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Supreme Court Judgment – CCS Pension Rules for BSF Personnel

Border Security Force Rules, 1969 – Rule 19 – pensionary benefits – Held, the respondents had resigned from BSF service immediately after completion of 10 years service and, therefore, they are not entitled to any pensionary benefits.

R.M. LODHA AND H.L. GOKHALE, JJ.

APRIL 26, 2012
 
CIVIL APPEAL NO(s) . 9647-9650 OF 2003 

J U D G M E N T

 Delay condoned.

2. We have heard Mr. Tara Chandra Sharma, learned counsel for the appellants, and Mr. M.P. Vinod, learned counsel for the respondents.

3. The respondents were the original writ petitioners before the High Court. They were constables in the Border Security Force (BSF). On completion of 10 years service, they tendered resignation. Their resignation was accepted by the Commandant 48 BN BSF. The order accepting resignation provided that they would be entitled to pensionary benefits at their own request on extreme compassionate grounds. Later on, it was found that the pensionary benefits were not admissible to them and few others whose resignation was accepted under Rule 19 of the Border Security Force Rules, 1969 (for short, ‘BSF Rules’). Accordingly, on October 20, 1998, a letter was sent intimating them that no pensionary benefits were admissible to those who have proceeded on resignation under Rule 19 of the BSF Rules. However, their case for reinstatement in BSF would be considered subject to refund of all payment made to them from the Government such as GPF, Gratuity, CGEGIS, etc. on their resignation. The respondents challenged the above communication by filing two separate Writ Petitions.

4. The writ petitions were contested by the present appellants (respondents therein). Their stand in the High Court was that the writ petitioners were governed by the Central Civil Services (Pension) Rules, 1972 (for short, ‘CCS (Pension) Rules’) and as per these rules the minimum qualifying service for pension is 20 years and, therefore, they were not entitled to any pension.

5. The Single Judge of the High Court referred to Rules 19 and 182 of the BSF Rules and relevant provisions of CCS (Pension) Rules, particularly Rules 26, 48-A and 49(2)(b). The Single Judge held that when the petitioners (therein) were allowed to resign with pensionary benefits under Rule 19 of the BSF Rules, then their claim for pension must be worked out under Rule 49(2)(b) of the CCS (Pension) Rules. Accordingly, the Single Judge, by his judgment dated September 29, 1999, allowed the writ petitions and directed the present appellants to grant pension to the petitioner (respondents herein) in accordance with Rule 49(2)(b) of the CCS (Pension) Rules.

6. Against the order of the Single Judge, the present appellants preferred Writ Appeals. The Division Bench of the Kerala High Court upheld the decision of the Single Judge and dismissed the Writ Appeals vide judgment dated August 25, 2000. While doing so, the Division Bench referred to the decision of the Himachal Pradesh High Court in Ex-Naik Rakesh Kumar Vs. Union of India & Others – C.W.P. No. 761 of 1998. It is from this order of the Division Bench that the present Appeals, by special leave, have arisen.

7. The judgment of the Himachal High Court in Ex-Naik Rakesh Kumar Vs. Union of India & Others was challenged by the Union of India before this Court in the case of Union of India and Others Vs. Rakesh Kumar, (2001) 4 SCC 309. The question involved therein was – Whether members of BSF who have resigned their posts after serving for 10 years or more years but less than 20 years are entitled to pension/pensionary benefits under relevant provisions of the Border Security Force Act, 1968 (for short, ‘BSF Act’) and the BSF Rules or the CCS (Pension) Rules.

8. This Court referred to Section 8 of the BSF Act and Rule 19 of the BSF Rules and the provisions of the CCS (Pension) Rules, particularly Rules 35, 36, 48, 48-A and 49. G.O. dated December 27, 1995 issued by the Central Government was also referred to. After quoting G.O. dated December 27, 1995, this Court in para 20 of the report observed as follows :-

“20. The aforesaid GO makes it clear that there was a demand for grant of pensionary benefit on acceptance of the resignation under Rule 19 and that demand was accepted by the Government. Para 2 of the GO makes it clear that the Government has agreed that a member of BSF is entitled to get pensionary benefits on resignation under Rule 19 provided he has put in requisite number of years of service and fulfills all other eligibility conditions. This para only reiterates Rule 19. It also clarifies that authority competent to grant permission to resign is also empowered to make reduction in pension if the member of BSF is eligible to get such pension. Para 5 provides that in future the competent authority who accepts the resignation would specify in the order the reduction to be made in the pension if any and if no such reduction is specified in the order, it would imply that no reduction in the pension has been made. Under para 6, directions are issued for pending cases where resignation was accepted but pensionary benefits were not allowed and provide that necessary orders should be passed within shortest possible time. Reading the aforesaid GO as a whole, it nowhere reveals the Government’s intention to confer any additional pensionary benefits on the members of BSF who retired before completing the requisite qualifying service as provided under the CCS (Pension) Rules. It neither supplements nor substitutes the statutory rules. The GO read with Rule 19 of the BSF Rules would only mean that in case of resignation and its acceptance by the competent authorities, the member of BSF would be entitled to get pensionary benefits if he is otherwise eligible for getting the same under the CCS (Pension) Rules and to that extent Rule 26 which provides for forfeiture of service on resignation would not be applicable. Hence, there is no substance in the contention of the learned counsel for the respondents that in view of the GO or specific orders passed by the competent authority granting pension, the appellants are estopped from contending that such officers are not entitled to get pensionary benefits. As stated above, the GO does not confer any additional benefit. Even in the specific order which is quoted above in favour of Naik Rakesh Kumar, the authority has stated that he would get pensionary benefits as admissible under the Rules. Under the Rules, he is not entitled to get such benefits.”

