Central
Section 8 of The Former Secretary of State Service Officers (Conditions of Service) Act, 1972
Pension payable to former Secretary of State Service officers in Indian currency only.
- (1)No former Secretary of State Service officer shall be entitled, or be deemed ever to have been entitled, to claim,--
- (a)pension in sterling; or
- (b)that his pension shall be paid outside India; or
- (c)where his pension was expressed in sterling or a fixed sterling minimum was applicable in respect of the pension payable to him, that his pension shall be computed in the rupee equivalent of the amount fixed in sterling at a rate of exchange exceeding the rate of rupees thirteen and one-third to the pound sterling: 1[Provided that in relation to every former Secretary of State Service officer who, having been in service on the 1st day of February, 1921, and domiciled in India on that date, is entitled immediately before the appointed day to claim his pension computed in the rupee equivalent of the amount fixed in sterling at a rate of exchange of rupees fifteen to a pound sterling, clause (c) shall have effect as if for the words thirteen and one-third, the word fifteen were substituted: Provided further that every former Secretary of State Service officer whose pension was expressed in sterling or in respect of whose pension a fixed sterling minimum was applicable, and who, immediately before the appointed day, is a foreigner having taken up permanent residence outside India, shall, so long as he continues to be a foreigner permanently residing outside India, be allowed to convert the annuity of rupees thirteen thousand three hundred and thirty-three and one-third or the annuity actually payable to him in rupees, whichever is less, into pound sterling at the rate of rupees thirteen and one-third to a pound sterling, and the annuity so converted into pound sterling shall be paid outside India. Explanation 1.--Nothing contained in the foregoing proviso shall be deemed to entitle any former Secretary of State Service officer to claim conversion of amounts representing the annuity or the commuted value thereof, already drawn in rupees before the commencement of the Former Secretary of State Service Officers (Conditions of Service) Amendment Act, 1975 (24 of 1975), into pound sterling. Explanation 2.--In this sub-section, the expression foreigner means a person who is not a citizen of India.]
- (2)Notwithstanding any judgment, decree or order of any court, every former Secretary of State Service officer 2[[not being an officer to whom the first proviso or the second proviso to sub-section (1) applies]] who has been paid the rupee equivalent or, as the case may be, the pound sterling equivalent of his pension by calculating such pension with reference to a rate of exchange exceeding the rate of exchange of rupees thirteen and one-third to the pound sterling, shall refund to the Central Government or, as the case may be, the State Government, the sum by which the amount paid to him exceeds the amount which would have been payable to him if the calculation had been made at the rate of exchange of rupees thirteen and one-third to the pound sterling and the Central Government or the State Government may set off, in such manner as it may deem fit, the amount required to be so refunded to it by any such officer against any sum (including pension) which is or which may become due from that Government to such officer.
- (3)For the removal of doubts, it is hereby declared that the provisions of sub-sections (1) and (2) shall apply to a former Secretary of State Service officer who is holding or has held the office of the Chief Justice or other Judge of the Supreme Court or a High Court, the Comptroller and Auditor-General of India, the Chairman or other member of the Union or a State Public Service Commission or the Chief Election Commissioner as they apply to other former Secretary of State Service officers.
Summary
- Former Secretary of State Service officers cannot claim their pension in British pounds (sterling) or demand that it be paid outside of India, unless they meet specific exceptions.
- The standard exchange rate for computing pensions that were expressed in pounds is fixed at thirteen and one-third rupees per pound sterling.
- Officers who were in service and lived in India on the 1st day of February, 1921, can use a higher exchange rate of fifteen rupees per pound sterling.
- Foreigners (not Indian citizens) who lived permanently outside India before the appointed day can convert their pension up to thirteen thousand three hundred and thirty-three and one-third rupees, or their actual pension, whichever is smaller, into British pounds at thirteen and one-third rupees per pound and receive it outside India.
- Anyone who received an exchange rate higher than thirteen and one-third rupees per pound, unless they qualify for the exceptions, must refund the excess money to the government, which can deduct it from their future payments.
- These currency rules apply to all such officers, even if they served in high offices like the Chief Justice or Judges of the Supreme Court or High Courts, the Comptroller and Auditor-General, members of Public Service Commissions, or the Chief Election Commissioner.
Practical examples
1Alistair, a British national and former Secretary of State Service officer, permanently moved to London in August 1972 before the appointed day. Under the second exception, he converts his annual Indian pension of twelve thousand rupees into British pounds at the rate of thirteen and one-third rupees per pound, which allows him to receive nine hundred pounds sterling paid directly to his London bank account.
2John was paid his pension using an incorrect exchange rate of ten rupees per pound, which gave him more rupees than the legal rate of thirteen and one-third rupees per pound. The government discovers this error and deducts one thousand five hundred rupees from his next pension payment to recover the overpayment.
3Arjan, who retired as a High Court Judge, demands that his pension be paid in British sterling in London. The government refuses, explaining that under this section, even high-ranking judges must have their pensions paid in Indian rupees within India.
FAQ
1. What is the general rule for the currency and location of pension payments?
Pensions must be paid in Indian currency and within India only.
2. What is the standard exchange rate for computing sterling pensions under this section?
The standard exchange rate is thirteen and one-third rupees to the pound sterling.
3. Who qualifies for the special fifteen rupees per pound exchange rate?
An officer who was in service on the 1st day of February, 1921, and was domiciled in India on that date.
4. Who is considered a foreigner under this section?
A foreigner is defined as any person who is not a citizen of India.
5. Does this section apply to a retired Chief Justice of the Supreme Court?
Yes, it explicitly applies to former officers who held high positions, including the Chief Justice or other Judges of the Supreme Court or High Courts.
Test yourself
1.What is the standard exchange rate for computing pensions expressed in sterling under Section 8?
2.What is the exchange rate for an officer who was in service and domiciled in India on the 1st day of February, 1921?
3.What is the maximum annuity amount a foreign-resident foreigner can convert into sterling under the second proviso?
4.How does the section define a "foreigner"?
5.What must an officer do if they were paid pension at an exchange rate higher than thirteen and one-third rupees per pound?
6.Which high-ranking public official is explicitly mentioned as being subject to these currency rules?