Workers eligible for interest on gratuity, rules Madurai Bench of HC

Workers eligible for interest on gratuity, rules Madurai Bench of HC

An employee becomes eligible for gratuity on the termination of his employment after he has rendered continuous service for not less than five years, according to Section 4(1) of the Payment of Gratuity Act, 1972.

He is also entitled for interest on the gratuity in terms of Section 7(3) and 7(3A). Making these clear, the Madurai Bench of the Madras High Court directed the Arumuganeri Salt Workers Co-operative Production and Sale Society Ltd, Thoothukkudi district, to pay the amount to its worker, Mr A. Rajan, within 30 days from date of receipt of a copy of this order without further driving him to any other forum.

Mr Justice K. Chandru, hearing a writ petition from the Society challenging the order dated January 27, 2009 of the Appellate Authority under the Act, Madurai (R-2), directing it to make interest payment if gratuity was not paid within 30 days from the date of his order, noted that from the beginning, it was the stand of the petitioner Society that R-1 (Mr A. Rajan) was not eligible for gratuity. If Sections 7(3) and 7(3A) were read together, then there was no difficulty in understanding the eligibility for receiving interest. In the present case, the Appellate Authority had correctly construed the legal provisions and there was no case made out to interfere with the interpretation placed by the Authority.

The petitioner contended that payment of interest would arise only when there was delayed payment, and in this case, there was no delay since they had paid gratuity as ordered by R-2, and hence the question of payment of interest would not arise. This Court was unable to accept the said statement, since the entire controversy was with regard to the legal provision.

Reading Section 4(1) of the Act it would be clear that the date relevant for determination of interest was the date on which gratuity became payable, which in the present case was when R-1 resigned his job on 1-6-2003. When R-1 issued notice for payment of gratuity, petitioner employer did not honour the notice. On the contrary, it was only when R-1 instituted a claim before the Controlling Authority, the petitioner contended about the irregular nature of his employment and his alleged disqualification from receiving gratuity.

In the light of these, the writ petition stood dismissed, the Judge held.

Source: The Hindu

Rule 10 of CCS (Commutation of Pension) Rules, 1981 may be followed and difference in commuted value be paid without fresh applications - DOPT Order

Rule 10 of CCS (Commutation of Pension) Rules, 1981 may be followed and difference in commuted value be paid without fresh applications to pensioners who retired on/after 1.1.2006 but before 2.9.2008.

F. No. 38/79/08-P&PW(G)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners’ Welfare

3^rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi – 110003
Date: 27^th October, 2010

OFFICE MEMORANDUM

Sub.:       Payment of Commutation Value of additional amount of pension in respect of employees who retired on/after 1.1.2006 but before 2.9.2008 and expired before exercising option for commutation of additional amount of pension – Regarding.

          As per the provisions contained in para 9.3 of this Department’s OM No. 38/37/08-P&PW(A) dated 2^nd September, 2008, the revised table of commutation value for pension will be used for all commutations of pension which become absolute after the date of issue of this OM. In the case of those pensioners, in whose case commutation of pension became absolute on or after 1.1.2006 but before the issue of this OM, the pre-revised Table of Commutation value for pension will be used for payment of commutation of pension based on pre revised pay/pension. Such pensioners shall have an option to commute the amount of pension that has become additionally commutable on account of retrospective revision of pay/pension on implementation of the recommendations of the Sixth Central Pay Commission. On exercising such an option by the pensioner, the revised Table of Commutation Value for pension will be used for the commutation of the additional amount of pension that has become commutable on account of retrospective revision of pay/pension. In all cases where the date of retirement/commutation of pension is on or after 2.9.2008, the revised Table of Commutation Value for pension will be used for commutation of entire pension.

2.        References have been received from various Departments seeking clarification from this Department whether the commutation value of additional pension in respect of such employees who had retired during the period between 1.1.2006 and 2.9.2008 and died before exercising option is payable to the eligible member of family or not. The issue has been examined in consultation with Ministry of Finance, Department of Expenditure who has observed that the Pay Commissions’ intention was that the pensioner should exercise a conscious choice in view of the fact that the commutation table has changed w.e.f. 1.1.2006. As such, in these cases, the Rule 10 of CCS (Commutation of Pension) Rules, 1981 may be followed and difference in commuted value be paid without fresh applications. The intention was not to deny the higher capitalized value on account of revision of pension.

3.       This issues with the concurrence of Ministry of Finance, Department of Expenditure vide their UO No. 456/EV/2010 dated 18.10.2010.

