Delinking of Qualifying Service of 33 years w.e.f. 01.01.2006 - Restoration of pension in respect of Defence Personnel i.r.o. PSU/CAB absorbed : PCDA Circular 602

OFFICE OF THE PR. CONTROLLER OF DEFENCE ACCOUNTS (PENSIONS) 

DRAUPADI GHAT, ALLAHABAD- 211014 

Circular No. 602 

Dated: 10.07.2018 

To, 

1. The Chief Accountant, RBI, Deptt. Of Govt, Bank Accounts, Central Office C-7, Second Floor, Bandre- Kuria Complex, P B No. 8143, Bandre East Mumbai-400051 

2. All CMDs, Public Sector Banks. 

3. The Nodal Officers, ICICl/HDFC/AXIS/IDBI Banks 

4. All Managers, CPPCs 

5. Military and Air Attache, Indian Embassy, Kathmandu, Nepal 

6. The PCDA (WC), Chandigarh 

7. The CDA (PD), Meerut 

8. The CDA, Chennai 

9. The Director of Treasury, All States 

10. The Pay and Accounts Officer, Delhi Administration, R K Puram and Tis Hazari, New Delhi. 

11. The Pay and Accounts Office, Govt of Maharashtra, Mumbai 

12. The Post Master Kathua (J&K), Camp Bell Bay. 

13. The Principal Pay and Accounts Officer Andaman and Nicobar Administration Port Blair. 

Subject :- Restoration of pension in respect of Defence Service Personnel who had drawn lump sum payment on absorption in Public Sector Undertakings/ Autonomous Bodies-delinking of qualifying service of 33 years for revised pension with effect from 01.01.2006. 

Reference:- This office Circular No. 568 dated 13.10.2016 and Circular No. 592 dated 05.12.2017. 

A Copy of Govt. of India, Ministry of Defence, Deptt of ESW letter No. 1(04)/2007/D(Pen/Pol) dated 20.06.2018 on the above subject, which is self explanatory, is forwarded herewith for your information, guidance and necessary action. 

2. In terms of GoI, MoD letter No. 1(2)/2016-D(Pen/Pol) dated 30.09.2016, revised consolidated pension and family pension of pre-2006 Armed Forces pensioners w.e.f. 1.1.2006 shall not be lower than 50 % and 30% respectively of the minimum of the pay in the pay band plus grade pay corresponding to the pre-revised scale from which the pensioner had retired/ discharged/ invalided out/ died including Military Service Pay and “X” Group pay, if any, without pro rata reduction of pension even if they had rendered qualifying service of less than 33 years at the time of retirement. 

3. Now it has been decided by the Government that while determining the revised pension of above said category of absorbee pensioners/family pensioners with effect from 1.1.2006, the pension/ family pension shall also be revised in accordance with the provisions contained in the GoI, MoD letter No. 1(2)/2016-D(Pen/Pol) dated 30.09.2016 referred above. 

4. The pension in terms of this order will be revised by the respective Pension Sanctioning Authorities Suo-moto by issuing Corrigendum PPOs in all affected cases. No application in this regard shall be called for either from the pensioners or from the PDAs concerned. Further, PDAs would also brought into notice of PSAs, such left out cases, if any, for revision of pension. 

5. All other terms and conditions shall remain unchanged. 

6. This circular has been uploaded on PCDA (P) website www.pcdapension.nic.in. 

(Sushil Kumar Singh) 

Jt. CDA(P) 

Source: Click here to view/download the PDF

DA CALCULATION METHOD TO BE MODIFIED

New Delhi: The central government is set to modify the index and base year for calculating Dearness allowance (DA), a move that may result in another type of DA will be given to 4.9 million central government employees and 6.1 million pensioners, the labour ministry sources said.

New series of CPI-IW, which will be used for determining D.A. According to the sources, the labour ministry is re-working the consumer price index (CPI-W) that is used to determine DA and the labour bureau under the ministry has finalised the new CPI-IW with base year 2016.
The sources further said that the base year is proposed to be revised in every six years so that it captures the change in living expenses more accurately.
The base year of the current CPI-IW is 2001 and it was last changed in 2006 by the Sixth Central Pay Commission. Prior to that, the base year was 1982.
DA is an increment paid as a percentage of basic salary to employees to adjust their salary to reflect the change in the cost of living.

The proposed index will include addition of new industrial centres to make price gauze more representative, taking total number of industrial centres under consideration to 88 against 78 now. Additionally, various new items are being added to the list, including cars and mobiles, to cover the change in lifestyle of industrial workers and employees over the last 15 years, the sources said.
The new index will soon go to the technical advisory committee for vetting, after which it will go to the national tripartite consultation before it is finalised, the sources said.
The labour bureau had taken approvals from standing tripartite committee at all stages of development of the index, the official further added.
The Union Cabinet increased DA to 7 percent from 5 percent effective January 2018. The revision done in March was based on the recommendations of the 7th Pay Commission and had benefited the central government employees and the pensioners.
Now, with the latest revision in Dearness Allowance (DA), central government employees can witness further increase in their compensation.