Subject: Implementation of Governmentís decision on the recommendations of the Fifth Central Pay Commission relating to retirement benefits to pre-1986 pensioners - clarifications regarding personal pension.
The undersigned is directed to refer to this Departmentís O.M. Nos. 45/86/87-P&PW(A) (pt. II) dated the 27th October, 1997, 24th December 1997 and 10th February, 1998 wherein the criteria to be adopted by the Pension Sanctioning authorities while revising the pension of pre-1986 retirees have been detailed. In the course of implementation of the above orders, clarifications are still being sought by Ministries/ Departments of Government of India about regulation of personal pension sanctioned to Government servants who retired between 31.3.1985 and 31.12.1985. It is clarified that:
Personal pension was given as an interim measure to compensate the loss that occurred where the amount of pension calculated after the merger of DA upto AICPI 568 in pay resulted in loss as compared to the total amount of pension calculated on emoluments after merger of DA upto AICPI 320 with graded relief thereon. However, in the wake of implementation of recommendations of the V CPC bringing the pre-1986 pensioners notionally on the revised scale of pay w.e.f. 1.1.86, on the same criteria as for serving employees on that date, the pay scale included merger of DA upto AICPI 608. As per O. M of 10.2.98 issued by this Department, para 9 clearly states that personal pension paid may be adjusted against the arrears. Personal Pension will need to be discontinued w.e.f 1.1.1996.
The above clarifications may be taken due note of while finalising the cases of revision of pension/ family pension of pre-1986 and pre 1996 pensioners/ family pensioners.
This issues with the concurrence of Ministry of Finance, Department of Expenditure vide U.O. No. 715/EV/2000 dated 31.8.2000