Clarification regarding one year extension in service.

Clarification regarding one year extension in service.

Clarification regarding one year extension in service.

                   In connection with the Letter No.22/ 2/2012-3FP.2/475 Dated:08-10-2012 issued by Government of Punjab, Department of Finance,  some departments of the Punjab Government giving a one-year extension in service, certain clarifications were being sought from the government. Because many departments were facing various kinds of problems during the one year extension given to employees, such as whether to deduct the GPF or not, whether to deduct the GIS or not and so on. In view of the difficulties faced by the departments, the government issued a clarification by letter no. 22/2/2012-3FP2/43 dated 22-01-2013 as described under:-

1. Employees whose General Provident Fund deduction has been stopped due to less than 6 months period before the date of retirement and have taken extension in service, Their deduction of General Provident Fund will again start from the month of January 2013. There will be no recovery of the already stopped deduction. The deduction will again stop prior to six months from the date of retirement.
2. Employees whose services have been extended by one year, they can withdraw 90% of their General Provident Fund as per instructions issued by letter no.2/3/90-6FPP3/6656 dated 27-09-2004. Instead of this, they are also entitled to refundable and non-refundable advances.
3. Employees who had withdrawn 90% amount from their GPF, they will not have to redeposit the amount already withdrawn by them on taking one year Extension in service.
4. During the extended period of service, interest on the amount under GPF will be given as per rules.
5. Deduction of GIS of an employee will continue on availing extension of one year of service and there will be no recovery of the previous period but if a deduction is pending then it will have to be deducted. Instead of this benefits will also be admissible if death occurs during the extension in service and saving fund will be payable as per retirement year's table.
6. Annual increments will be given during the period of extension in service.
7. Extension in service shall also be given to those employees against whom an inquiry or court case or vigilance inquiry or any personal court case is perusing if they are giving an option in this regard as per letter dated 08-10-2012.
8. Pay fixed after promotion during the extended period of service shall also be considered as the last pay drawn for the purpose of pensionary benefits. Also, an extended year shall also be considered as qualifying service for pension.
9. An employee will earn leave during the extended period of service and can avail leave which is due to him.
10. Commutation of pension will be calculated as if an employee is retired at the age of 59 or 61 years whichever is applicable.
11. On promotion during the extended period of service, an employee shall have only a single option to fix his pay from the date of the promotion. The remaining provisions will continue as before.
12. An employee is also entitled to 8,16,24,32 or 4,9,14 years Assured career Progression scheme during extension in service.

Click to download letter no. 22/2/2012-3FP2/43 dated 22-01-2013 

Extension in Service