FINANCE (PAY CELL) DEPARTMENT G.O. Ms. No. 235, DATED: 1 st JUNE, 2009 (Vaikasi 18, Thiruvalluvar Aandu 2040)

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1 1 GOVERNMENT OF TAMIL NADU 2009 MANUSCRIPT SERIES FINANCE (PAY CELL) DEPARTMENT G.O. Ms. No. 235, DATED: 1 st JUNE, 2009 (Vaikasi 18, Thiruvalluvar Aandu 2040) PENSION Official Committee on pay revision Recommendation on revision of pension and pensionary benefits Orders Issued. Read: 1. G.O.Ms.No.358, Finance (Pay Cell) Department, dated: G.O.Ms.No.496, Finance (Pay Cell) Department, dated: G.O.Ms.No.11, Finance (Pay Cell) Department, dated: G.O.Ms.No.72, Finance (Pay Cell) Department, dated: ORDER: The Official Committee on pay revision inter-alia has made recommendations regarding revision of pension / family pension and pensionary benefits. 2. The Government has carefully examined the recommendations of the Official Committee and pass the following orders:- (i) (ii) All the existing pensioners who retired from posts on standard pay scales and family pensioners shall be allowed increase in pension at of basic pension; The / Family of the existing pre-2006 ers/ Family ers shall be computed by adding the following:-- (a) The existing (before commutation) / Family ; (b) Dearness, wherever applicable; (c) Dearness Allowance 1 st January % on Basic / Basic Family plus dearness pension as admissible. (d) Fitment of the existing Basic (before commutation) / Basic Family. The amount so arrived at shall be the Consolidated / Family with effect from The Consolidated / Family shall be treated as final Basic with effect from and shall be entitled for grant of Dearness Allowance sanctioned thereafter.

2 2 (iii) (iv) (v) (vi) (vii) (viii) The revised pension / family pension arrived at as above shall be subject to a minimum pension / family pension of Rs.3050/- per month. The commuted portion, if any, should be deducted from the revised pension. A table indicating revised pension / family pension under these orders from 1 st January 2006 is given in Annexure-V. The upper ceiling on pension shall be 50% of the highest pay in the State Government. (The maximum highest pay in the State Government is Rs Grade Pay of Rs.10000/-). The fixation of pension shall be subject to the provision that the revised pension in no case shall be lower than fifty per cent of the minimum of the pay in the pay band plus grade pay corresponding to the pre-revised pay scale from which the pensioner had retired. In the case of ers / Family ers for whom pension / family pension has to be revised beneficial to them at 50% / 30% of the minimum of the Pay + Grade Pay applicable to the post , such of the ers / Family ers shall apply to the sanctioning authorities through the department they last served in the prescribed form appended to this order. The authorities concerned shall revise both the and Family of the existing pensioners. The calculation of family pension at 30% of pay last drawn shall be followed as hitherto subject to a minimum family pension of Rs.3050/- and the maximum family pension at 30% of the maximum of the highest pay scale in the State Government (i.e) Rs Grade Pay of Rs.10000/-. The existing formula of granting enhanced family pension at fifty per cent of pay last drawn in the event of death while in service shall be continued. ers and Family ers shall be allowed dearness allowance on revised pension / family pension as allowed to Central Government ers and Family ers. The new rates of dearness allowance admissible on the revised pension / family pension shall be: (i) With effect from 1 st July 2006 : 2% (ii) With effect from 1 st January 2007 : 6% (iii) With effect from 1 st July 2007 : 9% (iv) With effect from 1 st January 2008 : 12% (v) With effect from 1 st July 2008 : 16% (vi) With effect from 1 st January 2009 : 22% (ix) The maximum quantum of Gratuity / Death cum -Retirement Gratuity shall be enhanced from Rs.3.50 lakhs to Rs lakhs. 3. The Government direct that the above benefits be granted with notional effect from 1 st January 2006 and with monetary benefit from 1 st January 2007.

