No.

3/23/09-3FPPC/ 885
GOVERNMENT OF PUNJAB
DEPARTMENT OF FINANCE
(FINANCE PENSION POLICY AND COORDINATION BRANCH)

Dated Chandigarh, the 17-8-2009

To
All Heads of Departments
Commissioners of Divisions
Registrar, Punjab and Haryana High Court,
District and Session Judges and
All Deputy Commissioners in the State.

Subject: - Implementation of the recommendations of the Fifth Punjab Pay

Commission - Revision of Pension of pre 01-01-2006
pensioners/family pensioners / recipients of extra ordinary pension
etc.

Sir/Madam,
I am directed to invite a reference to the subject cited above and to say
that after careful consideration of the recommendations of the Fifth Punjab Pay
Commission in respect of pensionary benefits to pre 01-01-2006 pensioners, the
Governor of Punjab is pleased to rationalize the pension of pre 01-01-2006 pensioners,
family pensioners and recipients of extra ordinary pension as indicated in the
succeeding paragraphs, with effect from 01-01-2006.
2. These orders will apply to pensioners/family pensioners/ recipients of
extra ordinary pension who were drawing pension/family pension on 01-01-2006,
including those who became entitled to pension / family pension w.e.f. 01-01-2006
under the Punjab Civil Services Rules Vol-II as amended from time to time.
3. In these orders:-

(a) Existing Pensioner/family Pensioner means a pensioner who was

obtaining /entitled to pension/family pension on the Ist January, 2006
consequent to retirement/death as Govt. Employee on or before, 31st
December, 2005 in terms of the provisions of Punjab Civil Service Rules
Vol. I1 as amended from time to time.

(b) Existing Pension/family pension means the basic pension (inclusive of

commuted portion, if any), due on 31-12-2005 and includes extra
ordinary pension.

4.1 The pension/family pension of existing pre 01-01-2006

pensioners/family pensioners will be consolidated w.e.f. 01-01-2006 by
adding together: -.

I. Existing pension/family pension.

II Dearness Pension, where applicable.
III Dearness Relief up to AICP (IW) average index 536 (Base Year
1982=100) i.e. @ 24% of Basic Pension/ Family Pension plus Dearness
Pension as admissible.
IV. Fitment weightage @ 40% of the existing pension / family pension.
 Where the existing pension in (I) above includes the effect of merger of
50% of dearness relief w.e.f. 01-04-2004, the existing pension for the
purpose of fitment weightage will be recalculated after excluding the
merged dearness relief of 50% from the pension.
The amount so arrived at will be regarded as consolidated pension /
family pension w.e.f. 01-01-2006 and will be noted as basic pension for
the purpose of grant of Dearness Relief from 01-01-2006.

4.2 "The fixation of Pension will be subject to the provision that the revised
pension, in no case, shall be lower than fifty percent of the minimum of
the pay in the pay band plus the grade pay corresponding to the pre-
revised pay scale from which the pensioner had retired. This will be
reduced pro-rata if the qualifying service of the person falls short of 33
years.

4.3 Since the consolidated pension will be inclusive of commuted portion of

pension, if any, the commuted portion will be deducted from the said
amount while making monthly disbursement.

5. In addition to above provisions, the quantum of pension available to the

old pensioners/family pensioners shall be increased as follows: -

Age of pensioner/family Additional quantum of pension/family

pensioner pension
From 65 years to less than 75 5 percent of revised basic pension/family
years pension
From 75 years to less than 80 10 percent of revised basic pension/
years family pension
From 80 years to less than 85 20 percent of revised basic pension/
years family pension
From 85 years to less than 90 30 percent of revised basic pension/
years family pension
From 90 years to less than 95 40 percent of revised basic pension/
years family pension
From 95 years to less than 100 50 percent of revised basic pension/
years family pension
100 years or more 100 percent of revised basic
pension/family pension

Note:-(i) The Additional quantum of pension/family pension on attaining the age of

