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State of Tamilnadu - Section

Section 38 in Tamil Nadu Pension Rules, 1978

38. Compensation pension.

(1)If a Government servant is selected for discharge owing to the abolition of his permanent post, he shall, unless he is appointed to another post, the conditions of which are deemed by the authority competent to discharge him to be at least equal to those of his own, have the option -
(a)of taking compensation pension to which he may he entitled for the service he had rendered, or
(b)of accepting another appointment on such pay as may be offered and continuing to count his previous service for pension.
Note. - (1) A reduction in the number of men paid for piece work and treated as having held a substantive office should be considered as an abolition of their appointments and the savings may, in such cases, be calculated on the average earnings of the last six months as laid down in rule 31.
(2)An officer in foreign service should be held to have lost his lien from the date on which his post in Government service was abolished and no contribution could be received after that date. He should be regarded as having retired from Government service from that date and he should thereafter be permitted to draw the pension to which he is entitled in addition to the pay which he receives at the time from his foreign employer.
(3)When an officer is transferred from pensionable Government service to a non-pensionable establishment he cannot be granted any pension or gratuity admissible to him for the qualifying portion of his service until he actually retires from the public service, that is from the non-pensionable establishment to which he belongs.
(4)If an officer is transferred to a non-qualifying appointment in the interest of the public service and under orders of competent authority, he is entitled to a compensation pension if discharged on abolition of that non-qualifying appointment.
(2)
(a)Notice of at least three months shall be given to a Government servant in permanent employment before his services are dispensed with on the abolition of his permanent post.
(b)Where notice of at least three months is not given and the Government servant has not been provided with other employment on the date on which his services are dispensed with the authority competent to dispense with his services may sanction the payment of a sum not exceeding the pay and allowances for the period by which the notice actually given to him falls short of three months.
(c)No compensation pension shall be payable for the period in respect of which he receives pay and allowances in lieu of notice.
(3)In case a Government servant is granted pay and allowances for the period by which the notice given to him fails shorts of three months and he is reemployed before the expiry of the period for which he has received pay and allowances, he shall refund the pay and allowances so received for the period following his re-employment.
(4)If a Government servant who is entitled to compensation pension accepts instead another appointment under the Government, subsequently becomes entitled to receive a pension of any class, the amount of such pension shall not be less than the compensation pension which he could have claimed if he had not accepted the appointment.