🔎 Context and Importance
Ex-servicemen, particularly Junior Commissioned Officers (JCOs) and Other Ranks (ORs), are often re-employed in various Central/State Government departments, PSUs, banks, and autonomous bodies after retirement. One persistent issue in such re-employment is the non-grant of proper pay fixation benefits and unclear treatment of Dearness Relief (DR) on pension.
The Circular No. 200, issued by the PCDA (Pensions) on 12 April 2018, addresses a vital concern—eligibility of Dearness Relief (DR) for re-employed pensioners, especially those below commissioned ranks (PBOR), and provides a framework to assess their entitlements based on how their re-employment pay was fixed.
📜 Key Provisions of Circular No. 200
The circular clarifies and builds upon previous directives (Circulars 166, 173, and 179). The key takeaways specifically applicable to JCOs/OR are as follows:
✅ Who is Eligible for Dearness Relief (DR) on Pension While Re-Employed
As per the Government decision dated 18/07/1997, the following re-employed ex-servicemen are entitled to DR on their pension:
- Personnel below Commissioned Rank (PBOR), including JCOs/OR.
- Their entire pension must be ignored for the purpose of pay fixation.
- Their pay must be fixed at the minimum of the scale of the re-employed post.
- No part of the military pension should be taken into account in pay fixation.
- If advance increments are given, it must be under a valid departmental policy and should not result in protection of last pay drawn during military service.
❌ Who is Not Eligible for DR
JCOs/OR will not be eligible for DR if:
- Their last military pay is protected during re-employment.
- Any portion of pension is deducted in pay fixation.
- Pay is fixed above minimum due to protection of last drawn pay rather than a standard rule-based increment.
📄 Required Certification for DR Eligibility
To establish eligibility for DR during re-employment, the re-employing organization must issue a certificate affirming that:
- The ex-serviceman held non-Group A or below commissioned officer post.
- Full military pension was ignored in pay fixation.
- Pay was fixed at the minimum of the pay scale for the re-employed post.
- If increments were given, they were per existing departmental policy and did not lead to last pay protection.
📌 What Actions Should JCOs/OR Take Now
If you are a re-employed ex-serviceman (JCO/OR) and have not received DR or pay fixation benefit, follow this structured course of action:
🔶 1. Obtain Copy of Pay Fixation Order
- Collect a certified copy of your pay fixation order from your re-employing department.
- Verify whether your pension was ignored in pay fixation and pay was fixed at minimum scale.
🔶 2. Request Certification from Employer
- As per Circular No. 200 Para 3(i)(A), request your employer to issue a formal certificate of pension ignorance and pay fixation at minimum.
- If advance increments were granted, seek a copy of policy order supporting that benefit.
🔶 3. Approach Your Pension Disbursing Agency
- Submit the above documents to your PDA (Bank/Post Office/DPDO) and request restoration of DR from the date of re-employment.
🔶 4. Seek Clarification If DR Not Being Paid
- If DR is still withheld, file an RTI or representation to the PCDA (Pensions), Allahabad, quoting Circular 200 and providing the employer’s certificate.
🔶 5. Demand Arrears
Cases have been found in SPARSH era, once entered Reemployment status as Reemployed in SPARSH Profile, DR has been deducted. In such case, you need to submit a Pay Fixation certificate stating that you pay has been fixed at minimum of pay scale and no protecction of Last pay drawn admissible. Tose wo are suffering, must submit pay fixation certificate.
- Once certified, demand arrears of DR from the date of re-employment till date, if you were eligible under Circular 200.
📘 Example Scenarios
| Situation | DR Admissible? | Reason |
|---|---|---|
| JCO retired at age 42, re-employed in Central Govt, pay fixed at minimum without deducting pension | ✅ Yes | Fulfils all Circular 200 conditions |
| OR re-employed in PSU with pay fixed above minimum due to last pay protection | ❌ No | Last pay protection nullifies DR eligibility |
| PBOR granted 3 advance increments as per departmental policy, but pay still below last drawn | ✅ Yes | Still considered minimum for DR purpose |
| PBOR’s pension deducted partially while fixing pay | ❌ No | Pension must be completely ignored |
🧾 Conclusion
Circular No. 200 is a powerful tool for re-employed JCOs/OR to claim their rightful DR entitlement, provided their pay was fixed in line with the conditions mentioned. If you were denied DR due to improper pay fixation or lack of employer certification, it is essential to act now—obtain proper documentation, approach your PDA, and seek arrears. This ensures both financial justice and compliance with long-standing government instructions.
You may download Circular No 200 : Click here for PDF DOWNLOAD
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