Retirement Benefits

Revision of Pension

NO. 45/86/97-P&PW(A)-Part-I
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Pension & Pensionersí Welfare
Lok Nayak Bhawan, Khan Market,
New Delhi
Dated the 18th October, 1999
OFFICE MEMORANDUM
Implementation of Governments decisions on the recommendations of the Vth Central Pay Commission - Revision relating to pension/ commutation of pension.
  1. In terms of the provisions contained in para 9 of this Departmentís Office Memorandum of even number dated 27th October 1997, the average emoluments of those Government Servants who had opted to come over to the revised scales of pay and had retired within a period of 10 months from the date of coming over to the revised scales were to be calculated by taking into account the following:

    1. For the period during which pay was drawn in the pre-revised pay scales:
      Basic pay plus actual Dearness Allowance and the first and second instalments of Interim Relief appropriate to the basic pay at the rate in force on January 1, 1996 drawn during the relevant period; and

    2. For the period during which pay was drawn in the revised pay scales:
      Basic pay in the revised pay scale

  2. Government had received a large number of representations pointing out that, as a result of calculation of the pension in the manner indicated above, Government servants who had retired within a period of 10 months of coming over to the revised scales of pay with effect from January 1, 1996 were entitled to a pension lower than that admissible to those who retired prior to January 1, 1996 from the same post and at the same stage of pay in the pre- revised pay scales. The Staff Side on the JCM National Council had also taken up this issue in the JCM Standing Committee.

  3. Government has carefully considered these representations. The President is now pleased to decide that the provisions contained in para 9 of this Departmentís Office Memorandum of even number dated 27th October 1997 may be substituted by the following in respect of those Central Government employees who are governed by the Central Civil Services (Pension) Rules, 1972 and who had retired during the period from 1st January to 30th September, 1996

    "The average emoluments based on the basic pay of the preceding ten months of those Government Servants who had opted to come over to the revised scales of pay and had retired within a period of 10 months reckoned from January 1,1996 shall be calculated as follows for the purpose of determining their pension entitlement:

    A)  For the period during which pay was drawn in the pre-revised pay scales:

    The total emoluments for the number of months for which pay was drawn in the pre-revised pay scales shall be calculated after taking into account the following:

    1. Basic Pay (including increments, if any drawn during the intervening period).
    2. Dearness allowance upto CPI 1510, i.e., @ 148% , 111% and 96% of the basic pay as the case may be.

    3. The first and second instalments of Interim Relief appropriate to the Basic pay drawn during the relevant period.

    4. Notional increase of the Basic pay by applying the Fitment Benefit of 40 percent on the Basic pay in the pre-revised pay scale.

    B)  For the period during which pay was drawn in the revised pay scales :

    The aggregate of the Basic pay for the number of months for which pay was drawn in the revised pay scales.
    The average emoluments of the preceding ten months will thereafter be calculated by adding (A) and (B) and dividing the result by 10. Pension admissible will consequently be 50% of the average emoluments so calculated ".
  4. For facility of ready reference, an illustrative example has also been enclosed as Annexure I.

  5. Pension sanctioning authorities may revise suo motu the pension of government servants under their administrative control who had retired during the period from 1st January to 30th September, 1996. The revision should be done without calling for fresh application from the government servants concerned.

  6. Separate orders will be issued by the Ministry of Defence, Ministry of Railways and the AIS Division of the Department of Personnel & Training in respect of Armed Forces personnel, Railway employees and Members of All India Services respectively.

  7. These orders are issued with the approval of the Ministry of Finance, Department of Expenditure, vide their U.O. No. 1(21)/E.V/97 dated 7th July, 1999 and U.O. No. 785/EV / 99 dated 9th August, 1999

  8. In their applicability to the personnel of the Indian Audit and Accounts Department, these orders issue in consultation with the Comptroller and Auditor General of India.

  9. Ministry of Agriculture, etc. are requested to urgently bring the contents of these orders to the notice of the Heads of Departments, their Attached and Subordinate Offices, Controllers of Accounts, Pay and Account Officers, etc. under their administrative control. All Pension Disbursing Authorities are also advised to display these orders prominently on the notice boards for the information and guidance of the pensioners.


(GANGA MURTHY)
Director (PP)
Annexure - I
I L L U S T R A T I V E      E X A M P L E
Pre-revised Scale (Prior to 1.1.1996)Rs.2200-4000
Corresponding Revised Scale (w.e.f. 1.1.1996)Rs.8000-13500
Date of increment in the pre-revised scale 1st June,1995
Basic Pay in the Pre-revised scale (Upto May 1995)Rs.3400
(June 1 to Dec 31, 1995)Rs 3500
Date of Superannuation31st January, 1996
Emoluments drawn in the pre-revised scale
(i) April 1, 1995 to April 30,1995
Basic PayRs.3400
Dearness Allowance @ CPI 1510 (148% in the Present case) Rs.5032
I.R.(I) & (II) (Rs 100+10% of Basic pay) Rs. 440
Fitment Weightage (40% of Basic Pay) Rs.1360
Total Rs.10232
Total Emoluments for 2 Months (April & May 95)
10232 x 2 = Rs.20464
(ii) June 1, 1995 to June 30,1995
Basic Pay Rs. 3500
Dearness Allowance @ CPI 1510 (148% in the present case) Rs.5180
I.R.(I) & (II) (Rs. 100 + 10% of Basic pay) Rs. 450
Fitment Weightage (40% of Basic Pay) Rs.1400
Total Rs.10530
Total Emoluments for seven months (June 95 to Dec. 95)
Rs.10530x 7 = Rs.73710
Emoluments drawn in the Revised Scale of Pay
January 1,1996 to January 31, 1996
Basic Pay Rs.10750
Total Emoluments for 1 month Rs.10750
C. Total Emoluments during 10 months = Rs 104924
A(i) + A(ii) + (B)
D. Average Emoluments =104924 / 10= Rs. 10492
Monthly pension (50% of average emoluments, i.e,.50% of D) Rs.10492 / 2
Rs. 5246


Note:
(a) Fitment weightage of 40% of basic pay to be added to basic in the pre-revised scale.

(b) DA actually drawn will be substituted by DA at CPI 1510 relevant to the particular slab of basic pay


Department of Personnel and Training
Department of Administrative Reforms & Public Grievances.


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