9. While dealing with the arguments of the ex BSF personnel that on the basis of the G.O. dated December 27, 1995, a number of persons are granted pensionary benefits even though they have not completed 20 years of service and, therefore, the Court should not interfere and see that the pensionary benefits granted to the respondents (therein) are not disturbed and are released as early as possible, this Court observed that for grant of pension to the members of BSF, the provisions of the CCS (Pension) Rules are applicable and the CCS (Pension) Rules nowhere provide that a person who has resigned before completing 20 years of service as provided in Rule 48-A is entitled to the pensionary benefits. It was expressly held that Rule 19 of the BSF Rules did not make any provision for grant of pensionary benefits. In para 22 of the report, this Court concluded:-

“22. In the result, there is no substance in the contention of the learned counsel for the respondents that on the basis of Rule 49 of the CCS (Pension) Rules or on the basis of the GO, the respondents who have retired after completing qualifying service of 10 years but before completing qualifying service of 20 years by voluntary retirement, are entitled to get pensionary benefits. The respondents, who were permitted to resign from service under Rule 19 of the BSF Rules before the attainment of the age of retirement or before putting such number of years of service as may be necessary under the Rules, to be eligible for retirement are not entitled to get any pension under any of the provisions under the CCS (Pension) Rules. Rule 49 only prescribes the procedure for calculation and quantification of pension amount. The GO dated 27-12-1995 does not confer any additional right of pension on the BSF employees.”

10. In a later decision in the case of Raj Kumar & Others Vs. Union of India and Another, (2006) 1 SCC 737, this Court was again concerned with the similar question. This Court referred to the earlier decision of this Court in Union of India & Others Vs. Rakesh Kumar (supra) and reiterated the position that was declared in Union of India & Others Vs. Rakesh Kumar (supra), namely, that Rule 19 of the BSF Rules did not grant any right to pension in cases where pension was not payable under the CCS (Pension) Rules. In para 17 of the report, the Court catalogued the cases before it as follows :

“17. ….

(A) Pre-circular. Personnel who resigned and were granted pension for special reasons, even prior to the circular dated 27-12-1995.

(B) Post-circular. Personnel who resigned pursuant to the circular dated 27-12-1995. These persons can be further divided into two sub-categories.

(i) Personnel who retired in 1996, were sanctioned pension and were therefore asked vide letter dated 31-10- 1998 not to report for reinduction. Their pension has been stopped pursuant to the judgment in Rakesh Kumar (supra). These persons can be further divided into two sub- categories:

(a) those who are in a position to be reinducted into service even now; and

(b) those who cannot be reinducted into the service as a result of being age-barred or due to being medically or physically unfit.

(ii) Those who retired subsequent to 1996, were not sanctioned pension, and were directed to report for reinduction into service or to forfeit pension benefits by virtue of the circular dated 17-10-1998 and the individual letters.”

11. Having regard to the peculiar facts arising in each of the above groups, this Court made the following orders :

“1. The personnel falling in category (B)(ii) i.e. those persons who had retired subsequent to 1996 pursuant to the circular dated 27-10-1995 and had not been sanctioned pension, but who have been directed to report for reinduction in service shall necessarily have to forfeit their pension, if they have not reported for service by virtue of the circular dated 17-10-1998. If, however, they have reported for service then there is no question of any relief in their case.

2. In the case of persons falling in category (B)(i), they shall also be given the option of reinduction into service, and those falling in category (B)(i)(a) shall be so reinducted, subject to the conditions stipulated in the circular dated 17-10-1998 and on condition that they shall refund GPF and pension amounts drawn by them till reinduction. The authorities shall indicate the deadline by which such persons shall offer themselves for reinduction.

