Cabinet okays disbursement of pensionary benefit to MTNL employees

The union cabinet Thursday put an end to the long-pending pension issue of the Mahanagar Telephone Nigam Limited (MTNL) by approving that all categories of erstwhile government employees who were absorbed in MTNL will be given pensionary benefits.

"This would help to resolve the long-pending MTNL pension issue. The proposal entails a 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 43,000 employees of Delhi and Mumbai," an official statement here said.

The cabinet approved that all the erstwhile categories (group A, B, C and D) of employees of the government absorbed in MTNL and who have opted for combined service may be given similar treatment in the matter of payment of pensionary benefits as available to the absorbed employees of BSNL.

"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 statement said.

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 up to Dec 31, 2005 on the maximum of the IDA pay-scales and with effect from Jan 1, 2006 on the actual pay drawn in the IDA pay-scales will be made.