RBE No.36/1986 Additional Dearness Allowance – Treatment for Retirement Benefits
No.PCIII/85/DP/1, dated 19.02.1986
Sub: Treatment of a portion of Additional Dearness Allowance as pay for the purpose of Retirement Benefits.
A copy, of Ministry, of Personnel, P.G. and Pension (Department of Pension and Pensioners’ Welfare)’s letter No.27/5/84-P&PW, dated, 15.01.1986 is reproduced below for information and necessary action. The contents of the previous letter of Ministry of Personnel dated 16.09.1985 was circulated by this Department’s letter of even number dated 04.10.1985.
Copy of Ministry of Personnel’s letter No.27/5/84-P&PW, dated 15.01.1986
The undersigned is directed to refer to this Department’s O.M.No.27/5/84-PU, dated 16.09.1985 on the above subject and to say that an error has crept in the illustration given in Annexure ‘A’ to this Office Memorandum. While DA and ADA of Rs.1240 p.m. for the months of June and July, 1984 at the average price index level 568 were to be taken into account for calculation of average emoluments, in the illustration given in Annexure ‘A’ to the Office Memorandum dated the 16th September, 1985 only DA and ADA of Rs.1210 were taken into account for calculation of average emoluments. Accordingly, a revised illustration is given in Annexure ‘A’.
Illustration: A Government servant drawing pay of Rs.1200 for one year retired on 31.03.1985:
(I) Particulars of pay, DP, Interim Relief at average price:-
| Index Level-320 | at 568 | |
| a | Pay Rs.1200 for all 10 months | Rs.1200 for 10 months |
| b | DP Rs.370 for all 10 months | DA treated as DP June & July 84 – 1240 p.m., Aug to March, 85 – 1270 p.m. |
| c | First IR – Rs.70 for all 10 months | First IR – Rs.70 for 10 months |
| d | Second IR – Rs.120 (Drawn for one month only) | Second IR – Rs.120 for one month. |
(II) Calculation of Average Emoluments
| a | 1200 x 10 = 12000 | Pay 1200 x 10 = 12000 |
| b | 370 x 10 = 37000 | DA, ADA 1240 x 2 = 2480 June & July |
| c | 70 x 10 = 700 | 1270 x 8 = 10160 Aug 84 to Mar 85 |
| d | 120 x 1 = 120 | First IR = 700 Second IR = 120 |
| Total = 16520 | Total = 25460 | |
| 16520 ÷ 10 = 1652 | 25460 ÷ 10 = 2546 | |
| e | Average emoluments 1652 | Average Emoluments 2546 |
(III) Pension calculation:
| Average emoluments Rs.1652 | Average Emoluments Rs.2546 |
| First Rs.1000 at 50% = 500.00 | First Rs.1000 at 50% = 500.00 |
| Next Rs.500 @ 45% = 225.00 | Next Rs.500 @ 45% = 225.00 |
| Balance 152 @ 40% = 61.00 | Balance 1046 @ 40% = 418.40 |
| =786.00 | =1143.40 |
| Pension at average index level 320 plus relief therein admissible at index level 568 | Pension at average index level 568 |
| Rs.786 + 400 = 1186.00 | Rs.1144.00 |
(IV) Personal Pension:
Rs.1186.00 – Rs.1144.00 = Rs.42.08
Download Railway Board Circular RBE No.36/1986