Section 42 in The Orissa Local Fund Service (Pension) Rules, 1980
42.
(1)The full pension admissible under these rules shall not be sanctioned to an employee unless the service rendered by that employee has been approved by the pension sanctioning authority as satisfactory.(2)If such service has not been satisfactory, the authority sanctioning the pension may make such reduction in the amount of pension or gratuity, or both as that authority may think proper :Provided that this rule cannot be used directly to effect panel recovery but the competent authorities are justified in making proof of specific instance of fraud or negligence by an employee, the ground for a finding that his service has not been satisfactory within the meaning of the rule for the purpose of reducing pension :Provided further that the amount of pension shall not be reduced below the minimum limit :Provided also that where pension has already been reduced under Rule 8 further reduction may not be made under this rule.(3)Whenever an order reducing the pension of an employee is passed, the employee affected shall have a right of appeal to the authority to whom an appeal from an order of dismissal or removal lies under the provisions of the Act.(4)The measure of reduction in the amount of pension shall be to the extent by which the employee's service as a whole failed to reach a satisfactory standard and no attempt shall be made to equate the amount of reduction with the amount of loss caused to the employee.Note - The service of an employee may be presumed to be not satisfactory on account of his failure to satisfactorily account for the possession of pecuniary resources or property disproportionate to his known sources of income.(5)The reduction referred to in Sub-rule (2) shall be of permanent character.(6)The pension sanctioned under these rules shall not be reduced although proof Of the service having been not satisfactory may come to the notice of the pension sanctioning authority subsequent to the sanction of pension.
