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

Government of India

Ministry of Personnel, P.G., and Pensions

Department of Pension and Pensioners' Welfare


3rd Floor, Lok Nayak Bhawan,

Khan Market, New Delhi-110 003.


Dated the    5th September, 2007.




Subject:- Amendment of O.M. dated 26th April, 2004 relating to pay scales for the staff belonging to the Organised Accounts Department – fixation of pension.


            In pursuance of Supreme Court judgement dt.23.11.2006 in K.S. Krishnaswamy and others vs. UOI in C.A. No.3174/2006, need has been felt to amend O.M. of even number dated 26th April, 2004 and 8th February, 2005 to make it compatible with the Supreme Court judgement, the undersigned is directed to substitute para 3, 6 and 7 (i) and 7 (ii) of the Department’s OM of even number dt 26.4.2004 and       8th February, 2005 with the following corresponding paras:-



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.





Whether revision of pension in these cases 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.




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 terms of Supreme Court Judgment                   dt 23.11.2006, the revision of pension shall be governed by OM dt 17.12.98 read with OM dt 11.5.01 and  revision of pension in revised upgraded pay scales shall NOT be admissible/allowed.





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





2.         No recoveries shall be made, on account of revision of pensionary benefits earlier granted in terms of O.M. dated 26.4.2004 in the light of above amendment, till 5.9.07 i.e. the date of issue of this O.M.


3.         All other terms and conditions stipulated in OM dt 26.4.04 read with O.M. dated 8.2.05 shall remain unchanged.


4.         This issues with the approval of Ministry of Finance, Department of Expenditure vide UO No.393/EV/07 dt 5.9.07.     


5.         The provisions of this OM shall come into effect from the date of issue i.e. 5.9.07.




(M.P. Singh)

Director (PP)





All Ministries/Departments of the Government of India.


Copy to:-


1.                                                      CAG (200 Copies)

2.         CGDA (200 Copies)

3.         CGA (200 Copies)

4.         As per list attached.

Signed Copy


                        English Version