RBE No. 149/2008: Pension – Revision of Provisions

S.No.

Point raised in regard to Board’s letter No.F(E)III/2008/PN1/13, dated 15.09.2008 (RBE No. 112/2008)

Clarification/ modification

1

Para 5.2 to Para 5.4:-

Whether the recommendation of the Sixth CPC for payment of pension at 50% of the average emoluments received during the last 10 months or the pay last drawn, whichever is more beneficial to the retiring employees, will also take effect from 2^nd September, 2008.

(i) Yes. The Sixth Central Pay Commission has recommended in para 5.1.33 of its Report that linkage of full pension with 33 years of qualifying service should be dispensed with. Once an employee renders the minimum pensionable service of 20 years, pension should be paid at 50% of the average emoluments received during the past 10 months or the pay last drawn, whichever is more beneficial to the retiring employee. In para 6.5.3, the Commission has recommended that the recommendation regarding payment of full pension on completion of 20 years of qualifying service will take effect only prospectively for all Government employees other than PBORs in Defence Forces from the date it is accepted by the government. The recommendation in para 5.1.33 is to be taken as one package and in view of para 6.5.3 of the report of Sixth CPC, the whole recommendation in para 5.1.33 has been given prospective effect.

(ii) It is, however, clarified that the pension of a post 01.01.2006 pensioner shall also not be lower than fifty percent of the sum of the minimum of the pay in the pay band and the grade pay (or 50% of the minimum of the scale in the case of HAG+ and above) from which the pensioner has retired. For example, if a pensioner has retired in the grade pay of Rs.10000 p.m. in the pay band of Rs.37400-67000, his minimum guaranteed pension would be 50% of Rs.37400 + 10000 i.e. Rs.23700). For those who have retired between 01.01.2006 and 02.09.2008, the pension will be reduced pro-rata, where the pensioner had less than the maximum required service for full pension as per rule 69 of Railway Services (Pension) Rules, 1993, as applicable during that period and in no case it will be less than Rs.3500 p.m. In case the pension calculated in accordance with rule 69 of Railway Services (Pension) Rules, 1993 as applicable before 02.09.2008, is higher than the pension calculated in the manner indicated above, the same (higher pension) will be treated as Basic Pension.

2

Para 5.7 and Para 8.3:-

Whether the additional pension/ family pension available to old pensioners would be payable from the date of attaining the age of 80 years or above or from the first day of the month in which the date of birth falls.

The additional quantum of pension/ family pension, on attaining the age of 80 years and above, would be admissible from the 1^st day of the month in which his date of birth falls. For example, if a pensioner/ family pensioner completes age of 80 years in the month of August, 2008, he will be entitled to additional pension/ family pension w.e.f. 01.08.2008. Those pensioners/ family pensioners whose date of birth is 1^st August, will also be entitled to additional pension/ family pension w.e.f. 01.08.2008 on attaining the age of 80 years and above.

3

Para 8.2:-

Whether the period of 10 years for payment of enhanced family pension would also apply in the case of a Railway servant who died before 01.01.2006 and in respect of whom the family was receiving enhanced family pension as on 01.01.2006.

Yes. The period of 10 years for payment of enhanced family pension will count from the date of death of the Railway servant. These orders will, however, not apply  in a case where the period of seven years for payment of enhanced family pension has already been completed as on 01.01.2006 and the family was in receipt of normal family pension on that date.

4

Para 10.1:-

(a) Whether the Constant Attendant Allowance is payable from 01.01.2006 or from 02.09.2008.

(a)  Constant Attendant Allowance is payable from 01.01.2006.

(b) Whether the pensioners who retired on disability pension before 01.01.2006 would also be entitled to Constant Attendant Allowance.

(b) Yes, the pensioners who retired on disability pension before 01.01.2006 and fulfilling the conditions mentioned in para 10.1 would also be entitled to Constant Attendant Allowance.

(c) Whether Dearness Relief will be admissible on Constant Attendant Allowance.

(c)  No.

5

Para 11:-

The Railway servants who retired within 10 months from 01.01.1996 were allowed the benefit of notional increase of 40% on the pre-1996 basic pay for the purpose of calculation of average emoluments. Whether similar benefit would be given in the case of Railway servants who have retired within 10 months from the date of coming over to the revised Pay structure after 01.01.2006.

For the purpose of computing average emoluments in the case of Railway servants who have opted for fixation of pay in the revised Pay Band and retire within 10 months from the date of coming over to the revised Pay Band, basic pay for 10 months period  preceding retirement shall be calculated by taking into account pay as follows:

(i) For the period during which pay is drawn in revised Pay Structure – Pay drawn in the prescribed pay band plus the applicable grade pay or the pay in the pay scale in the case of HAG+ and above.

(ii) For the remaining period during which pay is drawn in pre-revised scale of pay:-

(a) Basic pay plus dearness pay and actual DA appropriate to the basic pay at the rates in force on 01.01.2006 drawn during the relevant period.

(b) Notional increase of the basic pay by applying the fitment benefit of 40% on the basic pay in the pre-revised pay scale.

The clarification (ii) against S.No.1 above will also be applicable in such cases.

Para 11 will stand modified to this extent.

6

Para 12(ii):-

Whether the benefit of calculation of pension @ 50% of emoluments will be available to Railway servants who retain the pre-revised scale of pay and also retire from the pre-revised scale of pay.

The provision in para 12(ii) of the letter dated 15.09.2008 will be applicable in the case of those who retire on or after 02.09.2008. Pension of Railway servants who retain the pre-revised scale of pay and also retired from the pre-revised scale of pay between 01.01.2006 and 02.09.2008 will be calculated at 50% of average emoluments in accordance with the orders in force immediately before 02.09.2008.

Para 12(ii) will stand modified to this extent.