Pension: RBE No.138/2000 – Restoration of 1/3rd Commuted Portion

No.F(E)III/96/PN 1/9, dated 02.08.2000

Sub: Restoration of 1/3^rd commuted portion of pension after 15 years from the date of commutation or 01.04.1985, whichever is later in respect of Government servants who had drawn lump sum payment on absorption in PSU/ Autonomous Body – Implementation of Supreme Court judgment dated 26.04.2000.

In partial modification of the instructions contained in DOP&PW’s OM No.4/59/97-P&PW(D), dated 14.07.1998 circulated on the Railways vide Board’s letter of even number dated 18.08.1998 (RBE No.185/1998) on the above subject, a copy of DOP&PW’s O.M. No.4/29/99-P&PW(D), dt. 12.07.2000 granting dearness relief on full pension from the date of restoration to those Government/ Railway servants who had drawn lump sum payment on absorption in Public Sector Undertakings/ Autonomous Bodies, and had become entitled to restoration of 1/3^rd commuted portion of pension, is sent herewith. Instructions contained therein apply mutatis mutandis on the Railways.

Ministry of Personnel

Public Grievances & Pensions

Department of Pension & Pensioners, Welfare

O.M. No.4/29/99-P&PW (D), dated 12.07.2000

OFFICE MEMORANDUM

Sub: Restoration of 1/3^rd commuted portion of pension after 15 years from the date of commutation or 01.04.1985, whichever is later in respect of Government servants who had drawn lumpsum payment on absorption in PSU/ Autonomous Body – Implementation of Supreme Court Judgment dated 26.04.2000.

1.     Attention is drawn to the instructions contained in this Department’s O.M. No.4/59/97-P&PW(D), dated 14^th July, 1998 on the above subject. In terms of para 4 of this O.M., dearness relief on the revised restored amount of 1/3^rd commuted portion of pension is payable at the same rate at which it has been made admissible to other Central Government pensioners from time to time, subject to the conditions laid down in para 5 of the O.M. The Supreme Court in its Judgment dated 26.04.2000 in I.A. No. 1 in W.P.(C) No.567 of 1995 (with I.A. No. 4 in W.P.(C) No.11855 of 1985, W.P.(C) No.345 of 1999 and W.P.(C) No.576 of 1999) has, inter-alia, ruled that Central Govt. absorbees in PSUs etc. who have become entitled to restoration of 1/3^rd commuted portion of pension are entitled to the payment of dearness relief on full pension at par with the Central Govt. pensioners.

2.     The modalities of implementing Supreme Court Judgment dated 26.04.2000 has been under active consideration of the Government. The President is now pleased to decide that Govt. servants who had drawn lumpsum payment on absorption in a PSU/ Autonomous Body and have become entitled to the restoration of 1/3^rd commuted portion of pension in terms of the Supreme Court Judgment dated 15.12.1995 shall, apart from the payment of revised restored amount of 1/3^rd commuted portion of pension, be also entitled to the payment of dearness relief on full pension from the date of restoration, instead of dearness relief on the revised restored amount of 1/3^rd commuted portion of pension. In other words, dearness relief shall be payable on full pension i.e. the revised pension which the absorbed employee would have received on the date of restoration of 1/3^rd commuted portion of pension had he not drawn lumpsum payment on absorption. The payment of dearness relief will, however, be subject to the conditions laid down in para 5 of O.M. dated 14^th July, 1998.

3.     Para 4 of the O.M. dated 14.07.1998 shall, therefore, be deemed to have been modified as indicated above.

4.     The Pension Sanctioning Authorities, viz., the Ministry/ Department/ Office where the absorbed employee was employed prior to absorption in a PSU/ Autonomous Body will have to work out the arrears payable on account of payment of dearness relief on full pension and issue necessary sanction through the normal channel, viz. CPAO for its payment by the Banks/ Pension Disbursing Authorities etc. Dearness relief/ arrears of dearness relief already paid to the absorbed employees under O.M. dated 14.07.1998 should be adjusted while making payment under these orders. The pension Sanctioning Authority will also have to issue suitable directions through the CPAO etc. to the concerned bank/ PDA for payment of dearness relief on full pension at the rate prescribed by the Government from time to time.

5.     Where the death of an absorbee has taken place after 15 years from the date of commutation of pension or 01.04.1985, whichever is later, and he had become entitled to the benefit of restoration of commuted portion of pension, the family member(s)/ legal heir(s) will be entitled to claim the arrears of dearness relief becoming due in accordance with the provisions contained in this order.

6.     This issues with the concurrence of Ministry of Finance, Deptt. of Expenditure vide their U.O. Note No.41/C/EV/2000, dated 26.06.2000.

Download Railway Board Circular RBE No.138/2000                                             

Forward reference ⇒ RBE No.