The Department of Personnel & Training (DoPT) has issued new guidelines on 14th October 2024 regarding the grant of notional increment to retired Central Government employees. This move clarifies the pensionary benefits for those employees who retired on 30th June or 31st December, allowing them to receive a notional increment on 1st July or 1st January respectively, aimed at simplifying pension calculations.
The issue traces back to various legal rulings, including a landmark 2017 decision by the Madras High Court, which granted a notional increment to a petitioner for the purpose of calculating pension benefits. Subsequent cases led to widespread demands for clarity and consistency in how such increments are applied.
Key Highlights of the Guidelines:
1. Eligible Retirees: Employees retiring on 30th June or 31st December will receive a notional increment on 1st July or 1st January respectively.
2. Pension Calculation Only: This increment is only applicable for pension calculation and not for any other benefits such as arrears.
3. Supreme Court Involvement: The guidelines follow the Supreme Court’s interim orders of 6th September 2024, which specified that notional increments would apply for retirees with pending applications or successful petitions.
Court Proceedings:
The clarification was made necessary by multiple court cases that followed the 2017 ruling. The latest Supreme Court directions, dated 6th September 2024, provided relief to retired employees with ongoing or successful petitions. It was stated that these retirees would receive enhanced pensions, with no payments due for the period before May 2023.
Implementation Timeline:
The new guidelines will remain in effect until further review by the Supreme Court, expected in November 2024. Ministries and departments have been instructed to implement these changes in compliance with legal directives.
These guidelines offer much-needed clarity to thousands of retired government employees, ensuring fairer treatment in pension calculations without retroactive disruptions.
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