CHAPTER XXIRe-employment of Pensioners
509-A. No officer, Civil or Military, may retire with the view of being re-employed, and drawing pension in addition to pay, whether in the general service or in the service of any local fund.
510. 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 amount of any gratuity, bonus or pension granted to him in respect of the previous employment, the authority re-appointing him shall specifically state in the order of re-appointment whether any deduction is to be made from pension or salary as require by the rules of this Chapter and shall communicate a copy of the order to the Audit Officer.
NOTEThe principle of this Article 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 Article 524-B and 524-C).
510-A. The attention of every officer 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 Audit Officer; but the failure of such authority to do this will not be admitted as a ground for condoning any breach of the regulations contained in this Chapter.
510-B. Notwithstanding anything contained in the rules in this Chapter, a wound or other extraordinary pension sanctioned under the Uttar Pradesh Civil Services (Extraordinary Pension) Rules and a wound or injury or disability pension or a disability addition to pension award under the military rules shall continue to be draw by a retired Government servant, civil or military, during re-employment or continued employment, and shall be subject only to the conditions of its award. The amount of such pension or addition to pension shall not be taken into account when fixing the pay during re-employment or continued employment.
NOTEWhere 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 50 paise and over shall be taken as a whole rupee, amounts of less than 50 paise being ignored. The disability portion of the pension will be the balance.
Section IICIVIL PENSIONERS
Re-employment after compensation (Gratuity)
511. An Officer who has obtained a Compensation gratuity, 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.
512. The intention to refund must be stated immediately on re-employment, but the refund may be made by monthly instalments of not less than one-third of the officers salary, 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 does not revive till the whole amount is refunded.
NOTEThe equity of this rule is based upon the consideration that so long as the refund of the gratuity is postponed, the officer avoids the risks and the State loses to possibility of the gratuity lapsing absolutely to the public treasury by the death or dismissal of the officer. A subsequent refund of a gratuity, even with compound interest does not compensate the State for the loss of this possibility meanwhile.
513. (See Article 510-A.)
After Compensation Pension
514. (a) An officer 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 General Revenues, 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 at the time of his discharge, that is, an officer 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 discharge. Once the amount of the pension has been fixed in conformity with the above condition the officer shall be entitled to receive the benefits 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 temporary appointment for bona fide temporary duty lasting for not more than a year, the Local Government or, in cases where the pension does not exceed Rs. 10 a month, the officer who 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 of pay and pension exceeds his substantive pay at the time of his discharge.
NOTE 1.This rule applies to the re-employment on all establishments paid from the General Revenues, whether paid by fixed salary or by fluctuating monthly allowances ; but it does not apply to pensioners employed on work as coolies and paid daily hire.
NOTE 2.In the case of re-employment under a Local Fund, no deduction is made from a compensation pension.
NOTE 3.The State Government may permit an officer who has obtained a compensation pension and is afterwards re-employed in a permanent or temporary appointment duly sanctioned by competent authority, to draw his full pension in addition to the pay and allowances of the appointment irrespective of the period of such re-employment.
NOTE 4.The State Government may delegate its power under this Article to Heads of Departments in respect of pensioners whose re-employment they are authorised to order.
NOTE 5.The restrictions in the Article do not apply to ex-policemen whose pension does not exceed Rs. 10 a month.
(b) If his re-employment is in qualifying service, he may either retain his pensin (subject to the proviso above stated), 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 An officer counts his previous service under clause (b) if on re-employment his pension ermaius wholly in abeyance under the provisos to clause (a).
515. In the case of a section-writer whose service has been allowed to qualify for pension under special orders of the Government of India, or of a press servant (See Article 380) re-employed, the substantive pay at the time of discharge is taken at the average earning of the last six months of employment.
516. If an officer does not, within three months from the date of his re-employment, exercise the option conceded by Article 514, of ceasing to draw pension and counting his former service, he may not thereafter do so without the permission of the State Government.
After Invalid Pension
519. There is no bar to the re-employment of an officer who has regained health after obtaining invalid pension or if an officer 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.