(V.K.Wadhwa)
Under Secretary to the Government of India

Click here to view the above DOPT Order

Payment of Dearness Allowance to Centrel Government employees - Revised rates effective from 1-7-2010

No. 1(6)/2010-E-II(B)
Government of India
Ministry of Finance
Department of Expenditure
-------

New Delhi,the 22^nd September,2010

OFFICE MEMORANDUM

Subject:   Payment of Dearness Allowance to Centrel Government employees - Revised rates effective from 1-7-2010.

------------------

      The undersigned is directed to refer to this ministry’s Office Memorandum No.1(3)/2009-E-II(B) dated 26^th March.2010 on the subject mentioned above and to say that the president is pleased to decide that the Dearness Allowance payable to central government employees shall be enhanced from the existing rate of 35% to 45% with effect from 1^st July 2010.

2 .     The provisions contained in paras 3, 4 and 5 of this Office Memorandum No.1(3)/2008 29^th August,2008 shall continue to be applicable while regulating Dearness Allowance under these orders

3.     The additional instalment of Dearness Allowance payable under these orders shall be paid in cash ro all Central Government employees.

4.    These orders shall also apply to the civilian employees paid from the Defence Services Estimates and expenditure will be chargeable to the relevant head of the Defence Services Estimates.In regard to Armed Forces Personnel and railway employees separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.

5.     In so far the persons serving in the Indian Audit an Accounts Department are concerned, these orders issue after consultation with the Comptroller and Auditot General of India.

s/d
(Anil Sharma)
Under Secretary to the Government of India

www.finmin.nic.in

Grant of Dearness Relief to the Railway pensioners who are in receipt of provisional pension or pension in the pre-revised scale of 5th CPC

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

PC-VI No.221
RBE No.115/2010

New Delhi, dated 10.08.2010

S.No.PC-VI/222
No.PC-V/2009/A/DR/1

The General Managers/CAO(R)
All Indian Railways / PUs

(As per standard mailing list)

Sub:    Grant of Dearness Relief to the Railway pensioners who are in receipt of provisional pension or pension in the pre-revised scale of 5th CPC w.e.f.1-1-2010.

             A copy of Office Memorandum No.42/18/2010-P&W (G) dated 29-6-2010 of Ministry of Personnel, Public Grievances & Pensions (Department of Pension & Pensioners' Welfare) on the above subject is sent herewith for your information and necessary action.

2.          In pursuance of the enhanced rates of ex-gratia to the surviving SRPF (C) retirees issued vide Board's letter No. F(E)III/98/PNI/Ex-Gr./3 dated 15.11.2006 para 1 (ii) of DoP&PW's O.M. dated 29-6-2010 may be read as under:- "The surviving Group 'A', 'B', 'C' and 'D' SRPF (Contributory) beneficiaries who had retired from service during the period from 01.04.1957 to 31.12.1985 and have been sanctioned enhanced slab-wise ex-gratia @ Rs.3000/-, Rs.1000/-, Rs.750/- and Rs.650/- per month respectively w.e.f. 01.11.2006, in lieu of uniform rate of Rs.600/-p.m. are entitled to Dearness Relief @87% w.e.f. 1.1.2010."

        3. A concordance of various instructions and orders referred to in the enclosed office memoranda with reference to corresponding Railway instructins is indicated below:-

S.No.	Para No.	No. and date of Deptt. of Pension & Pensioners' welfare's O.M.	No.& date of Corresponding orders issued by Railway Board
1.	1 of OM dated 29-6-2010	OM No.42/12/2009-P&PW (G) dated 17-11-2009	PC-V/2009/A/DR/1 dt.07-01-2010
2.	2 of OM dated 17.11.2009	OM No. 45/52/97-P&PW (E) dt. 16.12.1997	F(E)III/97/PN1/EX-Gr/3 dt. 31.12.1997

4.          This issues with the concurrence of the Finance Directorate of the Ministry of Railways.

5.          Hindi version will follow.

DA: As above

s/d
(N.P.Singh)
Dy.Director, Pay Commission - V
Railway Board.

More details...
All India Railwaymen's Federation

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

MEDICAL FACILITIES FOR RETIRED EMPLOYEES

FACILITIES FOR RETIRED EMPLOYEES

'RETIRED EMPLOYEES CAN SUE GOVT FOR NEGLIGENCE UNDER CGHS'

The verdict, read with a ruling of the SC in 1995 that in-service Central Government employees are consumers under the Central Government Health Service Scheme, now catgorieses the entire working and retired work force as consumers, as far as health care is concerned under the scheme

Lakhs of retired central government employees can rejoice as the apex consumer forum has held them to be the sonsumers under the CGHS schme, thus conferring a right on them to sue the Centre for damage in case of deficiency in health care provided to them and their dependents.

