No. 38/86/03-P&PW (A)

Government of India

Ministry of Personnel, Public Grievances and Pensions

Department of Pension and Pensioners’ Welfare


3rd Floor, Lok Nayak Bhawan,

Khan Market, New Delhi-110 003.


Dated the 26th  April, 2004




Subject:- Pay scales for the staff belonging to the Organised Accounts Department.   Fixation of pension.


The undersigned is directed to say that the Government had approved grant of higher scales for the Accounts Staff of Railways on notional basis with effect from 1.1.96 with actual payments being made prospectively.  Keeping in view the fact that pay scales of corresponding categories in various organized Accounts cadres have traditionally been on par, orders were issued extending the dispensation approved in case of the Accounts staff of Railways to the corresponding categories in all the organized Accounts cadres, vide  Ministry of Finance and Company Affairs, Department of Expenditure’s OM No.F.No.6/82.E.III(B)/91 dt 28.2.03.


2.         Accordingly, vide the aforesaid OM, pay scale of the following posts and their equivalent posts in the organized Accounts cadres existing in various Ministries/Departments of the Government of India were upgraded on notional basis with effect from 1.1.96 with actual payments being made from 19.2.03 – the date on which this decision was approved by the Government as under :-



Pay scale prior to 1.1.96








Existing pay scale








Pay scale to be extended notionally with effect from 1.1.96 with actual payments being made prospectively.







Sr. Auditor/Sr. Accountant





Section Officer





Assistant Audit Officer/Assistant Accounts Officer







3.         References have been received seeking clarification on matters of fixation of pay, pension, gratuity and commutation of pension etc. in the light of issue of aforesaid Memorandum dt 28.2.03 issued by Department of Expenditure and Office Memorandum No.45/10/98-P&PW(A) dt 17.12.98 issued by the Department of Pension.  The matter has been considered in consultation with the Ministry of Finance, Department of Expenditure which notified the upgradation of the pay scales for the accounts staff.  The following clarifications are issued:-




Points Raised




Whether option as per Rule 5 and 6 of CCS (RP) Rules, 1997 are to be called afresh for pay fixation.

Rule 5 and 6 of CCS (RP) Rules, 1997 concern exercise of option by a Government employee regarding date from which pay in the revised pay scale is drawn.  As new pay scale have been notionally implemented with effect from 1.1.96, hence pay of various categories of staff with effect from 1.1.96 would have to be refixed in such higher pay scale(s) in terms of CCS (RP) Rules, 1997.  It would therefore, be justified to allow fresh option for drawal of pay in the revised pay scale(s) under Rule 5 and 6 of CCS (RP) Rules, 1997 to these employees.



Whether those who got promotion to higher grades (including ACP after 1.1.96 will also be eligible to exercise fresh option for pay fixation under FR22(1)(a)(I).


DOPT;s OM No.16/8/2000-Estt. (Pay-I) dt 25.2.03 clarifies that a Government servant may be allowed to revise the option exercised by him/her on promotion/appointment to a higher grade in the event of unanticipated developments/change of rules etc.  Upgradation of pay scale notionally from 1.1.96 of a post is very much an unexpected development.  The case of such of those employees as got a higher pay scale either on regular promotion or under ACP after 1.1.96 is, therefore, squarely covered by the provisions of the aforesaid OM and they may be allowed to exercise fresh option for pay fixation under FR22(1)(a)(I).



Whether the benefit of higher pay in the upgraded pay scale for calculating pensionary benefits, will be applicable to pensioners retired during 1.1.96 to 18.2.03.


Under notional fixation, the pay is actually fixed in higher pay scale from the date of such notional fixation, increments in the higher pay scales are also allowed but no arrears are payable.  Accordingly, the pension of all the pensioners as had retired during 1.1.96 to 18.2.03 would have to be fixed as per the upgraded pay scales notionally extended from 1.1.96.  However, no arrears shall be paid and the pension with reference to the higher revised pay scale shall actually be paid only with effect from 19.2.03.


Whether difference of gratuity shall be payable to those who retired prior to the date consequent upon revision of pay scale of the accounts staff.


The difference of gratuity on account of revision of pay scales would not be payable to the persons who had retired prior to 19.2.03.


Whether it should be applicable to encashment of leave, commutation etc.


It will be applicable only from 19.2.03.  Commutation is allowed with reference to pension sanctioned at the time of retirement on the basis of average of 10 months emoluments.  If pension is revised retrospectively, the pensioner will be paid difference of commutation value under Rule 10 of CCS (Commutation of Pension) Rules, 1981.  Accordingly if pension is revised/upgraded with effect from 1.1.96, commutation will also be allowed with reference to the revised/upgraded pension.



Whether revision of pension this case could be done on the basis of average emoluments notionally drawn during the last 10 months of service under Rule 34 of CCS (Pension) Rules.


Revision of pension is allowed as a special case in relaxation of Rules.



Whether the provisions contained in OM dt 17.12.98 issued by the Department of Pension are applicable, with reference to the upgraded pay scales with effect from 1.1.96, for the purpose of pension fixation on notional basis of average emoluments and the actual benefit will be allowed from 19.2.03.


In respect of Government servants retiring during the period 1.1.96 to 18.2.03 revision of pension would be fixed notionally on the basis of average emoluments with reference to the revised pay scales and would be not less than 50% of the minimum of the pay scale.  However no arrears would be payable on this account for the period 1.1.96 to 18.2.03.


Whether the benefit of fixation of pension with reference to upgraded scales could be extended to pre-96 retirees also.


Revision of pension in respect of pre96 retirees will be on the basis of corresponding revised pay scales as on 1.1.96.  In other words, the benefit of upgraded pay scales will not be admissible in the case of pre-96 retirees.



4.         All the Ministries/Departments of Government of India are advised to take note of the above clarifications for appropriate action.  They are also advised to dispose off the representations received by them from pensioners on the above issues without making any reference to this Department. They are also requested to bring the contents of these orders to the notice of Controller of Accounts/Pay and Accounts Office and Attached and Sub-ordinate Offices under them.


5.         This issues with the approval of Ministry of Finance, Department of Expenditure, vide Dy No. 331/2004/IC dt 26.3.04.




(M.P. Singh)

Director (PP)

Tele No. 24624802




All Ministries/Departments of the Government of India.

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