3. In the case of persons who shall fall in category B(i)(b) i.e. persons who had retired in 1996, were sanctioned pension but who cannot be reinducted today as they are age-barred or physically or medically unfit or for any other reason including their inability to return the amount of GPF, pension drawn or other dues, there shall be no question of continuing payment of pension which shall be liable to cease as a result of the decision in Rakesh Kumar (supra). We are however of the view that equity demands that in such cases there shall be no recovery of the pension amounts already paid to them.

4. In cases which fall under category (A) i.e. personnel who had resigned prior to the circular dated 27-12-1995 and had been granted pension for special reasons and continued to draw it till the stoppage of pension as a result of the judgment in Rakesh Kumar (supra) we think that irrespective of the position in law, equity demands that, as they have drawn their pension for long periods, they shall not be asked to refund their drawn pension amounts, nor shall their pension be stopped now.”

12. In view of the decisions of this Court in Union of India & Others Vs. Rakesh Kumar (supra) and Raj Kumar & Others Vs. Union of India and Another (supra), the legal position that emerges is this : Rule 19 of the BSF Rules does not entitle any pensionary benefits on resignation of its personnel. The pensionary benefits are not ordinarily available on resignation under CCS (Pension) Rules since Rule 26 provides for forfeiture of service on resignation. However, by virtue of G.O. dated December 27, 1995 read with Rule 19 of BSF Rules, the member of BSF would be entitled to get pensionary benefits if he is otherwise eligible. Such personnel must, therefore, satisfy his eligibility under CCS (Pension) Rules. The CCS (Pension) Rules do not provide that a person who has resigned before completing 20 years of service is entitled to the pensionary benefits. Rule 49 only prescribes the procedure for calculation and quantification of pension amount and not the minimum qualifying service.

13. The view taken by the Single Judge and judgment of the Division Bench upholding the view taken by the Single Judge cannot be upheld and have to be set aside in light of the legal position noted above.

14. In the present case, the respondents had resigned from BSF service immediately after completion of 10 years service and, therefore, they are not entitled to any pensionary benefits.

15. We, accordingly, allow these Appeals and set aside the orders dated August 25, 2000 passed by the Division Bench and dated September 29, 1999 passed by the Single Judge. We, however, observe that amount of pension paid to the respondents herein, if any, shall not be recovered.

16. No costs.

Amendments in Ex-servicemen (Re-employment in Central Civil Services and Posts) Rules, 2012.

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub section (i)]
Government of India
Ministry of Personnel, Public Grievances and Pensions
******

NOTIFICATION

New Delhi, dated the 4th October, 2012

G.S.R. – In exercise of the powers conferred by the proviso to article 309 of the Constitution, the President hereby makes the following rules further to amend the Ex-servicemen (Re-employment in Central Civil Services and Posts) Rules, 1979, namely:-

1. (1) These rules may be called the Ex-servicemen (Re-employment in Central Civil Services and Posts) Amendment Rules, 2012.

(2) They shall come into force from the date of their publication in the Official Gazette.

2. In the Ex-servicemen (Re-employment in Central Civil Services and Posts) Rules, 1979

(I) in rule 2, for clause (c), the following clause shall be substituted, namely:-

(c) An ‘ex-serviceman’ means a person –

(i) who ‘has served in any rank whether as a combatant or non- combatant in the Regular Army, Navy and Air Force of the Indian Union, and

(a) who either has been retired or relieved or discharged from such service whether at his own request or being relieved by the employer after earning his or her pension; or

(b) who has been relieved from such service on medical grounds attributable to military service or circumstances beyond his control and awarded medical or other disability
pension; or

(c) who has been released from such service as a result of reduction in establishment;

or

(ii) who has been released from such service after completing the specific period of engagement, otherwise than at his own request, or by way of dismissal, or discharge on account of misconduct or inefficiency and has been given a gratuity; and includes personnel of the Territorial Army, namely, pension holders for continuous embodied service or broken spells of qualifying service;

or

(iii) personnel of the Army Postal Service who are part of Regular Army and retired from the Army Postal Service without reversion to their parent service with pension, or are released from the Army Postal service on medical grounds attributable to or aggravated by military service or circumstance beyond their control and awarded medical or other disability pension;

Or

(iv) Personnel, who were on deputation in Army Postal Service for more than six months prior to the 14th April, 1987;

or

(v) Gallantry award winners of the Armed forces including personnel of Territorial Army;

or

(vi) Ex-recruits boarded out or relieved on medical ground and granted medical disability pension.

(2) for rule 3, the following rule shall be substituted, namely:-

“3. Application – These rules shall apply to all the Central Civil Services and Posts and the posts upto the level of Assistant Commandant in all paramilitary forces.”
(3) in rule 4,-

(a) for sub-rule(I), the following sub-rule shall be substituted, namely:- “

(i) Reservation of vacancies: — Ten per cent of the vacancies in the posts upto of the level of the Assistant Commandant in all para-military forces, ten per cent of the vacancies in Group ‘C’ posts; and twenty per cent of the vacancies in Group ‘D’ posts, including permanent vacancies filled initially on a temporary basis and temporary vacancies which are likely to be made permanent or are likely to continue for three months and more, to be filled by direct recruitment in any year shall be reserved for being filled by ex-servicemen.”

