Punjab Government College Retired Teachers’ Welfare

Association(Regd), Chandigarh.
Working Office: 762, Phase 3BI, Mohali, Phone:- 0172-2266638, M- 9417427662.

To
The Principal Secretary,
Government of Punjab,
Department of Finance,
Chandigarh.

Subject: Rationalization of the pension of Pre-1-1-2006 pensioners under Punjab

Government Notification dated 17-8-2009, regarding employees governed by the UGC pay
scales.

Sir,

Respectfully, it is submitted that pre-1-1-2006 Punjab Government College Retired

Teachers have been discriminated against in respect of grant of revised pension under
Punjab Govt. Notifications- No. 3/23/09-3FPPC/885 dated 17-8-2009, Notification
No.10/3/09-Edu.I/ 3321 dated 2-9-2009, No.3/39/09-3FPPC/201 dated 22-2-2010, The
Punjab Civil Services (Revised Pay) Rules,2009 etc. The under lying principle
enunciated in these letters is that the full pension, in no case, shall be less than
50 % of the “Initial Pay” plus the academic grade pay. This principle of full pension
being 50% of the “Initial Pay” plus the Academic Grade Pay has not been applied to
pre-1-1-2006 pensioners governed by the UGC pay scales. All these notifications have
been discussed in the representation enclosed herewith.

It is, therefore, requested that all these anomalies and discrimination may kindly be
rectified. We may please be given an opportunity to present our point of view
personally for which any time and date convenient to you may be given to us ten days
in advance.

Thanking you.

Yours faithfully,

(S.S.Jaspal)
Gen.Secretary,

(S.S.Gulati)
President

February 14, 2011.

Copy to:-

1. The Principal Secretary, Government of Punjab, Department of Higher Education,

Chandigarh.

2. The D.P.I. (Colleges), Punjab Chandigarh.

For information and necessary action please.

Rationalization of the pension of pre-1-1-2006 pensioners under para 4.2 of the
Punjab Government letter No. 3/23/09-3FPPC/885 dated 17-8-2009- Employees
governed by the U.G.C. pay scales.

1. Employees of the Punjab Government can be classified in two categories on the

basis of the commissions on whose recommendations their pay scales are determined by
the Punjab Government. These are as under:-

(i) Employees whose pay scales are determined on the recommendations of the Punjab Pay
Commissions. They may be called PPC pay scales employees for the purpose of this note.

(ii) Employees whose pay scales are determined on the recommendations of the
University Grants Commission. They may be called U.G.C. pay scales employees for the
purpose of this note.

2. So far as pension rules are concerned the employees of both these categories are
governed by the rules contained in Punjab Civil Services Rules Vol. II as modified
from time to time, in regard to the rationalization of pension of pre- 1-1 2006
pensioners / family pensioners w.e.f. 1-1-2006. The Punjab Government has issued the
following orders:-

(i) Letter No.3/23/09-3FPPC/885 dated 17-8-2009.

(ii) Letter No.3/39/09-3FPPC/201 dated 22-2-2010.

3. Para 4.1 of the letter dated 17-8-2009 quoted above provided for the
rationalization of pension/ family pension of pre-1-1-2006 pensioners/ family
pensioners from 1-1-2006 by adding together:-

i) Existing pension/ family pension.

ii) Dearness Pension where applicable.

iii) Dearness Relief at 24% of basic pension/family pension plus Dearness Pension.

iv) Fitment weight age @ 40% of the existing pension/ family pension.
(Where the existing pension/ family pension at (i) above included the effect of merger
of 50% D.R. w.e.f.1-4-2004, the existing pension for the purpose of fitment weight age
is to be recalculated after excluding the merged D.R .of 50% of the pension.)

Both the categories of employees i.e. PPC pay scales employees and U.G.C pay scales
employees were governed by the provisions of the said para 4.1 in the matter of
rationalization of their pension/ family pension w.e.f. 1-1-2006 and have got their
pension rationalized under the provision of the said para 4.1.

4. Para 4.2 of the letter dated 17-8-2009 quoted above provides as under:-

“The fixation of pension will be subject to the provision that the revised pension, in
no case, shall be lower than 50 % of the minimum of the `pay in the pay band` plus the
grade pay corresponding to the pre-revised pay scales from which the pensioner had
retired. This will be reduced pro-rata if the qualifying service of the pensioner
falls short of 33 years.”

