Payment of dearness relief on disability element of disability pension during re-employment period: PCDA’s Instructions

Dated : 07.04.2014

The provisions for payment of dearness relief during re-employment / employment / permanently absorption of pensioners / family pensioners under the Central or State Government or in a Statutory Corporation / Company / Body / Bank under them in India or abroad, are provided in Ministry of Personnel, Public Grievances & Pensions, Deptt of P&PW letter No. 45/73/97-P&PW(G) dt. 2nd July, 1999 and Ministry of Defence letter 79(1)/95/D (Pen/Services) dated 28th August 2000 and Deptt of P&PW UO No. 41/42/2007-P&PW(G) dt. 3-4-2008. For uniform implementation of above orders/provisions by the PDAs, position was re-clarified in this office circular No.165 dt¬22.2.2013 & circular No.166 dt-07.03.2013.

Representations from the Commissioned officers against non payment of dearness relief on disability element were being received by Ministry of Defence as well as by this office. The issue has been reexamined and clarified by the Ministry vide letter dt-28.06.2013 & 03.10.2013 (copies enclosed) that disability element of disability pension is also a type of pension and provision of Govt. of India DOP& PW OM No.45/73/97-P&PW(G) dt-2.7.99 applies regarding payment of dearness relief As such dearness relief on such service/ disability pension(including disability element) during reemployment is not admissible in respect of pensioners who held Group ‘A posts or rank of commissioned officers, at the time of their retirement.

As regards payment of dearness relief on disability element of disability pension to pensioners who held post below Group A or posts below the ranks of commissioned officers, will be admissible only if their pay on re employment is to be fixed at the minimum of the scale of the post in which they are re employed. The ex servicemen who retired before attaining the age of 55 and re-employed thereafter and their pay fixed at a higher stage because of advance increments and no protection of the last pay drawn is being given, the pay should be treated as fixed at a minimum only for the purpose of ignoring the entire pension and allowing dearness relief on pension.

(B. Mukhopadhyay) 

Asst.CDA (P)

Source: http://pcdapension.nic.in/6cpc/Circular-173.pdf