7.1. No Government employee, civil or military, may retire with a view to being re-employed, and drawing pension in addition to pay, whether in Government service or in the service of any Local Fund.
7.2. When a person who was formerly in the civil or military employment of any Government in India obtains re-employment, whether, temporarily or permanently, in Government service or in the service of a Local Fund, it shall be incumbent on him to declare to the appointing authority the
Note:- The principle of this rule applies in the case of continued employment on retirement from Government service. The amount of the pension to be declared is that sanctioned originally, i.e., it shall be inclusive of any amount that may have been commuted (vide rules 7.5 and 7.6).
7.3. The attention of every Government employee who is re-employed should be specially called to the provisions of this Chapter by the authority re-employing him and whenever he becomes aware of such an appointment by the Accountant – General ; but the failure of such authority to do this will not be admitted as a ground for condoning any breach of the rules contained in this Chapter.
7.4. Notwithstanding anything contained in the rules in this Chapter, a wound or other extraordinary pension sanctioned under Chapter VIII of these rules and a wound or injury or disability pension or a disability addition to pension awarded under the Military rules shall continue to be drawn by a retired Government employee, civil or military, during re-employment or continued employment, and shall be subject only to the conditions of its award.
Note:- When the military pension is consolidated and service and disability elements are not explicitly differentiated, the total pension may be split up in the following manner. The service portion of the pension will be represented by the service pension earned, or, if no service pension has been earned, by the proportionate service pension calculated with reference to the minimum ordinary pension admissible for the rank and the actual length of service rendered. In calculating this service element an amount of fifty paise and over shall be taken as a whole rupee, amounts of less than fifty paise being ignored. The disability portion of the pension will be the balance.
7.5. In the case of a pensioner who is re-employed in Government service or in the service of a Local Fund and who commutes a portion of his pension after such re-employment, the amount of pension which the pensioner is entitled to draw under the rules in Section II of this Chapter shall be the amount to which he would have been entitled had there been no commutation, less the amount commuted.
In the case of a pensioner whose pension is held wholly in abeyance during such re-employment and who commuted a portion of his pension during this period, his pay, during re-employment shall be reduced by the amount of pension commuted, with effect from the date on which the commutation becomes absolute. In the case of a pensioner whose pension is held partly in abeyance during such re-employment and who during this period commutes a portion of his pension in excess of the portion actually drawn, his pay during re-employment shall be reduced, with effect from the date on which the commutation becomes absolute, by an amount representing the difference between the portion of pension commuted and the portion of pension drawn until the commutation.
7.6. In the case of a pensioner a portion of whose pension has been commuted before re-employment, the original amount of the pension should be taken in to consideration in fixing the total receipt during re-employment or continued employment and not merely the un-commuted pension.
Re-Employment of Civil
Pensioners
A- GENERAL
7.7 The rules in this Section do not apply to pensioners re-employed under the Court of Wards.
7.8 Omitted.
7.9.Omitted.
B- AFTER
COMPENSATION OR INVALID GRATUITY
7.10. A Government employee who has retired from Government service with a compensation gratuity or who has retired with an invalid gratuity but is sufficiently restored to health, if re-employed, in qualifying service, may either retain his gratuity, in which case his former service will not count for future pension, or refund it and count his former service.
7.11. The intention to refund gratuity must be stated immediately on re-employment; but the refund may be made by monthly instalments of not less than one –third of his pay, and also not less than the whole gratuity divided by the number of months which have elapsed since the end of the service for which the gratuity was given. The right to count previous service shall not revive till the whole gratuity is refunded. He need not refund a gratuity given under rule 5.9 in lieu of notice of discharge unless the period of unemployment falls short of three months. In the latter case he may retain a portion of the gratuity equal to the proportion which the period of unemployment bears to three months. If the Government employee is re-employed only temporarily he need refund no part of his gratuity; but if such temporary employment is foreseen the gratuity should be proportionately reduced.
Note:- The equity of this rule is based upon the consideration that so long as the refund of the gratuity is postponed, the Government employee avoids risk and the Government loses the possibility of the gratuity lapsing absolutely to the public treasury by the death or dismissal of the Government employee. A subsequent refund of a gratuity, even with compound interest does not compensate the Government for the loss of this possibility meanwhile.
