Unlike the long-standing Central Civil Services (Pension) Rules, 1972, the Government of India notified the Central Civil Services (Pension) Rules, 2021 on 20 December 2021, consolidating and replacing the 1972 Rules for Central Government employees who were appointed on or before 31 December 2003. The new rules reorganized pension provisions, clarified several existing practices, and incorporated various instructions issued over the years by the Department of Pension and Pensioners’ Welfare (DoPPW).
Among the provisions that continue to generate interest among re-employed ex-servicemen is the rule relating to counting of military service rendered before civil employment. Many veterans are asking an important question:
Does Rule 20 of CCS (Pension) Rules, 2021 have any relevance to the pay fixation of re-employed ex-servicemen under DoPT orders dated 31.07.1986?
The short answer is:
No. Rule 20 of CCS (Pension) Rules, 2021 primarily deals with pensionary benefits and counting of qualifying service. It does not alter or override the separate rules governing pay fixation of re-employed ex-servicemen issued by DoPT, including the landmark orders dated 31.07.1986.
This article explains the legal position in detail.
Evolution from CCS (Pension) Rules, 1972 to CCS (Pension) Rules, 2021
The CCS (Pension) Rules, 2021 were notified by the Department of Pension and Pensioners’ Welfare in supersession of the CCS (Pension) Rules, 1972. While the language and numbering of several rules changed, many substantive provisions remained largely unchanged.
For ex-servicemen, the most relevant provision is:
Rule 20 – Counting of Military Service Rendered Before Civil Employment
Rule 20 provides the conditions under which previous military service can be counted as qualifying service for civil pension after re-employment in a civil post.
What Rule 20 Actually Says
The rule applies to a Government servant who:
- Rendered military service;
- Was re-employed in a civil post on or before 31.12.2003;
- Exercised an option under CCS (Pension) Rules, 1972;
- Ceased to draw military pension; and
- Refunded the prescribed retirement benefits.
If these conditions are fulfilled, the previous military service may be counted as qualifying service for civil pension.
Important Clarifications Under Explanation-1
The CCS (Pension) Rules, 2021 contain an important clarification that often gets overlooked.
For counting military service:
Pension Drawn Before Re-employment Need Not Be Refunded
The pension already drawn before joining the civil post was not required to be refunded.
Ignored Portion of Pension Need Not Be Refunded
The element of military pension that was ignored while fixing pay on re-employment was also not required to be refunded.
Only Certain Benefits Were Adjustable
Where pension equivalent of gratuity or commuted value had been taken into account for pay fixation, adjustment against gratuity or commutation benefits was required. Only the balance amount, if any, had to be refunded.
This explanation is significant because it recognizes that a portion of military pension may have been ignored for pay fixation purposes, thereby indirectly acknowledging the existence of separate pay fixation orders.
What Happens if an Ex-Serviceman Chooses to Retain Military Pension?
Explanation-2 of Rule 20 makes the position very clear.
If an ex-serviceman:
- Continued to draw military pension; or
- Retained gratuity received from military service,
then the previous military service would not count as qualifying service for civil pension.
In simple terms:
Option Chosen Result
Military pension surrendered and prescribed benefits refunded Military service can count towards civil pension
Military pension retained Military service cannot count towards civil pension
Position of Ex-Servicemen Re-employed After 01.01.2004
Rule 20 also clarifies the position of ex-servicemen who entered civil employment after 31 December 2003.
Such personnel:
- Continue to draw military pension;
- Retain retirement gratuity;
- Are covered by the National Pension System (NPS) or the applicable pension architecture governing post-2004 recruits.
Therefore, the old option of counting military service towards civil pension is largely a legacy provision applicable to pre-2004 entrants.
Does Rule 20 Have Any Connection With Pay Fixation?
This is where confusion frequently arises.
Pension Rules and Pay Fixation Rules Are Different Subjects
Rule 20 deals with:
- Qualifying service;
- Pension entitlement;
- Counting of military service;
- Refund of pensionary benefits.
