Pension - Dearness Allowance - Regulation of Dearness Allowance to Pensioners after the conversion of 50% Dearness Allowance as Dearness Pension with effect from 1-1-2006 - Orders - Issued.

Read the following :-

(1) G.O.Ms.No.58, Finance (Pension) Department, dated: 13.01.2006

(2) G.O.Ms.No.105, Finance ( Pay Cell ) Department, dated:07.02.2006

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In the Government Order first read above, orders have been issued sanctioning 71% of Dearness Allowance to the State Government Pensioners / Family Pensioners with effect from 1-1-2006. In the Government Order second read above, orders have been issued for the conversion of 50% of Dearness Allowance as Dearness Pension with effect from 1-1-2006 and this Dearness Pension would be deducted from the existing rate of Dearness Allowance.

2. The Government therefore direct that the revised rate of Dearness Allowance shall be 21% with effect from 1-1-2006 and this revised rate of Dearness Allowance shall be calculated on the Basic Pension / Family Pension and Dearness Pension / Dearness Family Pension.

3. In respect of the employees retiring after 1-1-2006, their pension would be fixed based on the average pay, which would include 50% of Dearness Pay and therefore there will be no element of Dearness Pension to them. The Government therefore direct that in respect of the pensioners who retire after 1-1-2006, Dearness Allowance shall be 21% of their pension.

4. The widows and children of deceased Contributory Provident Fund / Non-Pensionable establishment beneficiaries of State Government and former District Board who are in receipt of ex-gratia amount are sanctioned 63% of Dearness Allowance on the ex-gratia amount in the Government Order first read above. From 1-1-2006, Dearness Allowance equal to 50% of ex-gratia would be converted into Dearness Ex-gratia. Consequently, revised Dearness Allowance from 1-1-2006 shall be at the rate of 13% on the basic ex-gratia and Dearness ex-gratia.

5. The amount of Dearness Allowance involving a fraction of a rupee shall be rounded off to the next higher rupee. It will be the responsibility of the Pension Disbursing Authority including Public Sector Banks etc. to calculate the quantum of Dearness Allowance payable in each individual case.

6. Pending formal authorisation by the Accountant General, the Dearness Allowance shall be paid straightaway by the Pension Pay Officer, Chennai-6, Treasury Officers and Public Sector Banks concerned.

7. This order will apply to the following categories of pensioners:-

Government pensioners, Teacher pensioners of aided and local body educational Institutions and other pensioners of local bodies.

Present and future family pensioners; In the case of divisible family pensioners, Dearness Allowance shall be divided proportionately;

Former Travancore-Cochin State pensioners drawing their pension on 1st November, 1956 in the Treasuries situated in the areas transferred to Tamil Nadu State on that date, ie., Kanniyakumari District and Shencottah taluk of Tirunelveli District.

Pensioners drawing their pension on 1^st April, 1960, in the Tiruttani Sub-Treasury in whose cases pensions were sanctioned by the Composite Madras State prior to 1^st October, 1953 or by the Andhra Pradesh State prior to 1^st April, 1960.

Pensioners of the Ex-Governor's Head Establishment in receipt of 'Mustering out pension;

Pensioners who are in receipt of special pensions under Extra-ordinary Pension Rules, Tamil Nadu and Compassionate Allowance;

Ex-Pudukkottai pensioners.

Surrendered and thrown out Teachers in the transferred areas of Kanniyakumari district and Shencottah taluk of Tirunelveli district.

8. The increased expenditure due to the sanction of Dearness Allowance in this order is allocable among the successor States as per the provisions laid down under the State Reorganisation Act, 1956.