Amendment to Pension Rules.

The Department of Pensions and Pensioners’ Welfare, New Delhi, has notified the various amendments to CCS (Pension) Rules, 1972.

The amendments to the rules provides for full pension for those who retired with not less than 10 years of service; bring changes to the quantum of minimum pension, method of calculation of “emoluments”, sanction of additional pension to pensioners crossing the age of 85 years onwards, admissibility of family pension to the family members of deceased pensioners in various categories including  childless widow after remarriage, unmarried/widowed/divorced daughter,  unmarried son, mentally disordered/disabled family members, etc.

For complete details of amendments, download Notification dated 08.06.2011.


Clarification on extension of scope of Family Pension to widowed / divorced / unmarried daughter and dependent disabled siblings of Central Government servants/Pensioners

The Department Pension and Pensioners Welfare, GOI have issued certain clarification on extension of family pension benefit to Widowed/ Divorced/ Unmarried daughters and disabled siblings of Central Government Servants/ Pensioners vide their OM No. 1/13/09 – P & PW (E) dated 28th April 2011.

CLICK HERE to download the above OM.

Grant of family pension to childless widow of a deceased Central Government employee after her remarriage

No. 1/4/2011-P&PW(E)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners’ Welfare
New Delhi, the 1st April, 2011

Subject: Grant of family pension to childless widow of a deceased Central Government employee after her remarriage – Clarification – reg.

A reference is invited to the Department of Pension & Pensioners’ Welfare’s O.M. No.38/37/08-P&PW(A) dt. 2.9.2008 whereby provisions regulating pension/family pension/gratuity/commutation of pension/disability pension/ex-gratia lumpsum compensation, etc. were revised consequent upon implementation of Government’s decision on the recommendations of 6th CPC.

2. As per the provisions of para 8.6 of the ibid O.M. the childless widow of a deceased Government employee shall continue to be paid family pension even after her remarriage subject to the condition that the family pension shall cease once her independent income from all other sources becomes equal to or higher than the minimum prescribed for family pension in the Central Government.

3. References/Representations have been received in this Department from various quarters raising therin doubts that the provisions of this Department’s O.M. dt. 2.9.2008 do not adequately take care of cases wherein death of the employee took place prior to 1.1.2006.

4. The issue has been examined in this Department in consultation with Department of Expenditure. It is hereby clarified that the childless widow of a deceased Central Government employee who had expired before 1.1.2006, shall be eligible for family pension in the light of 6th CPC’s recommendations irrespective of the fact that the remarriage of the widow had taken place prior to/on or after 1.1.2006. The financial benefits in such cases, however, will accrue from 1.1.2006. This, however, would be subject to the fulfillment of certain conditions laid down therein, including the income criterion that the income of the widow from all sources does not become equal to or higher than the minimum prescribed for family pension in the Central Government.

5. This issues with the concurrence of Department of Expenditure, Ministry of Finance vide their U.O.No.64/EV/2011 dt. 11.3.2011.

6. This order, in so far as their applicability relates to the employees of Indian Audit & Accounts Department, is being issued in consultation with the Comptroller and Auditor General of India vide their U.O. No.50 – Audit (Rules/14-2010 dt. 31.3.2011)

7. Hindi version will follow.


A well drafted representation for inclusion of V CPC S-21, S-22 & S-23 JAG regular Scales Under PB-4 of VI CPC

To                                                                                                          19. Jan 2011

Dr. Manmohan Singh,

Honourable Prime Minister of India,

Room No.148 B, South Block, Raisina Hill,

New Delhi – 110001

Shri Pranab Mukherjee,

Honourable Finance Minister,

Room No.134, North Block, Raisina Hill,

New Delhi – 110001

Sub : Inclusion  of V CPC S-21, S-22 & S-23 JAG Regular Scales

Under PB-4 of VI CPC – Request For


1.         I retired as Director (Geophysics) from Geological Survey of India, Central Region on 31-5-1988 on superannuation (58 yrs) in the scale 3700 -5000 (IV CPC ) after putting in 31 ½ years of Service.  My pro-rata pension was fixed as Rs.1989/- pm w.e.from 1-6-1988.

