Important points on pay fixation by Mr Balaji Rao

NOTES ON FIXATION OF PAY OF REEMPLOYED EXSERVICEMEN CASE

FIXATION ELIGIBILITY:-

1] DOPT OM NO. 3/13/2008-ESTT[PAY-II] 11TH NOVEMBER 2008
2] DOPT OM NO. 3/19/2009-ESTT[PAY-II] DT. 5TH AUGUST 2010
PRESCRIBES THE MANNER OF FIXATION OF PAY IN R/O REEMPLOYED EX SERVICEMEN.
THESE OMs are clearly defined with examples by PF ORGANISATIONRAILWAYS,THE CGDA[CONTROLER GENERAL OF DEFENCE ACCOUNTS]& ALSO THE CAT JUDGEMENT IN R/O SE RLY ENDORSED IT.

DEPARTMENTS SO FAR IMPLIMENTED THESE ORDERS
 
            A] INCOME TAX
            B] MINISTRY OF LABOUR
            C] EPFO
            D] RAILWAYS[SER& SCR]
            E] ALL PUBLIC SECTOR BANKS
            F] ALL PSU’s
            G] MINISTRY OF DEFENCE

     3.   1. STATUS IN DEPT. OF POSTS
                IMPLIMENTED IN:-
                   A] DELHI CIRCLE,  B] UP CIRCLE,  C] BIHAR CIRCLE,
                        D] RAJASTAN  CIRCLE
                   B] POSITION IN A.P. CIRCLE
                           In fact there are three catagories exist in A.P CIRCLE

                [I] PERSONEL GIVEN FIXATION AS PER THE OM’s AND CONTINUE
                       TO DRAW TILL DATE
                [2] PERSONNEL GIVEN FIXATION AS PER THE OM’s BUT REVERTED
                       TO PREVIOUS PAY DUE TO DA[P] OBJECTIONS
                [3] PERSONNEL YET TO BE CONSIDERED:- DESPITE THE
                      REPEATED REQUESTS& RAISING THE ISSUE IN RJCM AND
                      PROOFS SUBMITTED IN SUPPORT OF THE CLAIM
UNFORTUNATELY DEPT. IS LACKING CLARITY PARTICULARLY IN A.P. CIRCLE BECAUSE:-

[1] IN REPLY TO INFORMATION SUPPLIED UNDER RTI DOPT CLEARLY STATED THAT “ FIXATION TO EXSERVICEMEN IS BEING GIVEN THROUGHOUT THE COUNTRY”
                                                  BUT IT IS NOT TRUE.

[2] DEPT. REFERRED THE MATTER TO DOPT FOR CLEAR ORDERS
[3] BEFORE RECEIVING CLARIFICATION SAME WAS IMPLIMENTED IN SOME

CIRCLES LIKE UP,BIHAR,RAJASTAN WHICH CLEARLY PROVES THAT THERE IS NO AMBIQUITY IN THE ORDER AND IT IS VERY CLEAR.

IN THIS BACKGROUND ALL EXSERVICEMEN ARE REQUESTING THE UNION TO PERSUE THE MATTER VIGOUROUSLY AND SEE THAT THESE ORDERS ARE IMPLIMENTED AS EARLY AS POSSIBLE,IF NESCERRY BYINCLUDING IT AS ITEM IN THE CHARTER OF DEMANDS IN THE ENSUING INDEFENITE STRIKE.BY THIS ACT WE CAN PUT A FULL STOP TO THE AGONY OF THOUSANDS OF EXSERVICEMEN WHO ARE RECRUITED IN THE DEPARTMENT AGAINST EXSERVICEMEN QUOTA.

EXSERVICE MEN IN THE DEPARTMENT ARE FEELING THAT THEY ARE DISCRIMINATED WHEN COMPARED WITH OTHERS RECRUITED IN OTHER DEPARTMENTS.

AS SUCH THIS MAY BE TAKEN UP AS IMPORTANT ITEM TO BE SETTLED.

important documents of pay fixation of ESM in various offices

Ministry of Personnel, Public Grievances & PensionDepartment of Personnel & TrainingNew Delhi, the -11-11- 2008.

