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No.WRC/39/2/2005                                                                Dated.15th June, 2005

 CIRCULAR NO.WR-08-2005-17

             Sub:  Revision/Rationalization/Consolidation of pension/family pension of Post December, 1988 and Pre January 1997 retired Category I & II and Post July 1987 and Pre January 1997 retired Category III & IV employees of the Food Corporation of India on the IDA scales of pay consequent upon revision of the scales of pay by Food Corporation of India w.e.f. 01.01.1997.  

             Please find enclosed herewith a copy of Ministry of CAF&PD, Deptt. of Food & Public Distribution’s letter No. 38020/1/2000-FC.3 dated 31st May, 2005 on the subject mentioned above for further necessary action at your end.  
ENCL: as above.  

                                                                                                            (L.D.PAHUJA)

                                                                        ASSTT.GENERAL MANAGER(EP.I)

 Distribution:

As per list enclosed.  

                                  F.No.38020/1/2000-FC.3

                                  Government of India

                                  Ministry of Consumer Affairs, Food and Public Distribution

                                  Department of Food and Public Distribution

 

                                                                                           Krishi Bhawan, New Delhi

                                                                                           Dated the 31st May, 2005  

To  

            The Managing Director,

            Food Corporation of India ,

            16-20, Barakhamba Lane ,

            New Delhi-110001  

Sub:       Revision /Rationalisation/Consolidation of pension/family pension of Post

   December, 1988 and Pre-January 1977 retired Category I & II and

               Post July 1987 and Pre January 1977 retired Category III & IV employees of the

               Food Corporation of India on the IDA scales of pay consequent upon revision

               of  the scales of pay consequentj upon revision of the scales of pay by FCI w.e.f.     

               01.01.1997. 

Sir                  

            I am directed to refer to the letters No.WRC/39/1/2000 dated 28.7.2000 and 21.9.2000 of the Food Corporation of India on the above mentioned subject and to say that the matter has been under consideration in consultation with the Deptt. of Public Enterprises and Deptt. of  Pension and Pensioners’ Welfare.  The Deptt. of P&PW linked this issue with the general guidelines being evolved by them in consultation with the Ministry of Finance (Deptt. of Expenditure) regarding the pension and related benefits of the Industrial Dearness Allowance (IDA) retirees of the Central PSUs based on their combined service in the Government and in the PSUs.  

2.                  In the meantime, the Kerala High Court vide their judgement dated 14.3.2000 struck down instructions issued vide letters No.A.38011/10/93 dated 8.2.1996 sanctioning DR on IDA pattern to the IDA retirees of the Food Corporation of India in OP.Nos.22648 & 18128/97 and others.  The judgement was confirmed by the Division Bench of the Kerala High Court vide their judgement and order dated 1.10.2002 in the Writ Appeals field by the UOI.  The Madras High Court, on the other hand, rejected the grant of DR and CDA pattern to the IDA retirees of the Food Corporation of India vide their judgement dated 29.11.2002.  

3.                  The Union of India have consequently filed SLP Nos.10740-46 of 2003 in the Supreme Court of India against the judgement and the order dated 1.10.2002 of Kerala High Court and the decision of the Supreme Court is awaited.  Efforts are being made to get the hearing of the case expedited through the Central Agency Section of the Ministry of Law and Justice who are handing the SLPs in the Supreme Court.  

4.                  The Deptt. of P&PW have also issued general guidelines for pension and related benefits of the IDA retirees of the Central PSUs vide their O.M.No.4/14/2001-P&PW(D) dated 19.9.2003.  According to these guidelines, the IDA pay scales are required to be brought notionally to the equivalent CDA pay scales.  The pension and other related benefits will then be calculated on the notional pay in the CDA pay scales.  In addition, the IDA retirees will be entitled to DR on CDA pattern.  Subsequently, the D/P&PW advised that it would not be advisable to work out the modalities pending receipt of judgement of the Supreme Court of India as finalization of modalities when the matter including point of sanction of Dearness Relief is subjudice.      

5.                  The Ministry of Law and Justice was consulted and they advised that there may not be any legal objection in resuming payment of Dearness Relief on IDA basis which was being paid before the dispute arose.  They, however, advised against the proposal for revision of pension/family pension of the IDA retirees of the Food Corporation of India based on the revised IDA pay scale w.e.f. 01.01.1997 till the disposal of the SLP by the Supreme Court.  

6.                  Accordingly, instructions for sanction of Dearness Relief to IDA pensioners/family pensioners of the Food Corporation of India at the revised rates from 01.07.2003, 01.10.2003, 01.01.2004, 01.04.2004, 01.07.2004, 01.10.2004 and 01.01.2005 on the basis of the orders issued by the Deptt. of Public Enterprsies vide their O.Ms. dated 30.09.2003, 24.02.2004, 25.02.2004, 15.04.2004, 16.07.2004, 27.10.2004 and 27.01.2005 were issued vide this Department’s letter No.38020/1/2000-FC.3 dated 2nd November, 2004 and No.38020/01/2005-FC.3 dated 01.02.2005 and 28.02.2005.  