This was unanimous decision of a full Bench of the National Consumer Disputes Redressal Commission (NCDRC) comprising its preseident Justice M.B.Shah, members Rajyalakshi Rao, B.K. Taimni, Justice K.S.Gupta, Justice S.N. Kapoor and P.D.Shenoy. This verdict, read with a ruling of the Supreme Court in 1995 that in-service central government employees are consumers under the Central Government Health Scheme (CGHS). now categorises the entire working and retired work force of the Central Goverment as consumers, as far as health are is concerned under the scheme.

The question before the NCDRC was "whether a pensioner and beneficiary of the CGHS would be a consumer under the provisions of Consumer Protection Act, 1986, for alleged deficiency in service by the CGHS Medical Officer".

Answering in the affirmative, NCDRC said medical treatment facilities extended to a retired under CGHS could not be termed as 'free service' as it was in consideration of service rendered by him to the government till the age of superannuation, which conferred a right on him to get pension as well as other benefits, including medical treatment presribed by various rules or the schemes framed by the Centre.

"Such employee would be a consumer as defined in Section 2(1)(d)(ii) of the Consumer Protection Act," said Justice Shah , writing for the Bench. Explaining the reason behind the conclusion that would make the retired employees feel less neglected, the NCDRC said service rendered by the government employees before retirement would be "consideration" for providing medical facilities to him or his family members.

"Hence, it cannot be said that the hospital which is subsidised by the government is rendering service free of charge," it said.

The NCDRC verdict came on a petition filed by retired employee Jagdish Kumar Bajpai, throgh advocate Nikhil Nayar, claiming that he was refused medicines for his wife by the CGHS dispensary in Kanpur. He also claimed damages to the tune of Rs. 4 lakh alleging that his wife died due to the negligence of the medical officer.

(The above news item appeared in Ahmedabad Edition ofTimes of India dated November 7, 2005 - Needless to say that this verdict is relevant to the working and retired employees of ONGC as the Central Government Medical Attednance Rules also apply on ONGC.)

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

Retired employees to get medical reimbursement: Delhi High Court

Retired employees to get medical reimbursement: Court

Ruling that all government employees, even those retired, are entitled for medical reimbursement, the Delhi High Court Tuesday asked the Delhi government to pay the medical bills of a man who retired from a government enterprise in 2002.

Justice Kailash Gambhir asked the government to pay the medical expenses of Suraj Bhan and said: 'The state has a constitutional obligation to bear the medical expenses of government employees while in service and also after they are retired. Clearly in the present case by taking a very inhuman approach, these officials have denied the grant of medical reimbursement to the petitioner forcing him to approach this court.'

Bhan had approached court seeking reimbursement of his medical bills.

In 2003, following a circular issued by the government, Bhan got enrolled for the medical scheme and paid the premium on regular basis though he had retired a year earlier. In 2007, a new scheme was introduced, but he was not aware of it.

Bhan was suffering from asthma and was under treatment at the Sir Ganga Ram Hospital from July 3 to July 9, 2004. When he moved an application for reimbursement of Rs.33,654 towards hospital bills it was rejected by the employment officer as Bhan was not part of the 2007 scheme.

'It is quite shocking that despite various directions from the courts, the government in utter defiance of the law has taken a position that the pensioner is not entitled to the grant of medical reimbursement since he did not opt to become a member of the said health scheme after his retirement,' the court said and imposed a law suit cost of Rs.10,000 on the government.

The government said that since Bhan had not opted for the new scheme in 2007, he was not entitled to reimbursement.

'The scheme is prospective in nature and the same would be effective once an employee becomes a member of the scheme and not otherwise,' counsel for the government said.

'It is a settled legal position that a government employee during his life time or after his retirement is entitled to get the benefit of medical facilities and no fetters can be placed on his rights on the pretext that he has not opted to become a member of the scheme or had paid the requisite subscription after having undergone the operation or any other medical treatment,' the court said.
Source: Indo Asian News Service

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.

CGHS pensioners hit hard

November is a dreaded month for thousands of pensioners in the State Capital who are covered under the Central Government Health Scheme (CGHS). Call it sheer coincidence or planning, since 2007 in November the super-speciality hospitals of Hyderabad start declining admissions to senior citizens, covered under CGHS, on the pretext of pending bills.

This year too is no different, as A.P. Speciality Hospitals Association (ASHA) once again stopped taking CGHS pensioners. ASHA authorities pointed out that they are declining admissions because of mounting financial burden due to non-payment of bills since last year by CGHS authorities.

