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Rule 18 - Contract Service Pension | KartavyaDesk

CCS Pension

Original Rule Text

18. Counting of service on contract.- A person, (i) who was initially engaged by the Government on a contract for a specified period and was subsequently appointed, on or before 31st December, 2003, to the same or another post in a temporary, officiating or substantive capacity in an establishment to which these rules apply, without interruption of duty; and (ii) who, in accordance with the option exercised under the Central Civil Services (Pension) Rules, 1972, refunded to the Government, the Government contribution in the Contributory Provident Fund with interest thereon including any other compensation for that service,

What This Means

Rule 18 of the CCS (Pension) Rules, 2021 deals with counting service rendered on a contract basis for pension benefits. Essentially, it allows government employees who were initially hired on a contract and later became permanent employees to count their contract period towards their pensionable service. This is a significant benefit as it can increase the overall pension amount and other retirement benefits. However, this rule applies only if the employee was made permanent on or before December 31, 2003, and if they refunded the government's contribution to their Contributory Provident Fund (CPF) along with interest.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

  • •Applies to individuals initially hired on contract and later appointed to a permanent position.
  • •The permanent appointment must have occurred on or before December 31, 2003.
  • •Requires the refund of the government's contribution to the Contributory Provident Fund (CPF) with interest.
  • •Allows the contract period to be counted towards pensionable service.
  • •This rule is based on the option exercised under the CCS (Pension) Rules, 1972.

Practical Example

Mr. Rajesh Kumar was initially employed as a contractual clerk in the Ministry of Finance for two years, starting in 1998. In 2000, he was appointed as a permanent clerk in the same ministry. As per the rules, he exercised his option under the CCS (Pension) Rules, 1972 and refunded the government's contribution of ₹50,000 to his CPF, along with the accrued interest of ₹5,000. Because his permanent appointment was before December 31, 2003, and he refunded the CPF contribution, his two years of contractual service will be counted towards his total pensionable service, increasing his eventual pension benefits.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

Does this rule apply to employees appointed after December 31, 2003?▼
No, Rule 18 specifically states that the permanent appointment must have occurred on or before December 31, 2003, to be eligible for counting contract service for pension.
What happens if I don't refund the government's contribution to the CPF?▼
If you do not refund the government's contribution to the CPF with interest, your contract service will not be counted towards your pensionable service.
I was appointed on contract in 2000 but made permanent in 2005. Can I still avail of this rule?▼
No, since your permanent appointment was after December 31, 2003, you are not eligible to have your contract service counted towards pension under Rule 18.
What documents are required to claim the benefit under Rule 18?▼
Typically, you would need your contract appointment letter, permanent appointment order, proof of refund of CPF contribution with interest, and any other documents as required by your department's pension processing authority.
Is this rule applicable to all types of government employees?▼
Rule 18 applies to individuals in establishments to which the CCS (Pension) Rules, 2021 apply. Check if your department falls under these rules.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Test Your Knowledge

Question 1 of 3

According to Rule 18 of the CCS (Pension) Rules, 2021, under what condition can a government employee's contract service be counted towards pensionable service?

Related Rules

Rule 62CCS (Pension) Rules, 2021 - Rule 62Rule 19CCS (Pension) Rules, 2021 - Rule 19Rule 65CCS (Pension) Rules, 2021 - Rule 65Rule 68CCS (Pension) Rules, 2021 - Rule 68Rule 72CCS (Pension) Rules, 2021 - Rule 72

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