Allocation of leave salary and pension contribution between Central and State Governments and between two State Governments dispensed with. -

(4) Allocation of leave salary and pension contribution between Central and State Governments and between two State Governments dispensed with. - 1. The Government of India appointed a Committee to review the existing General Financial Rules and Treasury Rules and Account Code, Volume I and to make conceptual suggestions for their revision so as to simplify and rationalise these rules. The Committee in Chapter 5 of its Second Report has examined the existing system of allocating the liability on account of leave salary and pensionary charges of the Government servants who have served under the Central Government and State Governments as contained in Appendix 3-B-II and B-IV to Account Code, Volume I and made the following recommendations :- (a) The practice of realising leave salary contributions may be dispensed with altogether as this is a very small fraction of amounts payable to State Governments on account of deputation of their officers to the Central Government. (b) Recovery of leave/pension contributions in respect of inter-State transactions, which must be few and far between and could be given up. (c) In regard to pensionary liability the Central Government may forgo any contribution recoverable from State Governments and to whom Central Government Officers are deputed. (d) In lieu of Central Government liability towards pension of State Government Officers (mainly All India Service Officers) who are deputed to Centre for varying spells an ad hoc grant payable to each State Government may be worked out at the beginning of the financial year and disbursed to them in one lump sum as Grant-inaid (Non-Plan) on the basis of a simple formula which takes into account cadre strength, and average length of deputation of All India Service Officers to Central Government. 2. Pursuant to the above, it has been decided in consultation with the State Governments to dispense with the system of allocation of leave salary and pension between Central and State Governments as specified below :- (a) Leave Salary. - The existing system of allocation or sharing of the liability on account of leave salary contributions by Central Government to State Governments or vice versa will be dispensed with. The liability of leave salary will be borne in full by the Department from which the Government servant proceeds on leave, whether it be his parent Department or a borrowing Department with whom he is on deputation. (b) Pension. - The liability for pension including gratuity will be borne in full by the Central/State Department to which the Government servant permanently belongs at the time of retirement. No. recovery of proportionate pension will be made from Central/State Government under whom he had served. (c) Contributory Provident Fund. - The liability for Government contributions will be borne by the Parent Department of the Central or State Government and no share of contributions will be recovered from any borrowing Department. 3. It has also been proposed to extend the above provisions to exchange of officers between two State Governments. Accordingly, there will be no allocation of leave salary/pension contribution among the Departments of the various State Governments. 4. These orders will take effect from 1-4-1987 and will apply to all cases of leave salaries with pensions sanctioned on or after that date. 5. This issues with the concurrence of the Comptroller and Auditor-General of India vide his UO No. 114-AC. I/163-86, Vol. II, dated 3-10-1986. [G.I., M.F., C.G.A., O.M.No. 14 (5)/86/TA/1029, dated the 9th October, 1986.] Clarification. - References are being received from Union Ministries/Departments as also the State Governments in regard to the applicability of the above OM to Government employees (temporary/permanent), moved from Central 1/30/2019 CHAPTER http://persmin.nic.in/pension/rules/pencomp3.htm#Commencement%20of%20qualifying%20service 7/54 Government to State Governments and vice versa in terms of the Department of Per. & AR, OM No. 3 (20)/Pen. (A)/79, dated 31-3-1982 The matter was taken up with the Ministry of Personnel, Public Grievances and Pension (Department of Pension and Pensioners' Welfare), who have since clarified this point as under - "The Controller-General of Accounts, OM No. 14 (5)/86/TA/1929, dated 9-10-1986, seeks to dispense with the system of sharing pension liability between Centre and State Governments as contemplated in Appendix 3-B-IV of Account Code, Volume I. It would, therefore, be naturally applicable to all cases where the system of apportionment of pension liability was in vogue prior to its issue, i.e., in respect of both permanent and temporary employees of the Central/State Government, as the case may be." [G.I., M.F., C.G.A., O.M. No. 14 (5)/86/TA/1112, dated the 5th December, 1989.]