Special Voluntary Retirement Scheme for Surplus Central Government Employees - orders Issued on 28.02.2002
No.25013/6/2001-Estt.(A)
Government of India
Ministry of Personnel,
Public Grievances & Pensions
Department of
Personnel & Training
New Delhi, the 28th
February, 2002
OFFICE MEMORANDUM
Sub: Special Voluntary Retirement Scheme for Surplus Central
Government Employees.
The Expenditure Reforms Commission
(ERC) set up by the Government of India has Suggested a liberal Voluntary
Retirement Scheme (VRS) for the employees secluded surplus. This recommendation,
contained in Commissions second Report on Optimizing Government Staff Strength.
Some General Issues, has been considered carefully and the Central Government have
decided to introduce a special Voluntary Retirement Scheme (VRS) as per details
given in para 2 hereinunder for the permanent employees declared surplus in any
Ministry/Department as a consequence of one or more of the following:-
(i) Implementation of decisions of the Cabinet
regarding restructuring of Ministries/Departments:
(ii) Implementation of the recommendations of the
Expenditure Reforms Commission
(iii Implementaion of the decision of a Ministry
/Department relating to downsizinf/rightsizing including, inter alla, restructuring
of an organization, transfer of an activity to a State Government Public Sector
Undertaking or other Autonomous Organisation Discontinuation of an ongoing activity
and introduction of changes In technology; or
(iv) Implementation of work study reports undertaken
by the Staff Inspection Unit of the Ministry of Finance or any other body set
up by the Central Government or the Ministry /Department concerned.
2. The features
of the Special VRS for the emploees declared surplus are as under:-
(a) All
permanent employees rendered surplus Inrespective of their age and qualifying service
can opt for the scheme.
(b) An optee of
special VRS will be entitled to receive an ex-grate amount equal to basic pay
plus dearness allowance for the basic of length of service @ 35 days for each
completed year and 25 days for each remaining year. For any part of a year, the
number of days, for ex-gratia amount, will be worked out on the basis of 365
days in a year. The ex-grate amount will be further subject to the following
conditions:
(i) total
number of years to be counted for payment of ex-gratia will not exceed 33 yers;
(ii) No weightage
of additional service will be given for the purpose of calculation of ex-gratia;
(iii) The
ex-gratia will be subject to a minimum of Rs.25,000 or 520 days emoluments
whichever is higher:
(iv)The
ex-gratia amount should not exceed the sum of the basic pay plus DA that the
employees would at the vialling level for the balance of the period of service
left before superannuation:
(v)The
ex-gratia amount will be paid in lump sum;
(vi) The
ex-gratia amount up to Rs.5.00 lakhs will be exempted from Income Tax;
(c) A weightage
of five years to the qualifying service shall be given under CCS(Pension)
Rules, 1972 to such permanent surplus employees who have rendered a minimum of
15 years of qualifying service on the date they are declared surplus. However,
as provided in rule 29 of CCS (Pension) Rules, 1972, the qualifying length of
service after taking into account the service he would have rendered had he
retired on the date of his superannuation.
(d) Encashment
of Earned Leave accumulated on the date of relief as per CCS (Leave) Rules,
1972;
(e) Payment of
savings element with interest in the Central Government Employees Group
Insurance Scheme as per rules;
(f) TA/DA as on
retirement for self and family setting anywhere in India as per Travelling Allowance
Rules;
(g) Group ‘A’ officials
opting for the special VRS will be exempted from the operating of rule 10 of the CCS (Pension) Rules Which stipulates
previous sanction of the Government for accepting commercial employment.
3. Payment of
ex-gala to the employees declared surplus and opting for the special VRS within
the specified three months period will be over and above the normal retirement entitlements
under CCS (Pension) Rules, 1972.
4.The order of voluntary
retirement in each case should clearly stipulate that the surplus post held by
the retiring incumbent will stand abolished from the date of his/her voluntary
retirement.
5. The
identification of surplus employees for the purpose of VRS would be guided by
procedure given in Item 3 of Annexure-I under the heading “Steps for identification
of Surplus staff to the revised scheme of the disposal of personnel render
surplus due to reduction of establishment in Central Government Department/Offices
notified vide Circular No: 1/18/88-CS-III of DoPT dated 1st April,
1989.
6. The permanent
employees declared surplus will have to exercise option for special VRS within
three months from the date he or she has been declared surplus in any Ministry/Department.
Surplus employees presently on the Rolls of the Supplies cen (Redesignated as
the Division of Retraining and Redeployment) of the Department of Personnel
& Training as on the date of this OM can also opt for Special VRS within
three months from the date.
7. In order to facilitate
the maintenance of a close watch on the Implementation of the Scheme, all
Ministry/Department are required to submit quarterly returns to the Surplus Cell
of Department of Personnel & Training that may be prescribed by that Cell.
8. Ministry of
Finance, etc are requested to give wide publicity to the contents of this O.M
to the employees decreed surplus.
(Smt.
Pratibha Mohan)
Director
(E-II)
Tel:
3013180
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