Government Servants Retirement Rules: Understanding Absorption in Corporations and Pension Benefits

As per the Government Servants Retirement Rules, when a government servant exercise option for Absorption in Corporations and Pension Benefits to be paid on the date of absorption. Because he shall be deemed to have retired from service from the date of such absorption and subject to sub-rule (3) he shall be eligible to receive retirement benefits if any

Pension on absorption in or under a corporation, company or body

37.Pension on absorption in or under a corporation, company or body

(1) A Government servant who has been permitted to be absorbed in a service or post in or under a Corporation or Company wholly or substantially owned or controlled by the Central Government or a State Government or in or under a Body controlled or financed by the Central Government or a State Government, shall be deemed to have retired from service from the date of such absorption and subject to sub-rule (3) he shall be eligible to receive retirement benefits if any, from such date as may be determined, in accordance with the orders of the Central Government applicable to him ].EXPLANATION. -Date of absorption shall be –

(i) In case a Government employee joins a corporation or company or body on immediate absorption basis, the date on which he actually joins that corporation or company or body;

(ii)in case a Government employee initially joins a corporation or company or body on foreign service terms by retaining a lien under the Government, the date from which his unqualified resignation is accepted by the Government.

Government Servants Retirement Rules: Absorption in Corporations and Pension Benefits

(2)The provisions of sub-rule (1) shall also apply to Central Government servants who are permitted to be absorbed in joint sector undertakings, wholly under the joint control of Central Government and State Governments/Union Territory Administrations or under the joint control of two or more State Governments/Union Territory Administrations.

(3) Where there is a pension scheme in a body controlled or financed by the Central Government in which a Government servant is absorbed, he shall be entitled to exercise option either to count the service rendered under the Central Government in that body for pension.

(4) retirement benefits for the service rendered under the Central Government in accordance with the orders issued by the Central Government.
.EXPLANATION. -Body means autonomous body or statutory body.

View the Guidelines for Pension on Absorption