It does not prescribe how pay is to be fixed on re-employment. Pay fixation is governed by separate instructions issued by the Department of Personnel and Training (DoPT) and the Ministry of Finance.
The Landmark DoPT Orders Dated 31.07.1986
The DoPT Office Memorandum dated 31 July 1986 remains the foundational policy governing pay fixation of re-employed pensioners, including ex-servicemen.
The order introduced special concessions for PBORs and certain categories of ex-servicemen by allowing specified portions of military pension to be ignored while fixing pay in civil employment.
Over the years, several clarifications and amendments were issued, but the basic framework of pay fixation continued to be governed through DoPT instructions rather than pension rules.
Why Rule 20 Cannot Override DoPT Pay Fixation Orders
There are several legal reasons.
1. Different Statutory Fields
Rule 20 governs pension and qualifying service.
DoPT OMs govern pay fixation.
Both operate in different fields and serve different purposes.
2. No Express Repeal
The CCS (Pension) Rules, 2021 do not contain any provision repealing or superseding DoPT’s pay fixation orders for re-employed ex-servicemen.
3. Explanation-1 Recognizes Pay Fixation Principles
Explanation-1 itself refers to:
“the element of pension which was ignored for fixation of pay”
This indicates that the pension rules acknowledge the existence of separate pay fixation provisions rather than replacing them.
Why Is This Issue Being Debated Today?
In recent years, several re-employed ex-servicemen have approached courts and tribunals seeking broader pension disregard benefits during pay fixation.
The debate largely stems from differing interpretations of:
- CCS (Pension) Rules;
- DoPT OMs;
- Pension disregard provisions;
- PBOR pay fixation concessions.
However, pension counting provisions and pay fixation provisions are not the same thing and should not be read interchangeably.
The Most Important Distinction
Counting Military Service
Purpose:
- Increase qualifying service for civil pension.
- Governed by CCS (Pension) Rules.
Ignoring Military Pension for Pay Fixation
Purpose:
- Determine initial pay in civil employment.
- Governed by DoPT pay fixation orders.
These are two independent benefits and one does not automatically create entitlement to the other.
Impact on Re-employed PBORs
For PBORs re-employed in Central Government service, the continuing controversy revolves around:
- Extent of pension to be ignored;
- Applicability of successive DoPT clarifications;
- Interpretation of the 31.07.1986 OM;
- Effect of later pay commission recommendations.
The CCS (Pension) Rules, 2021 neither grant nor withdraw those pay fixation benefits. They merely restate the pension-related provisions regarding counting of military service rendered before civil employment.
Latest Position in 2026
As of 2026:
- CCS (Pension) Rules, 2021 remain the governing pension rules for Central Government employees covered under the old pension scheme.
- Rule 20 continues to regulate counting of military service rendered before civil employment.
- The rule applies primarily to employees who entered civil service on or before 31.12.2003.
- Pay fixation of re-employed ex-servicemen continues to be governed by DoPT instructions and related judicial interpretations, including the principles originating from the DoPT OM dated 31.07.1986.
Conclusion
The transition from CCS (Pension) Rules, 1972 to CCS (Pension) Rules, 2021 did not fundamentally change the legal framework relating to counting of military service rendered before civil employment. Rule 20 merely consolidates and clarifies the earlier provisions applicable to ex-servicemen who joined civil service on or before 31 December 2003.
Most importantly, Rule 20 is a pension rule, not a pay fixation rule. It governs whether previous military service can be counted as qualifying service for civil pension. It does not determine how pay is fixed upon re-employment.
Therefore, the long-standing DoPT pay fixation orders dated 31.07.1986 and subsequent clarifications continue to remain the primary legal instruments for determining the pay fixation of re-employed ex-servicemen, while Rule 20 of CCS (Pension) Rules, 2021 deals only with pensionary consequences and counting of past military service.
Source: Department of Pension & Pensioners’ Welfare – CCS (Pension) Rules, 2021