Retirement Benefits

Revision of Pension

F.No. 45/10/98-P&PW(A)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners’ Welfare
Dated the 17th December, 1998
Subject : Implementation of Government’s decisions on the recommendations of the Fifth Central Pay Commission relating to retirement benefits.
1.

The undersigned is directed to say that in the wake of a large number of representations received by the Government from the Pensioners’ Associations as well as individuals, the Government has re-considered its decision on the recommendations of the Vth Central Pay Commission regarding revision of pension/ family pension as contained in Paras 137.14 and 134.30 of the report. The President is now pleased to decide that w.e.f. 1. 1. 1996, pension of all pensioners irrespective of their date of retirement shall not be less than 50% of the minimum pay in the revised scale of pay introduced w.e.f. 1. 1. 1996 of the post last held by the pensioner. However, the existing provisions in the rules governing qualifying service and minimum pension shall continue to be operative. Similarly w.e.f. 1. 1. 1996 family pension shall not be less than 30% of the minimum pay in the revised scale introduced w.e.f. 1. 1. 1996 of the post last held by the pensioner/ deceased Government servant. Accordingly, so far as persons governed by CCS (Pension) Rules, 1972 are concerned, orders contained in the following Office Memoranda of this Department as amended from time to time shall be treated as modified as indicated below.

A. O.M. No. 45/86/97-P&PW(A) -Pt.I dated October 27,1997.
2.

The first sentence of paragraph 5 of the Office Memorandum relating to "Pension" may be substituted by the following:

" Pension shall continue to be calculated at 50% of the average emoluments in all cases and shall be subject to a minimum of Rs. 1,275 per month and a maximum of upto 50% of the highest pay applicable in the Central Government, which is Rs. 30,000 per month since 1st January, 1996, but the full pension in no case shall be less than 50% of the minimum of the revised scale of pay introduced with effect from 1st January, 1996 for the post last held by the employee at the time of his retirement. However such pension will be suitably reduced pro-rata, where the pensioner has less than the maximum required service for full pension as per the rule (Rule 49 of CCS(Pension) Rules 1972) applicable to the pensioner as on the date of his / her superannuation / retirement and in no case it will be less than Rs.1275/- p.m."

B. O.M. No. 45/86/97 - P&PW(A) Pt. II dated October, 27, 1997

3.

The following may be inserted after the first sentence, "The amount so arrived at shall be……………with effect from 1. 1. 1996," in the sub-para of paragraph 4.1:

" However, in cases where the pension consolidated is treated as the final full pension, it shall not be less than 50% of the minimum of the revised scale of pay introduced with effect from 1st January 1996 for the post last held by the pensioner at the time of his retirement. Such pension will be suitably reduced pro-rata, where the pensioner has less than the maximum required service for full pension as per the rule (Rule 49 of CCS(Pension) Rules 1972) applicable to the pensioner as on the date of his / her superannuation / retirement and in no case it will be less than Rs.1275/- p.m. Similarly, in cases where the family pension so consolidated is treated as final, it shall not be less than 30 per cent of the minimum of the revised scale of pay introduced with effect from 1st January 1996 for the post last held by the concerned pensioner/ deceased government servant."

C. O.M. No. 45/86/97-Pt. III dated February 10, 1998

4.

  1. The last sentence of paragraph 2 may be substituted by the following:

    "The pension so calculated shall be consolidated as on 1st January 1996 in accordance with the provisions contained in paragraph 4.1 of this Department’s O.M.No. 45/86/97-P&PW(A) – Pt. II dated 27th October 1997. Such consolidated full pension shall not, however, be less than 50 per cent of the minimum of the revised scale of pay introduced with effect from 1st January 1996 for the post last held by the concerned pensioner. However such pension will be suitably reduced pro-rata, where the pensioner has less than the maximum required service for full pension as per the rule (Rule 49 of CCS(Pension) Rules 1972) applicable to the pensioner as on the date of his / her superannuation / retirement and in no case it will be less than Rs.1275/- p.m."

    This pension shall be treated as the basic pension for the purpose of future grant of Dearness Relief on pension.

  2. The second sentence of paragraph 3 may be substituted by the following:

    "This pension shall be consolidated as on 1st January 1996 in accordance with the provisions contained in paragraph 4.1 of this Department’s O.M. No. 45/86/97- P&PW(A) - Pt. II dated 27th October 1997. Such consolidated family pension shall not, however, be less than 30 per cent of the minimum of the revised scale of pay introduced with effect from 1st January 1996 for the post last held by the concerned pensioner/ deceased government servant."

