When appointed by nomination, the contractual salary should be the person’s last drawn salary at the point of retirement minus the basic pension, it said.
Further, the draft guidelines cap re-appointment to not beyond five years after the age of superannuation of 60 years. No increments or dearness allowance shall be permitted during the term of the contract, it added.
“It has been felt that there is a need to have uniformity to regulate salary of such contractual appointment of retired Central Government employees,” the Department of Expenditure (DoE) said.
The issue came up as instructions from the Department of Personnel and Training (DoPT) did not apply in case of appointments where the person had attained superannuation.
At the outset, the guidelines state that appointment by way of nomination based on the credentials of past service should be kept to the bare minimum and only in justified exigencies where the public interest is served by the appointment of the retired employee.
In cases where the appointment is made from the open market under the General Financial Rules 179-196, the remuneration will be as per the terms and conditions of the contract and there will be no deduction of pension, it said.
However, the term of appointment shall not ordinarily go beyond the five years after the age of superannuation of the appointee in these cases as well, the memorandum said, unless special provisions are made by the Appointments Committee of the Cabinet or the DoPT or the DoE.