Ppwa Vol - Iv 141014

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No.38/31/11-P&PW(A)(Vol.

IV)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Pension and P.W

3rd Floor, Lok Nayak Bhawan,


Khan Market, New Delhi.
Dated the 14thOctober, 2014
OFFICE MEMORANDUM
Subject :- Revision of pension of pre-1996 pensioners - inclusion of Non-
Practicing Allowance (NPA) for revision of pension of retired medical
officers w.e.f. 1.1.1996.

The undersigned is directed to say that in this Department's OM No.45110/98-


P&PW(A) dated 17.12.1998, it was provided that pension of all pensioners irrespective of
their date of retirement would not be less than 50% of the minimum of the revised scale of
pay introduced w.e.f. 1.1.1996. In this Departments OM No.45/3/99-P&PW(A) dated
29.10.1999, it was clarified that in the case of retired medical officers, Non-Practicing
Allowance (NPA) was not to be added to the minimum of the revised scale of pay as on
1.1.1996 for stepping up of the consolidated pension/family pension to 50% / 30%
respectively, in terms of the OM dated 17.12.1998.

2. In its judgment dated 27.11.2013 in Civil Appeal No.10640-46/2013 and other


connected matters, Hon'ble Supreme Court has observed that in accordance with Ministry of
Health and Family Welfare's OM No.45012/11/97-CHS.V dated 7.4.1998, NPA counts as
pay for all service benefits including retirement benefits. Hon'ble Supreme Court has further
observed that clarification issued vide this Department's aforesaid OM dated 29.10.1999 is
legally unsustainable. Hon'ble Supreme Court has directed to recalculate the pension payable
to the Applicants (i.e. pre-1996 retired medical officers) by adding the element of NPA. The
Review Petitions filed by the Government against the above mentioned judgment have been
dismissed by Hon'ble Supreme Court on 31.7.14.

3. It has now been decided, in consultation with Ministry of Finance, Department of


Expenditure and Ministry of Law, Department of Legal Affairs to implement the judgment
dated 27.11.2013 of Hon'ble Supreme Court in CA No.10640~46 of2013 and other connected
matters. Accordingly, in the case of pre-1996 retired medical officers, NPA @ 25% shall be
added to the minimum of the revised scale of pay as on 1.1.1996 corresponding to the pre-
1996 pay scales from which the pensioner had retired, in cases where consolidated
pension/family pension was to be stepped up to 50% / 30% respectively of the minimum of
revised pay-scale in terms of OM No.45110/98-P&PW(A) dated 17.12.1998 read with OM
No.45/86/97-P&PW(A) (Pt.) dated 11.5.2001.

4. This issues with the approval of Ministry of Finance, Department of Expenditure vide
their I.D. No. 518/E-V/2014 dated 29.9.2014.

5. Hindi version wiII follow.

~~
(Tripti P. Ghosh)
Director

To
(i) All Ministries/Departments of Government of India.
(ii) O/oCAG/CGDA

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