Special benefits in cases of death and disability in service – payment of Disability Pension/Family pension

No.45/3/2008-P&PW (F)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners’ Welfare

3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi-110003.
Dated 30th September, 2010

OFFICE MEMORANDUM

Subject: Special benefits in cases of death and disability in service – payment of Disability Pension/Family pension – regarding.

     The undersigned is directed to say that the pension of pensioner/family pensioners who were drawing pension/family pension as on 1.1.2006 under the CCS(EOP) Rules is to be revised in accordance with Department of Pension & Pensioners’ Welfare Office memorandum No.38/37/2008-P&P&W(A) dated 1.9.2008.

2.     The question of modified parity between past and present pensioners, covered under the Central Civil Services (Extraordinary Pension) Rules/Liberalized Pensionary Award Scheme, on the lines of benefits sanctioned for ordinary pensioners/family pensioners, has been under the consideration of the Government. It has now been decided that the revision of pre-2006 pensioners/family pensioners coming under this category would be done as under:-

(A) The past cases of pre-2006 pensioners/family pensioners will be revised under Para 4.1 of this Department’s OM NO. 38/37/2008-P&P&W (A) dated 1.9.2008 as is being done hithertofore and the revised pension on the basis of the provisions of this OM worked out.

(B) The pension/family pension shall also be calculated as on 1.1.2006 by applying the following procedure:

I.      Family Pension for Categories B & C

(a) Where the deceased Government servant was not holding a pensionable post:

          40% of minimum of Pay in the Pay Band plus Grade Pay/minimum Basic Pay in the revised Scale of Pay in case of HAG and above, applicable from 1.1.2006, corresponding to the scale of pay last held by the employee, subject to a minimum of Rs.4550/-

(b) Where the deceased Government servant was holding a pensionable post:

          60% of minimum of Pay in the Pay Band plus Grade Pay/minimum Basic Pay in the revised Scale of Pay in case of HAG and above, applicable from 1.1.2006, corresponding to the scale of pay last held by the employee, subject to a minimum of RS.7,000/-

In case where the widow dies or remarries, the children shall be paid family pension at the rates mentioned at (a) or (b) above, as applicable, and the same rate shall also apply to fatherless/motherless children. In both cases, family pension shall be paid to children for the period during which they would have been eligible for family pension under the CCS (Pension) Rules. Dependent parents/brothers/sisters etc. shall be paid family pension one-half the rate applicable to widows/fatherless or motherless children.

II.           Family Pension under Categories D & E

                    Family pension shall be calculated as the minimum of Pay in the Pay Band plus Grade Pay/minimum Basic Pay in the revised Scale of Pay in case of HAG and above, applicable from 1.1.2006, corresponding to the scale of pay last held by the employee.

(a                     If the Government servant is not survived by his widow but is survived by child/children only, all children together shall be eligible for family pension at the rate of 60% of minimum of Pay in the Pay Band plus Grade Pay/minimum Basic Pay in the revised Scale of Pay in case of HAG and above, applicable from 1.1.2006, corresponding to the scale of pay last held by the employee, subject to a minimum ofRs. 7000/-

(b                     When the Government servant dies as a bachelor or as a widower without children, dependent pension will be admissible to parent without reference to pecuniary circumstances, at the rate of 75% of minimum of Pay in the Pay Band plus Grade Pay/minimum Basic Pay in case of HAG and above, applicable from 1.1.2006, corresponding to the scale of pay last held by the employee, if both parents are alive, and at the rate of 60% if only one of them is alive.

III.           Disability Pension for Categories B & C

(a)           Disability pension would comprise of a service element equal to 50% of minimum of Pay in the Pay Band plus Grade Pay or the minimum Basic Pay in the revised Scale in case of HAG and above, applicable from 1-1-2006, corresponding to the scale of pay last held by the employee, to be reduced proportionately, if the employee did not have required qualifying service for full pension, plus disability element equal to 30% of the same minimum basic pay, for 100% disability.

(b)           For disability less than 100%, disability element shall be reduced proportionately. In cases of disability pension where permanent disability is not less that 60%, the disability pension (i.e. total of service element plus disability element) shall not be less than 60% of the minimum of pay in the Pay Band plus Grade Pay or the minimum basic pay in the revised Scale of pay in case of HAG and above, corresponding to the scale of pay last held by the employee, subject to a minimum ofRs. 7000/- per month.

IV.           Disability Pension for Category D

(a)          Disability pension would comprise of a service element equal to 50% of minimum of Pay in the Pay Band plus Grade Pay/minimum Basic Pay in the revised Scale of Pay in case of HAG and above, applicable from 1.1.2006, corresponding to the scale of pay last held by the employee subject to proportionate reduction in case his qualifying service up to the deemed date of retirement falls short of full qualifying service and disability element equal to 30% of the same minimum of Pay in the Pay Band plus Grade Pay / minimum Basic Pay in the revised Scale of Pay, subject to the condition that the aggregate of service and disability element shall not be less than 80% of the minimum of Pay in the Pay Band plus Grade Pay/minimum Basic Pay, in case of HAG and above, applicable from 1.1.2006, corresponding to the scale of pay last held by the employee, for 100% disability.

