The Central Cells have the eventual authority to decide whether a

particular person would be accepted by a particular organization. In response

to the nomination the recipient Ministry/Department should issue the letter of
appointment within a fortnight. If the recipient organization has any strong
ground against the absorption of the surplus employee sponsored for the
purpose( except in case of recommendation by UPSC in which case the
procedure for non-acceptance of Commission’s recommendation will have to
be followed) it should convey the same to the concerned cell within the said
period of fortnight. If neither objection nor any appointment letter is received by
the concerned Cell within a period of one month of the date of nomination of
the surplus employee, it will be assumed that the recipient organization has no
objection to accept the nomination .and it will be competent for the Central Cell
concerned to direct the parent organization to relieve the employee to report
for duty to the recipient organisation.
43.6 RELAXATION

Upper age limit shall not apply in the case of surplus employees. In
case of vacancies in Group A and B services/posts, the Commission may at its
discretion relax the educational qualification, experience etc. In case of
vacancies in Group C and D the employees shall not be subject to any tests or
interviews, unless otherwise decided by or in consultation with the Cell. They
shall also not be ineligible for appointment in the recipient organization on the
ground that they do not posses minimum educational qualification prescribed
for the posts to which they have been redeployed except in cases where
certain minimum technical qualification is prescribed.

43.7 MEDICAL EXAMINATION

Surplus employee re-deployed shall not be required to undergo fresh

medical examination unless different medical standards prescribed for the post
in the recipient organization or unless the person concerned had not been
medically examined in respect of his previous post or if examined declared
medically unfit.
43.8 BENEFIT OF PAST SERVICE
The past service rendered prior to redeployment should not count
toward seniority in the new organization/new post which a surplus
employee joins after he is redeployed.
The surplus employee will be treated to have been appointed by
transfer in public interest in the matter of admissibility of Joining
Time, Transfer TA Joining Time Pay for moving to the new post
located in a Central Government / Department.

332
 The surplus employees have the option to retain their existing
classification if they are redeployed in posts carrying lower
classification.
9 OPTION FOR RETIREMENT
As soon as an employee is declared surplus he will be informed of the
availability of the facility of seeking voluntary retirement under Rule 29, 48 and
48-A of the CCS (Pension)Rules 1972 and various clauses of FR 56. If a
request for retirement under any of these rules is received, it should be
processed expeditiously under the relevant rule(s) and orders for retirement
issued as early as possible.
43.10 CLOSURE OF EFFORTS FOR REDEPLOYMENT AND
TERMINATION OF SERVICES
If a surplus employee is offered alternative placement but refuses to
join such post or wilfully fails to join the said post within the period specified by
the appointing authority of the new post, without showing adequate cause for
such failure and timely applying for extension of time for joining his surplus
post further action for his redeployment may be closed and his services
terminated after serving upon him a notice of termination under the
appropriate rules as may be applicable. Similar action may be taken against a
surplus employee who refuses to join training course to which he has been
sponsored by surplus staff cell pending his redeployment, or wilfully fails to
join the same by the specified date or fails to show satisfactory progress
therein as provided for para 8.7 of the Revised Scheme for Re-deployment of
Surplus Staff.
DOP&T No.1/18/88-CS.III dated 1st April, 1989 and CCS (Re-deployment of
Staff) Rules 1990 notification dated 28th Feb., 1990
43.11 SPECIAL VOLUNTARY RETIREMENT SCHEME
The Scheme is applicable to permanent employees declared surplus in
any Ministry/ Department as a consequence of Cabinet decision for
restructuring of Ministries/ Departments, implementation of the
recommendations of the Expenditure Reforms Commission, implementation of
a decision relating to downsizing/rightsizing including restructuring of an
organization, transfer or activity to a State Government, Public Sector
Undertaking or other Autonomous Organisation, discontinuance of an ongoing
activity and introduction of changes in technology or implementation of work
study reports.
Details of the Scheme:
(a)All permanent employees rendered surplus irrespective of their age and
qualifying service can opt for the scheme.

