Retirement Benefits

Revision of Pension

Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners Welfare
3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi - 110 003
Dated the 19th March, 1999

Subject : Implementation of Government’s decision on the recommendations of the Fifth Central Pay Commission-Revision of pension of pre-1986 pensioners/family pensioners - Clarification regarding.

The undersigned is directed to refer to this Department’s Office Memorandum of even No. dated 10th February, 1998 as amended from time to time and to say that a number of references are being received in this Department for seeking clarification in regard to emoluments to be taken into account for fixation of pay on notional basis on 1.1.1986 in the case of pre-1986 retirees as also for the purpose of revision of their pension based on this notional pay. The matter has been considered in consultation with the Ministry of Finance, Department of Expenditure, who had promulgated Central Civil Services (Revised Pay) Rules, 1986. The position in regard to the various points raised is indicated as follows :-


1. Whether stagnation increment has to be taken into account or not while fixing pay of the retired Government servants on notional basis w.e.f. 1.1.1986.


Notional pay of the retired Government servants should be fixed in terms of Rule 7 of Central Civil Services (R.P.) Rules, 1986 viz. by increasing the existing emoluments (As defined in rules ibid) by 20% of the basic pay and then the pay should be fixed in the revised scale at the next stage. Stagnation increment will not be taken into account while fixing notional pay as on 1.1.1986.

2. Whether stagnation/increments are admissible in addition to notional pay fixed as on 1.1.1986.


No stagnation increment will be admissible over and above the pay fixed on notional basis as on 1.1.1986.

3. Whether special pay, Deputation Allowance, Personal Pay, Desk Allowance etc. which have not been treated as emoluments for the purpose of fixation of notional pay under Central Civil Services (Revised Pay) Rules, 1986 should continue to be treated as emoluments for the purpose of computation of revised pension on the basis of pay fixed on notional basis.


Under Rule 33 of Central Civil Services (Pension) Rules, 1972 w.e.f. 1.1.1986 the expression ‘Emoluments’ means basic pay as defined in Rule 9 (21) (a) (i) of the Fundamental Rules which a Government servant was receiving immediately before his retirement or on the date of his death and also includes non-practising allowance granted to Medical Officers in lieu of private practice. FR 9(21) (a) (i) reads as follows :-

‘Pay’ means the amount drawn monthly by a Government servant as

  1. The pay, other than special pay or pay granted in view of his personal qualifications, which has been sanctioned for a post held by him substantively or in an officiating capacity, or to which he is entitled by reason of his position in a cadre.

It is impressed upon all the Ministries/Departments of the Government of India to keep in view the above clarifications while disposing of the cases of revision of pension/family pension of Pre-1986 pensioners/family pensioners. They are also advised to dispose the representations received by them from pensioners on the above issues without referring these to this Department.


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

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