Notification of Pension Increase 2011 by finance division on July 4, 2011:
12. Revision of Pension:
All the existing Civil Pensioners of the Federal Government including Civilians paid out of Defence Estimates have been allowed an increase in their pension at the following rates with effect from 1st July, 2011, until further orders:-
i. Pensioners who retired on or after 01.07.2002 @ 15% of the net pension, ii. Pensioners who retired on or before 30.06.2002 @ 20% of net pension.
13. On introduction of the Basic Pay Scales-2011, the increases in pension allowed vide para-3 of the Finance Division Office Memorandum No. F.4 (1) Rcg-6/ 2010/ 721 dated 05.07.2010 shall be discontinued to the new pensioners who would retire on or after 01.07.2011 who opts to draw pension under the Scheme of Basic Pay ScaIes-2011.
14. However, 15% increases in pension allowed vide para-2 of the Finance Division Office Memorandum No.F.4 (!) Reg-6/ 2010/721 dated 05.07.2010 shall continue to be admissible to the new pensioners who would retire on or after 01.07.2011 who opts to draw pension under the Scheme of Basic Pay ScaIes-2011.
- The 15% increase in pension as mentioned at Paras-12 (i) above shall also be admissible to the pensioners who would retire on or after 01.07.2011.
- For the purpose of admissibility of increase in pension for the Civil Pensioners sanctioned in this Office Memorandum the term “Net Pension” means “Pension being drawn” minus “Medical Allowance”, which shall be continued to be admissible at the level of its admissibility as on 30.06.2011.
- The increase shall also be admissible on family pension granted under the Pension-cum-Gratuity Scheme, 1954, Liberalized Pension Rules, 1977, on pension sanctioned under the Central Civil Services (Extra Ordinary Pension) Rules as well as on the Compassionate Allowance under CSR-353.
- If the gross pension sanctioned by the Federal Government is shared with any Government in accordance with the rules laid down in part-IV of Appendix III to the Accounts Code, Volume-1, the amount of the increase in pension shall be apportioned between the Federal Government and the other Government concerned on proportionate basis.
19. The increase in pension sanctioned in this Office Memorandum shall not be admissible on Special Additional Pension allowed in lieu of pre-retirement Orderly Allowance.
- The increase in pension shall not be admissible during the period of their reemployment, but the same shall be allowed after the termination of the re-employment contract. However, the increase in pension admissible to the pensioners of the Federal Government before their re-employment on contract basis shall continue to be admissible to them provided that they are not in receipt of any increases allowed as allowances with their pay in lieu of increases in pension.
- The benefit of increase in pension sanctioned in this Office Memorandum shall also be admissible to those Civil Pensioners of the Federal Government who are residing abroad (other than those residing in India and Bangladesh) who retired on or after 15.08.1947 and are not entitled to, or are not in receipt of pension increase under the British Government’s Pension (increase) Acts. The payment shall be made at the applicable rate of exchange.
3. Medical Allowance for the Pensioners:
i. Medical Allowance admissible to the existing retired Civil Servants in BPS-1 to BPS-15 and in BPS-16 to BPS-22 @ 25% and @20% of the net pension respectively shall continue to be admissible at the frozen level of its admissibility as on 30.06.2011 and till further orders.
ii. All the Civil Servants in BPS-1 to BPS-15 and in BPS-16 to BPS-22, who shall retire on or after 01.07.2011 onwards, shall be allowed Medical Allowance @ 25% and @20% of the net pension respectively and shall stand frozen at the same level.