2.         Again as per V CPC my pro-rata pension was fixed as Rs.5728/- pm as on 1-1-1996 in the scale 12000 – 16500 (S-21 of V CPC) which corresponds to the above 3700 – 5000 scale.

3.         My pension was revised as Rs.12947/- pm. in the scale PB-3 (15600 – 39100 + GP 7600) of VI CPC as on 1-1-2006.

4.         I very earnestly request that the Scales S-21 to S-23 also may be placed in PB-4 along with S-24, to remove the injustice done to these incumbents.  The justification is given in the succeeding paragraphs.

Justification – 1

5.         The V CPC Pay Scales S-21 (12000-165000), S-22 (12750 – 16500), S-23 (12000 – 18000) and S-24 (14300 – 18300) all come under the same JAG Category. There is no difference in the duties and responsibilities in the nature of their work. Originally, all these Scales and even up to S-27 were placed in PB-3 by the VI CPC.  But subsequently it was revised and PB-4 was brought down to S-24 from S-27.  Thus, a line has been drawn between S-23 & S-24 within the JAG level scales, putting S-24 in PB-4 and the others Viz., S-21 to S-23 were left in PB-3. This has resulted in a huge disparity causing a large anomaly in the pensions of the incumbents of S- 21, 22, 23 as compared to those of S-24.

6.         As per the V CPC Pay Scales, taking 50 % of the Minima of the Scales,   the pensions were Rs.6000 for S-21 & S-23, Rs.6375 for S-22, and that of S -24 was Rs. 7150. But as per VI CPC,  the pension of the incumbents of  S-21, 22, & 23 is Rs.11600 and  that of  S-24 it is Rs. 23050 The pension of S-21 to S-23 pensioners has increased not even two times ( from Rs.6000 to Rs. 11600)  while that of the S-24 pensioner has increased  by more that 3 times (from  7150 to 23050). The new pension of the S-24 pensioner is twice that of the S-21 to 23 Pensioners. The difference which was only about Rs.1150 as per V CPC has become Rs.11450 (as per VI CPC) i.e. a ten fold increase.  Thus, injustice has been done to S-21 to S-23 Pensioners and a huge disparity has been created at this part of the Pay Band structure, which needs to be rectified.

Justification – 2

7.         In this context, portions reproduced below from the letters of Secretary General of AICCPA, Delhi to the National Anomaly Committee, JCM, are relevant –

“- – – .The GOI have solved the problem of stagnation by introducing a selection grade functional/nonfunctional or a % age of posts in a higher scale of pay or grant of stagnation increments or ensure assured financial enhancement at definite intervals in situ say 16 and 26 years of service  – – -“  ( Para -2, AICCPA letter No.6 CPC/PB/2k6-CCPA, dtd.16-3-2009 to National Anomaly Committee, JCM, New Delhi – 1, Pensioners Counsellor, April. 2009, page 159 ).

“ – – – But the greatest anomaly is the dividing line drawn between PB-3 & PB-4 relegating JAG regular to PB-3 band and nonfunctional JAG SG to PB-4. In GOI Pay structure JAG starts from 12000 (CPC V).  Ministries/Departments/Secretariat level offices have introduced minor variations to this standard JAG initial scale and this has resulted in S-21, S-22, S-23 with S-24 as the non functional JAG S Grade.  It will be seen the max of S-24 now in PB-4 is only 300/- more than S-23 max 18000. But as finalised by the Cabinet Review Committee and accepted by Govt. the grade pay for S-21, S-22 & S-23 is 7600 while for S-24 the grade pay is 8700. A difference of 300 in the maximum has resulted in a hike in Grade pay and a shift to the higher PB 4 band. In fact if the methodology followed by CPC VI is followed, the entire JAG together with SG should form a single block for purposes of Grade pay i.e.,  = 8700 instead of 7600 ., But the Govt. has allowed the anomaly to persist.”  (AICCPA letter No.14-1(3)/2k6-CCPA dtd.19-3-09 to Chairman, National Anomaly Committee, Deptt. of  Per & Trg, New Delhi, Pensioners Counselor, August, 2009, page 163, Para 4.1).

