3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi
Dated : 23rd June, 2017

Office Memorandum

Subject: Restoration of full pension of absorbee pensioners in view of the order dated 01.09.2016 of Hon’ble Supreme Court in Civil Appeal No. 6048/2010 and Civil Appeal No. 6371/2010.

The undersigned is directed to say that in accordance with the instructions which existed before 31.03.1995, a Government servant, on absorption in a Public Sector Undertaking or an Autonomous Body, had the option to draw pro-rata gratuity and a lump sum amount in lieu of pension. The option regarding payment of lump sum amount in lieu of monthly pension on absorption in a PSU or autonomous body was available in terms of the instructions issued vide Department of Expenditure’s O.M. No.26(18)-E.V(B)/75 dated 08.04.1976, Department of Personnel & Training’s O.M. No.28016/5/85-Estt.(C) dated 31.01.1986 and Department of Pension & Pensioners’ Welfare’ O.M. No.4(12)/85-P&PW dated 31.03.1987. This option was also available to Government employees on absorption in PSUs/autonomous bodies of the State Governments and Joint Sector undertakings in terms of this Department’s O.M. No.4/43/88-P&PW(D) dated 16.10.1989. The terms and conditions for absorption of Government employees consequent on conversion of a Government Department into a PSU or autonomous body issued vide this Department’s O.M. No.4/18/87-P&PW(D) dated 5.7.1989 also provided for a similar option of lump sum payment in lieu of monthly pension.

2. In accordance with Rule 37-A of the Central Civil Services (Pension) Rules, 1972, incorporated vide Department of Expenditure’s Notification No.44(1)-E.V./71 dated 09.04.1973, on exercise of the above option, an employee was entitled to a lump sum amount not exceeding the commuted value of one-third of the pension and terminal benefit equal to twice the aforesaid lump-sum amount, subject to the condition that the Government servant surrendered his right of drawing two-thirds of his pension.

3. The option to draw a lump sum amount in lieu of pension was withdrawn vide this Department’s O.M. No. 4/42/91-P&PW(D) dated 31st March, 1995. Accordingly, the erstwhile Rule 37-A was omitted from the CCS(Pension) Rules, 1972 vide Notification No. 4/42/91-P&PW(D) dated 25.06.1997.

4. In implementation of the Order dated 15.12.1995 of Hon’ble Supreme Court in WP(C) No. 11855/85, instructions were issued vide this Department’s O.M. No. 4/3/86-P&PW(D) dated 30.09.1996 for restoration of one-third commuted portion of pension of Government servants who had drawn lump sum payment on absorption in a PSU/autonomous body. Further instructions were issued, from time to time, for computation and revision of the one-third restored pension of such absorbee pensioners and for payment of the attendant benefits like dearness relief, etc. to such absorbee pensioners. Orders for revision of the one-third restored pension w.e.f. 01.01.2006 of such absorbee pensioners were issued vide this Department’s O.M. No4/38/2008- P&PW(D) dated 15/09/2008, O.M. No.4/30/2010-P&PW(D) dated 11/07/2013. and O.M. No.4/38/2008-P&PW(D) dated 04/08/2016. These absorbee pensioners were, however, entitled to dearness relief and age-related additional pension based on the notional full pension.

5. Hon’ble High Court of Judicature of Madras, in its judgement dated 02-08­2007 in Writ Petition No.22207/2002 filed by one Sh. K. Ganesan, an officer in the office of Controller General of Accounts, held that surrendering of the right for drawal of 2/3rd of Pension after its commutation, as provided under Rule 37-A (b), was repugnant to Section 12 of the Pensions Act, 1871 and that the petitioner was lawfully entitled for the restoration of his pension after the expiry of the period of commutation of 2/3rd Hon’ble High Court, accordingly, directed restoration of 2/3rd pension and payment of arrears accordingly.

6. An SLP(Civil) No.4054/2008 (converted into Civil Appeal No. 6048/2010) was filed by the Union of India challenging the aforesaid order dated 02-08-2007 of Hon’ble High Court of Judicature of Madras. In its order dated 1.9.2016, Hon’ble Supreme Court found no justification to interfere with the order dated 02.08.2007 of Hon’ble High Court directing restoration of 2/3rd pension in respect of the respondent (Shri K. Ganesan), after the expiry of the requisite period of commutation. The Civil Appeal No. 6048/2010 was accordingly dismissed by Hon’ble Supreme Court. In the said judgement dated 1.9.2016, similar direction was passed by Hon’ble Supreme Court in the Civil Appeal No. 6371/2010 for restoration of 2/3rd pension in respect of the petitioners, Shri K.L. Dhall, an absorbed employee of Ministry of Civil Aviation and member pensioners of Welfare Association of Central Government Officers, CAD Absorbed in PSU.

