Special Rules / MOU 1989 provisions Notified version of special rules 2009

1 Notified on 26.6.1989 Notified on 12.11.2009

2 For appraisals due from 1.4.1988 & thereafter Appraisals commencing from 1.12.2009 & thereafter & ending on 30.11.2010 &
thereafter

3 Area & Basic expense limit A=19% population > 10 lakhs

A=22% population > 10 lakhs B=20% population 6lakhs to 10 lakhs
B=23% population 4 lakhs to 10 lakhs C=21% population < 6 lakhs
C=24% population < 4 lakhs D=22% rural & hilly area with population up to 1.5 laks &
D=25% working in rural area Lakhs & at 1000 meters above sea level
E=26% working in deep rural area
Transitional conditions for those who are confirmed as on 12.11.2009
A B C D E
Running appraisal 22% 23% 24% 25% 26%
Next appl after 1.12.09 21% 22% 23% 24% 25%
Appraisal after 1.12.10 20% 21% 22% 23% 24%
Appraisal after 1.12.11 19% 20% 21% 22% 22%

Transitional conditions for those who are confirmed after 12.11.2009

A B C D
Running appraisal same as per special rules 1989
1st appraisal after
confirmation 22% 23% 24% 25%
2nd appraisal after
confirmation 21% 22% 23% 24%
3rd appraisal after
confirmation 19% 20% 21% 22%

4 Extra concession 55 years & above concession by 2%

expense limit for
higher age
Age Apart from these there is a more relaxed transitional condition for
A B C D E
52 years = 2% Age 50 & 51
54 years = 3% Appraisal from
1.12.2009 onwards 22% 23% 24% 25% 26%
Appraisal from
1.12.2010 onwards 21% 22% 23% 24% 24%
Appraisal from
1.12.2011 onwards 19% 20% 21% 22% 22%

Age 52
Appraisal from
1.12.2009 onwards 23% 24% 25% 26% 27%
Appraisal from
1.12.2010 onwards 21% 22% 23% 24% 25%
 Appraisal from
1.12.2011 onwards 19% 20% 21% 22% 22%

Age 53
Appraisal from
1.12.2009 onwards 23% 24% 25% 26% 27%
Appraisal from
1.12.2010 onwards 22% 23% 24% 25% 26%
Appraisal from
1.12.2011 onwards 21% 22% 23% 24% 24%

Age 54
Appraisal from
1.12.2009 onwards 24% 25% 26% 27% 28%
Appraisal from
1.12.2010 onwards 22% 23% 24% 25% 26%
Appraisal from
1.12.2011 onwards 21% 22% 23% 24% 24%

5 Normal grade increment (NGI):

Provided he works within the prescribed cost ratio applicable to him unless the
same has been withheld as a result of penalty imposed under section 39 of staff No change
regulations.

6 Annual Remuneration:
Means Basic pay, DA, special pay, personal pay,& all other allowances & non profit Only change as per 2009 offer is mobile phone reimbursement is included.
sharing ex-gratia bonus paid to a DO during the appraisal yr & also includes
expenses reimbursed towards travelling, residential telephone, insurance premium
& tax on vehicles. Also PLLI paid to him included later.

7 Table of Disincentives:
a) 30% cut in CA a) no NGI
b) 50% cut in CA b) No NGI + one decrement
c) 60% cut in CA+ No NGI
d) 80% cut in CA+ No NGI c) No NGI + two decrements
e) 60% cut in CA + no NGI+ one decrement
f) 80% cut in CA = no NGI + One decrement

Up to 2% increase no punishment, punishments Up to 2% excess cost no punishment, penalties to accumulate in three years
spread to 5 successive years & according to variation in punishments imposed on variation of cost ratio from 2% to 4%, 4% & above, cost ratio from
cost ratio with slabs 2% to 5%, 6% to 8%, > 9% , & for 32% to 35%,& > 35%
cost ratio 35% to 40% & > 40%

8 Ad-hoc annual remuneration:

For the purpose of calculating cost ratio for arriving Concept of ad-hoc annual remuneration done away with.
disincentives alone the annual remuneration is taken as
12 times the salary as of the first day of appraisal.