8.         The justifications presented by the AICCPA reproduced above may please be considered and the Pay Band structure at this level be revised by putting S-21 to S-23 also under PB-4.

Justification – 3

9.        If the pay scales corresponding to these S-21 to S-24 by the earlier CPCs are studied, the injustice done by VI CPC can be seen clearly as shown below :-

(a)       In Table – 1 below is presented the corresponding Pay Scales recommended by the earlier CPCs and the Pay Band + GP of VI CPC for S-21 to S-24.


III CPC Scale IV CPC Scale V CPC Scale VI CPC Scale
S-21 1500-1800 3700-5000 12000-16500 15600-39100 + GP 7600
S-22 1500-1800 3950- 5000 12750-16500 15600-39100 + GP 7600
S-23 1500-2000 3700-5700 12000-18000 15600-39100 + GP 7600
S-24 2000-2250 4500-5700 14300-18300 37400-67000 + GP 8700

(b) The ratios of the increase of the Minima of the above pay scales by the successive CPCs are shown below in Table – 2:

TABLE  –  2

CPC Ratios
V CPC Scales IV / III V / IV VI / V
S-21 3700/1500=2.467 12000/3700=3.243 23200/12000=1.933(lowest)
S-22 3950/1500=2.633 12750/3950=3.228 23200/12750=1.820(lowest)
S-23 3700/1500=2.467 12000/3700=3.243 23200/12000=1.933(lowest)
S-24 4500/2000=2.250 14300/4500=3.178 46100/14300=3.224

10.       It can be seen from the above that the  ratio of increase in the Minima of the scales of  the VI CPC to V CPC are significantly lower being 1.933 & 1.820 only for S-21, 22 & 23 incumbents as compared to the others. This is not at all comparable with other ratios. This means that while the pay raise was 2.25 to 3.446 times in all the earlier cases, the pay raise in the case of S-21 to S-23 after VI CPC was not even 2 pl.

see horizontally) but when we come to the ratio of VI to V, instead of improving over the previous ratio, it decreased drastically in the case of S-21, S-22 & S23 incumbents.  The great injustice done to S-21 to S-23 pensioners by the VI CPC is quite apparent & glaring.  Hence, a reconsideration for placing these JAG cadre scales also under PB-4 along with S-24 (JAGSG) is highly justified.

Justification – 4

11.       A brief analysis of the VI CPC Pay Band Structure is given below bringing out the large disparities at different levels which created huge anomalies in the pensions especially of the S-21 to S-23 (PB-3) incumbents vis-à-vis S-24 (PB-4) pensioners.

12.       In Table – 3 (Enclosure -1) are given S-1 to S-34 scales of pay of V CPC,  the original and the revised Pay Bands ‘Minima + Grade pay‘ of VI CPC and the ratios of Revised Pay Bands ‘Minima + GP‘  of VI CPC to the ‘Pay Minima’ of V CPC scales. In the Revised Pay Band structure of VI CPC, S-4 to S-8 are combined into  PB-1, S-9 to S-15 are combined into PB-2, New Scale to S-23 are combined into PB-3, and S-24 to S-29 are combined into PB-4. If the ratios of  the ‘minima + GP’ of VI CPC  to the ‘Minima’ of the V CPC at both ends of each Pay Band are worked out, they will be as under:-

(a)       For PB-1, the ratios are 2.55 (i.e., 7000/2750) for S-4 and 1.78 (8000/4500) only for S-8.

(b)       For PB-2. the ratios are 2.70 (13500/5000) for S-9 and 1.84 (14700/8000) only for S-15.

(c)        For PB-3, the ratios are 2.63 (21000/8000) for New Scale and 1.75 (23200/12000) only for S-21 & S-23 and 1.82 (23200/12750) only for S-22.

(d)       For PB-4, the ratios are 3.22 (46100/14300) for S-24 and 2.58 (47400/18400) for S-29.

13.       The above ratios show that the incumbents of the ending scales of each Pay Band were the maximum sufferers, be they in service or retired, with a pay rise of only 1.75 to 1.84 times, while the incumbents of the Pay scales at the beginning of the Pay Bands were the maximum gainers with an increase in their pay of more than 2.55 to 3.22 times. This is an anomaly which deserves the attention of the Government to rectify.

