Saturday 15 October 2016

Delinking of 33 Years Service : Revision of Pension and Arrears Calculation

 

DELINKING OF 33 YEARS SERVICE FOR FULL PENSION FOR EX-SERVICEMEN RE-EMPLOYED IN CENTRAL GOVERNMENT AND RETIRED.

All the ex-servicemen who were re-employed and retired from Central Government Departments (like Central Excise, Customs, Income Tax, Railways, Postal, Telecom, AIR, Doordarshan etc.) are being paid Pro-rata pension now by taking 33 years service for full pension. Most of the ex-servicemen re-employed are retiring before completing 33 years. Therefore all all these men are paid pro-rata pension.

Now this Supreme Court judgment is a great relief to them. The Department of Pension order dated 6.4.2016 will provide them 50% of the revised basic pay as their pension w.e.f. 1.1.2006. Therefore all the re-employed and retired central government ex-servicemen pensioners will get their revised pension from 1.1.2006 as per the Government order.

Please click here for the Government order.

An example is given here for the information of all concerned.

An ex-serviceman was re-employed & retired in 2001.in the pay scale of 14300-400-18300 as on 31.12.2005.
His pay was revised to 37400-67000 with grade pay of 8700 as per 6 CPC
His pro-rata pension was fixed as follows:-
Minimum of the pay band   : 37400
Grade pay                          : 8700
Total                                  : 46100

For 33 yrs. Service 50% of pay as pension will be : 46100/2=  23,050
Pro-rata pension for 25 yrs. Is calculated as (23050/33)x25 = 17463
After de-linking 33 yrs. The pension from 1.1.2006 will be =   23050
Difference to be paid as arrears from 1.1.2006           : 5587
Arrears to be paid now                                                   : 793658

There is no arrears for family pension as the family pension was paid correct as 30% of revised pay to all civil family pensioners.

Source: http://indianexserviceman.blogspot.in/

http://www.govtempdiary.com/wp-content/uploads/2016/10/Circular-568.pdf

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