(b)           For lower percentage of the disability, proportionate reduction would be made in disability element as provided in OM dated 3.2.2000 as amended vide O.M.No.45/3/2008-P&PW (F) dated 18.11.2008

V.           Disability Pension for Cases under Category E

(a)           Disability pension would comprise of a service element equal to 50% of minimum of Pay in the Pay Band plus Grade Pay or the minimum Basic pay in the revised Scale of pay in case of HAG and above applicable from 1-1-2006, corresponding to the scale of pay last held by the employee subject to proportionate reduction in case his qualifying service upto deemed date of retirement falls short of full qualifying service and disability element equal to the same minimum of pay in the Pay Band plus Grade Payor the minimum Basic Pay in the revised Scale of Pay in case of HAG and above, corresponding to the scale of pay last held by the employee, for 100% disability subject to the condition that the aggregate of service and disability elements shall not exceed the minimum of Pay in the Pay Band plus Grade Pay/minimum Basic Pay in the revised Scale of Pay, in case of HAG and above, applicable from 1.1.2006, corresponding to the scale of pay last held by the employee, for 100% disability.

                    The condition that the aggregate of service and disability elements shall not exceed the minimum of Pay in the Pay Band plus Grade Pay/minimum Basic Pay in the revised Scale of Pay, in case of HAG and above, applicable from 1.1.2006, corresponding to the scale of pay last held by the employee, for 100% disabilitystands withdrawn w.e.f. 1.7.2009.

(b)           For lower percentage of the disability, proportionate reduction would be made in disability element as provided in OM dated 3.2.2000 as amended vide O.M. No.45/3/2008-P&PW (F) dated 18.11.2008.

3.           After the revised pension/family pension has been calculated in accordance with the methods indicated in (A) & (B) above, the higher of the two shall be granted as revised pension w.e.f. 1.1.2006.

4.           All other terms and conditions in the O.M. dated 3.2.2000, as amended vide O.M. No.45/3/2008-P&PW (F) dated 18.11.2008 shall remain unchanged.

5.           This issues with the concurrence of the Ministry of Finance, Department of Expenditure U.O. No.403/EV/2010 dated 28.7.2010.

6.           In so far as persons belonging to the Indian Audit & Accounts Department, these orders issue after consultation with the Comptroller & Auditor General of India.

(Tripti P Ghosh)
Director

www.persmin.nic.in

Anomalies in pension of majors removed - Armed Forces Tribunal (AFT)

Anomalies in pension of majors removed
Those who retired before 2006 to benefit
Vijay Mohan
Tribune News Service

Chandigarh, September 14
Holding that the pension shall not be less than 50 per cent of the minimum pay within the pay-band, the Armed Forces Tribunal (AFT) today allowed a petition filed by majors and equivalents that would now entitle them to enhanced pension.

With the removal of existing anomalies that had resulted in majors, who retired prior to 2006, getting pension lower than even junior commissioned officers, they would now be paid an additional basic pension of about Rs 5,000 per month, besides consequential benefits. The order affects a substantial number of officers of the three services who had retired in the rank of major prior to 2006.

After the implementation of the Sixth Pay Commission (SPC), the pension of majors was fixed at Rs 14,100 per month. This was less than what JCOs, four ranks below their grade, have been getting (Rs 16,145).

The anomaly in pension fixation arose because the minimum of the entire pay-band (PB-3) was taken into account while fixing the pension instead of considering the minimum of the pay-band applicable to majors. PB-3 (Rs 15,600-39,100) includes officers of the ranks of lieutenant to major and equivalents in other services. The minimum scale of major post-SPC is Rs 23,810.

The petitioners had contended that the existing basic pay, inclusive of grade pay and military service pay, worked out to be Rs 36,410, hence their pension at the stipulated 50 per cent of basic worked out to be Rs 18,205 per month, to which they were entitled.

In December, 2004, all majors with 13-year experience and having requisite qualifications were promoted to the rank of lieutenant colonel (time scale) and the policy has continued since then. Following the implementation of the Sixth Pay Commission, all 35 categories of services were merged into four pay bands in which lieutenant colonels were initially placed in pay band-3, but later moved to pay band-4.

The pension of lieutenant colonel is fixed at Rs 25,700 whereas that of majors who retired before 2006 is Rs 14,100, creating a huge difference of Rs 11,600, the petitioners claimed. Prior to the Sixth Pay Commission, the difference was just Rs 950.

In fact, the Department of Pensions (DoP) had raised the issue of incorrect interpretation of pension fixation rules of pre-2006 majors with the Department of Expenditure (DoE) and that it needed to be corrected. Despite the fact that the ministers of finance as well as personnel were in favour of the correction, the bureaucracy in the Ministry of Finance put a spanner in the work. The case was taken up time and again by the DoP, but was always rejected by the DoE.

Source: Tribuneindia

Admissibility of full pension to Railway servants retiring on or after 01.01.2006

PC-VI -- 223/2010
RBE No.118/2010

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

No. F(E)III/2008/PN1/13

New Delhi, dated 10.08.2010

The GMs & FA & CAOs,
All Zonal Railways & Production Units,

(As per mailing list).

Sub:     Admissibility of full pension to Railway servants retiring on or after 01.01.2006 - regarding.

***

            Clarifications are being sought from this office by the Zonal Railway Administrations in connection with the revised instructions issued by the Department of Pension and Pensioners' Welfare regarding grant of full pension to Government servants retiring on or after 01.01.2006, and its applicability to those employees who are absorbed in Public Sector Undertakings/Autonomous bodies.

2.        It is informed that the Department of Pension and Pensioners' Welfare, vide their O.M. dated 10.12.2009, circulated on the Zonal Railways etc. vide this office letter of even number dated 15.12.2009, has dispensed with the linkage of full pension with 33 years of qualifying service with effect from 01.01.2006, instead of the earlier to pension cut off date of 02.09.2008. As such, all employees becoming entitled to pension on completion of 10 years of qualifying service in accordance with Rule 69(2) of the Railway Service (Pension) Rules, 1993, on or after 01.01.2006, are eligible for pension equal to 50% of the emoluments or average emoluments, whichever is more beneficial to them. With the issue of these instructions, the concept of pro-rata pension has ceased to exist with effect from 1.1.2006. This provision is equally to those employees who have been permanently absorbed in PSUs/Autonomous Bodies and have since become entitled to monthly pension in terms of the extant instructions.

