10 percent increase in pension: employees retired prior March 1, 1997 entitled to get ad hoc relief: SC

The apex court setting aside the Federal Service Tribunal, Islamabad, judgement held that ad hoc relief of 10% increase granted in pension in 1997 is only admissible to employees who stood retired prior to 01.3.1997. A two-judge bench, comprising Justice Faisal Arab and Justice Syed Mansoor Ali Shah on April 16 after hearing the arguments of the counsels had reserved the judgement, which was announced on Monday.
The Prime Minister in his speech to the nation on 23.2.1997 had announced ad hoc relief for the government employees including an increase of Rs 300 per month in their salaries with effect from 01.03.1997 and an increase in the pension by 10%. This announcement was officialised through Office Memoranda Nos F 1(17) Imp/97 and Nos F 4(3) - Reg 6/97 dated 5.03.1997 and 11.3.1997 respectively, issued by the Finance Division (Regulations Wing), government of Pakistan.
However, clarificatory Office Memorandum Nos F 4(3)-Reg 6/97, dated 29.3.1997, issued by the Finance Division provided said: "The benefit of an increase in pension is admissible to those government servants who were retired prior to 1st March, 1997."
The respondents (about 12 government servants), who admittedly retired after 01.03.1997, claimed that they are entitled to 10% increase in the pension after they have availed the benefit of increase in monthly salary of Rs 300 under the Office Memoranda, while they were in service.
They relied upon series of orders passed by the apex court in related matters arising out of the relief package announced by the Prime Minister. The Federal Service Tribunal, Islamabad, extended the benefit of 10% increase in pension to the respondents on the ground that earlier orders of the top court have granted such relief. Secretary finance and others challenged the Tribunal judgement in the Supreme Court.
The judgement authored by Justice Mansoor noted that ad hoc relief was extended by the then Prime Minister by granting an increase of Rs 300 in the salary of government employees and an increase of 10% in the pension of the employees who retired prior to the said date i.e. 01.3.1997.
It noted that the Office Memoranda showed that two distinct relief had been granted; one for the employees in service through increase in salary and the other for retired employees through increase in pension.
The retired employees are those who retired prior to 01.03.1997, as has been clarified in Office Memorandum dated 29.03.1997. Therefore, the respondents cannot claim both the benefits; one of increase in the monthly salary by Rs 300 while in service; and the other of increase in pension after retirement. The cut-off date of 01.03.1997 is critical and has relevance. It splits the employees into two broad categories of in-service employees on the cut-off date and retired employees on the cut-off date for the purposes of the ad hoc relief.
Extending 10% increase in pension to the employees who were in service on 01.03.1997 goes against the scheme of the ad hoc relief as it creates an imbalance between the two classes of employees by extending unjust advantage to one class of employees i.e. the in-service employees on the cut-off date, who would walk away with two distinct ad hoc relief (i.e. increase in salary and increase in pension after retirement) when they have been promised only one.
"We have also gone through the various orders referred to by the learned counsel for the respondents passed by this court and upon examination we have noticed that through some of these orders leave was refused against the judgment of the Tribunal on various grounds, which does not form a binding precedent, while in other cases, the question raised before us has not been considered. Therefore, reference to earlier orders of this Court does not advance the case of the respondents," the judgement said.