7.12. Omitted.
7.13. A Government employee who has obtained a compensation pension, if re-employed, may retain his pension in addition to his pay : provided that if he is re-employed in a post paid from the Government revenue, the pension shall remain wholly or partly in abeyance, if the sum of the pension and the initial pay on re-employment exceeds his substantive pay immediately before retirement, that is, a Government employee can draw so much of pension only as will make his initial pay plus pension equal to his substantive pay at the time of his retirement. Once the amount of the pension has been fixed in conformity with the above conditions the Government employee shall be entitled to receive the benefit of increments in his new scale or promotion to another scale or post without a further corresponding reduction in pension; nor shall the amount of pension so fixed be varied during leave. In the case, however of a pensioner re-employed in either a permanent or a temporary post, for bona fide temporary duty lasting for not more than a year, the Government or, in cases where the pension does not exceed Rs. 40 a month, the authority which controls the establishment on which the pensioner is to be employed may allow the pension to be drawn in whole or in part even though the sum total pay and pension exceeds his substantive pay at the time of his retirement.
Note 1: In the case of a section-writer whose service has been allowed to qualify the pension under special orders of the competent authority or of a Press servant (see rule 3.28) re-employed, the substantive pay at the time of discharge is taken at the average earnings of the last six months of employment.
Note 2. - This rule applies to the re-employment on all establishments paid from the Government revenues, whether paid by fixed pay or by fluctuating monthly allowances, but it does not apply to pensioners employed on work as coolies on daily wages.
Note 3. - In the case of re-employment under a Local Fund, no deduction is made from a compensation pension.
Note 4. - The competent authority may permit a Government employee who had obtained a compensation pension and is afterwards re-employed in a permanent or temporary post duty sanctioned by competent authority, to draw his full pension in addition to the pay and allowances of the post irrespective of the period of such re-employment.
Note 5.- The restrictions in this rule do not apply to ex-policemen whose pension does not exceed Rs. 40 a month.
Note 6. - A re-employed Government employee is a new entrant and is therefore, not entitled to Sterling Overseas Pay unless it is admissible in similar circumstances if a new entrant is recruited. As regards the fixation of initial pay on re-employment, there are two limiting conditions :-
(a) The pay of the post in which a Government employee is re-employed, and
(b) The substantive pay of the Government employee at the time of retirement.
Substantive pay has to be interpreted in terms of rule 2.55 of the Punjab Civil Services Rules, Volume I, Part I.
While there is no obligation to give a Government employee re-employed, pay (including pension) equal to substantive pay (including overseas pay) drawn by him before retirement the rules permit a Government employee being allowed so much of pension as will, with initial pay, equal to substantive, pay, the fixation of pay being a matter fully within the discretion of the competent authority.
7.14. If the re-employment is in qualifying service, the Government employee may either retain his pension (subject to the proviso stated in rule 7.13) in which case his former service will not count for future pension, or cease to draw any part of his pension and count his previous service. Pension intermediately drawn need not be refunded.
Note. - A Government employee counts his previous service under this rule if on re-employment his pension remains wholly in abeyance under the proviso to rule 7.13.
7.15. If a Government employee does not within three months from the date of his re-employment, exercise the option conceded by rule 7.14, of ceasing to draw pension and counting his former service, he can not, thereafter, do so without the permission of the competent authority.
7.16 There is no bar to the re-employment of a Government employee who has regained health after obtaining Invalid Pension, or if a Government employee is invalided as being incapacitated for employment in a particular branch of the service, to his-re-employment, in some other branch of the service. The rules in such a case as to refunding gratuity, drawing pension, and counting service, are the same as in the case of re-employment after compensation pension.
Note. Omitted.
E - AFTER SUPERANNUATION OR
RETIRING PENSION
7.17 A Government employee who is in receipt of a superannuation or retiring pension shall not be re-employed or continue to be employed in service paid from the Government revenues or from a Local Fund, except on public grounds and in a purely temporary capacity with the sanction of the competent authority.
Note. -A competent authority may declare that the restrictions contained in this rule shall not apply to any particular local fund or to Local Funds of any particular class or that they shall apply subject to such modifications as it may direct.