The pensioners are caught in the middle of the crossfire between CGHS and ASHA. “CGHS is not clearing medical bills because they doubt that corporate hospitals have submitted inflated bills. The corporate hospitals are not taking admissions because their bills are not cleared. With no truce in sight, we are the worst sufferers,” says General Secretary of All Pensioners and Retired Persons Association Laxmi Narayana.

All the top corporate hospitals including Yashoda, Apollo, Medwin, Global, Mediciti, Medwin, Star, Image, Kamineni, KIMS, Indo-American Cancer Institute, Rainbow and Innova Children’s Hospitals are declining to admit pensioners under CGHS scheme. The CGHS, Hyderabad is yet to release Rs. 20 crore worth of medical bills to private hospitals. “A majority of senior citizens can’t afford costly treatment at private hospitals. What will happen to such pensioners in case they need emergency medical services and private hospitals deny them admissions?” asks another member of the association G. S. Vittal.

30,000 pensioners

The CGHS, Hyderabad, has nearly 30,000 pensioners and their families on its rolls who depend on the health insurance cover for their medical needs.

“There is no coordination between the CGHS and private hospitals, due to which we have to suffer. If authorities do not solve this issue, we will take to streets and protest,” Mr. Laxmi Narayana said.
Source: The Hindu

Recommendations of the Sixth Central Pay Commission relating to encashment of leave in respect of Central Government employees.

N0.14028/3/2008-Estt.(L)

GOVERNMENT OF INDIA

Ministry of Personnel, Public Grievances & Pensions

Department of Personnel & Training

2nd Floor, Loknayak Bhavan, Khan Market
New Delhi, the 16th November, 2009

OFFICE MEMORANDUM

Subject:- Recommendations of the Sixth Central Pay Commission relating to encashment of leave in respect of Central Government employees.

The uudersigned is directed to refer to this Department's O.M. of even number dated 25th September, 2008 on the subiect mentioned above according to which encashment of leave in respect & central Government employees will be considered both for earned leave and half pay leave subject to overall limit of 300 days and in respect of encashment of half pay leave, no reduction shall be made on account of pension and pension equivalent of other retirement benefits. In case of shortfall in earned leave, no commutation of half pay leave is permissible. The order was made effective from the lst September, 2008. The matter was reconsidered in this Department in consultation with the Department of Expenditure (Implementation Cell) and it has been decided to modify the date of effect of this Department's 0.M of even number dated 25th September, 2008 to "01.01.2006 instead of 01.09.2008 subject to the following conditions:-

(i) The benefit will be admissible in respect of past cases on receipt of applications to that effect from the pensioners concerned by the Administrative Ministry concerned.

(ii) In respect of retirees who have already received encashment of earned leave of maximum limit of 300 days together with encashment of HPL standing at their credit on the date of retirement, such cases need not be reopened. However, such cases in which there was a shortfall in reaching the maximum limit of 300 days can be reopened.

(iii) Calculation of cash equivalent in respect of HPL at credit shall be made mutatis mutandis in the manner given in this Department's O.M. of even number dated 25.09.2008.

2. In respect of persons serving in the Indian Audit & Accounts Departments, these O.M. issues with the concurrence of the Comptroller and Auditor General of India.

Grant of additional pension on attaining the age of 80 years regarding

OM No.38/48/09-P&PW(A)

GOVERNMENT OF INDIA

Ministry of Personnel, Public Grievances & Pensions

(Department of Pension and Pensioners Welfare)

*******

Norht Block,New Delhi-110 003
the 27th August, 2009

OFFICE MEMORANDUM

Subject:- OA No. 504 of 2009 filed in the Central Administrative Tribunal, Ernakulam Bench - Grant of additional pension on attaining the age of 80 years regarding.

The following Applications filed OA No. 504 of 2009 in the Central Administrative Tribunal, Ernakulam Bench seeking direction of the hon'ble CAT that the pensioners/family pensioners may be given the additional quantum of pension/family pension, in terms of Department of Pension & PW Resolution No.38/37/08-P&PW(A) dated 29.8.2008, OM No.38/48/09-P&PW(A) (pt.I) dated 3.10.2008, just after their completion of the age of 79 years:

1. Sothern Railway Pensioners Association, Gopalan Vaidyar's Compound, Tileri Road, Bolar, Mangalore.

2. Shri.K.Gopal Shenoy, Retired Wireless Inspector(Railways), Old Canara Bank Building, Padavinagadi, Konchady Post. Mangalore.
3. Kamalaksha, Retired Railway Trollyman, Nadukar House, Kalnad Village, Kasaragod District-670 217.

