Cabinet approves modifications in the 7th CPC recommendations on pay and pensionary benefits
Press Information Bureau
Government Of India
Cabinet
03-05-2017
Cabinet approves modifications in the 7th CPC recommendations on pay and pensionary benefits
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, in June, 2016, the Cabinet had approved implementation of the recommendations with an additional financial outgo of Rs 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 Rs.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 Rs.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 percentage-based disability pension.
The decision which will benefit existing and future Defence pensioners would entail an additional expenditure of approximately Rs. 130 crore per annum.
Source: PIB
N.G.Nair. says
For payband 3 the EP is worked out by multiplying the basic+gradepay with 2.67 to arrive pay matrix levels. Hence to arrive the revised basic pension whether the basic pension as per the PPO of individuals also shall be multiplied by 2.67.
Asim Kumar Das says
The Cabinet approved the decision of the pensionery committee for the notional fixation of pension taking data from the PPO. It is not known about the formula for this fixation and how far it will be beneficial.
For my case, I retired on 30.09.2005 as Dy Dir of I Tax in the scale of pay 10000-325- 15200 and I joined the post on Feb. 1997 on promotion and retired on 30.09.2005 earning the 8 increments in my last scale of pay. After deniel of options – 1, I would be loosing around Rs. 6000 per month.
Asim Kumar Das says
It is understood that the pensionery commity studied for the 100 cases for notional fixation of pension taking the data from the PPO and found more scientific & rational. My question is whether they have taken the stratified samples from the pensioners of 1) before 2016,2) before 2006 and 3) before 1996 as the pensioners before 1.1.2006 suffered heavily on denial of the option – 1. Please look into the matter of the before 2006 pensioners….
K Rajamanickam says
I was Hav Gp B for the period from 1972 to 1979 and my last pay drawn was Rs 388/50. Notional pay details shown in the PPO as on 1.1.86 was Basic pay Rs ,1255 and class pay Rs 25. Can any one tell as to how much my Pension will be revised and whether OROP also be revised.
Y GEORGE says
Sir,
I am retired on 31.10.1996 from CPAF. I am on the level of S-6 GP 2000/- as per 6 CPC. Now I am getting pension Rs. 4030 × 2.57. plus 4% DA. You are requested kindly intimate in my e.mail id that, what changes will came in my pension . So many pensioners like me to know about changes.