PSU Pension: The central government has made a major change in the pension rules. Now if a former government employee, who has been appointed to a public sector company (PSU), is fired from the job due to misconduct like indiscipline or corruption, then he will not get the benefit of a pension earned during government service.
This is a serious warning for lakhs of employees who have been transferred from government service to PSU. The Department of Pension and Pensioners Welfare under the Ministry of Personnel has amended Rule 37 of the Central Civil Services (Pension) Rules, 2021. This step has been taken to promote honesty and accountability in public service.
Let us understand these new rules in detail
Now if a government employee later joins a PSU permanently, and is fired there due to misconduct, the pension benefits earned during the years of government service will also be terminated. This is an unprecedented change that will prompt employees to exercise caution throughout their careers.
Earlier, even if one was fired from a PSU, the pension right for years spent in government service remained. The new rule removes this protection. This means no leniency will be tolerated.
This rule will apply to all those who have joined a PSU after retiring from government service; those who were earlier Central Government employees and are now in a PSU; and all those whose tenure is continuing in a PSU but started in government service. This rule brings all of them under a uniform standard.
The decision to sack an employee from a PSU will be reviewed by the administrative ministry of that PSU. Also, the rules of disciplinary action applicable to government servants will be applied ‘analogously’ to PSUs as well. This ensures that decisions are fair and consistent.
Even after joining a PSU, pension benefits of government service are not secure if there is any indiscipline. Even if the misconduct happens after 10 years, the pension can be completely lost. This is a strict warning that honesty is essential for life.
This change is to promote responsibility and discipline in public service. Now it has become mandatory for any former government employee to maintain complete transparency and honesty in his conduct while working in a PSU. This move is a big step towards a clean and responsible administration.