65 years and above would be admissible from the first day of the month
in which his date of birth falls. For example, if
a pensioner/family pensioner completes the age of 80 years in the month
of August, 2008 he will be entitled to additional pension/family pension
with effect from Ist August,2008. Those pensioners/family pensioners
whose date of birth is Ist August, will also be entitled to additional
pension/family pension with effect from Ist August, 2008 on attaining
the age of 80 years and above. Dearness relief shall also be admissible on
the additional quantum of pension available to the old pensioners and
family pensioners in accordance with the orders issued from time to
time.
(ii) Proposed increase in old age allowance on attaining the age of
80 years and above shall take effect from the date of issue of
these orders.
(iii) The Accountant General (A&E) Punjab shall ensure that the date of birth
and the age of the pensioners/family pensioners is invariably indicated in
the PEN-I and the Pension Payment Order to facilitate payment of
additional pension/family pension by the Pension Disbursing Authority
 as soon as it becomes due. The amount of additional pension/family
pension will be shown distinctly in the Pension Payment Order. For
example, in case where a pensioner is more than 65 years of age and his
pension is Rs. 10,000 PM, the pension will be shown as (i) Basic
Pension = Rs. 10,000 and (ii) Additional Pension = Rs. 500 per month.
The pension on his attaining the age of 75 will be shown as (i) Basic
Pension = Rs. 10,000 and (ii) Additional Pension = Rs. 1000 per month.

6 The existing provisions relating to Travel Concession shall continue to be

in force.

7 The pension / family pension as consolidated shall be subject to a

minimum of Rs. 3500/- PM w.e.f. 01-01-2006.

8. Since the consolidated pension/family pension arrived at as per Para 4.1

& 7 includes dearness relief up to average index level 536 (base year
1982=100) dearness relief will be admissible thereon only beyond index
average 536 (base year 1982=100) in accordance with the revised
scheme of dearness relief. The six instalments of dearness relief
sanctioned after 1.1.2006 i.e. w.e.f.
1.7.2006,1.1.2007,1.7.2007,1.1.2008,1.7.2008 and 1.1.2009 shall be
adjusted against revised dearness relief becoming due on pension/family
pension as worked out on 1st January, 2006.

9. (1) Where the consolidated pension/family pension in terms of Para 4.1

above works out to an amount less than Rs.3500/- the same shall be
brought to Rs. 3500/- . This will be regarded as pension/ family pension
with effect from Ist January 2006.

(2) In case a person is in receipt of pension as well as family pension, the

floor ceiling of Rs.3500/- shall apply individually to such pension and
family pension.

(3) The employed/re-employed pensioners/family pensioners are not

getting dearness relief on pension at present. In their case the notional
dearness relief which would have been admissible to them but for their
employment/re-employment will be taken into account for consolidation
of their pension in terms of paragraph 4.1 above as if they were drawing
the dearness relief. Their pension will be refixed w.e.f.1.1.2006 with
reference to consolidated pension becoming admissible to them.
Dearness relief beyond 1.1.2006 will, however, not be admissible to
them during the period of employment/re-employment.

10. The cases of Punjab Govt. employees who have been permanently
absorbed in public sector undertaking/autonomous bodies will be
regulated as follows:-

(a) Pension

Where the Government employees on permanent absorption in public

sector undertakings/autonomous bodies continue to draw pension
separately from the Government, the pension of such absorbers will be
updated in terms of these orders. In cases where the Government
employees have drawn lump-sum terminal benefits equal to 100% of
their pension and have become entitled to the restoration of one third
commuted portion of pension as per Supreme Court Judgement dated
15.12.1995, their cases will not be covered by these orders.
 (b) Family Pension.

In cases where, on permanent absorption in public sector undertaking,

autonomous bodies, the terms of absorption permit grant of family
pension under the Punjab Civil Services Rules Vol.II, the family pension
being drawn by family pensioners will be updated in accordance with
these orders.

