Guiding principles for reduction of pensionary benefits

(1) Guiding principles for reduction of pensionary benefits under Rule 40 (1). - Rule 40 prescribes the limit of retirement benefits which would be admissible to an officer on whom the penalty of compulsory retirement may be imposed. This form of penalty has been introduced to provide for cases in which the continuance of a Government servant in service is considered to be undersirable but the extreme penalties of removal or dismissal, with the consequent loss of pension, is considered to be too severe. The intention is that persons on whom the penalty of compulsory retirement is imposed should ordinarily be granted the full compensation pension and retirement gratuity, admissible on the date of compulsory retirement. Where, however, the circumstances of a particular case so warrant, the authority competent to impose the penalty of compulsory retirement may make such reductions in the pensionary benefits, within the limits prescribed, as it may think appropriate. In the case of a person governed by the New Pension Rules reduction may be made either in the retirement gratuity or in the pension or in both. [G.I., M.F., Letter No. F.7 (22)-E. V/56, dated the 3rd June, 1957.]