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As per Department of Pension's O.M. No. 38/37/08-P&PW(A) dated 1.9.2008, the revised pension of pre-2006 pensioners shall, in no case, be lower than fifty percent of the minimum of the pay in the pay band plus the grade pay corresponding to the pre-revised pay scale from which the pensioner had retired. In the case of HAG+ and above scales, this will be fifty percent of the minimum of the revised pay scale. Further in the case of Family pensioners this will be thirty percent of the minimum of the pay in the pand plus grade pay corresponding to the pre-revised pay scale from which the pension had retired.
Now, in response to doubts raised from various quarters in regard to the applicability of the above provision in the case of revision of pension/family pension in respect of the pensioners who were in receipt of compulsory retirement pension and compassionate allowance under Rules 40 and 41 of CCS(Pension) Rules, 1972. The matter has been examined in the light of the instructions/orders issued after Fifth Central Pay Commission for revision of pension/family pension in such cases.
It was clarified in this Department's O.M. No.45/86/97-P&PW(A) dated 25.3.2004 that the provisions of O.M. dated 17.12.1998 relating to stepping up of pension to 50% of the minimum of the revised scale of pay as on 1.1.96 of the post held by the pensioner at the time of retirement shall not be applicable in case of compulsory retirement pension and compassionate allowance.
For more details download Office Memorandum No: 38/37/08-P&PW(A) dated 22.07.2011