Know Your Pension on Absorption : Rule 37 of CCS (Pension) Rules 1972 Explained

Rule 37 of CCS (Pension) Rules 1972 regarding Pension on absorption in or under a corporation, company or body explained here

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

In the intricate world of government service, when a stalwart public servant is granted the privilege of absorption into a service or post within a Corporation or Company that is either wholly or substantially owned or controlled by the Central Government or a State Government, or within a Body under the careful purview of Central Government or State Government financing and control, a pivotal transformation transpires.

The individual, from the date of such absorption, is to be regarded as having gracefully retired from their previous service. Subject to sub-rule (3), they become eligible to partake in the bounteous offerings of retirement benefits, if any, bestowed upon them. These benefits shall commence flowing from the date as ordained, meticulously in accordance with the edicts and mandates issued by the Central Government, which are specifically tailored to cater to their unique circumstances.

Rule 37 of CCS (Pension) Rules 1972

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.

(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.

Source : Pensioner Portal

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