Justification – 5

4 showing a more or less a uniform gradient indicating a gradual increase. On the contrary, the ‘ Minima + GP ‘ of  the corresponding VI CPC Pay Bands shows a step structure with steps at 3 places ( Viz., at the  junctions of different Pay Bands), the one at the junction of  PB-3 & PB-4 being  the largest, giving rise to huge disparities.

15.                                          In Fig.2. (Enclosure – 3), the ratio ‘G’ (i.e., F/B) (pl. refer to enclosed Table 3) of the “Pay Minima + GP “ (F)  of the VI CPC Pay Bands to the Pay Minima (B) of the corresponding V CPC scales S-1 to S-34 is presented. This graph shows several peaks indicating high ratio of G (F/B) indicating that maximum benefit has been enjoyed by the incumbents of the Scales at S-4, S-9, New Scale, S-24, S-28, and S-31. This ratio decreases from each of these peak levels up to the next Pay Band junction.  The worst sufferers are those who fall in the troughs Viz. S-7& S-8, falling in PB-1, S-13, S-14 & S-15 falling in PB-2 and S-21, S-22 & S23 falling in PB-3. The injustice done was greatest for incumbents of S-21, S-22 & S-23 in the Pay Band Structure of  VI CPC and needs to be redressed.

Justification – 6

16.                                          In the original VI CPC recommendations, the following changes have been made by Govt:-

(a)                               The PB-1 (5 Scales) changed from 4860 – 20200 to   5200 – 20200.

(b)                               The PB-2 (7 Scales) changed from 8700 – 34800 to   9300 –  34800.

(c)                               The PB-3 (9 Scales) 15600- 39100 – No Change.

(d)                               The PB-4 (6 Scales) changed from  39200 – 67000 to 37400 – 67000

(e)                               The Grade Pay also was revised at several places.

(f)                                The PB-3 was originally recommended from a new scale (8000-13500) (Group A Entry) and from S-16 (9000) to S-27(16400-20900) (12 scales of V CPC + 1 new Scale). This was subsequently made applicable to the new scale and from S-16 to S-23.(12000-18000) (8 Scales + 1 new Scale). (S-24 to S-27 were removed from PB-3 and upgraded to PB-4).

(g)                               Originally PB-4 was from S-28 (14300-22400) to S-32 (24050-26000) (5 scales) but later it was made applicable from S-24 (14300 – 18300) to S- 29 (18400-22400) (6 scales). (S-30 to S-32 removed and upgraded)

(h)                              S-30, S-31 & S-32 scales have been removed from PB-4 (37400-67000).   A new HAG scale 67000 – 79000 was introduced against S-30 (22400-24500) and S-31 & S-32 scales have been brought under new HAG + scale of 75500-80000, all the three with no Grade Pay.

applicable from Colonel & Brigadier level.  Subsequently, Lieutenant Colonels (13500-17100) also were brought under PB-4.

(k)        Merging of  V CPC Scales.

(i)         S- 1 to S – 3    (4 Scales) have been merged as PB -1S.

(ii)        S- 4 to S – 8    (5 Scales) have been merged as PB -1.

(iii)       S- 9 to S -15   (7 Scales) have been merged as PB -2.

(iv)       S-16 to S-23 (9 Scales including the New) have been merged as PB-3.

(v)        S-24 to S-29 (6 Scales) have been merged as PB-4.

