RBE No. 120/2008: Pension – Restoration of Commuted portion of pension

No.F(E)III/2005/PN1/23, dated 22.09.2008

PC. VI-16

Sub: Restoration of 1/3^rd Commuted portion of pension in respect of Government servants who had drawn lump sum payment on absorption in Central Public Sector Undertakings/ Central Autonomous Bodies – Implementation of Government’s decision on Recommendations of 6^th Central Pay Commission.

1.     A copy of Department of Pension & Pensioners’ Welfare (DOP&PW)’s OM No.4/38/2008-P&PW(D), dated 15^th September, 2008 on the above subject, is forwarded herewith for information and compliance. These instructions will apply mutatis mutandis on the Railways also.

2.     A concordance of DOP&PW’s instructions referred to in the enclosed OM and Railway Board’s corresponding instructions is given below.

S.No.	DOP&PW’s instructions	Railway Board’s corresponding instructions
1	OM No.34/2/86-P&PW, dated 05.03.1987	Letter No.F(E)III/87/PN1/7, dated 26.03.1987
2	OM No.4/59/97-P&PW(D), dated 14.07.1998	Letter No.F(E)III/96/PN1/9, dated 18.08.1998 (RBE No. 185/1998)
3	OM No.4/79/2006–P&PW(D), dated 06.09.2007	Letter of even number dated 20.09.2007 (RBE No. 120/2007)
4	OM No.4/79/2006–P&PW(D),  dated 13.05.2008	Letter of even number dated 30.05.2008 (RBE No. 69/2008)
5	OM No.38/37/2008–P&PW(A), dated 01.09.2008	Letter No.F(E)III/2008/PN1/12, dated 08.09.2008 (RBE No. 105/2008)

3. The circulars on pension policy issued by Finance Directorate are also being uploaded on railway website indianrailways.gov.in at the following location for information and necessary action of all concerned:

Railway Board Directorates – Finance – F(E)III CIRCULARS

Ministry of Personnel, Public Grievances & Pensions

Department of Pension & Pensioners’ Welfare

OM No.4/38/2008-P&PW(D), dated 15^th September, 2008

OFFICE MEMORANDUM

Sub: Restoration of 1/3^rd Commuted portion of pension in respect of Government servants who had drawn lump sum payment on absorption in Central Public Sector Undertakings/ Central Autonomous Bodies – Implementations of Government’s decision on Recommendations of 6^th Central Pay Commission

1. The undersigned is directed to say that the restorable 1/3^rd pension of the Government servants who had drawn lump sum payment in respect of pro-rata pension (1/3^rd as well as 2/3^rd) on absorption in a PSU/ Autonomous Body and have become entitled to restoration of 1/3^rd commuted portion of pension as per the provisions of this Department’s OM No.34/2/86-P&PW, dated 5^th March 87 after 15 years from the date of commutation or 01.04.1985 whichever is later, are regulated vide this Department’s OM No.4/59/97-P&PW(D), dated 14^th July 1998, OM No.4/79/2006-P&PW(D), dated 06.09.2007 and dated 13.5.2008 as clarified form time to time.

2.     In pursuance of Government’s decision on the recommendations of Sixth Central Pay Commission, instructions have been issued for revision of pension of pre-2006 pensioners/ family pensioners vide Deptt. of Pension & Pensioners Welfare’s OM No.38/37/2008-P&PW(A), dated 1^st September, 2008. Accordingly, sanction of the President is hereby accorded for revision of 1/3^rd restorable pension of absorbees with effect from 01.01.2006, as explained hereunder:-

(A) As on 01.01.2006, the full pension of the abosrbees shall be notionally revised w.e.f. 01.01.2006 based on full pension as on 31.12.2005 in accordance with the instructions for revision of pension, issued for implementing the 6^th Pay Commission Recommendations vide OM No.38/37/2008–P&PW(A), dated 1^st September, 2008. Benefit of additional pension available to old pensioners will be granted as indicated in para 3 below.

(B) The restorable 1/3^rdpension shall be the sum of the following:-

(i) 1/3^rd of full pension as on 31.12.2005

(ii) Dearness Pension on the full pension as on 31.12.2005

(iii) Dearness Relief upto AICPI (IW) average index 536 (Base year 1982-100) i.e. @ 24% of Basic full pension plus dearness pension.

(iv) Fitment weightage @ 40% of the full pension as on 31.12.2005.

3.     The quantum of 1/3^rd restorable pension as per para 2(B) above shall be further increased in respect of old pensioners as follows:-

Age of pensioner	Additional quantum
From 80 years to less than 85 years	20% of revised 1/3rd restorable pension
From 85 years to less than 90 years	30% of revised 1/3rd restorable pension
From 90 years to less than 95 years	40% of revised 1/3rd restorable pension
From 95 years to less than 100 years	50% of revised 1/3rd restorable pension
100 years or more	100% of revised 1/3rd restorable pension

The amount of additional pension will be shown distinctly in the pension payment order.

4.     Payment of DR shall be on full pension as per instructions issued from time to time and is subject to the condition that the absorbed employee was not re-employed/ employed under the Central Government or State Government or a Corporation/ Company/ Body/ Bank under them in India or abroad, including permanent absorption in such Corporation/ Company/ Body/ Bank at the time of restoration.

5.     The benefit of revision of restored amount of 1/3^rd commuted portion of pension shall be admissible w.e.f. 01.01.2006 or from the date the commuted portion of pension is restored, whichever is later.

6.     This issues with the concurrence of Ministry of Finance (Department of Expenditure) vide their UO No.4.2/11/2008-IC, dated 10.09.2008.

7.     Hindi version will follow.

Download Railway Board Circular RBE No. 120/2008

Forward reference ⇒ RBE No.27/2016, RBE No.96/2016,