2. The Central Administrative Tribunel, Eranakulam Bench, in its Order dated 28.7.2009 disposed of the above OA with the following advice to the Secretary, Department of Pension & Pensioners Welfare: "To consider the representations at Annexures A-4 to A-6 along with the grounds raised in the OA and pass a suitable order within a period of two months from the date of communication of this order"

3. In compliance of the above advice of the Hon'ble CAT, the representations at Annexure A-4 to A-6 and the grounds raised in para 5 of the OA No. 504 of 2009 have been examined in the Department of Pension & Pensioners Welfare.

4. The thrust of the arguement made in the representations/OA is that a person attains the age of 80 years on completion of the age of 79 years and, therefore, the additional quantum of pension available on attaining the age of 80 years should be paid immediately on completion of the age of 79 years.

5. The above argument of the Applicants is on account of misinterpretation of the meaning of the phrse "attaining the age of". The position in the Rules regulating the service conditions of the Government servants in this respeect is well settled. In accordance with Rule 56 of the Fundamental Rules applicable to the Government servants, a Government servant retires from service on the afternoon of the last day of the month in which he attains the age of 60 years. Accordingly, a Government servant retires on the afternoon of teh lsat day of the month in which he completes the age of 60 years and not in the month in which he completes the age of 59 years. On this analogy, the additional pension/family pension on attaining the age of 80 years has to be paid only after the pensioner completes the age of 80 years and not after he completes the age of 79 years.

6. In para 5(M) of the OA, the Applicants have referred to the Venkataramani Iyer's Law laxicon with Leagal Maxima (Reprint 1991) according to which a person attains the 21 years "on the day preceding the anniversary of his 21st Birthday". In terms of this definition itself, a person born on 5.4.1988 attains the age of 21 years on 4.4.2009 and not on 5.4.2008

7. It is clear from the above that a person attains the age of 80 years only when he completes the age of 80 years and not when he completes the age of 79 years. However, for the sake of convenience, it has been provided in the orders issued by this Department that the additional quantum fo pension/family pension, on attaining the age of 80 years and above, would be admissiable from the 1st day of the month in which the date of birth falls...

8. In the light of the foregoing, the request of the Applicants for payment of the additional quantum of pension available on attainging the age of 80 years immediately on completion of the age of 79 years is not agreed to.

9. This issues with the approval of Secretary, Department of Pension & Pensioner's Welfare.

Revision of pension of pre-2006 pensioners

F.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 14th July, 2009

OFFICE MEMORANDUM

Sub:Implementation of Government's decision on the recommendations of the Sixth Central Pay Commission - Revision of pension of pre-2006 pensioners.

The undersigned is directed to say that in accordance with para 4.2 of this Department's O.M.No.38/37/08-P&PW(A) dated 1.9.2008 (as clarified vide OM dated 3.10.2008 and 14.10.2008), the revised pension of pre-2006 pensioners shall, in no case, be lower than fifty percent of the minimum of the pay in the pay band plus the grade pay corresponding to the pre-revised pay scale from which the pensioner had retired. In the case of HAG+ and above scales, this will be fifty percent of the minimum of the revised pay scale. Clarifications have been sought by Ministries/Departments as to whether Non Practicing Allowance (NPA) is to be added to the minimum of the revised pay band plus the grade pay / revised pay scale while considering stepping up consolidated pension on 1.1.2006. The matter has been examined in consultation with the Ministry of Finance (Department of Expenditure).

2.On implementation of the recommendations of Fifth Central Pay Commission, NPA was not added to the minimum of the revised scale of pay as on 1.1.1996 in cases where consolidated pension / family pension was to be stepped up to 50% / 30% respectively. Hon'ble Supreme Court, in its judgement dated 10.10.2006 in Transfer Cases (civil) 72 of 2004 - Col. (Retd.) B.J.Akkara vs. UOI & others, upheld the validity of OM dated 11.9.2001 of Ministry of Defence not allowing the benefit of NPA in the case of retired medical officers of Armed Forces to be added to the minimum of revised scale as on 1.1.1996.

3. NPA granted to medical officers does not form part of the Pay Bands / scales of pay. It is a separate element, although it is taken into account for the purpose of computation of pension. It is, therefore, clarified, that in the case of pre-2006 pensioners NPA 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 1.1.2006 is to be stepped up to 50% / 30% respectively, in terms of para 4.2 of Department' of pension & PW's O.M.No.38/37/08-P&PW(A) dated 1.9.2008 (as clarified vide OM dated 3.10.2008 and 14.10.2008).