11. All Pension Disbursing Authorities handling disbursement of pension to

the Punjab Government pensioners/family pensioners are hereby
authorised to pay pension /family pension to the existing
pensioners/family pensioners are hereby authorised to pay
pension/family pension to the existing pensioners/family pensioners at
the consolidated rate in

terms of para 4.1, 5 & 7 above without any further authorisation from the
Accountant General (A&E) Punjab/Head of Office etc. However, before
disbursement of the pension, the Pension Disbursing Authority shall
authenticate that the fixation made is strictly in accordance with the
provision of these orders . For this purpose a table indicating the existing
basic pension/family pension without dearness pension and the revised
consolidated pension/family pension is available at Annexure I. This
table may be used where the pensioner is in receipt of the single pension
only. Where a pensioner is in receipt of more than one pension,
consolidation may be done separately in terms of para 4.1 & 7 and floor
ceiling of Rs. 3500/- may be applied to total pension from all sources
taken together except the cases falling in para 9.2 . A suitable entry
regarding the revised consolidated pension shall be recorded by the
Pension Disbursing Authorities in both halves of the pension payment
order. An intimation regarding disbursement of revised pension may be
sent by the Pension disbursing Authority to the Accountant General
(A&E) Punjab and concerned Treasury Officer/Assistant Treasury
Officer in Annexure II.

12. It is not unlikely that the arrears due in some cases may be calculated
incorrectly leading to over payment that might have to be recovered
subsequently. The Pension Disbursing Authorities should, therefore
make it clear to the pensioners/family pensioners while drawing arrears
that the payments are being made subject to adjustments from amounts
that may be due to them, if any , discrepancy is noticed later. For this
purpose an undertaking should also be obtained in writing from every
pensioner/family pensioner at the time of drawl of arrears of
pension/family pension to the effect that excess payment that may be
found to have been made as a result of incorrect consolidation of
pension/family pension, the said amount will be refunded by him to the
Government either by adjustment against future payment or otherwise. A
specimen from the undertaking is also enclosed as Annexure III.

13. In respect of matters not provided in the above orders, the existing
rules/ instructions on the subject shall continue to be in force. The
Punjab Civil Services (Revised Pay) Rules, 2009 shall also apply,
wherever required in the context of above orders. The
7. The Zonal Manager, Bank of India 181-82, Sector 17, Chandigarh;(100
copies)
8. Punjab National Bank, Feroze Gandhi Market, Ludhiana.;(20 copies)
9. Regional Manager, Punjab National Bank, Regional Office, Zila Parishad
Building, Ferozepur.;(50 copies)
10. Regional Manager, Punjab National Bank, Regional Office, Neeland Road,
Amritsar;(50 copes)
11. Regional Manager, Punjab National Bank, Regional Office Feroze Gandhi
Market, Pakhowal Road, Ludhiana ;(50 copies)
12. Regional Manager, Punjab National Bank, Regional Office, Civil Lines,
Jalandhar (50 copies)
13. Regional Manager, Punjab National Bank, Regional Office, Jalandhar Road,
Hoshiarpur ;(50 copies)
14. Regional Manager, Punjab National Bank, Kapurthala;(50 copies)
15. Zonal Office, Punjab National Bank, Sector 17, Chandigarh ;(50 copies)
16. Manager, State Bank of India, Banking operations department, Local Head
office, Sector-17, Chandigarh;(200 copies)
17. Zonal Manager, United Commercial Bank, Zonal Office, SCO no. 1092-93,
Sector-22 C, Chandigarh;(50 copies)
18. Divisional Manager, United Commercial Bank, Divisional Bank, 1st floor,
Bank Square, Sector 17, Chandigarh;(50 copies)
19. Divisional Manager, United Commercial Bank Bldg., 3rd floor, Sector-17,
Chandigarh ;(50 copies)
20. Divisional Manager, United Commercial Bank, MC Chowk, Jalandhar ;(50
copies)
21. Regional Manager, PNB, Dharamshala, HP; Regional Manager, Punjab
National Bank, Regional Office, Karnal, HARYANA;(50 copies)
22. Regional Manager, Oriental Bank of Commerce, Sector – 17, CHD. (30
copies)
23. The Secretary, Punjab State Electricity Board, The Mall, Patiala;(10 copies)
24. President, Punjab Government Pensioners Association (Regd.) Ferozepur(10
copies)
25. Examiner, Local Fund Accounts, Punjab, Chandigarh ;(5 copies),
26. Regional Manager, Oriental Bank of Commerce, The Main Road,
Jalandhar;(10 copies)
27. Regional Manager, Punjab & Sind Bank, Sector-17, Chandigarh ; (15
copies)
28. Manager, Indian Overseas Bank, Regional office, 550/1, College Road,
Fountain Chowk, Civil Line Ludhiana (10 copies)
29. .Manager, Central Bank of India, Sector-17, Chandigarh ;(25 copies)
30. Regional Manager, Indian Bank, SCO-189-192, Sector-7 C, Chandigarh ;(50
copies)
31. Registrar ,Guru Nanak Dev University Amritsar.
32. Registrar ,Punjab University, Chandigarh,
 Annexure -1 nB?e;uo 1

