7th Central Pay Commission’s Recommendations on Principal demands of the pensioner’s

7th Central Pay Commission’s Recommendations on Principal demands of the pensioner’s

i. Raising the existing rate of pension (50%) and Family pension (30%)

The Commission does not recommend any further increase in the rate of pension & Family Pension.

ii. The quantum of minimum pension should equal the minimum wage

The minimum pay has been increased from Rs.7,000/- to Rs.18,000 p.m. The minimum pension will therefore by Rs.9,000/- the minimum pension based on the VII CPC will increase by 2.57 times over the existing level.(para 10.1.27)

3.Increase in the rate of Additional pension and family pension to the older pensioner and reduction of the age of eligibility

The existing rate for additional pension are

80 Years  to <85 Years	20% of basic pension
85 Years to <90 Years	30% of basic pension
90 Years to <95 Years	40% of basic pension
95 Years to <100 Years	50% of basic pension
100 Years and above	100% of basic Pension

The Department of pension and Pensioner’s welfare felt that the additional pension shall be allowed from 75 years of age onwards. The ministry of Defence has not supported the proposal. The VII CPC viewed that the existing rates of additional pension and additional family pension are appropriate (Para 10.1.70)

Case I

10.1.70 Pensioner ‘A’ retired at last pay drawn of ₹79,000 on 30 May, 2015 under the VI CPC regime, having drawn three increments in the scale ₹67,000 to 79,000.

		Amount in ₹
1	Basic Pension fixed in VI CPC	39,500
2	Initial Pension fixed under seventh CPC (using a multiple of 2.57)	1,01,515 – Option 1
3	Minimum of the corresponding pay level in 7th CPC	1,82,200
4	Notional Pay fixation based on 3 increments	1,99,100
5	50 Percent of the notional pay so arrived	99,550 – Option 2
6	Pension amount admissible (higher of Option 1 and 2	1,01,515

Case II

10.1.71 Pensioner “B” retired at last pay drawn of ₹4,000 on 31 January, 1989 under the IV CPC regime, having drawn 9 increments in the pay scale of ₹3000-100-3500-125-4500.

		Amount in ₹
1	Basic Pension fixed in IV CPC	1,940
2	Basic Pension as revised in VI CPC	12,543
3	Initial Pension fixed under Seventh CPC (Using a multiple of 2,57)	32,236 Option 1
4	Minimum of the corresponding pay level in 7 CPC	67,700
5	Notional Pay fixation based on 9 increments	88,400
6	50 percent of the notional pay so arrived	44,200 Option 2
7	Pension amount admissible (higher of Option 1 and 2)	44,200

Increasing the existing time period of 7 years or 67 years of age of the enhanced family pension

No further change is recommended by the VII CPC (Para 10.1.37)

4. Enhancement in the Gratuiry ceiling and its indication

The VII CPC recommends enhancement in the ceiling of gratuity from the existing Rs.10 Lakhs to Rs.20 Lakhs from 1.1.2016. The Ceiling on gratuiry may increase by 25 percent, whenever DA rises by 50 Percent (Para 10.1.37)

5. Rationalisation of Death Gratuity

It was represented to the VII CPC that the current slab of death gratuity, especially for the slab of 5 to 20 years of qualifying service, in which family pensioners are placed at a disadvantageous position. The VII CPC, after examination of the matter, recommends the following revised rates for payment of death gratuity under Rule 50 of the Pension Rules.

Length of service	Rate of death gratuity
	Existing	Revised
Less than one year	2 times of monthly emoluments	2 times month emoluments
One year or more but less than 5 years	6 times of monthly emoluments	6 times of monthly emoluments
5 years or more but less than 11 years	12 times of monthly emoluments (upto 20 years)	12 times of monthly emoluments
11 years or more but less than 20 years	New slab	20 times of monthly emoluments
20 years or more	Half month emoluments for every complete six monthly period of qualifying service subject to a maximum of 33 times of emoluments	Half month of emoluments for every six monthly period of qualifying service subject to a maximum of 33 times of emoluments

(Para 10.1.41)

6.Reduction in the time limit of 15 years for restoration of commuted value

The VII CPC does not recommend any change either in the maximum percentage of commutation or in the period of restoration (Para 10.1.42)

7. Enhancement of ceiling of earned leave for purposes of leave enhancement

The raising the present ceiling of 300 days is not recommended by the commission (Para 10.1.46)

8. Parity in pension between pre and post seventh CPC Retirees.

10.1.67 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 impelmentation 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 tha 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 pensioners 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.

9. Enhancement in fixed Medical Allowance, currently payable at the rate of Rs.500 per month for pensioners not covered under Central Government Health Service (CGHS)

The commission notes that this allowance was enhanced from Rs.300 PM to Rs.500pm from 19.11.2014. As such, further enhancement of this allowance is not recommended (Para 8.17.52)

10. Constant Attendance Allowance

This allowance is sanctioned for 100 percent disablement, if in the opinion of competent medical authority, the retired employee needs the services of a Constant Attendant for at least a period of 3 months. This is subject to acceptance by the pension sanctioning authority and to the condition that the pensioner actually employs a paid attendant to look after him. The present rate of this allowance is Rs.4,500 pm

The allowance may be increased by a factor of 1.5, i.e., to Rs.6,750 per month. The allowance shall further increase by 25 percent each time DA rises by 50 percent.

The Federation is of the view that these recommendations may be modified by the Government based on the various representations from Pensioners’ Associations and working Employees Associations. We have to await for the Government’s Orders on many of the issues. Hence, we have not printed the recommendations on the method of fixation of pay/pension/family pension.