(b) for sub-rule(2), the following sub-rule shall be substituted, namely:- “

(2) The Scheduled Castes, the Scheduled Tribes and the Other Backward Class candidates selected against the vacancies reserved for ex-servicemen shall be adjusted against vacancies reserved for Scheduled Castes, Scheduled Tribes and Other Backward Classes, respectively:

Provided that if a the Scheduled Caste or the Scheduled Tribe or the Other Backward Class ex-servicemen is selected against the vacancy reserved for ex-servicemen and vacancy reserved for the Scheduled Castes or the Scheduled Tribes or the Other Backward Classes, as the case may be, is not available to adjust such ex-serviceman, he shall be adjusted in future against the next available vacancy reserved for the Scheduled Castes or the Scheduled Tribes or the Other Backward Classes, as the case may be.”

(c) after sub-rule (3), the following proviso shall be substituted, namely:-

“Provided that in case of recruitment to the vacancy reserved for Ex-servicemen in the Central Para Military Forces, the reserved vacancy remained unfilled due to non-availability of eligible or qualified candidates, the same shall be filled by candidates from
non-ex-servicemen category”.

(4) for rule 5, the following rule shall be substituted, namely:-

“(5) (a) For appointment to vacancies in Group B(Non-Gazetted), Group C or Group D posts in Central Government, an ex-serviceman shall be allowed to deduct the period of actual military service from his actual age and if the resultant age does not exceed the maximum age fimit prescribed for the post for which he is seeking appointment by more than three
years, he shall be deemed to satisfy the condition regarding age limit.

(b) For appointment to any vacancy in Group A and Group B services -or posts filled by direct recruitment otherwise than on the results of an Open All India Competitive Examination, the upper age limit shall be relaxed by the length of military service increased by three years in the case of ex-servicemen and commissioned officers including
Emergency Commissioned Officers or Short Service Commissioned Officers.

(c) For appointment to any vacancy in Group A and Group B services or posts filled by direct recruitment on the results of an All India Competitive Examination, the ex-servicemen and Commissioned Officers including Emergency commissioned Officers or Short Service Commissioned Officers who have rendered atleast five years military services and have been released -,

(i ) on completion of assignment (including those whose assignment is due to be completed within one year) otherwise than by way of dismissal or discharge on account of misconduct or inefficiency; or

(ii) on account of physical disability attributable to military service or on invalidment, shall be allowed maximum relaxation of five years in the upper age limit.

[File No.36034/(IAM-Estt(SCT)]

(Manoj Joshi)
Joint Secretary to the Government of India

Original Copy :
http://ccis.nic.in/WriteReadData/CircularPortal/D2/D02adm/36034_1_2006-Estt.Res-04102012.pdf

GO – Tamilnadu Government Dearness Allowance from July 2012

Government of Tamilnadu

FINANCE (ALLOWANCES) DEPARTMENT
G.O.No.362, Dated 5th October 2012
(Purattasi-19, Thiruvalluvar Aandu 2043)

ALLOWANCES – Dearness Allowance – Enhanced Rate of Dearness Allowance from 1st July 2012 – Orders – Issued.

READ – the following papers:

1.    G.O.Ms.No.116, Finance (Allowances) Department, dated 9th April 2012.
2.    From the Government of India, Ministry of Finance, Department of Expenditure, New Delhi, Office Memorandum No.1,(8)/2012 – E II(B) dated 28.09.2012.

ORDER:

In the Government Order first read above, orders were issued sanctioning revised rate of Dearness Allowance to State Government employees as detailed below:-

Date from which payable Rate of Dearness Allowance(per month)
1st Jan 2012 65 per cent of Pay plus Grade Pay

2.    The Government of India in its Office Memorandum second read above has now enhanced the Dearness Allowance to its employees from 65% to 72% with effect from 1st July, 2012. 

3.    Following the orders issued by the Government of India, the Government sanction the revised rate of Dearness Allowance to the State Government employees as indicated below:-
Date from which

Date from which payable Rate of Dearness Allowance (per month)
1st July, 2012 72 per cent of Pay plus Grade Pay

 

4.    The Government also direct that the above increase in Dearness Allowance shall be paid in cash with effect from 01.07.2012.

5.    The arrears of Dearness Allowance for the months of July, August and September 2012 shall be disbursed in cash immediately. While working out the revised Dearness Allowance, fraction of a rupee shall be rounded off to next higher rupee if such fraction is 50 paise and above and shall be ignored if it is less than 50 paise.