17.       It is seen from the above that the PB-3 incumbents, be they in service in any of the Central Govt. Departments including the Ministries or retired,  were the maximum sufferers as the difference in the starting of the old scales (Lowest & Highest) was 4000 or even 4750 (8000 for New Scale & 12000 for S-23 and even 12750 for S-22) and the new scale (PB-3) is same for all the 9 Scales (15000 – 39100 + GP varying from 5400 to 7600), The Grade Pay difference is only 2200 which is not commensurate to offset the disadvantage. This gave maximum benefit to the lowest scale pensioner and least to the top scale pensioner.  Further, there are jumps at the junctions of the Pay Bands, the maximum being at the Junction  of  PB-3 and PB-4 (the starting Pay being nearly 2 ½ times i.e., 15600 & 37400 respectively)  These jumps and the coalescing of a number of scales have given rise to anomalies in the pensions and  consequently in  the arrears. Even in the Grade Pay also, there is a big jump of 1100 from 7600 to 8700 between PB-3 (S-23) & PB-4 (S-24). Also, adopting different pension fixation rules for pre-2006 & post –2006 pensioners  has aggravated the anomaly especially at the junction of PB – 3 & PB-4 in so far  as S-21 to S-23 (JAG Regular) Pensioners are concerned as against S-24 Pensioners. Consequently, the pension of S-24 pensioners has become double that of the S-21 to S-23 pensioners which was not so in the V CPC Scales. This can be clearly seen in the Table of pre-2006 Pensioners (Annexure – 1 of OM No.38-37/08-P&PW(A) pt.1,dtd.14-10-2008 od D/o Pensions & PW – (From Pensioners Counselor, Dec, 2008) ) which shows 11600 for S-21 to S-23 Pensioners and 23050 for S-24 Pensioners.  Also, while S-21 to S- 23 (PB-3) pensioners got around 70,000 as arrears, those in S-24(PB-4) got nearly 4 to 5 times.  It is pertinent to mention here that an intermediate HAG Scale against S-30 (67000 – 79000 w/o GP) has been introduced which removed the big jump at this level. (i.e. between S-30 & S-31). Further, the two new scales HAG+ against S-31 & S-32 (both 75500 – 80000 w/o GP) have also been introduced later.

Redressals Prayed For

several changes in the original Recommendations of the VI CPC as enunciated above and were accepted by the GOI. They left the regular JAG Cadre untouched.  As an aggrieved pensioner of S – 21 Scale and aged 80 years, I would request your Honour to spare a few of your precious moments to go through the above mentioned facts and issue suitable directions to undo the injustice done to the regular JAG Cadre incumbents ( S – 21, S – 22  & S – 23 ) by placing them also along with S – 24 (JAG NFSG) in PB – 4 of the VI CPC.  For this act of your generosity and kindness, the entire pensioner community, who are adversely affected, would be ever grateful to you.

19.       Further, I would pray for the following:-

(a)       Pensioners, after retirement do not get HRA, CCA, LTC facilities.  To compensate for this and to fill up the gap, it is requested that additional Pension  at 5%, 10% and 15%  may please be granted respectively when they attain the ages of  65, 70, and 75.  VI CPCs recommendation is already there from the age of 80 and onwards.

(b)       Pensioners do not get any increments after retirement and as such their pension may be allowed the benefit of calculating the Notional Pay as was done for pre-1986 pensioners and then fixing their pension on that basis whenever there is a revision due to CPCs.

(c)        Treating the pre and post 2006 pensioners alike and applying the same rules for calculating the pensions.

(d)       Extending the benefit of full pension for those pre 2006 pensioners also who had less than the qualifying service of 33 years since  such pensioners may be a few only in number.

Thanking you,

Yours Sincerely,

(M.V.Joga Rao)

Retd.Director (Geophysics), GSI.

Copy for information and necessary action to:

1.         The Chairman, National Anomaly Committee & Secretary, to GOI, Deptt. of Personnel & Training, III Floor, Lok Nayak Bhavan, Khan Market, New Delhi – 110003.

2.         The Secretary to GOI, Deptt. of Pensions, AR & Public Grievances, 5th Floor, Sardar Patel Bhavan, Sansad Marg, New Delhi – 110001.

3.         The Secretary, to GOI, Deptt. of Expenditure, Ministry of Finance, Central Secretariat, North Block, New Delhi – 110001.

4.         The Dy. Secretary (JCA) & Member Secretary, National Anomaly Committee, Deptt. of Personnel & Training, III Floor, Lok Nayak Bhavan, New Delhi – 110003.

5.         The Jt. Secretary (PG), M/o Mines, Room No. 322, 3rd Floor, ‘A’ Wing, Shastri Bhavan, New Delhi – 110001.

6.         Shri Umrao Purohit, Secretary (Staff Side).NC (JCM), National Anomaly Committee, 13-C, Firozshaw Road, New Delhi – 110001.

