The Kerala Municipality (Employees Death-cum-Retirement Benefit) Rules, 1996

S. R. O. No. 1/97.—In exercise of the powers conferred under sub-section (1) of Section 222 of the Kerala Municipality Act, 1994 (20 of 1994) read with Section 565 thereof, the Government of Kerala hereby make the following rules, namely:—RULES

1. Short title and commencement.—

(1) These rules may be called the Kerala Municipality (Employees Death-cum-Retirement Benefit) Rules, 1996,

(2) They shall come into force at once.

2. Definitions:— In these rules unless the context otherwise requires,—

(a) 'Act' means the Kerala Municipality Act, 1994 (20 of 1994);

(b) 'Central Pension Fund' means Central Pension Fund constituted under Rule 6;

(c) 'Director' means Director of Municipal Administration ;

(d) 'Local Fund Audit Director' means the Local Fund Audit Director appointed by Government under Section 3 of the Kerala Local Fund Audit Act, 1994;

(e) 'Employee' means an employee in the regular establishment of a Municipality;

(f) 'Municipality' means aTown Panchayat, a Municipal Council or aMunicipal Corporation constituted under Section 4;

(g)'Municipal Pension Fund' means Municipal Pension Fund constituted under Rule 10; (h) 'Secretary' means Secretary of a Municipality;

(i) 'Salary' means the total amount received by an employee per month as pay and allowances;

(j) 'Section' means a section of the Act;

(k) Words and expressions used and not defined in these rules, but defined in the Act shall have the meanings respectively assigned to them in the Act.

3. Applicability.—These rules shall apply to all categories of employees under the regular establishment of Municipality:

Provided that these rules shall not apply to the employees of the Municipalities of former Travancore area and the city Corporation of Thiruvananthapuram for whom provision is available for payment of pension from the Government Fund.

4. Death-cum-Retirement Benefit.— The provisions in Part III of the Kerala Service Rules, 1959, as amended from time to time, shall apply mutatis mutandis, in the matter of Death-cum-Retirement Benefits, to an employee governed by the pension scheme under these rules.

5. The authority to sanction pension.— The Local Fund Audit Director shall be the authority competent to sanction pension benefits to an employee under these rules.

* Published in K.G. Ex. No. 835 dt. 11-6-2001, asG.O.(P) No. 137/2Q01/LSGD.

6. Central Pension Fund.— (1) A fund named Central Pension Fund shall be opened on the control and supervision of the Director and shall be operated in the Savings Bank Account of the Government Treasury or in the Savings Bank Account of the Nationalised Banks for the payment of pension under these rules and the amount received under Rule 8 shall be credited to this fund and the amount necessary for payment of pension benefits sanctioned under Rule 9 shall be transferred from this fund from time to time to the Municipal Pension . Fund constituted under Rule 10.

(2) The amount in the Central Pension Fund other than that necessary for meeting daily expenses may be invested as fixed deposit in the Treasury or Nationalised Bank for getting more interest and the interest so earned shall be credited to the Central Pension Fund.

(3) The Central Pension Fund shall not be used for any other purposes except with the sanction of the Government.

(4) The accounts and registers of the Central Pension Fund shall be in the form specified by the Director of Local Fund Audit.

7. Liability of the Municipality.— f 1) The Municipalities shall meet the financial liability arising out of the implementation of the pension schemes under these rules.

(2) Fifteen percent of the total monthly emoluments of each employee shall be remitted to the Central Pension Fund as pension contribution.

8. Method of remittance of pension contribution.— (!) The Secretary shall withdraw the pension contribution at the rates mentioned in Rule 7 along with the salary bill for the month concerned and send it before the 2Mb of that month by demand draft drawn in favour of the Director for crediting it in the Central Pension Fund.

Note:— The amount of salary bill shall be that including the pension contribution amount of the employees. The total amount in the salary bill shall be withdrawn in whole and the actual salary to be paid to the employee alone shall not be withdrawn.

(2) The pension contribution of an employee shall, if his salary was not included in the bill for a month and was disbursed to him by a drawing a bill later or, if it becomes necessary to pay his salary as arrears, be included in that bill itself and the pension contribution shall be remitted to the Central Fund as provided in sub-rule (1), within fifteen days of drawing that bill.

(3) A certificate, stating that the salary of all eligible employees has been passed and showing the bill amount excluding the pension contribution, shall be enclosed along with the demand draft sent as per sub-rules (1) and (2). The Certificate shall be in the form appended to these rules.

(4) The Municipality shall, if the demand draft is not sent to the Director within the time limit specified in sub-rules (1) and (2), be liable to pay interest for the defaulted period at the rates in force for the Savings Bank Deposits.

