Government of India

Ministry of Personnel, P.G., and Pensions

Department of Pension and Pensioners' Welfare



Lok Nayak Bhawan, Khan Mkt.

New Delhi.110 003

March 25th, 2004


Subject : Implementation of recommendations of the Vth CPC pertaining to pensioners and family pensioners revision of pension in respect of persons retired on compulsory retirement (Rule 40) and in receipt of Compassionate allowance (Rule 41)..


The undersigned is directed to refer to this Department O.M. dated the 27th October, 1997, 10th Feb. 1998 and 17th December, 1998 regulating consolidation of pension as also notional fixation of pay and pension of pre-86 pensioners. As the O.M. dt.10.02.98 pertains to notional fixation of pay and pension in respect of only superannuation pension, retiring pension, compensation pension and invalid pension, this Department is getting several enquiries about the methodology to be followed for regulating compulsory retirement pension and compassionate allowance, which was granted as a result of imposition of a penalty. It is clarified for information of all concerned that while the O.M. dt. 10.02.1998 will not be applicable to these two categories of pensioners, their pension may be consolidated in terms of this Department O.M. No.45/86/97-P&PW(A)pt.II dt.27.10.97 subject to the condition that such consolidation should be proportionate to the percentage of cut imposed at the time of sanction of the original pension. In other words, the consolidated pension should be reduced pro-rata depending upon the reduction/restrictions imposed at the time of sanction of the original pension. It may however be clarified that the provisions of O.M. dt. 17.12.1998 relating to stepping up of pension to 50% of the minimum of the revised scale of pay as on 1.1.96 of the post held by the pensioner at the time of retirement shall not be applicable in case of compulsory retirement pension and compassionate allowance.


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


3.                              These orders issue with the approval of the Ministry of Finance, Department of Expenditure, vide their U.O. No. 822/EV/2002 Dated 3.12.02 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, Controller of Accounts, Pay & Accounts 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.





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