SPARSH Will Deduct DR With Life Certificate ? Analysis Of PCDA Circular No. 200 And Pension Regulations

Re-employment after military retirement is common among Junior Commissioned Officers (JCOs) and Other Ranks (ORs). However, confusion persists regarding Dearness Relief (DR) on pension and pay fixation rules in Central/State Government offices, PSUs, autonomous bodies, and banks. The PCDA (Pensions) Circular No. 200 dated 12 April 2018 provides authoritative clarification on when DR is admissible and the exact criteria for determining eligibility.

This article explains the circular in simple terms, links it to relevant pension regulations, and offers a step-by-step action plan for affected ex-servicemen.

Why DR Eligibility Matters for Re-Employed JCOs/OR

Thousands of PBOR retirees lose DR during re-employment because:

Pay fixation is wrongly done by protecting last pay drawn during military service
Pension is incorrectly deducted during pay fixation
DR is automatically stopped in the SPARSH system after marking “Re-employed”
Employers do not issue mandatory pay fixation certificates

This results in loss of DR arrears running into lakhs of rupees.

Circular 200 resolves these issues by clearly defining who is eligible and who is not.

Understanding PCDA Circular No. 200 (12.04.2018)

Circular 200 consolidates & clarifies instructions issued earlier under:

DoPT OM dated 18 July 1997 (core DR eligibility rule)
PCDA Circular 166
PCDA Circular 173
PCDA Circular 179

Five major points of PCDA Circular 200

This circular provides clarifications regarding the payment of dearness relief to re-employed pensioners and employed family pensioners.

Payment of Dearness Relief

Prior to 18/07/1997, dearness relief for re-employed pensioners and family pensioners was suspended during re-employment under government or statutory bodies.
From 18/07/1997, specific provisions were established for re-employed pensioners, particularly those who held posts below Group ‘A’ or ranks below commissioned officers. These pensioners can receive dearness relief if their re-employment pay is fixed at the minimum of the pay scale, ignoring their pension amount.
Certificates from employing departments must confirm the pensioner’s previous post and the pay fixation details.
For re-employed pensioners who held Group ‘A’ posts or commissioned officer ranks, their pay is fixed based on their last drawn salary, and they are not entitled to dearness relief on their pension during re-employment.

Conditions for Dearness Relief

Disability pensions are treated similarly regarding dearness relief during re-employment.
If a pensioner ceases re-employment, dearness relief becomes payable from that date, requiring a cessation certificate from the employer.
Certain categories, such as those receiving consolidated pay without dearness allowance or elected officials, are eligible for dearness relief regardless of re-employment status.
Employed family pensioners are entitled to dearness relief on their family pension, as it is not considered in their pay fixation.

This circular aims to clarify the eligibility and conditions under which dearness relief is applicable to various categories of pensioners and family pensioners, ensuring compliance with government regulations.

These collectively define DR entitlement for Personnel Below Commissioned Rank (PBOR) during re-employment.

Eligibility for DR on Pension During Re-Employment

As per Government of India decision dated 18/07/1997 and PCDA Circular 200:

Re-employed JCOs/OR are eligible for DR on pension IF AND ONLY IF all the following conditions are met:

✔ Pension is completely ignored for pay fixation

No part of the military pension should be adjusted/deducted while fixing re-employed pay.

✔ Pay is fixed at the minimum of the pay scale of the re-employed post

This is the most crucial condition.

✔ No last pay protection (LPP) allowed for PBOR

PBOR are not entitled to last pay protection during re-employment.

✔ Advance increments allowed only if

Issued under a valid departmental policy, and
Even after increments, pay does not exceed last pay drawn in the Army.

When these conditions are met, the re-employed ex-serviceman continues to receive full DR on pension.

Who is NOT Eligible for DR During Re-Employment

DR is not admissible if any of the following apply:

✘ Last pay drawn in the Army is protected

If re-employed pay is fixed equal to or above last military pay.

✘ Any portion of pension is deducted during pay fixation

Even partial deduction makes the individual ineligible.

✘ Pay is fixed above minimum due to last pay protection

Not allowed for PBOR.

✘ Advance increments granted solely to match previous pay

This is treated as indirect last pay protection.

In all the above cases, the ex-serviceman is categorized as “Re-employed without DR”.

FIVE 5 MINUTES OF THE VIDEO SOUND EFFECTED AND REMAINING OK.

Download Format of Pay Fixation certificate and submit to SPARSH PCDA so that your DR is not deducted after submission of Life Certificate. Link below – https://support.esminfoclub.com/

Mandatory Certification Required for DR Eligibility (As per Circular 200 Para 3(i)(A))

To release DR, PCDA/PDA requires a certificate from the employer stating:

Individual is PBOR / JCO / OR (not a Group A officer)
Military pension was fully ignored in pay fixation
Pay was fixed at minimum of re-employed pay scale
Advance increments (if any) were:
- Based on an approved policy
- Not linked to last pay protection

This certificate is essential for banks, DPDOs, and SPARSH to restore DR.

