Rule 36 - Pension on Absorption

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:

Provided that on retirement from such Corporation or Company or Body, the total amount of gratuity in respect of the service rendered under the Government and the service rendered in such Corporation or Company or Body shall not exceed the amount that would have been admissible had the Government servant continued in Government service and retired on the same pay which he drew on retirement from that Corporation or Company or Body.

(2) The date of absorption shall be,

(i) in case, a Government servant joins a corporation or company or body on immediate absorption basis, the date on which he actually joins that corporation or company or body. For this purpose, immediate absorption would mean acceptance of a technical resignation of a Government servant from Government service to enable him to take up an appointment in 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, for which he had applied with proper permission;

(ii) in case, a Government employee initially joins a corporation or company or body on foreign service terms, the date from which his unqualified resignation is accepted by the Government.

(3) The provisions of sub-rule (1) shall also apply to Central Government servants who are permitted to be absorbed in joint sector undertakings, wholly under the joint control of the Central Government and State Governments or Union territory administrations or under the joint control of two or more State Governments or Union territory administrations.

(4) In the case of a Government servant who joins a corporation or company or body on immediate absorption basis, the relieving order shall be issued in the Format 5.

(5) The relieving order shall indicate the period within which the Government servant shall join the Corporation or Company or the Body:

Provided that this period may be extended by the relieving authority for reasons beyond the control of the Government servant, which shall be recorded in writing.

(6) The period between the date of relief and the date of joining in the Corporation or Company or the Body may be regularised by grant of leave due and if no such leave is due, the period may be regularised by grant of extraordinary leave.

(7) The relieving authority, before processing the case for sanction of retirement benefits, will ascertain the date of joining by the Government servant in the Corporation or Company or the Body and accept the resignation of the Government servant from the date preceding the date of joining.

(8) No lien of the Government servant shall be retained in the relieving department and all his connections with the Government shall stand severed on his absorption in the Corporation or Company or the Body.

(9) Where a pension scheme similar to the pension scheme under these rules exists in a body controlled or financed by the Central Government or a State Government in which a Government servant is absorbed, he shall be entitled to exercise option either,-

(a) to receive retirement benefits for the service rendered under the Central Government in accordance with sub-rule (1); or

(b) to count the service rendered under the Central Government in that body for pension.

(10) Where a Government servant is absorbed in a body controlled or financed by the Central Government or a State Government and exercises an option under clause

(b) of sub-rule (9), the Government will discharge its pension liability by paying in lump sum as a one time payment.

(11) The pension liability shall comprise the capitalised value of pension or service gratuity and retirement gratuity for the service up to the date of absorption in that body.

(12) Lump sum amount of pension shall be determined with reference to the Table of values for commutation of pension appended to the Central Civil Services (Commutation of Pension) Rules, 1981.

Explanation.- Body means autonomous body or statutory body.

What This Means

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Key Points

• 1Applies to government servants absorbed into government-owned/controlled corporations, companies, or bodies.
• 2Absorption is treated as retirement from government service for pension purposes.
• 3Pension/gratuity is calculated based on qualifying service and emoluments at the time of absorption.
• 4Calculations are done according to Rule 44 and Rule 45 of CCS (Pension) Rules, 2021.
• 5Sub-rule (9) of Rule 36 may impose certain conditions affecting pension eligibility.

Practical Example

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

Cross References

Frequently Asked Questions

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