Pension is not a concession but right of staff: Madras HC

Pension is neither charity nor largesse to be claimed as a matter of concession. It is a right which is accrued to all employees of pensionable service, as they had toiled in employment for number of years of service. The minimum expectation of such employees in the twilight of their life is to be compensated modestly, the Madras High Court has observed.

“As French philosopher Albert Camus said, ‘It is a kind of spiritual snobbery that makes people think they can be happy without money’. The profound statement of the philosopher is more true and apt today as the world around us is rotating on a materialistic axis and every humble citizen becomes vulnerable and exposed to harsh realities of life. Life always revolves around hope and for pensioners adequate pension is the only hope left in their remaining part of life. Without that hope, the final phase of existence becomes too mundane. Therefore, the right to receive adequate pension is implicit within the framework of the Constitution, particularly in terms of Article 21 of the Constitution of India,” Justice V Parthiban said.
The judge was allowing a writ petition from ONGC Retired Employees’ Welfare Association and others on Tuesday.

The judge said that both employees of the exempted and unexempted establishments are entitled to the benefit of enhanced pension on the basis of their contribution with reference to actual salary received by them to their Provident Fund accounts. The cut-off date as prescribed, i.e. December 1, 2004, is invalid in law and therefore, the same is held to be illegal and invalid.  

The employees, namely, the writ petitioners, shall be permitted to exercise their option in terms of proviso to clause 11(3) of the Pension Scheme and while permitting so, the EPFO is at liberty to seek return of the higher provident fund contribution received by the respective employees with simple interest at the rate of six per cent per year from the date of receipt of PF amount and till the date of payment. The amounts to be refunded by the employees concerned shall be verified by the EPFO in consultation with the respective establishments in which the workers were employed. 

On refund of the verified amount with interest, the EPFO should calculate and grant enhanced pension on the basis of actual salaries received by the staff with arrears of pension from the date of their retirement and continue to pay monthly enhanced pension throughout their lifetime, the judge said.

The respective managements of the exempted establishments, which maintained the private trust, shall cooperate with the EPFO and render all assistance in quantifying the amount to be refunded by the respective employees with interest at six per cent per annum on such refund. The entire exercise shall be initiated and completed by the individual managements and the EPFO within six months, the judge said.