38. Compensation pension :-
(1) If a Government servant is selected for discharge owing to the
abolition of his permanent post, he shall, unless he is appointed to another
post the conditions of which are deemed by the authority competent to
discharge him to be atleast equal to those of his own, have the option-
(a) of taking compensation pension to which he may be entitled
for the service he had rendered, or
(b) of accepting another appointment on such pay as may be
offered and continuing to count his previous service for pension.
(2) (a) Notice of atleast three months shall be given to a Government
servant in permanent employment before his services are
dispensed with on the abolition of his permanent post.
(b) Where notice of atleast three months is not given and the
Government servant has not been provided with other
employment on the date on which his services are dispensed
with the authority competent to dispense with his services may
sanction the payment of a sum not exceeding the pay and
allowances for the period by which the notice actually given to
him falls short of three months.
(c) No compensation pension shall be payable for the period in
respect of which he received pay and allowances in lieu of
notice.
(3) In case a Government servant is granted pay and allowances
for the period by which the notice given to him falls short of
three months and he is re-employed before the expiry of the
period for which he has received pay and allowances he shall
refund the pay and allowances so received for the period
following his re-employment.
(4) If a Government servant who is entitled to compensation
pension accepts instead another appointment under the
Government subsequently becomes entitled to receive a
pension of any class, the amount of such pension shall not be
less than the compensation pension which he could have
claimed if he had not accepted the appointment. [(5) The sanction of compensation pension under this rule shall
be subject to Rule 45