PART – 1 – ALLOWANCES, SALARIES AND PENSIONS ETC.

Dated Lahore, the 15th March, 2003

Subject: MATTERS PERTAINING TO PENSION OF THE EMPLOYEES GOVERNMENT / ERSTWHILE LOCAL COUNCILS

With the implementation of the PLG Ordinance, 2001, the administrative functions and financial management of the offices of Local Government and Rural Development Department, Housing, Urban Development and Public Health Engineering Department at the Regional, Zonal, Circle/Divisional, District/Tehsil and lower tiers stand entrusted to the Tehsil Municipal Administrations (TMAs).

To give effect to the provisions of Section 52 read with Sections 53(4) and 183(1) ibid, the civil servants working in the field formations of the aforestated departments, and the employees of the erstwhile Local Councils were transferred and adjusted in the Tehsil Municipal Administrations (TMAs) and Union Administrations (UAs), in the light of this Department’s circular No. SOIV(LG)10-1/2002 dated 20-6-2002.

Meanwhile, the employees of Education and Health sectors of the erstwhile Urban Local Councils were transferred and adjusted in respective District Governments in the light of the policy contained in this department’s letter of even number dated 25-6-2002. With the expiry of transitional phase of devolution, and with effect from July 1st, 2002, the respective Local Governments started paying salaries to such staff as borne on the schedule of their respective establishments.

After the issuance of this Department’s notification of even No. Dated 23-10-2002, inter-alia, establishing a “Pension Local Fund” in District Governments, and proscribing a procedure for regulating the said fund, the issues pertaining to sanction and payments of pension etc., to the employees of defunct Zila Councils / MCLs adjusted in District Governments have been settled. However, the employees of the govt. departments and the erstwhile Local Councils, other than those mentioned above on their adjustment in local governments, have raised questions and expressed concerns regarding the matters pertaining to their pensionary affairs. Such issues have therefore, been engaging the attention of the Government for redressal.

The employees transferred and adjusted in Local Governments fall in the following four categories:
(i) civil servants adjusted in TMAs/UAs, including the Secretaries working in erstwhile union councils, prior to devolution;
(ii) employees of erstwhile urban local councils, including the employees of education and health sectors adjusted in District Governments;
(iii) employees of erstwhile urban local councils and Zila Councils adjusted in the respective successor Local Government (TMAs) and,
(iv) employees of erstwhile urban local councils and Zila Councils adjusted in Union Administrations.

Since the pension of an employee is a valid accrued liability on the funds of the organization, it has been decided that it shall be sanctioned and paid, in the manner, as already prescribed, by the government / successor local government, respectively, for the employees as per the following procedure:
(i) The pension liability of civil servants falling in category mentioned in para 5(i) above shall be borne by the government. The TMA/UA, as the case may be, shall not be required to make pension contribution in this respect. The pension cases of such retiring civil servants shall be processed and finalized by the erstwhile respective departmental authorities, in the prescribed manner, on the basis of the last pay certificate / service statement issued to the pension sanctioning authority by the Tehsil Accounts Officer/Union Nazim, as the case may be. The P.P.O’s shall be issued by the Accountant General, Punjab / District Accounts Officer concerned.
(ii) Pensionary liabilities in respect of the employees falling in category mentioned in para 5(ii) above shall be shared proportionately between the respective successor TMA as per calculations worked out, and PPO issued by District Government in the manner prescribed in this department’s notification of even number dated 23-10-2002.
(iii) The pensionary liabilities of the employees falling in category mentioned in para 5(iii) above shall continue to be discharged out of the respective “Pension Fund” maintained under the West Pakistan Local Council (Pension) Rules, 1964, and this department’s circular No. SO-IV (LG) 5-2/81, dated 15-04-1991.
(iv) The pension contributions in respect of the employees falling in category mentioned in para 5(iv) above shall be made by the union administration to the parent successor local government i.e. District Government or the TMA, as the case may be, in respect of each employee, as prescribed in this department’s circular letter referred to para 6(iii) above.

PENSION SANCTIONING AUTHORITY:
The pension sanctioning authority in respect of civil servants, and employees of erstwhile Local Councils posted in TMAs/UAs shall remain the same as prescribed for such category of officials prior to their present postings. The sanction for encashment of LPR of civil servants posted in TMAs/UAs shall also be done by the respective authorities as prescribed for such category of officials prior to their present postings.

LEAVE SANCTION:
The grant of sanction of leave of employees posted in TMAs/UAs shall continue to be accorded under the Revised Leave Rules, 1981. The sanction of such leave shall be done by the prescribed respective departmental authorities in the erstwhile manner. Such leave shall, however, be subject to the recommendations of the Tehsil Municipal Officer concerned in case of gazette Officers, and the / Tehsil Officer concerned, and the Nazim of Union Administration, as the case may be, in case of non-gazetted employees.