Fixation of Pay: RBE No.05/1987 – Re-employed Pensioners
No.E(G)86 EM1-8, dated 21.04.1987
Sub: Fixation of pay on re-employment of pensioners – Consolidation of orders.
Reference, instructions issued by the Ministry of Railways (Railway Board) from time to time regarding fixation of pay on re-employment of retired railway employees, retired Central/ State Government employees, retired Defence personnel etc., both in the case of pensioners as also governed by Contributory Provident Fund benefits. These instructions have been issued in accordance with the instructions issued by the Department of Personnel and Training from time to time, as suitably adopted for fixation of pay on their re-employment on Indian Railways.
The Department of Personnel & Training have now consolidated the existing orders in a single body of orders with a view to rationalise and simplify the procedure governing the initial fixation of pay on re-employment. A copy of their O.M. No.3/1/85-Estt.(P-II), dated 31st July, 1986, is enclosed for your guidance. The instructions contained in these consolidated orders may be made applicable mutatis mutandis in the case of fixation of pay of re-employed personnel on Indian Railways. The consolidated orders may be brought into force for all the appointments made on or after 1st July, 1986 and the pay of the re-employed persons may be fixed accordingly.
This issues with the concurrence of the Finance Directorate of the Ministry of Railways (Railway Board).
Copy of Department of Personnel & Training’s
O.M. No.3/1/85-Estt.(P-II), dated 31st July, 1986
addressed to All Ministries/ Departments under the Government of India etc.
Sub: Fixation of pay of re-employment pensioners.
1. At present the orders relating to fixation of pay of re-employed pensioners are scattered in a number of office memoranda issued from time to time. The question of consolidation of the existing orders in a simple body of orders and the rationalisation and simplification of the procedure governing the initial fixation of pay has been under consideration of the Government from time to time. The President is now pleased to decide that in supersession of all the previous orders on the subject, the initial fixation of pay and other benefits on re-employment of ex servicemen pensioners as also civilian pensioners will be governed by the Central Civil Services (Fixation of pay of Re-employed Pensioners) Orders, 1986 as detailed in the Annexure. With reference to all the appointments made on or after the 1st July, 1986 the pay of there-employed pensioners may be fixed as per the enclosed orders.
2. In their application to the employees serving in the Indian Audit and Accounts Department these orders issue in consultation with the Comptroller and Auditor General of India.
Central Civil Services (Fixation of Pay of Re-employed Pensioners) Orders, 1986
1. Short title and commencement:
(1) These orders may be called the Central Civil Services (Fixation of Pay of re-employed – Pensioners) Orders, 1986.
(2) They shall come into force on ……………..
2. Application:
(1) Save as otherwise provided in these orders, these orders shall apply to all persons who are re-employed in Civil Services and posts in connection with the affairs of the Union Government after retirement on pension, gratuity, and/or Contributory Provident Fund benefits from the services of:-
(a) Union Government including Railways, Defence and Posts and Telegraphers,
(b) State Governments and Union Territory Administrations, and
(c) Public Sector Undertakings, Local Bodies, Autonomous Bodies like Universities or Semi-Government Organisations like Port Trusts.
(2) These orders shall also apply to persons re-employed in regular work charged capacity.
(3) Unless otherwise provided, these orders shall also apply to persons re-employed on contract basis.
(4) These orders shall not, however, apply to:
(a) Persons re-employed after resignation, removal or dismissal, provided they have not received any retirement terminal benefits for the pre-employed service;
(b) Persons re-employed in posts, the expenditure of which is not debitable to the Civil estimates of the Union Government;
(c) Persons paid from contingencies;
(d) Persons on casual or daily rated or part time employment;
(e) Persons appointed as Consultants on payment of consolidated fees, and
(f) Retired judges of Supreme Court/ High Courts appointed on Commissions/ Committees who are governed by separate orders on the subject issued from time to time.
3. Definitions:
In these orders, unless, the context otherwise require:-
(1) Pension means the gross monthly pension and/or pension equivalent of Death-cum-retirement gratuity and/or pension equivalent of gratuity or Government’s contribution to Contributory Provident Fund and/or other retirement benefits, if any, payable under the Central Civil Services (Pension) Rules, 1972, or the relevant rules of the Government or body under which the re-employed pensioners was serving prior to his retirement. Where pension has been commuted partly or fully, pension means the gross pension payable prior to commutation.