7.         Shri S.S.Ramachandran, Hony. Secretary General, AICCPA, 144, Surya Kiran Apartments, Plot. No.65, Fifth Avenue, I.P.Extension, Patparganj, Delhi – 110092.

8.         Shri S.K.Vyas, Member, National Anomaly Committee (Staff Side), 13-C, Firozshaw Road, New Delhi – 110001.

9.         The Secretary General, The Co-ordination Committee of Central Govt. Pensioners Association, 1874/2, Sector 64, Phase X, Chandigarh – 160059.  (SCOVA Member)

10.       The President, Coordination Committee of Central Government Pensioners Association, Pensioners’ Room, AG’s Office Premises. Saifabad, Hyderabad – 500 004. (SCOVA Member).

11.       Shri M. Raghavaiah, Member (Staff Side), NC (JCM), National Anomaly Committee. 13 – C Firozshaw Road, New Delhi – 110001

(M.V.Joga Rao)

Table – 3                                  Enclosure -1


Table Showing V CPC Minima, VI CPC Original Minima + GP & VI CPC Revised

Minima + GP  of Scales


V CPC Scale V CPC Minima VI CPC Original Minima VI CPC (Original Minima + GP) VI CPC Revised Minima VI CPC (Revised Minima + GP) Ratio
(a) (b) (c) (d) (e) (f) f/b
S –   1 2550 4440 5740 4440 5740 2.25
S –   2 2610 4440 5840 4440 5840 2.24
S  – 2A 2610 4440 6040 4440 6040 2.31
S –   3 2650 4440 6090 4440 6090 2.30
S –   4 2750 4860 6660 5200 7000 2.55
S –   5 3050 4860 6760 5200 7100 2.33
S –   6 3200 4860 6860 5200 7200 2.25
S –   7 4000 4860 7260 5200 7600 1.90
S –   8 4500 4860 7660 5200 8000 1.78
S –   9 5000 8700 12900 9300 13500 2.70
S –10 5500 8700 12900 9300 13500 2.45
S – 11 6500 8700 12900 9300 13500 2.08
S  – 12 6500 8700 12900 9300 13900 2.14
S  – 13 7450 8700 13300 9300 13900 1.87
S –  14 7500 8700 13500 9300 14100 1.88
S –  15 8000 8700 14100 9300 14700 1.84
NEW 8000 15600 21000 15600 21000 2.63
S –  16 9000 15600 21000 15600 21000 2.33
S –  17 9000 15600 21000 15600 21000 2.33
S –  18 10325 15600 21700 15600 22200 2.15
S –  19 10000 15600 21700 15600 22200 2.22
S –  20 10650 15600 22100 15600 22200 2.08
S –  21 12000 15600 22200 15600 23200 1.93
S –  22 12750 15600 23100 15600 23200 1.82
S –  23 12000 15600 23200 15600 23200 1.93
S –  24 14300 15600 23200 37400 46100 3.22
S –  25 15100 15600 23900 37400 46100 3.05
S –  26 16400 15600 24000 37400 46300 2.82
S –  27 16400 15600 24000 37400 46300 2.82
S –  28 14300 39200 48200 37400 47400 3.31
S –  29 18400 39200 48200 37400 47400 2.58
S –  30 22400 39200 50200 67000 67000 2.99
S –  31 22400 39200 52200 75500 75500 3.37
S –  32 24050 39200 52200 75500 75500 3.14
S – 33 26000 80000 80000 80000 80000 3.08
S –  34 30000 90000 90000 90000 90000 3.00


 To download Mr. Joga Rao’s  representation CLICK HERE








RBI clamps down on banks delaying pension payout

Letter from RBI on Pension payment |

Central bank wakes up to inordinate delays in payments faced by government pensioners; reprimands bankers and directs them to make good the dues immediately, along with penal interest

In what could be a major victory for government pensioners awaiting pension payments, the country’s central bank, the Reserve Bank of India (RBI), has taken bankers to task for inordinate delays in disbursing revised pension and arrears.