3.          All the Zonal Railways etc. are, therefore, advised to settle the pending cases accordingly.

4.          Please acknowledge receipt.

s/d
(Sunil Bhardwaj)
Deputy Director Finance (Estt.)III
Railway Board.

More details...
www.indianrailways.gov.in

Ex-gratia lump sum compensation ceiling is removed to the families of deceased Central Government Employees

The Central Government has announced today that there is no ceiling for grant of ex-gratia lump sum compensation to the families of deceased Central Government Employees.

There is a good move by the Government to their employees that the restriction of ceiling for the compensatin of Rs.20 lakhs(each individual) is removed.

No.45/7/2008-P&PW (F)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Pension and Pensioners Welfare
******

3^rd, Floor, Lok Nayak Bhawan,
Khan Market, New Delhi-II0 003
Dated the 12^thJuly, 2010

OFFICE MEMORANDUM

Subject:   Implementation of the Government's decision on the recommendation of the Sixth CPC-Revision of provisions regulating special benefits in the cases of Death and Disability in service - payment of ex-gratia lump sum compensation to families of central Govt.employees - modification - regarding -

           The undersigned is directed to say that in this Department's Office Memorandum of even number dated 16^thMarch, 2009, it was provided that ex-gratia lump sum compensation to the families of deceased Government servants including from sundry Government sources, such as the Prime Minister's Relief Fund, Chief Minister's Relief Fund, etc. should not exceed the aggregate of Rs. 20 lakhs in each individual case. Para 12 of Annexe to this Department's OM 45/55/97-P&PW(C) dated 11^th September, 1998 was modified to that extent.

2.      The matter has been further reviewed and it has now been decided that there will be no ceiling for grant of ex-gratia lump sum compensation in terms of Department of Pension & Pensioners' Welfare's OM No. OM 45/55/97-P&PW(C) dated 11^thSeptember, 1998 read with OM NO.38/37/08-P&PW(A) dated 2^nd September, 2008 and OM No.45/7/2008-P&PW (F) dated 16^th March, 2009.

3.     The above revised provision will be effective from 1.1.2006.

4.     All other terms and conditions in the O.M. dated 11^th September, 1998 shall remain unchanged.

5.     This issues with the concurrence of the Ministry of Finance, Department of Expenditure U.O. No. 361/EV/2010 dated 4^th June, 2010

6.      In so far as persons serving in the Indian Audit & Accounts Department, these orders issue after consultation with the Comptroller & Auditor General of India.

(Tripti P Ghosh)
Director(PP)

www.persmin.nic.in

Revision of pension of pre-2006 pensioners/family pensioners - Additional pension reg.

No.38/37/08-P&PW(A)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners’ Welfare
Lok Nayak Bhawan, New Delhi-110003

Dated the 25^th June, 2010.

OFFICE MEMORANDUM

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

     The undersigned is directed to say that in this Department’s O.M. of even number dated 21.5.2009 and 11.8.2009 it was provided that in case the information regarding date of birth/age is not available in the PPO or the office records, certain documents would be accepted as proof of date of birth/age for payment of additional pension/family pension on completion of age of 80 years and above. It was also provided that the Pension Disbursing Authority/Bank will make payment of additional pension/family pension in the above manner, on provisional basis, up to a period of three months from the month in which the proof of age/date of birth is submitted by the pensioner/family pensioner. In such cases, the Pension Disbursing Authority/Bank will immediately send one copy each of the document submitted by the pensioner/family pensioner to the Pay and Account Officer/CPAO for formal authorisation of the additional pension/family pension. The Pension Disbursing Authority/Bank will make payment of additional pension/family pension beyond a period of three months only on receipt of such an authorisation from the Pay and Account Officer.

2. Certain Pension Disbursing Banks to whom the documentary proof of age was submitted by the pensioners/family pensioners have informed that many Pay & Accounts Offices, to whom the same is forwarded as per OM of even number dated 21.5.2009 ,have not communicated to them their final authorisation in accordance with the above instructions. These Banks are, therefore, finding it difficult to continue the payment of additional pension beyond three months in the absence of the formal authorisation. The PAOs who are receiving the proof of age may get it sanctioned from HOO / HOD as per procedure invariably. In case the pensioner/family pensioner is unable to submit any of the documents mentioned in OMs dated 21.5.2009 and 11.8.2009 but claims additional pension based on some other documentary evidence, such cases will be submitted to the administrative Ministry. If the administrative Ministry is satisfied about the claim of the pensioner/family pensioner, it will authorise additional pension/family pension accordingly. The decision of the Administrative Ministry in this regard will be final.

3.CGA is requested to advise all Pay & Accounts Officers to take immediate action for getting the additional pension sanctioned from Head of Office/HODs so that the final authorisation of the additional pension may be done by the PAOs.

(Tripti P. Ghosh)
Director

persmin.nic.in

Inclusion of names of the widowed or divorced or unmarried daughter/ parents / dependent disabled etc., in the PPO – PProcedure for – Regarding

No. 1/6/08-P&PW (E)
Ministry of Personnel, P.G. & Pensions
Department of Pension & Pensioner’s Welfare

Lok Nayak Bhawan
Khan Market, New Delhi-110003
Dated: 22^nd June, 2010

OFFICE MEMORANDUM

Subject:      Inclusion of names of the widowed or divorced or unmarried daughter/ parents / dependent disabled siblings (i.e. brothers and sisters/) in the PPO – Procedure for – Regarding.

