid to the bereaved families.
The financial assistance indicated above will be in addition to the immediate relief of
Rs.7000/- and lump sum compensation wherever applicable as provided under the
companys orders.

5.Financial Assistance in case of death and Booking of expenditure thereof:- It has
been decided that henceforth immediate financial assistance to the family of deceased
employee be raised from Rs.7000/- to Rs.10000 and expenditure may continue to be
met from the Welfare Fund.
These orders shall be effective from the financial year 2006-07.
(BSNL HQ No.12-1/2005-BSNL (Welfare) dt. 24-4-2006)]

4. Financial assistance in case of death: It has been decided that the immediate
financial assistance of Rs.15000 in case of death of employee be paid immediately to
the family of deceased employee from the administrative fund, if the welfare fund is
not available,. It can be recouped later from the Welfare fund
[BSNL HQ No.12-1/2009-BSNL(WL) dt. 1-6-2009)
Dearness relief to re-employed pensioners and employed family pensioners:-
(1) Dearness Relief at the rates applicable from time to time shall be admissible
on Family Pension.
(2) Re-employed pensioners (who held posts below Group A and those 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 CGEGIS80 &
CGEIS77
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 undertaking or autonomous body in accordance with the formula for
calculation of pension/family pension under these rules as may be in force at the time
of his retirement from the public sector undertaking or autonomous body, as the case
may be.
[ For at his option, to receive prorata retirement benefits for the service rendered
under the Central Government in accordance with orders issued by the Central
Government.(Dept. of P & P.W.No.4/66/2005-P&PW(D) dt. 14-10-2005)]



EXPLANATION:- The amount of pension/family pension of the absorbed
employee on superannuation from public undertaking/autonomous body shall be
calculated in the same way as would be the case with a Central Government
servant, retiring on superannuation, on the same day;
(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 apposition to meet the shortfall, the government shall
be liable to meet such expenditure and such expenditure shall be debited to either the
fund or to the public sector undertaking or autonomous body, as the case may be.

(20) Payments of Pensionary benefits of the pensioners of a government
Department on the date of conversion of it into a public sector undertaking or
autonomous body shall continue to be the responsibility of the government and the
mechanism for sharing its liabilities on this account shall be determined by the
government.



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

(23) The arrangements under sub-rule(22) shall be applicable to the existing
pensioners and to the employees who are deemed to have retired from the government
service for absorption in Bharat sanchar Nigam Limited and shall not apply to the
employees directly recruited by the Bharat sanchar Nigam Limited for whom it shall
devise its own pension scheme and make arrangements for funding and disbursing the
pensionary benefits.
(24) Upon conversion of a Government department into a public sector undertaking
or autonomous body:-
(a) the balance of provident fund standing at the credit of the absorbed employees
on the date of their absorption in the public under taking or autonomous body
shall, with the consent of such undertaking or body, be transferred to the new
Provident fund account of the employees in such undertaking or body, as the
case may be;

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

the dismissal or removal from service of the public sector undertaking or
autonomous body of any employee after his absorption in such undertaking or
body for any subsequent misconduct shall not amount to forfeiture of the
retirement benefits for the service rendered under the government and in the


event of his dismissal or removal or retrenchment the decisions of the
undertaking or body shall be subject to confirmation by the Ministry
administratively concerned with the undertaking or body.

(25) In case the government disinvests its equity in any public sector undertaking
or autonomous body to the extent of fifty-one percent or more, it shall specify
adequate safeguards for protecting the interests of the absorbed employees of such
public sector undertaking or autonomous body.
(26) The safeguards specified under sub-rule(25) shall include option for voluntary
retirement or continued service in the undertaking or body, as the case may be, or
voluntary retirement benefits on terms applicable to government employees or
employees of the public sector undertaking or autonomous body as per option of the
employees, assured payment of earned pensionary benefits with relaxation in period
of qualifying service, as may be decided by the government.
[(Department of Pen. and PW) (The Gazette of India-Extraordinary)
No.4/61/99-P&PW(D) dt. 30-9-2000 & No.4/61/99-P&PW(D) dt. 28-12-
2002]S.O.1821(E). In exercise of the powers conferred by the proviso to article
309 and clause (5) of Article 148 of the constitution and after consultation with
the Comptroller and Auditor General of India in relation to persons serving in
the Indian Audit and Accounts Department and in supersession of the
notification number S. O. 1487(E) dated 14
th
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 30
th
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 superannuaion, on the same day.

