Pension: RBE No.132/2009 – Pensioners/ Family Pensioners

No.F(E)III/2008/PN 1/12, dated 17.07.2009

Sub: Implementation of Government’s decision on the recommendations of the Sixth Central Pay Commission – Revision of pension of pensioners/ family pensioners etc.

A copy of Department of Pension and Pensioners’ Welfare (DoP&PW)’s O.M. No.38/37/08-P&PW(A), dated 14th July, 2009 on the above subject is enclosed for information and compliance. These instructions shall apply mutatis mutandis on the Railways also. DoP&PW’s O.Ms dated 01.09.2008, 03.10.2008 and 14.10.2008, referred to in the enclosed O.M., were adopted on the Railways vide Railway Board’s letters of even number dated 08.09.2008 (RBE No.105/2008), 08.10.2008 (RBE No.146/2008) and 18.11.2008 (RBE No.181/2008) respectively. 

Department of Pension & Pensioners’ Welfare

O.M. F. No.38/37/08-P&PW(A), dated 14.07.2009

OFFICE MEMORANDUM

Sub: Implementation of Government’s decision on the recommendations of the Sixth Central Pay Commission – Revision of pension of pre-2006 pensioners.

1. The undersigned is directed to say that in accordance with para 4.2 of this Department’s O.M. No.38/37/08-P&PW(A), dated 01.09.2008 (as clarified vide OM dated 03.10.2008 and 14.10.2008), the revised pension of pre-2006 pensioners shall, in no case, be lower than fifty percent of the minimum of the pay in the pay band plus the grade pay corresponding to the pre-revised pay scale from which the pensioner had retired. In the case of HAG+ and above scales, this will be fifty percent of the minimum of the revised pay scale. Clarifications have been sought by Ministries/ Departments as to whether Non-Practicing Allowance (NPA) is to be added to the minimum of the revised pay band plus the grade pay revised pay scale while considering stepping up consolidated pension on 01.01.2006. The matter has been examined in consultation with the Ministry of Finance (Department of Expenditure).

2. On implementation of the recommendations of Fifth Central Pay Commission, NPA was not added to the minimum of the revised scale of pay as on 01.01.1996 in cases where consolidated pension/ family pension was to be stepped up to 50% / 30% respectively. Hon’ble Supreme Court, in its judgment dated 10.10.2006 in Transfer Case (civil) 72 of 2004- Col. (Retd.) B.J.Akkara vs. UOI others, upheld the validity of OM dated 11.09.2001 of Ministry of Defence not allowing the benefit of NPA in the case of retired medical officers of Armed Forces to be added to the minimum of revised scale of pay as on 01.01.1996 corresponding to the scale of pay held by the pensioner at the time of his retirement. Hon’ble Supreme Court held that NPA is not the part of minimum of the revised pay scale as on 01.01.1996.

3. NPA granted to medical officers does not form part of the Pay Bands/ scales of pay. It is a separate element, although it is taken into account for the purpose of computation of pension. It is, therefore, clarified, that in the case of pre-2006 pensioners NPA is not to be added to the minimum of the revised pay band + Grade pay/ revised pay scale in cases where consolidated pension/ family pension as on 01.01.2006 is to be stepped up to 50% / 30% respectively, in terms of para 4.2 of Department of Pension & PW’s O.M. No.38/37/08- P&PW(A), dated 01.09.2008 (as clarified vide OM dated 03.10.2008 and 14.10.2008).

4. It is impressed upon all the Ministries/ Departments of the Government of India to keep in view the above clarifications while disposing of the cases of revision of pension family pension. They are also advised to dispose the representations received by them from pensioners on the above issues without referring them to this Department.

This issues with the concurrence of Ministry of Finance (Department of Expenditure) vide their U.O. No. 264/EV/2009, dated 09.07.2009.

Download Railway Board Circular RBE No.132/1997 

Forward reference ⇒ RBE No.

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