9 Deferment of disincentives:
Disincentives other than no increment shall not be awarded for the first year but Disincentives other than no increment shall not be awarded for the first year but shall be
shall be kept in abeyance until after the expiry of the succeeding year provided the kept in abeyance until after the expiry of the succeeding year provided the DO has not
DO has not exceeded the prescribed expense limit for a continuous period of not exceeded the prescribed expense limit for a continuous period of not less than 10 years
 less than 5 years immediately preceding the such relevant app year or not exceeded
3 continuous years if his service is less than 5 years.
Where the DO conforms to the prescribed expense limit in the succeeding year, the
increment of the preceding year which has been kept in abeyance shall be released
from the relevant due date.
Where the DO exceeds the prescribed limit the succeeding year also such deferred
no increment will be awarded from the relevant due date and all excess
remuneration paid on account of deferment will be recovered from salary.
The year for which such no increment is restored will not be treated as successful
year for computing 5 continuous years later for allowing the benefit again.
10 Reinstatement of current decrements:
If a DO works within the basic expense limit for the relevant year and the combined
expense limit for that and two immediately preceding years is also within such
limit, current decrements may be reinstated subject to future cost being within
ceiling.
OR
If a Do works within the basic expense limit in each of the three successive
appraisal years, current decrement pertaining to one year may be reinstated from
the relevant date on which the last appraisal was due.
This reinstatement is permissible only three times during the entire period of
service as DO.
Reinstatement is to be earned within five appraisals from the date it has suffered.
Is subject to EB rules.
11 Termination:
where the ad-hoc annual remuneration of any DO in the Relevant year exceeds
50% of eligible premium of that year and the aggregate of the ad-hoc remuneration
in the relevant year and the 2 appraisal years immediately preceding the relevant
year exceeds 50%of the aggregate of the eligible premium in those three years, his
services shall be liable to be terminated.
OR
Basic pay falls below the minimum of the scale on the second occasion
immediately preceding the relevant app year.
Where the DO conforms to the prescribed expense limit in the succeeding year, the
increment of the preceding year which has been kept in abeyance shall be released from the
relevant due date.
Where the DO exceeds the prescribed limit the succeeding year also such deferred no
increment will be awarded from the relevant due date and all excess remuneration paid on
account of deferment will be recovered from salary.
The year for which such no increment is restored will not be treated as successful year for
computing 10 continuous years later for allowing the benefit again
existing provision as in special rules 1989 to continue
If the cost ratio in an appraisal year is more than 38%
of the remuneration in that and the immediately preceding appraisal year to the
aggregate of the sfyp income in those two appraisal years exceeds 38%his
Services shall be liable to be terminated.
OR
Basic pay falls below the minimum of the scale on the second occasion
Transitional conditions for termination
1) if the annual remuneration in the first appraisal year commencing after the date of
publication of these rules i.e. 12.11.2009 exceeds 50% of the eligible premium in that year
and the aggregate of the annual remuneration in the first appraisal year and the two
appraisal years immediately preceding the first appraisal year exceeds 50% of the aggregate
eligible premium of those three years his services shall be liable to be terminated.
2) if the annual remuneration in the second appraisal year commencing after the date of
publication of these rules i.e. 12.11.2009 exceeds 45% of the eligible premium in that year
and the aggregate of the annual remuneration in the first appraisal year and the two
appraisal years immediately preceding the first appraisal year exceeds 50% of the aggregate
eligible premium of those three years his services shall be liable to be terminated
3) if the annual remuneration in the third appraisal year commencing after the date of
publication of these rules i.e. 12.11.2009 exceeds 40% of the eligible premium in that year
and the aggregate of the annual remuneration in the first appraisal year and the two
appraisal years immediately preceding the first appraisal year exceeds 47.50% of the
aggregate eligible premium of those three years his services shall be liable to be terminated.
12 Provident fund:
As per rule 8 of LIC of India DO's rules 1986 where the past decrements or current as per rule 8 of LIC of India DO's rules 1986 where the past decrements or current
decrements are restored or reinstated to a development officer from the relevant decrements are restored or reinstated to a development officer from the relevant appraisal
appraisal date the corporation shall contribute to the PF established by it a date the corporation shall contribute to the PF established by it a maximum amount of 10%
maximum amount of 8 1/3% of the aggregate of the basic of the aggregate of the basic pay comprised in such decrements in relation to the period for
pay comprised in such decrements in relation to the period for which those which those decrements have been restored or reinstated.
decrements have been restored or reinstated.
13 Special cases:
The MD on recommendation of the ZM , review any case of a DO after the date of The MD may review deserving cases, If the cost ratio does not exceed 15% in each of the two
reduction in basic pay in pursuance of the table of disincentives and grant such consecutive preceding years and he has otherwise carried out his official duties satisfactorily.
relief with regards to the merit of the case, but not exceeding the relief that would
have been admissible to him had he qualified under any of the said rules for
reinstatement.

14 Incentives:
IB approved under any scheme approved by the corporation may be allowed to a
DO for any preceding year if his cost ratio with reference to his annual
remuneration in that year does not exceed 20% of the eligible premium of that year.
The incentive bonus may be allowed to a DO for any preceding year under any scheme
approved by the corporation from time to time.
.

15 Promotion
Any DO considered suitable may be promoted as ABM(S) or AAO in accordance Same provision continues
with rule 7 of staff rules

16 Re-appointment of terminated DO
if a DO who is terminated on cost norms, has completed If a DO who is terminated on cost norms, has completed 7 years of service in class II on the
10 years of service in class II on the date date of such termination and has not completed 55 years of age, he shall be eligible for
of such termination and has not completed 55 years of appointment in the service of the corporation to do administrative work in class III either as
age , he shall be eligible for appointment in the service assistant or RC in accordance with such qualification and suitability.
of the corporation to do administrative work in class III either as assistant or RC in provided that notwithstanding break in service as a consequence of termination his service in
accordance with such the corporation shall be deemed to be continuous for the purpose of leave, and also for the
qualification and suitability. purpose of gratuity and PF if he has not received the same or if received repays the same to
the corporation.

17 A Development Officer has to being in a minimum premium as given below to work A Development Officer has to being in a minimum premium
within expense limit: as given below to work within expense limit
A 4.54 times of annual remuneration A 5.26 times of annual remuneration
B 4.35 times B 5.00 times
C 4.16 times C 4.76 times
D 4.00 times D 4.55 times
E 3.84 times Now as per GOIB 2007 the development officer has to bring in a minimum of 6.66 times of his
Here the development officer has to bring in a minimum of 5 times of his annual annual remuneration to qualify for incentive bonus.
remuneration to qualify for incentive bonus.