4. It is impressed upon all the Ministries/Departments of the Government of Inida to keep in view the above clarifications while disposing of the cases of revision of pension/family pension. They are also advised to dispose the representations received by them from pensioners on the above issues whithout referring them to this Department.

5. This issues with the concurrence of Ministry of Finance (Department of Expenditure) vide their U.O.No.264/EV/2009 dated 9.7.2009.

Payment of Dearness Relief to re-employed pensioners and employed family pensioners

F.No.38/88/2008-P&PW(G)

GOVERNMENT OF INDIA

Ministry of Personnel, Public Grievances & Pensions

(Department of Pension & Pensioners' Welfare

3rd Floor, Lok Nayak Bhavan
Khan Market,New Delhi,
dated: 9th July, 2009

OFFICE MEMORANDUM

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

The undersigned is directed to say that the grant of DR to re-employed pensioners and employed family pensionersis presently regulated in accordance with the instructions contained in this Department's OM No.45/73/97 P&PW(G) dated 2.7.1999. Consequent upon the revision in ignorable amount of pension from Rs.1500/- to Rs.4000/- in terms of DOPT OM no. 3/13/2008-Esst,(PAY-I) dated 11.11.2008, the amount of Rs.1500/- appeared in OM dated 2.7.1999 is revised as Rs.4000/-. The other conditions for grant of DR to re-employed pensioners and employed family pensioners remain the same: :

2. In so far as persons serving in the Indian Audit Accounts Department are concerned, these orders are being issued after consultation with the CAG of India.

3. This issues with the concurrence of Misnistry of Finance, Department of Expenditure vide their UO No. 132/EV/2009-Esst.(Pay II) dated 21.4.2009 and DOP&T vide their UO No.3/16/2009-Esst.(Pay II) dated 23.6.2009.

Implementation of Govt. decision on the recommendations of the 6th CPC revision of Pension of Pensioners / Family Pensioners

References have been received in this Department seeking clarification on some provisions of the O.M. No. 38/37/08-P&PW(A) dated 1.9.2008 and O.M. No. 38/37/08-P&PW(A) dated 2.9.2008.
The matter has been considered in consultation with the Ministry of Finance, Department of Expenditure and the following clarifications are issued in this regard...
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Clarifications regarding Plastic Cards for Individual CGHS beneficiaries

F.No.11-1/2004-C&P/Pt-XII

Government of India

Ministry of Health & Family Welfare
Department of Health & Family Welfare

Department of Health & Family Welfare

CGHS (P) Division

Nirman Bhawan, Maulan Azad Road,
New Delhi - 110011.

