Rule 38 - Deputation Options
Original Rule Text
38. Conditions for payment of pension on absorption consequent upon conversion of a Government Department into a Central Autonomous Body.- (1) On conversion of a department of the Central Government into an autonomous body, all Government servants of that Department shall be transferred en-masse to that autonomous body on deemed deputation on terms of foreign service without any deputation allowance till such time as they get absorbed in the said body and such transferred Government servants shall be absorbed in the autonomous body with effect from such date as may be notified by the Government.
(2) The autonomous body shall frame its rules and regulations within a time frame not exceeding five years. After such rules and regulations are framed by the autonomous body, all employees on deemed deputation shall be asked, within a period not exceeding three months from the date of notification of the rules and regulations by the autonomous body, to exercise their option to revert back to the Government or to seek permanent absorption in the autonomous body. Such employees shall be asked to exercise this option within a period of three months from the date of the communication asking the employees to exercise the option.
(3) The option referred to in sub-rule (2) shall be exercised by every transferred Government servant in such manner as may be specified by the Government and an employee, who does not exercise any option within the prescribed time limit, shall be deemed to have opted for permanent absorption in the autonomous body.
(4) The permanent absorption of the Government servants as employees of the autonomous body shall take effect from the date on which their options are accepted by the Government and on and from the date of such acceptance, such employees shall cease to be Government servants and they shall be deemed to have retired from Government service.
(5) In case of absorption of Government servants in the autonomous body, the posts which they were holding in the Government before such absorption shall stand abolished.
(6) The employees who opt to revert to Government service shall be repatriated to the Government within two years from the date of exercise of the option and shall be redeployed through the surplus cell of the Government.
between the date of option and the date of reversion to the Government shall continue to be on deputation on terms of foreign service without any deputation allowance.
(8) Where an employee retires or dies during the period of such deemed deputation, the pay which he would have drawn under the Central Government had he not been on deemed deputation shall be treated as emoluments for calculating the pensionary benefits to be paid by the Government.
(9) The pensionary benefits in respect of such employee shall be drawn and paid in the manner to be specified by the administrative Ministry of the autonomous body.
(10) Subject to the provisions of sub-rule (11) to sub-rule (15), the employees including temporary employees but excluding casual labourers, who opt for permanent absorption in the autonomous body shall, on and from the date of absorption, be governed by the rules and regulations or bye-laws of the autonomous body.
(11) A Government servant who has been absorbed as an employee of the autonomous body shall be entitled to exercise option either,-
(a) to receive pension or service gratuity and retirement gratuity, as the case may be, for the service rendered under the Central Government in accordance with rule 44 and rule 45 of these rules; or
(b) to count the service rendered under the Central Government in that body for pension and gratuity.
(12) In the case of a Government servant who has exercised option under clause
(a) of sub-rule (11), the pay which he would have drawn under the Central Government had he not been on deemed deputation shall be treated as emoluments for calculating the pensionary benefits to be paid by the Government.
(13) The pensionary benefits in respect of such employee shall be drawn and paid in the manner to be specified by the administrative Ministry of the autonomous body.
(14) A Government servant who has exercised option under clause
(b) of sub-rule (11) and his family shall be eligible for pensionary benefits (including commutation of pension, gratuity, family pension or extra-ordinary pension), on the basis of combined service rendered by the employee in the Government and in the autonomous body in accordance with the formula for calculation of such pensionary benefits as may be in force at the time of his retirement from the autonomous body or his death.
Explanation.- The amount of pension or family pension in respect of the absorbed employee on retirement from the autonomous body or on death shall be calculated in the same manner as calculated in the case of a Central Government servant retiring or dying, on the same day. The pensionary benefits in respect of such employee shall be drawn and paid in the manner specified in sub-rule (16) to sub-rule (27).
(15) In addition to pension or family pension, as the case may be, the absorbed employees who opt for pension on the basis of combined service shall also be eligible to dearness relief as per central dearness allowance pattern.
(16) The Central Government shall create a Pension Fund in the form of a trust and the pensionary benefits of absorbed employees shall be paid out of such Pension Fund.
(17) The Secretary of the administrative Ministry of the autonomous body shall be the Chairperson of the Board of Trustees which shall include representatives of the Department of Expenditure, Department of Pension and autonomous body and experts in the relevant field to be nominated by the Central Government.
(18) The procedure and the manner in which pensionary benefits to the employees, who have exercised option under clause
(b) of sub-rule (11), are to be sanctioned and disbursed from the Pension Fund shall be determined by the Government on the recommendation of the Board of Trustees.