6.    The Government also direct that the revised Dearness Allowance sanctioned above, shall be admissible to full time employees who are at present getting Dearness Allowance and paid from contingencies at fixed monthly rates. The revised rates of Dearness Allowance sanctioned in this order shall not be admissible to part time employees.

7.    The revised Dearness Allowance sanctioned in this order shall also apply to the teaching and non-teaching staff working in aided educational institutions, employees under local bodies, employees governed by the University Grants Commission /All India Council for Technical Education scales of pay, the Teachers / Physical Directors / Librarians in Government and Aided Polytechnics and Special Diploma Institutions, Village Assistants in Revenue Department, Noon Meal Organisers, Child Welfare Organisers, Anganwadi Workers, Cooks, Helpers, Panchayat Assistants /Clerks in Village Panchayat under Rural Development and Panchayat Raj Department and sanitary workers drawing special time scale of pay. 

8.    The expenditure shall be debited to the detailed head of account 03. Dearness Allowance’ under the relevant minor, sub-major and major heads of account.

9.    The Treasury Officers / Pay and Accounts Officers shall make payment of the revised Dearness Allowance when bills are presented without waiting for the authorization from the Principal Accountant General (A&E), Tamil Nadu, Chennai-18.

(BY ORDER OF THE GOVERNOR)

K. SHANMUGAM
PRINCIPAL SECRETARY TO GOVERNMENT

Original Order :
http://www.tn.gov.in/gosdb/gorders/finance/fin_e_362_2012.pdf

Grant of Non-Productivity Linked Bonus (ad-hoc bonus) to Central Government Employees for the year 2011-12

No.7/24/2007/E III (A)
Government of India
Ministry of Finance
Department of Expenditure
E III (A) Branch

New Delhi, the 5th October. 2012.

OFFICE MEMORANDUM

Subject: – Grant of Non-Productivity Linked Bonus (ad-hoc bonus) to Central Government Employees for the year 2011-12.

The undersigned is directed to convey the sanction of the President to the grant of Non-Productivity Linked Bonus (Ad-hoc Bonus) equivalent to 30 days emoluments for the accounting year 2011-12 to the Central Government employees in Groups ‘C’ and ‘D’ and all non-gazetted employees in Group ‘B’, who are not covered by any Productivity Linked Bonus Scheme. The calculation ceiling for payment of ad-hoc Bonus under these orders shall continue to be monthly emoluments of Rs. 3500/-, as hitherto. The payment of ad-hoc Bonus under these orders will also be admissible to the eligible employees of Central Para Militrary Forces and Armed Forces. The orders will be deemed to be extended to the employees of Union Territory Administration which follow the Central Government pattern of emoluments and are not covered by any other bonus or ex-gratia scheme.

2. The benefit will be admissible subject to the following terms and conditions:-

(1) Only those employees who were in service as on 31.3.2012 and have rendered at least six months of continuous service during the year 2011-12 will be eligible for payment under these orders. Pro-rata payment will be admissible to the eligible employees for period of continuous service during the year from six months to a full year, the eligibility period being taken in terms of number of months of service (rounded off to the nearest number of months).

(ii) The quantum of Non-PLB (ad-hoc bonus) will be worked out on the basis of average emoluments/calculation ceiling whichever is lower. To calculate Non-PLB (Ad-hoc bonus) for one day, the average emoluments in a year will be divided by 30.4 (average number of days in a month). This will thereafter be multiplied by the number of days of bonus granted. To illustrate, taking the calculation ceiling of monthly emoluments of Rs. 3500 (where actual average emoluments exceed Rs. 3500), Non-PLB (Ad-hoc Bonus) for thirty days would work out to Rs. 3500×30/30.4=Rs.3453.95 (rounded off to Rs. 3454/-)

(iii) The casual labour who have worked in offices following a 6 days week for at least 240 days for each year for 3 years or more(206 days in each year for 3 years or more in the case of offices observing 5 days week), will be eligible for this Non-PLB (Ad-hoc Bonus) Payment. The amount of Non-PLB (ad-hoc bonus) payable will be (Rs.1200×30/30.4 i.e.Rs.1184.21 (rounded off to Rs.1184/-). In cases where the actual emoluments fall below Rs.1200/- p.m., the amount will be calculated on actual monthly emoluments.

(iv) All payments under these orders will be rounded off to the nearest rupee.

(v) The clarificatory orders issued vide this Ministry’s OM No.F.14 (10)—E. Coord/88 dated 4.10.1988, as amended from time to time, would hold good.

3. The expenditure on this account will be debitable to the respective Heads to which the pay and allowances of these employees are debited.

4. The expenditure incurred on account of Non-PLB (Ad-hoc Bonus) is to be met from within the sanctioned budget provision of concerned Ministries/Departments for the current year.

5. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders are issued in consultation with the Comptroller and Auditor General of India.