          The undersigned is directed to state that it was clarified earlier vide this Department’s O.M.No. 1/21/91-P&PW (E) dated 20.1.1993 that the revised PPO format introduced w.e.f. 1.1.1990 contains provision for entry of details of all members of the family of the pensioner. The PPOs issued prior to 1.1.90, however, do not contain the names / details of children of the pensioner. In cases where the names of eligible children have not been mentioned in the PPO for various reasons, the pensioner can furnish a list of eligible children to the pension sanctioning authority and obtain an acknowledgement thereof from that authority. This acknowledgment will be produced at the time of submission of family pension claim to the pension sanctioning authority. However, the production of an acknowledgment will not be a pre-condition to the processing of claim for family pension. Even the spouse of the dead Government servant/ pensioner can furnish the details of such Children, if not furnished by the Government servant/pensioner earlier, to the pension sanctioning authority as clarified vide this Department’s O.M. No. 1/21/91-P&PW (E) dt. 15.1.1999.

2.          Representations have been received in this Department from Pensioners/family pensioners and Pensioners Associations indicating the reluctance on the part of Ministries / Departments / Organisations to include the names of eligible family members (i.e. widowed / divorced / unmarried daughters; parents and dependent disabled siblings (i.e. brothers and sisters) in the PPO thereby delaying the sanction of family pension to such eligible family members. This is not only a source of frustration and denial of rightful claim to such eligible family members but at times causes undue hardship to them.

3.        With a view to streamlining and cut delays in the pension sanctioning process, it is hereby clarified that in cases wherein eligibility of family members (i.e. divorced or widowed or unmarried daughter/ parents/ dependent disabled siblings (i.e. brothers/sisters) occurs after issue of the PPO, the pensioner himself or his/her spouse may intimate the details/ names of divorced or widowed or unmarried daughter/parents/dependent disabled siblings (i.e. brothers and sisters), to the pension sanctioning authority as per the procedure indicated in para (1) above. Similarly, in cases where the pensioner or his/her spouse has expired, the widowed or divorced or unmarried daughter/ parents/ dependent disabled sibling can themselves intimate such details to the pension sanctioning authority. However, the family pension in such cases can be processed by the pension sanctioning authority even without such intimation / acknowledgment, if sufficient proof of entitlement is produced by the claimant and all other conditions for grant of family pension are fulfilled.

4.        This issues with the concurrence of the Ministry of Finance, Department of Expenditure vide their U.O. No.368/EV/2010 dated 15.06.2010.

5.        Hindi version will follow.

Yours sincerely
(K.S. Chibb) Deputy Secretary to the Govt. of India

OM

Retirement benefits of Government servants who were on Extraordinary leave/unauthorized absence/suspension as on 1.1.2006

No. 38 /37 /08 – P&PW(A)
GOVERNMENT OF INDIA
Ministry of Personnel Public Grievances and Pensions
Department of Pension and Pensioners Welfare
********

Lok Nayak Bhawan,
Khan Market, New Delhi – 110 003
Dated 15th June, 2010

OFFICE MEMORANDUM

Sub:     Regulation of pension and other retirement benefits of Government servants who were on Extraordinary leave/unauthorized absence/suspension as on 1.1.2006 and retired/died thereafter without joining duty

      The undersigned is directed to say that in accordance with Rule 33 of the CCS (Pension) Rules, for calculation of pension, the expression emoluments means basic pay as defined in Rule 9 (21) (a) (i) of the Fundamental Rules which a Government servant was receiving immediately before his retirement or on the date of his death. In accordance with Note 3 under this rule, if a Government servant immediately before his retirement or death while in service had been absent from duty on extraordinary leave or had been under suspension, the period whereof does not count as service, the emoluments which he drew immediately before proceeding on such leave or being placed under suspension shall be the emoluments for the purposes of this rule.

      Doubts have been raised in regard to the manner in which the pension and other retirement benefits of Government servants, who were on extraordinary leave/unauthorized absence/suspension has been examined in consultation with the Ministry of Finance (Department of Expenditure) and the following clarifications are issued:

Category of Government servant	Manner in which pension and other pensionery benefits are to be regulated
Government servant, who was on extraordinary leave/unauthorized absence – the period whereof does not count as qualifying service – as on 1.1.2006 and retired/died thereafter without joining duty.	In accordance with Rule 33 of CCS(Pension) Rules, 1972, the basic pay which he drew immediately before proceeding on such leave, shall be the emoluments of the purpose of pension The pension/family pension thus calculated will be revised in accordance with the instructions contained in this Department’s O.M. No. 38/37/08-P&PW(A) dated 1.9.2008 and will be paid to the pensioner/family pensioner from the date it becomes due. For the purpose of gratuity, the emoluments shall also include Dearness Allowance admissible on the date of retirement/death of the Government servant. The pension/family pension/commutation of pension and gratuity will be regulated in accordance with the rules/instructions applicable before 1.1.2006.
Government servant, who was on extraordinary leave – the period whereof counts as qualifying service – as on 1.1.2006 and retired/died thereafter without joining duty.	The pay of such a Government servant will be notionally revised w.e.f. 1.1.2006 and this notionally revised basic pay will be reckoned as emoluments for the purpose of pension For the purpose of gratuity, the emoluments shall also include Dearness Allowance admissible on the date of retirement/death of the Government servant. His pension/family pension, commutation of pension and gratuity will be regulated in accordance with the instructions contained in this Department’s O.M. No. 38/37/08-P&PWA() dated 2.9.2008 and will be paid to the pensioner/family pensioner from the date it becomes due.
Government servant, who was under suspension as on 1.1.2006 and retired thereafter without joining duty.	Such a Government servant, on retirement, is entitled to only provisional pension. The emoluments which he drew immediately before suspension shall be the emoluments for the purpose of provisional pension. This provisional pension will not be raised until the conclusion of the departmental / judicial proceedings and issue pf final order thereon.

