Pre-2006 Pensioners’ Qualifying Service delinked for full pension – Whether all benefited?

Pre-2006 Pensioners in receipt of Pro-Rata Pension which is more than Minimum Pension may not be benefited by OM dated 06.04.2016 for delinking of Qualifying Service from their Pension, and consequently no upward revision in their Pension

Whether qualifying service of Pre-2006 Pensioners in receipt of pension more than minimum Pension is delinked?Readers might be aware that after a prolonged litigation, Pre-2006 Pensioners have finally got orders of Govt in their favour in the form of Department of Pension OM dated 06.04.2016, for delinking of 33 years of Qualifying Service from Pension with effect from 01.01.2006.

Following extract from OM dated 06.04.2016, is the operating portion for the purpose of delinking of Qualifying service from the Pension.

“6. …. It has now been decided that the revised consolidated pension of pre-2006 pensioners shall not be lower than 50% of the minimum of the pay
in the Pay Band and the grade pay (wherever applicable) corresponding to the prerevised pay scale as per fitment table without pro-rata reduction of pension even if they
had qualifying service of less than 33 years at the time of retirement. Accordingly, Para 5 of this Department’s OM of even number dated 28.1.2013 would stand deleted. The arrears of revised pension would be payable with effect from 1.1.2006”

It is apparent from the above para that for the purpose of delinking of 33 years of QS from Pension of Pre-2006 Pensioners, Para 5 of OM dated 28.01.2013 has been deleted.

Para 2 of OM dated 28.01.2013 and Erstwhile Para 5 of OM dated 28.01.2013 reads as follows

“2. It has been decided that the pension ofpre-2006 pensioners as revised w.e.f. 1.1.2006 in terms of para 4.1 or para 4.2 of the aforesaid OM dated 1.9.2008, as amended from time to time, would be further stepped up to 50% of the sum of minimum of pay in the pay band and the grade pay corresponding to the pre-revised pay scale from which the pensioner had retired, as arrived at with reference to the fitment tables …”

” 5. The pension so arrived at in accordance with para 2 above and indicated in Col. 9 of Annexure will be reduced pro-rata, where the pensioner had less than the maximum required service for full pension as per rule 49 of the CCS (Pension) Rules,…”

 

What we interpret out of the above:

While Para 2 of OM dated 28.01.2013 ensures that Pre-2006 Pension is not less than 50% of sum of minimum of pay in the pay band and the grade pay corresponding to pre-revised pay scale from which the pensioner retired, para 5 of OM dated 28.01.2013 restricts the said Pension (50% of sum of pay and GP) to Pro-rata on the basis of QS of the pensioners.

Para 5 of OM dated 28.01.2013, having been deleted by OM dated 06.04.2016, now it is ensured that Pension of Pre-2006 Pensioners shall not be lower than 50% of sum of minimum of pay in the pay band and grade pay corresponding to their pre-revised pay scale irrespective their QS.

So, Qualifying Service of Pre-2006 Pensioners who are in receipt of pro-rata Pension not more than 50% of sum of minimum of pay in the pay band and grade pay corresponding to their pre-revised pay scale, gets delinked now and they are entitled to Full Pension (50% of pay and GP corresponding to pre-revised scale) from 1st January 2006 by virtue of modified OM dated 28.01.2013, 30.07.2015 and 06.04.2016. In the case of family pensioners it will be not less than 30% of pay and gp corresponding to pre-revised scale.

Out of this interpretation following queries arise:

  1. What about the Pre-2006 Pensioners with less than 33 years of qualifying service and fixed with pro-rata pension on the basis of QS at the time of retirement, which is more than 50% of sum of minimum of pay in the pay band and grade pay corresponding to their pre-revised pay scale, after 6CPC revision of pension from 1st Jan 2006?
  2. Are these Pre-2006 Pensioners entitled to delinking of their Qualifying Service from Pension?
  3. Whether OM dated 06.04.2016 has enough provisions to revise the pro-rata Pension fixed under Rule 49 of Pension Rules at the time of retirement, to full Pension by delinking QS right from the date of retirement?

Many pre-2006 Pensioners who are coming under this category are of the opinion that as per OM dated 06.04.2016, their pro-rata pension has to be revised to full Pension by delinking QS right from the date of their retirement and Pension revision as per 6CPC Orders will have to be made based on the Full Pension.

Checkout the opinion of Pre-2006 Pensioners in the form of Comments to GConnect Pre-2006 Pension Arrears Calculator

However, we are of the opinion that delinking QS as per OM dated 06.04.2016 is limited to Pre-2006 Pensioners who are in receipt of Pro-rata Pension not more than 50% of sum of minimum of pay in the pay band and grade pay corresponding to their pre-revised pay scale.

If at all Qualifying Service of all Pre-2006 Pensioners is to be delinked from their Pension, Para 5.4 of OM F.No.38/37/08-P&PW(A) dated 02.09.2008 will have to be modified suitably. This OM which is issued for revision of Pension of Post-2006 Pensioners consequent on implementation 6th Pay Commission recommendations still keeps delinking of qualifying service out of the purview of Pre-2006 Pensioners. Further, Rule 49 of Pension Rules based on which pro-rata was fixed has been modified to this extent as per Para 5.6 of OM dated 02.09.2008

The above conclusion is our interpretation in order to highlight the limitation of OM dated 06.04.2016 issued by Govt for the purpose of delinking qualifying service of pre-2006 from Pension. Readers who concur or differ with this view can provide their valuable opinion as comments to this article. We feel that healthy discussion could decide further course of action by Pre-2006 Pensioners in this issue.

Click here to read Office Memorandum  No. 38/37/08-P&PW (A) dated 06.04.2016

Click here to read Office Memorandum No.38/37/08-P&PW(A) dated 30.07.2015

Click here to read Office Memorandum No.38/37/08-P&PW(A) dated 28.01.2013

Click here to read Office Memorandum No.38/37/08-P&PW(A) dated 01.09.2008

Click here to read Office Memorandum No.38/37/08-P&PW(A) dated 02.09.2008

Click here to to reach Pre-2006 Pension Arrears Calculator for Pro-Rata to Full Pension – 50% of minimum in fitment table

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