Applicability of CCS (RP) Rules, 2008 to persons re-employed in Government Service after retirement and whose pay is debitable to Civil Estimates 

persons reemployed in govt service after retirement have been excluded from the purview of the Central Civil Services (ReVised Pay) Rules, 2008 videRule 2 (2)(vii) thereof. The question of extension of the benefit of the revised pay rulesto these persons and the procedure to be followed for fixing their pay in the revisedscales has been considered by the Government. The President is pleased to decide that,in partial modification of the Rule 2 (2)(vii) of the Central Civil Services (Revised Pay)Rules, 2008, the provisions of these rules shall apply to such persons also who were inre-employment on 1st January, 2006, subject to the orders hereinafter contained. 

Thisdecision will cover all Government servants re-employed in Central Civil Departments

other than those employed on contract whether they have retired with or without a

pension and/or gratuity or any other retirement benefits, e.g. contributory fund etc.
from a civil post or from the Armed Forces.
2(1). The initial pay of a re-employed Government servant who elects or is
deemed to have elected to be governed by the revised pay scale from the 1st day of
January, 2006 shall be fixed in the following manner namely -
According to the provisions of Rule 7 ofthe c.C.S. (R.P.) Rules, 2008, if he is-
(i) a Government servant who retired without receiving a pension, gratuity or
any other retirement benefit and
(ii) a retired Government servant who received pension or any other retirement
benefits but which were ignored while fixing pay on re-employment."
2 (II). The initial pay of a re-employed Government servant who retired with a
pension or any other retirement benefit and whose pay on re-employment was fixed
with reference to these benefits or ignoring a part thereof, and who elects or is deemed
to have elected to be governed by the revised scales from the 1st day of January, 2006
shall be fixed in accordance with the provisions contained in Rule 7 of the Central Civil
Services (Revised Pay) Rules, 2008. In addition to the pay so fixed, the re-employed
Government servant would continue to draw the retirement benefits he was permitted
to draw in the pre-revised scales, as modified based on the recommendations of the
Sixth Central Pay Commission, orders in respect of which have been issued separately by
. the Department of Pension & Pensioners Welfare. However, an amount equivalent to
the revised pension (excluding the ignorable portion of pension, wherever permissible),
effective from 1.1.2006 or after, shall be deducted from his pay in accordance with the
general policy of the Government on fixation of pay of re-employed pensioners. Annual
increments will be allowed in the manner laid down in Rule 10 of Central Civil Services
(Revised Pay) Rules, 2008, on the entire amount of pay as if pension had not been
deducted.
3. Re-employed persons who become eligible to elect revised scales in
accordance with these orders should exercise their option in the manner laid down in
Rule 6 of the Central Civil Services (Revised Pay) Rules, 2008, within three months of the
date of issue of these orders or in cases where the existing scales of pay of the posts
held by them are revised subsequent to the issue of these orders, within three months
of the date of orders/notification revising the scales.
4. Where a re-employed Government servant elects to draw his pay in the
existing scale and is brought over to revised scale from a date later than the 1st day of
January, 2006, his pay from the later date in the revised scale shall be fixed in
accordance with the provisions of Rule 11 of the Central Civil Services (Revised Pay)
Rules, 2008.
5. Further, the existing ceiling of Rs. 26000/- for drawal of pay plus gross
pension on re-employment is enhanced to Rs. 80,000/-, the maximum salary payable to
the Secretary to the Government of India under Central Civil Services (Revised Pay)
Rules, 2008.
6. The President is also pleased to enhance the ignorable part of pension
from Rs. 1500/- to Rs. 4000/- (Rupees four thousand) in the case of Commissioned
Service officers and civil officers holding Group 'A' posts who retire before attaining the
age of 55 years. The existing limits of civil and military pensions to be ignored in fixing
the pay of re-employed pensioners will, therefore, cease to be applicable to cases of
such pensioners as are re-employed on or after 1.1.2006. In the case of persons who are
already on re-employment, the pay may be fixed on the basis of these orders with effect
from 1.1.2006, provided they opt to come under these orders. If they so opt, their terms
would be determined afresh as if they have been re-employed for the first time from
1.1.2006. The option should be exercised in writing within three months from the date
of issue of these orders. The option once exercised is final.
Department are concerned, these orders are being issued after consultation with the
Comptroller & Auditor General of India.

