CENTRAL CIVIL SERVICES (FIXATION OF PAY OF RE-EMPLOYED PENSIONERS) ORDERS, 1986.
(1).Para 2. APPLICATION:
Save as others wise provided in these orders these orders shall apply to all persons who are reemployed in Civil Services and posts in connection with the affairs of the Union Government after retirement on pension gratuity and / or Contributory Provident Fund benefits from the service of Union Government including Railways, Defence and posts and telegraphers State Governments and Union Territory Administrations and Public Sectors Undertaking Local Bodies Autonomous Bodies like Universities or Semi Government organizations like Posts and telegraphers.
******The pay fixation is granted to employees of Railways, EPFO, LIC, PSUs, Banks, postal and state departments. How DOPT have two sets of interpretations? It is clear violation of article 14 (Right of Equality) of constitution. *******
(2).Para 3 (2).PRE-RETIREMENT PAY: means the substantive pay last drawn before retirement.
(ix) In the case of retired Defence Services Personnel of the rank of JCO, NCO, or OR in the Army and corresponding ranks in the Navy or Air Force, the items of emoluments mentioned below shall constitute pre-retirement pay.
ARMY (JCO, NCO or OR)
AIR FORCE
Basic Pay, Good Service/Good conduct pay, air proficiency pays badge pay
War service increments, classification pay, deferred pay.
****MSP and Grade pay***** (added vide DOPT OM 3/19/2009 Estt (pay II) dated 08/11/2010. Grade pay concept introduced in 6thCPC.
(3). ANNEXURE I: whereas in accordance with the orders contained in the Ministry of Finance Office Memorandum No. 8(34) Estt.III/57 dated the 25th Nov, 1958. As modified up to date, the initial pay or re-employment plus the gross amount of pension and/or the pension equivalent of other forms of retirement benefits shall not exceed
The pay he draw before his retirement (pre-retirement pay) or
Rs.3500 whichever is less.(*****changed to Rs.80,000/-)
***Pension/PEG and retirement benefits are ignored by 1986 OM issued by DOPT. So Gross pension need not to be added in initial pay fixed to find out hardship*****
***1964 Finance ministry OM clearly states that pre-retirement pay is to be taken into account for initial pay fixation.
****DOPT OM 3/19/2009 dated 08/11/2010 states that MSP to be included in pre-retirement pay of re-employed PBOR for initial pay fixation*****
(4). Para 4 (d) (i) : In the case of persons retiring before attaining the age of 55 years and who are re-employed, pension (including pension equivalent of gratuity and other forms of retirement benefits) shall be ignored for initial pay fixation to the following extent:
In the case of ex-serviceman 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.
In the case of service officers belonging to the Defence Forces and Civilian Pensioners who held Group ‘A’ posts at the time of their retirement, the first Rs.500/- of the pension and pension equivalent of retirement benefits shall be ignored.
*****Ignorable amount for officers is changed from Rs.500/- to Rs. 4000/-.
*****Entire amount of Pension/PEG and retirement benefits is ignored for PBOR who retired before 55 years of age. *****
****Initial pay of PBOR is to be fixed as per pre retirement pay Para 3(2)(ix) of 1986 OM of DOPT.
No. 3/19/2009 Estt. Pay II Ministry of Personnel, Public Grievances & Pensions Department of Personnel & Training, New Delhi,
8th November 2010
Office Memorandum
(5). Subject: Fixation of pay of re-employed pensioners -Treatment of Military service Pay
In the instructions issued by the Ministry of Defence vide their letter No. 1/69/2008/D (Pay/Service) dated 24th July 2009, Pre-retirement pay has been defined as under:
In respect of re-employment taking place on/or after 1.1.2006 pre-retirement pay for those who retired after 1.1.2006 means the pay in the pay band plus grade pay but inclusive of Non-Practicing Allowance (NPA) if any, last drawn before retirement.
