Office of the Principal Controller of Defence Accounts (Pension),
Draupadi Ghat, Allahabad-211014
Circular No.179
Date:12.05.2015
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
Source: www.pcdapension.nic.in
(A.D. Mishra)
Asst.CDA (P)
Source: www.pcdapension.nic.in
[http://pcdapension.nic.in/6cpc/Circular-179.pdf]