Modifying the liability of BSNL towards the payment of pensionary benefits to the retired employees

Modifying the liability of BSNL towards the payment of pensionary benefits to the retired employees: DoT Order

No. 40-13/2013-Pen (T)

Government of India

Ministry of Communications

Department of Telecommunications

Dated 20.07.2016

OFFICE MEMORANDUM

As stipulated in Rule 37-A of CCS (Pension) Rules, 1972, the pensionary benefits in the case of BSNL shall be paid by the Government, and the Government shall specify the arrangement and the manner including the rate of pensionary contribution to be made by BSNL and the manner in which financial liabilities on this account shall be met.  As per sub-rule 24 of the said Rule, the arrangement thus worked out shall be applicable to the existing pensioners and to the employees who are deemed to have retired from Government.

2. The instructions with regard to the financial liability on this account were issued vide DoT’s letter no. 1-45/2003-B dated 15.06.2006. Subsequently, the matter of modifying the Pension liability of BSNL towards the payment of pensionary benefits including family pension to the retired employees has been considered by the Government, and the following has been decided:

(a) The pension liability in respect of employees of DOT/ DTS/ DTO who retired prior to 01.10.2000 is solely borne by Government of India and the BSNL will have no liability in respect of these employees.

(b) The liability towards pensionary benefits including family pension to the BSNL employees (excepting those recruited after 01.10.2000), as per sub-Rule 22 of Rule 37-A of CCS (Pension) Rules, 1972, lies with the Government of India. The condition that the annual pension liability of the government shall not exceed 60% of the annual receipts to Government from the items specified in the OM. dated 15.06.2006, is hereby rescinded.

(c) BSNL will continue to discharge pension liability by way of pension contribution in accordance with FR 116.

(S K Jain)

DDG (Establishment)