Post -2006 retirees, the MSP is not reckoned in the pre-retirement pay for the purposes of pay fixation on re-employment. However, for pension purposes the reckonable emoluments are – basic pay + grade pay + MSP + NPA wherever admissible. Therefore, while MSP is not taken into consideration for the purposes of pay fixation on re-employment, the element of MSP in pension is deducted.
Hence, 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?
*****who are those lucky ex-servicemen for whom DOPT is directing, MSP to be included in pre-retirement pay for the purpose of fixation of initial pay on re-employment?***********
No. 3/19/2009 Estt. (Pay II)
Government of India Ministry of Personnel, Public Grievances & Pensions Department of Personnel & Training, New Delhi,
Dated: 05th April, 2010
(6) Para 3 (v): Fixation of pay of personnel/officers who retired prior to 1.1.2006 and who have been re-employed after 1.1.2006:
In the case of personnel/officers who had retired prior to 1.1.2006 and who have been re-employed after 1.1.2006, 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 Rs.67000 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.
(7). Para 4(b) (i): 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 reemployed post applicable in the case of direct recruits appointed on or after 1.1.2006 as notified vide Section II, Part A of First Schedule to CCS (RP) Rules, 2008.
Clarification 1: Letter issued by MOD (finance),CGDA dated 15/02/93 justifying pay fixation of EXSM under 4(b) (i) as per last pre-retirement pay.
Clarification2: 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 1.1.2006 does not imply that on re-employment pay will be fixed at entry pay only. Please read carefully,”Initial pay on re-employment shall be fixed as per entry pay (not on entry pay) i.e. entry pay should be taken into account while fixing the initial pay of PBOR. It should not be at the stage lower than entry pay.
(8).FIXATION OF PAY ACCORDING TO RULE 7 CCS (RP) Rules 2008
The procedure of initial pay fixation has been completely changed after VI CPC has come to force wef 01/1/2006. The DOPT has issued guidelines for initial pay fixation of re-employed pensioners including retired from armed forces of Indian Union vide OM No.3/13/2008-Estt. (Pay II) dated 11th November, 2008. The OM clearly directs without any doubt that the initial pay of all re-employed pensioners should be fixed according to the provisions of Rule 7 of CCS (RP) Rules 2008.
Rule 7 of CCS (RP) Rules 2008 provides that the initial pay of central govt employees should be fixed in respect of their substantive pay. Which means the initial pay of re-employed ex-servicemen should be fixed at the same stage of pay (substantive pay) last drawn by them before retirement from military service.
Here a doubt arises, when we read the para 4 (b) (i) of DOPT OM dtd 05/4/2010 which says, in cases where entire pension is ignored, initial pay should be fixed as per entry pay of the re-employed post as in the case of direct recruits employed wef 01/1/2006. Here the line “pay shall be fixed as per entry pay of the re-employed post” implies the pay scale/structure of the re-employed post to be considered while initial pay fixation and not the minimum pay at which pay is to be fixed.
Taking this para as an excuse, central govt depts fix the initial pay at the minimum of the re-employed post. Which totally wrong since such pay fixation falls under Rule 8 of CCS (RP) Rules 2008. Whereas DOPT OM dtd 11/11/2008 clearly directs to fix the initial pay according to the provisions of Rule 7 of CCS (RP) Rules 2008. Hence correct procedure to be adopted while initial pay fixation of re-employed ex-servicemen is that, the initial pay should be fixed as per entry pay of the re-employed post but Rule 7 of CCS (RP) Rules 2008 should be applied as provded vide Para 2 (i) of the DOPT OM dtd 11/11/2008. Hope all understood the conclusion. i.e. Without any doubt all re-employed ex-servicemen in civil central govt departments are eligible to get their last pay drawn(substantive pay) fixed while initial pay fixation but in the pay scale/structure of re-employed post
(9) Pay fixation on the basis of Hardship/Advance increment. Supreme Court verdict of B. Ravindra Vs DG post ( 1996) and Finance ministry’s OM of 1958.
