Tuesday, July 14, 2009

Revision of pension of pre-2006 pensioners

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Ministry of Personnel, Public Grievances & Pensions

(Department of Pension & Pensioners'Welfare)

Lok Nayak Bhawan,New Delhi-110003
dated the 14th July, 2009


Sub:Implementation of Government's decision on the recommendations of the Sixth Central Pay Commission - Revision of pension of pre-2006 pensioners.

The undersigned is directed to say that in accordance with para 4.2 of this Department's O.M.No.38/37/08-P&PW(A) dated 1.9.2008 (as clarified vide OM dated 3.10.2008 and 14.10.2008), the revised pension of pre-2006 pensioners shall, in no case, be lower than fifty percent of the minimum of the pay in the pay band plus the grade pay corresponding to the pre-revised pay scale from which the pensioner had retired. In the case of HAG+ and above scales, this will be fifty percent of the minimum of the revised pay scale. Clarifications have been sought by Ministries/Departments as to whether Non Practicing Allowance (NPA) is to be added to the minimum of the revised pay band plus the grade pay / revised pay scale while considering stepping up consolidated pension on 1.1.2006. The matter has been examined in consultation with the Ministry of Finance (Department of Expenditure).

2.On implementation of the recommendations of Fifth Central Pay Commission, NPA was not added to the minimum of the revised scale of pay as on 1.1.1996 in cases where consolidated pension / family pension was to be stepped up to 50% / 30% respectively. Hon'ble Supreme Court, in its judgement dated 10.10.2006 in Transfer Cases (civil) 72 of 2004 - Col. (Retd.) B.J.Akkara vs. UOI & others, upheld the validity of OM dated 11.9.2001 of Ministry of Defence not allowing the benefit of NPA in the case of retired medical officers of Armed Forces to be added to the minimum of revised scale as on 1.1.1996.

3. NPA granted to medical officers does not form part of the Pay Bands / scales of pay. It is a separate element, although it is taken into account for the purpose of computation of pension. It is, therefore, clarified, that in the case of pre-2006 pensioners NPA is not to be added to the minimum of the revised pay band+Grade pay/revised pay scale in cases where consolidated pension/family pension as on 1.1.2006 is to be stepped up to 50% / 30% respectively, in terms of para 4.2 of Department' of pension & PW's O.M.No.38/37/08-P&PW(A) dated 1.9.2008 (as clarified vide OM dated 3.10.2008 and 14.10.2008).

4. It is impressed upon all the Ministries/Departments of the Government of Inida to keep in view the above clarifications while disposing of the cases of revision of pension/family pension. They are also advised to dispose the representations received by them from pensioners on the above issues whithout referring them to this Department.

5. This issues with the concurrence of Ministry of Finance (Department of Expenditure) vide their U.O.No.264/EV/2009 dated 9.7.2009.

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