RBE No. 14/2015: Non-Practicing Allowance (NPA) – Pension – Pre-2006 pensioners

No.F(E)III/2008/PN1/12, dated 04.03.2015

Sub: Revision of Pension of Pre-2006 pensioners – Inclusion of Non-Practicing Allowance (NPA) in revision of pension of retired medical officers.

1. A copy of Department of Pension & Pensioners’ Welfare (DOP&PW)’s O.M. No.38/31/11-P&PW(A)(Vol.IV), dated 18.02.2015 on the above subject is enclosed for information and compliance. These instructions shall apply mutatis-mutandis on the Railways also. The Ministry of Finance, Department of Expenditure’s OM No.1/1/2008-IC, dated 30.08.2008 mentioned in DOP&PW’s OM dated 18.02.2015 has been adopted on Railways vide Railway Board’s letter No.PC-VI/2008/I/RSRP/1, dated 11.09.2008 (rbe No. 108/2015).
2. A Concordance of DOP&PW’s instructions referred to in the enclosed OM and Railway Board’s corresponding instructions is given below:-

Ministry of Personnel, Public Grievances and Pensions
Department of Pension & Pensioners’ Welfare
O.M. No.38/31/11-P&PW(A)(Vol.IV), dated 18.02.2015
Office Memorandum

Sub: Revision of Pension of Pre-2006 pensioners – Inclusion of Non-Practicing Allowance (NPA) in revision of pension of retired medical officers.

1. The undersigned is directed to say that in accordance with para 4.2 of this Department’s OM 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 of the minimum of the pay in pay band plus the grade pay corresponding to the pre-revised pay scale, from which the pensioner has retired. In the case of HAG the above scales, this will be fifty percent of the minimum of the revised pay scale. Further, in accordance with OM No.38/37/08-P&PW(A), dated 28.01.2013, the normal pension in respect of Pre-2006 pensioners/ family pensioners as revised w.e.f. 01.01.2006 in terms of para 4.1 or para 4.2 of the aforesaid OM dated 01.09.2008 would also be further stepped up w.e.f. 24.09.2012 to 15% 50% of the sum of minimum of pay in the pay band and the grade pay corresponding to the pre-revised pay scale in which the Government servant had retired, as arrived at with reference to the fitment tables annexed to the Ministry of Finance, Department of Expenditure OM No.1/1/2008-IC, dated 30th August, 2008. In the case of HAG and above scales, this will be 50% of the minimum of the pay in the revised pay scale arrived at with reference to the fitment table annexed to the above OM dated 30.08.2008 of Ministry of Finance (Department of Expenditure).
2. In its judgment dated 27.11.2013 in Civil Appeal No.10640-46/2013 and other connected matters, Hon’ble Supreme Court observed that in accordance with Ministry of Health and Family Welfare’s OM No.45012/11/97/CHS.V, dated 07.04.1998, NPA counts as pay for all Service benefits including retirement benefits. In implementation of the aforesaid judgment of Hon’ble Supreme Court, orders have been issued vide this Department’s OM No.38/31/11-P&PW(A)(Vol.V), dated 14.10.2014 read with OM dated 21.10.2014 that in the case of Pre-1996 retired medical officers NPA @ 25% shall be added to the minimum of the revised scale of pay as on 01.01.1996 corresponding to the pre-1996 pay scales from which the pensioner had retired, in cases where consolidated pension/ family pension was to be stepped up to 50%/ 30% respectively of the minimum of revised pay-scale in terms of OM No.45/10/98-P&PW(A), dated 17.12.1998 read with OM No.45/86/97-P&PW(A)(Pt), dated 11.05.2001.
3. In this Department’s OM of even number dated 14.07.2009 it was clarified that in the case of Pre-2006 pensioners, Non-Practicing Allowance 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 & Pensioner’s Welfare OM No.38/37/08-P&PW(A), dated 01.09.2008 (as clarified vide OM dated 03.10.2008 and 14.10.2008).
4. In the OM No.A.45012/2/2008-CHS.V, dated 29.09.2008 of Ministry of Health & FW, it is provided that NPA will be treated as pay for the purpose of computing Dearness Allowance, entitlement of Travelling Allowance and other allowances as well as for calculation of retirement benefits. Therefore, the ratio of the said judgment dated 27.11.2013 in CA No.10640-46/2013 would be applicable for revision of pension/ family pension of Pre-2006 retired civilian medical officers w.e.f. 01.01.2006 also. Accordingly, the OM No.383708-P&PW(A), dated 14.07.2009 is hereby withdrawn. In the case of Pre-2006 retired medical officers, NPA @ 25% would be required to be added to the minimum of the pay in the revised pay band plus grade pay (or minimum of the pay in the revised pay scale in the case of HAG and above) as on 01.01.2006 corresponding to the pre-revised pay scale from which the retired. In cases where pension/ family pension is to be stepped up to 50%/ 30% of the minimum pay respectively.
5. Similarly for revision of pension/ family pension w.e.f. 24.09.2012 in terms of OM dated 28.01.2013, NPA @ 25% would be required to be added to the minimum of pay in the revised pay band plus grade pay (or minimum of pay in the revised pay scale in the case of HAG and above) corresponding to the pre-revised pay scale from, which they retired as arrived at with reference to the fitment table annexed to the Department of Expenditure’s OM dated 30.08.2008 subject to the condition that the basic pay plus NPA does not exceed Rs.85000.
6. This issues with the approval of Ministry of Finance, Department of Expenditure vide their ID No.721/E-V/2014, dated 02.01.2015 and Ministry of Law P.No.213/Advice ‘A’/2015, dated 29.01.2015.

Download Railway Board Circular RBE No. 14/2015

Forward reference⇒RBE No.