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Dearness Relief to re employed pensioners – Complaint by Some Officer

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Submitted by admin on Mon, 10/07/2017 - 05:43
Dear sir,
               Your Office Might have received a mail from wellknown Esm group. The contents of the mail reproduced below. However we would like to bring savings clause to your notice which the group failed to notice. Reference is made to PCDA circular No.179 dated 12.05.2015. Those JCOs/ORS ,whose pay has not been protected on re employment are eligible to draw DA on their PAY. So your are requested to act causiously to avoid inconvinience to ESM community and to avoid unnecessary work.
K Krishnamoorthy
Gen Secy
​All Banks and their  Branches Kindly note ans take action.
If any veteran has been paid DA when reemployed the same should be recovered.
All Banks pls use the Life Certificates as per ​
​circular 183

From: "AT-Tech (R.S Yadav)" <>
Subject: Illegally drawing DA on Defence Pension
In this regard, it is intimated that as per para 98.3(d) of DPPI-2013 pensioners are required to submit in the month of November each year, a certificate of re-employment/non employment and on the basis of this certificate PDAs are responsible to regulate the payment of dearness relief on pension.
Besides above Ministry of Finance, Dept. of Expenditure, Controller General of Accounts OM NO M23013/152/79/MF/CGA/VI(Pt.)1118 dt 26.03.1984, read with MoD letter No. F 4(3)/84/1872/C/D(Pension/Services), provides that the pensioner should intimate the fact of his taking up/ having taken up re- employment to the PDA, immediately on doing so without waiting for the month of November when submission of yearly certificate becomes due.
Above OM further provides that cases of re-employment of pensioner are reported promptly to the Pension Disbursement Authorities and this information is not withheld by the pensioner intentionally or otherwise, all the re-employing organization may obtain the details of the PPOs and designation of the Pension Disbursement Authority, from whom the re-employment pensioner receives pension and send to Pension Disbursement Authority, by registered post, intimation regarding the fact of re-employment, date thereof, and monthly rates of emoluments.
Therefore, it is advised to provide the full details of PDAs along with PPO No. of Commissioned officers/ex-servicemen who are re-employed and drawing dearness relief or pension illegally, so that necessary instructions could be issued to the concerned Pension Disbursement Authority.
No. AT/Tech/263-XX
Dated: 28 .07.2016
                                                                                                                      Sr.Accounts Officer (P)

Dearness Relief to re employed pensioners – Elements to be taken for determining last pay drawn for last pay protection – PCDA Clarification

Principal Controller of Defence Accounts in charge of Pensions has issued a Clarification Circular regarding Elements to be taken for determining last pay drawn for last pay protection

Office of the Principal Controller of Defence Accounts (Pension),
Draupadi Ghat, Allahabad-211014

Circular No.179                                                                                                                             Date:12.05.2015


1. The Director of Treasuries of all state .
2. The Manger CPPC of Public Sector Banks .
3. The CDA (PD) Meerut
4. The CDA-Chennai
5. The Nodal Officers (ICICI/AXIS/HDFC Bank)
6. The Pay & Accounts Officers .
7. Military Attache, Indian Embassy Kathmandu, Nepal.
8. The DPDO .
9. The Post Master. .

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)

Download Controller of Defence Accounts (Pensions), Allahabad Circular No.179 dated 12.05.2015

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