GDS Severance Amount | Grant of payment of severance amount to GDS (Gramin Dak Sevaks) | Directorate Reply to AIGDS Union
No.17-09/2018-GDS
Government of India
Ministry of Communications
Department of Posts
(GDS Section)
Dak Bhawan, Sansad Marg,
New Delhi-110 001
Dated: 22.03.2022
Shri S S Mahadevaiah
Subject: - Grant of payment of severance amount to GDS-reg.
Sir,
I am directed to refer to your letter no. GDS/CHQ/18/7/2022 dated 11.03.2022 on the above mentioned subject and to inform that, response on the issues raised by Union is as under: -
Point 1:- The letter no. 17-19/2018-GDS dated 09.01.2022 on the subject is ambiguous. The orders that "the severance amount shall in paid at the rate of Rs 4000/- for every completed year of service from 01.01.2011 are being interpreted in two ways.
One which is correct that the severance amount will be paid at the rate of Rs 4,000/- for every completed year of service. This order will take effect from 01.01.2016, and two which is apparently wrong the for the severance amount will paid at the rate of Rs 4,000/- for every completed year of service the order will take effect from 01.01.2016, and
two which is apparently wrong the severance amount will paid at the rate of Rs 4000/- for every completed year of service after 01.01.2016 and for the service rendered before 01-01-2016 it will be at the rate of Rs 1500/- Specific orders that "severance amount shall be paid every at the rate of 4000/- per completed year of service and that this order will take effect from 11.01.2016" may kindly be got issued.
Secondly we very emphatically feel and suggest that it should be made clearthat period of more than six months should be reckoned as a "completed" year.
Reply: - The orders on payment of Severance Amount was issued vide letter no. 17-09/2018-GDS dated 07.01.2022. Service Discharge Benefit Scheme (SDBS), 2011 was introduced with effect from 01.04.2011 (vide notification no. 6-11/2009-PE.-II dated 01.04.2011). Before introduction of SDBS, the GDSs were entitled to payment of Severance Amount. In case of GDS, who opted to join SDBS, the Severance Amount accrued to them @Rs 1500 for every completed year of service was deposited into their Permanent Retirement Account (PRA). The accumulated contribution remained in the PRA and would be used for annutisation/utilization at the time of discharge from service/death, in accordance with these regulations.
Department's order on social security benefits to GDS issued vide OM no. 17-31/2016-GDS dated 27.06.2018 and 01.07.2019 clearly states “the Severance Amount shall be paid at the rate of Rs. 4,000/- for every completed year from 01.01.2016. Maximum ceiling on Severance Amount shall be Rupees One lakh fifty thousand (Rs.1,50,000/-)”.
Point 2 (i): -In quite a number of circles and divisions, the severance amount has not been paid. It is reported that severance amount is still to be paid North East and other circles. Clear orders as suggested above should be issued asking circles to pay severance amount if it has not been paid so far.
Reply: - As mentioned above, clear orders on the SDBS and Social Security Benefits to GDS has already been issued vide letter no. 6- 11/2009-PE-II dated 01.04.2011 and vide letter no. 17-31/2016-GDS dated 27.06.2018 and 01.07.2019 respectively. Matter may firstly be please taken up with Circle concerned. In case of inaction of circle, Union is requested to cite specific examples so that this office can ascertain details and take further action.
Point 2 (ii): -The SDBS was introduced with effect from 01.04.2011. Those who retired or were promoted to departmental posts after 01.04.2011 were due for payment of severance amount for the period of service rendered before 01.04.2011. Such recommendation has also been made by the GDS committee in para 18.11. Immediate orders as this on score may be kindly got issued.
Reply: - SDBS was introduced with effect from 01.04.2011. Before introduction of SDBS, the GDSs were entitled to Severance Amount as may be decided by the Government from time to time. In case of GDS, who opted to join the SDBS, the Severance Amount which had accrued to them for every completed year of service, was deposited @Rs 1500 into their Permanent Retirement Account (PRA). The accumulated contribution remained in the PRA and at the time of discharge from service/death the amount would be used for annutisation/utilization in accordance with these regulations at. Asper the GDS Committee report Para 18.11, the order on Social Security Benefits to GDS has been issued vide letter no. 17-31/2016-GDS dated 27.06.2018 and 01.07.2019 (copies enclosed).
Point 2 (iii): - There is yet another problem of such GDS who opted for SDBS but the subscription at their credit was not sufficient for being covered under the scheme. In such cases the amount of subscription is being refunded but severance amount due is not being paid. Immediate orders may kindly be got issued for payment of severance amount to such GDS.
Reply: - Para 5 (a) (ii) of Pension Fund Regulatory and Development Authority (Exits and Withdrawals Under the National pension System) Regulations 2015 stipulates that “if the accumulated pension wealth of the subscriber is equal to or less than a sum of one lakh rupees, such subscriber shall have the option to withdraw the entire accumulated pension wealth without purchasing any annuity and upon such exercise of this option, the right of the subscriber to receive any pension under the National Pension System shall extinguish and any such exercise of this option by the subscriber, before the regulations are notified, shall be deemed to have been made in accordance with this regulation”.
SDBS has replaced Severance Amount and therefore, those GDS who are covered under SDBS are not entitled for Severance Amount. The matter already has been examined and suitable reply has been forwarded to Union vide letter dated 08.10.2021 (copy enclosed).
