The Union Cabinet has approved a pension payment plan for the employees of Mahanagar Telephone Nigam Limited (MTNL). The pension payment plan will lead to an annual pay out of Rs 5 billion.
Under the approved plan, all categories (Group A, B, C and D) of employees of the government absorbed in MTNL and who have opted for combined service will be extended similar pension benefits as available to the absorbed employees of Bharat Sanchar Nigam Limited (BSNL). The government will undertake necessary amendments in Rule 37-A of CCS (Pension) Rules, 1972 to include MTNL?s employees in the ambit of pension benefits available to BSNL employees. Further, adjustments in respect of government pension liability previously discharged by MTNL will be completed within a period of three months.
The Union Cabinet?s move is expected to resolve the long-pending MTNL pension issue. The employees union of MTNL had earlier agreed to the government?s proposal to bring parity of pay scales with their counterparts in BSNL. This will be done at the time of next wage revision to be undertaken in 2017. In exchange, the government will finance the pension burden of MTNL partially.
Currently, MTNL employees get higher pay compared to BSNL employees. The liability of the Government towards pension of absorbed employees of MTNL will be restricted to the equivalent scales of similarly placed employees in BSNL. In case, MTNL decides to pay pension on the basis of existing pay scales, the liability arising from the same shall be borne by MTNL.
