44
No.WRC/39/2/2005 Dated.15th June, 2005
ENCL: as above.
(L.D.PAHUJA)
ASSTT.GENERAL MANAGER(EP.I)
As per list enclosed.
F.No.38020/1/2000-FC.3
Government of
Ministry of Consumer Affairs, Food and Public Distribution
Department of Food and Public Distribution
Krishi Bhawan,
Dated the 31st May, 2005
To
The Managing Director,
Food Corporation of
16-20,
New Delhi-110001
Sub: Revision /Rationalisation/Consolidation of pension/family pension of Post
December, 1988 and Pre-January 1977 retired Category I & II and
Post July 1987 and Pre January 1977 retired Category III & IV employees of the
Food Corporation of
of the scales of pay consequentj upon revision of the scales of pay by FCI w.e.f.
01.01.1997.
Sir
I am directed to refer to the letters No.WRC/39/1/2000 dated 28.7.2000
and 21.9.2000 of the Food Corporation of India on the above mentioned subject
and to say that the matter has been under consideration in consultation with the
Deptt. of Public Enterprises and Deptt. of Pension
and Pensioners’ Welfare. The Deptt.
of P&PW linked this issue with the general guidelines being evolved by them
in consultation with the Ministry of Finance (Deptt. of Expenditure) regarding
the pension and related benefits of the Industrial Dearness Allowance (IDA)
retirees of the Central PSUs based on their combined service in the Government
and in the PSUs.
2.
In the meantime, the Kerala High
Court vide their judgement dated 14.3.2000 struck down instructions issued vide
letters No.A.38011/10/93 dated 8.2.1996 sanctioning DR on IDA pattern to the IDA
retirees of the Food Corporation of India in OP.Nos.22648 & 18128/97 and
others. The judgement was confirmed
by the Division Bench of the Kerala High Court vide their judgement and order
dated 1.10.2002 in the Writ Appeals field by the UOI.
The Madras High Court, on the other hand, rejected the grant of DR and
CDA pattern to the IDA retirees of the Food Corporation of India vide their
judgement dated 29.11.2002.
3.
The Union of
4. The Deptt. of P&PW have also issued general guidelines for pension and related benefits of the IDA retirees of the Central PSUs vide their O.M.No.4/14/2001-P&PW(D) dated 19.9.2003. According to these guidelines, the IDA pay scales are required to be brought notionally to the equivalent CDA pay scales. The pension and other related benefits will then be calculated on the notional pay in the CDA pay scales. In addition, the IDA retirees will be entitled to DR on CDA pattern. Subsequently, the D/P&PW advised that it would not be advisable to work out the modalities pending receipt of judgement of the Supreme Court of India as finalization of modalities when the matter including point of sanction of Dearness Relief is subjudice.
5.
The Ministry of Law and Justice was
consulted and they advised that there may not be any legal objection in resuming
payment of Dearness Relief on IDA basis which was being paid before the dispute
arose. They, however, advised
against the proposal for revision of pension/family pension of the IDA retirees
of the Food Corporation of
6.
Accordingly, instructions for
sanction of Dearness Relief to IDA pensioners/family pensioners of the Food
Corporation of India at the revised rates from 01.07.2003, 01.10.2003,
01.01.2004, 01.04.2004, 01.07.2004, 01.10.2004 and 01.01.2005 on the basis of
the orders issued by the Deptt. of Public Enterprsies vide their O.Ms. dated
30.09.2003, 24.02.2004, 25.02.2004, 15.04.2004, 16.07.2004, 27.10.2004 and
27.01.2005 were issued vide this Department’s letter No.38020/1/2000-FC.3
dated
7.
With reference to the erstwhile
Department of Food & Civil Supplies’ letters No.A-38020/2/97 – FC.3 and
A-38020/1/97 FC.3 and No.A-38020/1/97-FC.3 dated 26.2.1998, I am directed to
state the following :method of
calculation/computation of pension to the IDA employees who retire on or after
01.01.97 from the Food Corporation of India in the revised IDA scales of pay has
also been communicated separately vide this Department’s letter of even number
dated 31st May, 2005. It
has, therefore, become necessary to revise/rationalize/consolidate
pension/family pension of post December 1988 and pre January 1997 retired
Category I & II and Category III & IV employees of the Food Corporation
of
8. In these orders:-
(a)
‘Existing Pensioners’ or
‘Existing Family Pensioner’ means a pensioner who was drawing/entitled to
pension/family pension on 31.12.1996.
(b)
‘Existing pension’ means the
basic pension, inclusive of commuted portion, if any, due on 31.12.1996.
It covers all classes of pension under the CCS(Pension) Rules, 1972 as
also disability pension under the CCS(Extra Ordinary Pension) Rules.
(c)
‘Existing Family Pension’ means
the basic family pension drawn on 31.12.1996 under the CCS(Pension) Rules, 1972.
(d)
‘Existing Dearness Relief’ means
the ACTUAL relief due to pensioners/family pensioners upto AICP Index Average
level 1708.
9.
The pension/family pension of
existing post December 1988 and pre January 1997 Category I & II and post
July, 1987 and pre-January, 1997 Category III & IV pensioners/family
pensioners will be consolidated w.e.f. 01.01.97 by adding together:-
i)
The existing pension/family pension,
ii)
ACTUAL Dearness Relief due upto AICP
Index Average level 1708,
iii)
Fitment weightage @ 20% of the
existing pension/family pension.
The amount so arrived at will be regarded as consolidated pension/family
pension w.e.f. 01.01.97 subject to minimum/maximum limit prescribed under
the
CCS(Pension) Rules, 1972. Since
the consolidated pension will be inclusive of
commuted portion of pension, if any, the commuted pension will be
deducted from the said
amount while making monthly disbursements.
10.
Since the consolidated pension/family pension arrived at as per paragraph
9
includes Dearness Relief upto AICP Index Average level 1708, Dearness
Relief will be admissible thereon only beyond this Index Average level 1708 in
accordance with the revised scheme of Dearness Relief for which orders
are being issued separately by this
Department on an authorization by the Department of
Public Enterprises.
11.
The consolidated pension/family pension as worked out in accordance
with the provisions of para 9 above shall be treated as final ‘Basic
Pension’ w.e.f. 01.01.97 and shall
qualify for grant of Dearness Relief sanctioned thereafter by the Deptt. of
Public Enterprises or this Department on their authorization
in respect of following categories of pensioners/family pensioners:-
i) Category I & II Pensioners who retired between the period 01.01.1989 and 31.12.1996 and Category III & IV pensioners who retired between the period 01.08.1988 and 31.12.1996.
ii)
Family pensioners, who became entitled for family pension during
the period from 01.01.89 to 31.12.96 (Category I & II) and 01.08.1988 to
31.12.1996 (Category III & IV) and were sanctioned family pension at the
percentage prescribed in the CCS (Pension) Rules, 1972 of the last pay drawn by
the deceased employees.
Such payments shall,
however, be subject to the outcome of the SLP
No.238244 of 2004 filed by the Department/Food Corporation of
12.
Adjustment of Interim Relief granted
w.e.f. 01.01.97:-
Vide
this Department’s letter No.38020/1/98-FC.3 dated 30.11.1998 IDA
pensioners/family pensioners of the Food Corporation of
Yours faithfully,
(Suchitra Goswami)
Deputy Secretary to the Government of
Tele: 23383108
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