RESTORATION OF1/3 RD COMMUTED PORTION OF PENSION.

thursday, September 24,2009
Restoration of 1/3rd commuted portion of pension - in public sector undertaking/autonomous bodies



F.No.4/38/2008-P&PW(D)

GOVERNMENT OF INDIA

Ministry of Personnel, Public Grievances & Pensions

Department of Pension & Pensioners' Welfare

Lok Nayak Bhawan,
Khan Market,New Delhi-03
dated 17.9.2009

OFFICE MEMORANDUM

Subject:- Representation on mentioned of revision of restorable 1/3 commuted portion of pension consequent to 6th Pay Commission recommendations in respect of Govt. Servants who had drawn lump-sum payment on absorption in public sector undertaking/autonomous bodies - regarding.


This Department has been receiving representations on the above noted subject. In this regard, the undersigned is directed to state that the Government had issued instructions on restoration of 1/3rd commuted portion of pension on absorption in public sector undertaking/autonomous bodies implementing the Andhara Pradesh high court judgment dated 24.12.03 in Writ petition No. 8532 of 2003 followed by the Supreme Court judgment dated 29.11.08 in Civil appeal No.5269 of 2006 srising out of SLP Nos 21647 -648 of 2005 and the Supreme Court judgment dated 24.7.2007 in Review petition No.643 of 07 vide O.M.No.4/79/2006-P&PW(G) dated 6.9.2007 in consultation with Ministry of Law & Justice and Ministry of Finance (Deptt. of Expenditure). It was further clarified vide OM dated 13.5.08. In pursuance of Government's decision on the recommendations of Sixth Central Pay Commission, Instructions have been issued for revision of 1/3rd restorable pension of such absorbees vide Deptt. of Pension & Pensioners Welfare's OM of even No. dated 15th September 2008 followed by OM dated 27.5.2009.

2. The formula for arriving at 1/3rd restorable pension in the OM dated 15.9.2008 is on the same lines which the Hon'ble Court has prescribed in the above mentioned judgment as the revision of restorable pension of such absorbees is governed by the Hon'ble Court judgment mentioned above. It is pertinent to mention that pension is revised as per instructions for any other pensioners as it is not regulated by Hon'ble Court order. So far as instructions contained in O.M.dted 27.5.2009 are concerned this has been issued so as to protect this class of pensioners in case there is loss in 1/3rd restorable pension plus DA w.r.t.pre-revised 1/3rd restorable pension plus DP plus DR.



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