Notional Increment for Pension: National Council Urges Government to Issue Order for Retired Employees

Read: Grant of Notional Increment for Retired Central Government Employees: Detailed Guidelines Issued (14-10-2024)

The National Council (Staff Side) of the Joint Consultative Machinery (JCM) has renewed its call for a general order on notional increments for central government employees who retired on the last working day of June or December. In a letter to the Department of Personnel & Training (DoPT) and the Department of Expenditure, Ministry of Finance, the National Council’s Secretary, Shiva Gopal Mishra, urged the government to implement the recent Supreme Court ruling on this issue.

Supreme Court Ruling on Notional Increment

The push comes after the Supreme Court’s judgment in SLP(C) No. 4722/2021, dated 6th September 2024. The court ruled in favor of central government retirees, granting them notional increments for pensionary benefits if they retired on the last working day of June or December.

Despite multiple representations and favorable judgments from Central Administrative Tribunals (CAT) and various High Courts, the government has yet to issue a common order applying the ruling across the board.

Ongoing Struggles of Retired Employees

Retirees affected by the issue have been forced to file writ petitions in courts across India. While many have won their cases, the government has applied the benefit only to those petitioners, leaving others to continue waiting.

The National Council has repeatedly raised the issue in Standing Committee Meetings, but no general order has been issued to extend the benefit to all affected retirees.

Supreme Court’s Interim Relief

The Supreme Court issued an interim order on 11th April 2023 to provide clarity and prevent further litigation. Key directives include:

• Third parties will be granted notional increment for enhanced pension, effective from 1st May 2023. No arrears will be paid for periods prior to this date.
• Retirees who filed and won writ petitions will receive enhanced pensions based on the court’s previous judgment.
• Cases under appeal or where the judgment is not final will not receive the benefit until the case is resolved.

National Council’s Request

In light of these developments, Shiva Gopal Mishra has requested the government to issue a general order granting notional increments to all retirees who left service on the last working day of June or December. This, he argues, would prevent further delays, ease the burden on retirees, and reduce the need for additional litigation.

Government’s Stance

The government has been awaiting the outcome of a review petition pending in the Supreme Court. Departments have been instructed to file petitions in relevant courts, further delaying relief for many affected retirees.

The National Council (Staff Side) hopes that the government will act promptly to issue a general order, bringing relief to central government retirees who have been waiting for fair treatment regarding their pension benefits. With court judgments already in place, a government order would ensure that the benefit of notional increments is extended to all eligible retirees without further delay.