Revised Pension for Pre-2006 Pensioners and Family Pensioners

Background:

When Sixth Pay Commission was implemented by Government with effect from 1st January 2006 in respect of Central Government Employees and pensioners who got retired after 01.01.2006, Pension payable to Central Government Pensioners and Family Pensioners entitled to pension as on 31.12.2005 (popularly called as Pre-2006 Pensioners) was also revised. The Pension / family Pension of Pre-2006 Pensioners as on 31.12.2005 was revised by adding together:-

1. The Pension or Family Pension as on 31.12.2005.

2. Dearness Pension received by pensioners or family pensioners as on 31.12.2005

3. Dearness relief of 24% of Basic Pension/family pension + Dearness Pension/dearness family pension

4. Fitment weightage of at the rate of 40% of pension or family pension as on 31.12.2005.

If the revised pension as calculated above is less than Rs.3500, the same should be stepped up to Pension / family pension of Rs.3500 with effect from 1.1.2006.

The above mentioned procedures for fixation of revised pension was laid out in the Office Memorandum F.No: 38/37/08-P&PW(A) dated 01.09.2008. (Click here to download this Office Memorandum dated 01.09.2008)

Minimum Pension/Family Pension guaranteed based on pre-revised scale of pay:

Apart from the minimum pension of Rs.3500/-, O.M F.No: 38/37/08-P&PW(A).pt.1 dated 03.10.2008 (Click here to download), also provides for minimum pension calculated at 50% of minimum of pay in the pay band plus grade pay at the minimum of the pay in the pay band (irrespective of the pre-revised scale of pay) plus the grade pay corresponding to the pre-revised pay scale.

The revised pension out of 6CPC revision shall not be less than this Minimum pension. As far as Family pensioners are concerned, the same OM dated 03.10.2008, stipulates that the revised family pension in no case shall be lower than thirty percent (30%) of the sum of the minimum of the pay in the pay band and the grade pay thereon corresponding to the pre-revised pay scale in which the deceased government employee last worked.

In these lines, the Office Memorandum F.No: 38/37/08-P&PW(A).pt.1 dated 14.10.2008 (Click here to read), provides a table (Annexure 1 to OM dated 14.10.2008) in which pre-revised scales of pay applicable with effect from 1.1.1986 and with effect from 01.01.1996, and corresponding 6th CPC pay band/scales and grade pay have been given.

Using this table for the minimum basic pension and family pension applicable to Pensioner / Family pensioner covered under each pre-revised pay scales with effect from 1.1.85 and 1.1.96 could be determined. To illustrate, if the deceased spouse’s last pay drawing scale was Rs.2000-60-2120 with effect from 1986, the minimum pension of a family pensioner will be Rs. Rs.4050 (Sl.No: 12 of the table).

So, to fix the minimum pension/family pension in this case, the pre-revised pay scale in which retired/deceased employee received his/her last pay, should be known. However, Banks which were given powers to revise the pension based on 6CPC revision, did not know pre-revised pay scale of retired/deceased employee in many cases as Pension Payment Order originally issued by Central Pension authorities did not contain the details of the same. Consequently, banks revised the pension only based on the OM dated 01.09.2008 (existing pension+DP+24%DA+40% fitment weightage)

This resulted in payment of reduced pension than the entitled one for pensioners/family pensioners whose minimum pension/family pension based on last pre-revised pay scale is more than the pension calculated as as per 6CPC revision.

To sanction minimum pension based on last pay scale Banks required the revision of Pension Payment Order (PPO) by Central Government.

However, the process of issuing revised PPO, has taken momentum only from the year 2011. CPAO, New Delhi who authorizes Central Civil Pension, Department of Pension and pensioner’s welfare etc are taking steps now for issuing revised PPO. Series of meetings have been held in this connection. Click here to read the Minutes of Meeting held by Department of Pension and pensioner’s welfare on 3rd November 2011 at New Delhi with representatives from various Ministries. As per the minutes of meeting dated 3rd November 2011, in respect of cases in which records relating to deceased/retired employees are not available, advertisements have been given for submission of details by pensioners themselves (Read this office memorandum dated 16.12.2011).

We hope this exercise of revising PPO of all Pre-2006 Pensioners and Family Pensioners would be completed soon. Once revised PPO issued for the pensioner concerned, the bank will be in position to pay the revised pension and arrears amount for the past period.

source : gconnect