3 3 4. The Government also direct that the existing quantum of Medical Allowance to the ers / Family ers be doubled from Rs.50/- to Rs.100/- per month with effect from Commutation of pension shall be permitted upto the existing rate of 33 1/3% of basic pension. These benefits shall also be applicable to employees retiring from service on or after 1 st June, For calculating commuted value of pension the revised commutation table given in Annexure-I shall be followed. 6. pensioners on whose pension is enhanced based on these orders are not entitled to commute one third of the increase in pension. Only retirees who retired after whose pay is revised due to revision of pay scale with effect from alone are entitled for commutation based on the revised pension. 7. In the Government Order third read above, orders were issued granting Interim Arrears to the ers / Family ers at the rate of three months + Dearness + Dearness Allowance pending implementation of the recommendations of the Official Committee. The Government direct that the arrears due to the pensioners / family pensioners be calculated for the period from to after adjusting the interim arrears already paid and the net balance arrear amount due shall be paid in cash in three equal annual instalments i.e. first instalment during , second instalment during and third and final instalment in The arrears in respect of employees retired on or after who derive fixation of pay and consequential revision of pay, pension and pensionary benefits upto shall also be regulated as detailed above. Illustrations are given in Annexure-II indicating the method of arriving at the arrears and the amount to be paid to ers / Family ers. 8. These orders shall apply to the following categories of pensioners:- (i) (ii) Government pensioners, teacher pensioners of aided institutions and local bodies; Former Travancore-Cochin State ers drawing pension on 1 st November 1956, in the treasuries situated in the areas transferred to Tamil Nadu State on that date i.e. Kanyakumari District and Shencottah Taluk of Tirunelveli District; (iii) ers drawing their pension on 1 st April 1960 in the Tiruttani Sub-Treasury in whose cases pensions were sanctioned by the Composite Madras State prior to 1 st October 1953 or by the Andhra Pradesh State prior to 1 st April 1960; (iv) (v) ers of the Ex-Governor s Bank Establishment in receipt of Mustering out pension; ers who are in receipt of special pensions under Extraordinary Rules, Madras and Compassionate Allowance;

4 4 (vi) (vii) Ex-Pudukottai ers; and Teachers rendered surplus and whose services were terminated in the transferred areas of Kanyakumari District and Shencottah Taluk of Tirunelveli District. 9. In the case of ers / Family ers specified in para 2(vi) above, they shall apply to the authority who is competent to process and forward pension proposals to the Accountant General, Tamil Nadu in the prescribed form (Appended to these orders). In respect of Family ers, even if they are unable to furnish all the particulars in the application form, the sanctioning authorities should accept such applications and process with available data. On receipt of application, in triplicate the above competent authority shall verify the net qualifying service already certified and communicated by the Accountant General, Tamil Nadu at the time of initial sanction of pension. He shall fix the revised pension admissible with reference to the post held, minimum of the scale of pay and net qualifying service in the application form itself. He shall communicate a copy of the statement duly approved to the Pay Office / Treasury Office / Sub-Treasury Office concerned with a copy to the pensioner / family pensioner. The Pay Officer/ Treasury Officer / Sub-Treasury Officer shall verify the correctness of the revised pension and make payment as specified in paragraph-2(vi) above after making necessary entries in records maintained in his office. In respect of pensioners drawing pension under Public Sector Bank Scheme, the concerned Bank shall pay the revised pension as specified in paragraph-2(vi) above based on the applications received from the departmental authorities. A ready reckoner for calculation of / Family with reference to the minimum of the revised pay scale + Grade Pay is given in Annexure-IV. 10. In respect of employees whose posts were abolished and not in existence now and the concerned pensioners / family pensioners who have requested to fix their / Family at the rate of 50% / 30% of the minimum of the revised Pay Band + Grade Pay, in such cases the concerned authority shall address Finance (Pay Cell) Department directly and obtain the appropriate revised pay scale admissible to that post(s) notionally with effect from Regulation of Arrears in the case of employees retired between to For sanctioning Interim Arrears to both serving / retired employees, the crucial date of was taken into account to decide the quantum of Interim Arrears and as well as for classification of employees viz. serving employee / pensioner. In the case of employees retired during the intervening period from to , they were treated as pensioners on the crucial date of and sanctioned three months Interim Arrears with reference to their Basic / Dearness / Dearness Allowance As major portion is covered by service period, the arrear amount computed on Pay Revision will be more compared to the pension revision arrears computed from to Wherever the Interim Arrears on pension could not be adjusted against pension arrears accrued from , the Pay Officer/ Treasury Officer / Sub-Treasury Officer shall wait till the revision of pension of the

