A boon for pensioners

A boon for pensioners
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A boon for pensioners. On the occasion of first anniversary of formation of Telangana State, Chief Minister K Chandrashekar Rao cleared the long-pending file pertaining to payment of arrears of Rs 400 crore to the pensioners who have retired before May 25, 1998. A GO to this effect will be issued shortly.

Hyderabad: On the occasion of first anniversary of formation of Telangana State, Chief Minister K Chandrashekar Rao cleared the long-pending file pertaining to payment of arrears of Rs 400 crore to the pensioners who have retired before May 25, 1998. A GO to this effect will be issued shortly. In the year 1998, a GO Ms No. 87 was issued dispensing with procedure of calculating the pension based on the average emoluments drawn during the last 10 months of service with a view to liberalising the procedure for computation of pension.

Previously, the last pay drawn was ordered to be treated as the emolument for calculation of pension under Rule 45(2)(b). These orders were given effect from 25-05-1998. However, certain employees who retired prior to 25-05-1998 approached the Andhra Pradesh Administrative Tribunal (APAT) with a prayer for extending the benefit before 25-05-1998.

The APAT in its judgement O.A. No. 50303 of 1999 and 329 of 2000 directed that employees retired prior to 25-05-1998 and living on the date of issue of GO Ms No 87 are entitled for arrears from 25-05-1998. Aggrieved by the orders of APAT, the Government filed writ petition Nos. 16719 of 2003 and 18490 of 2003 in AP High Court and the High Court in its judgement dated 23-12-2003 upheld the orders of the APAT and also directed the Government to pay the arrears within three months from the date of judgement.

The Government has appealed in the Supreme Court which was dismissed. The judgement will benefit service pensioners who retired prior to 25-05-1998 and whose pension is fixed based on average emoluments covered under the judgement and service pensioner living as on 25-05-1998 are only eligible for payment of arrears from 25-05-1998. Service pensioners, who retired prior to 25-05-1998 and expired on or before that date, are not eligible for payment of arrears as per the judgement.

In respect of surviving pensioners as on 25-05-1998 and died after 25-05-1998 arrears have to be paid as per rules in force to the legal heirs of the deceased pensioner. The pensioners covered under the judgement are not entitled to any arrears relating to gratuity and commutation of pension as per the judgement of the APAT. The Government of AP has already complied the orders of the SC and issued a GO No. 223 dated 15-12-2014.

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