Basic Pension Basic Pension Revised Consolidated

(Pre-2006) (Pre-2006) with Pension
without D.P. D.P. fotkJhiav ez;'bhv/fNv g?BÙB
p/f;e g?BÙB p/f;e g?BÙB 2006
2006 s'A gfjbK s'A gfjbk ;w/s
fpBK vhHghH d/ vhHgh
1260 1890 3500
1261 1892 3500
1262 1893 3500
1263 1895 3500
1264 1896 3500
1265 1898 3500
1266 1899 3500
1267 1901 3500
1268 1902 3500
1269 1904 3500
1270 1905 3500
1271 1907 3500
1272 1908 3500
1273 1910 3500
1274 1911 3500
 Annexure-II

FORM OF INTIMATION BY THE PENSION DISBURSING AUTHORITY TO THE

ACCOUNTANT GENERAL (A&E) PUNJAB AND HEAD OF OFFICE
REGARDING CONSOLIDATION OF PENSION IN TERM OF GOVERNMENT OF
PUNJAB FINANCE DEPARTMENT LETTER No. DATED
1. Name of the pensioners/family pensioners

2. PPO No.

3. Date of retirement/Death
(in case of family pension)
4. Savings Bank A/c No.

5. Name of Bank/Paying Branch.

6. Bank Code No.

7. Computation of consolidated pension/family pension

Pension Family Pension

a. The existing pension/family pension

b. Dearness Pension.where applicable.
c. Dearness relief @ 74% of basic pension
/family pension plus dearness pension

d. Fitment weightage @ 40% of the

existing pension/family pension

e. The amount so arrived at will be

regarded as consolidated pension/
family pension with effect from
1.1.2006

Note:- Where the existing pension in (i) above includes the effect of
merger of 50% of dearness relief with effect from 1.4.2004, the existing
pension for the purpose of fitment weightage will be re-calculated after
excluding the merged dearness relief of 50% from the pension.
8. Where consolidated pension/family pension is final or allowed as
immediate relief

9. Remarks if any.

SIGNATURE OF PENSION
DISBURSING AUTHORITY

To
1. The Accountant General(A&E),Punjab,Chandigarh.
2. Concerned Treasury Officer/Assistant Treasury Officer.
 ANNEXURE III
UNDERTAKING

I hereby undertake that any excess payment that may be found to have
been made as a result of incorrect fixation of pension or any excess payment detected
in the light of discrepancies noticed subsequently will be refunded by me to the
Government either by adjustment against future payments due to me or from arrears or
otherwise.

Signature
Dated: Name
Place Address