Section 16(1) in The Khadi And Village Industries Commission Employees (Pension) Regulations, 1984
(1)An employee of the Commission who, having retired on compensation pension or invalid pension or compensation gratuity or invalid gratuity, is re-employed and appointed substantively to a post under Commission to which these regulations apply may exercise option either-(a)to continue to draw the pension or retain the gratuity sanctioned for his earlier service, in which case his former service shall not count as qualifying service, or(b)to cease to draw his pension and refund(i)the pension already drawn,(ii)the value received for the commutation of a part of pension,and(iii)the amount of death-cum-retirement gratuity including service gratuity if any, and count the previous service as qualifying service:Provided that-(i)the pension drawn prior to the date of re-employment under Commission shall not be required to be refunded,(ii)the element of pension which was ignored for fixation of his pay including the element of pension which was not taken into account for fixation of pay shall be refunded by him,(iii)the element of pension equivalent of gratuity including the element of commuted part of pension, if any, which was taken into account for fixation of his pay shall be set off against the amount of death cum-retirement gratuity and the commuted value of pension and the balance, if any, shall be refunded by him.Explanation. - In this clause, the expression, which was taken into account means the amount of pension including the pension equivalent of gratuity by which pay of the employee of the Commission was reduced on initial re-employment, and the expression 'which was not taken into account' shall be construed accordingly.