The question is to what is exactly meant by the “ minimum of the` pay in the pay band`
plus the grade pay” was examined thoroughly by the finance department and ultimately
it was clarified and the above said provisions of the said para 4.2 were modified to
mean that the fixation of the pension envisaged in the said para will be subject to
the condition that full pension, in no case, shall be less than 50 % of the` initial
pay` shown in col. 8 of the schedule to the Punjab Civil Services ( Revised Pay) Rules
2009 against the relevant Pay Band and Grade pay corresponding to the pre-revised
scale of pay in which the pensioner had worked, vide Finance Department letter
No.3/39/09-3FPPC/201 dated 22-2-2010.
5. The above said clarification/ modification does not cover the UGC pay scale
pensioners because their pay scales are not governed by the Punjab Civil Services
(Revised Pay) Rules 2009 but they are governed by the UGC pay scales notified vide
Punjab Government Notification No.10/3/09-Edu.I/ 3321 dated 2-9-2009. But the
underlying principle enunciated in this letter that the full pension, in no case ,
shall be less than 50 % of the “initial pay ” has to be made applicable in the case
of UGC pay scale employees/pensioners also. The question as to what constitutes
“initial pay” in their case is discussed in the paragraphs that follow.

6. The definition of “pay in the pay band”, “ Revised pay Structure”,” Basic Pay” etc
as given in the Punjab Civil Services (Revised Pay) Rules 2009, are on the similar
lines as contained in Annexure III of Punjab Government Notification No. 10/3/09-
3Edu.I/3321 dated 2-9-2009- regarding UGC pay scales. The term “Grade Pay” used in
the former has been replaced by the term “Academic Grade Pay” in the latter for
obvious reasons.

The “Revised Basic Pay” shown in the last column of the 6th Table appended to the
Notification dated 2-9-2009 also corresponds exactly to the “Revised Basic Pay” shown
in the last column of all the 32 Tables appended to the Punjab Civil Services (Revised
Pay) Rules 2009 in the matter of the formula adopted for fixation of Revised Pay i.e.
multiplying the pre-revised basic pay by 1.86 and adding there to the applicable grade
pay/ academic grade pay. The first entry in the last column “Revised Basic Pay” of
each of the 32 Tables appended to the Punjab Civil Services (Revised Pay) Rules 2009
is the same as the entry of “initial pay” in column 8 of the schedule to the said
rules.

It is thus clear beyond any shadow of doubt that the first entry in the last column
(Revised Basic Pay) of the six tables appended to the Notification dated 2-9-2009, is
the “Initial Pay” that is to form the basis of computing the revised pension in terms
of para 4.2 of Punjab Government letter dated 17-8-2009 quoted in the subject in the
case of UGC pay scales pensioners, as further clarified / modified vide letter dated
22-2-2010 quoted above.

7. The genesis of the concept of modified parity is that the revised pension should
not be less than 50 % of “the initial pay“ in the revised pay structure can be traced
to the following recommendations of the 5th Central Pay Commission.

Para 137.20 “We have no hesitation in conceding the arguments advanced by the
pensioners that they should receive pension at least in the minimum pay of the post as
revised by the 5th Pay Commission in the same way as an employee normally gets the
minimum revised pay of the post he holds. We recommend acceptance of the principle
which is based on reasonable consideration”. It has been clarified by the Finance
Department in their letter No. 5/55/2009-5FPI/604 dated 16-10-2009, extract reproduced
below that ‘the initial pay’ of the person appointed/ promoted on or after 1-1-2006
will be fixed as specified in column 8 of the schedule appended to the Punjab Civil
Services Revised Pay) Rules 2009.

