Role of Cabinet Decisions in Pension Fixation under GFR PDF

Shri Pankaj Chaudhary, the Minister of State in the Ministry of Finance, provided a response to Rajya Sabha Unstarred Question No. 2307 asked by Dr. Radha Mohan Das Agrawal regarding the pension fixation procedure under the General Financial Rules (GFR). According to the Minister, GFRs are only applicable to Central Government Ministries/Departments and their attached and subordinate bodies, and may also apply to central autonomous bodies unless separate financial rules approved by the Government exist. However, since the service conditions of State Government employees do not fall under the purview of the Central Government, the fixation of pension at the State level through an administrative order remains legally tenable.

Process of determining pension entitlements in accordance with the General Financial Rules (GFR)

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
RAJYA SABHA
UN-STARRED QUESTION NO. 2307
TO BE ANSWERED ON TUESDAY, 21% MARCH, 2023

PENSION FIXATION PROCEDURE UNDER GFR

2307 . Dr. RADHA MOHAN DAS AGRAWAL:

Will the Minister of FINANCE be pleased to state:

a) whether the General Financial Rules (GFR) of the Central Government apply only to the Central Government or apply to all the States, in a uniform manner;

b) whether the pension should be basically determined by the collective decision of the Cabinet under the Financial Rules or it could be done through an administrative order without the decision of the Cabinet; and

c) whether the fixation of pension at State level through an administrative order remains legally tenable, the details thereof?

ANSWER
THE MINISTER OF STATE IN MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)

(a) GFRs shall be applicable only to all Central Government Ministries/Departments, attached and subordinate bodies. The provisions contained in GFRs are deemed to be applicable to central Autonomous Bodies except to the extent the bye-laws of an Autonomous Body provides for separate Financial Rules which have been approved by the Government.

(b) & (c): The matter pertaining to pension in respect of Central Government are regulated by relevant service rules. Any changes therein are processed in terms of procedure prescribed in the Transaction of Business rules 1961 read with Allocation of Business rules 1961. The service conditions of the State Government employees do not come under the purview of Central Government.