5 5 pensioner concerned based on the revised pay scales and take appropriate action thereafter for adjustment of Interim Arrears. 12. The Pay Officer / Treasury Officers / Sub-Treasury Officers shall work out the revised pension / family pension and disburse the arrear amount to the ers / Family ers as specified in paragraph 7 above and the copy of the above shall be marked to the Principal Accountant General who will in turn take follow up action and verification in this regard. 13. In respect of ers drawing pension under Public Sector Bank Scheme, the Commercial Banks shall work out the revised pension and disburse the arrear amount as specified in paragraph 7 above. 14. The increased expenditure on account of these orders is allocable among the successor States as per the provisions laid down under the State Re-organisation Act, (BY ORDER OF THE GOVERNOR) K. GNANADESIKAN, PRINCIPAL SECRETARY TO GOVERNMENT. To All Secretaries to Government. The Secretary, Legislative Assembly, Secretariat, Chennai The Comptroller, Governors Household, Raj Bhavan, Chennai-32. The Secretary to the Governor, Chennai--32. The Governor's Secretariat, Raj Bhavan, Guindy, Chennai All Departments of Secretariat (OP / Bills), Chennai All Heads of Departments. All Collectors / All District Judges / All Chief Judicial Magistrates. The Accountant General (Accounts & Entitlements), Chennai (By name). The Accountant General (Accounts & Entitlements) Chennai The Principal Accountant General (Audit.I), Chennai (By name). The Principal Accountant General (Audit.I), Chennai The Accountant General (Audit.II), Chennai (By name). The Accountant General (Audit.II), Chennai The Accountant General (CAB), Chennai / Madurai. The Registrar General, High Court, Chennai The Chairman, Tamil Nadu Public Service Commission, Chennai The Registrar of All Universities in Tamil Nadu. The Director of Local Fund Audit, Chennai 108. The Commissioner of Tribunal for Disciplinary Proceedings, No.6, Manickeswari Road, Chennai-10. The Director of Treasuries and Accounts, Chennai-15. The Director of, DMS. Complex, Chennai The Pay Officer, Chennai The Pay and Accounts Officer, Secretariat, Chennai-9. The Pay and Accounts Officer,(North / South / East) Chennai- 1 / 35 / 5. The Pay and Accounts Officer, Madurai All Treasury Officers / Sub-Treasury Officers. The Commissioner, Corporation of Chennai / Madurai / Coimbatore /Tiruchirapalli / Salem / Tirunelveli, Tuticorin, Vellore, Tirupur, Erode. All Divisional Development Officers / Revenue Divisional Officers/ Tahsildars.