3.       These order issue with the concurrence of Ministry of Finance (Department of Expenditure) vide their U.O.No. C-33/EV/2010 dated 13.5.2010

4.       In their application to the persons belonging to Indian Audit and Accounts Department these orders issue in consultation with the Comptroller and Auditor General of India.

(Tripti P.Ghosh)
Director

Exemption for gratuity: effective date of enhancement

Exemption for gratuity: effective date of enhancement

Payment of Gratuity Act has substituted Rs. 3.50 lakh to Rs. 10 lakh in Sec. 4 of that Act. When does it come into effect?

Payment of Gratuity (Amendment) Act, 2010, has been amended coming into force with effect from a date to be notified by the Central Government. The Amendment Act itself became law with effect from May 17, 2010. Notification No.S.O. 1217(E) dated May 24, 2010, appoints this date, that is May 24, 2010, as the date on which the Amendment Act comes into force. Only retirees on or after May 24, 2010, would have the benefit of higher ceiling of Rs. 10 lakh under Sec. 10(10)(ii) of the Act.

Sec. 10(10)(ii) of the Income-tax Act is applicable for those governed by the Payment of Gratuity Act. Exemption will be the amount vide sub-sections (2) and (3) of Sec. 4 of the Payment of Gratuity Act or the ceiling, whichever is lower. Government servants were already exempt under Sec. 10(10)(i) applicable to them up to Rs. 10 lakh, when the ceiling was raised for them from Rs. 3.50 lakh by a notification dated September 2, 2008, amending Rule 50 with retrospective effect from January 1, 2006. The delay of nearly three-and-half years as between Government servants and those covered by Payment of Gratuity Act for this ceiling is not justified because terminal benefits do not have the character of income and they are only deemed as income, subject to ceiling under Sec. 10(10) adopting what is given to the government servants as a benchmark of reasonable limit for exemption.

For others, relief would have to accord with the formula under Sec. 10(10)(iii), subject to the ceiling notified by the Central Government under this provision. The limit was raised for them to Rs. 3.50 lakh vide Notification No. 10772 dated January 20, 1999, with retrospective effect from September 24, 1997. Increase in limit for this class of persons is now awaited.

There is no justification for discrimination as between different classes of employees with reference to retirement date between government servants and others.

Since no guidelines as regards the choice of date for extending the ceiling are available in the statute, one would expect that the decision taken for government servants as regards tax treatment of retirement benefits should have been made applicable for others as well with effect from the same date.

S. RAJARATNAM

Source: The Hindu

Postal Department Launches New Pension Scheme for all.

Postal dept launches new pension scheme

The postal department has launched a new pension scheme for the public, specially service holders, who are able to deposit a minimum of Rs 500 per month, up to the age of 55 years.

According to the project officer of the postmaster general office, Saryug Prasad, the amount deposited by the beneficiaries would be invested in different unit-linked pension funds of the SBI, LIC, UTI and the quantum of pension would be fixed as per the amount earned from those deposited funds. He hoped the rate of pension amount would be higher than the present one.

He said the postal pension scheme has a two-tier provision. In the first tier, one can deposit a minimum of Rs 6,000 in a year in at least four instalments or Rs 500 per month. There would be no limit to subscriptions in any tier. The deposited amount would not be withdrawn prematuredly under the first-tier system.

But, under the two-tier system, a minimum of Rs 1,000 would have to be deposited and it would have the facility of premature withdrawals. It will work as a savings bank besides offering the benefit of pension.

Source; Times of India

Gratuity Act raises unions’ hackles

Gratuity Act raises unions’ hackles

The Payment of Gratuity (Amendment) Act, 2010, which was passed by Parliament in its last session, has raised the hackles of various trade unions.

The Act has raised the maximum limit of gratuity payable to an employee from Rs 3.5 lakh to Rs 10 lakh. Then why are the trade unions angry? It is the date of implementation of the Act, which has annoyed workers engaged in the private sector, public sector undertakings and the banking sectors, among others.

The upper limit of the gratuity for government employees was raised to Rs 10 lakh with effect from January 1, 2006, when the recommendations of the Sixth Pay Commission came into effect.

Immediately after that various trade unions demanded that a similar provision should be made for the employees of the private sector and public sector undertakings.

Conceding the demand, the government introduced the Payment of Gratuity (Amendment) Bill in Parliament. While passing the Bill, Parliament said the Act would come into force on such date “as the Central Government may, by notification in the official gazette appoint.”

The Act received the assent of the President on May 17 last and the Union Ministry of Labour and Employment notified it on May 24, stating that the Act would become effective from that day.

The trade unions say the notification is discriminatory. While for the government employees the maximum limit of gratuity has been revised with effect from January 1, 2006, for those of the private sector and the public sector undertakings it would be from May 24. Thus, the employees of these sectors, who retired between January 1, 2006 and May 24, 2010, would be sufferers.

SR Khatri, general secretary of the State Bank of India Employees Organisation, said the government had yielded to the pressure of various organisations of private employers, who did not want to pay enhanced gratuity to their employees retiring before May 24. He said the trade unions would agitate against this discrimination.

TN Goel, president of the State Bank of Indian Officers Federation, said it was highly unfair to the employees of the public sector banks, whose pay was revised with effect from November 2007. The notification should have taken care of this fact.

State secretary of the Haryana CITU Surender Malik said the enhanced gratuity should be payable to all with effect from January 1, 2006. He also demanded that various retirement benefits should not be subject to income tax.

