Judgment of FST & Lahore High Court about restoration of Pension after 15 Years of Retirement

The Lahore High Court, Lahore on 17-11-2011 & and Federal Service Tribunal (FST) on 15-12-2011 have already given decision in favour of the pensioners to restore  50% pension after 15 years of their retirement.

On retirement the pension of pensioners was fixed but 50% of their pension was deducted as a result of commutation. They were paid 15 years pension lump sum. The remaining 50% of their pension was paid to them every month. The Federal Govt and Provincial Governments allowed periodical increases on the pension they were receiving every month. When the commuted period of pension expired, the respondents did not pay them commuted pension with periodical increases. But their request was rejected.

According to the decision of the Lahore High Court & FST, the case of restoration of 50% pension of the pensioners is expected soon.

 

Restoration FST Decision 1Pension Restoration 2 Pension Restoration 3 Pension Restoration 4 Pension Restoration 5

 

 

2 Comments

  1. Agha Amir says:

    Dear friend Anwar Butt, Tribunals and Courts can order as per prevalent rules. They do not give any irregular (not covered by, or in contravention of, rules) benefit to the public servants. I am one of the pensioners who won the case in Tribunal and then Fin Div appeal thereagainst was dismissed by the Supreme Court and Fin Div had to issue those orders that increases (not granted from 1.12.2001 on commuted part) should be granted to all pensioners equally placed from the date of restoration.

    It is true that by opting the 2001 Payscales-cum-Pension scheme, the public servants opted for the 2001 payscales along with accepting that their commuted pension would not be restored. Having signed that financial death warrant with their own hands, how can they claim that the restoration benefit is still admissible to them ?

    Yes in my opinion there is one way out, but it would require lot of legal efforts, expenses and patience. In case some group of pensioners retiring after 1.12.2001 demonstrates that the group is willing and prepared to enter into lengthy and complicated litigation, certain suggestions can be made in that respect. But so far I have not come across any such pensioners who are willing to undertake that venture.

    Your views are unfortunately not supported by the rules and orders and therefore are of little value speaking legally.

    Agha Amir

    amir_agha@hotmail.com

  2. Muhammad Anwar BUtt says:

    The intention of the Finance Division, Islamabad vide his No. F.13 (13)-Reg. 6/2011 dated 14.1.2013 and No. F.13 (13)-Reg. 6/2011 dated 11.3.2013 is that the judgment of the FST dated 5.1.2012 by which it is directed “ to determine the pension of the appellants from the date of restoration of their commuted pension at the rate at which they were drawing 50 % remaining pension and the arrears should also be paid to them. It was also clarified that by the FST that appellants shall not be entitled to claim arrears for the period prior to restoration of their commuted pension.” be implemented in favour of the litigants and all other equally placed pensioners.

    I am placing some points of policy matters of pension / commutation for comments by interested civil servants.

    (i) In pay scales of 2001, the Governments of the Punjab vide para 16(e) stated, “the benefits of restoration of surrendered option of pension in lieu of commutation / gratuity shall be withdrawn.” w.e.f. 1.12.2001.
    (ii) The Finance Division of Pakistan vide his No. F.1(5) Imp. / 2001 dated 3.11.2001 on the point of clarification raised by the AGPR vide para 16(e) “The benefits of restoration has been withdrawn. It is assumed that the benefits will not be admissible to those who opt the revised scales and pension package and restoration of commuted portion of pension will remain admissible to the pensioners retired after 1.12.2001 under the pre-retired basic scales(2001)” clarified to the point that “ the benefits of restoration of commuted value of pension has been withdrawn w.e.f.1.12.2001 irrespective of employee’s date of retirements” vide above referred letter.
    (iii) The matter has been challenged in the tribunals, ombudsmen and apex courts by the pensioners widely. The Supreme Court of Pakistan dismissed the petition by the AGPR leaving the field judgment of division of the LHC, who stipulated that “ the restoration of pension means the pension due to a retired civil servants on that year inclusive of all increments till that time”.
    (iv) Restoration of pension of retired civil servant is his basic right who live-out the period for which commutation was paid to him,
    (v) The provincial Governments may also follow the policy and decisions of the Tribunals, Ombudsmen and Apex Courts; otherwise it will be the rules of “Jungle” and wolves.

    In my view all the pensioners have equal rights for restoration of commuted pension with all increases irrespective to date of retirement before or after 1.12.2001 on completion of the number of years for which commuted value is paid..