6 All Block Development Officers / Municipal Commissioners. All Chief Educational Officers / Panchayat Union Commissioners. The Project Co-ordinator, Tamil Nadu Integrated Nutrition Project, No.570, Anna Salai, Chennai-18. Copy to: The Secretary to Hon ble Chief Minister, Chennai 9. The Secretary to Hon ble Deputy Chief Minister, Chennai-9. The Senior Personal Assistant to Hon ble Minister, Finance, Chennai-9 The Private Secretary to Chief Secretary to Government, Chennai-9. The Private Secretary to Principal Secretary to Government, Finance Department, Chennai-9, Finance () Department, Chennai The Reserve Bank of India, Chennai 1. The Reserve Bank of India, Department of Government and Bank Accounts, Mumbai (75 copies). All Heads of Offices / Regional Offices of Public Sector Banks through Director of, Chennai The President, Tamil Nadu Retired Officials Association, DPI. Complex, Chennai-6. The President, Tamil Nadu Secretariat Retired Officers Association, No.70, Medavakkam Tank Road, Kilpauk, Chennai 10. The President, All India Federation of ers Association, No.22, Kavarai Street, Saidapet west, Chennai 15. The President, The Retired Teachers Association, No.12, Abayambalpuram, Mayiladuthurai, Nagapattinam District. The State President, All Bharath Confederation of Senior Citizens and ers, No.7, Bharathidasan Street, Avinasi- 54, Coimbatore District. The President, Government TANSI Retired Employees Association, Plot No.65, Thamarai Salai, Iyappa Nagar, Pammal, Chennai 75. The President, The Indian Officers Association, No.35, T.V.K. High Road, Royapettah High Road, Chennai-14. The President, Tamil Nadu Senior Citizens and Welfare Association, No.38-B, First Main Road, Perumalpuram, Tirunelveli. The President, Retired Officials Association, No.158, Bells Road, Chennai-5. Stock File/Spare Copies. 6 //FORWARDED BY ORDER// SECTION OFFICER.

7 7 To FORM OF APPLICATION (Please see para 2(vi) of the order) Sir, Sub : Application for revision of / Family with effect from Orders Issued Kindly revise my / Family in terms of para-2(vi) of G.O.Ms.No. 235, Finance (PC) Department, dated: Requisite particulars are given below: 1. Name of the applicant (in BLOCK LETTERS) 2. Name of the pensioner / deceased Government employee (pensioner) in case of family pensioner / relationship. 3. Postal Address (in BLOCK LETTERS) (duly furnishing the District) 4. Designation / Office / Department from which retired 5. Date of retirement / Date of death of Government employee in the case of family pensioner. 6. The scale of pay of the post last held and the last pay drawn. 7. Date from which pension / family pension is being drawn. 8. Payment Order No. (ers getting pension outside the State shall give their respective No.) 9. Basic ( if available) : : : : : : : : : : : : : : : : : : : : : : : :

8 8 10. Amount of pension commuted, (if any) 11. Name of Treasury/Sub-Treasury / Pay Office, Chennai. 12. Name of the Bank with Account No. where the pension is drawn. 13. Documentary evidence, if any in support of the claim. : : : : : : : : Date : Signature of er/ Family er. (To be filled by the Sanctioning Authority and sent to the Treasury concerned) Particulars verified Net qualifying service : scale of pay : Amount of revised pension authorised with effect from Amount of revised family pension authorised with effect from : : : : : : : : : Signature of the sanctioning authority. Name, Designation and Office Seal.

9 9 Age next birthday ANNEXURE I Commutation Table COMMUTATION VALUE FOR A PENSION OF Rs.1/- PER ANNUM Commutation value expressed as number of year s purchase Age next birthday Commutation value expressed as number of year s purchase Age next birthday Commutation value expressed as number of year s purchase (Basis: LIC (94-96) Ultimate Tables and 8.00 % interest)

10 10 ANNEXURE-II ILLUSTRATION - I A pensioner is drawing a pension of Rs.1300/ His revised pension shall be Rs.3050/- per month. Arrears for the period from to to the above pensioner shall be calculated as follows: to Due Rs. Drawn Rs. Difference Rs. Arrears Rs. 3,050 1,300 Dearness 650 Dearness 6% 183 (35%) 683 Total 3,233 2, x 6 3, to Due Rs. Drawn Rs. Difference Rs. Arrears Rs. 3,050 1,300 Dearness 650 Dearness 9% 275 (41%) 800 Total 3,325 2, x 6 3, to Due Rs. Drawn Rs. Difference Rs. Arrears Rs. 3,050 1,300 Dearness 650 Dearness 12% 366 (47%) 917 Total 3,416 2, x 6 3, to Due Drawn Rs. Rs. 3,050 1,300 Dearness 650 Dearness 16% 488 (54%)1053 Difference Rs. Arrears Rs. Total 3,538 3, x 6 3, to Due Drawn Rs. Rs. 3,050 1,300 Dearness 650 Dearness 22% 671 (64%)1248 Difference Rs. Arrears Rs. Total 3,721 3, x 5 2,615