After Superannuation or Retiring Pension
520. An officer who is in receipt of a superannuation or retiring pension shall not be re-employed or continue to be employed in service paid from general revenues or from a local fund, except on public grounds.
Sanction to re-employment or extension of the term of employment may be given as follows:
(i) By the Government of India in the Administrative Department concerned, when the pensioner served before retirement in a Gazetted appointment directly under the Government of India or belonged to an Imperial Service or Imperial Branch of any Service, or was an officer who, before retirement, held a post usually filled by officers of an Imperial Service or Branch;
(ii) In other cases, by the State Government under whose administration the pensioner is re-employed;
(iii) By any authority subordinate to a State Government to whom the State Government may delegate its powers under this article in respect of pensioners re-employed in establishments under the control of such authority.
NOTEA State Government may declare that the restrictions contained in this Article shall not apply to any particular local fund or to local funds of any particular class in its territories, or that they shall apply subject to such modifications as it may direct.
Decisions of the State Government
1. Administrative departments need not refer the following categories of cases to the Finance Department :
(a) Where a retired Government servant is proposed to be re-employed on the same post from which he retired and it is proposed to allow him a pay which, together with his pension as originally sanctioned, i.e., before commutation, if any, does not exceed the pay drawn by him immediately prior to retirement ; and
(b) where a Government servant, who was serving on a post outside the regular line prior to retirement, is proposed to be re-employed on a post in the regular line and, on re-employment, is to be allowed a pay which, together with his pension, as originally sanctioned, does not exceed the pay which he would have drawn immediately prior to retirement had he retired from the post which he would have occupied in the regular line.
Cases of re-employment not covered by the above paragraph should continue to be referred to the Finance Department.
It should be borne in mind that in respect of pensioners who were members of the U.P. Contributory Provident (Pension) Fund, the amount of pension to be taken into account for purposes of fixing the pay on re-employment should be the amount of pension they would have been entitled to draw had they not joined the U.P. Contributory Provident (Pension) Fund.
NOTEThe same principle will apply to the Death-cum-retirement Gratuity earned under the Liberalized Pension Rules/Retirement Benefits Rules. The pension to be taken into account in such cases should include the pension equivalent of the D.C.R. gratuity. (Also see Article 521).
[Finance Department O.M. no. G-II121/X1-1953, dated January 19, 1953.]
2. Although re-employment of a pensioner can be sanctioned only by Government, appointing authorities often re-employed pensioners without obtaining prior approval and move Government after a long time for ex post facto approval of such re-employment. In some cases, a re-employed pensioner is even allowed pay which together with his pension exceeds the pay drawn by him at the time of retirement. This places Government in an embarrassing position leading even to difficulties of recovery of excess payments. It should, therefore, be ensured that no pensioner should be re-employed without obtaining prior approval of Government. O.M. no. G-21588/XI-1953, dated March 22, 1960.
Decisions of the Government of India
1. In view of the powers possessed by an Administrative Department of the Government of India under clause (1) of Article 520, C.S.R. the extension of the term of employment, of a pensioner who served before retirement in a non-gazetted capacity directly under the Government of India may be accepted in audit, although a Department of the Government of India has not been invested with the powers of a Local Government under clause (ii) of Article 520, C. S. R.
[Government of India, Finance Department U.O. No. 5675-C.S.R., dated the 18th November, 1926.]
2. When in special and exceptional circumstances, it is considered desirable to re-employ an officer who has been permitted to retire on proportionate pension in a post under the Government, the pay of the post should be reduced by the full amount of his pension. In cases where rule 9 of the Rules for Premature Retirement on Proportionate Pension is applicable, an alternative course might be to move the Secretary of State to suspend the payment of pension while the officer continues to be employed under the Crown.
[Government of India, Finance Department Memo no. F-12-IR-II/1929 dated the 5th August, 1929.]
3. The restrictions on the provincial Governments under Article 520 of C.S.R. requiring them to obtain sanction of the Government of India, for the re-employment of retired Central Government officers ceases to be operative. The modification of the Rule has, however, been deferred till the revision of the C. S. R.
[Government of India, Ministry of Finance, File no. 7(59)-EV/1958.]
