No. 45/73/97-P&PW(G)Government of IndiaMinistry of Personnel,
Public Grievances & PensionsDepartment of Pension & Pensioners
Welfare
Third Floor, Lok Nayak Bhavan, Khan Market, New Delhi 110003
Date : 2nd July, 1999
OFFICE MEMORANDUM
Subject : Recommendations of the 5th Central Pay Commission-
Payment of Dearness Relief to re employed pensioners and employed
family pensioners-Decision regarding.
In terms of the existing orders, Dearness Relief of pensioners and
family pensioners is to remain suspended during the period a
pensioner/family pensioner is re-employed/employed under the
Central or State Government or in a Stationary Corporation/Company/
Body/Bank under them in India or abroad. These orders are also
applicable to pensioners and family pensioners permanently absorbed
in a Statutory Corporation/Company/Body/Bank under the Central or
State Government.
2. In Paragraph 138.21 of their Report, the 5th Central Pay
Commission had recommended that Dearness Relief should be paid to
employed family pensioners and re-employed pensioners in cases
where their pay is fixed at the minimum of the pay scale of the post of
re-employment ignoring the entire pension, and that, in other cases of
re-employment, Dearness Relief shall be payable on pay plus the non
ignorable portion of pension as was the case at present. The Commission
had further recommended in paragraph 141.12 that, with a view to
maintaining the original value of the pension, the payment of Dearness
Relief should not be suspended where pay is fixed at the minimum of
the pay scale during employment/re-employment of a family pensioner/pensioner.
3. These recommendation have been considered and accepted by the Government. The President is accordingly pleased to decide as follows.
(a) In so far as re-employed pensioners are concerned, the entire
pension admissible is to be ignored at present only in the case of those
civilian pensioners who held posts below Group "A" and those
ex-servicemen who held posts below the ranks of Commissioned Officers
at the time of their retirement. Their pay, on re-employment, is to be
fixed at the minimum of the pay scale of the post in which they are
re-employed. Such civilian pensioners will consequently be entitled to
Dearness Relief on their pension in terms of the recommendations of the
5th Central Pay Commission at the rates applicable from time to time.
(b) In terms of the existing order on the subject, the pay of re-employed pensioners who held Group "A" post or posts of the ranks of Commissioned Officers at the time of their retirement is to be fixed at present.
* at the same stage as last drawn before retirement or, if there is
no such stage, at the stage next above the pay last drawn.
* at the maximum of the pay scale, if the pay last drawn is more
than the maximum of the pay scale of the post in which re-employed;
* at the maximum of the pay scale of the post in which re-employed,
if it is more than the pay last drawn.
Further, the pay on re-employment is required to be fixed after ignoring
only a portion of the pension [Rs. 1,500] received for the previous
employment, In view of the fact that (i) the pension is taken into account
in such cases and is not entirely ignore; (ii) the pay the post of
re-employment is not required to be fixed at the minimum of the scale
in all cases; and (iii) Dearness Allowance at the rates applicable from
time to time is also admissible on the pay fixed in terms of the orders on
the subject, these re-employed pensioners will not be entitled, in
addition, to any Dearness Relief on their pension.
(c) As regards employed family pensioners, since the family pension
received by the eligible dependents of Central Government employees
is in any case, not taken into account in determining their pay on
employment, Dearness Relief at the rates applicable from time to time
shall be admissible on their family pension.
(d) While implementing these decisions, orders issued by the
Department of Personnel & Training vide OM No. 3/1/85-ESTT
(Pay-II) dated 31.07.1986 and as amended from time to time regarding
fixation of pay of re-employed pensioners shall be duly kept in view.
(e) These orders shall be effective from July 18, 1997.