Dated the 15th May, 2009

OFFICE MEMORANDUM

Sub: Clarifications regarding Plastic Cards for Individual CGHS beneficiaries-

With reference to the above mentioned matter the undersigned is directed to state that individual Plastic Cards are being issued to all CGHS beneficiaries in Delhi and NCRT in place of Family Cards. In this regard this office has beenreceiving several queries seeking clarifications and therefore, this Ministry has decided to issue an Office MemorandumClarifying the issues.
It is clarified that:
1. Data of CGHS beneficiaries is available on Data base of Servers located at NIC Headquarters.
2.The individual Plastic Cards are only Identity cards bearing a unique number for each beneficiary, validity for CGHS facilities, name of wellness Centre are available in Data base.
3.The Plastic Cards are issued for a maximum period of Five Years or till entitlled for CGHS benefits, whichever may be earlier. In case of CGHS pensioners who have paid for 'Rest of Life' facilities a new Plastic Cards shall be issued after 'Fiver Years' without any additional contribution. Similarly, New Plastic Cards shall be issued to serving employees after 'Five Years'.
4. The Plastic Cards bear a colour strip on the top side of Card. The Colour of Strip is Blue in case of Serving employees, Green in case of Pensioner beneficiaries, Freedom Fighters etc.,, Yellow in case of Autonomous Bodies and other and Red in case of Members of Parliament.
5. As of now computerization is under process in cities other than Delhi. After computerization of allCGHS coverd Cities the Plastic Cards will be valid all over India and there is no need for obtaining temporaryattachment while on a visit to another CGHS City.
6. In case of Pensioners applying for CGHS Cards applying for the first time in Delhi, an acknowledgment slip is issued immediately on submission of complete Set of Documents and prescribed subscription fee. The print out Slip is valid for availing CGHS facilities till Plastic Cards are issued. Individual Plastic Cards are issued within '7' Days after receiving the same from agency appointed for preparation of Plastic Cards. The acknowledgment slips are valid for availing treatment from empanelled hospitals with permission / under emergency.
7. Beneficiaries / Empanelled Hospitals / Diagnostic Centres can verify the Data at
8. Permissions for treatment shall be granted on the basis of ben ID (Beneficiary Identity Number) printed on Plastic Cards. While granting permission Data like the name of Serving employee / Pensioner and the relationship of Individual family member etc., can be verified at http:/cghs.nic.in/welcome.jsp , in case a beneficiary is admitted under emergency.
9. At the time of Submission of Medical Claim the Ben ID number of Serving employee or Pensioner shall be entered on Modified Medical 2004 form as he / she shall be the claimant. Copy of Plastic Card of Patient shall be enclosed along withMedical Reimbursement Claim.
10. In case of loss of Plastic Cards, Serving employee / Pensioner shall apply at CGHS (HQ) for Duplicate Plastic Card along with IPO for Rs.50 / a copy of FIR lodged with Police, a copy of lod Card. A 'print out slip' shall be issued immediately for availing CGHS facilities and Plastic Card after '7' Days. In case of serving employees the application shall be forwarded by the his / her department.
11. In case of change in residential address and shifting from one dispenasry to another, CMO I/C of Dispensary shall make modifications in Data base and transfer the cards to new dispensary. CMO i/c of new dispensary shall accept transfer of Card and Data shall be transferred to new dispensary.
12. In case of superannuation / transfer to another city, serving employees get the card deleted from Data base at Dispensary andobtain a certificate from CMO i/c and surrender the card to his / her department. Department shall issue a surrendercertificate to employee for getting a new Card at another city (if covered under CGHS) or for obtaining a pensioners CGHS card in case of superannuation.
13. It is compulsory to bring original Plastic Cards every time for availing CGHS benefits.
14. All nenficiaries entitled for semi-private ward in empanelled private hospitals are eligible for Nursing Home facilities in Govt. Hospitals and those entitled for Private ward are eligible for Direct Consultation with specialists in Govt. Hospitals. Similarly, beneficiaries entitled for Private ward in empanelled private hospitals are also eligible for Private ward facilities at A.I.I.M.S., New Delhi. No separate endorsement is required for these criteria.
JAIPRAKASH
UNDER SECRETARY TO GOVERNMENT OF INDIA

New Commutation Table - How to calculate Gratuity and Pension - Terminal Benefits

"For payment of commutation amount the Commission has noted that various factors suggest that the procedure of restoration of commuted amount after 15years appears to be more than fair. However the Commission has recommended the a new table (Annex.5.1.2) for calculation of commutation values."

Age	Factor		Age	Factor		Age	Factor
20	9.188		41	9.075		62	8.093
21	9.187		42	9.059		63	7.982
22	9.186		43	9.040		64	7.862
23	9.185		44	9.019		65	7.731
24	9.184		45	8.996		66	7.591
25	9.183		46	8.971		66	7.431
26	9.182		47	8.943		68	7.262
27	9.180		48	8.913		69	7.083
28	9.178		49	8.881		70	6.897
29	9.176		50	8.846		71	6.703
30	9.173		51	8.808		72	6.502
31	9.169		52	8.768		73	6.296
32	9.164		53	8.724		74	6.085
33	9.159		54	8.678		75	5.872
34	9.152		55	8.627		76	5.657
35	9.145		56	8.572		77	5.443
36	9.136		57	8.512		78	5.229
37	9.126		58	8.446		79	5.018
38	9.116		59	8.371		80	4.812
39	9.103		60	8.287		81	4.611
40	9.090		61	8.194		-	-

(New Commutation Table)

Retirement from Government service, the Government offers various retirement benefits to its employees as a measure of social security for their old age. The quantum of these benefits is dependant upon the factors.

The minimum qualifying service for superannuation pension is 20 years.

The average emoluments of last ten months or the pay last drawn

Ten years shall not be entitled to pension

The minimum pension of Rs.3500

Family pension shall be calculated at a uniform rate of 30%

It may be noted here that, the term ‘Emoluments’ has a different connotation for the calculation of pension and gratuity. For the calculation of pension, ‘Emoluments’ refers to Basic Pay+ Grade Pay. However, for the purpose of the calculation of gratuity the term ‘Emoluments’ includes Dearness allowance as on the date of the retirement of a government servant.

The phrase ‘Qualifying service’ refers to the total duration of service put in by a government servant after reducing any period of non qualifying service such as periods of dies non, suspension specified as non qualifying service or any other period of absence not regularized as leave.

