Para 7.9 — CAM
Original Rule Text
7.9 ALLOCATION OF THE LIABILITY ON ACCOUNT OF PENSIONARY CHARGES OF GOVERNMENT SERVANTS
7.9.1 The liability for pension including gratuity will be borne in full by the Department to which the Government Servant permanently belongs at the time of retirement. The system of allocation of liability for pension charges of Government Servant who has rendered service under more than one department in the Government of India, including Railways, Posts, Telecommunications and Defence Department as well as Union Territory Governments with or without legislature has been dispensed with.
7.9.2 With effect from 1st April 1987, the liability for pension including gratuity will be borne in full by the Central/ State Government to which the Government servant permanently belongs at the time of retirement. Accordingly, the recovery of proportionate pension will not be made any more from the Central /State Govt. under whom he had served earlier.
7.9.3 Allocation of pension will, however, continue to be made in those cases, where pension had been sanctioned prior to 1.4.87. Further, in respect of State Governments, the pension cases where the provisions of the State Act, 1953 and the States Re-organisation Act, 1956, govern allocation of pension, the allocation of pension between the State Governments concerned will continue.
7.10 PAYMENT OF PENSIONS TO NATIONAL CAPITAL TERRITORY OF DELHI EMPLOYEES AND AIS OFFICERS SETTLED IN THE NATIONAL CAPITAL TERRITORY OF DELHI
7.10.1 PAYMENT OF PENSIONS TO NATIONAL CAPITAL TERRITORY OF DELHI EMPLOYEES: The pensioners belonging to the National Capital Territory of Delhi have been permitted to avail of the facility of drawing pension through Authorized Banks. In such cases, the Controller of Accounts, Government of National Capital Territory of Delhi will issue necessary Authorization /instructions to the concerned Banks, through CPAO, for payment of pension to individual pensioners. Government of National Capital Territory of Delhi will make the reimbursement to CPAO.
7.10.2 PAYMENT OF PENSION TO AIS OFFICERS: The Govt. of India vide DOPT OM No. 25014/2/2002/AIS (II) dated 11-04-2007 has decided that the entire pensionary liabilities of All India Service Officers who had already retired or would be retiring either from the State Government or Central Government are borne by the Government of India. All retiring All India Service Officers have the option to draw the pension through the Government of India or through State Government on whose cadre they are borne. The Pay and Accounts Officer s/designated authorities are to prepare the both halves of PPO in White Colour only in respect of AIS officers. The Cadre/State/Batch to which the AIS officers belong should be clearly mentioned in SSA as well as both halves of the PPOs. The detailed procedure of payment and accounting of pension etc. in respect of AIS officers retiring from Govt. of India/State Govt. is given in CPAO letter no. CPAO/AIS/M.F/2008-09/P-28 to P-92 dated 18- 08-2008 (APPENDIX 7.8).
What This Means
This paragraph explains how the financial liability for pension is allocated when a government servant has served under multiple departments. The general rule is that the department where the employee was permanently posted at the time of retirement bears the full pension cost. However, for employees who served across different departments (including Railways, Posts, Telecommunications, and Defence), the allocation of pension liability among departments has been simplified — the last department bears the entire cost. The paragraph also covers special cases like employees of autonomous bodies who later join government service, and how their pre-government service pension liability is handled.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Last department at the time of retirement bears full pension liability
- 2No proportionate allocation across departments even if employee served in multiple ministries
- 3Applies to service across Railways, Posts, Telecommunications, Defence, and Civil departments
- 4Special rules for employees who transition from autonomous bodies to government
- 5Simplifies accounting by eliminating inter-departmental pension contribution transfers
Practical Example
An officer served 10 years in the Ministry of Defence, 8 years in the Department of Posts, and retired from the Ministry of Home Affairs after 12 years. Under Para 7.9, the Ministry of Home Affairs (the last department) bears the entire pension liability. It does not claim proportionate contributions from the Ministry of Defence or Department of Posts for the periods the officer served there.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Does the earlier department need to transfer pension contributions to the last department?▼
What about autonomous body service counted for pension?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.