Monday, November 8, 2010

Fixation of pay of re-employed pensioners - Treatment of Military service Pay





No. 3/19/2009 Estt. Pay II

Ministry of Personnel, Public Grievances 8 Pensions

Department of Personnel & Training





New Delhi, the 8th November 2010





Office Memorandum





Subject: Fixation of pay of re-employed pensioners -Treatment of Military service Pay




The undersigned is directed to refer to the orders issued vide OM dated 5.4.2010 on fixation of pay of re-employed pensioners. These orders inter-alia lay down that on re-employment in civilian organizations, Military Service Pay shall not be admissible. However, the benefit of MSP given to all retired Defence Forces officers/personnel by reckoning it at the time of calculation of their pension (notionally in the case of pre-1.1.2006 pensioners) should not be withdrawn. Accordingly, while the pension of such re-employed pensioners will include the element of MSP, they will not be granted MSP while working in civilian organizations.



In the instructions issued by the Ministry of Defence vide their letter No. 1/69/2008/D(Pay/Service) dated 24th July 2009, Pre-retirement pay has been defined as under:



(i) In respect of re-employment taking place onlor after 1.1.2006 pre-retirement pay for those who retired after 1.1.2006 means the pay in the pay band plus grade pay but inclusive of Non-Practicing Allowance (NPA) if any, last drawn before retirement.



(ii) In case of officers who retired before 1 .I ,2006 and also those who retired after 1.1.2006 in the pre-revised pay scales without opting for the revised pay scales promulgated on or after 1.1.2006 the pay will be basic pay including stagnating increment and Rank pay plus the Dearness pay and Dearness allowance drawn at the time of retirement.



As per these orders, for pre-2006 retirees rank pay is included as a part of pay but for post -2006 retirees, the MSP is not reckoned in the pre-retirement pay for the purposes of pay fixation on re-employment. However, for pension purposes the reckonable emoluments are - basic pay + grade pay + MSP + NPA wherever admissible. Therefore, while MSP is not taken into consideration for the purposes of pay fixation on re-employment, the element of MSP in pension is deducted.



It has been decided in consultation with the Department of Expenditure, that since the element of MSP is not reckoned in the pay fixation on re-employment, it need not be reduced from the pension either. Hence. In respect of all those Defence officers / personnel, whose pension contains an element of MSP, that need not be deducted from the pay fixed on re-employment.






( Mukesh Chaturvedi )

Deputy Secretary






Source: www.persmin.nic.in

1 comment:

  1. sir/madam,
    re-employment of rly. pensioners whose age at the time of his vr. retirement was below 55 years and hanging promotions,till now, no settlement order has yet been issued.
    i want to know when this proper fixation and others will be done ?proper status and pay scale with all ,not given promotions and increaments since 1-1-2006 should be done.
    as per the president of india's order it should be done as early as possible,considering the vr. rly.pensioner's family's condition.
    awaiting your favourable response.
    NOTE.re-employment means the above dues should be clear with all benefits and pension.candidate may be resumed or not that depends on the pensioner's.
    thanking you,
    yours faithfully,
    D.P.SARKAR

    ReplyDelete