Explanatory memorandum
Option to draw pro-rata monthly pension available to the Government servants who
were transferred and absorbed in Public Sector Undertakings or autonomous Bodies
set up consequent upon conversion of a Government Department under Department of
Pension and Pensioners Welfares O.M.No.41/18/87-P & PW (D) dated 5-7-1989
was withdrawn w. e .f. 30-9-2000 vide Notification No. S.O. 904(E) dated 30-9-2000.
The same provision was restored through Notification No. S. O. 1487(E) dated 14-10-
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 Departments letter of even number dated 4
th
/ 15
th
May,
2009 to give the following clarification on the applicability of revised rules of CCS
(Pension) Rules, 1972 consequent to 6
th
CPC to the Government employees absorbed


in BSNL with regard to emoluments, qualifying service, family pension, DCRG and
commutation of pension:-

Pension
1.Emoluments: The emoluments for the purpose of all pensionary benefits (other
than gratuity) shall be equal to Basic pay plus Dearness Pay (wherever applicable).
The para 5.2 and 5.3 of DOP & PW shall be applicable from 1-1-2006 subject to
provisions of para 2 of DOP & PWs OM no.38/37/08-P&PW(A) dated 11-12-2008.
2. Qualifying Service: The revised rules shall be applicable from 2-9-2008
3. Minimum Pension: The present method of calculation of minimum pension which
is 50% of the minimum of the lowest pay scale shall continue.
4. Minimum Family Pension: The minimum family pension shall be 50% (should be
30%) of the minimum of the lowest pay scale

DCRG
1. Emoluments: Emoluments for the purpose of all types of gratuities shall be equal
to Basic Pay plus Dearness Pay (Wherever applicable) plus IDA (as applicable)
2. Enhancement in maximum limit of DCRG: The enhanced limit for all kinds of
gratuities may be made applicable from 1-1-2006

Commutation of Pension
1. For those retiring between 1-1-2006 to 1-9-2008 (both inclusive):
Cases have not become absolute as on 2-9-2008: New table shall be made
applicable with prevalent pay scale as on date of retirement
Cases which have already become absolute: The additional amount of commutable
pension due to revision of pay shall be commuted in accordance with new table.
2. For those retiring on or after 2-9-2008: New commutation table shall apply
with prevalent pay scale as on date of retirement
This issues with the approval of the competent authority
(DOT Lr. No.40-31/2008-Pen(T) dt. 12-8-2009)

Pension Liability for Bharat Sanchar Nigam Ltd. (BSNL) towards pensionary
benefits including Family Pension to its employees


Reference this Departments letter No.1045/2003-B dated 15
th
June, 2006 on the
above noted subject conveying the following position:-
(i) Annual pension liability of the Government in respect of employees who
retired prior to 1-10-2000 and those who have worked/ are working in
BSNL on deemed deputation and those who are absorbed in BSNL shall
not exceed 60% of the receipt to the Government on the following items:-
(a)Dividend income from MTNL/BSNL
(b)Licence fee from MTNL/BSNL
corporate Tax/Excise Duty/Service Tax paid by BSNL
(ii) Any amount exceeding (i) shall be borne by BSNL
(iii) Pensionary contribution from BSNL would be made to Government as per
FR-116
(iv) Employees recruited directly by BSNL on or after 1-10-2000 shall not be
covered under this section
2. In this context, it is hereby clarified that the above said limit of 60% is for
normal funding. This does not in any way distract from the fact that the ultimate
liability towards pensionary benefits including family pension to the BSNL
employees (excepting those recruited after 1-10-2000), as per sub-rule 21 of Rule 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 ornegligence 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
theconcerned 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. 20
th
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 16
th
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 DDOs 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. 20
th
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
10
th
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 20
th
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, 20
th
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, 20
th
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
20
th
day of August 2006 and the 20
th
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 20
th
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. 20
th

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 Rule 7(i) of these Rules and will be entitled to benefits of the
enhanced category from the 20
th
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 20
th
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 Acco7nt 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 20
th
of the month c0-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 10
th
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 10
th
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
10
th
of the month along with that months 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 15
th
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
20
th
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 10
th
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 offg. 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. 20
th
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 July2005 has been deducted from his pay in July2005 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)

Chapter-3 On Pension, Gratuity, BSNL GSLI

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