4. Provincial Governments are competent to sanction the re-employment of retired officers, previously under the rule making control of the Secretary of State in posts created by them under their own powers.
[Government of India, Home Department no. 125/41-Ests., dated the 22nd November, 1941.]
Fundamental Rule 56 is generally applicable to re-employed personnel, and the rules in Chapter XXI of the Civil Service Regulations are subject to the conditions laid down in Fundamental Rule 56. Article 520, Civil Service Regulations, however, from the nature of its concession and conditions, puts the re-employment of a person in receipt of a superannuation or retiring pension in a special class outside Fundamental Rule 56, and subject to the conditions stated in the article itself which must be observed with every renewal of sanction.
521. The authority competent to fix the pay and allowances of the appointment in which the pensioner is employed shall determine whether the pension shall be held wholly or partly in abeyance. If the pension is drawn wholly or in part such authority shall take* [such pension and the pension equivalent of the Government contribution to the Contributory Provident Pension Fund/death-cum-retirement gratuity, if any,] into account in fixing the pay to be allowed to him ; provided that (i) where a State Government has delegated its power under clause (iii) of Article 520 to the Head of a Department, the latter 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 a year or the pension does not exceed Rs. 10 a month, and (ii) where the State Government has delegated its power to any other authority subordinate to itself, such authority may not allow the pensioner to draw in full a pension of more than Rs. 10 a month in addition to the full pay of the post.
NOTE1. Where the employment is in service paid from a local fund, the 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 State Government by special or general orders in this behalf, or
(ii) in any other case, the State Government or such other authority as the State Government may prescribe.
NOTE2. The restrictions in this Article do not apply to ex-policemen whose pension does not exceed Rs. 10 a month.
NOTE3. The pension equivalent of Government contribution to the Contributory Provident Pension Fund/death-cum-retirement gratuity will be determined in accordance with the U.P. Civil Pensions (Commutation) Rules.
522. The Foregoing rules do not apply to pensioners re-employed under the Court of Wards.
523. A pensioner of any class may be employed as a Extra Departmental Agent in the Post Office, or as a Sub-Registrar under the law for the registration of documents remunerated by fees only.
524-A. Not Printed.
In case of Commutation of Pension
524-B. 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 this Section 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 commutes 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 differene between the portion of pension commuted and the portion of pension drawn until the commutation.
524-C. 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 into consideration in fixing the total receipts during re-employment, or continued employment and not merely the uncommuted pension.
Section IIIMILITARY PENSIONERS
525. Except where it is otherwise expressly provided, the Rules in Section II of this Chapter do not apply to military officer, departmental officer, warrant or on-commissioned officer or soldier who is taken into or allowed to continue in civil employ after he has been granted a pension under military rules. The claims of such an officer to salary in the Civil Department are governed by Article 526. His pension for service in the Civil Department will not be affected by his military pension.
526. (a) When a person formerly in military service obtains employment in the civil department after having been granted a military pension he shall continue to draw his military pension, but the authority competent to fix the pay and allowances of the post in which he is re-employed shall have in fixing his pay and allowances in the post in which he is re-employed, the power to take into account the amount of pension, including such portion of it as may have been commuted.
(b) A military officer, departmental officer, warrant or non-commissioned officer or soldier who is granted a pension under military rules while he is in civil employ, shall draw such pension while he is in civil employ, but the authority competent to fix the pay and allowances of the post in civil employ, may with effect from the date from which the pension is granted, reduce such pay and allowances with reference to such officer or soldier by any amount not exceeding the amount of such pension.
* NOTEIn the case of persons retiring before attaining the age of 55, the military pension as shown below may be ignored in fixing the pay on re-employment :
(i) In case the military pension does not exceed Rs. 50 per mensem, the actual pension ;
(ii) In other cases, the first Rs. 50 of the military pension.
Pension for this purpose includes pension equivalent of gratuity and other forms of retirement benefits.