(Amar Nath Singh)

Deputy Secretary

 

Original order

http://www.finmin.nic.in/the_ministry/dept_expenditure/notification/bonus/bonus2012.pdf

Dearness Relief to Central Government pensioners/family pensioners – Revised rate effective from 1.7.2012.

F. No. 42/13/2012-P&PW(G)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners’ Welfare

3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi – 110003
Date:    4th October, 2012

OFFICE MEMORANDUM

Subject : Grant of Dearness Relief to Central Government pensioners/family pensioners — Revised rate effective from 1.7.2012.

The undersigned is directed to refer to this Department’s OM No. 42/13/2012-P&PW(G) dated 4th April, 2012 on the subject mentioned above and to state that the President is pleased to decide that the Dearness Relief (DR) payable to Central Government pensioners/family pensioners shall be enhanced from the existing rate of 65% to 72% w.e.f. lst July, 2012.

2. These orders apply to (i) All Civilian Central Government Pensioners/Family Pensioners (ii) The Armed Forces Pensioners, Civilian Pensioners paid out of the Defence Service Estimates, (iii) All India Service Pensioners (iv) Railway Pensioners and (v) The Burma Civilian pensioners/family pensioners and pensioners/families of displaced Government pensioners from Pakistan, who are Indian Nationals but receiving pension on behalf of Government of Pakistan and are in receipt of ad-hoc ex-gratia allowance of Rs. 3500/- p.m. in terms of this Department’s OM No. 23/1/97-P&PW(B) dated 23.2.1998 read with this Department’s OM No. 23/3/2008-P&PW(B) dated 15.9.2008.

3.    Central Government Employees who had drawn lumpsum amount On absorption in a PSU/Autonomous body and have become eligible to restoration of 1/3rd commuted portion of pension as well as revision of the restored amount in terms of this Department’s OM No. 4/59/97-P&PW (D) dated 14.07.1998 will also be entitled to the payment of DR @ 72% w.e.f. 1.7.2012 on full pension i.e. the revised pension which the absorbed employee would have received on the date of restoration had he not drawn lumpsum payment on absorption and Dearness Pension subject to fulfillment of the conditions laid down in para 5 of the O.M. dated 14.07.98. In this connection, instructions contained in this Department’s OM No.4/29/99-P&PW (D) dated. 12.7.2000 refer.

4.  Payment of DR involving a fraction of a rupee shall be rounded off to the next higher rupee.

5. Other provisions governing grant of DR in respect of employed family pensioners and re-employed Central Government Pensioners will be regulated in accordance with the provisions contained in this Department’s OM No. 45/73/97-P&PW (G) dated 2.7.1999 as amended vide this Department’s OM No. F. No. 38/88/2008-P&PW(G) dated 9th July, 2009. The provisions relating to regulation of DR where a pensioner is in receipt of more than one pension, will remain unchanged.

6. In the case of retired Judges of the Supreme Court and High Courts, necessary orders will be issued by the Department of Justice separately.

7.  It will be the responsibility of the pension disbursing authorities, including the nationalized banks, etc. to calculate the quantum of DR payable in each individual case.

8.   The offices of Accountant General and Authorised Public Sector Banks are requested to arrange payment of relief to pensioners etc. on the basis of these instructions without waiting for any further instructions from the Comptroller and Auditor General of India and the Reserve Bank of India in view of letter No. 528-TA, II/34-80-II dated 23/04/1981 of the Comptroller and Auditor General of India addressed to all Accountant Generals and Reserve Bank of India Circular No. GANB No. 2958/GA-64 (ii) (CGL)/81 dated the 21st May, 1981 addressed to State Bank of India and its subsidiaries and all Nationalised Banks.

9.  In their application to the pensioners/family pensioners belonging to Indian Audit and Accounts Department, these orders issue after consultation with the C&AG.

10. This issues with the concurrence of Ministry of Finance, Department of Expenditure conveyed vide their OM    No.    1(4)/EV/2004 dated 4th October, 2012.

11. Hindi version will follow

(S.P.Kakkar)

Under Secretary to the Government of India

Original Order :
http://ccis.nic.in/WriteReadData/CircularPortal/D3/D03ppw/DR_July12.pdf

7% Dearness allowance hikes to Tamilnadu Government Employees from July 2012

Tamilnadu Government Chief Minister J.Jayalalithaa announced to increase of 7 per cent Dearness Allowance to TN State Government employees & Teachers with effect from 1.7.2012, similar to the recent Central Government Announcement. Also Chief Minister extended the benefit to pensioners & family pensioners.

This hike will be paid in cash with effect from July 1, 2012.

The additional expenditure would be Rs 1,443.50 crore annually on the exchequer, she said.