Taking a serious view of the matter, the RBI has issued a circular (dated 9 April 2010) to various banks with an exasperated tone, directing the concerned banks to ensure that all entitled pensioners are paid their revised pension or arrears within 15 days from receipt of the circular. Additionally, it has also advised the banks to make a penal interest payment of 2% for any delay beyond the due date.

The RBI was forced to take this tough stand after receiving several complaints from pensioners, especially State government pensioners, alleging inordinate delay in disbursing the revised pension and arrears. Under the 6th Pay Commission recommendations, RBI had advised pension-paying banks to put in place a suitable mechanism so that pensioners could get the benefits announced by the government in the succeeding month’s pension payment itself. The controlling offices or head offices of agency banks were also advised to closely monitor and supervise the timely and accurate disbursement of pension to the pensioners.

An RBI review of the pension payment systems in various agency banks revealed the true story behind the picture. The circular highlights RBI’s findings as follows:
Even though Pension Relief Orders were issued by the respective State Governments, there is inordinate delay ranging from one month to 18 months at the Agency Bank level in disbursing the revised pension as also the pension arrears. The delay was more pronounced in the case of those State Govt pensioners residing outside their States drawing pension from Agency Bank branches. To be specific, non-State resident pensioners have not received adequate attention and timely receipt of the revised pension/arrears for months together.

The circular goes on to highlight the discrepancies of banks in administering the pension payouts. Our experience was that customer service on pension payment matters was not effective at the branch level where customers normally interface with the front office,said the central bank’s communique.

The RBI also makes note of the lack of coordination between the branches and the Central Pension Processing Centres, as also the absence of transparency in the calculation of the revised pension or arrears.

In a tone that is vividly indignant, the RBI questions the concerned banks’ indiscretions. Pension payment is an agency function entrusted to you for a commission @ Rs 60 per transaction and an amount of Rs. 486 crore has been paid to Agency Banks on account of pension disbursements alone during the year 2008-09. Although this is a significant income generating activity, it appears that it is still not given the due importance that it deserves.

In view of the above, the RBI has advised banks to undertake review of the system of attending to customer service and have a pension accounts guide at all branches to assist the pensioners in all their dealings with the bank. Additionally, RBI has demanded that suitable arrangements be made, to place on the bank website details about the pension calculations, and made available to the pensioners at periodic intervals with sufficient advertisements to that effect.

With the RBI finally wisening up to the reality and putting its foot down squarely on the Agency banks, they will have to take a deeper look at their archaic systems and make life easier for pensioners. As the RBI rightly puts it, Pension is the lifeline of the pensioners and any delay in affording their legitimate dues will rob them of the dignity of life to which they are entitled to.

 By Sucheta Dalal with Sanket Dhanorkar

Full pension on completion of 10 years service in all cases of pension wef 01.01.2006

There are instances where different departments have  differently interpreted the provisions of Para 5.3 of DOPT OM dated 02.09.2008 read with OM dated 10.12.2009 regarding payment of FULL PENSION to all those who have completed 10 years and above Qualifying Service. I have taken up the matter with particular reference to those who have opted to retire under FR 56(K),  with GOI, Ministry of Personnel, P.G.& Pensions, Department of Pensions & pensioners’ Welfare through an RTI query dated 02.12 2010. DOPT promptly replied vide their letter no. 38/7/10 – P&PW (A) dated 16 December 2010, the operative part of it is as given below:

The provisions of Para 5.3 of OM dated 2.9.2008 and the OM dated 10.12.2009 are applicable to all cases of pension, including pension on retirement under FR 56(K)”

I place on record my sincere thanks and gratitude to Department of Pensions and Pensioners’ Welfare for the promptness of  their response and for settling this matter once and for all.


Special benefits in cases of death and disability in service payment of disability pension/family pension relaxation of qualifying service

GOI, Department of Pension & Pensioners Welfare, have issued detailed instructions regarding relaxation of Qualifying Service for sanction of disability pension for cases covered under different categories of disability, vide their OM No:33/5/2009 – P & PW (F) dated 10th December 2010.

To download the above OM, CLICK HERE.