(I) In accordance with the Government's decisions referred to in
the preceding paragraph all family pensioners in receipt of family
pension from the Central Government who were/are employed under
the Central Government or the State Government or a Corporation/Company/Body/Bank under them in India or abroad shall
be eligible to draw dearness relief, at rates applicable from time to time,
on the amount of family pension with effect from July 18, 1997. A
certificate may still be necessary to determine dependency. All Pension
Payment Authorities, including authorised Public Sector Banks are
requested to forthwith release dearness relief on family pensions in
cases where this was withheld on account of the family pensioners
concerned being employed. The arrears. if any, due with effect from
July 18, 1997 shall also be paid.
(II) (a) In the case of Central Government pensioners who were/are
re-employed under the Central Government or the State Government
or a Corporation/Company/Body/Bank including an autonomous
organistation under them in India or abroad or had/have been
permanently absorbed in such corporation /Company/ body/bank or
autonomous organisation, dearness relief will now be admissible to
such of those re-employed pensioners who satisfy the conditions
referred to in para 3(a) above. For this purpose, the Central Government Departments concerned, including subordinate organizations, State
Government, Corporation/Company/Body/Bank etc. employing a
Central Government pensioner shall be required to issue of certificate
indicating the following.
(i) The re-employed pensioner retired from a Civil or military post
in the Central Government and was holding a post not included in
classified as group 'A' or a post below the rank of commissioned officer
in the armed forces,
(ii) The entire amount of pension sanctioned by the Central
Government was ignored in fixation of the pay on re-employment i.e.
no part of the pension was taken into account in such fixation of pay
in the pay scale of the post in which the Central government retired/
retiree officer was re-employed/absorbed; and
(iii) The pay of the re-employed/absorbee was/ is fixed at the
minimum of the pay scale of the post in which he had/has been initially
re-employed after his retirement from the Central Government.
(b) All Central Government Ministries/Deparatment/Organisations
shall bring these orders to the notice of all Central Government
pensioners who happened to be re-employed by them as on July 18, 1997
or were/are re-employed subsequently. In cases such re-employed
pensioners satisfy the conditions referred to above, the necessary
certificate on the above lines shall be issued after verification from the
details referred to in para 17 of the Central Civil Services (Fixation of
pay of RE-employed pensioners) Order, 1986 issued vide Department
of Personnel & Training OM. No. 3/185-Estt(Pay-II) dated 31.071986
and as amended from time to time.
(c) The Pension Disbursing Authority shall release dearness relief
on pension to those re-employed pensioners who submit the Certificate
referred to above.
(d) In all other cases of re-employed pensioners, no dearness relief
shall be admissible on pension during the period of their re-employment
Payment of dearness relief in these cases shall become admissible only
with effect from the date they cease to be re-employed.
(e) The Pension Disbursing Authority shall require such a pensioner
to produce a certificate of cessation of re-employment from the office
in which he had been reemployed.
5. Formal amendment to the Central Civil Services (Pension) Rules,
1972, is being issued separately.
6. CPAO may take immediate action to suitably amend the relevant
provision of the Scheme for Payment of Pension to central Government
Civil Pensioners, including the proforme at Annexure-XVII and notify
the same to all Public Sector Banks disbursing pension to Central
Government pensioners/Family pensioners. A copy of the notification
may be endorsed to this department.
7. Necessary orders in respect of re-employed Defence pensioners
and family pensioners will be issued separately by the Ministry of Defence.
8. Administrative Ministries may bring these orders to the notice of all subordinate organizations, autonomous bodies and Public Sector
Undertakings including Nationlised banks, financial institutions.
etc. under them so that the eligible Central Government pensioners
re-employed in these organisations do not face nay difficulty in
obtaining the requisite certificate.
9. This issues with the concurrence of the Ministry of Finance,
Department of Expenditure.
10. In so far as these orders relate to personnel of the Indian Audit
and Accounts Department, these have been issued in consultation
with the Comptroller & Auditor General of India.
11. Hindi version will follow.
Sd/-GANGA MURTHYDirector
To, All Ministries and Departments of the Government of India Comptroller & Auditor General of India (with 400 spare copies)
As per Standard Mailing List.
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