No. PC.1 (6)/98/D(Pen/Services)

Government of India,

Ministry of Defence,

New Delhi, the 18th November, 1998

To,

            The Chief of The Army Staff

            The Chief of The Naval Staff

            The Chief of the Air Staff,

Sub :-            Implementation of Government's decision on the recommendations of the 5th Central Pay Commission Release of Second and Final instalment of Arrears of pension/family pension/Dearness Relief-Instruction regarding.

Sir,

            The undersigned is directed to refer to provisions contained in Para 20 of this Ministry's letter No. 1(6)/98/D(Pen/Services), dated 3rd February, 1998 where in it was laid down that arrears becoming due on account of consolidation of pension from 1.1.96 (or thereafter) would be paid in cash with the stipulation that where the amount of arrears is less than Rs. 5000/-, it should be paid in one installment and where it is in excess of Rs. 5000/- it should be paid in two installments, in the first installment payment should be restricted to Rs. 5,000/- plus 50% of their balance amount of arrears, Instructions regarding second installment of arrears were to be issued separately.

2.         It has now been decided that the second and final installment of arrears of pension/family pension/Dearness Relief, if due, be paid to pensioners/family pensioners alongwith the pension/family pension for the month of November, 1998 by the concerned pension/ Disbursing Authority. In Drawing and disbursing the arrears claims, the requirements prescribed in relevant rules/ instructions issued by the Govt. from time to time be duly fulfilled and observed. There may also be a few instances where even the first installment of arrears of pension/family pension/dearness relief had not been drawn and disbursed during1997-98 for various reasons. It is clarified that the entire amount of arrears due and admissible in all such cases can be released in lumspum in a single installment after following prescribed procedure.

3.         These orders issued with the concurrence of the Finance Division of this Ministry vide their UO. No. 2524/- pen/98, dated 6.11.1998.

4.         Hindi version will follow.

Yours Faithfully

Sd

(Sudhkar Shukla)

Deputy Secretary to the Govt of India.

Annexure

 Consolidated Enhanced ordinary Family Pension w.e.f. 01.1.96

EXAMPLE NO. 1 

i) Date of Retirement                    :                       31.01.1990

ii) Rank                                    :                       Major

iii) Scale of pay                         :                       2300-100-3900-150-4200-EB-150-5100

iv) Rank Pay                             :                       Rs. 600

v) Pay last drawn               :                       Rs. 4500/-

    (inclu rank pay

vi) Ordinary Family pension

admissible at the rate in force            :                       Rs. 675

vii) Enhanced Ordinary

family pension

(before 01.01.96)                     :                       Rs. 1,350/- will be limited to

pension if pension

is less than Rs. 1350/-

depending on his

qualifying service or 50%

of his last pay whichever

is less.)

viii) Consolidated ordinary

family pension at

a) normal rate                                                   Rs. 2062/-

b) Consolidated enhanced

ordinary family pension :                                   Rs. 4,073/-

ix) a) Ordinary Family Pension

admissible @30% of pay at                                 Rs. 1350/-

(v) above

b) Enhanced Ordinary family

pension(50% of pay last drawn

or Service/retiring pension admissible :             Rs.2,250/-

whichever is less.

x) a) Addl Ordinary Family

pension admissible on 01.01.96:                     Rs. 1,350-675=675 

(c)        In the case of existing pensioners at (a) above, in whose case the ordinary family pension has not come into operation as pensioners are/were alive on 1.1.1996, the rates of ordinary family pension at enhanced rate wherever applicable and at normal rate will also be updated and consolidated in terms of these orders. The updated rates of ordinary family pension will apply as and when ordinary family pension becomes payable in such cases. 

(d)        An example regarding calculation of consolidated/revised enhanced ordinary family pension is given at Annexure.  

2.         The Government of India has decided to increase the age of retirement  of Armed Forces Personnel by two years vide its notification No. 25012/2/97-Estt(A) dated 13 May 1998. In pursuance of this decision of the Government and in view of the recommendation of the Fifth Central Pay Commission, the Government of India in partial modification of existing rules had decided that the payment of Ordinary Family Pension at enhanced rates will be payable for seven years or till the Armed Forces Personnel/pensioner would have attained the age of 67 years against the existing provision of 65 years. This will be applicable in cases where the Armed Forces Personnel is to retire under revised age of retirement in pursuance of modification dated 13 May 1998 and similar orders issued by Ministry of Defence on the subject and not where Government servant has already retired as per existing age of retirement or would have retired as per existing age of retirement but for his premature demise. 

3.         This order issues with the concurrence of Finance Division of this Ministry vide their Uo. No. 473/DFA(P)/99 dated 17th March' 99. 

4.         Hindi version of this order will follow.

                                                                                                        Sd/-

                                                                                    (SUDHAKER SHUKLA)

                                                                             Deputy Secretary to Govt of India.