7. Review Petitions No. 465/2017 and No. 472/2017 were filed by Union of India in the Supreme Court against the aforesaid order dated 1.9.2016. Instructions were separately issued to the office of Controller General of Accounts and the Ministry of Civil Aviation vide OM No.4/34/2002-P&PW(D).Vol.II dated 21-12­2016 and OM No. 4/34/2002-P&PW(D).Vol.II dated 21-12-2016 respectively, for implementation of the orders of Hon’ble Supreme Court in respect of the petitioner/respondent pensioners in the aforesaid Civil Appeals, subject to the final outcome of the Review Petitions. The aforesaid Review Petitions No. 465/2017 and 472/2017 have been dismissed by Hon’ble Supreme Court on 22.03.2017.

8. The matter has been examined in consultation with the Department of Legal Affairs and the Ministry of Finance (Department of Expenditure). It has been decided to extend the benefit of order dated 02-08-2007 of the Hon’ble Madras High Court and the Order dated 01-09-2016 of the Hon’ble Supreme Court to all similarly placed absorbee pensioners. Accordingly, all such absorbee petitioners who had taken 100% lump-sum amount in lieu of pension on absorption in PSUs/Autonomous Bodies in accordance with the then existing Rule 37-A and in whose case 1/3 pension had been restored after 15 years, may be allowed restoration of full pension after expiry of commutation period of 15 years from the date of payment of 100% lump-sum amount.

9. The absorbee pensioners whose full pension is restored in terms of the above instructions would also be entitled to revision of their pension in accordance with the instructions issued from time to time in implementation of the recommendations of the Pay Commissions, including the 7th Central Pay Commission.

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

11. Ministry of Agriculture etc. are requested to bring the contents of these Orders to the notice of Controller of Accounts/Pay & Accounts Officers and Attached & subordinate Offices under them on a top priority basis and for taking necessary action for implementation of the above instructions. All pension disbursing offices are also advised to prominently display these orders on their notice boards for the benefit of pensioners.

12. This issues with the approval of Ministry of Finance (Department of Expenditure) vide their ID Note No.1(11)/EV/2017 dated 26-05-2017 and dated 13-6­-2017.

13. Hindi version will follow.

sd/-
(Harjit Singh)
Director

Authority: http://www.pensionersportal.gov.in/

Source Link: https://7thpaycommissionnews.in/7th-cpc-pension-orders/

In Para 10.1.26, and 10.1.27, the 7 CPC has dealt with the quantum of minimum pension. The 7 CPC has not adduced any reason as to why the demand of minimum pension as minimum wage is not acceptable. The Commission had asked for the opinion of the Deptt of Pension in the matter. From what is stated in the report, the Dept of Pension evaded answering the question. There had been no rationale in fixing 50% of Minimum wage as Pension. Pensioner also can’t live without need based minimum wage.

The only point could have been probably considered with some rationale was that in the case of pensioner, the family Unit need not necessarily be 3 on the plea that the family consists of husband, wife and 2 children. Probably exclusion of children from the Pensioner family unit might be justified. From that view of the matter, the minimum Pension ought to have been fixed at MWx2/3 = Rs 12,000 (as present). The staff Side demands that the computation in respect of minimum Pension might be corrected and revised orders issued, adopting the sound rationale mentioned above.

a. Your Bank Branch

b. The Head of Office and the PAO in the Ministry from where you retired;

c. Central Pension Accounting Office

2. There should be proper nomination for pension account. Please retain the acknowledgement received from the bank carefully. It is advisable to open a joint account with your spouse if you are pensioners so that she/he does not hardship later.

3. Please direct your bank branch with proof establishing your Identity for first appearance at Paying Branch alongwith the copy of the special seal authority.

4. CPAO has sent two halves of PPO – the pensioner’s and the Bank’s. Your half of the PPO is to be handed over to you by your Bank branch when they call you for verification. Your signature will be obtained on their half for their record.

5. Please produce proper and acceptable evidence of eligible savings from time to time for the purpose of Income Tax calculation by the Bank.

6. Please collect Certificate of Income from pension from bank at the close of financial year, even if income tax is not deducted from the pension. Please collect form-16- income tax was deducted.

