O/o the Commissioner of Municipal Administration,

Chepauk, Chennai-5.

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

CIRCULAR

Sub: Establishment – Municipal Employees – Settlement

of Terminal benefits – Abnormal delay – Avoidance
Instructions – Issued.
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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 retiring

employees, 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.
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
will be viewed seriously and lead to initiation of disciplinary action against
persons responsible.

Sd/-Niranjan Mardi,
Commissioner of Municipal
Administration.
To
All Corporation Commissioners.(except Chennai)
All Municipal Commissioners
All Executive Officers, Third Grade Municipalities.

Copy to All Regional Directors of Municipal Administration.