F.No.
45/86/97-P&PW(A)-Part-I
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners Welfare
New
Delhi,
Dated the 27th Oct. 1997.
The
undersigned is directed to state that in pursuance of Government's decision on
the recommendations of the Fifth Central Pay Commission, the President is
pleased to introduce the following modifications in the rules regulating
pension, DCRG and Family pension under the CCS (Pension) Rules, 1972 (hereafter
referred to as Pension Rules) and commutation of pension under CCS (Commutation
of Pension) Rules, 1981.
2. These orders apply to
Central Government Employees governed by the CCS (Pension)
Rules, 1972. Separate orders will be issued by the Ministry of Defense,
Ministry of Railways and the AIS Division of the DOPT in respect of Armed Forces
personnel, Railway employees and the officers of All India Services respectively
on the basis of these orders.
3.1 The revised provisions as per these
orders shall apply to Government servants who retire/die in harness on or after
1.1.196. Separate orders will be issued in respect of employees who retired/died
before 1.1.1996.
3.2 Where pension/family pension/DCRG/Commutation
of pension has already been sanctioned in case occurring on or after 1.1.1996
the same shall be revised in terms of these orders. In cases where pension has
been finally sanctioned on the pre-revised orders and if it happens to be more
beneficial than the pension becoming due under these orders, the pension already
sanctioned shall not be revised to the disadvantage of the pensioner in view of
the Rule 70 of the CCS (Pension) Rules, 1972.
4.1 The term ‘Emoluments’ for purposes
of calculating various pensionary benefits other than Retirement/Death Gratuity
shall mean basic pay as defined in FR 9(21) (a) (i) which the Government servant
was receiving immediately before his retirement or on the date of his death.
4.2 The term ‘Pay’ in these orders
means the pay in the revised scales promulgated under the CCS (Revised Pay)
Rules, 1997.
4.3 In the case of retirement/Death
Gratuity, DA admissible on the date of retirement/death shall be treated as
emoluments along with the emoluments as defined in Paragraph 4.1 above.
Accordingly, Rule 50 (5) of Pension Rules, shall stand modified to the effect
that the emoluments for the purpose of gratuity admissible under this Rule shall
be reckoned in accordance with Rule 33 and in addition DA admissible on the date
of retirement/death of the Government employee shall also be treated as
emoluments.
5. Pension shall continue to
be calculated at 50% of average emoluments in all cases and shall be subject to
a minimum of Rs. 1275/- and maximum upto 50% of highest pay in the Government
(The highest pay in the Govt. is Rs. 30,000 since 1.1.1996) . Accordingly the
provisions of clauses (a) and (b) of sub-rule (2) of Rule 49 of the Pension
Rules shall stand modified. The other provisions contained in Rule 49 shall
continue to apply.
6. The maximum limit of
retirement/Death Gratuity shall be Rs. 3.5 lakh. Accordingly first proviso under
Rule 50(1) (b) of Pension Rules shall stand modified to the effect that the
amount of retirement gratuity or death gratuity payable under this rule shall in
no case exceed Rs. 3.5 lakh.
7.1 Family pension shall be calculated at a
uniform rate of 30% of basic pay in all cases instead of slab system and shall
be subject to a minimum of Rs. 1275/-p.m. and a maximum of 30% of the highest
pay in the Government (The highest pay in the Govt. is Rs. 30,000 since
1.1.1996). Rule 54(2) relating to Family Pension, 1964 under Pension Rules shall
stand modified to this extent and the existing table thereunder will be no
longer operative.
7.2 For the purpose of grant of Family
Pension, the definition of ‘Family’ shall also include:
(a)
Parents who were wholly dependant on the Government servant when he/she was
alive provided the deceased employee had left behind neither a widow nor a child
[Classificatory orders in regard to determining dependency criteria in case of
parents shall be issued separately].
(b)
Son/daughter including widowed/divorced daughter till he/she attains the age of
25 years or upto the date of his/her marriage/remarriage, whichever is earlier
(Subject to income criterion to be notified separately).
8.
A Government servant shall be entitled to commute for a lumpsum payment
up to 40% of his pension. Accordingly provisions of sub rule 5 (1) and 5 (2)of
C.C.S. (Commutation of Pension) Rules, 1981 shall stand modified. The other
provisions of these Rules shall continue to apply.