U S
DOPT

CLARIFICATION OF PAY FIXATION OF REEMPLOYED EXSERVICEMEN WORKING WITH SUBORDIATE OFFICES UNDER  MINISTRY OF LABOUR AND EMPLOYMENT IS APPENDED BELOW. ALL ESM ARE REQUESTED TO APPROACH THEIR CONCERNED SANCTIONING AUTHORITY FOR FIXATION OF AS PER DOPT ORDERS.

  EMPLOYEES’ PROVIDENT FUND ORGANISATION

  (Ministry of Labour& Employment, Government of India)

 Regional Office, Peenya

No.S(1)(F), 1^st Cross, 1^st Stage, Peenya, Bangalore – 560058.

Tel: 23721344/23721366; Fax: 28374424;  E-mail: ro.peenya@epfindia.gov.in

No.KN/PY/PF/ADM/2015-16/                                                                         Date:    13-07-2015

By Name to:                       To,                                                                                                         

Shri. M. Narayanappa,   The Addl. Central P.F Commissioner (Kar & Goa)

Addl CPFC-I                        Employees’ Provident Fund Organisation,

                                                Zonal Office, “Kaveri”, Bhavishyanidhi Enclave,

                                                HMT Main Road, Jalahalli,

                                                Bangalore – 560 013.

                                Sub:       Fixation of pay in respect of re-employed Ex-servicemen in EPFO

                        Ref:        1. No. EPFO/ACC(K&G)/PNY-1/HRM/505/2015-16 dated 18/06/2015.

                                                2.  HRM/IV/5(1)2009/Ex-Sm/4772 dated 10/06/2015.

                                                3.  HRM/IV/5(1)2009/Ex-Sm/6357 dated 01/06/2012.

****

1.            With reference to the above, fixation of pay of re-employed ex-servicemen in Peenya Region is done in accordance with DoPT OM No. 3/19/2009-Estt. (Pay II) dated 05/04/2010 as advised by HO vide letter referred at Sl No. 3 above. The said Memorandum has advised to refer DoPT OM No. 3/13/2008-Estt (Pay II) dated 11/11/2008 and has also stated that the pay fixation of re-employed pensioners on re-employment in Central Government, including that of Defence Forces personnel/officers, is being done in accordance with CCS (Fixation of Pay of Re-employed Pensioners) Orders, 1986 issued vide DoPT O.M No. 3/1/85-Estt. (Pay II) dated 31/07/1986 as revised from time to time. It is also informed that all the re-employed ex-servicemen have retired from the Armed Forces in the rank of PBOR (Personnel Below Officer Rank) before attaining the age of 55 years.

2.            The salient features of the DoPT O.M dated 11/11/2008 referred above are as follows:

               

                (a)          The FR 2(2)(vii) which initially had sought not to apply the CCS (RP) Rules 2008 to                      persons re-employed in EPFO after retirement has now been modified to apply the                                  CCS (RP) Rules, 2008 to all Government servants including Armed Forces retired with                                 or without pension or any other retirement benefits.

                (b)          Para 2(1) of the letter states that the initial pay of re-employed Govt. servants who                      elects or is deemed to have elected to be governed by the revised pay scale from                                           01/01/2006 shall be fixed as per Rule 7 of CCS (RP) Rules, 2008, if he is:

           (i)       A Govt. servant who retired without receiving a pension, gratuity or any                                               other retirement benefits.

            (ii)  A retired Govt. servant who received pension or any other retirement                                                   benefits but which were ignored while fixing pay on re-employment.

