As regular readers are aware, as far as commissioned officers of the defence services are concerned, the Cabinet has already approved the formula that pension would now be calculated based on the minimum of pay within the pay-band based on fitment tables rather than the minimum of the pay-band itself. This is in line with what had been directed by the Armed Forces Tribunal. It’s another matter that as always the Defence Ministry has challenged the orders of the AFT before the Supreme Court where the matter is pending as of now.
Similarly, for civilian pensioners, the Principal Bench of the Central Administrative Tribunal had passed analogous directions which the Government had challenged before the Delhi High Court.
However, the first signs of extension of similar benefits to civilian pensioners and thereby acceptance of the principles laid down by the CAT were visible in the 21st meeting of Standing Committee of Voluntary Agencies (SCOVA) held on 27 Sep 2012 under the aegis of Department of Pension and Pensioners’ Welfare (DoPPW) wherein the committee was informed that the agenda point was being treated as closed since the Govt was taking appropriate action in the direction of basing pension and family pension @ 50% and 30% respectively based on the minimum of pay within the pay-band.
The above becomes clear from a perusal of Serial No 3 (&12) of the Action Taken Report as reflected in the minutes of the meeting that can be accessed by clicking here.
The only pertinent issue that remains to be seen is whether the Govt ultimately agrees to release the benefits w.e.f 01 Jan 2006 rather than Aug 2012 as has been signified after the Cabinet meeting.