Pension Workshop CPC) which was changed to Rs.3500/- p.m.
w.e.f. 1.1.2006 (6th CPC). For BSNL retirees the
Due to our consistent and continuous efforts,
Central Cabinet gave its zeal of approval on
20.1.2011 for Pension Revision to Pre-2007
retirees. On the basis of that approval DOT
issued orders on 15.3.2011 to CMD BSNL. In
turn BSNL corporate office issued orders to all
circles on 4.4.2011. DDG (TPF) issued
instructions to all CCAs on 5.4.2011. No doubt
that it is our historical achievement. To achieve
this demand, we have conducted several
movements, advanced convincing arguments
with relevant documents and details. We were
all Government servants till 30.9.2000. From
1.10.2000 onwards we were absorbed in BSNL
and the Government of India made an
amendment to CCS Pension Rules 1972 by
incorporating Rule 37A by which the
Government made a solemn assurance that the
Government of India shall pay Pension including
Family Pension to the absorbed BSNL
employees. So we are covered under CCS
Pension Rules 1972. Pension has undergone
several changes in the past. We could make
improvements in the past through struggles, then
prevailing political situation, intervention of
judiciary.
Minimum Pension
There was no Minimum Pension before 1.1.1964.
From 1.1.1964 it was Rs.25/- p.m. It was
changed to Rs.40/- p.m. from 1.3.1970, to Rs.60/-
p.m. from 1.1.1980, to Rs.150/- p.m. from
1.4.1982, to Rs.160/- p.m. from 1.4.1983. 6th
CPC only introduced the concept of 50% of
Minimum of Minimum scale and under this
concept it became Rs.375/- p.m. from 1.1.1986.
It rose to Rs.1275/- p.m. from 1.1.1996 (6th
minimum pension from 1.1.2007 should be
Rs.3880/- p.m.
Maximum Pension
Before 17.4.1950 Maximum Pension per annum
was Rs.6, 000/-. It rose to Rs.6, 750/- from
17.4.1950, to Rs.8, 100/- from 17.4.1956, to
Rs.12, 000/- from 1.1.1973. From 31.3.1979 it
became Rs.1, 500/- p.m. and from 1.1.1986 (6th
CPC) it rose to Rs.4, 500/- p.m. The concept of
50% of the Maximum Pay in the Government as
ceiling was introduced by 4th CPC. The same
concept was followed by 5th CPC & 6th CPC.
So the ceiling from 1.1.996 was Rs.15, 000/- p.m.
and from 1.1.2006 it was Rs.45, 000/- p.m. This
ceiling of Rs.45, 000/- p.m. is applicable to
BSNL retirees also.
Family Pension
Family Pension was introduced in April 1950.
FP is eligible for those whose who have put in a
service of 25 years. FP was 50% of Pension. It
was allowed for a total period of 10 years subject
to a maximum of 5 years beyond date of
retirement. The service condition of 25 years
was reduced to 20 years from 1.4.1957. Family
Pension Scheme 1964 was introduced and it was
made applicable to all those who were in service
as on 31.12.1963. Up to 22.9.1977 two months
gratuity was deducted towards Family Pension.
It was withdrawn from 22.9.1977 on the basis of
Apex Court Judgement. From 1.1.1986, on the
basis of 6th CPC recommendations, up to the
Basic Pay of Rs.1, 500/- FP was 30% of Pay with
a minimum of Rs.375/-. For those who drew a
Basic Pay of Rs.1501 to 3000 it was 20% of pay
1
with a minimum of Rs.450/- p.m. and for those
who drew a Basic Pay above Rs.3, 000 it was
15% of pay with a minimum of Rs.600/- p.m.
The ceiling of Family Pension was Rs.1, 250/-
p.m. As per 6th CPC recommendations from
1.1.1996 FP is granted @ 30% of Last Pay
Drawn. Minimum Pension of Rs.1, 275/- is
made applicable to family Pensioners also from
1.1.1996. Both Son and daughter are eligible to
receive FP up to the age of 25 years or marriage
or employment whichever is earlier. But
handicapped children are eligible to get FP for
life. 5th CPC introduced the concept of ‘Enhanced
Family Pension’ for 7 years or pensioner would
have attained the age of 67 whichever is earlier, if
the employee died in harness (i.e. 50% of
Average emoluments instead of 30% of LPD).
From 1.1.2006 on the basis of 6th CPC
recommendations, the period of 7 years was
increased to 10 years (for those died in
harness). As per the existing orders, if the
period of 7 years falls beyond 1.1.2006, then FP
at enhanced rate should be given for 10 years.
BSNL Family Pensioners are also entitled to this
benefit, but it seems that no CCA is extending
this benefit.