7.18 The authority competent to fix the pay and allowances of the post in which the pensioner is re-employed shall determine whether his pension shall be held wholly or partly in abeyance. If the pension is drawn wholly or in part, such authority shall take the fact into account in fixing the pay to be allowed to him.
7.18 (a) Pay on re-employment of civil pensioner will be fixed as per pay last drawn subject to the maximum of the pay scale in which re-employed. Original pension he will continue to draw his pension separately.
(b) Pay on re-employment of Military Pensioner will be fixed at the minimum of the scale of pay of the post in which he re-employed. He will continue pension separately.
Note 1. - A Head of Department when delegated powers under rule 7.17, may not allow the pensioner to draw full pension in addition to the full pay of the post except when the re-employment or continued employment is for bonafide temporary duty lasting for not more than one year or the pension does not exceed Rs. 50 a month. When the power is delegated to any other subordinate authority such authority may not allow the pensioner to draw in full a pension of more than Rs. 50 a month, in addition to the full pay of the post. Where the pension exceeds Rs. 50 a month such authority may also the pensioner to draw a pension of Rs. 50 a month in addition to the full pay of the post.
Note 2. - Where the employment is in service paid from a Local Fund authority determining whether the pension shall be, wholly or partly, held in abeyance shall be either :-
(i) The authority administering the Local Fund, if so empowered by the competent authority by special or general orders in this behalf ; or
(ii) In any other case such other authority as the competent authority may prescribe.
(iii) The provisions of Note 4 below apply mutatis mutandis to retired Government employees re-employed under Local Funds.
Note 3. - (a) In determining the pay of a re-employed pensioner the following principles shall be observed namely:-
(i)
the pay must not exceed the
substantive pay drawn immediately before retirement or the maximum of the scale
applicable to the post in which the Government employee is re-employed
whichever is less and pension which is non-effective pay, shall not ordinarily
be allowed in addition :
Provided that if the pension does not exceed Rs. 50 p.m. the entire amount of pension and where it exceeds Rs. 50 per month the first Rs. 50 shall not be taken into account in fixing the pay on re-employment.
(ii) if in any case pension is allowed in addition to pay, the pay plus pension including commuted portion, if any, shall not exceed the substantive pay drawn immediately before retirement or the maximum of the post in which he is re-employed, whichever is less.
(b) In fixing the pay in accordance with the above principle, the pension ‘equivalent’ of the death-cum-retirement gratuity should always be taken into account, in case of retirement Government employees who before re-employment were governed by the New Pension Rules or had opted for the modified pension rules,
The pension equivalent of the death-cum-retirement gratuity will be determined on the basis of the commutation table applicable to the Government employee at the time of retirement:-
Provided that in cases where death-cum-retirement gratuity or anticipatory death-cum-retirement gratuity can not actually paid to the retired Government employee during the period of re-employment or a part thereof, ‘the pension equivalent’ to that unpaid amount of death-cum-retirement gratuity will not be accounted for and will not be deducted from the pay admissible to the retired Government employee during that period of re-employment or a part thereof, as the case may be, provided no delay is caused in the authorization of the amount of death-cum-retirement gratuity because of the failure on the part of the employee to comply with procedure for furnishing such information and such particulars to the Head of office in the absence of which it is not possible to issue an authority for payment of gratuity.
Provided further that if a Government employee while holding a permanent post in a substantive capacity has officiated in a higher post or has held a higher temporary post continuously for not less than ten months, prior to his retirement, the pay drawn by him in an officiating capacity at the time of retirement will be treated as substantive pay for the purpose of determining his pay on re-employment.
Note 4. - It is permissible to allow commutation of a portion of pension, within admissible limits, even when the pension is held wholly in abeyance and even if, in cases where it is held partly in abeyance, the amount of pension desired to be commuted exceeds the amount of pension actually drawn. If a pensioner, whose pension is held wholly in abeyance commutes his pension, his pay during re-employment will be reduced from the date the commutation becomes effective, by the amount of pension commuted. If, however, the commutation is in respect of a pension partly held in abeyance, that portion of the pension which is actually drawn during re-employment, will first be set off against commutation and if the pension drawn is not sufficient to cover the amount to be commuted, the different will be set off against the portion held in abeyance, a corresponding reduction being made in the pay during re-employment with effect from the date the commutation becomes effective.
