
Now if a former government employee, who is now working in a Public Sector Undertaking (PSU), commits any serious irregularity there, then his retirement pension related to his earlier government job can also be confiscated. The government has implemented this new provision by amending the Central Civil services (Pension) Rules.
What does the new rule say?
According to the notification issued by the Department of Pension and Pensioners Welfare (DoPPW) on May 22, if an employee is removed from a PSU after being permanently absorbed there due to misconduct or indiscipline, then the confiscation of pension benefits earned during the government job can also be applicable on him. This decision will be taken after the review of the concerned ministry.
What was the rule earlier?
Earlier, if an employee was fired while working in a PSU, then his pension and other retirement benefits related to his government job were not affected. Under Rule 37(29)(c), it was clear that disciplinary action in PSU will not have any effect on the pension of government job. But now this rule has been changed and a new provision has been implemented.
Change made after supreme court order
This amendment has been made after the order of the supreme court dated 9 january 2023. This order was given in the case "Suraj Pratap Singh vs CMD BSNL", in which clarity was sought regarding pension benefits. As per the instructions of the court, by amending the rules, now the pension of government job can be canceled even if fired in PSU.
Which employees will this rule apply to?
This new rule applies to those government employees who have been permanently absorbed in the public sector undertaking of a government department. Such as employees transferred from Telecom Department to BSNL, or from any other department to HAL, BHEL, etc.
There will also be a provision for review
However, this decision will not be final. If an employee is fired from a PSU, that decision will be reviewed by the concerned ministry. That is, the decision to seize pension will be taken with the approval of the ministry and not just the PSU.