Commutation
Up to 17.4.1950, 50% of pension was allowed for
commutation. It was reduced to 1/3rd from
17.4.1950. From 1.1.1996 (5th CPC) 40% is
allowed. BSNL retirees are eligible for this 40%.
up to 31.3.1985 there was no scheme of
‘restoration of commutation’. On the basis of
Supreme Court Judgement ‘Restoration of
commutation’ was allowed after 15 years from
1.4.1985. Though 6th CPc recommended for
restoration after 12 years, Government did not
accept that recommendation. BSNL retirees are
entitled for restoration of commutation after 15
years.
Death-cum-Retirement Gratuity
DCRG was introduced from 17.4.1950. For each
completed year of service it was 9/20 of
emoluments with a maximum of 15 times. It was
changed to 1/4th for every 6 months service from
22.4.1960. Maximum was raised to 16 and half
times from 1.1.1973 (3rd CPC). The ceiling was
raised to one lakh from 1.1.1986 (4th CPC). From
16.9.1993 20% of Basic Pay was treated as
Dearness Pay for DCRG. 97% of Basic Pay was
treated as dearness pay for DCRG and ceiling
was raised to Rs.2.5 lakh from 1.4.1995. On the
basis of 6th CPC recommendations, from
1.1.1996, Pay + DA was taken into account for
payment of DCRG (till then only Basic Pay
was taken into account). On the basis of 6th
CPC recommendations ceiling was raised to
Rs.10 lakh from 1.1.2006. This is applicable to
BSNL retirees also.
Our fore-fathers and we, during our service,
fought and got many benefits. Now our
Pensioners Welfare Association has created a
history for the future retirees. Though Pension
Scheme is available in LIC, Reserve Bank, State
Bank etc., No Pension revision takes place as and
when Pay is revised. DOT/BSNL had to face the
demand of Pension revision for the first time.
We succeeded in our efforts. Now our attention
is about implementation of 15.3.2011 DOT order.
We should get revised pension from the month of
July 2011 as per this order.
2
At field level we are confronted with certain
queries and let us understand the answer for some
common queries.
1. What is the current procedure for
paying Dearness Relief to BSNL pensioners?
Dearness relief is revised 4 times in a year. i.e.
1st of Jan, April, July and Oct. Department of
Public Enterprises issues orders for eligible
percentage of DR in their Website. Respective
CCAs have to download that order and on the
basis of that order CCAs issue an order to the
link Branches of Nationalized Banks and to the
General Manager, Postal Accounts & Finance.
Link Branches will supply the orders to the
Paying Branch through their internal network and
GM PA&F will supply the orders to the Head
Post Offices. The Link Branches and GM PA&F
can also download the order from CCA website.
On the basis of that order Dearness Relief shall
be paid to BSNL Pensioner.
2. Who is the competent authority to issue
PPO and countersignature of PPO?
Every CCA office shall authorize one
Communication Accounts Officer to sign the
PPO. The specimen signature of that officer is
circulated to all CCAs in the country. The
Territorial Controller of Communication
Accounts will be responsible for countersigning
and forwarding the PPOs to the concerned Link
Branch.
3. What should I do to get pension from a
Nationalised Bank instead of a Post office?
First you should give the application in a
specified Form to the post office from which you
are drawing the pension. The application should
be submitted in triplicate if you draw pension
from a sub post office and in duplicate if you
draw your pension from the Head Post Office.
The Pensioner’s half of the PPO should also be
completed by the SPM and handed over back to
the pensioner on receipt of the application for
transfer. The SPM will forward two copies of the
application along with the disbursers half of the
PPO and SB Account Pass Book to the HPO
within three days from the date of receipt of
application. A suitable entry will be made by
SPM in the ledger. The HPM will send one
application copy along with the disburser’s half
of the PPO to Director Postal Accounts within
three days. HPM will also make suitable entry in
the register. After the transfer of PPO, pensioner
will be advised to close the account. Within three
days of receipt of application, DPA will send
disburser’s half of the PPO duly endorsed along
with a copy of application under a forwarding
letter by Regd. Post to the CCA for onward
transmission to the Link Branch of the concerned
Bank. An advice will also be sent to the AO,
pension section, O/o CCA who had issued the
PPO originally. CCA office will verify the
genuineness of the PPO and enter the particulars
in the check register and forward the documents
with a covering letter signed by the duly
authorized officer with special seal to the Link
Branch of the Bank within a week’s time. O/o
CCA should also intimate the pensioner and they
will retain one copy of application. The Link
Branch shall maintain a register in respect of
Telecom Pensioners. The Link Branch will
verify the special seal and signature of the
authorized Accounts Officer. After verification
the disburser’s half of the PPO will be forwarded
within three days from the date of receipt, to the
Paying Branch. The Paying Branch shall send a
3
letter to the Pensioner to be present in the bank’s
branch along with documents for identification.
