As per the CCS (Pension) Amendment Rules, 2025, if a PSU employee is dismissed or removed after absorption due to misconduct, they will lose not just PSU benefits but also pension benefits accrued under the government service.
The amended Rule 37(29C) is as follows:
“… the dismissal or removal from service of the public sector undertaking of any employee after his absorption in such undertaking for any subsequent misconduct shall lead to forfeiture of the retirement benefits for the service rendered under the Government also and in the event of his dismissal or removal or retrenchment the decision of the undertaking shall be subject to review by the Ministry administratively concerned with the undertaking. For the purpose of this Rule, the relevant provisions of Rule 7 and 8 read with Rule 41 and Rule 44(5)(a) &(b) would be applicable analogous as is applicable to a Government servant under these Rules”
