The letter writteny the AUAB to the Secretary DOT on the above subject is reproduced below.

ALL UNIONS AND ASSOCIATIONS OF BSNL (AUAB)
No: UA/2018/56 26.12.2018

To,
Ms. Aruna Sundararajan,
Secretary, Telecom,
Sanchar Bhawan,
20, Asoka Road, New Delhi, 110001

Respected Madam,
Sub: – Pension Contribution on actual basic pay instead of maximum of the pay scale – early reply to the
clarification sought by Department of Expenditure, Ministry of Finance on the methodology – reg.
The All Unions and Associations of BSNL (AUAB) extremely grateful to your goodself and DoT for making a
very positive recommendation to Department of Expenditure, Ministry of Finance for making Pension
Contribution on actual basic pay instead of maximum of the pay scale for the BSNL employees absorbed
from DoT, as assured by the Hon Minister. DoT made the recommendations based on the DoP&T Order No.
2/34/2008-Estt. (Pay II) dated 19.11.2009 issued in super session of OM dated 15.05.2000 as per the
recommendations of 6th CPC. Government revised order relating to pension contribution payable w.e.f
01.01.2006, the date of implementation of 6th CPC. The pension to the employees absorbed in BSNL is paid
by the Government vide provisions under Rule-37 A and the pension contribution is paid under the
provisions of FR 116.
It is understood that last week, Department of Expenditure sought some clarifications in this regard on the
methodology of payment of pension contribution by BSNL and the effective date. Since the revision of pay
scales has taken place w.e.f. 01.01.2007 in BSNL, naturally the date of effect of the above OM will be from
01.01.2007. Considering the financial condition of BSNL, the excess payment of about Rs.2,200 Crores paid
by BSNL since 2007 as Pension Contribution may be refunded to BSNL.
A suitable reply in this regard may be sent to Department of Expenditure immediately, facilitating DoE to
take a positive decision in this regard at the earliest as assured by the Hon Minister.
Thanking you