                (c)           As per Para 2(ii) of the O.M, the re-employed Govt. servant would continue to draw            the retirement benefits he was permitted to draw in the pre-revised scales.  However, an amount equivalent to the revised pension (excluding the ignorable portion   of pension, wherever permissible) effective from 01/01/2006 or after, shall be deducted  from his pay. As per Para 6 of the OM, the ignorable part of pension has been revised to ₹    4,000/- in the case of Commissioned Officers.

3.            The salient features of DoPT OM No. 3/19/2009-Estt. (Pay II) dated 05/04/2010 are as follows:

                (a)       After introduction of the system of running pay bands and grade pay, the relevant                           provisions of CCS (Fixation of Pay of Re-employed Pensioners) Orders, 1986 issued                                     vide DoPT O.M No. 3/1/85-Estt. (Pay II) dated 31/07/1986 have been amended.

                (b)          Para 4(a) of the OM has been revised and is stated as “Re-employed pensioners shall                e allowed to draw pay only in the prescribed pay scale/pay structure of the post in                                        which they are re-employed. No protection of the scales of pay/pay structure of the                                     post held by them prior to retirement shall be given. Under the provisions of CCS                                        (RP) Rules, 2008, revised pay structure comprises the Grade Pay attached to the post                        and the applicable pay band.” This point could be clarified by the following illustration:

Suppose an ex-serviceman was drawing pay in the Pay Band PB2 (9300-34800, GP 4200)                     and his Basic Pay was ₹ 19700/- (i.e. ₹ 15,500 Pay in PB and ₹ 4,200/- GP) prior to                             retirement from the Armed Forces and on re-employment in the EPFO in the Pay Band                                  PB1 (5200-20200, GP 2400), he cannot claim the PB2 (9300-34800 with GP 4200).

(c)           Para 4(b)(i) of the said OM states that “In all cases where the pension is fully ignored, the initial pay on re-employment shall be fixed as per entry pay in the revised pay structure of the re-employed post applicable in the case of direct  recruits appointed on or after 01/01/2006 as notified vide Section II, Part A of First   schedule to CCS (RP) Rules, 2008”. The ignorable and non-ignorable part of pension  for the  purpose of fixation of pay of ex-servicemen is dealt in Para 4 (d), wherein, it   is stated that, “In the case of persons retiring before attaining the age of 55 years    and who are re-employed, pension (including PEG and other forms of retirement   benefits) shall be ignored for initial pay fixation in the following extent:

(i)    In the case of ex-servicemen who held posts below Commissioned Officer                                            rank in the Defence Forces and in the case of civilians who held posts below                                                Group ‘A’ posts at the time of their retirement, the entire pension and                                                              pension equivalent of retirement benefits shall be ignored.

 (ii)    In the case of Commissioned Officers belonging to the Defence Forces and                                           Civilian pensioners who held Group ‘A’ posts at the time of their retirement,                                                 the first ₹ 4,000/- of the pension and pension equivalent retirement benefits                                                    shall be ignored”.

(d)          Fixation of pay of personnel/officers who retired prior to 01/01/2006 and who have                        been re-employed after 01/01/2006 in Peenya region is done in accordance with                                          Para 3(v) of the said OM, which states that, “their pay on re-employment will be                                      fixed by notionally arriving at their revised basic pay at the time of retirement as if                            they had retired under the revised pay structure. This will be done with reference to                                  the fitment table of the Defence Service Rank/Civilian service post (as the case may                                     be) from which they had retired and the stage of basic pay at the time of their                                               retirement. Their basic pay on re-employment will be fixed at the same stage as the                          notional last basic pay before retirement so arrived at. However, they shall be granted                                  the grade pay of the re-employed post. The maximum basic pay cannot exceed the grade    pay of the re-employed post plus pay in the pay band of ₹ 67,000/-, i.e. the maximum of        the pay band PB-4. In all these cases, the non-ignorable part of the pension shall be     reduced from the pay so fixed.