(2) Pre-retirement pay means the substantive pay last drawn before retirement. However,
(i) Pay drawn in an officiating appointment may be taken into account if the officer had officiated continuously for atleast ten months in the appointment on the date of retirement or he had been appointed to that post on a regular basis in accordance with the prescribed recruitment rules.
(ii) Special pay granted in terms of FR 9(25) shall also be taken into account for determining pre-retirement pay. Such special pay, like officiating pay shall, however, be taken into account towards the pre-retirement pay only if it has been drawn for atleast ten months before retirement. Pay drawn for bolding more than one charge under FR 49 will not be taken into account in determining pre-retirement pay.
(iii) Such portion of deputation allowance, if any, drawn continuously for atleast ten months before retirement, as has been taken into account for pension purposes, shall also be taken into account for determining to last pay drawn before retirement.
(iv) The pay drawn on a tenure post may also be treated as pay last drawn before retirement provided that it was drawn continuously for ten months immediately before retirement.
(v) Personal pay granted for loss of substantive pay or allowed as a special increment for promoting small family norms shall be taken into account in fixing pre-retirement pay irrespective of whether it is drawn for ten months or not as it stands on the same footing as substantive pay. Other types of personal pay shall, however, be accorded the same treatment as officiating pay and taken into account only if the same had been drawn for ten months or more.
(vi) The periods of leave preparatory to retirement and foreign service during the last ten months before retirement may be included in the ten months …………………..for the purpose of computing pre-retirement pay, if it is certified by the competent authority that the officer would have officiated in the post but for his being on such or foreign service.
(vii) An increment accruing in the substantive appointment during earned leave upto 120 days on the first four months of leave on average pay taken as leave preparatory to retirement shall be taken into account for determining the pre-retirement pay. If the officer was holding at the time of retirement a post in an officiating capacity, the increment in respect of that post may be taken into account only if the competent authority certifies that the officer would have held the officiating appointment but for proceeding on leave preparatory to retirement. Promotion to any higher post which the Officer would have got but going on leave will not be taken into account.
(viii) In the case of an officer who retires while on foreign service, the pay that he would have drawn in his parent cadre but for going on foreign service shall be taken as pre-retirement pay. Regard will also be given to the promotions which the officer would have received in his parent service or cadre as provided, for in FR 113, provided that he would have officiated for ten months or more.
(ix) In the case of retired Defence Services Personnel of the rank of JCO, RCO or OR in the Army and corresponding ranks in the Navy or Air Force, the items emoluments mentioned below shall constitute pre-retirement:-
| Army (JCO, NCO or OR) | |
| Old Pay Code | New Pay Code |
| Basic pay | |
| Grade/ trade/ technical and rank corps pay | Pay (including deferred pay) and rank pay |
| Good service/ Good conduct pay | Increment of pay for length of service |
| Proficiency pay/ Special proficiency pay | Good service pay |
| War Service increments, Deferred pay, Personal Allowance (Ris/Sub-Major) Extra Duty pay | Classification pay |
| Navy | |
| Basic pay, Non-substantive pay | Pay (including deferred pay), Good Conduct pay |
| War service increments, Good conduct pay | Higher Pt-II qualification pay |
| Deferred pay | Classification pay |
| Air Force | |
| Basic Pay, Good Service/Good conduct pay | Pay (including deferred pay) |
| Air proficiency pay, badge pay, War Service increments, Deferred pay | Classification pay |
(x) (a) In case of persons who retired before 01.01.1973 and were reemployed after 01.01.1973, the pre-retirement pay will be taken to be the basic pay plus dearness pay plus dearness allowance and interim relief drawn as the time of retirement.
(b) In the case of persons who retired after 01.01.1973 on the pre-revised scale of pay, the pre-retirement pay will be taken to be the basic pay plus dearness allowance and interim relief drawn at the rates in force on 31.12.1972.