Decisions of the State Government
The notification of the aforesaid note was published in the U.P. Gazette, dated August 6, 1966. This amendment will, therefore, take force from the aforesaid date. The Government have now decided that the pay of those persons, who were in re-employment on the aforesaid date shall, on exercise of option for this amendment, be fixed accordingly with effect from the aforesaid date. On exercising such option their pay will be fixed as if they were re-employed on the aforesaid date for the first time. The option shall be exercised in writing within a period of six months from the date of issue of these orders and once exercised shall be final.
[Finance Department no. G-II2685/X3-1956, dated November 15, 1967.]
2. The State Government have under consideration the questions (i) whether the pensions sanctioned to personnel of the former Indian State Forces should be treated as military pension for the purposes of Article 526 of the Civil Service Regulations and (ii) whether such pensions should be taken into account in fixing their pay on re-employment in a civil capacity under them. The Governor has been pleased to decide that (i) the pension sactioned to the personnel of Ex-State Forces should be treated as military pension for the purposes of Article 526 of the Civil Service Regulations and that (ii) the pensions of such personnel should be taken into account for the purpose of fixation of pay on their re-employment under the State Government to the extent indicated in Article 526 of the Civil Service Regulations. The cases of fixation of pay of re-employed pensioners under this Article will of course, be referred to the State Government on the analogy of cases falling under Article 521.
[G.E. no. G-II2672/X923-1953, dated April 17, 1953.]
The above orders will apply to the past cases only to the limited extent that any reduction in re-employed pay should be effective only from the date of issue of the said orders namely, December 9, 1952.
[G.O. no. G-II1433/X923-1952, dated June 26, 1953.]
3. Under the existing Rules military pensioners who are re-employed in Civil Departments and in the Local Bodies, namely Municipalities and District Boards, are not eligible to receive temporary increase in their military pensions if during such re-employment they are in receipt of either dearness allowance or free rations and clothing, or any other concession in consideration of increased cost of living. Although military pensioners are required to render a certificate in regard to their re-employment/non-employment before each payment of their pensions, it has been brought to the notice of the State Government that instances occur where military pensioners do not report the fact of their re-employment deliberately or otherwise, resulting in over-payment of temporary increase in pension in certain cases.
The State Government consider, therefore, that where a military pensioner is re-employed under a State Government, etc., the employer should, as soon as it comes to his notice that the employee is a military pensioners, inform the Controller of Defence Accounts (Pesions), Allahabad, in respect of Army and Air Force Pensioners and the Controller of Defence Accounts (Navy), Bombay in respect of Naval Pensioners, of the particulars of the pensioner as given below :
Particulars of re-employed military pensioners :
(a) Name of pensioner.
(b) Place and chanel of payment of pension.
(c) Treasury Serial/Head of office number allotted by the pension disbursing officer (this will generally be available in the pension certificate).
(d) The date of re-employment.
(e) Post in which re-employed.
(f) Whether in receipt of either dearness allowance, or free rations and clothing or any other concession in consideration of the increased cost of living during the period of his re-employment.
[G.O. no. G-22489/X181954, dated January 8, 1955].
528-B. The pension of the heir of an Indian Military Officer or Non-Commissiond Officer or soldier, or the heir of the medical subordinate, will during employment in any Civil Department, merge in his salary.
Section IVPENSION FOR NEW SERVICE
529. Except as provided in Articles 525 to 528-B, an officer 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.
530. If an officer who has obtained a Compensation or Invalid pension is re-employed in pensionable service and retains the pension (See Article 514), the pension or gratuity admissible for his subsequent service is subject to the follwing limitation, namely, that the gratuity or the capital value of pension shall not be greater than the difference between the value of pension that would be admissible at the time of the officers final retirement, if the two periods of service were combined, and the value of the pension already granted for the pervious service.
531. (a) If a gratuity received for the earlier service for the earlier service has not been refunded, gratuity or pension (as the case may be) may be allowed for the subsequent service, on 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.
531-A. For the purposes of Articles 530 and 531, the capital or present value of a pension shall be calculated in accordance with the table prescribed by the State Government under the Uttar Pradesh Civil Pensions (Commutation) Rules.
