Good news! Pre-2006 central government retirees to get pension hike

New Delhi: Pre-2006 pensioners will now get a hike in pension, in addition to the arrears, as the Centre has done away with a provision of having 33-year service for earning full pension.

The Department of Pensions and Pensioners Welfare has decided that the revised consolidated pension of pre-2006 pensioners shall not be lower than 50 percent of the minimum of the pay in the pay band and the grade pay even if they had served for less than 33 years at the time of retirement.

As per rules, a central government servant is entitled to receiving superannuation pension on completion of at least 10 years of service. With effect from January 1, 2006, pension is calculated with reference to average emoluments -- the average of the basic pay drawn during the last 10 months of service or last basic pay drawn whichever is higher.

Before 2006, for service of less than 33 years, amount of pension was proportionate to the actual service broken into completed half-year periods.

Several petitions were filed in Central Administrative Tribunal and in Supreme Court against this.

"The arrears of revised pension would be payable with effect from January 1, 2006," said the government order issued on April 6.

All ministries have been asked to revise pension of all those pre-2006 pensioners who had rendered less than 33 years of service at the time of retirement. Revised Pension Payment Orders in all these cases may also be issued immediately, it said.