Payment of dearness relief to re-employed
pensioners and employed family pensioners:
Clarification thereof.
O/o the Principal Controller of Defence Accounts
(Pension)
Draupadighat, Allahabad-211014
Circular No. 200
No. AT/Tech/263-XXIII
Sub:
Payment of dearness relief to re-employed
pensioners and employed family pensioners:
Clarification thereof.
Ref: This
office Circular No. 166 dated 07/03/2013, Circular No.
173 dated 07/04/2014 and Circular No. 179 dated
12/05/2015.
Provisions
for payment of dearness relief to re-employed
pensioners and employed
family pensioners is laid down in Ministry of
Personnel, Public
Grievances & Pensions (Deptt. of Pension &
Pensioners Welfare)
OM No.45/73/97-P85PW(G) dated 02/07/1999 issued under
this office
Important Circular No. 07 dated 13/08/1999. As per the
ibid OM, before
18/07/ 1997, in terms of the existing orders, Dearness
Relief to
pensioners and family pensioners is to remain suspended
during the
period a pensioner/family pensioner is re-
employed/employed under the
Central or State Govt. or in a Statutory
Corporation/Company/Body/Bank
under them in India or abroad. The above facts are also
applicable to
the pensioners and family pensioners permanently
absorbed in Statutory
Corporation/Company/Body/Bank under the Central or
State Government.
2.
Representations from various agencies as well as
pensioners/family
pensioners including Pension Disbursing Agencies are
being received for
clarification on Payment of dearness relief to re-
employed pensioners
and employed family pensioners. The matter has been
examined in this
office and following points are clarified.
3. However, w.e.f. 18/07/ 1997, it has been decided
by the Govt that:
(i)
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 post below Group 'A' and
those
ex-servicemen who held post 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 pensioners will consequently be
entitled to Dearness
Relief on their pension.
(A) 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:
(a) 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;
(b) 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 was re-employed / absorbed; and
(c) 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.
(d)
If the pay fixed at a higher stage because of advance
increments and no protection of the last pay drawn is
being given.
(B)
In the cases where PBOR (below Commissioned Officer)
retired before
attaining the age of 55 years and re-employed
thereafter and their pay
fixed at a higher stage because of advance increments
and no protection
of the last pay drawn were given, the pay should be
treated as fixed at a
minimum for the purpose of ignoring the entire pension
and allowing
Dearness Relief on pension. For benefit of advance
increments, the
policy for the same should exist in the re-employing
department and a
copy of such policy matter should be enclosed with the
required
certificate. But, after granting benefit of advance
increments, the last
pay drawn by the pensioner is protected, the pensioner
in such case
will not be entitled for dearness relief on pension.
Illustration 1:
A Military pensioner was drawing the pay of Rs. 6,330
in the pay scale
of Rs. 5,770-140-8,290 from 01/07/2002 and retired from
service on 31/
10/2002 before attaining the age of 55 years. He was
granted a military
pension of Rs. 3,165. He was re-employed in a Civil
Post on 01/12/2003
in the pay scale of Rs. 5,000-150-8,000. The post which
the pensioner
held in the Army before retirement is a non-
commissioned post. If his
pay is fix for Rs. 5,600 / - after granting 4 advance
increments in
re-employed post, then he will be entitled for dearness
relief on
pension as his pay fix for Rs. 5,600/- in re-employed
post is less than
Rs. 6,330/- already drawing in the Army before
retirement. However, if
his pay is fix for Rs. 6,500 / - after granting 10
advance increments in
the re-employed post, then he will be not entitled for
dearness relief
on pension as his pay fix for Rs. 6,500 / - in re-
employed post is more
than Rs. 6,330 / - already drawing in the Army before
retirement as his
last pay has been protected.
Illustration 2: If
the pensioner quoted in Illustration 1 above is re-
employed in a Civil
Post in the pay Scale of Rs. 7,500-250-12,000, his pay
is required to be
fixed at the minimum of the pay scale of the re-
employed post for
payment of dearness relief on pension. Any advance
increment granted in
such situation, will disqualify dearness relief on
pension.
(ii)
In all other cases of re-employed pensioners, no
dearness relief shall
be admissible on pension during the period of their
re-employment.
(iii)
(A)
In terms of the existing orders 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 minimum of the pay scale of the post in
which re-employed, if it is more than the pay last
drawn.
(B)
Further, the pay on re-employment is required to be
fixed after
ignoring only a portion of the pension as revised time
to time received
for the previous employment. In view of the fact that
(i) the pension is
taken into account in such cases and not entirely
ignored; (ii) The pay
in 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.
(iv)
Disability element of disability pension is also a
type of pension. As
such dearness relief on such service / disability
pension (including
disability element) during re-employment is required to
be regulated as
per the above procedure.
(v) Payment of
dearness relief where
discontinued due to re-employment, shall become
admissible only with
effect from the date they cease to be re-employed. The
Pension
Disbursing Authority shall require such a pensioner to
produce
certificate of cessation of re-employment from the
office in which the
pensioner had been re-employed.
(vi)
However, dearness relief is
payable to those re-employed pensioners who get
consolidated pay without
dearness allowance, consolidated fee, daily wages, or
elected as
Members of Legislative Assembly or Parliament,
Ministers / Deputy
Ministers of Central or State Government, Indian Red
Cross Society and
Extra Departmental Agents in the Department of Post.
(vii) 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.
(SANDEEP THAKUR)
Addl. CDA (Pensions)
Source:
PCDA(P)
