Employees retiring on 30 June or 31 December are entitled to one notional increment for pension fixation.

The applicants were retired employees of the Department of Posts, Bihar Circle. Applicant No. 1 retired as Sub-Postmaster, Dighwara Sub-Office, on 30 June 2023; Applicant No. 2 retired as Sub-Postmaster, Jalalpur Bazar Sub-Office, on 31 December 2022; and Applicant No. 3 retired as LSG Postal Assistant, Chapra Head Office, on 30 June 2023.

They claimed one notional annual increment falling due on 1 July or 1 January immediately after their respective dates of retirement, for the purpose of refixation of pensionary benefits.

The Tribunal permitted their common adjudication through MA No. 4043/2026 and thereafter heard the Original Application at the admission stage with the consent of the parties.

Whether employees who retire on 30 June or 31 December, having completed the requisite preceding year of service and otherwise satisfying the conditions of satisfactory service and good conduct, are entitled to one notional annual increment falling due on 1 July or 1 January respectively?

Whether such notional increment is required to be taken into account for refixation of pension, and from what date the enhanced pension is payable?

The Tribunal exercised jurisdiction under Section 19 of the Administrative Tribunals Act, 1985.

It relied principally on Director (Admn. & HR), KPTCL v. C.P. Mundinamani & Ors., Civil Appeal No. 2471 of 2023, decided on 11 April 2023, wherein the Supreme Court upheld the grant of one annual increment earned on the last day of service for the preceding year, subject to satisfactory service and good conduct.

It also relied on Union of India v. M. Siddaraj, particularly the Supreme Court’s interim directions dated 6 September 2024, under which third parties were to receive pension calculated by including one increment with effect from 1 May 2023, without arrears of enhanced pension for the period before 30 April 2023.

The Tribunal further applied DoP&T Office Memorandum No. 19/116/2024-Pers.Pol.(Pay)(Pt.) dated 14 October 2024, which authorised grant of the notional increment to eligible Central Government employees retiring on 30 June or 31 December for calculating pension, subject to verification and the outcome of the pending legal proceedings.

The Tribunal held that the applicants had rendered the full qualifying period preceding the date on which the annual increment became due and had retired only one day before the increment date.

Applying the ratio of C.P. Mundinamani and the implementation framework reflected in M. Siddaraj and the DoP&T Office Memorandum, the Tribunal found that the fact of retirement on 30 June or 31 December could not deprive an otherwise eligible employee of the increment earned through the preceding year’s service.

However, entitlement remained subject to verification of the applicants’ service records, qualifying service, satisfactory work and good conduct.

Consistently with the Supreme Court’s interim directions, the Tribunal limited payment of enhanced pension to the period commencing on 1 May 2023 and excluded enhanced pension for the period before 30 April 2023.

The respondents were directed to examine the applicants’ service records and, if they satisfied the eligibility conditions, grant one notional annual increment falling due on 1 January or 1 July, as applicable, within twelve weeks from receipt of the certified copy of the order.

The respondents were further directed to refix the applicants’ pension by including the notional increment, with enhanced pension payable from 1 May 2023; no enhanced pension was payable for the period before 30 April 2023.

The OA and pending miscellaneous application were disposed of without any order as to costs.