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PUNJAB CIVIL SERVICES RULES, VOLUME-II (HARYANA AMENDMENT) RULES, 2011

PUNJAB CIVIL SERVICES RULES, VOLUME-II (HARYANA AMENDMENT) RULES, 2011

PUNJAB CIVIL SERVICES RULES, VOLUME-II (HARYANA AMENDMENT) RULES, 2011

PREAMBLE

Whereas, the Government of Haryana is broadly following the Central Government pattern in the matter of pay scales for its employees with effect from 1986 and further revised the pay scale with effect from 1st January, 1986, 1st January, 1996 and 1st January, 2006 as per the recommendations of various Central Pay Commission. Similarly the pensionary benefits have also been allowed broadly on the Central pattern and pension of the Haryana Government pensioners had been revised accordingly w.e.f. 1st January, 1996 and also w.e.f. 1st January, 2006 vide notification No. 2/51/2008-1 Pension, dated 17th April, 2009.

And whereas the State Government vide its notification No.1/2/8/98-2FR-II, dated 4th March, 2003 increased the period of restoration of commuted value of pension from 12 years to 15 years on the basis of Hon'ble Supreme Court judgment dated 9th December, 1986 in Writ Petition No. 3958-61 of 1983 and according to the modified provisions of Central Civil Services (Commutation of Pension) Rules, 1981. The State Government also made a provision vide said notification dated 4th March, 2003 that in case of pre-mature retirement or compulsory retirement, wherever commutation is permissible, the commuted portion of pension shall be restored after surrender of full value of commutation together with notional simple interest to be calculated @ 8.1.% per annum by reducing balance method. As per provisions of rule 15(b) of the notification No. 2/51/2008-1 Pension, dated 17th April, 2009, the existing table of Commutation Value for Pension have been substituted by the new Table as at Annexure-1 of the above said notification dated 17th April, 2009. The factor mentioned in column of commutation value expressed as number of years purchased and age next birthday is ranging from 20 years to 81 years and factor available is 9.188 to 4.611, whereas, in the existing Table under rule 11.5 of Punjab CSR Volume-II at Annexure to Chapter 11 consisting of corresponding factor between the age of 20 years to 81 years is 19.01 to 3.94. The State Government has observed that by charging of notional interest on commuted value of pension in case of pre-mature retirement, as in case of early age retirement, even the principal amount, which was advanced to the retiree as commutation is higher than commuted amount of employee who retired on superannuation i.e. at the age of 58 years and less interest amount is recovered in case of pre-mature basis i.e. voluntary retirement, compulsory and invalid retirement. For example:-

Retirement at the age of 50 years (On Voluntary)

Retirement at the age of 58 years (On Superannuation)

After completion of 28 years of qualifying service

After completion of 28 years of qualifying service

Sanctioned Pension ` 10,000 p.m.

Sanctioned Pension ` 10,000 p.m.

Commuted amount ` 4,000 @ 40% of pension

Commuted amount ` 4,000 @ 40% of pension

Factor as per new commutation table i.e. 8.808

Factor as per new commutation table i.e. 8.371

Commutation amount =

8.808 x 4000 x 12 = 4,22,784

Recovery installments =

422784/4000 = Say= 106 Inst.

Intt. 106 X 107 X 4000X 8.1 = 1,53,117

2 X 12 X100 Installments of Intt. 153117= 38

4000

Commutation amount =

8.371x 4000 x 12 = 4,01,808

Recovery installments =

401808/4000 = Say= 100 Inst.

Total amount recovered

400 0X 12 X 15=7,20,000

Principal= 401808

Intt. 720000-401808 = 3,18,192/4000=79.54

Says 80 Inst.

After recovering full value of commuted pension with notional simple interest @ 8.1

After 15 years of commutation.

Total Inst. 106+38=144 of ` 4000 each

144/12 = 12 years

Amount recovered= ` 5,75,901

Total Inst. 100+80= 180 of ` 4000 each

says 15 years

Amount recovered= ` 7,20,000

Now, therefore, in exercise of the powers conferred by the proviso to article 309 of the Constitution of India, the Governor of Haryana hereby makes the following rules further to amend the Punjab Civil Services Rules Volume-II as applicable to the State of Haryana, namely:-

Rule - 1.

(1)     These Rules may be called the Punjab Civil Services Rules, Volume-II (Haryana Amendment) Rules, 2011.

 

(2)     They shall come into force with effect from the 17th April, 2009, for the Government employees retired/retiring from Government service on or after 17th April, 2009.

Rule - 2.

In the Punjab Civil Services Rules, Volume-II in Rule 11.1 for the sub-rule (1) the following sub-rule shall be substituted namely:-(1) A Government employee, on superannuation/pre-mature retirement, shall be entitled to commute for a lump sum payment a fraction not exceeding 40% (forty percent) of his pension. The fraction of pension so commuted on retirement i.e. superannuation/pre-mature retirement shall, however, be restored to him on completion of 15 years from the date of retirement or 15 years from the actual receipt of commutation value, whichever is later''.