The detailed description on Increases on Gross Pension and Payment of Increased Pension from Date of Restoration Punjab has been explained by Mr. Agha Amir for the info/guidance of the concerned pensioners. The summary of the same is as under:

1. Payment of Restored Pension by including (notionally) all increases on Gross Pension

2. The above statement shows that orders issued by Federal government at S.Nos. 1 (a) and (b) were followed by Punjab government in next following respective calendar months.

3. However, in case of action at 1 (c) and (d), Punjab government took more than 2 years in following the Federal government orders. This is because Punjab government took the (wrong) stand that (i) its pension rules were different from that of Federal government; and (ii) it was not under legal obligation to follow the Federal Tribunal Orders, as upheld by Supreme Court.  Ultimately, Punjab government had also to give the benefit of all increases from 01 Dec 2001 onward also, on commuted part, upon (and with effect from date of) restoration of the commuted part, under Punjab Service Tribunal / High Court orders, upheld by Supreme Court.

4. Federal government had deferred all payments to the financial year 2013-14, as evident from its O.M. O.Ms. No. F.13 (13)-Reg.6/2011 dated 11 Mar 2013, which states that “budgetary cover is not provided in the current financial year” (2012-13). Since Punjab government had not till then accepted its obligation to pay all increases, hence no budget provision was made during the financial years 2013-14 and 2014-15.  The arrears continued to accumulate during these two years.
5. Orders issued by Lahore High Court, after hearing of case Crl. Org. No. 597-W/2015 on 17 April 2015, included the following directions:-

Para 1 (relevant extract).  They (Punjab government) submitted that the said plan includes the current payment of pension as well as, the arrears.  ………The government in this view of the matter sought additional time to revise the said Payment Plan (for arrears alone).  They were directed to keep current payment separate from arrears.

Para 2 (relevant extract).  The import of the aforesaid judgment and the earlier judgments…………………..is that the quantum of 50% pension, when it becomes payable after the period of commutation, should be equal to the drawn 50% pension at the time.  Government is directed to rework the Payment Plant keeping view …………

Para 3 – relevant extract.

1. After the period of commutation the 50% pension payable will be double the amount of 50% of the drawn pension at the time and has to be paid to the petition immediately.

1. In case of arrears, accruing in this regard after the period of commutation, the government may make Payment Plan and deal with this amount separately.

Para 4        From the above exercise, I am willing to grant the respondent government time to work out the Payment Plan of the arrears only.  Respondent government will ensure that as far as the current payment of pension is concerned, it will be regularized in the light of aforesaid judgments.

6. While conveying the Court orders, Finance Department needed to have issued specific clear-cut directions that:-

(a) All pension cases (where the restoration has fallen / falls due) are to be revised by allowing all increases on Gross Pension on notional basis, the increased amount being payable from date of restoration.

(b) Current dues: Payment of increased pension is to be made for the month of July 2015 onward in all cases as pension expense for the current year.

(c) Arrears of pension (where the restoration fell due up to 30 June 2015) are to be paid in accordance with Payment Plan to be issued subsequently.  (Initial payment plan was submitted on 17 June 2015 which was not approved by Court.  Final Payment plan for payment of arrears during 3 years 2016-17 to 2018-19 was issued as per Finance Department No.FD.SRIII.4-41/2008 dated 7 Oct 2016).

7. Instead of issuing clear-cut orders to the above effect, copies of Court orders were simply forwarded by Finance Department to AG Punjab and all District Accounts Officers through FD.SRIII.Misc./2015 dated 15 July 2015. All DAOs were left to conclude for themselves the correct interpretation of court orders.
8. This led to the confusion at the DAO level that revision of pension, by allowing all increases on Gross Pension, was to be done only where arrears prior to 30 June 2015 were involved, against specific allocation of additional funds. The DAOs have been refusing similar recalculation of pension (by giving all increases notionally on Gross Pension, and then paying current pensions) where restoration has occurred from 1 July 2015 onward.  They are restoring only the commuted part, and perhaps increase for the year of restoration alone.
9. This action of DAO may lead to contempt of those orders of High Court which require specifically that pensions for 1 July 2015 have to be treated as Current, and dealt with separately from arrears up to 30 June 2015. Current restored pensions, along with all increases, do not require any special additional allocation of funds and have to be paid in compliance of Tribunal orders, as upheld by Supreme Court.
10. There is need for immediate orders from Finance Department and AG Punjab to all DAOs that all restorations, occurring 01 July 2015 onward, have to be paid by giving the benefit of all increases notionally on Gross Pension, and paid from current budget allocations from the date of restoration. Special additional allocations relate only to arrears for the period prior to 1 July 2015.
11. All pensioners, who are being refused by DAOs revision of their pension upon restoration by giving all increases on Gross Pension, need to take up the issue with concerned authorities, e.g., DAOs, AG Punjab, Finance Department. Those who have actually been refused the benefit may lodge Contempt of Court case with the Lahore High Court.
12. Pensioners needing copies of orders quoted above may email to me direct [email protected]

Agha Amir Ahmad: 0300 9800246 / 0320 8557108

Supporting documents to this case are as under: