ISLAMABAD, Sept 21: The Supreme Court has decided to settle the issue of categorizing pensioners into groups, and the payment of pension to the new and old pensioners on two different formulas — gross basis (full pension), and net basis (pension being drawn).

The SC bench headed by Chief Justice Sheikh Riaz Ahmad, after hearing both the parties, decided to grant leave to appeal in a petition filed by the ministry for finance.

The SC bench observed that the rationale on the basis of which increase was allowed on the “gross pension” in the past, and then to change on “net pension” needed to be looked into and decided.

The finance ministry had filed the appeal against the judgment of the Federal Service Tribunal of June 2003, granting relief to the pensioners.

The federal government had tried to justify the calculation on the basis of recommendations of the Pensions and Pay Commission Committee, 2001.

It stated that the increase in the pension was ordered with effect from June 2001, and acting on the report of the committee, increase in the pension was to be calculated on the net and not on the gross pension.

By adopting different formulas of calculation, the government deprived pensioners of thousands of rupees per month. One of the respondents said that he was drawing a pension of Rs9000 per month, and if his pension was calculated on the basis of “gross pension”, he would draw Rs14000 per month.

The second issue which would be decided by the apex court would be the classification of the pensioners into three categories, and allowing them five per cent, 10 per cent and 15 per cent increase in their pension.

The pensioner’s contention was that all pensioners, irrespective of the date of retirement, constitute one class and such classification and categorization of pensioners was illegal and all pensioners should be given the uniform increase of 15 per cent.