In case of physically handicapped pensioners
personal appearance shall be waived. The
pensioner should submit a certification from a
registered Medical Practitioner to the effect that
he/she is physically handicapped. In that case,
the paying bank official shall visit the pensioner’s
residence or hospital for the purpose of
identification and obtaining specimen signature.
The Paying Branch shall also obtain an
undertaking from the pensioner in the prescribed
form that excess payment, if any, can be
recovered by the Bank.
4. What is the procedure to change
Paying Branch of the Same Bank in the same
place or in the same District?
The pensioner can submit an application in the
existing Paying Branch. On receipt of that
application, the Paying Branch will indicate, on
the disbursal’s portion of the PPO the month up
to which the payment has been made and then
return that PPO to the Link Branch. The Link
Branch will make necessary entries in the register
and forward the PPO to the other Paying Branch
within three days of its receipt, for making future
payments, under intimation to the pensioner and
to the concerned CCA to enable them to make
suitable entries in their records.
5. What is the procedure to change
Paying Branch from one PS Bank to another
or to the same Bank in different district?
On receipt of request for transfer from the
pensioner, the paying Branch will send both
portions of PPO to the concerned CCA through
Link Branch. CCA will take necessary action for
transfer.
6. Can we change the pension disbursing
authority from Bank to Post office?
Yes. It can be done. The pensioner has to submit
the application in the requisite form along with
Pensioner’s half PPO to the paying Branch. The
Paying Branch shall send the request to
concerned CCA through Link Branch.
Concerned CCA will take necessary steps to
change the pension Disbursing Authority with
due intimation to the pensioner.
7. Is it necessary to submit Life
Certificate?
Yes. The Pensioner/Family Pensioner should
furnish a Life Certificate in November each year
in the prescribed form. Officers of RBI and PS
Banks are authorized to give Life Certificate. If
the Pensioner/FP is unable to give Life
Certificate due to illness/incapacitation it should
be intimated to the Paying Branch supported by a
medical certificate. In that case, the Bank officer
shall visit the pensioner.
8. Who should submit the certificate of
non-marriage/re-marriage?
If unmarried daughter or widower happens to be
family pensioner, a certificate of non-
marriage/re-marriage has to be furnished twice in
a year (i.e. May & November). In case of a
widow family pensioner she need not furnish this
certificate but at the time of commencement of
family pension, she should give an undertaking to
the effect ‘that she would report promptly such
an event to the pension disbursing office’.
9. Revision of Pension
The revised rate of pension and relief due thereon
and the date from which the revised rate is
4
effective should be intimated by CCA to the Link pension for their life term without age restriction.
Branch of the concerned Bank. The Link Branch (Medical certificate from a civil surgeon or
will make necessary corrections in the Index Medical Board is essential)
Register and forward it to Paying Branch under
intimation to the pensioner. On receipt of that 11. Whether Dearness relief is granted on
letter, the Paying Branch will carry out necessary Gross Pension (before commutation) or on Net
corrections in both halves of the PPO under pension (after commutation)?
attestation by the Branch Manager or In charge, Dearness relief is granted on Gross Pension
quoting authority of CCA. The Paying Branch (before commutation) only.
will obtain the half PPO from the pensioner for
making necessary correction and after correction 12) When commuted portion is restored?
return the same to the pensioner. Before making
It is restored after 15 years from the date of
payment, the Paying Branch will prepare a due
payment of commuted value.
drawn statement along with arrears, if any.
13. Whether Family Pensioner who is
10. Payment of Family Pension
employed is entitled for Dearness Relief?
In the PPO, particulars for family pension are
Yes. It is allowed from 18.7.1997.
indicated. Joint photograph is also affixed. On
receipt of a death certificate and application for 14. The Ex-servicemen is getting pension
family pension in the prescribed form along with from both Defence & Civil. Whether he is
pensioner’s half of PPO, the Paying Branch, after entitled for two family pensions?
verification, may start paying the family pension.
In case the claimant is a child, payment may be No. He can choose any one which is beneficial.
commenced after a fresh payment authority is
Courtesy: AIBSNLPWA WEB:
received from CCA. The paying Branch will
send a letter to CCA through Link Branch, the Our Note: The contents of the article have been
date of pensioner’s death and commencement of simplified to suit with the requirements of
payment of family pension for updating the Pensioners. The article throws light on important
record. provisions of Rules for BSNL Pensioners. Hope
reader will find it helpful to understand their
If a third person gives the death
entitlements and clear misgivings if any in their
information of a pensioner to CCA or Paying
minds.
Branch , concerned AO of CCA office or Bank
Manager, after satisfying himself about the D.D. MISTRY, GS BDPA GUJARAT.
correctness of the report, write to the family
Dated: - 9th May, 2011.
members in the address given in PPO asking
them to comply with the formalities for getting
family pension. Physically or mentally
challenged children are eligible to get family