Cabinet approves disbursement of pensionary benefits to all MTNL employees

The Union Cabinet on Thursday approved the disbursement of pensionary benefits to all categories (Group A, B, C and D) of MTNL employees, and to those who have opted for combined service.

Accordingly, consequential amendments to the Central Civil Services (Pension) Rules, adjustments in respect of Government pension liability previously discharged by MTNL and proposed change in methodology in pension contribution as per FR-116 upto 31.12.2005 on the maximum of the IDA pay-scales and with effect from 01.01.2006 on the actual pay drawn in the IDA pay-scales will be made, the Cabinet said in a statement.

Based on the approval for payment of pensionary benefits to the erstwhile government employees absorbed in MTNL who have opted for combined pension in the same manner as in BSNL, necessary amendments in Rule 37-A of CCS (Pension) Rules, 1972 to include MTNL along with BSNL, will be issued and adjustments in respect of Government pension liability previously discharged by MTNL will be done within three months.

The Cabinet felt that this would help to resolve the long pending MTNL pension issue.

The proposal entails an estimated recurring expenditure of approximately Rs. 500 crore per annum besides adjustments in respect of government pension liability previously discharged by MTNL.

This decision would give benefit to approximately 43000 employees of Delhi and Mumbai.