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O/o the Commissioner of Municipal Administration,

Chepauk, Chennai-5.

Roc.No.4802/06/J3 Dated: 01.08.2006

CIRCULAR

Sub: Establishment Municipal Employees Settlementof Terminal benefits Abnormal delay AvoidanceInstructions Issued.

---Representations are received from retired Municipal employees,

pleading for early sanction of terminal benefits including pension. On

verification, it is found that there is inordinate and abnormal delays at every

stage in processing the claims of the retired employees. Not to speak of

other terminal benefits, pension/ family pension is not sanctioned even

after many years of retirement. This causes much hardship to the retired

employees or to the legal heirs of the diseased.

This is mainly due to the following lapses.

1. Delay in finalization of disciplinary proceedings;

2. Improper retirement orders

In certain cases, Municipal Commissioners have issued improper

retirement orders without observing specific conditions prescribed for

voluntary/Medical Invalidation retirement

In order to avoid such lapses while issuing orders retiringemployees, the following instructions are issued:-

1. Annual list of employees should be prepared who are due for

retirement taking the retirement age for each category into account

without omission.

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2. Service verification entries are to be ensured for the entire service

period in the Service Register of the individuals without omission.

3. Disciplinary proceedings should be finalized before 3 months of the

retirement of the individual.

4) a. Under VRS, 90 days notice period is to be ensured and it is to be

calculated from the date of receipt of application by the Competent

Authority to retire the employee.

b. A report should be obtained from DVAC to the effect that no enquiry

is contemplated or pending against the employee.

5. Under medical invalidation, an employee should be retired on receipt

of medical report without delay. The retirement date should be the date of

the medical report and if an employee is certified by the Medical Board as

fit to continue in service with some kind of treatment, he cannot be retired

(Note 2 under Rule 31(1)9c of TN Pension Rules, 1978.) against the

medical opinion.

In the cases where employees are retired without observing the

prescribed procedure and rules, then the pension proposals are not

sanctioned by the Director of Local Fund Audit and Government ratification

is required. Whenever proposals are sent to Government for ratification, it

has become necessary to initiate disciplinary action against the officers

responsible.

Therefore, all the Corporation Commissioners, Municipal

Commissioners, and Executive Officers of Third Grade Municipalities are

requested to adhere to the instructions issued by the Government to retire

employees and also on the settlement of retirement benefits. Any deviation

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will be viewed seriously and lead to initiation of disciplinary action against

persons responsible.

Sd/-Niranjan Mardi,

Commissioner of MunicipalAdministration.

ToAll Corporation Commissioners.(except Chennai)All Municipal CommissionersAll Executive Officers, Third Grade Municipalities.

Copy to All Regional Directors of Municipal Administration.