Finance Division Explains Rule Regarding Calculation of Pension

Finance Division has stated that a civil servant is entitled to the usual annual increment, for calculation of pension only, on completion of six months of service in the year of retirement irrespective of the due date of 1st December following the completion of six months. The Division issued an office memorandum in this regard while saying that it has been pointed out from various quarters that the civil servants who have been promoted from lower to higher post/scale after completion of six months service in the year of retirement could not get the benefit of annual increment, for calculation of pension, if they retire before 1st December following the promotion merely because they have not completed six months service after promotion in the higher post/scale in the year of retirement. It clarified that in such cases, for calculation of pension only, their pay in the higher post/scale may be re-fixed based on pay fixed in the lower post after allowing the benefit of annual increment in the pre-promotion scale for which he would have been entitled to his six months service. The OM stated, “The undersigned is directed to refer to Finance Division’s O.M. No.3(20)R-2/98 dated 08.09.1999 read with O.M. No.3(20)R-2/98 dated 29.12.1999 and O.M. No. 11(1)R-2/2007-590 dated 06.01.2015 which provide that a Civil Servant is entitled to the usual annual increment, for the purpose of calculation of pension only, on completion of six months service in the year of retirement irrespective of the due date of 1st December following the completion of six months.”