Query Clarification by the Finance Department

What is the revised ‘basic pay’
admissible to an employee under
the revised pay structure who is
appointed on 1st March, 2006
in the pre revised scale of Rs.7,000-
10980?
As per S. No.14 of the Schedule the
initial pay of an employee who is
appointed on 1st March,2006 in pre-revised
scale of Rs. 7,000-10,980 will be fixed at
Rs.17,420/= in the revised pay structure
of Rs.10,300-34,800+4,400 and not at
Rs.14,700 (Rs.10,300+4,400).
Hence it is clarified that the initial pay
of the persons appointed on or after
1-1-2006 will be fixed as specified in
Column 8 of the schedule against the
relevant pre-revised pay scales.
8. This interpretation is also corroborated by the Central Civil Services (Revised
pay) Rules 2008. In this connection attention is invited to para 8 of Annexure III of
the Punjab Government, Higher Education Department Notification dated 2-9-2009 which
deals with the fixation of pay in revised pay structure of the employees appointed as
fresh recruit on or after 1-1-2006. Extract of Section II of part A of the First
Schedule of the Central Services (Revised Pay) Rules 2008 referred to in the said para
8 of Annexure III which deals with the entry pay in the revised pay structure for
direct recruits appointed on or after 1-1-2006 are reproduced below:-

Pay Band 3 (Rs.15,600-39,100)

Grade pay Pay in the Pay Band Total

5400 15600 21000

6600 18750 25350

7600 21900 29500

Pa
y Band 4 (37,400-67,000)

Grade pay Pay in the Pay Band Total

8700 37400 46100

8900 40200 49100

10000 43000 53000

12000 47100 59100

It will be seen that a person appointed on or after 1-1-2006 in P.B. 3 (15600-39100)

on a post carrying a grade pay of 6600 is fixed at Rs.18750 plus grade pay and not at
15600 (i.e. minimum of the pay band) plus grade pay. Similarly, a person appointed on
or after 1-1-2006 in P.B. 4 ( 37400-67000) on a post carrying grade pay of 12000 is
fixed at 47100 plus grade pay and not in 37400( i.e. minimum of the pay band plus
grade pay.

The concept of modified parity (with pension related to the minimum pay of the revised
pay scale) as enunciated by the 5th Central Pay Commission in para 137.20 of their
report reproduced in para 7 above, therefore, implies that the pension received on 1-
1-2006 should not be less than 50% of what a direct recruit appointed on or after 1-1-
2006 is paid as starting pay i.e. “initial pay”. The rules of the Central Government
and the Punjab Government make this point absolutely clear and there is no scope of
any doubt in this matter.

Thus, there is absolutely no doubt that the principle of initial pay as enunciated
vide letter dated 22-2-2010 should equally apply in the case of UGC pay scales
pensioners because “Revised Basic Pay” against the first entry in the six Tables
appended to the Notification dated 2-9-2009, has been worked out on the same
principles as first entry in the column of “Revised Basic Pay” in the 32 Tables
appended to the said rules vide letter dated 22-2-2010. Necessary clarification may be
issued to this effect. Any other interpretation would lead to avoidable litigation.

9. A Table showing the pension/ family pension computed in the case of UGC pay scales
pensioners on the same pattern as to the Punjab Government letter
No. 3/39/09-3FPPC/201 dated 22-2-2010 is attached for reference and approval/ issue.

Table showing revised pension/ family pension in the case of UGC pay scales
pensioners based on the first entry of “Revised Basic Pay” in the last column of
Tables 1 to 6 appended to the Punjab Government Notification No.10/3/09-3Edu.I/3321
dated 2-9-2009, is attached as Annexure-I.
Annexure-I.

Table Pre-revised Corresponding Academic Minimum Revised Basic Revised Family

No. Scale Revised Pay Grade Pay in Pay/Initial Pension Pension
Scale/Pay Pay the Pay Pay in the at 50% at 30%
Band Band corresponding
pay scale as
per Fitment
Table

1 2 3 4 5 6 7 8

Table 8000-13500 15600-39100 6000 15600 21600 108700 6480

No. 1

Table 10000-15200 15600-39100 7000 18600 25600 12800 7680

No. 2

Table 12000-18300 15600-39100 8000 22320 30320 15160 9096

No. 3

Table 12000-18300 37400-67000 9000 37400 46400 23200 13920

No. 4

Table 16400-22400 37400-67000 10000 40890 50890 25445 15267

No. 5

Table 12000-18300 37400-67000 10000 37400 47400 23700 14220

No. 6

(S. S. Jaspal) Gen. Secretary,

(S. S. Gulati) President

Punjab Government College Retired College Teachers` Welfare Association (Regd)

Chandigarh.

Working Office:- 762, Phase 3B1, Mohali. Ph:-2266638, M- 9417427662.