Note 5. - In the case of a Government employee retiring under Contributory Provident Fund benefits, the pension equivalent of the total contribution payable by Government along with the interest due thereon should be taken into account for the purpose of determining his pay during re-employment. The pension equivalent in such cases should also be determined by applying the current Table of Commutation of Pension as in the case of Death-cum-Retirement Gratuity.
SECTION III -
Re-Employment of Military Pensioners
Substituted vide Notification No.6/287/IFPH/5305 dated 8/21 July, 1993.
7.19 Omitted.
7.20 Omitted.
SECTION IV -
Pension For New Service
7.21 Except as provided in Section III, a Government employee who, having been discharged with a pension, is subsequently re-employed, may not count his new service for a separate pension. Pension (if any) is admissible only for the new service combined with the old, the whole being counted as one service.
7.22 If a Government employee who has obtained a compensation or invalid pension is re-employed in pensionable service and retains the pension (see rules 7.13, 7.14 and 7.16), the pension or gratuity admissible for his subsequent service is subject to the following limitation, namely, that the gratuity or the capital value of the pension shall not be greater than the difference between the value of the pension that would be admissible at the time of the Government employee's final retirement, if the two periods of service were combined and the value of the pension already granted for the previous service.
Note. - The capital value of the pension granted for the previous service should be calculated on the basis of the age of the Government employee on the date of the final retirement from service.
7.23 (a) If a gratuity received for the earlier service has not been refunded, gratuity or pension (as the case may be) may be allowed for the subsequent service, on the condition that the amount of such gratuity or the present value of such pension plus the amount of the previous gratuity shall not exceed the amount of gratuity or the present value of the pension that would have been admissible had the gratuity received for the earlier service been refunded.
(b) If the amount of such gratuity or the present value of such pension, plus the amount of the previous gratuity, exceed the amount of gratuity or the present value of the pension that would have been admissible if the gratuity received for the earlier service had been refunded, the excess must be disallowed.
7.24 For the purpose of rules 7.23 and 7.24, the capital or present value of a pension shall be calculated in accordance with the Tables under the rules in Chapter XI.
SECTION V - Commercial Employment After
Retirement
7.24.1 (1) If a pensioner who immediately before his retirement was a member of the State Services Class I, wishes to accept any commercial employment before the expiry of two years from the date of his retirement, he shall obtain the previous sanction of the Government to such acceptance by submitting an application in Form Pen. 19 :
Provided that a Government employee who was permitted by the Government, and in the of Vidhan Sabha Secretariat employee excluding the Secretary Vidhan Sabha, by the Speaker, to take up a particular form of commercial employment during his leave preparatory to retirement or during the period of refused leave shall not be required to obtain subsequent permission for his continuance in such employment after retirement.
(2) Subject to the provisions of sub-rule(3) the Government may, by order in writing, on an application made under sub-rule (1) by a pensioner, grant, subject to such conditions, if any, as it may deem necessary, permission, or refuse for reasons to be recorded in the order, permission, to such pensioner to take up the commercial employment specified in the application.
(3) In granting or refusing permission under sub-rule (2), to a pensioner for taking up any commercial employment, the Government shall have regard to the following factors, namely :-
(a) the nature of the employment proposed to be taken up and the antecedents of the employer ;
(b) whether his duties in the employment which he proposes to take up might be such as to bring into conflict with Government;
(c) whether the pensioner while in service had any such dealing with the employer under whom he proposes to seek employment as might afford a reasonable basis for the suspicion that such pensioner has shown favours to such employer;
(d) whether the duties of the commercial employment proposed involve liaison or contact work with Government department;
(e) whether his commercial duties will be such that his previous official position or knowledge of experience under Government could be used to give the proposed employer an unfair advantage;
(f) the emoluments offered by the proposed employer; and
(g) any other relevant factor.
