Pension leave allowances and provident fund.

(1) If an officer or servant of a Municipality is a person in the service of Government, the Municipality shall-- (a) if his services are wholly lent to it, contribute to his pension, gratuity and leave allowance in accordance with the rules for the time being governing his conditions of service under Government; and (b) if it devotes a part of his time to the performance of duties on behalf of a Municipality, contribute to his pension, gratuity and leave allowances in such proportion as may be determined by the Administrator.

(2) In case of an Officer or servant of the Municipality who is not a Government official the Municipality may subject to such conditions as the Administrator may by rules prescribe, grant him leave allowance or acting allowance and-- (a) grant him gratuity on retirement; or (b) establish and maintain a provident or annuity fund and compel him to contribute thereto; or (c) where such a fund has not been established or where such fund has been established but he has been contributing thereto for less than the whole of his service grant him a pension or gratuity or purchase or arrange for annuity for him on his retirement.

(3) If the sanction of the Administrator, Municipality may grant a compassionate gratuity or grant or arrange for the purchase of an annuity to any Officer or servant injured, otherwise than by reason of his own default in the execution of his duty or where such injury results in his death, to the widow, children or other relatives dependent on him.

(4) Where an officer or servant dies in circumstances other than those referred to in sub-section (3), the Municipality may, with the sanction of the Administrator, grant a compassionate gratuity to the widow, children or other relatives dependent on him.

(5) A pension, gratuity, or annuity shall not exceed the sum to which under any rule or general or special order, made by the Central Government, such officer or servant or his family would be entitled if the service had been service under Government.

(6) Nothing in this Regulation shall be deemed to prohibit the establishment of provident fund for officer and servants of the Municipality at such rates and under such conditions as the Municipality may, by bye-laws fix and apportion for such performance.