(19) The Government shall discharge its pensionary liability in respect of employees, who have exercised option under clause
(b) of sub-rule (11), by paying in lump sum as a one time payment to the Pension Fund.
(20) The pensionary liability shall comprise the capitalised value of pension or service gratuity and retirement gratuity for the service rendered till the date of absorption of the Government servant in the autonomous body.
(21) Lump sum amount of the pension shall be determined with reference to Commutation Table laid down in Central Civil Services (Commutation of Pension) Rules, 1981
(22) The manner of sharing the financial liability on account of payment of pensionary benefits to the employees, who have exercised option under clause
(a) of sub-rule (11), by the autonomous body shall be determined by the Government.
(23) In respect of the employees who have exercised option under clause
(b) of sub-rule (11), the autonomous body shall make pensionary contribution to the Pension Fund for the period of service to be rendered by the concerned employees under that body at the rates as may be determined by the Board of Trustees so that the Pension Fund shall be self-supporting.
(24) If, for any financial or operational reason, the Trust is unable to discharge its liabilities fully from the Pension Fund and the autonomous body is also not in a position to meet the shortfall, the Government, through the administrative Ministry for the autonomous body, shall be liable to meet such expenditure and such expenditure shall be debited to either the Fund or to the autonomous body, as the case may be.
(25) Payments of pensionary benefits of the pensioners of a Government Department who retired from that Department before the date of its conversion into an autonomous body shall continue to be the responsibility of the Government and the mechanism for sharing its liabilities on this account shall be determined by the Government.
(26) In case of conversion of a Government Department into an autonomous body,-
(a) the balance of provident fund standing at the credit of the absorbed employees on the date of their absorption in the autonomous body shall, with the consent of such body, be transferred to the new Provident Fund Account of the employees in such body;
(b) earned leave and half pay leave at the credit of the employees on the date of absorption shall stand transferred to such body;
(c) the dismissal or removal from service of the autonomous body of any employee after his absorption in such body for any subsequent misconduct shall not amount to forfeiture of the retirement benefits for the service rendered under the Government and in the event of his dismissal or removal or retrenchment the decisions of the body shall be subject to review by the Ministry administratively concerned with the body.
(27) In case the Government disinvests its equity in any autonomous body to the extent of fifty-one per cent or more, it shall specify adequate safeguards for protecting the interest of the absorbed employees of such autonomous body.
(28) The safeguards specified under sub-rule (27) shall include option for voluntary retirement or continued service in the body, as the case may be, or voluntary retirement benefits on terms applicable to Government employees or employees of the autonomous body as per option of the employees, assured payment of earned pensionary benefits with relaxation in period of qualifying service, as may be decided by the Government.
(29) Nothing contained in this rule shall be applicable to the officers or employees including members of Indian Information Service, Central Secretariat Service or any other service or to the persons borne on cadres outside Akashvani and Doordarshan, serving in the Akashvani and Doordarshan and engaged in the performance of functions transferred to Prasar Bharati established under Prasar Bharati (Broadcasting Corporation of India) Act, 1990.
What This Means
Once the autonomous body finalizes its rules (within a 5-year timeframe), the employees on deemed deputation must be given a chance to decide whether they want to return to their parent government department or permanently join the autonomous body. They have a three-month window from the date they receive official notification to make this decision. This ensures that employees are not left in limbo and have control over their career path.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Applies to government employees on 'deemed deputation' to autonomous bodies.
- 2Autonomous bodies have a maximum of 5 years to frame their own rules and regulations.
- 3Employees must be given a 3-month window to choose between returning to government service or permanent absorption in the autonomous body.
- 4The 3-month window starts from the date of communication asking the employee to exercise the option.
- 5Ensures employees have a choice regarding their future employment.
Practical Example
Mr. Sharma, a government employee, was on deemed deputation to the National Research Institute (NRI) for three years. In July 2024, NRI finalized its own set of rules and regulations. On August 1, 2024, Mr. Sharma received an official communication from NRI asking him to choose between reverting to his parent government department or seeking permanent absorption at NRI. Mr. Sharma now has until October 31, 2024 (three months from August 1st) to make his decision and inform NRI accordingly. If he chooses to revert, he will return to his original government post. If he chooses absorption, he will become a permanent employee of NRI, subject to their rules and regulations.
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
What happens if the autonomous body doesn't frame its rules within 5 years?▼
What if an employee doesn't respond within the 3-month window?▼
Does this rule apply to all types of deputation?▼
What if the employee chooses absorption but the autonomous body rejects their application?▼
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 CCS (Pension) Rules, 2021, Rule 38, what is the maximum timeframe allowed for an autonomous body to frame its rules and regulations after which employees on deemed deputation must be given an option?