Modifications in the 7th CPC recommendations on pay and Pensionary benefits approved by the Cabinet on 3rd May, 2017
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi approved important proposals relating to modifications in the 7th CPC (Central Pay Commission) recommendations on pay and pensionary benefits in the course of their implementation. Earlier, on 29th June, 2016, the Cabinet had approved implementation of the recommendations with an additional financial outgo of ₹84,933 crore for 2016-17 (including arrears for 2 months of 2015-16).
The benefit of the proposed modifications will be available with effect from 1st January, 2016, i.e., the date of implementation of 7th CPC recommendations. With the increase approved by the Cabinet, the annual pension bill alone of the Central Government is likely to be ₹1,76,071 crore. Some of the important decisions of the Cabinet are mentioned below:
1. Revision of pension of pre – 2016 pensioners and family pensioners
The Cabinet approved modifications in the recommendations of the 7th CPC relating to the method of revision of pension of pre-2016 pensioners and family pensioners based on suggestions made by the Committee chaired by Secretary (Pensions) constituted with the approval of the Cabinet. The modified formulation of pension revision approved by the Cabinet will entail an additional benefit to the pensioners and an additional expenditure of approximately ₹5031 crore for 2016-17 over and above the expenditure already incurred in revision of pension as per the second formulation based on fitment factor. It will benefit over 55 lakh pre-2016 civil and defence pensioners and family pensioners.
While approving the implementation of the 7th CPC recommendations on 29th June, 2016, the Cabinet had approved the changed method of pension revision recommended by the 7th CPC for pre-2016 pensioners, comprising of two alternative formulations, subject to the feasibility of the first formulation which was to be examined by the Committee.
In terms of the Cabinet decision, pensions of pre-2016 pensioners were revised as per the second formulation multiplying existing pension by a fitment factor of 2.57, though the pensioners were to be given the option of choosing the more beneficial of the two formulations as per the 7th CPC recommendations.
In order to provide the more beneficial option to the pensioners, Cabinet has accepted the recommendations of the Committee, which has suggested revision of pension based on information contained in the Pension Payment Order (PPO) issued to every pensioner. The revised procedure of fixation of notional pay is more scientific, rational and implementable in all the cases. The Committee reached its findings based on an analysis of hundreds of live pension cases. The modified formulation will be beneficial to more pensioners than the first formulation recommended by the 7th CPC, which was not found to be feasible to implement on account of non-availability of records in a large number of cases and was also found to be prone to several anomalies.
2. Disability Pension for Defence Pensioners
The Cabinet also approved the retention of percentage-based regime of disability pension implemented post 6th CPC, which the 7th CPC had recommended to be replaced by a slab-based system.
The issue of disability pension was referred to the National Anomaly Committee by the Ministry of Defence on account of the representation received from the Defence Forces to retain the slab-based system, as it would have resulted in reduction in the amount of disability pension for existing pensioners and a reduction in the amount of disability pension for future retirees when compared to percentagebased disability pension.
The decision which will benefit existing and future Defence pensioners would entail an additional expenditure of approximately ₹130 crore per annum.
3. Changes in Pay Structure and Revision of the three Pay Matrices:
The Cabinet, while approving the 7th CPC recommendations for their implementation on 29th June, had made two modifications in the Defence Pay Matrix as under:
(i) Index of Rationalisation (IOR) of Level 13A (Brigadier) may be increased from 2.57 to 2.67.
(ii) Additional 3 stages in Levels 12A (Lt. Col.), 3 stages in Level 13 (Colonel) and 2 stages in Level 13A (Brigadier) may be added.
The Cabinet has now approved further modifications in the pay structure and the three Pay Matrices, i.e. Civil, Defence and Military Nursing Service (MNS). The modifications are listed below:
(i) Defence Pay Matrix has been extended to 40 stages similar to the Civil Pay Matrix: The 7th CPC had recommended a compact Pay Matrix for Defence Forces personnel keeping in view the number of levels, age and retirement profiles of the service personnel. Ministry of Defence raised the issue that the compact nature of the Defence Pay Matrix may lead to stagnation for JCOs in Defence Forces and proposed that the Defence Pay Matrix be extended to 40 stages. The Cabinet decision to extend the Defence Pay Matrix will benefit the JCOs who can continue in service without facing any stagnation till their retirement age of 57 years.
(ii) IOR for Levels 12 A (Lt. Col. and equivalent) and 13 (Colonel and equivalent) in the Defence Pay Matrix and Level 13 (Director and equivalent) in the Civil Pay Matrix has been increased from 2.57 to 2.67: Variable IOR ranging from 2.57 to 2.81 has been applied by the 7th CPC to arrive at Minimum Pay in each Level on the premise that with enhancement of Levels from Pay Band 1 to 2, 2 to 3 and onwards, the role, responsibility and accountability increases at each step in the hierarchy. This principle has not been applied in respect of Levels 12A (Lt. Col. and equivalent), 13 (Colonel and equivalent) and 13A (Brigadier and equivalent) of Defence Pay Matrix and Level 13 (Director and equivalent) of the Civil Pay Matrix on the ground that there was a disproportionate increase in entry pay at the level pertaining to GP 8700 in the 6th CPC regime. The IOR for Level 13A (Brigadier and equivalent) in the Defence Pay Matrix has already been revised upwards with the approval of the Cabinet earlier. In view of the request from Ministry of Defence for raising the IOR for Levels 12 A and 13 of the Defence Pay Matrix and requests from others, the IOR for these levels has been revised upwards to ensure uniformity of approach in determining the IOR.
