PENSION ON RESIGNATION
P.ESAKKIMUTHU
(Querist) 24 October 2010
This query is : Resolved
I was informed that there is a judgment of SC that resignation amounts to retirement for the purpose of computing pension.Can anyone quote such decision
Kirti Kar Tripathi
(Expert) 24 October 2010
pension is the right of an employee, which he is entitled after termination of service, it may be retirement or resignation or on account of any reason except in the case of termination of service on account of misconduct and where the pension has been forfeited on this account by specific mention, acquires by him after rendering a particular length of service under his service rules.
R.Ramachandran
(Expert) 25 October 2010
Dear Mr. Kirti,
Your saying that 'pension is the right of an employee, which he is entitled after termination of service, it may be retirement or resignation..' is not the correct position.
Pension as per rules is available only on retirement (i.e. superannuation) or voluntary retirement (retiring after specified number of years of service).
Prior to that if any one quits the service it is not called 'retirement' but resignation. There is no provision for giving pension for those resign. However according to Mr. Esakkimuthu he has heard that SC has held in some case that 'resignation' amounts to 'retirement' for the purpose of grant of pension. He wants a confirmation of existence of any such SC judgment and if so the citation thereof.
Kirti Kar Tripathi
(Expert) 25 October 2010
Respected Sir
I do not agree with you as you say that my opinion regarding eligibility of pension on account of resignation is not correct. the Rules 5 of the Central Government Services (Pension) Rules 197 are clear in this regard, The same is being quoted as under.
5. Regulation of claims to pension or family pension
(1) Any claim to pension or family pension shall be regulated by the provisions of these rules in force at the time when a Government servant retires or is retired or is discharged or is allowed to resign from service or dies, as the case may be.
1(2) The day on which a Government servant retires or is retired or is discharged or is allowed to resign from service, as the case may be, shall be treated as his last working day. The date of death shall also be treated as a working day :
2Provided that in the case of a Government servant who is retired prematurely or who retires voluntarily under Clauses (j) to (m) of Rule 56 of the Fundamental Rules or Rule 48 3[or Rule 48-A], as the case may be, the date of retirement shall be treated as a non-working day.
Similar Rules are framed by the respective State Governments for their own employees.
Hope, you will agree my opinion.
Vinod Singh Tomar
(Expert) 25 October 2010
No. One of the conditions for eligibility of pensions is length of service which every body has not considered. A person merely by putting say about 14 years of service and thereafter submitting a resignation and / or by opting voluntarily retirement can not claim pensionery benefits.Thus, minimum length of service is prescribed every where let it be central or state government.
Kirti Kar Tripathi
(Expert) 25 October 2010
in my earlier reply i have already mentioned that the pension is payable after rendering a particular length of service prescribed under the service rules.
P.ESAKKIMUTHU
(Querist) 25 October 2010
please cite the supreme court decision or any other Court on this aspect of resignation qualifying for pension
R.Ramachandran
(Expert) 26 October 2010
In the regulation quoted by Mr. Kirti, the term used is "is allowed to resign from service". This means, it is not unilateral resignation but resignation which has been allowed by the employer.
There are rules and procedures under which an employer can admit / allow Resignation submitted by an employee. This is popularly called "Voluntary Retirement Scheme / Plan etc." In some places such voluntary retirement is open ended that whenever a person completes eligible number of years of service he can opt to go on voluntary retirement. In some cases the "Voluntary retirement" option is opened for a specified window period and those who opt within such window period would be permitted to retire voluntarily.
THUS, ANY UNILATERAL RESIGNATION BY AN EMPLOYEE (EVEN AFTER PUTTING IN YEARS OF SERVICE WHICH OTHERWISE WOULD HAVE ENTITLED HIM TO RETIREMENT BENEFITS) WILL NOT ENTITLE HIM TO RETIREMENT BENEFITS.
Otherwise there would have been no need for any Supreme Court decision at all.
It is precisely for this reason, that Mr. Esakkimuthu is looking for the particular SC decision where it is believed that SC has held that 'resignation' amounts to 'retirement' for the purpose of grant of pension.
Kirti Kar Tripathi
(Expert) 26 October 2010
i agree with Mr. Ramchandran to the extend that it is not related with unilateral resignation. Allowed to resign itself means the resignation duly accepted by the employer.