3.            It is pertinent to note that only relevant provisions of the CCS (Fixation of Pay of Re-employed Pensioners) Orders, 1986 issued vide DoPT O.M No. 3/1/85-Estt. (Pay II) dated 31/07/1986 have been amended, while the remaining part of the Orders are retained. Para 3 of this OM states the Pre-Retirement Pay to be considered for initial fixation of pay of re-employed military pensioners which is as mentioned below:

            (a)        For Army:  Pay (including deferred pay) and rank pay, Grade/trade/technical/ and                          rank Corps pays, Increments of pay for length of service, Good Service/Good                                           conduct pay, Proficiency pay/ special Good Service pays, Classification pay, Deferred                  pay, Personal Allowance (Ris/Sub.Major), Extra Duty pays.

                (b)          For Navy:   Basic Pay, pay (including deferred Pay), Good Conduct pay, Non-                                      Substantive Pay, War service Increments Higher Pt. II –Qualification pay,                                       Good/Deferred Pay Classification Pay.

                (c)           For Air Force:  Basic Pay, Pay (including deferred pay), Good Service/Good Conduct                       pay. Air Proficiency pay, Badge pay, War Service increments, Classification pay,                                  Deferred pay.

4.            In this regard, it has been clarified by the Ministry of Defence (Finance) as communicated by CGDA vide letter No. AT/II/2432-VI dated 15/02/1993 (copy enclosed) that in all cases where the entire amount of pension is ignored, the initial pay on re-employment has to be fixed at the minimum of the scale of the re-employed post and therefore there is no necessity of indicating the pay drawn by the individual from the date of enrolment to the date of discharge, and only particulars of Last Pay drawn will serve the purpose. In other words, where the entire amount of pension is ignored, furnishing the Last Pay drawn particulars of Military Pensioner will suffice for the purpose of fixation of pay on re-employment. It may be noted that due to the introduction of running Pay Bands and Grade Pay in the 6^th CPC, the term “Minimum Pay” has been replaced with “Entry Pay” in the revised Pay Structure as given in Para 4 (b)(i) of the DoPT O.M dated 05/04/2010.

5.            It is submitted that there are two categories of ex-servicemen who are re-employed in EPFO at Peenya Region, viz. those retired prior to 01/01/2006 and re-employed after 01/01/2006, and those retired after 01/01/2006 and re-employed thereafter. The following paragraphs explain the manner of fixation of pay of the re-employed pensioners of Peenya Region:

                (a)          In the case of ex-servicemen who retired prior to 01/01/2006 and re-employed after                                     01/01/2006:

                                In these cases, fixation of pay has been done in accordance with Paras 4 (d) (i) and 3(v) of           DoPT O.M dated 05/04/2010, i.e. by notionally arriving at their revised basic pay at the time of         retirement as if they had retired under the revised pay structure. For this purpose, the fitment   table of the Defence Service Rank from which they had retired, the stage of basic pay at the time             of their retirement and the elements of Pre-Retirement Pay as per their Last Pay Certificate was                 taken into consideration and their basic pay on re-employment was fixed at the same stage as           

               

                the notional last basic pay before retirement so arrived at. They have been granted the grade pay           of the re-employed post, i.e. ₹ 2,400/-. The entire pension and pension equivalent gratuity have                 been ignored for the purpose of fixation of pay, as all these ex-servicemen have retired from the       defence forces before attaining the age of 55 years and in the rank below Commissioned Officer

                Rank, i.e. Personnel Below Officer Rank (PBOR). Illustration of the fixation is given below:

Service retired from	Indian Air Force
Date of Retirement from IAF	30/04/2004
Pay as on date of retirement (As per LPC)	Basic Pay = ₹ 4,745
	Good Conduct Badge Pay = ₹ 120
Corresponding Pay as per fitment table	Basic Pay = ₹ 4,745 x 1.86 = ₹ 8,830 Grade Pay = ₹ 2,800 MSP = ₹ 2,000/- Total Pay = ₹ 13,630/- + ₹ 120/- (GCB Pay) = ₹ 13,750/- (Note: GCB Pay is part of Pre-Retirement Pay mentioned in Para 3 (c) above)
Date of joining EPFO on re-employment	12/06/2006
Pay fixed on re-employment in the EPFO as on 12/06/2006.	Pay in PB = ₹ 11,350/- Grade Pay = ₹ 2,400/- Total = ₹ 13,750/-