7. Please furnish Life Certificate early in the month of November every year.

8. A pensioner who produces a life certificate in the prescribed form in Annexure -XVII signed by any person specified hereunder, however, is exempted from personal appearance- :-

(i). A person exercising the powers of a Magistrate under the Criminal Procedure code;

(ii). A Registrar or Sub-Registrar appointed under Indian Registration Act;
(iii). A Gazetted Government servant;

(iv). A Police Officer not below the rank of Sub-Inspector in -charge of a Police Station; Offices;

(vi). A Class-I officer of the Reserve Bank of India, an officer (including Grade II officer) of the State Bank of India or of its subsidiary;

(vii). A pensioned Officer who, before retirement, exercised the powers of a magistrate;

(viii). A Justice of Peace;

(ix). A Block Development Officer, Munsif, Tehsildar or Naib Tehsildar;

(x). A Head of Village Panchayat, Gram Panchayat, Gaon Panchayat or an Executive Committee of a Village;

(xi). A Member of Parliament, of State legislatures or of legislatures of Union Territory Governments /Administrations.

(xii). Treasury Officer.

In the case of a pensioner drawing his pension through a Public Sector Bank the life certificate may be signed by an officer of a Public Sector Bank. In the case of a pensioner residing abroad and drawing his pension through any other bank included in the Second Schedule to the Reserve Bank of India Act, 1934, the life certificate may be signed by an officer of the Bank, A pensioner get exemption from personal appearance subject to production of Life Certificate signed by the above mentioned officer of the bank.

A pensioner not resident in India in respect of whom his duly authorized agent produces a life certificate signed by a Magistrate, a Notary, a Banker or a Diplomatic Representative of India is exempted from special appearance.

9. Non-employment Certificate/Re-employment Certificate should also be furnished every year in the month of November/May & November in case of retired Group ‘A’ officer.

10. Please apply in a prescribed proforma to the paying branch for restoration of commuted portion of pension on completing 14 years and 11 months in case your bank does not have a CPPC.

11. Please provide the Pensioner’s half of the PPO to your paying Bank Branch in the case of revision of pension for entry of enhanced pension with break up in this half.

12. Please ask for a due and drawn statement from your bank branch in case you have received any arrears in a lump sum.

13. Please ask for a pension slip with break up of in case of any doubt from bank branch

14. If Pensioner’s half is lost, worn or torn, a written request is to be immediately made to your paying Bank branch alongwith Pensioner’s half of PPO (if available).

15. Please keep all your Pension related documents including Pensioner’s half of PPO, safely, as these are important documents.

16. For any clarification on pension payments, contact your bank branch grievance officer of the Bank or CPAO Toll Free /Call Centre 1800 11 7788.

DON’Ts
1. Do not delay in submitting the Pension Papers before retirement as it ultimately effects the time schedule to be followed by the various offices as under: –

(i). Pay & Accounts Officer issuing PPO – Despatch of PPO by PAO to the CPAO on the last working day of the month preceding the month of retirement

(ii). Central Pension Accounting Office (CPAO) – Despatch of PPO by CPAO to Link Branch of PSB by 20th of the month of retirement

(iii). Link Branch – Despatch of PPO by Link Branch to paying branch by 23rd of the month of retirement.
(iv). Paying Branch – Paying Branch will complete all formalities and ensure that the pension has been credited to the pensioner’s account on the last date of the month.

2. Please do not provide address and contact number which is likely to change in immediate near future. Please update your address by informing your bank branch, PAO, CPAO and DDO of the ministry you retired from.

3. In case you wish to change your bank or bank branch for pension disbursement, do not close your pension account unless new account is confirmed for pension disbursement.

4. Please do not fail to check whether you are receiving full pension/family pension authorized by the Govt. of India to you including is related pension with Dearness Relief if you are aged 80 and above.

5. Please do not forget that under the scheme of pension department through authorized banks, banks are required to pay pension to each pensioner by the last day of the month and the Govt. of India fully

Nirman Bhavan, New Delhi
Dated : 29.09.2016

OFFICE MEMORANDUM

Sub:- Reimbursement of medical claims to pensioners under CS (MA) Rules, 1944 as directed by various CATS/Courts – Regarding.

The undersigned is directed to state that various references are being received in Ministry of Health and Family Welfare on the above mentioned subject. it is hereby clarified that CS (MA) Rules, 1944 are not applicable to pensioners till date.

2. It is further informed that the following options to avail medical facilities are available to Central Government pensioners:

a) Pensioners residing in CGHS covered areas:

1) They can get themselves registered in CGHS dispensary after making requisite contribution and can avail both OPD and IPD facilities.

2). Pensioners residing in CGHS areas cannot optout cf CGHS and avail anyother medical facility {i.e. Fixed Medical Allowance). Such pensioners, if they do not choose to avail CGHS facility by depositing the required contributions, cannot be granted Fixed Medical allowance in lieu of CGHS.

b) Pensioners residing in non -CGHS areas:

1). They can avail Fixed Medical Allowance (FMA) @ Rs.500/- per month

2) They can also avail benefits of CGHS- [OPD and IPD] by registering themselves in the nearest CGHS “city after“ making the required subscription.

