Log in


Latest News

Dearness Relief to re-employed Ex-servicemen / pensioners – PCDA Clarification

Dearness Relief to re-employed Ex-servicemen / pensioners – PCDA Clarification

Office of the Principal Controller of Defence Accounts (Pension),

Draupadi Ghat, Allahabad-211014


Circular No.179 


Sub: Payment of Dearness Relief to re employed pensioner: Clarification thereof.

As per para l(a) of MOD letter No. 7(1)/95/D(Pen/Services) dated 28.8.2000, entire pension admissible to ex-servicemen who held post below commissioned officers (PBOR) at the time of retirement, is ignored and their pay on re-employment is to be fixed at the minimum of the pay scale of the post in which they are re-employed. Such pensioners will consequently be entitled to dearness relief on their pension.

Deptt. of Pension and Pensioners Welfare, vide their UO No.41/42/2007/P&PW(G) dt. 03.04.2008, reproduced under this office circular No. 386 dt. 19.06.2008, further clarified that if the pay is fixed at a higher stage because of advance increments and no protection of last pay drawn is given, the pay should be treated as fixed at a minimum only for the purpose of ignoring the entire pension and allowing dearness relief on pension. For availing this benefit the ex-servicemen would have retired at post below commissioned officers Rank (PBOR) before attaining the age of 55 years.

Now representations from the banks, where number of ex-clarify the elements to be taken into account for assessing the last pay drawn by the ex-servicemen for the purpose of last pay protection.

The dearness relief on re-employment should be regulated by the Pension Disbursing Agencies on the basis of certificate issued by re-employer, clearly stating whether benefit of last pay protection has been given or not. However, on examination of cases submitted by the banks it has been found that pay scale in banks are still on old pattern, whereas ex-servicemen have been retired with Pay in Pay Band, Grade Pay, MSP, Group Pay etc. In such cases it is clarified that for the purpose of assessing the last pay drawn for last pay protection, the elements to be taken into account should be last pay in pay band i.e. Band Pay plus Grade Pay, last drawn before retirement as envisaged vide MOP, PG & P, DOPT OM NO. 3/19/2009 Estt. Pay II dt. 8th Nov 2010 and no other elements should be taken for this purpose.


In view of the above, it is advised that all the cases of dearness relief where pay of ex-servicemen has been fixed at a higher stage because of advance increments may be reviewed and regulated accordingly.


No. AT/Tech/263-XVIII 

Date 12.05.2015

(A.D. Mishra)

Asst.CDA (P)


Source: www.pcdapension.nic.in


Read 357 times Last modified on Sunday, 26 August 2018 22:41

Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.


Do you want to be informed on publishing new article?

Does ECHS provide quality medicare to the retired Jawans?
  • Votes: (0%)
  • Votes: (0%)
  • Votes: (0%)
  • Votes: (0%)
Total Votes:
First Vote:
Last Vote:
Verification of Online Application for ECHS Cards by Record Office

Verification of Online Ap...

Central Organisation ECHS Adjutant General’s Branc...

What is Concordance table? and How it works?

What is Concordance table...

Concordance Tables for Defence Pensioners Point-wi...

Clarification On Special Pension For Sailors

Clarification On Special...

The recent modification judgement by SC has paved...

This Week
This Month
Last Month
All days

Your IP:
19-11-2018 22:47