The government has the power to deny the pension benefits to the former employee if he/she voluntarily resign from the job. This procedure implies unless the resignation is allowed to be withdrawn in the public
interest.
In a ruling, the Supreme Court has upheld the denial of pension benefits to the legal heirs of an ex-Delhi Transport Corporation (DTC).
The SC says that the Central Civil Services (Pension) Rules, 1972 clearly states that resignation from a service or post entails the forfeiture of past service, unless the resignation is allowed to be withdrawn in the public interest.
However, the SC ruling allows the litigant to get gratuity and leave encashment. Under Section 4 of the Payment of Gratuity Act, 1972, the employee is eligible for gratuity if he/she completes not less than five years of service as a mark of loyalty compensation.
The SC ruling says that heirs were entitled to receive gratuity, given DTC was not exempted from this Act. The apex court also ordered to release leave encashment to the family.
The SC ruling marks a clarion call for all government employees, who are in a belief that serving over 20-30 years would make them default eligible for pension benefits. This applies only if they take a voluntary retirement following all procedures and a proper written notice. In case of a resignation, the government has the right to deny the pension benefits. This prevents a simple resignation, even if motivated by genuine difficulties, from being interpreted as a total break in service under Rule 26.