               

(b)          In the case of ex-servicemen retired after 01/01/2006 and re-employed thereafter:

                                In these cases, the fixation of pay is done in accordance with Para 4 (b)(i), 4 (d)(i) and                    Para 3(v) of DoPT O.M dated 05/04/2010. For this purpose, all the elements constituting Pre-              Retirement Pay as mentioned in Para 3 above and as obtained from their Last Pay Certificate and               PPO have been consolidated to form the Entry Pay. The amount so arrived at has been fixed as         the Basic Pay as on the date of joining EPFO. They have been granted the grade pay of the re-        employed post, i.e. ₹ 2,400/-. The entire pension and pension equivalent gratuity have been                 ignored for the purpose of fixation of pay, as all these ex-servicemen have retired from the       defence forces before attaining the age of 55 years and in the rank below Commissioned Officer             Rank, i.e. Personnel Below Officer Rank (PBOR). Illustration of the fixation is given below:

Service retired from	Indian Air Force
Date of Retirement from IAF	30/06/2009
Pay as on date of retirement (As per LPC)	Pay in PB = ₹ 11,930
	Grade Pay = ₹ 4,200/-
	MSP = ₹ 2,000/-
	Classification Pay = ₹ 0/-
	Good Conduct Badge Pay = ₹ 240/- (Note: GCB Pay is part of Pre-Retirement Pay mentioned in Para 3 (c) above)
	Total = ₹ 18,370/-
Date of joining EPFO on re-employment	23/08/2010
Pay fixed on re-employment in the EPFO as on 23/08/2010	Pay in PB = ₹ 15,970/- Grade Pay = ₹ 2,400/- Total = ₹ 18,370/-

6.            It may be noted that Para 4(b)(i) states that where pension is fully ignored, the initial pay on re-employment shall be fixed as per entry pay in the revised pay structure of the re-employed post

applicable in the case of direct recruits. Here, it is to be understood that the entry pay of a fresh direct recruiton appointment to the post of SSA is fixed at ₹ 7,510/-, which is the minimum for the post and is

to be done in accordance with Rule 8 of CCS (RP) Rules, 2008. Whereas, fixation of pay of ex-servicemen is governed by Rule 7 of CCS (RP) Rules, 2008, as stated in DoPT O.M dated 11/11/2008.

7.            Further, as regards Military Service Pay (MSP) is concerned, DoPT O.M. 3/19/2009 Estt (Pay II) dated 08/11/2010 clearly states that “in respect of all those Defence Officers/Personnel whose pension contains an element of MSP that need not be deducted from the pay fixed on re-employment. In other words, MSP will have to be reckoned for fixation of pay on re-employment.

8.            The pay of ex-servicemen re-employed in EPFO at Peenya Region has been fixed by taking into consideration the relevant provisions of the Rules stated above. The pay fixation methodology adopted by Income Tax Department in fixation of pay of re-employed ex-servicemen in their department has also been taken into consideration for the purpose.

Yours faithfully,

                                                                                                                                                                               

                                                                                                                                                                                 Sd/--

[K. NARAYANA]

Regional P.F. Commissioner-I

Peenya Region

Encl: As stated

Copy to:

The Central Provident Fund Commissioner  [Byname to: Shri. Amit Singla, RPFC-II (HRM-IV)]

Employees Provident Fund Organisation,

Bhavishya Nidhi Bhavan, Head Office,

No. 14, Bhikaji Cama Place,

New Delhi – 110 006.

                                                                                                               

                                                                                                                                                                                  Sd/----

[K. NARAYANA]

Regional P.F. Commissioner-I

                                                                                                                                                                                Peenya Region