Section VCOMMERCIAL EMPLOYMENT AFTER RETIREMENT
531-B. (A) If a pensioner to whom this article applies wishes to accept any commercial employment before the expiry of two years from the date of his retirement, he should obtain the previous sanction of the governor to such acceptance. No pension shall be payable to pensioner who accepts a commercial employment without such sanction, in respect of any period for which he is so employed or such longer period as the Governor may direct:
(b) This Article shall apply to every pensioner who immediately before retirement was a member of a Provincial Service, but shall not apply in relation to any commercial employment accepted by such pensioner before January 1, 1948.
* (c) In this Article, commercial employment means employment in any capacity, including that of an agent, under a company, co-operative society, firm or individual engaged in commercial business and includes a directorship of such company and a partnership of such firm but does not include employment under a body corporate, owned or controlled by Government.
Explanation(1) For the purpose of clause (a) of this article the expression date of retirement in resation to a government servant re-employed after retirement, without any break, either in the same post or in any other post in a Provincial Service or in any other equivalent post under the Central the Central government or other state government, shall mean the date on which such government servant ceases to be so re-employed in government service.
Explanation(2) For the purpose of this article employment under a co-operative society shall include the holding of any office, whether elective or otherwise, such as that of President, Chairman, Manager, Secretary, Treasurer and the lide, by whatever name called, in such a society.
Decisions of the State Government
1. Under Article 531-B of the Civil Service Regulations, if a pensioner, who was a member of a State (i.e. Provincial) Service immediately before retirement wishes to accept any commercial employment before the expiry of two years from the date of retirement, he is required to obtain the previous sanction of the Governor to such acceptance. Accordingly engineers retiring form the State (i.e. Provincial) Services are also required to obtain prior sanction of the Governor if they seek employment as contractors or under such contractors within two years of retirement.
2. It has been decided that the above principle should be adopted uniformly in respect of all engineers of gazetted rank and other gazetted officers employed in engineering department of the State Government, who, after retirement, seek imployment as contractors for or in connection with the execution of public works (including Railway and Defence Works) or as employees of such contractors within two years of their retirement. Such permission within two years of an officers retirement, will be given be given very rarely and only in special circumstances.
3. No person who is covered by these orders and has not obtained the necessary permission should be given any such contract and a condition as given in the enclosure should be incorporated in the form of contract.
4. As a further safeguard it has also been decided that at the time of sanctioning pension officers of the aforesaid categories should be required to sign an undertaking that they would bot seek such employment within two years of retirement without prior permission of Government. In the case of non-pensionable officers, the officers should be required to sign a similar undertaking at the time of retirement.
"No person who has retired from government service as an engineer or gazetted officer employed on engineering or administrative duties in an engineering depatrment or who has employed any such retired engineer or gazetted officer is entitled to tender for the notified work up to two years from the date of such retirement unless special permission of the Government has been obtained and is furnished by the Contractor alongwith his tender. If at any stage any contractor is found to have violated the aforesaid provison, his tender and the contract, if entered into with him, shall at the option of*.................................be liable to immediate cancellation in which case his entire earnest money or the security deposit (as the case may be) shall stand forfeited to Government and the contractor shall have no right to any compensation, whatsoever, on account of the cancellation of his tender or contact."
(G.O. no. G-2-1893/X916-1949, dated June 7, 1960.)
Section VIEMPLOYMENT UNDER A GOVERNMENT OUTSIDE INDIA AFTER RETIREMENT
531-C. (a) If a pensioner to whom this Article applies wishes to accept any employment under a Government outside India, he should obtain the previous sanction of the Governor to such acceptance. No pension shall be payable to a pensioner who accepts such an employment without proper permission, in respect of any period for which he is so employed or such longer period as the Governor may direct.
Provided that Government servant permitted by the Governor to take up a particular form of employment under a Government outside India during his leave preparatory to retirement shall not be required to obtain subsequent permission for his continuance in such employment after retirement.
(b) This article shall apply to every pensioner who immediately before retirement was a member of a Provincial Service, but shall not apply in relation to any employment referred to in clause (a) above accepted by such pensioners before January 1, 1950.
(c) For, the purposes of this article "employment under a Government out side India" shall include employment under a local authority or corporation or any other institution or organization which functions under the supervision or control of a Government outside India.