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Thursday, October 29, 2015

Some More Light on 20 Years of Qualifying Service for Full Pension and Addition to Qualifying Service ---GOI


Sixth CPC had recommended full pension to the Government servant who has rendered minimum qualifying service (q.s.) of 20 years 

GOI implemented the CPC recommendations with some departure on lump sum payment in terms paragraphs 5.2 to 5.4 of their O.M. F. No. 38/37/08-P&PW(A) dated the 2nd September, 2008.

In brief :


Para. 5.2 : Linkage of 33 years of q.s. for full pension dispensed with. A govt.servant who has rendered 20 years q.s., shall be paid at 50% of the emoluments ( last basic pay + grade pay eligible for pension) or average emoluments received during last ten months whichever is more beneficial to the employee.

Para.5.3 : If a govt. servant retires on completion of 10 years q.s. in accordance with CCS (Pension) Rules, 1972, shall be paid at 50% of the emoluments ( last pay+ grade pay) or average emoluments, whichever is more beneficial to the employee.

Para 5.4 : The revised provisions as stated in Para. 5.2 and 5.3 above, will come into force from 02-09-2008, from the date of issue of O.M., under reference. Those retired between 01-01-2006 and 01-09-2008 will continue to be governed by the Rules / orders which were in force till issue of these orders.

There were large number of representations against the decision to make 20 years q.s. for full pension from a prospective date. GOI was generous to modify the instructions/order in terms of letter - same number- dated 10th December, 2009. Accordingly, the instructions contained in Para.5.2 and 5.3 came into force effective from 01-01-2006.

Additions to Qualifying Service : in view of the revised provisions for computation of pension--20 or 10 years of q.s.-- as stated in Para.5.2 and 5.3 above, the extant benefit of adding years ( 5 maximum subject to other conditions ) stood withdrawn w.e.f. 01-01-2006.

 _____Position regarding Pre 2006 Pensioners_____


As could be seen from the foregoing GOI orders, the benefit of full pension (50% of basic etc.) with 20 years service has not been extended to Pre 2006 Pensioners. They are governed by old rules, minimum 33 years of service for full pension, pro rata pension, etc. Some of the aggrieved pensioners filed cases in Delhi High Court, the CAT ( Central Administration Tribunal ), the Supreme Court.
> Delhi Court has said that the cutoff date is arbitrary and fouls Article 14 of the Constitution of India. All Pre- 2006 pensioners who had completed - more than- 20 years of q.s. should also get full pension ( instead of pro rata ) as in the case of Post 2006 pensioners. The Apex Court has also held the same view in an another case filed before it.

CAT is also in favour of Pre 2006 Pensioners. The operating part of CAT judgement dated 15-04-2015 is as under :

In view of the judgments of the Honble Supreme Court in D.S. Nakara (supra), V. Kasturi (supra), T.S. Thiruvengadam (supra) and order of the Full Bench of the Tribunal in OA 937/2010 with OA 2101/2010 dated 20.11.2014, we are of the opinion that the prayer in the OAs is fully justified. We, therefore, quash and set aside the impugned orders dated 3.10.2008 and 19.03.2010 being violative of law laid down by the Honble Supreme Court and direct the respondents that the qualifying service for earning full pension will be treated as twenty years also for those who retired from the Central Government service on or before 31.12.2005 and were alive on that day. The respondents are also directed to modify/amend all relevant government orders/ letters/ notifications in accordance with the above decision. It is made clear that this parity of pension between pre and post-1.01.2006 pensioners (on the question of eligibility of minimum pensionable service of twenty years) would apply both as regards pension and family pension. The respondents are granted three months time from the date of receipt of this order for implementation of directions contained in this order.

As the GOI has not yet acted on this issue of 20 years service for full - (they have issued notification on granting benefit to eligible pensioners w.e.f.01-01-2006 instead of 24-09-2012, as decided in the past)- the Pensioners have taken up the matter with the P.M.etc.

-------------We in LIC and those in Banks------------


LIC of India (Employees ) Pension Rules, 1995 and Banks Pension Regulations are primarily framed on the basis of GOI CCS ( Pension) Rules. it is high time that the serving employees and pensioners of the LIC and Banks take a leaf from the above and learn lessons from our counter parts in GOI . We must take concerted action to achieve whatever has been achieved by the brethren, the comrades in GOI, serving and retired.

SN ( a 1992 Pensioner )