(iii) To give effect to the decisions to extend the Defence Pay Matrix and to enhance the IORs, the three Pay Matrices – Civil, Defence and MNS – have also been revised. While doing so, two calculation errors noticed in the MNS Pay Matrix have also been rectified.
(iv) To ensure against reduction in pay, benefit of pay protection in the form of Personal Pay was earlier extended to officers when posted on deputation under Central Staffing Scheme (CSS) with the approval of Cabinet. The benefit will also be available to officers coming on Central Deputation on posts not covered under the CSS.
M S Ravi says
I am 2016 pre pensioner retired as b c r postal assistant
At that retirement time my pension is 7870
Now 20225
Now as per revised modification accepted in r/o 7th pay commission announced on 3.5.2017 by central cabinet
M s ravi says
Sir I retired in 2006February as bcr postal asst
Oh been fixed pension as per 7th pay commission report 2016 June
But I require whether I am eligible for recently approved recommendations on 3rd may 2016
Asper the orders for pre 2016 pensioners
Kuldip Singh says
Give an example of notional pay.
My basic pay on 01.01.1994 was ₹4500/- in the scale of ₹ ₹
₹₹₹3000-100-3500-3625-3750-3875-4000-4125-4250-4375-4500.
What will be notional pay in each of the 5th Pay Commission ,
6th Pay Commission and 7th Pay Commission.
This calculation will give an idea of what we will be getting in this way and what is our due if option I is implemented.
ALL INDIA DRDO TECHNICAL OFFICERS ASSOCIATION says
Oppose the Cabinet decision on 03.05.17 rejecting the VII CPC recommendation on Pension fixation as per Option 1.
7th Pay Commission Pension fixation as per Option 1 is more beneficial than the Option 2 and the method approved by Cabinet.
The Pension Committee and Cabinet have rejected the recommendations of VII CPC as NOT FEASIBLE, even though we have tried our best to convince the Pension Committee that it is Feasible. The intention behind the Cabinet decision dated 29.06.2016 to constitute a committee to examine the feasibility of Option-1 recommended by 7th CPC was to deny the Option-1 parity which is more beneficial to pre-2006 pensioners than the 5th CPC Parity. Option-I parity of 7th CPC is more beneficial to many employees.
The Central Govt. has succumbed to the machination of the bureaucrats and rejected option No.1 in the Cabinet meeting held on 03.05.17. The alternative suggestion put forth by the official side amounts to the revival of the 5th CPC formula, which was once rejected by the same bureaucracy on the ground of high financial outflow. This has been done only because that option No.1 would not be beneficial for the All India Services Personnel and the organised Group A Services, who are not to suffer any stagnation at any point of time in their service. The option No.1 would have benefitted all others including those Group A personnel who do not belong to the above two categories.
The mischievous machination was writ at large right from the day one, when the Pension department objected to the recommendation of the 7th CPC on pension fitment formula. We must remember that the Pension department and the Department of Expenditure together dragged lakhs of pensioners up to Supreme Court for getting the limited modified parity to be implemented. It would be in the fitness of things, that we remember that at no previous occasion, any Government has taken the decision to reject the recommendation of the Pay Commission in the case of pensioners. Even our reasonable suggestion that the alternate suggestion of the official side could be treated as option No. 3 was not palatable. Such an option would have benefitted all. Even some of the feared anomalies in case of option No.1 being implemented would have vanished had the suggestion of the official side is treated as Option No. 3.
In every case, Government documents in one form or the other are available. Even according to the official side, the service books are available in the case of 82% of the pensioners. The rejection is not only untenable but also absolutely mischieviuous to deny the benefit to a section of pensioners, since those in power does not get a benefit out of this.
The primary objective behind setting up of various committees was to delay decision and consequently the benefit to the C.G Officers, employees and pensioners.
PARTICIPATE IN MASS DHARNA ON 23.05.17 IN FRONT OF FINANCE MINISTER’S OFFICE, NORTH BLOCK, NEW DELHI
• Increase minimum pay and fitment formula.
• Revise allowances including HRA w.e.f 01.01.2016.
• Grant option No.1 pension parity recommended by
VII CPC.
• Revise pension and grant dearness relief to
Autonomous body pensioners.
• Honour the assurances given by Group of Ministers.
We know that the 23rd May will be very hot in Delhi, unbearable for the aged pensioners, Officers & employees to register their protest. However, it becomes incumbent upon us to join the struggle which is conceived to oppose the Government in power for the nugatory attitude towards the C.G employees in general and the pensioners in particular. We, therefore, request those C.G Pensioners, Officers & employees, who are residing in and around Delhi to take part in the Dharna programme before the Finance Minister’s office, North Block, New Delhi on 23rd May, 2017.
All India DRDO Technical Officers Association (AIDTOA) shall continue its struggle opposing abnormal delay in implementation of revised allowances from 01.01.2016, closing down departments like DGS&D etc. and demanding for increase in minimum pay and fitment formula, Option -1 parity of Pensioners , revision of pension and grant of dearness relief to autonomous body pensioners etc. along with Confederation of Central Government Gazetted Officers Organisations (CCGGOO), Confederation of Central Government Employees and Workers (CCGEW), National Coordination Committee of Pensioners Association (NCCPA) etc.
Sunil Gawas says
I posted my many comments and raised issues till date no any reply was given to me