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

Government of India

Ministry of Personnel, PG & Pensions

Department of Pension & PW


3rd Floor, Lok Nayak Bhawan

Khan Market,New Delhi-110003


Dated:8th February, 2005




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


††††††††††† The undersigned is directed to refer to OM of even number dt 26.4.04 on the above subject and to state that the points clarifications contained in the Table below para 3 of the said OM are substituted as under: -



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).


DOPTís 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.



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 revised pay scale notionally extended with effect from 1.1.96.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.


The benefit of upgraded pay scales will not be admissible in the case of pre-96 retirees, however, their pension/family pension will not be less than 50% and 30% respectively of the upgraded scale of pay as per the instructions contained in this Departmentís OM.





2.†††††††† All other terms and conditions in OM dt 26.4.04 shall remain unchanged.

3.†††††††† This issues with the approval of Ministry of Finance, Department of Expenditure, vide IC UO No.169/1/2005 dt 01.02.2005.



(M.P. Singh)

Director (PP)

Tele No. 24624802




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.