No pension for government employees who resign rules Supreme Court

New Delhi, Dec 06: In an important verdict, the Supreme Court has held that an employee would be ineligible for pension when he resigns. The court noted that under the Central Civil Services Pension Rules, an employee would not be eligible for pension when he resigns as he forfeits his past service.

The court was making a distinction between voluntary retirement and resignations which impacts pensionary benefits under the Rules. The court was deciding a case of an employee of the BSES Yamuna Power Limited, who had resigned.

The court held that the decision to resign results in the legal consequences that flow from a resignation under the applicable provisions. These consequences are distinct from the consequences flowing from voluntary retirement. The two may not be substituted for each other based on the length of an employee's tenure, the Bench also held.

The rules state that an employee forfeits his past service upon resignation and this disentitles him for pension. However an employee who completes 20 years of service can opt for voluntary retirement and this would entail him or her for pensionary benefits.