Source: Tribuneindia

Fixed Medical Allowance for Pensioners - Staff Side demanded Rs.600 per month - Official Side granted only Rs.300 per month

Fixed Medical Allowance-DOP&T Order

DOP&T issued an OFFICE MEMORANDUM dated 26th May 2010, Granting Rs.300/- as Fixed Medical Allowance (FMA) to the Central Government Pensioners residing in areas not covered under CGHS.

This issue has been raised in the National Council Meeting and the staff side demanded that Fixed Medical Allowance should to be enhanced up to Rs.600/-.Sources told that the Chairman, National Council on his response to this issue informed the Staff Side that the Ministry of Finance considered to grant Rs.300/-. But the Staff side National Council not agreed with this proposal.

Two weeks after the meeting, now the order has been issued, in which it has been stated that “the demand for enhancement of FMA has been under consideration of the Government for some time past. Sanction of the President is hereby conveyed for enhancement of the amount of FMA from Rs.100/- to Rs.300/- per month. The other conditions for grant of FMA shall continue to be in force.”

These orders will take effect from 01.09.2008.

Source: GServants

Regulator pitches for tax relief on New Pension Scheme to make it attractive

The interim pension regulator has sought tax relief on investments in the New Pension Scheme (NPS) to make it more attractive to employees of private sector firms.

The interim pension regulator has sought tax relief on investments in the New Pension Scheme (NPS) to make it more attractive to employees of private sector firms.

The Pension Fund Regulatory and Development Authority (PFRDA) has written to the finance ministry seeking level playing field for NPS with other long-term savings schemes that will get tax benefits under the proposed Direct Taxes Code. “All we want is equal treatment,” a PFRDA official said.

NPS is currently under the Exempt-Exempt-Tax system, which means investment will be taxed when it is withdrawn. Provident fund and many of the small savings schemes are under the Exempt-Exempt-Exempt (EEE) regime, and are not taxed at any point.

“If the finance ministry plans to continue with the EEE regime for long-term saving schemes, we want the NPS also to get the same treatment,” the official said, requesting anonymity. “Several multinational companies are talking to us. We need more clarity on the tax treatment,” he said.

The pension regulator has, in its letter to the central board of direct taxes (CBDT), said tax benefits will make the scheme more attractive and will help increase its share.

While a few public sector units such as Nalco and Damodar Valley Corporation have already transferred a portion of their superannuation funds to the NPS, many private sector companies and public sector banks are also exploring the option as it would rid them of the headache of administering and managing the funds.

“This would be a good step. It would allow private companies to move their superannuation funds to the NPS,” said Amit Gopal, vice-president of pension consultant India Life Capital.

The PFRDA has further requested for an additional window under Section 80C of the Income Tax Act for contributions by subscribers’ employers.

Investments in specified schemes up to Rs 1 lakh are exempt under Section 80 C of the Income Tax Act. The budget for this year has given an additional exemption of Rs 20,000 for investments in infrastructure schemes.

Under Indian laws, companies with over 100 employees have to contribute 12% of an employee’s salary to the provident fund with an equal contribution from the employer.

The NPS, a defined contribution superannuation scheme for government employees, was thrown open to the private sector in May last year. The scheme offers subscribers the flexibility to decide their investment portfolio as well as choose between fund managers.

With weighted returns of over 12% annually, NPS is expected to be the ideal long-term saving instrument for workers in the unorganised sector. Its low fund management fees of 0.009% make it attractive.

The scheme, however, has managed only 6,500 private subscribers, partly because it does not enjoy some tax benefits given to private provident fund and private super annuation funds.

Source: The Economic Times

Grant of Fixed Medical Allowance (FMA) to the Central Government Pensioners residing in areas not covered under CGHS

N0.4/25/2008- P&PW (D )
GOVERNMENT OF INDIA
MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES & PENSIONS
(DEPARTMENT OF PENSION & PENSIONERS/ WELFARE)

3rd Floor, Lok Nayak Bhawan, Khan Market,
New Delhi-110 003, Dated the 26 May 2010.

OFFICE MEMORANDUM

Subject: Grant of Fixed Medical Allowance (FMA) to the Central Government Pensioners residing in areas not covered under CGHS.

The undersigned is directed to say that in pursuance of Government's decision on the recommendations of Fifth Central Pay Commission, the Govt. had issued instruction vide this Department's O.M. No.45/57/97-P&PW(C) dated 19.12.97 for grant of Fixed Medical Allowance @ Rs.100/- per month to the Central Government pensioners/family pensioners residing in areas not covered under Central Government Health Scheme administered by the Ministry of Health & Family Welfare and corresponding health schemes administered by other Ministries/Departments for their retired employees for meeting expenditure on their day-to-day medical expenses that do not require hospitalization. Further clarifications were issued vide this Department's O.M. Nos. 45/57/97-P&PW(C) dated 24.8.98, 30.12.98 and 18.8.99.

2. The demand for enhancement of FMA has been under consideration of the Government for some time past. Sanction of the President is hereby conveyed for enhancement of the amount of FMA from Rs.100/- to Rs.300/- per month. The other conditions for grant of FMA shall continue to be in force.

3. These orders will take effect from 01.09.2008.

4. These orders are issued with the concurrence of the Ministry of Finance (Deptt. of Expenditure) vide their I.D. Note No 347/E.V/2010 dated 14.5.2010 and in consultation with the Comptroller and Auditor General of India vide their UO No. 36-Audit (Rules)/28-2-9 dated 26.5.2010.

6. Hindi version will follow.

(Rajsingh)
Director

Office Memorandum

Payment of Dearness Relief to Railway pensioners

PC - VI - 129
RBE No. 134 / 2009

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

No.F(E)III/2008/PN1/13

New Delhi, Dated 20-07-2009

The General Managers/CAOs,
All Indian Railways and Production Units.
(As per Mailing lists)

Subject:-     Payment of Dearness Relief to re-employed pensioners and employed family pensioners.

