No pension if govt employee hasn’t completed 20 years service: Supreme Court

No pension without completing 20 years

The Hush Post|2:49 pm|one-minute-read|

If government employees resign without completing 20 years of service, they are not eligible for a pension. This is as per the Central Civil Services Pension Rules.

The Supreme Court gave this ruling on Thursday, giving its verdict on a case relating to the resignation of an employee of BSES Yamuna Power Limited.

“The decision to resign results in the legal consequences that flow from a resignation under the applicable provisions. These consequences are distinct from the consequences flowing from voluntary retirement and the two may not be substituted for each other based on the length of an employee’s tenure,” the court said as per a news report.

Ghanshyam Chand Sharma worked as a daily wages mazdoor starting July 9, 1968. He became a regular employee on December 22, 1971. On July 7, 1990, he resigned from the company. BSES Yamuna denied Sharma pension for not completing 20 years of service and forfeiting his past services by resigning. Ghanshyam appealed to the Delhi High Court against BSES and the court ruled in favour of Ghanshyam. BSES moved to the apex court, which observed that Ghanshyam didn’t complete 20 years of service.
In India, Pension Fund Regulatory and Development Authority (PFRDA) is the pension regulator since 2003. As of now, the PFRDA is regulating and administering the National Pension System (NPS) along with the Atal Pension Yojana (APY).APY offers pension scheme for the unorganised sector, guaranteed by the Government of India.
India will have about a quarter of its population in the old age bracket and will need a pension support or something akin to it.

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