ups_00072 — Employees who were earlier in Central Government departments and voluntarily resigned and joined public sector companies are entitled for pension and dearness relief as per VI Pay Commission pay scale to the extent as noted in this judgment

Employees who were earlier in Central Government departments and voluntarily resigned and joined public sector companies are entitled for pension and dearness relief as per VI Pay Commission pay scale to the extent as noted in this judgment — This chunk is describing the instructions issued on September 15, 2008 by the Department of Pension and Pensioners' Welfare for the revision of pensions for employees who joined Public Sector Underta... — Facts: This case explains the various demands of pensioners who were in Government service but subsequently joined PSU taking voluntary retirement from Government departments concerned. There are four petitioners in this O.A. They took voluntary retirement from the office of Accountant-General, A.P. and joined PSUs on various dates with differing length of service in the office of Accountant-General. They are aggrieved by the fixation of restored pension consequent upon revision of Sixth Pay Commission in accordance with the formula contained in O.M. No. 4/38/2008-P&PW (D), dated 15-9-2008. As all of them have common grievance, this O.A. is disposed of by this common order, dated 27-9-2011. The main issue involved are examined and answered by the Tribunal taking note of the judgments in this connection by High Court and Apex Court. Hence it is enough if the final order of the Tribunal is noted for the four issues raised in this O.A. The first issue is,

(i) whether Para. 7

(a) of O.M., dated 1-9-2008 which excludes PSU absorbees from the provision of O.M. is illegal. Para. 7

(a) of OM, dated 27-10-1997 was invalidated by Apex Court by which the absorbees in PSU are not entitled to any benefit as they have ceased to be Central Government pensioners. However, in the Order, dated 1-5-1998 in Contempt Petition in WP (C) No. 11855 of 1985, Apex Court clarified that the Respondents are liable to restore not only the pension as ordered by Court, but also the attendant benefits as given to Central Government employees. In other words, the absorbees were given the benefit of restriction of rd commuted pension and revisions thereof and also Dearness Relief on the full pension. Further, the Apex Court in its judgment, dated 29-10-2006 had further clarified. It was observed that the Applicants who had migrated themselves to PSUs are to be treated as Central Government employees in so far as the question of restoration of 1⁄3 rd of commuted pension is concerned and are entitled to the benefits as given in common case 1987 (1) SCC 142. It was further upheld that PSU absorbees who had commuted 1⁄3 rd pension and surrendered 2⁄3 rd pension fall in different class by themselves on this issue. Hence Para. 7

(a) of OM, dated 27-10-1997 is not illegal. Since the absorbee pensioners fall in different class, I find nothing in Para. 7

(a) of OM, dated 1-9-2008 which only states that PSU absorbees who had drawn lumpsum grant equal to 100% pension and are entitled to restoration of 1⁄3 rd commutation of pension will not be governed by the said OM. Thus the first issue is decided against the Applicants. Issues

(ii) and

(iii) are:

(ii) Whether OM, dated 15-9-2008 by which separate orders have been issued for revision of pension to PSU absorbees is legal and valid.

(iii) Whether the letter of 3rd Respondent issued between April and June, 2010 regarding revision of restored amount of 1⁄3 rd commuted portion of pension as per Sixth Central Pay Commission report is legally sustainable. O.M. No. 4/38/2008-P&PW (D), dated 15-9-2008, DoP&Pensioners Welfare issued orders for revision of Pension of PSU absorbees as under: "A. As on 1-1-2006, the full pension of the absorbees shall be notionally revised with effect from 1-1-2006 based on full pension as on 31-12-2005 in accordance with the instructions for revision of pension, issued for implementing the Sixth Pay Commission Recommendations vide O.M. No. 38/37/08-P&PW (A), dated 1-9-2008. Benefit of additional pension available to old pensioners will be granted in Para. 3 below:- B. The restorable 1⁄3 rd pension will be sum of the following:

(i) 1⁄3 rd of full pension as on 31-12-2005.

(ii) Dearness Pension on the full pension as on 31-12-2005.

(iii) Dearness Relief up to AICPI (IW) - average index 536 (Base year 1982 = 100), i.e. @ 24% of basic full pension plus dearness pension.

(iv) Fitment weightage @ 40% of the full pension as on 31-12-2005. Legality of the OM, dated 15-9-2008 and the instruction of R-3 regarding revision of 1⁄3 rd commuted portion of pension incorporating protection clause contained in OM, dated 27-5-2009 is to be examined. As the formula adopted by Government for calculation of restorable pension has legal sanction as confirmed by Apex Court, it is not illegal. Hence the OM, dated 15-9-2008 as well as instruction of R-3 to P&AO, Central Pension Accounts Office (CPAO), New Delhi regarding revision of restored amount 1⁄3 rd commuted portion of pension as per Sixth Central Pay Commission are legally sustainable. Thus, the second and third issues are also decided against the Applicants. The

(iv) issue reads as below:

(iv) to what relief, if any are the Applicants entitled.