What Re-Employed JCOs/OR Should Do Now: Step-by-Step Guide

🔶 1. Collect Pay Fixation Order

Check whether:

Pension is ignored
Pay is fixed at minimum scale
No last pay protection given

🔶 2. Request Employer’s Certificate

Ask your department to issue the DR Eligibility Certificate as required in Circular 200.

If advance increments were given, ask for the copy of the policy order.

🔶 3. Submit to Your PDA / SPARSH

Submit:

Pay fixation order
DR eligibility certificate
Re-employment joining order

Request immediate release of DR.

🔶 4. If DR Not Restored

File a representation / RTI to PCDA (Pensions), Prayagraj quoting Circular 200.

🔶 5. Claim DR Arrears

You are entitled to arrears from date of re-employment if wrongly denied.

Special Note for SPARSH Users

Many PBOR faced automatic DR stoppage after updating re-employment details in SPARSH.

To restore DR:
✔ Upload pay fixation certificate
✔ Upload DR eligibility certificate
✔ Submit service details
✔ Raise a service request through SPARSH portal

After verification, SPARSH releases pending DR and arrears.

Practical Scenarios (As per Circular 200)

Scenario	DR Admissible?	Reason
JCO/OR re-employed in Central Govt with pay fixed at minimum, pension ignored	✅ Yes	Meets all conditions
JCOs/OR re-employed in PSU with last pay protection	❌ No	Last pay protection makes DR ineligible
PBOR given 3 increments as per policy but still below last pay drawn	✅ Yes	Still considered minimum scale
Pension partially deducted in pay fixation	❌ No	Pension must be fully ignored

Conclusion: Circular No. 200 Protects the Rights of JCOs/OR

PCDA Circular No. 200 is a crucial guideline ensuring financial justice for re-employed ex-servicemen.
If your pay was fixed at the minimum scale and your pension was ignored, you are fully eligible for Dearness Relief.

If DR is denied due to:

Faulty pay fixation
Lack of employer certification
SPARSH error

You must act immediately and claim your entitlement along with arrears.

If you want, I can also prepare:Short Answer: No — Circular No. 200 does not apply equally to all ex-servicemen. Officers and PBOR (JCOs/OR) are treated differently.

Below is the clear and rule-based explanation:

Who Exactly Is Covered Under PCDA Circular No. 200?

Circular No. 200 (dated 12.04.2018) is specifically meant for re-employed Personnel Below Commissioned Rank (PBOR), i.e.:

JCOs
OR (NCOs, jawans)
All personnel below commissioned rank

The circular is based on the Government of India decision dated 18 July 1997, which grants DR to PBOR during re-employment if pension is ignored and pay is fixed at minimum.

Who Is NOT Covered? → Commissioned Officers

For Commissioned Officers (Lt, Capt, Maj, Lt Col, Col, Brig, Maj Gen, Lt Gen):

👉 Circular No. 200 is not applicable.
👉 Officers cannot receive DR during re-employment in Government, PSU, Banks, Autonomous Bodies, Universities, etc.

Why Not Applicable?

Because officers fall under a different rule-set:

Their pay is not required to be fixed at minimum scale.
Their last pay drawn often gets protected or taken into account.
They are treated as Group-A officers, for whom the rule is clear:
Commissioned officers do NOT get DR on pension during re-employment.

This is as per:

CCS (Fixation of Pay of Re-employed Pensioners) Orders
DoPT OM dated 31 July 1986
DoPT OM dated 18 July 1997 (DR admissibility restriction)
PCDA Circular 102 & Circular 95
Para 4 of Circular 200 itself (officers excluded)

Simple Explanation: Why PBOR and Officers Are Treated Differently

PBOR → Eligible for DR during Re-employment

Because:

Their pension is ignored
Pay is fixed at minimum
They do NOT receive last pay protection
So the Government allows them to draw both pension + DR

Officers → Not Eligible for DR during Re-employment

Because:

Their re-employed pay is not required to be fixed at minimum
Their military Last Pay Drawn (LPD) is often protected
They fall under Group-A category
Therefore they must choose either full re-employed salary OR pension without DR

Final Position (Authoritative & Rule-Based)

Category	Covered by Circular 200?	DR During Re-Employment?
PBOR (JCOs/OR)	✔ Yes	✔ Yes (if pension ignored & pay fixed at minimum)
Commissioned Officers	❌ No	❌ No DR (as per 18/07/1997 rule)