Equal basic Pension under 7th CPC – Lok Sabha Q&A
Government of India
Ministry of Finance
Department of Expenditure
LOK SABHA
UNSTARRED QUESTION No.6447
TO BE ANSWERED ON FRIDAY, APRIL 6, 2018/CHAITRA 16, 1940 (SAKA)
EQUAL BASIC PENSION UNDER SEVENTH CPC
6447: SHRI P. K. KUNHALIKUTTY
Will the Minister of FINANCE be pleased to state:
(a) whether the Seventh Central Pay Commission (CPC) has recommended option-I for ensuring equal basic pension to pre – 2016 and post – 2015 pensioners retiring from similar/equal posts and stages and if so, the details thereof;
(b) whether the Government has finally not accepted that recommendation and if so, the details thereof; and
(c) the steps taken/being taken by the Government to ensure that such similarly placed pensioners get equal basic pension from 01.01.2016?
ANSWER
MINISTER OF STATE FOR FINANCE
(SHRI P. RADHAKRISHNAN)
(a) to (c) The 7th Central Pay Commission had recommended two formulations for revision of pension of employees who retired before 01.01.2016 and the employees were given option to choose whichever formulation was beneficial. As per the first formulation, the Commission recommended for revision of pension based on notional pay arrived at by adding the number of increments an employee had earned in the appropriate level while in service. This formulation was later on examined by a Committee under the Chairmanship of Secretary, Department of Pension and Pensioners’ Welfare.
The Committee recommended that instead of counting of increments earned in the retiring scale and applying directly to the 7th Pay Commission Pay Matrix, a more scientific and rational method would be to refix pay in each successive Pay Commission as per the formula for revision of pay right up to the 7th Pay Commission. This method of fixing notional pay and pension would benefit a larger number of pensioners as compared to the increment method which benefits only a select segment of pensioners who served for a longer period in the retiring scale without being promoted to a higher grade.
This has been accepted by the Government and appropriate orders have been issued.
4th,5th,6th and 7th Pay Scale Table for 7th CPC Pension
Source: http://loksabha.nic.in/
KM.Ibrahim says
Sir,
Option No.1 Is more benificiable for pensioners who served a long time woth out getting promotions(Because no vacancy) Time scale prmotion was not implimented at that time.Pension was calculating by adding increments with basic pay.In 2004 Dearnes pay was included with basic pay for pension calculation .Hence my total amoloment for pension was Rs.9750. And I receved as per pro rata basis for Rs. 9750.But as per the 7 CPC pension my basic pay has taken Rs 6500.Only as per my scale of pay 4500-125-7000.Here my increments was not considered for pension! By adding increments I should get Rs 29700 Basic pension where as Iam getting now Rs.19600 Only as per the pension revised letter received from C p A O dated 21 Nov.2017.This is injustice and Iam in loss of more than 10000 Rupees per month.My ppo No. 018720401247. Retired from Central water commission in2004 June after 24 Years of service.Im eagerly waitin for your reply.
M.K.KUMAR says
Option I was not implemented by government, so your notional pension from 1/1/2016 is Rs.19,600/- is correct. Your dearness pension was merged and your 6th CPC pension was Rs.7445/-(in GP 2800) i.e. 6500×2.57+16705+GP 2800=19505 fixed at matrix level 5 at 19,600/-.