Retirement Benefits

Revision of Pension

Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners’ Welfare
New Delhi-110003
Dated the 8th May, 1998

Implementation of Government's decision on the recommendations of the Fifth Central Pay Commission- Revision/updation of family pension in respect of Government servants who retired/died on or after 1.1.1986 but before 1.1.1996.

The undersigned is directed to say that in accordance with Government's decision on the recommendations of Fifth Central Pay Commission announced in this Department's Resolution No.45/86/97- P&PW(A) dated 30.09.1997, orders have been issued vide para 7.1 of this Department's O.M. NO.45/86/-97-P&PW(A)-Part I dated 27.10.97 to the effect that the family pension, w.e.f. 1.1.96, shall be calculated at a uniform rate of 30% of basic pay in all cases instead of slab system and shall be subject to a minimum of Rs.1275/- per month and a maximum of 30% of the highest pay in the Government (The highest pay in the Government is Rs.30,000/- since 1.1.1996). It has also been decided by the Government that the benefit of the aforesaid enhanced rate of family pension may also be extended in the case of pre-96 pensioners/family pensioners w.e.f. 1.1.96. Accordingly it has been provided in paras 9.1 and 9.2 of this Department O.M. No.45/86/97- P&PW(A)-Part II dated 27.10.1997 regarding revision of pension/family pension of pre-1996 retirees that the consolidated family pension worked out in accordance with provisions of para 4.1 of this OM shall be final in the case of only those family pensioners who became entitled for family pension during the period from 1.1.1986 to 31.12.95 and were sanctioned family pension at the rate of 30% of the last pay drawn by the pensioner/deceased employee and that in case of other pensioners/family pensioners consolidation of pension should be treated as an interim measure to provide them immediate relief. Subsequently orders have been issued for revision of pension/family pension of pre-1986 pensioners/family pensioners w.e.f. 1.1.1996 vide this Department's OM No. 45/86/97-P&PW(A)-PART III dated 10.2.98 wherein provision for sanction of family pension @30% has already been made.


In continuation of instructions contained in para 9.2 of this Department's OM No.45/86/97-P&PW(A)-Part II dated 27.10.1997, it has been decided that in respect of those Government servants who retired/died between 1.1.1986 to 31.12.1995 and in whose case the last pay drawn exceeded Rs.1500 their family pension may be revised w.e.f. 1.1.1996 in the following manner :-

  1. The existing family pension shall be consolidated w.e.f. 1.1.96 in accordance with the provisions contained in para 4.1 of this Departmnet's OM No.45/86/97-P&PW(A)-Part-II dated 27.10.1997

  2. Family pension shall be re-calculated at the rate of 30% of the last pay drawn by the pensioner/deceased employee and the difference between the family pension already admissible under slab system and @30% of last pay drawn shall be worked out.

  3. The additional family pension becoming due on account of the difference between family pension already admissible under slab system and at a rate of 30% of last pay shall be added to the consolidated family pension worked out as at (i) above. The total of these two amounts i.e. the consolidated family pensin plus additional family pension shall be basic family pensin w.e.f. 1.1.1996 and shall be subject to the prescribed limits.

  4. Dearness relief on the basic family pensin as at (iii) above shall be admissible in accordance with the orders issued by the Government from time to time after 1.1.1996.


Arrears already paid on account of consolidation of family pension as an interim measure in accordance with the provisions contained in para 9.2 of this Department's OM No. 45/86/97-P&PW(A)- Part-II dated 27.10.97 as also Dearness Relief admissible thereon shall be adjusted by pension disbursing authorities against arrears becoming due on the revision of family pension and DR admissible on the basis of this order.


It shall be the responsibility of the Head of the Department from which the Government servant had retired or was working last before his death to revise w.e.f. 1.1.96 the family pension in respect of government servants who retired or died on or after 1.1.86 but before 1.1.96 in accordance with these orders and issue a revised pension payment authority. However, the Pension Sanctining Authority, in no case will ask the pensioner/family pensioner to surrender his/her original PPO for issuing revised authority. His authority will be issued under the existing PPO number and would travel to the Pension Disbursing Authority through the same channel through which the original PPO had travelled. The Pension Disbursing Authority would affix this authority to both halves of PPO. Each pensioner/family pensioner who is entitled for the benefit of revision of family pension in terms of this order is required to apply for revision of family pension in the prescribed form (in duplicate) as at Annexure-I to his/her pension sanctioning authority i.e. Head of Offie within a period of 180 days from the date of issue of these orders. Those who fail to submit their application during the stipulated period will be deemed to have opted to continue to draw their existing family pension. However, in exceptional cases where the pension sanctioning authority considers that delay in submission of application for revision of family pension was beyond the control of the applicant, such delay in submission of the application will be condoned only with the approval of Department of Pension & Pensioners' Welfare.


In cases where the family pensioner was alive as on 1.1.96 and died subsequently his/her legal heir is/are also entitled life time arrears w.e.f. 1.1.96 till the death of family pensioner. For this purpose legal heir may also apply to pension sanctioning authority.


Orders have been issued by the Government from time to time in regard to entitlement to family pension in case of those Government servants who seek permanent absorption in Public Sector Undertakings or Autonomous Bodies etc. In cases where eligible member of the family of the deceased absorbee were in receipt of/entitled to family pension as on 1.1.96 in pursuance of the existing orders their family pension will also be revised in accordance with these orders.


These orders are not applicable in case of Armed Forces pensioners but are applicable in the case of civilian Defence pensioners.


In their application to the persons belonging to the Indian Audit and Accounts Departments these orders issue in consultation with the Comptroller and Auditor General of India.


Ministry of Agriculture etc. are requested to bring the contents of these orders to the notice of Heads of Departments/Controller of Accounts, Pay and Accounts Officers, and Attached and Subordinate Offices under them on top priority basis. All Pension Disbursing Authorities are also advised to prominently display these orders on their notice boards for the benefit of the pensioners/family pensioners.

Additional Secretary (Pension)

As referred to in Para 4 of OM No.45/86/97-P&PW(A)-Part-Iv dated: 8th May, 1998




i.e. Head of Deptt./Office.

Subject: Revision of family pension in terms of Department of Pension and Pensioners' Welfare Office
Memorandum No. 45/86/97-P&PW(A)-Part-IV
Dated 8th May, 1998.

Kindly revise my family pension entitlement shown in my PPO(Photo copy enclosed) in terms of the Department of Pension and Pensioners' Welfare Office Memorandum No. 45/86/97-P&PW(A) Part-IV dated the 8th May, 1998. The requisite particulars are given below :-

1. Name of the Applicant in Block letters and Full Postal Address :
2. Name of the deceased Govt. servant/pensioner * :
3. Date of retirement/death of the Govt. employee :
4. Date from which family pension is being drawn:
5. Pension payment Order (PPO) No.:
6. Office/Department/Ministry in which the pensioner/deceased government servant (pensioner) served last and the post held by him :
7. The scale of pay of the post last held and the last pay drawn :
8. Name of the authority which issued PPO :
9. Name of the Pension Disbursing Authority ( with Saving Bank Accounts Number, whereever applicable) :
*Applicable only in cases where the applicant is a family pensioner.



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