No. 3/19/2009 Estt. Pay II
Ministry of Personnel, Public Grievances 8 Pensions
Department of Personnel & Training
New Delhi, the 8th November 2010
Office Memorandum
service Pay
The undersigned is directed to refer to the orders issued vide OM dated
5.4.2010 on fixation of pay of re-employed pensioners. These orders inter-alia lay
down that on re-employment in civilian organizations, Military Service Pay shall
not be admissible. However, the benefit of MSP given to all retired Defence
Forces officerslpersonnel by reckoning it at the time of calculation of their
pension (notionally in the case of pre-1.1.2006 pensioners) should not be
withdrawn. Accordingly, while the pension of such re-employed pensioners will
include the element of MSP, they will not be granted MSP while working in
civilian organizations.
In the instructions issued by the Ministry of Defence vide their letter No.
1/69/2008/D(Pay/Service) dated 24'h July 2009, Pre-retirement pay has been
defined as under:
(i) In respect of re-employment taking place onlor after 1.1.2006 preretirement
pay for those who retired after 1.1.2006 means the pay in
the pay band plus grade pay but inclusive of Non-Practicing
Allowance (NPA) if any, last drawn before retirement.
(ii) In case of officers who retired before 1 .I ,2006 and also those who retired
after 1.1.2006 in the pre-revised pay scales without opting for the revised
pay scales promulgated on or after 1.1.2006 the pay will be basic pay
including stagnating increment and Rank pay plus the Dearness pay and
Dearness allowance drawn at the time of retirement.
As per these orders, for pre-2006 retirees rank pay is included as a part of
pay but for post -2006 retirees, the MSP is not reckoned in the pre-retirement pay
for the purposes of pay fixation on re-employment. However, for pension
purposes the reckonable emoluments are - basic pay + grade pay + MSP + NPA
wherever admissible. Therefore, while MSP is not taken into consideration for
the purposes of pay fixation on re-employment, the element of MSP in pension is
deducted.
It has been decided in consultation with the Department of Expenditure,
that since the element of MSP is not reckoned in the pay fixation on reemployment,
it need not be reduced from the pension either. Hence. In respect
of all those Defence officers/personnel, whose pension contains an element of
MSP, that need not be deducted from the pay fixed on re-employment.
( Mu k e s h Chaturvedi )
Deputy Secretary
Source:www.persmin.nic.in
