WITHHOLDING OF 10% IN ALL CASES IS NOT CORRECT

NATIONAL COORDINATION COMMITTEE OF PENSIONERS ASSOCIATIONS

13-C, FEROZESHAH ROAD, NEW DELHI – 110 001

No. FV -3 (P)/11                                                                                 Date: 08-06-11

To,

The Secretary,

Department of Pension & Pensioners Welfare,

New Delhi

                                Sub: - Amendment in Pension Rules providing for withholding 10% of 
                                   Gratuity in case of pensioners covered by Rule 64, Rule 71, Rule
                                   72 & Rule 80 of CCS (Pension) Rules 1972 – Regarding.

Dear Sir,

            I refer to Department of Pension & Pensioners Welfare Notification No. SO 829 (E) dated 07-04-10 promulgating the CCS (Pension) (Amendment) Rules, 2010.

            It is clear that the above amendments are applicable to pensioners who have been granted Provisional Gratuity (vide Rule 64), who are occupying the Govt. Accommodation on the date of their retirement (vide. Rule 70 & 71) and to Family pensioners whose spouse has died while in service.

            It is, however, observed that the 10% of Gratuity is being deducted and retained for six months from the Gratuity of Pensioners who are not covered by afore mentioned Rules or against whom some loans and advances have to be assessed or against whom no loans and advances are outstanding. This is certainly illegal.

            I, therefore, request you to clarify that the provisions of above amendments in Pension Rules may not be applied in case of Pensioners who are not covered by the amended provisions of Rules 64, 70, 71 & 80 of the CCS (Pension) Rules, 1972.

           

            Besides, this provision to deduct & retain 10% Gratuity is definitely on the higher side. It is, therefore, necessary that a provision for payment of interest on this retained 10% Gratuity for the period it is retained may also be made to protect the pensioner’s interest.

            This suggestion may also kindly be considered.

            Thanking you,

                                                                                                           Yours faithfully,

                                                                                               

                                                                                                              (S.K. VYAS)

                                                                                         Member,Staffside NC(JCM)

Copy to

The General Secretary, AIPAEA, New Delhi

Com. KKN Kutty, S.G. CCGEW, New Delhi