7th CPC Pension Calculation : Implementation of First Option after Committee Report

7th CPC Pension Calculation : Implementation of First Option after Committee Report

“Revision of pension using the second option based on fitment factor of 2.57 be implemented immediately. The first option may be made applicable if its implementation is found feasible after examination by the Committee”

Revision of Pension of pre 7tn CPC retirees : The Commission recommends the following pension formulation for civil employees including CAPF personnel who have retired before 01.01.2016

(i) All the Civilian personnel including CAPF who retired prior to 01.01.2016 (expected date of implementation of the Seventh CPC recommendations ) shall first be fixed in the Pay Matrix being recommended by this Commission, on the basis of the Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the matrix. This amount shall be raised, to arrive at the notional pay of the retiree, by adding the number of increments he / she had earned in that level while in service, at the rate of three percent. Fifty percent of the total amount so arrived at shall be the revised pension.

(ii) The second calculation to be carried out is as follows. The pension, as had been fixed at the time of implementation of the VI CPC recommendations, shall be multiplied by 2.57 to arrive at an alternate value for the revised pension.

(iii) Pensioners may be given the option of choosing whichever formulation is beneficial to them. It is recognized that the fixation of pension as per formulation in (i) above may take a little time since the records of each pensioner will have to be checked to ascertain the number of increments earned in the retiring level. It is therefore recommended that in the first instance the revised pension may be calculated as at (ii) above and the same may, be paid as an interim measure. In the event calculation as per (i) above yields a higher amount the difference may be paid subsequently.(Para 10.1.67 and Para 10.1.68 of the Report)

Both the options recommended by the 7th Central Pay Commission as regards pension revision be accepted subject to feasibility of the implementation. Revision of pension using the second option based on fitment factor of 2.57 be implemented immediately. The first option may be made applicable if its implementation is found feasible after examination by the Committee comprising Secretary (Pension) as Chairman and Member (Staff). Railway Board, Member (Staff), Department of Posts, Additional Secretary & Financial Adviser, Ministry of Home Affairs and Controller General of Accounts as Members

Authority: http://www.pensionersportal.gov.in/

Comments

Anonymous said…
whenever option on increment base drawn, there will be anomoly. Take example employee drawing basic pay of 56740. For Officres retited on 31.12.2015, his basic pension is 28370. with option multiply by 2.57, his revised pension will be 72910. When fixation drawn the stage with 7 increment is 145800, hence basic pension will be 72900. therefore 72910 will be fixed.
In situation with same basic of 56740(7th increment stage 145800) and Officer retired in Jan 2016, his basic will be fixed 56740 x 2.57 =145821. there is no stage of 145821(though 7 increment stage is 145800), his basic Pay will fixed to next cell i.e.150200 and basic pension will be75100.
Now this will be anomaly for pre 2016 and after 2016., Officer retired in Dec 2015 will get basic Pension of 72910 and Officer retired in Jan 2016 will get basic Pension of 75100(Both are having same basic of 56740) and Officer retired in Dec 2015 will get less Pension of 2190.
Will any body will look into the anomolyin scale 37400-67000+ GP8700.

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