I am sharing with you today details of how Pension and Pay Increase Given in Two Stages in National Pay Scales 1994 for the employees of BPS-17 to BPS-22.
Pension and Pay Increase Given in Two Stages in NPS 1994
This is of particular interest to those pensioners who retired in BPS 17 to 22 from 1.6.1994 onward. Those pensioners can also benefit those who remained stuck up at the pay-scale maximum and did not get the usual increment occurring on 1st December although they had put in 6 months service at the scale maximum in the year of retirement.
Two stages of 1994-Pension-increase
Basic Pay:
1991-payscales were replaced from 1.6.1994 by 1994-payscales. A minimum benefit of 35% over the 31.5.1994 basic pay was allowed in fixing the pay in 1994-scales. Two different modes were adopted for allowing the benefit to employees in BPS 17 to 22, and to those up to BPS 16, as explained below.
Sr. No
Employees in BPS 17 to 22
Employees in BPS 1 to 16
(i)
A benefit of 35% was given in 2 stages – in 1st stage, 20% only (out of total 35%) was actually allowed from 1.6.1994.
An entire benefit of 35% was allowed and paid from 1.6.1994 in a single stage.
(ii)
The remaining benefit of 15% was also calculated from 1.6.1994 in the 2nd stage but was actually paid from 1.6.1995, without any arrears for 1.6.1994 to 31.5.1995.
2- Effect on pension
In the case of retirement from 1.6.1994 onward, basic pay is actually drawn by employees in BPS 1 to 16 included in emoluments. In the case of employees in BPS 17 to 22, however, the benefit in pension was given in 2 stages. Pay fixed in 1994 scales with only 20% benefit was included in emoluments for pension purposes in the 1st stage. Pension so calculated was then revised in the 2nd stage from 1.6.1994 by allowing full 35% benefit in basic pay but the financial effect was given from 1.6.1995. No arrears on account of 2nd stage revision were however admissible for the period 1.6.1994 to 31.5.1995.
If any pensioner in BPS 17 to 22 did not get the 2nd stage benefit, it is high time to claim the same now.
4- Increment beyond scale maximum
Some employees retiring from 1.6.1994 onward in BPS 17 to 22 were at the scale maximum on 31.5.1994. Their pay on retirement date was increased in the 1st stage by 20% and included in pensionable emoluments. The pension so determined was recalculated with effect from 1.6.1995 after allowing a full 35% notional increase on their 1991-scales basic pay. They did not get arrears of pension for the period 1.6.1994 to 31.5.1995.
Pensioners at scale maximum on 1.12.1994 and retiring on or after 1.6.1995 completed six months’ service at scale maximum. They would normally have got the benefit of one increment in pension for that service which Govt did not allow merely because they were already at scale-maximum which could not be exceeded.
Finance Division issued orders in 2010 to the effect that in view of Supreme Court directions. The benefits of one increment are to be allowed to all those pensioners who were stuck up at the scale maximum and completed six months of service at that maximum before retirement. A copy of the orders dated 13 July 2010, I have attached.
Pensioners who remained stuck up at scale maximum and they did not get increment beyond scale maximum, even though they completed six months service at the scale maximum, may now avail of the benefit. For further information and consultation, please get in touch with me.
