Payment of difference of Gratuity to pre-1996 Central Government Pensioners - clarification regarding

Payment of difference of Gratuity to pre-1996 Central Government Pensioners - clarification regarding.
By Badrinath Vasandi

No. 38/42/2005-P&PW (F)

Government of India

Ministry of Personnel, PG & Pensions

Department of Pension & Pensioners' Welfare

3rd Floor, Loknayak Bhawan

New Delhi-110003

Dated 17th February 2005

OFFICE MEMORANDUM

Subject: Payment of difference of Gratuity to pre-1996 Central

Government Pensioners - clarification regarding.

The undersigned is directed to say that a number of representations have been

received seeking confirmation whether in pursuance of Supreme Court

=Judgement, vide this Department's OM No. 45/86/97-P&PW (A) Pt. I dated

04.12.2004; pre-1996 pensioners have been made eligible for receiving

additional gratuity. They have asked the concerned pensioners to apply to their

perspective Departments by furnishing details of PPO number, date of

retirement, rank details etc. It also contains a portion of the OM purported to

have been issued by this department but does not indicate the name of Officer

under whose signature it has been issued.

2.In view of the above, the factual position in the matter is as under:

(i)This Department has not issued any OM on 4.12.2004 granting additional

gratuity to pre-1996 pensioners as there is no such Supreme Court judgement

in that respect; and

(ii) The extracts of OM reproduced by them purported to have been issued

on =.12.2004 is in fact a portion of this Department's OM dated 4.12.2001

bringing out certain modifications to OM dated27.10.1997. In that OM, the

Government consequent upon acceptance of =he 5thPay Commission

recommendations, inter-alia, prescribed that 100% of DA be added to the=ay

and on this the retirement/death gratuity be calculated. This was made

effective from 1.1.1996. It did not change any provisions regarding percentage

on DA for those who retired before 1.1.1996. Vide OM dated 4.12.2001 the

Government clarified that the addition to DA for calculation of gratuity would be

applicable for calculation of all types of gratuities like death/ retirement/

service gratuity. In this OM also there is no change in other provisions of OM

dated 27.10.1997 including the cut-off date of1.1.1996. This was further

clarified vide para (ii) of OM dated 18.2.2003. Hence, prior to =.1.1996, only

basic pay was reckoned as emoluments for computation of gratuity. =t has not

been agreed to extend the benefits to retirees prior to 1.1.1996 as =or grant of

any benefit, prescription of a cut-off-date is essential keeping in view various

constraints including financial constraints.

( M.P. Singh )

Director (PP)

2

Tel. 24624802

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