Grant of Increase in pension to Civil Pensioners of the Federal Government as well as Retired Armed Forces Personnel.
The president has been pleased to sanction an increase @ 20% of net pension with effect from 1st July, 2012 until further order to all civil pensioners of the federal government including civilians paid from Defence estimates as well as retired Armed forces personnel and Civil Armed Forces Personnel.
However. 15% increase in pension allowed vide Para 2 of the Finance Division's O. M. No F. 4(1)-Reg.6/2010-721 dated 05.-07.2010 and the 15% increase in pension as allowed vide paras-15 dated 04.07.2011. shall be admissible to the new pensioners who would retire on or after 1.07.2012.
The 20% increase in pension as mentioned at para 1 above will also be admissible to the pensioners who would retire on or after 01.07.2012.
For the purpose of admissibility of increase in pension sanctioned in this O.M. the term "Net Pension" means "Pension being drawn" minus "Medical Allowance" which shall be continued to be admissible at the level of its admissibility as on 30.06.2012.
The Increase will also be admissible on family pension granted under the pension cum Gratuity Scheme, 1954, Liberalized Pension Rules, 1977. on pension sanctioned under the Central Civil Services (Extra Ordinary Pension) Rules as well as on the compassionate Allowance under CSR-353.
If the gross pension sanctioned by the Federal Government is shared with any Government in accordance with the rules laid down in Part-IV. The amount of the increase in pension will be apportioned between the Federal Government and the other Government concerned on proportionate hasis.
The benefit of increase in pension sanctioned in this O.M. will also be admissible to those Civil Pensioners of the Federal Government who are residing abroad (other than those residing in India and Bangladesh) who retired on or after 15.08.1947 and are not entitled to, or are not in receipt of pension increase under British Government's pension (increase) Acts. The payment will be made at the applicable rate of exchange.