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Financial upgradation on a dynamic basis (i.e. without having to create posts in the relevant scales of pay) has been recommended by the Fifth Central Pay Commission only for the incumbents of isolated posts which have no avenues of promotion at all. Since financial upgradations under the Scheme shall be personal to the incumbent of the isolated post, the same shall be filled at its original level (pay-scale) when vacated. Posts which are part of a well-defined cadre shall not qualify for the ACP Scheme on ‘dynamic’ basis. The ACP benefits in their case shall be granted conforming to the existing hierarchical structure only; 

|Points of Doubt     |Clarification                       |
|Following the       |Normally, it is incorrect to have a |

|recommendations of |feeder grade in the same scale of | |the Pay Commission, |pay. In such cases, appropriate | |feeder and |course of action is to review the | |promotional posts |cadre structure. If as a | |have been placed in |restructuring, feeder and | |the same scale. |promotional posts are merged to | |Consequently, |constitute one single level in the | |hierarchy of a post |hierarchy, then in such a case, next| |comprises of Grades |financial upgradation will be in the| |‘A’, ‘A’ and ‘C’ |next hierarchical grade above the | |i.e. the entry level|merged levels and if any promotion | |and the first |has been allowed in the past in | |promotional grade |grades which stand merged, it will | |are in the same |have to be ignored as already | |scale. What shall |clarified in reply to point of doubt| |be his entitlements |no.1 of O.M. dt.10.02.2000. However| |under ACPS |if for certain reasons it is | | |inescapable to retain both feeder | | |and promotional grades as two | | |district levels in the hierarchy | | |though in the same scale of pay, | | |thereby making a provision for | | |allowing promotion to a higher post | | |in the same grade, it is inevitable | | |that benefit of financial | | |upgradation under ACPS has also to | | |be allowed in the same scale. This | | |is for the reason that under the | | |ACPS, financial upgradation has to | | |be allowed as per the existing | | |hierarchy. Financial upgradation | | |cannot be allowed in a scale higher | | |than the next promotional grade. | | |However, as specified in condition | | |No.9 of the ACP Scheme (vide DoP&T | | |O.M. dated 10.02.2000, pay in such | | |cases shall be fixed under the | | |provisions of FR 22(I)(a)(1) subject| | |to a minimum benefit of Rs.100/-. | On going through the ACPS and the relevant stipulations and conditions it is evident that the Scheme offers higher pay scale/financial benefits only to those eligible Government servants who remain deprived of regular promotions. For such deprivation, they are compensated by grant of monetary benefits on personal basis but the same does not amount to functional/regular promotion and does not require creation of new posts. The financial upgradations under the Scheme are to be counted against regular promotions in the service career of the concerned Government employee. The two financial upgradations under the Scheme shall be available only if no regular promotions during the prescribed periods (12 and 24 years) have been availed by an employee. As per Condition No.7, financial upgradation is admissible in the next higher grade only in accordance with the existing hierarchy in a cadre/category of posts without creating new posts for the purpose. Practical solution has been indicated in case of isolated posts where there is no defined hierarchical grades. The condition emphasizes that financial upgradation on a dynamic basis (i.e. without having to create posts in the relevant scales of pay) has been recommended by the Fifth Central Pay Commission only for the incumbents of isolated posts which have no avenues of promotion at all. Condition No.7 fortifies the view taken by the Tribunal through the clear stipulation in the last two sentences – “Posts which are part of a well- defined cadre shall not qualify for the ACP Scheme on ‘dynamic’ basis. The ACP benefits in their case shall be granted conforming to the existing hierarchical structure only.” Condition No.9 indicates that on upgradation under ACP Scheme the re- fixation of pay must yield a minimum benefit of Rs.100/- in accordance with the relevant Office Memorandum. It also clarifies that the financial benefit under the ACP Scheme is final and no pay fixation benefit shall accrue at the time of regular promotion, i.e., posting against a functional post in the higher grade. Condition No.10 further clarifies that benefit under the ACPS is to be conditional and the concerned employee shall be deemed to have given an unqualified acceptance for regular promotion on occurrence of vacancy subsequently.