Central Civil Services - Absorption

Pensioners – Pension Policy – Central Civil Services – FAQ on Absorption

Frequently asked questions on Absorption – Pension Policy – Central Civil Services.

ABSORPTION

Is DoPPW OM No.38/37/08-P&PW(A) dated 28.1.2013 for stepping up of the pension of pre-2006 pensioners w.e.f. 24.9.2012 applicable to Government servants who had drawn lumpsum payment on absorption in Central Public Sector Undertakings/Central Autonomous Bodies and whose 1/3rd pension has been restored.

The notional full pension of the absorbee pensioners would also be stepped up in accordance with the instructions contained in the OM dated 28.1.2013 and 30.1.2015.

Whether the direction of Hon’ble CAT, Hyderabad Bench, regarding revision of1/3rd commuted portion of pension in respect of Government servants who had drawn lump sum payment on absorption in Central Public SectorUndertakings/Central Autonomous Bodies has been Implemented.

The pension of pre-2006 Central Government pensioners had been revised vide this Department’s OM No.38/37/08-P&PW(A) dated 1.9.2008. In terms of para 4.1 of that OM, the revised pension of pre-2006 pensioners works out to 2.26 times of the pre- revised basic pension (without DP). Keeping in view the direction of Hon’ble CAT, Hyderabad Bench, it has been decided vide O.M. dated 11.7.2013 that 1/3rd restored pension of those Government servants who had drawn lump-sum payment on absorption in PSU/AB and whose 1/3rd pension was restored from a date before 1.1.2006, the pre-revised 1/3rd restored pension will be revised w.e.f.1.1.2006 by multiplying the same by a factor of 2.26, if it is more beneficial than the amount of revised restored 1/3rd pension arrived at in terms of this Department’s OM dated 15.9.2008. In the case of those absorbee pensioners in whose case the restoration of 1/3rd pension became due on or after 1.1.2006, the above formulation would apply with reference to notional 1/3rd restorable pension as on 31.12.2005.

These instructions have been issued in compliance of the orders of Hon’ble CAT, Hyderabad Bench in CP No.26/2012 in OA 710/2010.

Payment of DR and additional pension to old pensioners (of the age of 80 years and above) shall continue to be on full pension as per the instructions issued from time to time.

The benefit of revision of restored amount of 1/3rd commuted portion of pension shall be admissible w.e.f. 1.1.2006 or from the date the commuted portion of pension is restored, whichever is later.
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