Supreme Court in its judgment dated 08/11/96 Director General of Post Vs. B.Ravindran and ors has given reference of Finance Ministry’s OM dated 25/11/1958,1964,1978,1983 and 1985. On 25/11/58 the Government of India took a policy decision in the matter of procedure to be adopted in fixing the pay of pensioners re-employed in central Civil Dept. “The initial pay on re-employement should be fixed at the minimum stage of the scale prescribed for the post in which an individual is re-employed. In cases where it is felt that the fixation of initial pay of the re-employed official at the minimum of the prescribed scale will cause undue Hardship, the pay may be fixed at a higher stage by allowing one increment for each year of service which the officer has rendered before retirement.
The intention behind the orders issued by Finance Ministry was to give some more benefits to the re-employed pensioner. The effect of the benefit was to be given at a stage prior to the consideration of hardship. The ignorable part of the pension was to be ignored while totaling up initial pay plus gross pension in order to find out whether retired pensioners thereby was likely to get more or less what he was getting at the time of retirement( pre-retirement pay).
It appears that the effect of making the entire pension ignorable in certain cases was examined by DOPT in consultation with finance ministry. It was decided to issue the following clarification with respect to the mode of fixation of re-employed pensioners:-
When a re-employed pensioners asks for re-fixation of pay under 1983 orders, his pay has to be fixed at the minimum of the scale. The question of granting him advance increment arises only if there is hardship. Hardship is seen from the point( whether pay plus pension plus PEG whether ignorable or not ) is less than the last pay drawn at the time of retirement. If there is no Hardship no advance increment can be granted.
PCDA Allahabad circular 166 and 179 dated 07/03/2013 and 12/05/2015 and defence minister/Finance minister Sh. Arun Jaitley reply in Rajya Sabha dated 12/08/2014” If the pay of re-employed pensioners who held post below the ranks of commissioned officer (PBOR) at the time of their retirement before attaining the age of 55 years, is fixed at a higher stage because of advance increment and no protection of the last pay drawn is being given the pay is treated as fixed at a minimum of the pay scale for the purpose of ignoring the entire pension and allowing Dearness relief on pension.
Prepared by : Ehsan, Kanpur
(1).Para 2. APPLICATION:
Save as others wise provided in these orders these orders shall apply to all persons who are reemployed in Civil Services and posts in connection with the affairs of the Union Government after retirement on pension gratuity and / or Contributory Provident Fund benefits from the service of Union Government including Railways, Defence and posts and telegraphers State Governments and Union Territory Administrations and Public Sectors Undertaking Local Bodies Autonomous Bodies like Universities or Semi Government organizations like Posts and telegraphers.
******The pay fixation is granted to employees of Railways, EPFO, LIC, PSUs, Banks, postal and state departments. How DOPT have two sets of interpretations? It is clear violation of article 14 (Right of Equality) of constitution. *******
(2).Para 3 (2).PRE-RETIREMENT PAY: means the substantive pay last drawn before retirement.
(ix) In the case of retired Defence Services Personnel of the rank of JCO, NCO, or OR in the Army and corresponding ranks in the Navy or Air Force, the items of emoluments mentioned below shall constitute pre-retirement pay.
ARMY (JCO, NCO or OR)
AIR FORCE
Basic Pay, Good Service/Good conduct pay, air proficiency pays badge pay
War service increments, classification pay, deferred pay.
****MSP and Grade pay***** (added vide DOPT OM 3/19/2009 Estt (pay II) dated 08/11/2010. Grade pay concept introduced in 6thCPC.
