As we all aware, the DOP&PW O.M. dated 1.9.2008 for pre-2006 pensioners and OM dated 2.9.2008 for post-2006 pensioners were issued on implementation of 6th CPC recommendations. We also aware, the modificatory/clarificatory OM F.No.38/37/08-P&PW(A) pt.1 against OM dated 1.9.2008 and OM F.No.38/37/08-P&PW(A) pt.2 against OM dated 2.9.2008 were issued subsequently.

Minimum Pension for Pre-2006 Pensioners(covered by OM dated 1.9.2008)

Para 4.2: The fixation of pension will be subject to the provision that the revised pension in no case, shall be lower than fifty percent of the sum of the minimum of the pay in the pay band and the grade pay thereon corresponding to the pre-revised pay scale from which the pensioner had retired.

The Modification/clarification for the above provision is issued vide OM F.No.38/37/08-P&PW(A) pt.1 dated 3.10.2008 which prescribed:

The pension caluclated at 50% of the minimum of pay in the pay band plus grade would be calculated (i) at minimum of the pay int he pay band (irrespective of the pre-revised scale of pay) plus the grade pay corresponding to the pre-revised pay scale.

For example, if a pensioner had retired in the pre-revised scale of pay of Rs.18400-22400, the corresponding pay band being Rs.37400-67000 and the corresponding grade pay being Rs.10,000/- p.m. his minimum guaranteed pension would be 50% of Rs.37400/- + Rs.10000 ie. Rs.23700.


For post-2006 pensioners: (covered under OM dt. 2.9.2008)

Para 5.2: Linkage of full pension with 33 years of qualifying service shall be dispensed with. Once a Govt. servant has rendered the minimum qualifying service of 20 years shall be paid at 50% of emoluments or average emoluments received during the last 10 months, whichever is more beneficial to him.

Para 5.3: In cases where Govt. employee becomes entitled to pension on completion of 10 years of qualifying service in accordance with Rule 49(2) of CCS Rules, 1972, pension in those cases shall also be paid at 50% of the emolument last drawn or average emoluments received during the last 10 months whichever is more beneficial to govt. employee.

As per the above two paras of OM dated 2.9.2008, it is clear that the 50% of emoluments or average emoluments during the last 10 months whichever is more beneficial to govt. employee.

The term `emoluments’ is defined vide para 4.2 of the above OM dt.2.9.2008: BASIC PAY IN THE REVISED PAY STRUCTURE MEANS THE PAY DRAWN IN THE PRESCRIBED PAY BAND PLUS THE APPLICABLE GRADE PAY.

Now, comes the turn of Modified/Clarificatory OM dated 3.10.2008 in respect of OM dated 2.9.2008 for post-2006 pensioners, which raises and clarifies/modifies as follows:

Point raised in regard to OM No.38/37/08-P&PW(A) dated 2.9.2008:

Para 5.2 to Para 5.4 : Whether the recommendation of the 6th CPC for payment of pension at 50% of the average emoluments received during the last 10 months or the pay last drawn, whichever is more beneficial to the retiring employee, will also take effect from the date of issue of the orders dated 2.9.2008?

(i) Yes. The Pay Commission has recommended in para 5.1.33 of its Report that linkage of full pension with 33 years of qualifying service should be dispensed with. Once an employee renders the minimum pensionable service of 20 years, pension should be paid at 50% of the average emoluments received during the past 10 months or the pay last drawn, whichever is more beneficial to the retiring employee………..

(ii) It is however, clarified that the pension of a post-1.1.2006 pensioner shall also not be lower than fifty percent of the sum of the minimum of the pay in the pay band and the grade pay from which the pensioner had retired. For example, if a pensioner has retired in the grade pay of Rs.10000/- p.m. in the pay band of Rs.37400-67000, his minimum guaranteed pension would be 50% of Rs.37400+Rs.10000 ie. 23700.
…….

As the OM dated 2.9.2008 was given prospective effect, in order to cover the pensioners retired from 1.1.2006 to 2.9.2008, another OM dated 11.12.2008 was issued as per which the provision for payment of pension at 50% of the emoluments (pay last drawn) or 50% of the average emoluments received during last 10 months shall be applicable to all retiring employees of the Govt. after 1.1.2006.

Thus, the revised pension for a post-2006 retiree will be based on 50% of BASIC PAY IN THE REVISED PAY STRUCTURE, ie. THE PAY DRAWN IN THE PRESCRIBED PAY BAND PLUS THE APPLICABLE GRADE PAY. If a person retired at the bottom of the corresponding pre-revised scale after 1.1.2006, his pension has been derived by the above factors as applicable to corresponding pre-revised scale..

At the same time, in respect of a pensioner retired prior to 1.1.2006 in whose case also, the basic pre-revised pension was derived by the same formula as above, ie. 50% of average emoluments during the past 10 months drawn then at the time of retirement subject to a minimum of 50% of the bottom of the pre-revised scale, the revised pension has actually been calculated (i) at minimum of the pay in the pay band (irrespective of the pre-revised scale of pay) plus the grade pay corresponding to the pre-revised pay scale.

A Pay Revision makes its pre-revised basic pay into a revised pay. Same way, a pension Revision makes its pre-revised pension into a revised pension. Same holds good for the minimum revised pension, as introduced vide OM dated 17.12.1998 in respect of pre-1996 pensioners as per 5th CPC recommendations, ie. 50% of revised basic pay applicable to bottom of the pre-revised scale.

Thus a minimum revised pension for a pre-2006 pensioner vide para 4.2 of OM dated 1.9.2008 shall be derived by the same formula, viz. 50% of Revised pay consisting of pay applicable in the prescribed pay band corresponding to bottom of the pre-revised scale (and not irrespective of the pre-revised scale) plus the applicable grade pay.