The move will benefit 18 lakh State Government Employees, Teachers, Pensioners & Family Pensioners

This DA hike will encourage the government staff to more effectively involve themselves in public service, she added

Source :

http://dearnessallowance.blogspot.in/2012/10/7-dearness-allowance-declared-to.html

List of Classified Cities for HRA – FR & SR Part IV

List of Classified Cities for HRA

FR & SR – Part IV

 

 HOUSE RENT ALLOWANCE:

Based on the recommendations of the Sixth Central Pay Commission, the earlier classification of cities has been revised viz. A-1 to “X”, A, B-1 & B-2 to “Y” and C & Unclassified to “Z”. In determining the revised classification the revised classification, the population of Urban Agglomeration area of the city has been taken into consideration.

 

 

Classification of Cities/Towns

Rates of House Rent Allowance As a percentage of (Basic pay +
NPA where applicable)

X

30%

Y

20%

Z

10%

List of Cities/Towns where House Rent Allowance is Admissible to Central Government Employees

 

S.No

STATES

CITIES CLASSIFIED AS “X”

CITIES CLASSIFIED AS “Y”

1

Andhra Pradesh

Hyderabad
(UA)

Vijawada(UA), Warangal(UA), Visakhapatnam(UA),
Guntur

2

Assam

Guwahati(UA)

3

Bihar

Patna(UA)

4

Chandigarh

Chandigarh

5

Chhattisgarh

Durg-Bhilai Nagar(UA),  Raipur(UA)

6

Delhi

Delhi(UA)

7

Gujarat

Ahmedabad(UA), Rajkot(UA), Jamnagar(UA),
Bhavnagar(UA), Vadodara(UA), Sutat(UA)

8

Haryana

Faridabad*

9

Jammu &
Kashmir

Srinagar(UA), Jammu(UA)

10

Jharkhand

Jamshedpur(UA),  Dhanbad(UA),  Ranchi(UA)

11

Karnataka

Bengaluru
(UA)

Belgaum(UA), Hubli-Dharwad, Mangalore(UA),
Mysore(UA)

12

Kerala

Khozhikode(UA), Kochi(UA), Thiruvanthapuram(UA)

13

Madhya
Pradesh

Gwalior(UA), Indore(UA), Bhopal(UA),
Jabalpur(UA)

14

Maharashtra

Greater
Mumbai(UA)

Amravati, Nagpur(UA), Aurangabad(UA),
Nashik(UA), Bhiwandi(UA), Pune(UA), Solapur,
Kolhapur(UA)

15

Orissa

Cuttack(UA), Bhubaneswar(UA)

16

Punjab

Amritsar(UA), Jalandhar(UA),Ludhiana

17

Pondicherry

Pondicherry(UA)

18

Rajasthan

Bikaner, Jaipur, Jodhpur(UA), Kota(UA)

19

Tamil Nadu

Chennai (UA)

Salem(UA), Tiruppur (UA), Coimbatore(UA),
Tiruchirappalli (UA), Madurai(UA)

20

Uttarakhand

Dehradun(UA)

21

Uttar Pradesh

Moradabad, Meerut(UA), Ghaziabad*, Aligarh,
Agra(UA), Bareilly(UA), Lucknow(UA), Kanpur(UA),
Allahabad(UA), Gorakhpur, Varanasi(UA), Saharanpur**

22

West Bengal

Kolkata(UA)

Asansol (UA)

* Only for the purpose of extending HRA on the basis of dependency
** With effect from 1.6.2011

NOTE

The remaining cities/towns in various States/UTs which are not covered by classification as “X” or “Y” are classified as “Z” for the purpose of HRA.

Official amendments to the Pension Fund Regulatory and Development Authority Bill, 2011

The Union Cabinet today approved the introduction of certain official amendments to the Pension Fund Regulatory and Development Authority Bill, 2011. These official amendments have been necessitated in view of the recommendations of the Standing Committee on Finance which has examined the Bill. Based on the recommendations of the Standing Committee on Finance, the Government has decided to accept the following:

1. that the subscriber seeking minimum assured returns shall be allowed to opt for investing his funds in such schemes providing minimum assured returns as may be notified by the Authority;

2. withdrawals not exceeding 25 per cent of the contribution made by subscriber will be permitted from the individual pension account subject to the conditions, such as, purpose, frequency and limits, as may be specified by regulations by the Pension Fund Regulatory Authority and Development Authority (PFRDA)

3. the foreign investment ceiling in the pension sector at 26 per cent or such percentage as may be approved for the Insurance Sector, whichever is higher may be incorporated in the present legislation;

4. to establish a vibrant Pension Advisory Committee with representation from all major stakeholders to advise PFRDA on important matters of framing of regulations under the PFRDA Act.

5. the membership of the PFRDA will be confined to professionals having expertise in economics, finance or law only.