(xi) Medical Officers:
In the case of those Medical Officers who were in receipt of Non-Practising Allowance in their last employment, the allowance so drawn will be taken into account for determining the last pay drawn for purposes of fixation of pay in the re-employed post, if such an allowance is admissible in the re-employed posts also. The allowance shall not be taken into account for such purposes where it is not admissible in the re-employed post. Where, however, no Non-Practising Allowance was admissible in the last employment but it is attached to the civil post in which the pensioner is re-employed, such an allowance shall be drawn separately after fixation of pay on re-employment.
4. Fixation of pay of re-employed pensioners:-
(a) Re-employed pensioners shall be allowed to draw pay only in the prescribed scales of pay for the posts in which they are re-employed. No protection of the scales of pay of the posts held by them prior to retirement shall be given.
(b) (i) In all cases where the pension if fully ignored, the initial pay on re-employment shall be fixed at the minimum of the scale of pay of the re-employed post.
(ii) In cases where the entire pension and pensionary benefits are not ignored for pay fixation, the initial pay on re-employment shall be fixed at the same stage as the last pay drawn before retirement. If there is no such stage in the re-employed post, the pay shall be fixed at the stage below that pay. If the maximum of the pay scale in which a pensioner is re-employed is less than the last pay drawn by him before retirement, his initial pay shall be fixed at the maximum of the scale of pay of the re-employed post. Similarly, if the minimum of the scale of pay in which a pensioner is re-employed, is more than the last pay drawn by him before retirement his initial pay shall be fixed at the minimum of the scale of pay of the re-employed posts. However, in all these cases, in non-ignorable part of the pension and pension equivalent of retirement benefits shall be reduced from the pay so fixed.
(c) The re-employed pensioner will in addition to pay as fixed under para (b) above shall be permitted to draw separately any pension sanctioned to him and to retain any other form of retirement benefits.
(d) In the case of persons retiring before attaining the age of 55 years and who are re-employed, pension (including pension equivalent of gratuity and other forms of retirement benefits) shall be ignored for initial pay fixation to the following extent:
(i) in the case of ex-servicemen who held posts below commissioned officer rank in the Defence Forces and in the case of civilians who held posts below Group ‘A’ posts at the time of their retirement, the entire pension and pension equivalent of retirement benefits shall be ignored.
(ii) In the case of service officers belonging to the Defence Forces and Civilian Pensioners who held Group ‘A’ posts at the time of their retirement, the first Rs.500 of the pension and pension equivalent of retirement benefits shall be ignored.
5. Drawal of increments:
Once the initial pay of a re-employed pensioner has been fixed in the manner indicated above, he may be allowed to draw normal increments in the time-scale of the post to which he is appointed as if the pay had been fixed at the minimum or the higher stage, as the case may be (i.e. before an adjustment on account of pension and pension equivalent of other forms of retirement benefits is made) provided that the pay and gross pension/ pension equivalent of other retirement benefits taken together do not at any time exceed Rs.3500 per month.
6. Personnel retiring on Invalid or Compensation Pension:
Persons who are re-employed after obtaining compensation or invalid pension will also be governed by these orders subject to the condition that if the re-employment is in qualifying service, they may either retain their pension, in which cases their former service will not count for future pension, or cases to draw any part of their pension and count their previous service. Pension intermediately drawn need not be refunded. In case the pensioners elect to count their previous service for pension by foregoing their entire pension including death-cum-retirement gratuity, their pay would be fixed by treating them as if they are not in receipt of any pension. The special provision contained in this order regarding grant of Contributory Provident Fund benefits during the period of re-employment and the grant, on termination of the period of re-employment, of the unutilised portion of the refused leave in respect of previous service shall not be extended to them.
7. Military Reservists:
Military reservists who continue to serve in the same civil post in which they were employed during reserve period, shall continue to draw the same rate of pay which they were drawing on the date of transfer to military pension establishment in addition to pension provided the pension is not more than Rs.50 per month.
8. Emeegeney Commissioned Officers and Short Service Commissioned Officers:
Emergency Commissioned Officers and Short Service Commissioned Officers who joined pre-commissioned training or were commissioned after 10.01.1968 may, on their appointment in Government service to unreserved vacancies, may be granted advance increments equal to the completed years of service rendered by them in Armed Forces on a basic pay (inclusive of deferred pay but excluding other emoluments) equal to or higher than the minimum of the scale attached to the civil post in which they are employed. The pay so arrived at should not, however, exceed the basic pay (including the deferred pay but excluding other emoluments) last drawn by them in the Armed Forces.
