Pension Litigation Case Study – Pension Fixation of Pre-2006 Retirees with 20 Years of Service

Pension Litigation Case Study – Pension Fixation of Pre-2006 Retirees with 20 Years of Service

5. Pension Fixation of all pre-2006 retirees with twenty years of qualifying service

5.1 Brief: DoPPW issued an OM dated 28.01.2013, wherein it was reiterated that as per Para 4.1 and 4.2 of OM dated 01.09.2008, pension of pre-2006 pensioners would be stepped up to 50% of sum of minimum of pay in the pay band and grade pay corresponding to the pre-revised pay scale from which the pensioner retired. A revised concordance table was also enclosed to facilitate revised payment in this regard.

Another OM dated 06.04.2016 was issued by DoPPW. As per Para 6 of this OM, revised consolidated pension of pre-2006 pensioners shall not be lower than 50% of the minimum of pay in the Pay Band and in the grade pay, corresponding to the pre-revised pay scale as per fitment table without pro-rata reduction of pension even if they have qualifying service of less than 33 years at the time of retirement.

5.2 Pre-2006 retirees who did not complete 33 years of service are seeking revision of pension for pre-2006 retirees in spite of ensuring pension at the rate of 50% of pay in pay band and Grade Pay in terms of Para 4.2 of DoPPW OM dated 01.09.2008 read with DoPPW OM dated 06.04.2016 and claim parity with those who had completed 33 years of service.

5.3 The interpretation is that for fixing pension in 6th CPC, the pro-rata reduction due to lesser service than 33 years would apply, but if the effect of such reduction is that, if the amount of pension falls less than 50% of minimum of pay in pay band plus grade pay, in that case, there will be protection.

5.4 In this regard, two matters heard before Hon’ble SC as under:

(i) Hon’ble SC vide order dated 18.12.2024 in SLP Dy No. 59031 of 2024 in the matter of UOI & Ors. Vs Smt. Sreedevi V & Ors. [against order dated 03.07.2024 passed by the Hon’ble High Court of Kerala at Ernakulam in OP (CAT) No.49/2024] directed the petitioner, Union of India, to make the payment of the enhanced pension in terms of the impugned judgment, subject to the outcome of the present special leave petition.

(ii) Hon’ble SC vide order dated 15.01.2025 in SLP Dy No. 55819/2024 in the matter of UOI & Ors. Vs M. R. Tagore [against order dated 06.10.2023 in RA No. 2/2023 and order dated 09.02.2023 in WP C No. 25154/2019 passed by the Hon’ble High Court of Telangana at Hyderabad] held:

“the question(s) of law raised by Ms. Aishwarya Bhati, learned ASG are kept open for being considered in an appropriate case.”

5.5 DoPPW Views: The Government of India has notified “Validation of the Central Civil Services (Pension) Rules and Principles for Expenditure on Pension Liabilities from the Consolidated Fund of India” on 29.03.2025 and it is part of the Finance Act, 2025 as Part IV. The section 150 of the Validation of the Central Civil Services (Pension) Rules validates that the Central Government has the authority and will always deemed to have had the authority, to classify its pensioners, and may create or maintain distinction amongst pensioners as deemed expedient for implementing the recommendations of the Central Pay Commissions. The date of retirement of pensioners must be and would be the basis of distinctions and for classification in regard to pension entitlement.