• Payment of dearness allowance

I have retired in a PSU recently. Ours is a Govt. of India organization converted into a PSU in 2008 just like BSNL. At the time of corporatization, our Unions/Association have entered into an tripartiate 12.(iii) settlement with GOI, Unions and CLC. We have been given an option to remain in GOI or opt to the PSU. in the PSU we have an option to take pro-rata Pension for the services we have rendered in the GOI and continue in the PSU or to take combined pension for the entire service (GOI + PSU)after superanuation. The pro-rata pension is from GOI and the Combined pension is from Pension trust managed by the PSU. Upto 12/2016 we were in CDA scales only and recently there is proposal to migrate to IDA scales from 1/2017 onwards. 
 I have opted for pro-rata pension in 2008 and recently retired. I am getting pension but without any DA component. I came to know that I am eligible for DA also from 2008 onwards. Please let me know the correct rule position. If I am eligible how to claim it and the correct forum to whom I have approach.

MURALI A
Asked 8 years ago in Labour

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3 Answers

Hi

In general subsequent to conversion of a Government of India organisation to a Public sector undertakings, employees are eligible to claim either the Pro-rata pension for entire service or opt for One time settlement prior to migrating to Public sector undertaking.

There has been plenty of circulars on Central Govt. Absorbees in PSU & Pension Entitlement etc and the Supreme court also in case of P.V.Sundara Rajan & Anr vs Union Of India & Ors on 26 April, 2000 has clarified that Pension includes Dearness allowance more so in case of absorbees who had opted for pro-rata pension.

Subsequent to these cases, circulars issued by Central govt absorbees in PSU and Pension entitlement, have clarified that Pension includes Dearness Allowance /Relief and hence you are eligible to claim the since year 2008.

You should approach the Central Administrative Tribunal at Hyderabad for relief.

Rajgopalan Sripathi
Advocate, Hyderabad
2174 Answers
394 Consultations

The OM No. No.4/14/2001-P&PW (D) dated 19/9/2003 refers to the decision on the cases similar to yours with reference to Revision of pension and other attendant benefits of Central Government employees retired/retiring on IDA pay scales and opting for pensionary

benefits of combined service in Government and public sector undertakings (PSU). .

The gist of the above referred OM is reproduced below:

w.e.f. 1.1.1996 pension of all such PSU retirees

who had been absorbed in PSUs as a result of conversion and had opted for pensionary

benefits of combined service in the Central Government and the PSU as per Central

Government Rules on their absorption, shall be revised as under:-

(a) For the purpose of fixation of pension as per O.M. dated 10.2.1998, all absorbees

shall be notionally brought on to CDA scale w.e.f. 1.1.1996. for this purpose:

(i) Concerned administrative Ministries shall work out the

corresponding equivalent scale in CDA pattern, as on1.1.1986, and in

cases where it is not feasible to clearly establish the corresponding

equivalent pay scale in CDA pattern, the final decision shall be taken

by the Head of Department in consultation with the Department of

Expenditure and Department of Personnel &Training as envisaged in

para 14 of Department of Pension & P.W.’s O.M. dated 10.2.1998.

(ii) The pay and pension of the absorbees would then be notionally

determined as on 1.1.1986 as per this equivalent scale.

(iii) Notional consolidation, as on1.1.96, shall thereafter be done.

(b) For the purpose of fixation in terms of provisions contained in O.M. dated

17.12.1998, equivalent scale as on 1.1.1996 shall be worked out. Pension shall

thereafter be calculated at 50% of the minimum of that scale.

(c) The higher of the two amounts as in (a) and (b) above, shall be taken as the

revised pension on 1.1.1996 and DR on CDA pattern be granted thereon.

(d) In all those cases, where the pension of the absorbees have already been

consolidated as per O.M. dated 27.10.1997, using DR on IDA pattern, and such

consolidated pension together with IDA happens to be higher than the revised

pension plus DR arrived as above, the pensioner may be allowed to draw such

higher amount by allowing personal pension to the extent of the difference which

shall be absorbed in subsequent increase in the future.

(e) Provisions of this O.M. shall not apply to the past pensioners of this category

who have, in the past, been given a special dispensation on account of specific

orders of the courts as accepted and implemented by the government. Cases of

this nature shall continue to be governed as per the existing provisions

specifically applicable to them.

To have more ideas in this regard, you may peruse the said OM fully and then revert for more clarifications.

T Kalaiselvan
Advocate, Vellore
90182 Answers
2506 Consultations

The 28.10.2009 dated OM No. No. 28/30/2004-P&PW (B) of Ministry of Personnel, Public Grievances and Pension Department of Pension and Pensioners' Welfare may throw some light to your query.

As a matter of fact you may approach the above department for seeking clarification and releif for your present issues.

T Kalaiselvan
Advocate, Vellore
90182 Answers
2506 Consultations

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