333
 An optee to the scheme shall be entitled to receive an ex-gratia amount
equal to basic pay plus DA for the number of days worked out on the basis of
length of service @35 days for each completed year and 25 days for each
remaining year. For any part of the year, the number of days, for ex-gratia
amount will be worked out on the basis of 365 days in a year The ex-gratia will
be further subject to the following conditions:
Total number of years to be counted for payment of ex-gratia will not
exceed 33 years:
No weightage of additional service will be given for the purpose of
calculation of ex-gratia.
(iii)The ex-gratia will be subject to a minimum of Rs.25000/- or 250 days
emolument, whichever is higher.
(iv)The ex-gratia amount should not exceed the sum of the basic pay
plus DA that the employee would draw at the prevailing level for the
balance of the period of service left before superannuation.
(v)The ex-gratia amount will be paid in lump sum and amount upto
Rs.5.00 Lakhs be exempted from Income Tax.
(c ) Weightage of five years to the qualifying service shall be given under CCS
(Pension) Rules 1972 to such permanent surplus employee who has rendered
a minimum of 15 years of qualifying service on the date he is declared surplus.
However, the qualifying length of service after taking into account the
aforesaid weightage should not be more than the service he would have
rendered had he retired on the date of his superannuation.
One who opted to the scheme shall be entitled encashment of Earned
leave accumulated on the date of relief as per CCS (Leave) Rules, 1972,
payment of savings element with interest in the CGEGIS as per rules, TA/DA
as on retirement of self and family for settling anywhere in India as per
Travelling Rules and normal retirement benefits under CCS (Pension) Rules,
1972.
(e ) Group A officers will be exempted from the operation of rule 10 of the CCS
(Pension) Rules which stipulates previous sanction of the Government for
accepting commercial employment.
The permanent employee declared surplus has to exercise option for
special VRS within three months from the date he/she has been declared
surplus.
Ministries/Departments are required to furnish quarterly statement in the
prescribed proforma to Surplus Cell (Re-designated as the Division of
Retraining and Redeployment i.e. R&R) in the Department of Personnel &
Training.

334
DOP&T O.M. No.25013/6/2001-Estt(A) dated 28th Feb.2002

335
 Chapter 44

THE NEW PENSION SYSTEM

44.1 Government introduced the defined contribution based New

Pension System (NPS) from the 1st January, 2004 through a notification
dated the 22nd December, 2003 for new entrants to Central
Government service, except the Armed Forces. The monthly
contribution would be 10% of the salary and DA to be paid by the
employee and matched by the Central Government.

44.2 Tier I & Tier II -The contributions and investment returns would be
deposited in a non-withdraw-able pension tier-I account. The existing
provision of defined benefit pension and GPF would not be available to
the new recruits in the Central Government Services. In addition to that
each individual may also have a voluntary tier-II withdraw- able account
at his option. This option is given as GPF will be withdrawn for new
recruits in Central Government service. There is no contribution by the
Government into this account. These assets would be managed
through exactly the above procedures. However, the employee will be
free to withdraw part or all the money from Tier-II anytime. This
withdraw-able account does not constitute pension investment and
would attract no special tax treatment. (Tier II account available w.e.f.
1.12.2009).

44.3 Exit from NPS - Individuals can normally exit at or after the age
of 60years for tier - I of the pension system. At exit the individual would
be mandatorily required to invest 40 % of pension wealth to purchase
an annuity (from IRDA regulated life insurance company). In case of
Government employees the annuity should provide for pension for the
lifetime of the employee and his dependent parents and his spouse at
the time of retirement. The individual would receive a lump-sum of the
remaining pension wealth, which he would be free to utilize in any
manner. Individual would have the flexibility to leave the pension
system prior to age 60, in that case the mandatory annuitisation would
be 80% of the pension wealth.

44.4 The Regulator - The Government constituted an interim

regulator, the Pension Fund Regulatory and Development Authority
(PFRDA) through a Government Resolution No.5/7/2003-ECB & PR
dated the 10th October, 2003 and reissued vide Resolution No.
1(6)/2007 dated 14th November, 2008 as a precursor to a statutory
regulator with a constitution of One Chairman, two Whole-time
members, two Part-time members. In order to provide for a statutory
regulatory body the PFRDA, to undertake promotional, developmental
and regulatory functions in respect of pension funds, the Pension Fund
Regulatory and Development Authority Act, 2013 (PFRDA Act, 2013)
has been notified on 19th September, 2013.

335