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Rule 36 - Pension on Absorption | KartavyaDesk

CCS Pension

Original Rule Text

36. 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 (9), he shall be eligible, on such absorption, to receive pension or service gratuity, as the case may be, and retirement gratuity on the basis of the qualifying service and emoluments on the date of absorption in accordance with rule 44 and rule 45:

What This Means

Rule 36 of the CCS (Pension) Rules, 2021 deals with the pension benefits of a government employee who gets absorbed into a Corporation, Company, or Body that's owned or controlled by the Central or State Government. Think of it as what happens to your pension when you leave direct government service to work for a government-related organization. This rule essentially says that when you're absorbed, you're considered to have retired from government service on that date.

This means you become eligible for pension or service gratuity (if you haven't completed the minimum service for a pension) and retirement gratuity based on your qualifying service and the salary you were drawing at the time of your absorption. The calculation of these benefits will follow Rule 44 and Rule 45 of the CCS (Pension) Rules, 2021. It's important to note that certain conditions, specified in sub-rule (9) of Rule 36, might apply which could affect your eligibility or the amount of pension you receive.

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

Key Points

  • •Applies to government servants absorbed into government-owned/controlled corporations, companies, or bodies.
  • •Absorption is treated as retirement from government service for pension purposes.
  • •Pension/gratuity is calculated based on qualifying service and emoluments at the time of absorption.
  • •Calculations are done according to Rule 44 and Rule 45 of CCS (Pension) Rules, 2021.
  • •Sub-rule (9) of Rule 36 may impose certain conditions affecting pension eligibility.

Practical Example

Mr. Sharma, a Section Officer in the Ministry of Finance, has worked for the government for 20 years. He gets an offer to join the National Investment and Infrastructure Fund (NIIF), a body controlled by the Central Government, and is permitted to be absorbed there. According to Rule 36, Mr. Sharma is deemed to have retired from government service on the date he joins NIIF. His pension and retirement gratuity will be calculated based on his 20 years of qualifying service and his last drawn salary as a Section Officer.

Let's say his last drawn basic pay was ₹70,000. His pension will be calculated as per Rule 44, based on this amount and his 20 years of service. He will also receive retirement gratuity as per Rule 45. The exact amount will depend on the specific calculations outlined in those rules, but Rule 36 ensures he receives these benefits despite moving to a different organization.

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

Frequently Asked Questions

What does 'absorption' mean in the context of this rule?▼
'Absorption' means being permanently taken into the service of a Corporation, Company, or Body from government service, with the government's permission.
If I am absorbed, can I choose to continue contributing to the NPS instead of taking a pension?▼
Rule 36 specifically deals with pension and gratuity. The option to continue with NPS after absorption would depend on the rules and regulations of the new organization you are joining and the prevailing NPS guidelines. You should consult with the relevant authorities in both your previous and new organizations.
What happens if the Corporation I'm absorbed into later becomes privatized?▼
The implications of privatization on your pension would depend on the terms and conditions of your absorption and the specific agreements made during the privatization process. Generally, the government would ensure that your pension benefits are protected, but the exact mechanism may vary.
Does this rule apply if I resign from government service to join a private company?▼
No, Rule 36 specifically applies to absorption into a Corporation, Company, or Body 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. Resigning to join a private company would be governed by different rules regarding resignation and potential forfeiture of service benefits.
What is the significance of sub-rule (9) mentioned in Rule 36?▼
Sub-rule (9) of Rule 36 may specify certain conditions or restrictions that apply to the grant of pension under this rule. It's crucial to refer to the specific provisions of sub-rule (9) to understand any limitations or requirements that might affect your eligibility or the amount of pension you receive.

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 36 of the CCS (Pension) Rules, 2021, a government servant absorbed into a Corporation substantially owned by the Central Government is deemed to have:

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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