7th Pay Commission Resolution Revised provisions regarding pensionary benefits

Item No.

Recommendation

Decision of Government

1

Fixed Medical Allowance

The commission notes that this allowance was enhanced from Rs.300/- p.m. to Rs.500/-p.m. from 19.11.2014. As such, further enhancement of this allowance is not recommended.

(Para 8.17.52 of the Report)

To be examined by a committee comprising Finance Secretary and Secretary (Expenditure) as Chairman and Secretaries of Home Affairs, Defence, Posts, Health & Family Welfare, Personnel & Training and Chairman, Railway Board,as Members. Till a final decision is taken based on the recommendations of the Committee, Fixed Medical Allowance shall be paid at existing rates.

2

Constant Attendance Allowance

The allowance may be increased by a factor of 1.5 i.e to Rs.6750/- per month. The Allowance needs further increase by 25% each time DA rises by 50%

(Para 8.17.29 of the Report)

To be examined by a Committee comprising Finance Secretary and Secretary (Expenditure) as Chairman and Secretaries of Home affairs, Defence, Posts, Health & family welfare, personnel & Training and chairman, Railway Board as Members. Till a final decision is taken based on the recommendations of the committee. Constant attendant Allowance shall be paid at existing rates.

3

General Provident Fund

Status quo may be maintained in this respect.

(Para 9.4.4 of the Report)

Accepted

4

Rates of Pension & Family Pension

The Commission does not recommend any further increase in the rate of pension and Family Pension from the existing levels.

(Para 10.1.25 of the Report)

Accepted

5

Quantum of Minimum Pension

The recommendations of the commission in relation to pay of a personnel will lead to a significant increase in the minimum from the existing Rs.7,000 per month to Rs.18,000 per month. This, based on computation of pension, will raise minimum pension from the existing Rs.3500 to Rs.9,000. The minimum pension based on the recommendations of the commission will increase by 2.57 times over the existing level.

(Para 10.1.27 of the Report)

Accepted

6

Rate of additional Pension and Family Pension to the older pensioners

The commission is of the view that the existing rates of additional pension and additional family pension are appropriate.

(Para 10.1.30 of the Report)

Accepted

7

Time Period for enhanced family pension.

The commission notes that the recommendation with regard to period of eligibility of the enhanced family pension of 10 years in case of death of a serving employee was made based on the recommendations of VIth CPC Report. No further change is being recommended by the commission.

(Para 10.1.33 of the Report)

Accepted

8

Gratuity Ceiling and its indexation.

The Commission recommends enhancement in the ceiling of gratuity from the existing Rs.10 lakh to Rs.20 Lakh from 01.01.2016. The Commission further recommends the ceiling on gratuity may increase by 25% whenever DA rises by 50%.

(Para 10.1.37 of the Report)

Accepted

9

Rationalization of death gratuity

The Commission, after examination of the matter, recommends the following rates for payment of death gratuity:

Accepted

10

Commutation of Pension and restoration of commuted pension

The Commission does not recommend any change either in the maximum percentage of commutation or in the period of restoration.

(Para 10.1.43 of the Report)

Accepted

11

Revision of Pension of Pre  7^th 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 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 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

12

Ex-gratia Lumpsum Compensation

The Commission recommends a Common regime for payment of ex-gratia lump-sum compensation for civil and defence forces personnel, payable to the next of Kin at the following rates:

(Para 10.2.77)

Accepted