(5) The Director shall, in all cases where interest is to be recovered as per sub-rule (4),direct the Secretary to send the demand draft for the interest amount also and the

Secretary shall, alter receiving such direction remit the interest also along with the pension contribution in the Central Pension Fund, as specified in sub-rule (1).

(6) if the pension contribution and interest is not remitted within the specified time, action may be taken to recover the amount as provided under Section 309 of the Act.

9. Procedure, for sanctioning pension.— (1) The Secretary shall prepare the pension- papers one year before the retirement of an employee in accordance with the provisions in Part III of the Kerala Service Rules, 1959 and in the specified form and send the same to the Local Fund Audit Director with relevant documents. The employee shall, in the application for pension indicate the Municipality from which he desires to draw pension and gratuity. The Local Fund Audit Director shall, after verifying the eligibility under Part 111 of the Kerala Service Rules, 1959, authorise the withdrawal of gratuity and prepare three copies of the pension payment order.

(2) One copy of the pension payment order prepared under sub-rule (1) shall be sent to the pensioner and another copy shall be sent to the Director of Municipal Administration and the remaining copy shall be sent to the Secretary of the Municipality from where the pensioner desires to draw the pension benefits.

(3) The Director shall, on receipt of the order sanctioning pension, withdraw from the Central Pension Fund, the total amount required for the payment of gratuity, commutation, pension and arrears including monthly pension for one year sanctioned to the pensioner and forward the same to the Secretary of the concerned Municipality by demand draft.

(4) The Secretary concerned shall obtain and keep the life certificate of the pensioners allotted to a Municipality for continuing the payment of pension and shall, before the end of the month February every year apply to the Director, along with the schedule of pensioners, for sanctioning the amount required and the Director shall sanction the amount from the Central Pension Fund and give the same to the Secretary before 31st of March.

10. Municipal Pension Fund.— The Secretary shall open a Savings Bank Account in the name Municipal Pension Fund in Government Treasury or in Nationalised Bank for the payment of pension benefits to pensioners and credit the amount sanctioned by the director, under sub-rules (3) and (4) of Rule 9 for this purpose to the Municipal Pension Fund. The Amount in this fund shall not be used for any purpose other than the payment of pension benefits.

11. Disbursement of pension.— (1) The Secretary shall, within fourteen days of receipt of the pension payment order from the Local Fund Audit Director, and Fund from the Director, give the pension benefits to the pensioner, from the Municipal Pension Fund, and forthwith intimate Director of the fact of payment of the amount. The pension for the succeeding months shall be paid by cheque or in cash on a date not beyond the first week of next month. The Secretary shall, if any pensioner requests in writing to pay his pension by money order, send it accordingly.

(2) The date of withdrawal of pension commutation by the pensioners and the details of total amount deducted from the monthly pension shall, in all cases where pension commutation is sanctioned, be reported to the Director and the amount deducted from the pension fund may be retained in the Municipal Fund and the amount so retained in the Municipal pension Fund shall be deducted when the next year's allotment is demanded and the Director shall sanction the allotment only after deducting such amount.

(3) The Secretary shall follow the procedure laid down in the Kerala Treasury Code and the Kerala Financial Code in the case of payment of pension and gratuity. The duty of the Secretary in this regard shall be analogous to that of a Treasury Officer entrusted with the disbursement of pension benefits.

(4) The registers and forms for the time being in force in Government Treasuries shall be used for the disbursement of pension and gratuity under these rules.

12. Administrative expenditure of pension scheme.— The Director shall spend the amount required for administrative purposes like establishment, expenditures, travelling allowance, stationery, furniture, contingent expenditure etc. of the Municipal pension section of the Municipal Administration Directorate first from the subject allotment of the department and after the year is over, the total amount so spent shall be remitted to the Government Fund from the Central Pension Fund.

13. Audit.— Local Fund Audit Director and the persons nominated by him shall be auditors of the Central Pension Fund and the Municipal Pension Fund.

14. Closing of Funds.— The Government may at any time close the functioning of the fund constituted under these rules after making alternate arrangements for granting pensionary benefits to the employees to whom these rules are applicable and may utilise the balance amount remaining in that fund at that time as they may decide.

15. Persons coming within the purview of the Kerala Municipal Employees Death-cum-Retirement Benefit Rules, 1957.— All those who come within the purview of the Kerala Municipal Employees Death-cum-Retirement Benefit Rules, 1957 shall be deemed to have come within the purview of those rules from the date of coming into force of these rules.

16. Interpretation.— If any doubt or difficulty arises in the interpretation of these rules, the question shall be referred to Government and decision of Government thereon shall be final.


[See Sub-rule (3) of Rule 8] CERTIFICATE

It is hereby certified that the salary/arrear salary of...................(Number) employees 


for the month of...............................................has been passed and the total amount of

the bill excluding their pension contribution is Rs..................................................



                                                                                                          (sd.) Secretary,


        By order of the Governor,

Place :