(3). ANNEXURE I: whereas in accordance with the orders contained in the Ministry of Finance Office Memorandum No. 8(34) Estt.III/57 dated the 25th Nov, 1958. As modified up to date, the initial pay or re-employment plus the gross amount of pension and/or the pension equivalent of other forms of retirement benefits shall not exceed
The pay he draw before his retirement (pre-retirement pay) or
Rs.3500 whichever is less.(*****changed to Rs.80,000/-)
***Pension/PEG and retirement benefits are ignored by 1986 OM issued by DOPT. So Gross pension need not to be added in initial pay fixed to find out hardship*****
***1964 Finance ministry OM clearly states that pre-retirement pay is to be taken into account for initial pay fixation.
****DOPT OM 3/19/2009 dated 08/11/2010 states that MSP to be included in pre-retirement pay of re-employed PBOR for initial pay fixation*****
(4). Para 4 (d) (i) : In the case of persons retiring before attaining the age of 55 years and who are re-employed, pension (including pension equivalent of gratuity and other forms of retirement benefits) shall be ignored for initial pay fixation to the following extent:
In the case of ex-serviceman 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.
In the case of service officers belonging to the Defence Forces and Civilian Pensioners who held Group ‘A’ posts at the time of their retirement, the first Rs.500/- of the pension and pension equivalent of retirement benefits shall be ignored.
*****Ignorable amount for officers is changed from Rs.500/- to Rs. 4000/-.
*****Entire amount of Pension/PEG and retirement benefits is ignored for PBOR who retired before 55 years of age. *****
****Initial pay of PBOR is to be fixed as per pre retirement pay Para 3(2)(ix) of 1986 OM of DOPT.
No. 3/19/2009 Estt. Pay II Ministry of Personnel, Public Grievances & Pensions Department of Personnel & Training, New Delhi,
8th November 2010
Office Memorandum
(5). Subject: Fixation of pay of re-employed pensioners -Treatment of Military service Pay
In the instructions issued by the Ministry of Defence vide their letter No. 1/69/2008/D (Pay/Service) dated 24th July 2009, Pre-retirement pay has been defined as under:
In respect of re-employment taking place on/or after 1.1.2006 pre-retirement pay for those who retired after 1.1.2006 means the pay in the pay band plus grade pay but inclusive of Non-Practicing Allowance (NPA) if any, last drawn before retirement.
Post -2006 retirees, the MSP is not reckoned in the pre-retirement pay for the purposes of pay fixation on re-employment. However, for pension purposes the reckonable emoluments are – basic pay + grade pay + MSP + NPA wherever admissible. Therefore, while MSP is not taken into consideration for the purposes of pay fixation on re-employment, the element of MSP in pension is deducted.
Hence, 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?
*****who are those lucky ex-servicemen for whom DOPT is directing, MSP to be included in pre-retirement pay for the purpose of fixation of initial pay on re-employment?***********
No. 3/19/2009 Estt. (Pay II)
Government of India Ministry of Personnel, Public Grievances & Pensions Department of Personnel & Training, New Delhi,
Dated: 05th April, 2010
(6) Para 3 (v): Fixation of pay of personnel/officers who retired prior to 1.1.2006 and who have been re-employed after 1.1.2006:
In the case of personnel/officers who had retired prior to 1.1.2006 and who have been re-employed after 1.1.2006, 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 Rs.67000 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.
(7). Para 4(b) (i): 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 reemployed post applicable in the case of direct recruits appointed on or after 1.1.2006 as notified vide Section II, Part A of First Schedule to CCS (RP) Rules, 2008.
Clarification 1: Letter issued by MOD (finance),CGDA dated 15/02/93 justifying pay fixation of EXSM under 4(b) (i) as per last pre-retirement pay.
Clarification2: 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 1.1.2006 does not imply that on re-employment pay will be fixed at entry pay only. Please read carefully,”Initial pay on re-employment shall be fixed as per entry pay (not on entry pay) i.e. entry pay should be taken into account while fixing the initial pay of PBOR. It should not be at the stage lower than entry pay.
(8).FIXATION OF PAY ACCORDING TO RULE 7 CCS (RP) Rules 2008
The procedure of initial pay fixation has been completely changed after VI CPC has come to force wef 01/1/2006. The DOPT has issued guidelines for initial pay fixation of re-employed pensioners including retired from armed forces of Indian Union vide OM No.3/13/2008-Estt. (Pay II) dated 11th November, 2008. The OM clearly directs without any doubt that the initial pay of all re-employed pensioners should be fixed according to the provisions of Rule 7 of CCS (RP) Rules 2008.