  3. The following clause may be inserted after the fifth sentence in paragraph 4:

    "The basic family pension so calculated shall not be less than 30 per cent of the minimum of the revised scale of pay introduced with effect from 1st January 1996 for the post last held by the concerned pensioner/ deceased government servant."

    D. O.M. No. 45/86/97 - P&PW (A)-Pt. IV dated May 8, 1998

  4. The following may be added after the last sentence in paragraph

    2(iii):

    • "The basic family pension so calculated shall not be less than 30 per cent of the minimum of the revised scale of pay introduced with effect from 1st January 1996 for the post last held by the concerned pensioner/ deceased government servant."

  5. The grant of enhanced family pension will be regulated in accordance with the provisions contained in this Department’s O.M. No. 45/8/98-P&PW(E) dated 15/12/1998.

  6. It shall be the responsibility of the Head of the Department of the Ministry, Department, Office, etc. from which the government servant had retired or where he was working prior to his demise to revise the pension/family pension of all pensioners/ family pensioners with effect from 1st January 1996 in accordance with the modified provisions mentioned above and to issue revised Pension Payment Order (PPOs). Action to revise pension/ family pension in terms of these orders shall be initiated suo moto by the concerned Heads of Departments in cases where the necessary applications have already been received from the pensioners/ family pensioners in pursuance of the earlier orders issued by this Department regardless of the fact whether their cases have already been finalised or are in the process of finalisation. Those pensioners/ family pensioners who have not so far submitted the necessary applications to facilitate the revision of their pension/ family pension and are desirous of availing the benefits under these orders are required to submit applications for revision of their pension/ family pension in the prescribed form (in duplicate) as in the annexure, to their Pension Sanctioning Authorities latest by 31st March 1999. In the case of the Defence Civilian Employees , however, the procedure prescribed in this regard by the Ministry of Defence shall be followed. Concerted efforts should be made by all the authorities concerned to ensure that the revised PPO’s are issued, wherever necessary, with the utmost expedition.

  7. It is once again reiterated that the Pension Sanctioning Authority in no case, will ask the pensioner/ family pensioner to surrender his/ her original Pension Payment Order (PPO) for issuing revised authority. It may also be ensured that a copy of the revised PPO should be invariably endorsed to the pensioner/ family pensioner.

  8. 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 the Armed Forces Personnel, Railway Employees and Members of the All India Services respectively.

  9. These orders issue with the approval of the Ministry of Finance, Department of Expenditure, vide their Dy. No. S-46/E.V/98 dated 8th December, 1998.

  10. 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.

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

To

All Ministries/ Departments to the Government of India etc.


Copy to :
1.    Office of the Comptroller & Auditor General with two hundred spare copies.
2.    As per list attached.


Annexure
( As referred to in para 7 of O.M. 45/10/98-P&PW(A) dated 17 December 1998 )

Form of Application

To,
(Pension Sanctioning Authority)

Subject: Revision of Pension/family pension on 1.1.1996 in terms of Department of Pension & Pensioners’ Welfare Office Memorandum No. 45/10/98-P&PW(A) dated 17 Dec. 1998.

Sir,
Kindly revise my pension/ family pension entitlement shown in my PPO (Photo copy enclosed) in terms of the Department of Pension and Pensioners’ Welfare Office Memorandum No. 45/10/98-P&PW(A) dated the 17th Dec. 1998. The requisite particulars are given below:-
  1. Name of the applicant in block letters and full postal address.
  2. Type of pension admissible.
  3. Name of the Pensioner/ deceased Government servant (Pensioner) in case of family pension.
  4. Date of retirement /death of the Government employee.
  5. Date from which pension/family pension is being drawn.
  6. Pension Payment Order (P.P.O) No.
  7. Office/ Department/Ministry in which the pensioner/ deceased government servant (pensioner) served last and the post held by him.
  8. The scale of pay of the post last held and the last pay drawn.
  9. Consolidated final pension / family pension admissible from 1.1.96.
  10. Name of the authority which issued PPO.
  11. Name of the Pension Disbursing Authority with SBA number, wherever applicable.
  12. If any documentary evidence is being attached to facilitate settlement of the case, details thereof.
Date:
(Signature of Pensioner/Family Pensioner)


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


This site is Designed, Developed & Hosted by NIC / NICSI