Section 61(4) in The Orissa Municipal Employees' Pension Rules, 1989
(4)(a)Once the initial pay of a re-employed pensioner has been fixed he may be allowed to draw normal increments in the time-scale of the post to which he is appointed provided that the pay and gross pension and/or pension equivalent of the other retirement benefits taken together do not at any time exceed Rs. 3,000 per month. Where after the pay is fixed at the minimum or any higher stage, it is reduced below the minimum of any higher stage on account of adjustment under Clause (b) of Sub-rule (2) increase in pay may be allowed after each year of service at the rates of increments admissible as if the pay had been fixed at the minimum or the higher stage, as the case may be.(b)He may be allowed special pay over and above the pay fixed under these rules, if he was not in receipt of a special pay immediately prior to retirement or was drawing a special pay which has not been treated as preretirement pay, for the purpose of fixation of pay under this rule. In other cases, the special pay may not be granted except on special grounds. In all cases where a special pay is sanctioned to a re-employed pensioner the re-employment pay plus gross pensions and/or pension equivalent of other retirement benefits, if any, plus the special pay taken together shall not exceed the limits specified in Sub-rule (2). Where, a special pay is sanctioned as a percentage of the basic pay, the percentage will be calculated on the basis of the pay as fixed on re-employment.