11 11 Calculated Arrears : Rs. From to ,600/- From to ,450/- From to ,294/- From to ,210/- From to ,615/ Total 16,169/- Less: Interim Arrears sanctioned in 3 months (BP+DP+DA ) 9,594/ Balance Due 6,575/ Amount payable as 1 st Instalment in Rs. 2,192/- Amount payable as 2 nd Instalment in Rs. 2,192/- Amount payable as 3 rd Instalment in Rs. 2,191/-

12 12 ANNEXURE-III ILLUSTRATION - II An employee retired as Assistant Director on after rendering full qualifying service. He was drawing a basic pay of Rs.8550/- in the scale of pay of Rs The revised scale of pay applicable under Pay Band-3 is Rs with Grade pay of Rs His pay is fixed in the revised scale of pay at Rs % of the pay last drawn is Rs His pension shall be regulated as shown below:- I. calculated in the pre-revised scale of pay : Rs. Last pay drawn 8550 Dearness 50% Total = 50% of the pay last drawn is Rs.6413 Therefore, the pension of the Retired Officer is fixed Rs.6413 with effect from II to Due Rs. Drawn Rs. Difference Rs. Arrears Rs Dearness 2% 214 (29%)1860 Total x 6 15,576 (notional / no change) to Due Rs. Drawn Rs. Difference Rs. Arrears Rs Dearness 6% 640 (35%)2245 Total x 6 15, to Due Rs. Drawn Rs. Difference Rs. Arrears Rs Dearness 9% 959 (41%)2630 Total x 6 15,426

13 to Due Rs. Drawn Rs. Difference Rs. Arrears Rs Dearness 12% 1279 (47%)3015 Total x 6 15, to Due Rs. Drawn Rs. Difference Rs. Arrears Rs Dearness 16% 1705 (54%)3464 Total x 6 14, to Due Rs. Drawn Rs. Difference Rs. Arrears Rs Dearness 22% 2345 (64%)4105 Total x 5 12,410 Calculated Arrears : Rs. From to ,822 From to ,426 From to ,036 From to ,898 From to , Total 73,592 Less: Interim Arrears sanctioned in 3 months (BP+DP+DA ) Balance Due Amount payable as 1 st Instalment in Amount payable as 2 nd Instalment in Amount payable as 3 rd Instalment in Rs.14,013 - Rs.14,013 - Rs.14,012

14 14 ANNEXURE-IV Ready Reckoner for calculation of / Family with reference to the minimum of the revised pay scale + Grade Pay Sl. No. Pre-revised scale of pay w.e.f Scale of Pay Pay Band/ Scale of Pay Grade Pay = 50% of sum of min. of revised scale + GP Family = 30% of sum of the min of the revised scale + GP (1) (2) (3) (4) (5) (6) (7)

15 15 Sl. No. Pre-revised scale of pay w.e.f Scale of Pay Pay Band/ Scale of Pay Grade Pay = 50% of sum of min. of revised scale + GP Family = 30% of sum of the min of the revised scale + GP (1) (2) (3) (4) (5) (6) (7) Note: The pension indicated in Column-6 above shall be reduced proportionately wherever Net Qualifying Service of pensioner is less than the maximum qualifying service required for full pension as per rules.

16 16 ANNEXURE-V TABLE SHOWING EXISTING AND REVISED PENSION / FAMILY PENSION on on

17 17 on on

18 18 on on

19 19 on on

20 20 on on

21 21 on on

22 22 on on

23 23 on on

24 24 on on

25 25 on on

26 26 on on

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