7.                  With reference to the erstwhile Department of Food & Civil Supplies’ letters No.A-38020/2/97 – FC.3  and A-38020/1/97 FC.3 and No.A-38020/1/97-FC.3 dated 26.2.1998, I am directed to state  the following :method of calculation/computation of pension to the IDA employees who retire on or after 01.01.97 from the Food Corporation of India in the revised IDA scales of pay has also been communicated separately vide this Department’s letter of even number dated 31st May, 2005.  It has, therefore, become necessary to revise/rationalize/consolidate pension/family pension of post December 1988 and pre January 1997 retired Category I & II and Category III & IV employees of the Food Corporation of India also.  The matter has been considered in consultation with the Integrated Finance Division of this Department, the Department of Pension and Pensioner’s Welfare and the Department of Legal Affairs and it has been decided to regulate, w.e.f. 01.01.1997, the pension/family pension of all such IDA pensioners/family pensioners in the manner indicated in the succeeding paras.  

8.                             In these orders:- 

(a)      ‘Existing Pensioners’ or ‘Existing Family Pensioner’ means a pensioner who was drawing/entitled to pension/family pension on 31.12.1996.  

(b)      ‘Existing pension’ means the basic pension, inclusive of commuted portion, if any, due on 31.12.1996.  It covers all classes of pension under the CCS(Pension) Rules, 1972 as also disability pension under the CCS(Extra Ordinary Pension) Rules.  

(c)      ‘Existing Family Pension’ means the basic family pension drawn on 31.12.1996 under the CCS(Pension) Rules, 1972.  

(d)      ‘Existing Dearness Relief’ means the ACTUAL relief due to pensioners/family pensioners upto AICP Index Average level 1708.  

9.                  The pension/family pension of existing post December 1988 and pre January 1997 Category I & II and post July, 1987 and pre-January, 1997 Category III & IV pensioners/family pensioners will be consolidated w.e.f. 01.01.97 by adding together:-  

i)                    The existing pension/family pension,  

ii)                   ACTUAL Dearness Relief due upto AICP Index Average level 1708,  

iii)                 Fitment weightage @ 20% of the existing pension/family pension.  

                        The amount so arrived at will be regarded as consolidated pension/family           pension w.e.f. 01.01.97 subject to minimum/maximum limit prescribed under the             CCS(Pension) Rules, 1972.  Since the consolidated pension will be inclusive of         commuted portion of pension, if any, the commuted pension will be deducted     from the said amount while making monthly disbursements.  

10.                   Since the consolidated pension/family pension arrived at as per paragraph          9  includes Dearness Relief upto AICP Index Average level 1708, Dearness Relief will be admissible thereon only beyond this Index Average level 1708 in             accordance with the revised scheme of Dearness Relief for which orders are being issued separately by this Department on an authorization by the Department of          Public Enterprises.  

11.                   The consolidated pension/family pension as worked out in accordance with the provisions of para 9 above shall be treated as final ‘Basic Pension’   w.e.f. 01.01.97 and shall qualify for grant of Dearness Relief sanctioned thereafter by the Deptt. of Public Enterprises or this Department on their authorization       in respect of following categories of pensioners/family pensioners:-  

i)                    Category I & II Pensioners who retired between the period  01.01.1989  and 31.12.1996 and Category III & IV pensioners who retired between the period 01.08.1988 and 31.12.1996.

ii)                   Family pensioners, who became entitled for family pension during the period from 01.01.89 to 31.12.96 (Category I & II) and 01.08.1988 to 31.12.1996 (Category III & IV) and were sanctioned family pension at the percentage prescribed in the CCS (Pension) Rules, 1972 of the last pay drawn by the deceased employees.  

                          Such payments shall, however, be subject to the outcome of the SLP   No.238244 of 2004 filed by the Department/Food Corporation of India in this regard before the Supreme Court of India.  

12.              Adjustment of Interim Relief granted w.e.f. 01.01.97:-  

                  Vide this Department’s letter No.38020/1/98-FC.3 dated 30.11.1998 IDA pensioners/family pensioners of the Food Corporation of India were granted an interim relief @ 10% of their basicpension/family pension, subject to a minimum of Rs.280/- per month, w.e.f. 01.01.1997 onwards.  This amount of interim relief was fully adjustable/subsumable against the pension/family pension that was to become due to the pensioners/family pensioners of revision of their pension/family pension w.e.f. 01.01.1997.  The amount of interim relief so granted/paid shall now be fully adjusted/subsumed against the arrears of pension/family pension when the revised pension/family pension is paid to these pensioners/family pensioners in accordance with these orders.  

Yours faithfully,    

(Suchitra Goswami)

Deputy Secretary to the Government of India

Tele: 23383108

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