The amounts payable to a government servant upon retirement from service can be classified into 2 categories.

1.Retirement benefits.
2. Other dues.


The first category includes the following:
1.Pension
2.Commutation value of pension.
3.Gratuity


Other dues which become payable upon retirement are:
1.Insurance
2.Leave Encashment
3.GPF balance.


For the timely payment of retirement and other benefits the timely lodging of a claim with the Head of office is a must. Government servants due to retire must submit completed claim forms to their Heads of offices atleast 6 months before their retirement to ensure that all benefits are paid to them timely. The Heads of office process the pension papers as per the rules and forward the same to CCA offices for effecting payment to the retiring official.

Also to avoid any unnecessary payment related complication in the event of the death of a government servant it is essential that all government servants submit a copy of completed nomination forms for GPF, Gratuity and Insurance to their Heads of offices for attaching in their service books. Further, government servants should also verify their service books once annually and see whether all entries pertaining to service verification, insurance and pension contribution, leave etc. have been properly recorded in them. Any discrepancy in these entries should be brought to the knowledge of the Head of office at the earliest.



Calculation of Superannuation pension

The formula for the calculation of superannuation pension is as given below:

50% of the emoluments drawn during the last month

For example:
emoluments drawn during the last month = Rs.12000.00
Dearness Allowance rate on the date of retirement = 16%
Qualifying service = 28 years
Age on retirement = 60 years
Commutation desires = 40%
In the above case pension will be equal to 1/2 x 12000 = Rs. 6000.00


The minimum amount of pension payable is Rs.3500 and the minimum amount of qualifying service entitled for pension is 20 years.



Calculation of Retirement gratuity

Retirement gratuity is admissible to all employees after completion of 5 years of qualifying service. The quantum of gratuity payable is also derived from the emoluments (but here DA on the date of retirement is also included) @ ½ of emoluments for each completed 6 monthly period of qualifying service subject to a maximum of 16 ½ times the emoluments from Rs. 3.5.lacs to raised 10 lakh. Therefore in the above example the amount of gratuity payable would be:
13920 (Pay + DA) x 66/4 = Rs.229680.00.

Gratuity is not payable to retirees against whom disciplinary / vigilance proceedings are pending at the time of retirement, till the conclusion of such proceedings.



Calculation of Commuted Value of pension

As per the CCS (Pension) Rules, the government also gives an opportunity to its employees to commute a part of their pension in return for a lumpsum payment. The maximum percentage of pension which can be commuted under these rules is 40%. Upon the receipt of the lumpsum commuted value of pension, the pensioner draws reduced pension to the extent of the amount commuted, for 15 years. Thereafter, his pension is restored to full. Commuted value of pension is not payable to retirees against whom disciplinary / vigilance proceedings are pending at the time of retirement, till the conclusion of such proceedings.

In the above example the amount of pension admissible for commutation will be calculated in the following manner:
40/100 x 6000 = Rs. 2400

The amount of lumpsum payable in lieu of the commuted amount is determined by means of a Commutation Table (given above) containing the commutation factors. The formula for working out the lumpsum payable is as follows.

Amount offered for Commutation x 12 x Commutation factor.

Therefore in the above case the amount will be equal to 2400x12x8.194 = Rs.2,35,987

The reduction in the amount of pension on commutation will become operative from the date of receipt of the commuted value by the pensioner, or at the end of three months after the issue of authority for payment, whichever is earlier. For the restoration of the commuted value of pension upon completion of 15 years, the pensioner should apply to the pension disbursing authority i.e., Post office / Bank in the



Encashment of Earned leave

The encashment of earned leave at credit at the time of retirement. The amount of leave encashment payable is worked out in the following manner. Emoluments (Pay +GP)/30 x No. of days of EL credit subject to max. 300 days Therefore in the above case the leave encashment payable would be; 13920/30 x 300 = Rs. 139200.00 (For 300 days of earned leave.)



General Provident Fund

The GPF balance at the credit of the employee becomes due for payment at the time of his retirement. GPF subscription is to be compulsorily discontinued during the last 3 months of service on superannuation. The employee should fill up the form for final payment and submit in his office. After processing of the same the form shall be forwarded to the concerned CCA office, which shall make arrangement for the payment of the principal and interest in the GPF account of the subscriber.

Revision of pension of pre-2006 pensioners/family pensioners

Implementation of Government's decision on the recommendation of the Sixth Central Pay Commission Revision of pension of pre-2006 pensioners/family pensioners etc.(Dated - 14.10.2008)

Please click the link to download the OM