(4) Whether the Government grants the permission applied for subject to any conditions or refuses such permission, the applicant may, within thirty days of the receipt of the order of the Government to that effect, make a representation against any such condition or refusal as the case may be, and the Government may make such orders thereon as it deems fit :
Provided that no order other than an order canceling such condition or granting such permission without any conditions shall be made under this sub-rule without giving the pensioner making the representation a reasonable opportunity to show cause against the order proposed to be made.
(5) If any pensioner takes up any commercial employment at any time before the expiry of two years from the date of his retirement without the prior permission of the Government or commits a breach of any condition subject to which permission to take up any commercial employment has been granted to him under this rule, it shall be competent for the Government to declare by order in writing and for reasons to be recorded therein that he shall not be entitled to the whole or such part of the pension and for such period as may be specified in the order :
Provided that no such order shall be made without giving the pensioner concerned a reasonable opportunity of showing cause against such declaration :
Provided further that in making any order under this sub-rule, the Government shall have regard to the following factors, namely :-
(i) the financial circumstances of the pensioner concerned;
(ii) the nature of and the emoluments from, the commercial employment taken up by the Pensioner concerned ; and
(iii) any other relevant factor.
(6) Every order passed by the Government under this rule shall be communicated to the pensioner concerned ;
(7) In this rule. -
(a) the expression commercial employment means :-
(i) an employment in any capacity including that of an agent, under a company, co-operative Society, firm or individual engaged in trading, commercial, industrial, financial or professional business and includes also a directorship of such company and partnership of such firm, but does not include employment under a body corporate, wholly or substantially owned or controlled by the State Government ;
(ii) setting up practice, either independently or as a partner of a firm, as adviser or consultant in matters in respect of which the pensioner -
(1) has no professional qualifications and the matters in respect of which the practice is to be set up, is carried on are relatable to his official knowledge or experience, or
(2) has professional qualifications but the matters in respect of which such practice is to be set up are such as are likely to give his clients an unfair advantage by reasons of his previous official position ; or
(3) has to undertake work involving liaison or contact with the offices or officers of the Government. For the purpose of this clause the expression 'employment under a co-operative society' includes the holding of any office, whether elective or otherwise, such as that of President, Chairman, Manager. Secretary, Treasurer and the like, by whatever name called in such society ;
(b) the expression 'date of retirement' in relation to a, Government employee re-employed after retirement, without any break, either in the same or in another class I post or in any other equivalent post under a State Government, means the date on which such Government employee finally ceases to be so re-employed in Government service."
3. In the said rules, after Form Pen. 18, the following Form shall be added namely :-
"Form Pension 19"
[Referred to in rule 7.26 (1)]
Form of application for permission to accept commercial employment
within a period of two years after retirement
1. Name of the official
(in block letters)
2. Date of retirement
3. Particulars of the Department/ Offices in which the official served during the last 5 years preceding retirement (with duration) -
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Name of Department / Office |
Post held |
Duration |
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From |
To |
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4. Post held at the time of retirement and period for which held
5. Pay scale of the post and pay drawn by the official at the time of retirement.
6. Pensionary benefits
Pension expected/ sanctioned (commutation, if any, Gratuity, if any, should be mentioned)
7. Details regarding commercial employment proposed to be taken up.
(a) Name of the firm/ company/ co-operative society, etc.
(b) Products being manufactured by the firm/ type of business carried out by the firm, etc.
(c) Whether the official had during his official career, any dealings with the firm, etc.
(d) Duration and nature of the official dealings with the firm
(e) Name of the Job/ post offered.
(f) Whether post was advertised, if not, how was offer made (attach newspaper cutting of the advertisement, and a copy of the offer of appointment, if any)
(g) Description of the duties of the job/ post.
(h) Remuneration offered for post/ job
(i) If proposing to set up a practice, indicate --
(a) Professional qualification in the field of practice
(b) Nature of proposed practice.
8. Any information which the applicant desired to furnish in support of his request
9. Declaration :
I hereby declare that --
(i) the employment which I propose to take up will not bring me into conflict with Government ;
(ii) my commercial duties will not be such that my previous official positions or knowledge or experience under Government could be used to give my proposed employer and unfair advantage ;
(iii) my commercial duties will not involve liaison or contact with the Government departments.
Signature of the Applicant
Dated: Address _____________