7th CPC Pension Revision – Who are absorbed in Central Public Sector Undertakings – Latest updates by Confederation

7th CPC Pension Revision – Who are absorbed in Central Public Sector Undertakings – Latest updates by Confederation

EXTENDING THE BENEFIT OF PENSION REVISION TO THE EMPLOYEES AND OFFICERS WHO ARE ABSORBED IN THE CENTRAL PUBLIC SECTOR UNDERTAKINGS – LATEST POSITION

Department of Pension and Pensioner’s Welfare has issued OM No. 38/37/2016 – P&PW (A) (ii) dated 04.08.2016 regarding implementations of the Seventh Central Pay Commission – Revision of Pension of Pre-2016 pensioners and Family Pensioners etc. In para 7 (a) of aforesaid OM, it was mentioned that –

“Where the Government servants on permanent absorption in public sector undertakings/Autonomous bodies continue to draw pension separately from the government, the pension of such absorbees will be updated in terms of these orders. In cases where the Government servants have drawn one time lump-sum terminal benefits equal to 100% of their pensions and have become entitled to the restoration of one-third commuted portion of pension as per the instructions issued by this Department from time to time, their cases will not be covered by these orders. Orders for regulating pension of such pensioners will be issued separately.”

In the orders dated 10.09.2016 of Hon’ble Supreme Court in Civil Appeal No. 6048/2010 Shri K. Ganesan Vs Union of India, it was mentioned that —-

“Having heard learned Counsel for the appellants, and having persued the record of the case, we find no justification whatsoever to interfere with the impugned order, directing restoration of 2/3rd in respect of the respondent herein, after expiry of the requisite period of commutations. The instant appeal is accordingly dismissed.”

In the same order dated 01.09.2016 of Hon’ble Supreme Court in Civil Appeal No. 6371 of 2010 Shri K. L. Dhall & Anr Vs Union of India, it is stated that —-

“Heard Learned casual for the rival parties. In view of the dismissal of Civil Appeal No. 6048 of 2010 by us today (Union of India and another Vs K. Ganeshan (dead) By Lrd), this appeal has to be accepted. Accordingly, the instant appeal is allowed. The impugned order of the High Court is set aside. It is directed that the appellants shall be entitled for restoration of their 2/3rd Portion after the expiry of the requisite period of commutation.”

After consultation with Department of Expenditure and Department of Legal affairs, two Review Petitions have been filed by the Government in the Hon’ble Supreme Court vide Review Petitions No. 465/2017 and Review Petition 472/2017 against the order dated 01.03.2016 of Hon’ble Supreme Court in Civil Appeal No. 6048/2010 (Shri K. Ganesan Vs Union of India) and Civil Appeal No. 6371 of 2010 (Shri. K. L. Dhall & Anr Vs. Union of India). The Review petition came up for hearing in the Hon’ble Supreme Court on 22.03.2017. The Hon’ble Supreme Court has dismissed both the Review Petition vide order 22nd March 2017.

Government has now informed that since, the above orders dated 01.09.2010 of Hon’ble Supreme Court has a bearing on the question of revision of one-third restored pension of the absorbed pensioners, no orders for the revision of one-third pension in such cases could be issued so far. The matter would be examined in the light of dismissal of the Review Petitions mentioned above.