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Centre ends disparity in disability pension
10-06-2010, 11:12 AM
Post: #1
Centre ends disparity in disability pension

Centre ends disparity in disability pension
New pension rules to benefit those who retired before 2006
Vijay Mohan

Tribune News Service

Chandigarh, October 5
Orders have been issued to revise the disability pension and special family pension of Central government employees who have retired prior to January 2006, thereby bringing in the much sought after parity with the pension of those who retired in or after 2006.

Orders issued by the Ministry of Personnel, Public Grievance and Pensions on September 30 state that after the pension has been calculated in accordance with the new rules, the new pension would be paid.

The new benefits would be granted with effect from January 1, 2006, the date of implementation of the Sixth Pay Commission. Since the aforementioned ministry is the nodal authority for formulating pension policies for all Central government departments and agencies, the Ministry of Defence and the Ministry of Railways are also expected to soon implement these orders with relevant.

With this, the pension of all pre-2006 retirees in receipt of disability, extraordinary or liberalised pension will be fixed as a percentage of the new post-2006 scales, rather than the old formula entailing basic pension multiplied by 2.26.

The new rules would also be in line with the judgment of the Supreme Court in D.S. Nakara’s case, which ruled that the formula of pension calculation has to be the same for all employees irrespective of the date of retirement.

Under the new rules, the family pension of a deceased employee who was not holding a pensionable post would be 40 per cent of the pay in the pay band plus grade pay or minimum basic pay, while in cases where the deceased was holding a pensionable post, the pension would 60 per cent of the pay in the pay band plus grade pay or minimum basic pay.

Disability pension would comprise a service element of 50 per cent of the minimum pay in the pay band plus grade pay or minimum basic pay plus disability element of 30 per cent of the same minimum basic pay for 100 per cent disability.

The service element would be reduced proportionately if an employee does not have qualifying service for full pension.

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