*****

A copy of Department of pension and pensioners' Welfare (DOP&PW)'s O.M. No. 38/88/2008-P&PWA(A) dated 9th July, 2009 on the above subject is enclosed for information and necessary action. These instructions shall apply mutatis mutandis on the Railways also. DOP&PW's O.Ms dated 2.7.1999 and DOP&T's OM dated 11.11.2008, referred to in the enclosed O.M. were circulated / adopted on the Railways vide this office letters No. F(E)III/99/PN1/21 dated 5.08.1999 and No. PC-VI/2009/I/RSRP/2 dated 30.4.2009.

  

Please acknowledge receipt.

  

(Sunil Bhardwaj)
Deputy Director Finance (Estt.)III,
Railway Board.

Implementation of Sixth Central Pay Commission - Revision of pension of pensioners / family pensioners etc.

PC - VI - 128
RBE No. 132 / 2009

  

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

No.F(E)III/2008/PN1/12

  

New Delhi, dated 17-07-2009

The General Managers/CAOs,
All Indian Railways and Production Units.
(As per Mailing lists)

  

Subject:-     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&PWA(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 1.9.2008, 3.10.2008 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, 08.10.2008 and 18.11.2008 respectively.

  

Please acknowledge receipt.

  

(Sunil Bhardwaj)
Deputy Director Finance (Estt.)III, Railway Board

Expedite pension and arrears of ex-servicemen: Antony to finance controllers

Expedite pension and arrears of ex-servicemen: Antony to finance controllers

The Defence Minister Shri AK Antony has called for early disbursal of revised pension and arrears to Ex-Servicemen. Inaugurating the Controllers’ Conference of the Defence Accounts Department here today, Shri Antony asked the Defence Finance officials to expedite and further streamline the pension system for the Armed Forces personnel.

“Even now, I am getting a lot of complaints from people that they are not getting pensions... Considering the past, things have improved, but even then complaints are there still... So you must take all steps possible so that they get their dues at the earliest,” Shri Antony said.

Commending the Defence Accounts Department for facilitating the procurement of weapons and systems, Shri Antony noted that the capital expenditure, utilised last year, has been an all-time record. He called for transparent, timely and judicious use of Defence Expenditure. He said that the Government has tried to infuse more transparency in the huge Defence outlay, which is over Rs. 1.52 lakh crores for the current financial year.

“Defence expenditure and procurement issues are complex and time-consuming and have a direct bearing on our national security. We have tried to infuse more transparency and efficiency into our procedures and systems. It is my firm belief that expenditure of public money must have an appropriate system of checks and balances”, he said.

In his address to the gathering, the Minister of State for Defence Dr. MM Pallam Raju said that the Defence Pension Adalats have become an effective mechanism for grievance redressal on the ground. He hoped that the pension arrears for pre-2006 PBORs would soon be disbursed. Dr. Pallam Raju said that the Principal Controller of Defence Accounts (PCDA) would soon roll out the e-ticketing system for air travel. The PCDA Rail Booking System for e-ticketing would be introduced in another 200 Armed Forces units by next month and all units would be covered by the yearend, added Smt Nita Kapoor, Controller General of Defence Accounts (CGDA). The Secretary Defence Finance, Smt Indu Liberhan stressed the need for continuing institutionalized interaction between the Defence Finance and the three Services. The Comptroller and Auditor General of India Shri Vinod Rai said that since Defence Finance relates to a sensitive national security concern, the keyword for its success is the outcome and not simple accounting.

The Chief of the Army Staff General VK Singh and Scientific Advisor to the Defence Minister Dr. VK Saraswat were among the dignitaries present at the inauguration of the three-day biennial conference.

PENSION CASES CANNOT BE DELAYED

If delayed, pay compensation for it, pay for the mental agony and stress.

Udupi District (Karnataka) Consumer Disputes Redressal Forum

[Case Nos. CC 134/2009 and CC 138/2009.]

Judgement delivered on 22*3*2010.

Case history:

BSNL Corporate office issued orders on 29*5*2008 for merger of DA in pay of employees with effect from 1*1*2007. Those who retired on or after 1*1*2007 should get its benefit in pension also. BSNL authorities at Udupi and Mangalore as well as the CCA office at Bangalore took their own time to merge DA and revise the pension. Udupi District P&T Pensioners’ Association took up the matter, wrote many letters. But authorities did not care. Finally, 13 BSNL pensioners and 6 family pensioners approached the Consumer Forum on 2*11* 2009 against the delay and seeking compensation. Shri George Samuel, Secretary of Udupi District P&T Pensioners’ Association is the first complainant in both the cases. When the authorities came to know about the cases they woke up and merged the DA in pay of the complainants and revised their pension accordingly. But the case continued.

The Consumers’ Disputes Redressal Forum considered the following aspects:

1. Whether the pensioners are consumers? The Forum decided Yes.

2. Whether the delay in merging DA in the cases amounts to deficiency in service? Forum declared Yes. The delay can not be condoned.

