Clarification on Pension Fixation Calculation

In a recent legal case, the court delved into the intricacies of pension fixation calculation, focusing on the interpretation of relevant circulars and rules. The court’s analysis shed light on the importance of computing average emoluments accurately for retirees and highlighted the need for adherence to specific guidelines and protocols. This case summary provides a valuable insight into the court’s legal reasoning and decision-making process in matters concerning pension fixation.

Facts

  • The fixation of the basic pension was challenged in earlier litigation.
  • The Accountant General correctly prepared the pension paper as per High Court direction.
  • Division Bench upheld the pension at Rs. 19,334/- in revised scale.
  • Pension was revised to Rs. 11,127/- w.e.f. 1.1.2006.
  • High Court held that the fixation of pension at Rs. 7,138/- was erroneous and should be Rs. 8,907/- pre-revised.
  • Error in verification report showed basic pension as Rs. 7,138/- instead of Rs. 8,907/- pre-revised.
  • Appeal outcome confirmed judgment allowing Writ Petition No. 2573 of 2016 for correct pension fixation.
  • Respondent retired as selection grade Lecturer on voluntary retirement w.e.f. 7.2006.
  • Last pay drawn was Rs. 46,400/- and pension rightly fixed at Rs. 19,333/- for completing qualifying service.
  • Fixation @ Rs. 7,138/- in pre-revised scale and Rs. 11,127/- in revised scale found erroneous.
  • The court noted that prayer was made in WP(C) No 2573 of 2016 to fix the pension at Rs. 8907 in the pre-revised scale and Rs. 19333 post revision of pay and pension for the appellant.

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Arguments

  • Learned counsel for the appellant argued that as per Circular G.O.(P) No 230/2012/Fin. dated 19.04.2012, average emoluments are to be considered for computing the 10 months’ emoluments for employees who retired after 1.1.2006.
  • Average emoluments are defined in Clause 63 of Annexure P-18 of Kerala Service Rules.
  • The appellant contended that the respondent retired after re-joining for one month from a two-year leave without allowances.
  • The appellant argues that the impugned order, confirming the learned Single Judge’s order, is unjustified.
  • Respondent’s counsel argued in favor of the Accountant General’s decision on pension fixation.
  • They relied on circulars and previous High Court orders to support their argument.
  • Respondent’s counsel believes that the High Court’s order does not require any interference.

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Analysis

  • Average emolument calculation as per Note 1 Clause 63 is crucial
  • Notional enhancement of pay in the pre-revised scale for retirees after 1.1.2006
  • Clarification on computing 10 months emoluments for retirees with pre-revised scale pay
  • Absence from duty or suspension impact on average emoluments calculation
  • Reverting arguments of appellants in reference to revised Circular dated 19.4.2012
  • Illustration of original Circular G.O. (P) No 211/2011/Fin dated 7.5.2011
  • Modification of clause for computing 10 months emoluments in Circular G.O.(P) No. 230/2012/Fin dated 19.4.2012
  • No mention of contradictory details in the counter-affidavit

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Decision

  • No error found in the order impugned
  • No interference warranted in this appeal
  • Appeal is dismissed

Case Title: THE STATE OF KERALA Vs. ANIE LUKOSE (2022 INSC 132)

Case Number: C.A. No.-000835-000835 / 2022

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