In Lok Sabha on 24th July, 2019 Minister of DoPT Dr.Jitendra Singh has given a written reply to a question about the policy of removal of non-performing civil servants.

“The provisions of Fundamental Rules (FR) 56(j), Rule 48 of Central Civil Services (CCS) (Pension) Rules, 1972 and Rule 16(3) (Amended) of All India Services (Death-cum-Retirement Benefits) [AIS (DCRB)] Rules, 1958 lay down the policy of periodic review and premature retirement of Government servants, which is a continuous process.

As per these, the Government has the absolute right to retire Government officials prematurely on the ground of lack of integrity or ineffectiveness, in public interest.

For the period July 2014-May 2019, a total of 36,756 Group-A and 82,654 Group-B officers have been reviewed under FR 56(j)/similar provisions, out of which FR 56(j)/ similar provisions have been invoked /recommended against 125 Group-A and 187 Group B officers”.Similar Posts:

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7th CPC Voluntary Retirement Scheme

The DoPT Order No.25013/7/77-Estt.(A) Dt. 26.8.1977 said as follows…

“As per Rule 59(1) a civil servant may allowed to retire voluntarily if he has completed 15 years of service and given proportionate pension and gratuity”.

The above recommendations of the Administrative Reforms Commission was considered by Government and it has been decided that Government Servants may be allowed to retire voluntarily after 20 Years of qualifying service on proportionate pension and gratuity with a weightage of upto 5 years towards qualifying service where applicable, subject to certain conditions.

Is the date of voluntary retirement treated as duty?
Yes, the date of voluntary retirement is treated as duty (Rule 5).

When can a Government servant apply for voluntary retirement?
Under Rule 48, a Government servant can apply for voluntary retirement after completion of 30 years of qualifying service. Under Rule 48-A, he can apply for voluntary retirement after completion of qualifying service of 20 years. Under FR 56 (k) he can apply for voluntary retirement an attaining the age of 50 years (for Gr. A & B) and 55 years (in other cases).

Recommendation on Voluntary retirement in 6th Pay Commission…

Presently, all employees on completion of 30 years qualifying service can take voluntary retirement by giving 3 months’ notice. Group A & B Officers who had entered service before the age of 35 years have the right to retire after attaining the age of 50 years by giving a similar notice. Group A & B Officers who had entered the service after 35 years of age and all Group C & D employees can also take voluntary retirement at their option. Retirement becomes effective on the expiry of notice period. No formal approval is necessary unless the official is under suspension. Employee can also retire voluntarily by giving 3 months’ notice on completion of 20 years qualifying service. However, in this case, acceptance by the Appointing Authority is necessary.

Pension on voluntary retirement is payable only if 20 years of qualifying service or more has been put in. In case of superannuation, pension is payable on completion of 10 years qualifying service or more. However full pension, whether on superannuation or voluntary retirement, is presently payable only on completion of qualifying service of 33 years. Weightage of upto 5 years for purposes of reckoning qualifying service for pension/gratuity is allowed in case of voluntary retirement provided the total qualifying service including the weightage does not exceed 33 years and the period does not go beyond the date of normal superannuation.

Pension on voluntary retirement is payable only if 20 years of qualifying service or more has been put in. In case of superannuation, pension is payable on completion of 10 years qualifying service or more. However full pension, whether on superannuation or voluntary retirement, is presently payable only on completion of qualifying service of 33 years. Weightage of upto 5 years for purposes of reckoning qualifying service for pension/gratuity is allowed in case of voluntary retirement provided the total qualifying service including the weightage does not exceed 33 years and the period does not go beyond the date of normal superannuation.
Here some important orders issued by the DoPT…

Collection of some key features of Voluntary Retirement from 7th Central Pay Commission Report…

Report of Seventh CPC – Page No.406

Premature/Voluntary Retirees

Pension equal to 50% of last RE is being paid.

Disability Pension comprising (i) Service Element (SE) equal
to 50% of last RE and Disability Element (DE) equal to 30%
of last RE for 100% disability is being paid. For lesser
percentage of disability, the amount of DE is reduced prorata. There is noDE for disability <20%.

Report of Seventh CPC – Page No.411

Enhancing the Cover of Disability

10.2.56 The Services have sought that disability element should be made admissible to personnel on retirement as well as invalidment in the event of his/her acquiring any amount of disability (presently Nil in case of Disability less than 20 percent) that is attributable to/aggravated by military service or otherwise.

Expected DA from July 2019: DA 4% Confirm…5% Possible! – Click for more details

10.2.57 The issue of how disability element should be determined for personnel retiring with disability, as distinct from those being invalided out, has been the subject matter of judicial pronouncements in the recent past. In Ram Avatar vs Union of India, the Supreme Court has held that personnel retiring on attaining the age of superannuation or on completion of tenure of engagement, if found to be suffering from some disability which is attributable to/ aggravated by military service, would be entitled to the benefit of ‘rounding’ of disability pension for disability greater than 20 percent.

