Dearness Relief to re employed pensioners – PCDA Clarification

Dearness Relief to re employed pensioners – Elements to be taken for determining last pay drawn for last pay protection – PCDA Clarification

Principal Controller of Defence Accounts in charge of Pensions has issued a Clarification Circular regarding Elements to be taken for determining last pay drawn for last pay protection

Office of the Principal Controller of Defence Accounts (Pension),
Draupadi Ghat, Allahabad-211014

Circular No.179                                                                                                                             Date:12.05.2015

To,

1. The Director of Treasuries of all state .
2. The Manger CPPC of Public Sector Banks .
3. The CDA (PD) Meerut
4. The CDA-Chennai
5. The Nodal Officers (ICICI/AXIS/HDFC Bank)
6. The Pay & Accounts Officers .
7. Military Attache, Indian Embassy Kathmandu, Nepal.
8. The DPDO .
9. The Post Master. .

Sub: Payment of Dearness Relief to re employed pensioner: Clarification thereof.

**************

As per para l(a) of MOD letter No. 7(1)/95/D(Pen/Services) dated 28.8.2000, entire pension admissible to ex-servicemen who held post below commissioned officers (PBOR) at the time of retirement, is ignored and 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 pensioners will consequently be entitled to dearness relief on their pension.

Deptt. of Pension and Pensioners Welfare, vide their UO No.41/42/2007/P&PW(G) dt. 03.04.2008, reproduced under this office circular No. 386 dt. 19.06.2008, further clarified that if the pay is fixed at a higher stage because of advance increments and no protection of last pay drawn is given, the pay should be treated as fixed at a minimum only for the purpose of ignoring the entire pension and allowing dearness relief on pension. For availing this benefit the ex-servicemen would have retired at post below commissioned officers Rank (PBOR) before attaining the age of 55 years.

Now representations from the banks, where number of ex-clarify the elements to be taken into account for assessing the last pay drawn by the ex-servicemen for the purpose of last pay protection.

The dearness relief on re-employment should be regulated by the Pension Disbursing Agencies on the basis of certificate issued by re-employer, clearly stating whether benefit of last pay protection has been given or not. However, on examination of cases submitted by the banks it has been found that pay scale in banks are still on old pattern, whereas ex-servicemen have been retired with Pay in Pay Band, Grade Pay, MSP, Group Pay etc. In such cases it is clarified that for the purpose of assessing the last pay drawn for last pay protection, the elements to be taken into account should be last pay in pay band i.e. Band Pay plus Grade Pay, last drawn before retirement as envisaged vide MOP, PG & P, DOPT OM NO. 3/19/2009 Estt. Pay II dt. 8th Nov 2010 and no other elements should be taken for this purpose.

In view of the above, it is advised that all the cases of dearness relief where pay of ex-servicemen has been fixed at a higher stage because of advance increments may be reviewed and regulated accordingly.

No. AT/Tech/263-XVIII Date 12.05.2015

(A.D. Mishra)
Asst.CDA (P)

Download Controller of Defence Accounts (Pensions), Allahabad Circular No.179 dated 12.05.2015

4 Comments

  1. Ridiculous. Show bankrupry of bureaucracy . Reason may be inefficiency or corruption Parliament says something different . Tribunals and courts sing another version.
    SIMPLE LOGIC IS THE ELEMENTS ON WHICH DA R PAID ; R CALLED PAY ELEMENTS.
    JUST PROTECTING TWO ELEMENTS OUT OF FOUR ELEMENTS.. REST DA OF UNPROTECTED ELEMENTS ; who will pay.
    Bank or institution will pay DA on two elements but DA on pension of all four elements taken back.
    THE SPIRIT OF PAY PROTECTION IS KILLED . THE DEFENCE

  2. They’re just behaving ridiculously, theknow everything understand the logic too but stubborn like child to cut the privilege

  3. I am an pre-2006 retiree with pay structure
    of vth CPC joined PSB in 2009.Bank has fixed my pay giving four increments which is much
    lower scale than my junior post-2006
    retiree joined bank along with me.
    Can I save my DA of pension with this low pay in bank.Otherwise I am going to finish with
    growing liabilities.

  4. I AM WORKING IN SBOP WHILE FIXING THE PAY AND AS PER THE INSTRUCTIONS I CEASED
    MY DA ON PENSION, NOW AFTER THE CIRCLAR 179 I APPROACHED THE PENSION DISBURSING
    BRANCH SBI AND THEY ADVISED TO GET CERTIFICATE FROM EMPLOYER STATING
    THAT THE PREVIOUS SERVICE BENEFITS WERE IGNORED WHILE FIXING THE PAY
    AND UR DA WILL RESTART BUT IT IS ALREADY SIX MONTHS PASSED NO CERTIFICATE
    HAS BEEN ISSUED .KINDLY ADVISE ME WHAT COURSE OF ACTION I SHOULD TAKE.

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