The New Pension Scheme (NPS) has been made mandatory for all the Central Government employees (except Armed Forces) entering service with effect from 1.1.2004. 27 State / UT Governments have notified NPS for their employees. NPS has been launched for all citizens of the country including unorgnised sector workers, on voluntary basis, with effect from 1st May, 2009. Further, to encourage people from the unorganised sector to voluntarily save for their retirement, Government has launched the co-contributory pension scheme titled “Swavalamban Scheme” in the Budget of 2010-11. As on 7th September, 2012 the number of subscribers under NPS is 37.45 lakh with a corpus of Rs. 20535.00 crore.

In order to effectively invest and manage such huge funds belonging to a large number of subscribers and to ensure the integrity of the NPS, creation of a statutory PFRDA with well defined powers, duties and responsibilities is considered absolutely necessary and would benefit all NPS subscribers.

The official amendments to the Bill will be moved in the next session of the Parliament.

Background:

The following recommendations of the SCF have not been accepted:

• As regards the recommendation of SCF for compulsory insurance of the funds of subscribers by pension fund managers, a provision has already been made in the PFRDA Bill, to protect the interest of the subscribers by ensuring safety of contribution of subscribers and also by keeping the operational costs in check,

• As regards the selection of pension fund managers in such a manner that one third of all such fund managers are from the public sector, since a provision has already been made in the PFRDA Bill that at least one of the pensions fund shall be from the public sector which sets a floor, the ceiling can be any number based on objective criteria.

The Pension Fund Regulatory and Development Authority Bill, 2005 was initially introduced in the Lok Sabha in March, 2005 to provide for a statutory PFRDA. However, since the Bill and the official amendments, based on the recommendations of the Standing Committee on Finance, could not be considered by the Lok Sabha, and the Bill lapsed on dissolution of the 14th Lok Sabha. The Government had announced in the Budget 2011-12 that the revised PFRDA Bill would be moved in Parliament. Accordingly, the PFRDA Bill, 2011 was introduced in the Lok Sabha on the 24th March, 2011 to provide for a statutory regulatory body, the Pension Fund Regulatory and Development Authority (PFRDA) under the provisions of the Bill. The legislation sought to empower FRDA to regulate the New Pension System (NPS). The PFRDA Bill, 2011 was referred to the Standing Committee on Finance on the 29th March, 2011 for examination and report thereon. The Standing Committee on Finance gave its Report on 30th August, 2011. Based on the recommendations of Standing Committee, a Cabinet Note, to introduce additional recommendations of the Standing committee on Finance was moved on 19th December, 2011. Since the PFRDA Bill, 2011 was deferred in the Winter Session of the Lok Sabha, therefore the Cabinet Note was withdrawn.

Source : PIB

Amendments in Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959

The Union Cabinet today approved the introduction of Employment Exchanges (Compulsory Notification of Vacancies) Amendment Bill, 2012 in Parliament.

The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 was enacted in the year 1959 and with the passage of time some of its provisions have become obsolete and require modifications. With this in mind, the Act is being amended.

Employment Exchanges will be renamed as “Employment Guidance and Promotion Centres” as the focus is now on vocational guidance and career counseling besides registration, submission and placement etc. Establishments in the private sector employing between 10-24 persons are being brought under the purview of the Act for the purpose of submission of returns. This is likely to result in a more realistic estimate of employment in the organised sector. The employer is being mandated to furnish information relating to the result of selection against the vacancies notified within thirty days from the date of selection, to make the registration data more rational. The definitions of employee and employer are being broad based to include contract labour that has worked for more than 240 days in a year.

Source : PIB

Risk Allowance, Hospital Patent Care Allowance and Patient Care Allowance doubled

The Cabinet today approved revision of rates of Risk Allowance. Hospital Patient Care Allowance and Patient Care Allowance payable to about two lakh entitled Central Government employees to double the existing rates with effect from 1st September, 2008.

The proposed revision in the rates of the Risk Allowance, Hospital Patent Care Allowance and Patient Care Allowance will provide succor to the employees at risk due to the nature of their duties. It will also result in considerable financial savings as compared to the Risk Insurance Schemes/Packages.

The financial implication of doubling the extant rate of Risk Allowance, Hospital Patient Care Allowance and Patient Care Allowance would be Rs.42.16 crore per annum, as against Rs.503.26 crore plus service tax (approximately) {Rs.40.50 crore plus service tax per annum for insurance policy and Rs.462.76 crore plus service tax for purchase of annuity} for implementing the Risk Insurance package.

The amount of Risk Allowance, Hospital Patient Care Allowance and Patient Care Allowance would be automatically raised by 25 per cent every time the Dearness Allowance on the revised pay structure goes up by 50 per cent. The proposed revision in the rates of Risk Allowance, Hospital Patient Care Allowance and Patient Care Allowance will benefit certain categories of Central Government employees engaged in duties involving special risks.

Source : PIB

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