When Pay Scale Is Revised Retrospectively, Entitled Pensioners Must Be Given Benefits Even If They Retired Before Revision Order: Kerala HC

The Kerala High Court has reiterated that when pay scale is revised retrospectively, then the revised pay scale must be considered while calculating pension even if the pensioners have retired prior to the issuance of the pay revision order, provided they are entitled to the revised pay scale. A Division Bench of Justice A.Muhamed Mustaque and Justice P. Krishna Kumar ordered thus: “The law is settled that when the pay is revised retrospectively, that revised pay should be taken into account when calculating the pension, even if the pensioner retired prior to the issuance of the pay revision order, provided he is entitled to get the revised pay.” As per the facts, an order dated May 07, 2011 was issued by which the Government revised pay and allowance of college/University teachers in the State who receive UGC pay scale. The Kerala Administrative Tribunal set aside the letter of the government which had clarified that revised pension would be effective from 2009 and not as per government order revising pay effective from 2006. The Court stated that pensioners are entitled to pension as provided under Rule 65 of Part III of the Kerala Service Rules, which reads thus, “Fifty percentage of last ten months' average emoluments subject to the maximum limit for pension prescribed by the Government from time to time.” The Court thus stated that when government order provides that pension of persons retired on or after 2006 are entitled to revised pay scale, there was no reason for the government to postpone the pension benefits up to 2009. The Court stated, “When the KSR makes it clear that every pensioner is entitled to get his pension fixed on the basis of the average of the last ten months' pay drawn by him, the Government is not justified in postponing the benefit to a later date for the mere reason that the pension of the other State Government employees was revised from that date.” Finding no reason to interfere with the Tribunal's order the high Court set aside the clarification letter of the Government postponing the pension benefits and ordered that pensioners shall paid arrears based on the government order that revised pay retrospectively.