9. Promotion/Transfer:
On regular promotion/transfer to another post, pay of the re-employed pensioner shall be fixed under the provisions of Fundamental Rules with reference to the pay in the previous re-employment post (before adjustment). Adjustment from the pay so fixed, on account of pension and pension equivalent of retirement benefits shall be continued to be made to the same extent as was being made earlier. This will, however, remain subject to the condition that the pay plus pension and pension equivalent of gratuity/ other forms of retirement benefits shall not exceed Rs.3500 per month at any time.
10. Provisional pay:
(i) Where delays are likely to occur in determining the pension and other pensionary benefits, the re-employed officers, pending final fixation of pay, might be paid their pay on provisional basis for a maximum period of six months after taking into account the maximum pension and gratuity that might be admissible to them on the basis of last pay drawn by them. The sanctioning authorities shall be responsible for ensuring that the provisional pay authorized is not likely to exceed the correct pay that may become admissible. For the purposes of calculating the pension equivalent of the gratuity, the Table as prescribed in the Central Civil Services (Communication of Pension Rules, 1981) from time to time, shall be followed. An undertaking for refunding any amount that might be overpaid as a result of provisional fixation of pay shall be obtained from the re-employed pensioners.
(ii) (a) In cases where considered desirable, a re-employed person may be paid the full pay of the post on provisional basis which would be inclusive of his pension but would exclude an approximate amount of pension equivalent of gratuity/ pension equivalent of employer’s portion of Contributory Provident Fund, as the case may be, provided he executes an agreement in the appropriate form (vide Annexure-I). He shall also be required to furnish acquittance in the prescribed form (vide Annexure-II) indicating receipt of his pay including pension. The acquittance shall be obtained from the re-employed person concerned along with the pay bill every month he is paid provisionally.
(b) When the pension and other retirement benefits are ultimately sanctioned to the re-employed person by the competent authority, the pay shall be fixed after taking into account the pension and pension equivalent of other forms of retirement benefits in accordance with the provisions contained in these orders and he shall have no fresh claims for pensionary benefits in respect of the past periods during which he drew the same along with the provisional pay. The actual amount of pension equivalent of gratuity/ employer’s portion of CPF will be adjusted against the gratuity/ CPF to the extent it is different from the approximate amount deducted from the pay of the post provisionally paid.
(iii) The orders contained in (ii) above shall apply to cases of civil retired Central Government employees re-employed in Central Civil Department and shall not apply to cases of any other categories of retired persons (such as retired persons of Defence Department, Railway Department and State Governments) on their re-employment under Central Government.
11. Allowances:
The drawal,of various allowances and other benefits based on pay shall be regulated with reference to the pay that is fixed on re-employment. Pay for these allowances and benefits will be the pay fixed before deducting the non-ignorable part of the pension and the pension equivalent of the other retirement benefits.
12. Contributory Provident Fund:
Re-employed officers might be permitted to contribute to the contributory provident fund, provided that where the term of re-employment is initially for a year or less but is later extended so as to exceed one year, the Government’s contribution with interest shall be credited only after the completion of one year’s re-employment service. The Government contribution with interest shall be payable for the entire period for which the re-employed officer is allowed to contribute to CPF if such period exceeds one year.
13. Leave and leave salary:
In the case of persons re-employed after retirement, the provisions contained in the Central Civil Service Leave Rules, 1972 shall apply.
14. Gratuity/ Death-cum-retirement gratuity:
Re-employed officers shall not be eligible for any gratuity/ death-cum-retirement gratuity for the period of re-employment except in those cases covered on Rules 18 and 19 of the Central Civil Services (Pension) Rules, 1972, and corresponding Rules of the Defence Services regulations.
15. Retrenched employees:
In the case of ex-servicemen as well as civilians who are retrenched from service and are not granted pension and/or service gratuity, on their appointment to Government service they may be granted advance increments equal to the completed years of service rendered by them on a basic pay equal to or higher than the minimum of the scale attached to the civil post in which they are employed. The pay so arrived at, should not, however, exceed the basic pay drawn by them in the Armed Forces.
16. Fixation of pay of Ex-Combatant Clerks/ Storemen:
(1) In partial modification of the provisions contained in orders 4 and 5 above, ex -combatant Clerks on their re-employment as Lower Division Clerks or Junior Clerks in the Civil posts and Ex-Storemen in the Armed Forces on their re-employment as Storemen in Civil posts shall have the option to get their pay fixed under orders 4 and 5 above in accordance with the procedure indicated in sub para (2) below:
Explanation:
(i) The option once exercised is final. The re-employed pensioner should be asked to exercise the option within the period of three month from the date of his re-employment.
(ii) Ex-combatant Clerks and Storemen referred to in this order will include reservists released at their own request or on compassionate or medical grounds.
(2) Service rendered as Combatant Clerks and Storemen in Armed Forces shall be treated as equivalent to service as lower division Clerks/ Junior Clerks and Storemen respectively in Civil posts, irrespective of the pay drawn in those posts in the Armed Forces. The initial pay in such cases shall be fixed in the time scale of the re-employed posts at a stage equivalent to the stage that would have been reached by putting in the civil posts the number of completed years of service rendered in the posts in the Armed Forces. The pay so fixed will not be restricted to the ‘pre-retirement pay’. The fixation of pay in these cases shall be done by invoking the provisions of Fundamental Rules 27.
Explanation:
(i) For tht purpose of calculation of completed years of service rendered in the Armed Forces the non-qualifying service in the Armed Forces will not be taken into account.
(ii) Pension as defined in Order 3(1) above sball be deducted from the pay fixed under this rule after ignoring Rs.15 thereof and only the net pay is payable.
(iii) If the resultant amount does not correspond to a stage in the scale applicable to the re-employed post, pay may be fixed at the next lower stage and the difference allowed as personal pay to be absorbed in future increases of pay.
(iv) Where the pay in such cases if fixed below the minimum of the pay scale of the re-employed post, as a result of adjustment of amount of pension drawn by him from the Army in excess of Rs.15 per month, increases in pay may be allowed after each year of service at the rate of increment admissible as if the pay has been fixed at the minimum till the minimum of the scale is reached. Thereafter, subsequent increments may be granted in the scale of the re-employed post in the usual manner.
(3) In the case of appointment of persons during released leave/ terminal leave, their pay may be fixed at the minimum of the scale of pay of the civil post of Lower Division Clerk/ Junior Clerk/ Storemen and they will draw leave salary separately from the military authorities. Their pay in accordance with the formula mentioned at (2) above will be fixed from the date of their final discharge from the Army.
(4) The power to fix the pay under this order is delegated to the Administrative Ministries/ Departments of the Government of India. For this purpose the Comptroller and Auditor General of India will have the same powers as the Ministries of the Government of India. Orders fixing the pay in such cases should be issued by invoking the provisions of Fundamental Rule 27.
17. Details to be called for from the Audit Officers:
For the correct determination of pay, competent authorities shall obtain the following information in respect of all officers viz, gazetted, non-gazetted and Group ‘D’ from the Audit/ Pay and Accounts officers who reported on the title to pension etc.
(i) Post held substantively on the date of retirement and substantive pay in that post together with scale of pay.
(ii) Other post, if any, held in an officiating capacity on the date of retirement and officiating pay drawn in the post together with scale of pay.
(iii) In the case of (ii) above, the dates of actual officiation.
(iv) (a) Special pay, personal pay and deputation allowance, if any, drawn on the date of retirement and the period for which it was drawn continuously.
(b) The portion of special Pay etc., counted as emoluments for pension should be indicated.
(c) In the case of special pay drawn in a substantive post; whether it is a part of the prescribed scale of the post and included in the relevant pay schedules.
(v) Gross pension, including amount commuted particulars of pension payment order, to be quoted.
(vi) Death-cum-Retirement or other gratuity and pension equivalent thereof.
(vii) Government contribution to the contributory Provident Fund with interest and the pension equivalent thereof, the Contributory Provident Fund Account number previously allotted and the particulars of the authority issued by the previous Audit/ Pay and Accounts Officer.
