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Retirement benefits to stay for CPSE staff joining other unit

NEW DELHI, Feb 6: Employees of central public sector enterprises who resign to join other unit or state-run establishments will now be able to avail retirement benefits in continuation of existing service.
This has been made possible after the Department of Public Enterprises brought out a clarification for employees resigning on the ground of ‘technical formality’.
The clarification comes after confusion prevailed for years due to lack of clarity over what constitutes a ‘technical formality’ for employees availing superannuation benefit schemes in central public sector enterprises.
An office memorandum issued by the Department in 2014 on pension and superannuation medical benefits schemes in CPSEs had said that in cases of resignation (excluding resignation covered under technical formality clause) and compulsory retirement, removal, dismissal because of disciplinary proceedings, annuity would be based only on member’s contributions, if any, and interest thereon.
However, the meaning of the term ‘technical formality’ had not been clarified.
The Department has now said that “resignations under ‘technical formality clause’ include resignations in cases where a central public sector enterprise (CPSE) employee has applied for a post in the same or other CPSE through a proper channel and on selection to the said post, is required to resign from the previous post for administrative reasons”.
However, it added, that resignation submitted for other reasons or if competent authority has not allowed him to forward his application through proper channel is a resignation and benefit of past service will not be admissible in such cases.
The total employee strength in CPSEs stood at 12.91 lakh (excluding contractual workers) in 2014-15 as compared to 13.49 lakh in 2013-14.
The turnover of all 235 operating CPSEs during 2014-15 stood at Rs 19,95,902 crore as compared to Rs 20,66,057 crore in the previous year. (PTI)

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