9. In the case of Government
servants who have opted for the revised scales of pay and retire within 10
months from the date of coming over to the revised scale, basic pay for 10
months period preceding retirement shall be calculated by taking into account
pay as follows:
(i)
For
the period during which pay is drawn in pre-revised scale-Basic pay plus actual
D.A. and Interim Relief I and II appropriate to the basic pay at the rates in
force on 1.1.1996 drawn during the relevant period and
(ii)
For
the period during which pay is drawn in revised scale-Basic pay in the revised
scale.
SPECIAL PROVISION FOR THOSE
RETIRING BETWEEN 01.01.1996 AND 31.12.1997.
10. Those, who have retired or will be
retiring between 01.01.1996 and 31.12.1997 will have an option to retain the
pre-revised scales of pay and have their pension and death-cum-retirement
gratuity calculated under the rules in force immediately before coming into
effect of these orders. The pension and death-cum-retirement gratuity in such
cases will be regulated as follows:
(i)
The
term ‘Emoluments’ will mean ‘Pay’ as defined in FR9(21) (a) (i) and will
include DA upto AICPI 1436 and Interim Relief I and Interim Relief II.
(ii)
Pension
will be calculated at 50% of average emoluments .To the pension so calculated,
dearness relief upto AICPI 1510 at the prescribed rates shall be added. The
amount so arrived at will be regarded as pension.
(iii)
Death-cum-retirement
gratuity shall be admissible with reference to emoluments at (i) above under the
order in force immediately before coming into effect of these orders. The
maximum amount of gratuity shall not exceed Rs. 2,50,000/- in terms of
Department of Pension and pensioners Welfare Office Memorandum No. 7/1/95-P&PW(F)
dated 14.07.1995.
(iv)
Commutation of pension shall be admissible in accordance with the orders
in force immediately before coming into effect of these orders.
(v)
Family
pension shall be allowed in accordance with the orders applicable prior to the
issue of these orders and shall be calculated with reference to basic pay in the
pre-revised scale. To the family pension so calculated dearness relief upto
average AICPI 1510 at the rate contained in this Department’s Office
Memorandum No. 42/8/96-P&PW(G) dated 20.03.1996 shall be added. The amount
so arrived at will be regarded as the family pension for regulating payment of
dearness relief beyond average AICPI 1510.
11.
In the case
of persons who retain pre-revised scale and retire or die in harness subsequent
to 31.12.1997, Pension, Retirement Gratuity, Death Gratuity and Family Pension,
as may be relevant, shall be calculated in terms of paragraphs 5 to 8 of these
orders. The emoluments’ for calculation of pensionary benefits in their case
will be the basic pay in the pre-revised scale, plus dearness allowance
admissible up to CPI 1510 in terms. Of Ministry of Finance Office Memorandum No.
1(5)/96E.II(B) dated 20.03.1996 appropriate to the basic pay plus two
installments of interim relief at the rates in force on 31.12.1995, appropriate
to the said basic pay.
12.
Formal
amendments to CCS (Pension) Rules, 1972 and CCS (Commutation of Pension) Rules,
1981 in terms of the decisions contained in this order will issue in due course,
Provisions of the CCS (Pension) Rules, 1972, and CCS (Commutation of Pension)
Rules, 1981 which are not specifically modified by these orders, will remain
unaffected.
13.
The
pension/family pension in terms of these orders will qualify for dearness relief
beyond average AICPI 1510 under the revised pattern being introduced on the
recommendations of the Fifth Central Pay Commission.
14.
These orders
issue with the approval of the Ministry of Finance, Department of Expenditure
vide their U.O. No. 879/EV/97 dated 7.10.1997.
15.
In their
application to the employees of the Indian Audit and Accounts Department, these
orders issue in consultation with Comptroller and Auditor General of India.
16.
Ministry of Agriculture etc. are requested to bring the contents of these
orders to the notice of Controller of Accounts/Pay and Accounts Officers and
Attached and Subordinate Offices under them on a top priority basis.
(S.
LAKSHMINARAYANAN)