After getting the above information, the Competent authority shall fix the pay of the re-employed officer under the provisions of these orders and communicate the same in the sanction letter to the Audit/ Pay and Accounts Officers. In the case of Ministries/ Departments where the integrated accounts set up has been introduced, the information shall be passed on to the concerned Accounts Officer in addition to the above, the competent authorities may give the information to the Audit/ Pay and Accounts Officer regarding particulars of equivalent/ higher posts held by the re-employed government servant which was taken into account for giving the higher starting salary under, paragraph 4(b)(i) of the orders.
18. Delegation of Powers:
(i) The administrative Ministries/ Departments will be competent to fix the pay of a retired officer re-employed under them in accordance with the formula mentioned in order 4 above, provided that the post in which the officer is re-employed already carries a sanctioned scale of pay. Cases in which a scale of pay has not been sanctioned for the post will be referred to the Department of Personnel and Training.
(ii) The Administrative Ministries/ Departments and the Comptroller and Auditor General may delegate their powers to lower authorities at their discretion in respect of appointments which are within the powers of such lower authorities to make.
ANNEXURE-I
Form of agreement to be executed by the Central Government (Civil) Pensioner on his Re-employment
An agreement made ……………………….day of …………………………one thousand nine hundred and …………………..between (herein after called the retired Govt. servant, which expression shall includ his heirs, executors, administrators and legal representatives) on the One part and the President of India (hereinafter called the Government) on the other part.
Whereas the Government has appointed ………………………………………………..a retired Government servant in the post of…………………………………which carries a scale of ………………………………
Whereas in accordance with the orders contained in the Ministry of Finance Office Memorandum No.8(34) Estt.III/57, dated the 25th Nov., 1958 as modified upto date, the initial pay on re-employment plus the gross amount of pension and/or the pension equivalent of other forms of retirement benefits shall not exceed (i) the pay he drew before his retirement or (ii) Rs.3500 whichever is less.
Whereas the pension and/or the pension equivalent of retirement benefits in respect of the retired Government servant’s previous service has not been finally determined and sanctioned by the competent authority before his re-employment.
Whereas the approximate amount of pension equivalent of gratuity/ pension equivalent of employer’s contribution to the Contributory Provident Fund receivable by the retired Government servant has been worked out to be Rs….
p.m.
Whereas the retired Government servant is desirous of receiving pay in the re-employed post each month inclusive of the amount of pension due to him for the relevant period but exclusive of a sum of Rs……………… representing the approximate amount of pension equivalent of employer’s contribution to CPF.
Now, therefore, the Government have agreed to fix his pay at a sum of Rs………………. per month “provisionally” which sum shall include the amount of pension due to him for the relevant period but exclude an approximate amount of pension equivalent of employers Contribution to CPF.
On the condition that,
The provisional pay shall be subject to adjustment on the fixation of his final pay in accordance with the orders referred to above, when the pension equivalent of other forms of retirement benefits in the respect of his previous service are sanctioned to the retired Government servant by the competent authority.
The retired Government servant shall not have any further claim for the pension in respect of the period during which he had drawn the amount thereof included in the provisional pay.
And further that the actual pension equivalent of gratuity/ pension equivalent of employer’s contribution to CPF shall be subject to adjustment from the gratuity/ CPF when sanctioned, to the extent it is different from the approximate amount excluded from the pay in the re-employed post to arrive at the provisional pay.
In witness whereof the retired Government servant has hereinto set his hand the day and year first before written.
Signed by the said ………………………………………………..in presence of ……………………………………………………
ANNEXURE-II
Form of receipt to be given by the re-employed pensioner along with pay bill every month
Received a sum of Rupees ……………………………………………………..being the provisional pay (which is inclusive of the amount of pension accrued to me) in …………………………………………………..(Name of post held and office) for the month of …………………….. I hereby declare and state that my pension for the month of…………………….. may be treated as adjusted against the above payment when the pensionary benefits are sanctioned to me and I will not be entitled to any further payment on account of pension for the said period.
Download Railway Board Circular RBE No.05/1987
Forward reference ⇒ RBE No.