Pension Litigation Case Study – Additional Pension: Policy, Legal Challenges & Interpretations

Pension Litigation Case Study – Additional Pension: Policy, Legal Challenges & Interpretations

7. Additional Pension

7.1 One of the major objectives of the Department is to ease the lives of the pensioner and in this regard, Additional Pension as provided under Rule 44 (6) of CCS Pension Rule 2021 (erstwhile Rule 49) is one where Pension of the old Pensioners increases after completion of eighty years of age. The additional pension to old pensioners/family pensioners was introduced on the recommendations of the 6thCentral Pay Commission in view of their needs, especially those relating to health, which increases with age.

7.2 Rule 44 (6) of the CCS (Pension) Rule 2021 provides that after completion of eighty years of age or above by a retired Government servant, in addition to a pension or a compassionate allowance admissible under this rule, additional pension or additional compassionate allowance shall be payable to the retired Government servant in the following manner, namely: –

(i) From 80 years to less than 85 years – 20% of basic pension/ compassionate allowance
(ii) From 85 years to less than 90 years – 30% of basic pension/ compassionate allowance
(iii) From 90 years to less than 95 years – 40% of basic pension/ compassionate allowance
(iv) From 95 years to less than 100 years – 50% of basic pension/ compassionate allowance
(v) 100 years or more – 100% of basic pension/ compassionate allowance

The additional pension or additional compassionate allowance shall be payable from the first day of the calendar month in which it falls due.

Illustration: A pensioner born on 20th August 1942 shall be eligible for additional pension at the rate of twenty percent of the basic pension with effect from 1st August, 2022. A pensioner born on 1st August 1942 shall also be eligible for additional pension at the rate of twenty percent of the basic pension with effect from 1st August, 2022.

7.3 Despite the welfare-oriented approach adopted by the Government, several petitions have been filed in various courts challenging the policy and demanding the grant of additional Pension at a reduced age i.e. on completion of 79 years of age/start of 80th year of age. The case of Umashankar Joshi vs. Union of India is one such instance. Sh. Umashankar Joshi (D.o.B 01.10.1939), retired from Ordnance factory Itarsi (MP), filed O.A. No. 200/00971/2021 before Ld. CAT Jabalpur for grant of additional 20% pension on entering the 80thyear of age i.e. 01.10.2018 instead of on completion of 80 years on 01.10.2019. The Hon’ble CAT, Jabalpur Bench vide order dated 04.01.2024 allowed the OA based on the other Judgement dated 15.3.2018 of Hon’ble Guwahati High Court in WP(C) No. 4224/2016 in Virendra Dutt Gyani vs. UOI case which relates to the retired judges of Hon’ble High Court/Supreme Court.

7.4 Misc. Petition before Hon’ble HC Jabalpur has been filed by D/o Defence Production against said Order dated 04.01.2024 of Hon’ble CAT Jabalpur. The Hon’ble HC has stayed the Ld. CAT’s order. Matter is sub-judice.

7.5 Another OA No. 1379 of 2024 has been filed before the Hon’ble CAT, Mumbai by Shri Satyendra Kumar Singh Vs. Geological Survey of India. This OA is also seeking similar relief as that of Virendra Dutt Gyani. Matter has been taken up with M/o Mines and they have been provided a brief in the matter with interpretation of concerned CCS (Pension) Rules 2021. The matter is pending.

7.6 The Judgement dated 15.3.2018 of Hon’ble Guwahati High Court in WP(C) No. 4224/2016 in V.D. Gyani (a retired High Court Judge) vs. UOI (Ministry of Law & Justice) case, was an interpretation of the High Court Judges (Salaries and Conditions of Service) Act, 1954. The service conditions of the High Court/Supreme Court Judges are regulated by an Act of Parliament. This judgement is at variance to the orders/rules issued by the Government of India regarding additional pension under CCS (Pension) Rules 1972/2021.

7.7 In similar cases for additional pension on entering the 80th year of age, some other judgements of Hon’ble Karnataka High Court are there which contradict the above judgements. In its Order dated 16.12.2015 in Writ Appeal No. 100481/2015 (Commissioner, Hubballi-Dharwad Municipal Corporation vs. SV Budanhalli), Hon’bleHigh Court of Karnataka set aside an earlier order dated 27.4.2015 by the Single Judge and observed that attaining the age of 80 years means completion of age of 80 years. In another judgement dated 30.10.2019 (which is later than the order dated 15.3.2018 of Hon’ble Guwahati High Court) in WA No. 2487/2012 (Principal AG, Karnataka vs RG Desai), Hon’ble High Court of Karnataka observed that additional pension shall be admissible only on attaining/completion of the age of 80 years.

7.8 The policy under Rule 44(6) of CCS (pension) Rules 2021 clearly provides that the additional pension/family pension @20% of basic pension/family pension shall be admissible on completion of the age of 80 years and not on entering 80th year of age. In the service rules applicable to the Government servants, the phrase “attaining the age of” means ‘completion of certain age’. For example, as per FR 56, a Government servant is to retire on attaining the age of 60 years and accordingly, Government servants retire after completion of the age of 60 years.

7.9 There is, therefore, no scope for any other interpretation of these instructions/rules.