Accounts Staff: RBE No.124/2007 – Allotment of Higher Pay Scales

No.F(E)III/99/PN1/20 Vol-II, dated 27.09.2007

S.No. PC-V/491

Sub: Allotment of higher pay scales to Railway Accounts staff – Revision of pension of Accounts Staff retired during the period from 01.01.1996 to 18.02.2003.

1.     In terms of Board’s letter No.PC-V/98/I/11/23, dated 07.03.2003 (RBE No.48/2003), the Accounts Staff in the Railways were granted higher replacement scales of pay on notional basis with effect from 01.01.1996 and actual payment prospectively from 19.02.2003. The instructions regarding admissibility of pensionary benefits of such of the Accounts staff as had retired during the period from 01.01.1996 to 18.02.2003 were issued vide Board’s letter of even number dated 16.06.2004 (RBE No.130/2004). In terms of these instructions, pension/ family pension of all the concerned Accounts staff, who had retired during 01.01.1996 to 18.02.2003 was to be revised on the basis of average emoluments notionally drawn during the last ten months of service and actual payment of pension/ family pension was to be made from 19.02.2003. It was also provided therein that the revised pension and family pension shall not be less than 50% and 30% respectively of the minimum of the higher replacement scales of pay, subject to fulfillment of the conditions stipulated in para 2 of Board’s letter No.F(E)III/98/PN1/29, dated 15.01.1999 (RBE No.08/1999). These instructions were based on DOP&PW’s O.M. No.38/86/03-P&PW(A), dated 26.04.2004 and 08.02.2005.

2.     Supreme Court, in their judgment dated 23.11.2006 in Sh. K.S. Krishnamurthy and others Vs. UOI in C.A. No.3174/2006 upheld DOP&PW’s O.M. No.45/86/97-P&PW(A), dated 11.05.2001 (adopted on the Railways vide Board’s letter No.F(E)III/99/PN1/20, dated 20.08.2001) (RBE No.160/2001) in terms of which pension/  family pension of all retired Railway servants irrespective of their date of retirement shall not be less than 50%/30% of the minimum of the corresponding scale as on 01.01.1996, of the scale of pay held by him/her at the time of retirement. In pursuance of this judgment, the Government in DOP&PW, felt a need to amend their instructions dated 26.04.2004 and 08.02.2005 to make them compatible with the said judgment and accordingly, vide their O.M. No.38/86/03-P&PW(A)Pt., dated 05.09.2007 (copy enclosed) has amended the same to the extent as indicated below:-

(i)    The benefit of higher pay in the upgraded pay scale for calculating pensionary benefits shall NOT be applicable to pensioners retired during the period from 01.01.1996 to 18.02.2003.

(ii)    Revision of pension in these cases shall NOT be done on the average emoluments notionally drawn during the last 10 months of service under Rule 34 of CCS (Pension) Rules, 1972 (Rule 50 of Railway Services (Pension) Rules,1993).

(iii) In terms of Supreme Court judgment dated 23.11.2006, revision of pension shall be governed by DOP&PW’s O.M. dated 17.12.1998 read with O.M. dated 11.05.2001 and revision of pension in revised upgraded pay scales shall NOT be admissible/ allowed.

(iv) The benefit of fixation of pension with reference to upgraded scales shall NOT be extended to pre-1996 retirees.

3. In order that Board’s instructions are in tune with the amendments carried out by the DOP&PW, it has been decided to amend the existing, instructions of Board’s letter dated 16.06.2004 to the extent as indicated in sub-paras (i), (ii) and (iii) of para 2 above. Accordingly, Zonal Railways etc. are advised to revise immediately pension/ family pension of Accounts staff retired during the period from 01.01.1996 to 18.02.2003 on the basis of emoluments actually drawn by them immediately before their retirement. The revised pension/ family pension shall, be payable from 06.09.2007 and no recoveries shall be made on account of pension/ family pension earlier paid upto 05.09.2007 in terms of Board’s instructions dated 16.06.2004.

4. Please acknowledge receipt. 

5. Hindi version is enclosed.

Ministry of Personnel, P.G., and Pensions

Department of Pension and Pensioners’ Welfare

No.38/86/03-P&PW (A) pt, dated 05.09.2007

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

1. In pursuance of Supreme Court judgment 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 judgment, the undersigned is directed to substitute para 3, 6 and 7 (i) and 7 (ii) of the Department’s OM of even number dt 26.04.2004 and 8th February, 2005 with the following corresponding paras:-

3Whether the benefit of higher pay in the upgraded pay scale for calculating pensionary benefits, will be applicable to pensioners retired during 01.01.1996 to 18.02.2003.No.
6Whether 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.No.
7(i)Whether the provisions contained in OM dt 17.12.1998 issued by the Department of Pension are applicable, with reference to the upgraded pay scales with effect from 01.01.1996, for the purpose of pension fixation on notional basis of average emoluments and the actual benefit will be allowed from 19.02.2003.In terms of Supreme Court Judgment dt 23.11.2006, the revision of pension shall be governed by OM dt 17.12.1998 read with OM dt.11.05.2001 and revision of pension in revised upgraded pay scales shall NOT be admissible/ allowed.
7(ii)Whether the benefit of fixation of pension with reference to upgraded scales could be extended to pre-96 retirees also.No.

2. No recoveries shall be made, on account of revision of pensionary benefits earlier granted in terms of O.M. dated 26.04.2004 in the light of above amendment, till 05.09.2007 i.e. the date of issue of this O.M.

3. All other terms and conditions stipulated in OM dt 26.04.2004 read with O.M. dated 08.02.2005 shall remain unchanged.

4. This issues with the approval of Ministry of Finance, Department of Expenditure vide UO No.393/EV/07 dt 05.09.2007.

5. The provisions of this OM shall come into effect from the date of issue i.e. 05.09.2007.

Download Railway Board Circular RBE No.124/2007

Forward reference ⇒ RBE No.

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