Thursday, November 17, 2016

Office memorandum gives clarity on 2% dearness relief extended to 58 lakh pensioners

SUBSEQUENT to the implementation of the 7th Central Pay Commission recommendations, the government on the eve of the Diwali had announced 2% dearness allowance for the Central government employees and 2% dearness relief to Central  government pensioners or family pensioners. In an office memorandum dated November 16, some of the confusions on dearness relief, which are given with effect from July 1, 2016, are done away with. Here are 5 such clarifications on dearness relief.
Who will benefit for the enhanced rates of dearness relief?(i) Civilian Central government pensioners/family pensioners (ii) The Armed forces pensioners, civilian pensioners paid out of the defence service estimates, (iii) All India Service pensioners (iv) Railway pensioners/family pensioners.

Which are the categories upon which this new order won’t apply?
(i) The Burma civilian pensioners/family pensioners and pensioners/families of displaced government pensioners from Pakistan, who are Indian Nationals but receiving pension on behalf of government of Pakistan and are in receipt of adhoc ex-gratia allowance.
(ii) Central government employees who had drawn lump sum amount on absorption in a PSU/autonomous body and are in receipt of 1/3rd restored commuted portion of pension.
(iii) Pensioners who are in receipt of provisional pension in the pre-2016 pay scales/pay.
(iv) CPF beneficiaries, their widows and eligible children who are in receipt of ex-gratia payment.

Will this order be applicable to retired Judges of the Supreme Court and High Courts?
In the case of retired Judges of the Supreme Court and High Courts, necessary orderswill be issued by the Department of Justice separately.

Who will calculate the dearness relief for each individual?
It will be the responsibility of the pension disbursing authorities, including the nationalized banks, etc. to calculate the quantum of dearness relief payable in each individual case.

Will this dearness relief be disbursed only after instructions issued by Comptroller and Auditor General of India and the Reserve Bank of India? 
The offices of Accountant General and authorized pension disbursing banks are requested to arrange payment of relief to pensioners etc. on the basis of these instructions without waiting for any further instructions from the Comptroller and Auditor General of India and the Reserve Bank.

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