Rule 7 of CCS (RP) Rules 2008 provides that the initial pay of central govt employees should be fixed in respect of their substantive pay. Which means the initial pay of re-employed ex-servicemen should be fixed at the same stage of pay (substantive pay) last drawn by them before retirement from military service.
Here a doubt arises, when we read the para 4 (b) (i) of DOPT OM dtd 05/4/2010 which says, in cases where entire pension is ignored, initial pay should be fixed as per entry pay of the re-employed post as in the case of direct recruits employed wef 01/1/2006. Here the line “pay shall be fixed as per entry pay of the re-employed post” implies the pay scale/structure of the re-employed post to be considered while initial pay fixation and not the minimum pay at which pay is to be fixed.
Taking this para as an excuse, central govt depts fix the initial pay at the minimum of the re-employed post. Which totally wrong since such pay fixation falls under Rule 8 of CCS (RP) Rules 2008. Whereas DOPT OM dtd 11/11/2008 clearly directs to fix the initial pay according to the provisions of Rule 7 of CCS (RP) Rules 2008. Hence correct procedure to be adopted while initial pay fixation of re-employed ex-servicemen is that, the initial pay should be fixed as per entry pay of the re-employed post but Rule 7 of CCS (RP) Rules 2008 should be applied as provded vide Para 2 (i) of the DOPT OM dtd 11/11/2008. Hope all understood the conclusion. i.e. Without any doubt all re-employed ex-servicemen in civil central govt departments are eligible to get their last pay drawn(substantive pay) fixed while initial pay fixation but in the pay scale/structure of re-employed post
(9) Pay fixation on the basis of Hardship/Advance increment. Supreme Court verdict of B. Ravindra Vs DG post ( 1996) and Finance ministry’s OM of 1958.
Supreme Court in its judgment dated 08/11/96 Director General of Post Vs. B.Ravindran and ors has given reference of Finance Ministry’s OM dated 25/11/1958,1964,1978,1983 and 1985. On 25/11/58 the Government of India took a policy decision in the matter of procedure to be adopted in fixing the pay of pensioners re-employed in central Civil Dept. “The initial pay on re-employement should be fixed at the minimum stage of the scale prescribed for the post in which an individual is re-employed. In cases where it is felt that the fixation of initial pay of the re-employed official at the minimum of the prescribed scale will cause undue Hardship, the pay may be fixed at a higher stage by allowing one increment for each year of service which the officer has rendered before retirement.
The intention behind the orders issued by Finance Ministry was to give some more benefits to the re-employed pensioner. The effect of the benefit was to be given at a stage prior to the consideration of hardship. The ignorable part of the pension was to be ignored while totaling up initial pay plus gross pension in order to find out whether retired pensioners thereby was likely to get more or less what he was getting at the time of retirement( pre-retirement pay).
It appears that the effect of making the entire pension ignorable in certain cases was examined by DOPT in consultation with finance ministry. It was decided to issue the following clarification with respect to the mode of fixation of re-employed pensioners:-
When a re-employed pensioners asks for re-fixation of pay under 1983 orders, his pay has to be fixed at the minimum of the scale. The question of granting him advance increment arises only if there is hardship. Hardship is seen from the point( whether pay plus pension plus PEG whether ignorable or not ) is less than the last pay drawn at the time of retirement. If there is no Hardship no advance increment can be granted.
PCDA Allahabad circular 166 and 179 dated 07/03/2013 and 12/05/2015 and defence minister/Finance minister Sh. Arun Jaitley reply in Rajya Sabha dated 12/08/2014” If the pay of re-employed pensioners who held post below the ranks of commissioned officer (PBOR) at the time of their retirement before attaining the age of 55 years, is fixed at a higher stage because of advance increment and no protection of the last pay drawn is being given the pay is treated as fixed at a minimum of the pay scale for the purpose of ignoring the entire pension and allowing Dearness relief on pension.
Prepared by : Ehsan, Kanpur