3) They also have the option to avail FMA, for OPD treatment and CG HS for IPD treatments after making the required subscriptions as per CGHS guidelines.

3.In view, of the above, reimbursement of medical claims to pensioners under CS (MA) Rules, 1944 as directed by various CATS/Courts, need not be referred to the Ministry of Health and Family Welfare. The respective Administrative Department/Ministry may take their own decision in this regard.

4. Further, all Departments/Ministries are requested to intimate their employees proceeding for retirement regarding the above options for medical facilities available to the Central Government pensioners.

5.This issues with the approval of competent authority.

Sd/-
(SUNIL KUMAR GUPTA)
UNDER SECRETARY TO THE GOVT. OF INDIAS

Download (PDF, 35KB)

The Govt in its resolution dated 4th August 2016 made its stand on the recommendation as under:

Dated: 29th August 2017

To

The Chief of the Army Staff
The Chief of the Naval Staff
The Chief of the Air Staff

SUB: (i) Payment of arrears of pension in cases where valid nomination has not been made under the payment of arrears of pension (Nomination) Rules, 1983;

(ii) Payment of arrears of family pension-regarding.

Sir,

Attention is invited to provisions for payment of Arrears of Pension under Regulation 90 of Pension Regulation Part-II(2008), which provide that after the death of the Armed Force Pensioner, all money payable to the pensioner on account of pension due to the estate of a deceased pensioner may be paid to the nominee of the deceased Armed Forces Pensioner. In the absence of any nomination made by the Armed Forces Pensioner, the arrears of his/her pension are paid as per the “Will” if such a “Will” has been made by the deceased Armed Force Pensioner. In case neither nomination nor “Will” has been made by the deceased Armed Forces Pensioner, the arrears of his/her pension are paid under the orders of the Pension Disbursing Authority to the heir without production of usual legal authority, if the gross amount of arrears of pension claim does not exceed Rs, 10,000=00, provided he is otherwise satisfied about the right of the claimant. If the gross amount of arrears of pension claim exceeds Rs. 10,000=00, the arrears of his/her pension are paid under the orders of Principal Controller of Defence Accounts (Pension) on execution of an Indemnity Bond in Form IAFA-642 duly stamped for the gross amount due for payment with such sureties as may be deemed necessary and accepted on behalf of the President by an officer duly authorized under Article 299(i) of the Constitution. In case of any doubt, payment is made only to the person producing the legal authority.

2. Considering difficulties in obtaining the legal heir-ship-certificate it has been decided that in the absence of nominee or any “Will” of the deceased pensioner, the arrear of pension will be paid as under.-

1. Under the orders of the Pension Disbursing Authority to the heir without production of legal authority, if the gross amount of arrears of pension claim does not exceed Rs. 25,000/-, provided he is otherwise satisfied about the right of the claimant.
2. If the gross amount of arrears of pension claims exceeds Rs 25,000/- but does not exceed Rs 2,50,000/-, under the orders of Principal Controller of Defence Accounts (Pension) on execution of an Indemnity Bond in Form IAFA-642 duly stamped for the gross amount due for payment with such sureties as may be deemed necessary and accepted on behalf of the President by an officer duly authorized under article 299(i) of the Constitution.
3. In case of any doubt and also in cases where the amount of arrear exceeds Rs 2,50,000/-, payment shall be made only to the person producing the legal authority.

3. Normally there should be two sureties both of known financial ability. However, in case the amount of claim is less than Rs 75,000/- the authority accepting the Indemnity Bond for and on behalf of President of India should decide on the merits of each case whether to accept only one surety instead of two. The obligor as well as the sureties executing the Indemnity Bond should have attained majority so that the bond has legal effect or force. The Bond is required to be accepted on behalf of the President by an Officer duly authorized under Article 299(i) of Constitution.

4. This Ministry letter No. 1(16)/2009-D(Pen/Policy) dated 15.03.2010 stipulates that in the event of death of a family pensioner, the right to receive any arrears of family pension would automatically pass on to the eligible member of the family next in line. The requirement of succession certificate for payment of any arrears occurs only where there is no member in family who is eligible to receive family pension after the death of the family Therefore, it has been decided that the provision of this letter will also apply to the payment of arrears of family pension where no member of family is eligible to receive family pension.

5. These orders will not be applicable In the cases where valid nomination exist under GOI, MOD letter No.4(2)84/868/B/D(Pens/Services) dated 09.05.1984.

6.This issue with the concurrence of Ministry of Defence (Finance/Pension) vide their ID No. 10(04)/2017/Fin/Pen dated 03 August 2017.

Yours faithfully
Sd/-
(Manoj Sinha)
Under Secretary to the Government of India

Download (PDF, 1.25MB)

Download (PDF, 250KB)

.