Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners Welfare
Third Floor, Lok
Khan Market, New Delhi 110003
Date : 2nd July, 1999
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.
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.
These recommendation have been considered and accepted by the Government.
The President is accordingly pleased to decide as follows.
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.
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
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.
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.
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.
These orders shall be effective from July 18, 1997.
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.
(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
(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,
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
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.
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.
The Pension Disbursing Authority
shall release dearness relief on pension to those re-employed pensioners who
submit the Certificate referred to above.
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.
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.
Formal amendment to the Central Civil Services (Pension) Rules, 1972, is
being issued separately.
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.
Necessary orders in respect of re-employed Defence pensioners and family
pensioners will be issued separately by the Ministry of Defence.
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.
This issues with the concurrence of the Ministry of Finance, Department
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.
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