The Commission has also noted that the government has decided to implement the benefit of broadbanding of disability (‘rounding’ of disability pension) w.e.f. 01.01.2015 for all eligible cases except premature cases/voluntary retirement cases. The Commission, keeping in view the above, recommends broad banding of disability for all personnel retiring with disability, including premature cases/ voluntary retirement cases for disability greater than 20 percent.

This will ensure uniformity in treatment of disability cases as far as determination of disability element is concerned and bring the regime at par with those invalided out for disability greater than 20 percent.

Report of Seventh CPC – Page No.118

6.2.56 Compensation Package: The Commission notes the demand made is for doubling of the existing compensation package of one month’s reckonable emoluments for each completed year of service by a SSC Officer. In the case of officers in the public sector opting for voluntary retirement/voluntary separation, they are paid one and a half months emoluments for each completed year of service.

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State Bank of India (SBI) has informed that there is no plan to launch Voluntary Retirement Scheme (VRS) in their bank at present.

SBI has informed that VRS was offered by the erstwhile Associate Banks of SBI to their employees and officers before merger and three thousand five hundred sixty nine (3569) employees/officers of erstwhile Associate Banks had opted for the same.

The abvoe information given by the Minister of State in the Ministry of Finance Shri Santosh Kumar Gangwar in a written reply to a question in Rajya Sabha on 25.07.2017.

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GOVERNMENT OF INDIA
MINISTRY OF COMMUNICATIONS
LOK SABHA

UNSTARRED QUESTION NO: 20
ANSWERED ON: 16.11.2016

VRS to MTNL Employees

K. ASHOK KUMAR

Will the Minister of COMMUNICATIONS be pleased to state:-

(a) whether the administrative functioning cost particularly on salary and other remuneration of employees of MTNL is about 78 per cent of its revenues which is far above the industry average;

(b) if so, the details thereof and the reasons therefor;

(c) whether the Telecom Commission has proposed a voluntary retirement scheme (VRS) for MTNL employees who are 50 years of age;

(d) if so, the details thereof and the revenue likely to be saved by MTNL as a result of implementation of the VRS Scheme; and

(e) the present status of the proposal?

ANSWER

THE MINISTER OF STATE (IC) OF THE MINISTRY OF COMMUNICATIONS & MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI MANOJ SINHA)

(a)&(b) The employee expenditure of MTNL for 2015-16 is 67% of its total income. This is higher than that of private Telecom Service Providers. The major reason is due to Department of Telecommunication manpower which moved to MTNL on its formation.

(c)&(d) The Telecom Commission approved in the meeting held on 30.4.2016 a Voluntary Retirement Scheme (VRS) for around 5312 employees (20% of existing workforce) of MTNL who are more than 50 years of age primarily whose services may be dispensed without detriment to the company. Care will be exercised to ensure that highly skilled and qualified workers and staff are not given the option and management will reserve the right not to accept the VR of highly skilled employees to retain the talent. The proposal would save MTNL around Rs. 2,701 crore (NPV Rs. 2,080 crore) over a period of 10 years on account of salary and pension contribution.

(e) On approval of Telecom Commission, a Draft Cabinet Note has been prepared and is under consideration.

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Department of Public Enterprises (DPE), Ministry of Heavy Industries & Public Enterprise has recently issued guidelines to expedite the process for closure of CPSEs so that all administrative Ministries would follow uniform procedure for closure of the CPSEs. Earlier, DPE had issued guidelines for “streamlining the mechanism for revival and restructuring of sick/ incipient sick and weak Central Public Sector Enterprises: General principles and mechanism of restricting”. As per these guidelines, the CPSEs were to be categorized into strategic and non-strategic and revival/restructuring strategy was prescribed. However, there are certain CPSEs in non-strategic sector which have no scope for revival and are to be closed in a time bound manner. Since there are employees working in these CPSEs, Government decided that closure should not cause hardship to them and has now laid down a uniform policy to give workers VRS at 2007 notional pay scale irrespective of the pay scale in which they are working.

The guidelines also prescribe the modalities for disposal of movable assets and immovable assets. The guidelines prescribe that leasehold land would be dealt as per the terms of the lease and freehold land would be offered in following order of priority:-

(i) Central Government Departments.

(ii) Central Government bodies/CPSEs.

(iii) State Government Departments.

(iv) State Government bodies/State PSEs/State authorities.

In case the above categories are not interested in taking the land for six months, then the land would be auctioned through MSTC to any entity so that it can be put to productive use.

Source: PIB News

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