3. Whether the complainants are entitled to reliefs? Forum said Yes. After hearing the arguments of complainants and the Opposite Parties (CGMT Karnataka, CCA Karnataka Circle, PGMT Mangalore and Area Manager at Udupi) the Forum passed the following order:

“The complaints are allowed. The Opposite Parties are directed to pay to the Complainants in both complaints, interest @ 9% since and after 11712008 till date of payment of the claim amounts (since paid) alongwith Rs 2000/1 each Complainant in both the cases as compensation (except the complainant No. 1 in both cases) for mental agony and a consolidated amount of Rs 10000 each towards cost of proceedings in each complaint. The Opposite Parties shall pay the above amounts within a month from the date of this order. The OPs shall pay 2 the above amounts to the Complainants and may recover the same from the employees who are responsible for delay in releasing the revised Pensionary benefits:”

Source: RREWA

Simplification of procedure for payment of pension

F.No.25014/2/2002-AIS(I1)

Government of India

Ministry of Personnel, Public Grievances and Pensions

Department of Personnel & Training

North Block, New Delhi-110 001
Dated 12th January, 2010

To Chief Secretaries of all State Government/UTs

Subject:- Simplification of procedure for payment of pension and other benefits to All lndia Service officers retiring from Government of India / State Governments - bearing the liability of arrears related to Sixth Pay Commission.

Sir,
1 am directed to refer to the above subject and to say that the issue of bearing the liability of arrears of All India Service officers related to Sixth Pay Commission by the Government of lndia has been considered in consultation with the Ministry of Finance. It has been decided that the arrears will be paid in two installments of 40% & 60% in 2008-2009 and 2009-2010 respectively for All lndia Service officers. Arrears paid up to 31.3.2008 are debitable to State Governments and arrears from 1.3.2008 are debitable to the Central Government.

2. All the State Governments are requested take necessary action in accordance with the above.

North Block, New Delhi-110 001
Dated 12th January, 2010

(XXVi): HLTF constituted by the Government has recommended certain benefits that can be provided on death or discharge on invalidation/disability of a Government servant covered under NPS. However, it is likely to take some time before the Rules regulating these benefits under NPS are put into place. However, the CPAO will maintain the data base of the benefits paid to each pensioners/family pensioners as per this OM".

(H.K.SRIVASTAV)
Deputy Controller General of Accounts

Grant of full pension to Government servants who retired on or after 01-01-2006.

F.No.38/37/08-jP&PW(A)

GOVERNMENT OF INDIA

Ministry of Personnel, Public Grievances & Pensions

Department of Personnel & Training

New Delhi Dated the 10th December, 2009

OFFICE MEMORANDUM

Subject:- Implementation of Government's decision on the recommendations of the Sixth Central Pay Commission regarding revision of pension of pensioners/family pensioners etc. - Grant of full pension to Government servants who retired on or after 01-01-2006.

The undersigned is directed to say that in pursuance of Government's decision on the recommendations of Sixth Central Pay Commission, orders were issued vide this Department's O.M. No.38/37/08-P&PW(A) dated 2.9.2008 for introducing modifications in the rules regulating pension, Retirement/Death/Service Gratuity/Family Pension/ disability pension and ex-gratia lump-sum compensation. In accordance with para 5.2 and 5.3 of that OM, once a government servant becomes entitled to pension on completion of 20 years /10 years of qualifying service, he shall be paid pension at 50% of the emoluments received during the last 10 months, which ever is more beneficial to him. In terms of para 5.4 of the OM, these revised provisions have come into force w.e.f. 2.9.2008 and shall be applicable to Government servants retiring on or after that date. Subsequently, it was clarified vide O.M. No. 38/37/08-P&PW(A) dated 11.12.2008 that pension of Government servant retiring on or after 1.1.2006 will also be calculated based on the emoluments or average emoluments received during the last 10 months, whichever is more beneficial to him but his pension would continue to be proportionate to the pension on completion of 33 years of qualifying service. Para 5.4 of this Department's O.M. No.38/37/08-P&PW(A) dated 2.9.2008 was modified to that extent.

This matter has been reconsidered by the Government. In partial modification of the instructions/order issued in this respect, it has now been decided that linkage of full pension with 33 years of qualifying service shall be dispensed with, with effect from 1.1.2006 instead of 2.9.2008. The revised provisions for calculation of pension in para 5.2 and 5.3 of the OM No.38/37/08-P&PW(A) dated 2.9.2008 shall come into force with effect from 1.1.2006 and shall be applicable to the Government Servants retired/retiring after that date. Para 5.4 will further stand modified to that extent.

Consequent upon the above revised provisions, in partial modification of para 7.1 of the OM No.38/37/01-P&PW(A) dated 2.9.08, the extant benefit of adding years of qualifying service for the purpose of computation of pension and gratuity shall stand withdrawn with effect from 1.1.2006.

The overall calculation may take into account revised gratuity and revised pension, including arrears up to date of revision based on these instructions. However, no recoveries would be made in the cases already settled.

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

This issues with the concurrence of Ministry of Finance (Department of Expenditure) vide their U.O.No.375/EV/2009 dated 19.11.2009.

In their application to the employees of the Indian Audit and Accounts Departments, these orders issue in consultation with the Comptroller & Auditor General of India.

Revision of eligibility for NOAPS, NFBS and NMBS

The scope of National Old Age Pension Scheme(NOAPS) has been widened and the scheme has been renamed as Indira Gandhi National Old Age Pension Scheme (IGNOAPS) w.e.f. 19.11.2009 by revising the eligibility criteria from ‘a person of 65 years old and destitute’ to ‘a person of 65 years old and belonging to a family living below poverty line according to the criteria prescribed by the Government of India’. There is no proposal to modify the eligibility criteria under National Family benefit Scheme (NFBS). National Maternity Benefit Scheme (NMBS) was transferred to Ministry of Health and Family Welfare w.e.f. 1.4.2001.

IGNOAPS and NFBS, among others, are part of National Social Assistance Programme(NSAP) and have been transferred to State Plan since 2002-03 and funds are released as a combined allocation for all the schemes of NSAP together. State-wise allocation and releases during the year 2008-09 under NSAP is at Annexure.

The Minister of State in the Ministry of Rural Development, Shri Pradeep Jain ‘Aditya’ informed the Lok Sabha today.