7th CPC Pension Calculation : Implementation of First Option after Committee Report

7th CPC Pension Calculation : Implementation of First Option after Committee Report

“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”

Revision of Pension of pre 7tn 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 retired prior to 01.01.2016 (expected date of 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 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

Authority: http://www.pensionersportal.gov.in/

Fixed Medical Allowances on 7th Pay Commission

Fixed Medical Allowances on 7th Pay Commission

Fixed Medical Allowances : Recommendation: 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.

Decision of Government : 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.

Authority: http://www.pensionersportal.gov.in/

7th CPC Pension News : dearness relief to employed/reemployed pensioners/family pensioners

7th CPC Pension News : dearness relief to employed/reemployed pensioners/family pensioners

The revised pension/family pension arrived at as per paragraph 4.1 includes dearness relief sanctioned from 1.1.2016.

The existing instructions regarding regulation of dearness relief to employed/reemployed pensioners/family pensioners, as contained in Department of Pension & Pensioners Welfare O.M. No. 45/73/97-P&PW(G) dated 02.07.1999, as amended from time to time, shall continue to apply.

Authority: http://www.pensionersportal.gov.in/

Calculation of Quantum of Pension as per 7th CPC Notification

Calculation of Quantum of Pension as per 7th CPC Notification

The quantum of pension/family pension available to the old pensioners/ family pensioners shall continue to be as follows:-

Age of Pensioner/family Pensioner	Additional quantum of Pension
From 80 years to less than 85 years	20% of revised basic pension/ family pension
From 85 years to less than 90 years	30% of revised basic pension / family pension
From 90 years to less than 95 years	40% of revised basic pension / family pension
From 95 years to less than 100 years	50% of revised basic pension / family pension
100 years or more	100% of revised basic pension / family pension

The amount of additional pension will be shown distinctly in the pension payment order. For example, in case where a pensioner is more than 80 years of age and his/her revised pension in terms para 4.1 above is Rs.10,OOO pm, the pension will be shown as (i).Basic pension=Rs.10,OOO and (ii) Additional pension = Rs.2,OOO pm. The pension on his/her attaining the age of 85 years will be shown as (i). Basic Pension = Rs.10,OOO and (ii) additional pension = Rs.3,OOOpm. Dearness relief will be admissible on the additional pension available to the old pensioners also.

Authority: http://www.pensionersportal.gov.in/

Minimum and Maximum of 7th CPC Pension effect from 1.1.2016

Minimum and Maximum of 7th CPC Pension effect from 1.1.2016

The minimum pension with effect from 01.01.2016 will be Rs. 9000/- per month (excluding the element of additional pension to old pensioners). The upper ceiling on pension/family pension will be 50% and 30% respectively of the highest pay in the Government (The highest pay in the Government is Rs. 2,50,000 with effect from 01.01.2016).

Authority: http://www.pensionersportal.gov.in/

Separate orders will be issued by the Ministry of Defence in regard to Armed Forces pensioners/family pensioners

Separate orders will be issued by the Ministry of Defence in regard to Armed Forces pensioners/family pensioners

These orders shall apply to all pensioners/family pensioners who were drawing pension/family pension before 1.1.2016 under the Central Civil Services (Pension) Rules, 1972, Central Civil Services (Extraordinary Pension) Rules and the corresponding rules applicable to Railway pensioners and pensioners of All India Services, including officers of the Indian Civil Service retired from service on or after 1.1.1973. A pensioner/family pensioner who became entitled to pension/family pension with effect from 01.01.2016 consequent on retirement/death of Government servant on 31.12.2015, would also be covered by these orders.

Authority: http://www.pensionersportal.gov.in/

Separate orders are being issued in respect of employees who retired/died on or after 01.01.2016

Separate orders are being issued in respect of employees who retired/died on or after 01.01.2016

The Government’s decision on the recommendations of Seventh Central Pay Commission, sanction of the President is hereby accorded to the regulation, with effect from 01.01.2016, of pension/ family pension of all the pre-2016 pensioners/ family pensioners in the manner indicated in the succeeding paragraphs. Separate orders are being issued in respect of employees who retired/died on or after 01.01.2016.

PENSION CALCULATION AS PER 7TH CPC NOTIFICATION WITH ILLUSTRATION

PENSION CALCULATION AS PER 7TH CPC NOTIFICATION WITH ILLUSTRATION

For existing pensioners, who have retired before 01.01.2016, the revised pension/family pension with effect from 01.01.2016 shall be determined by multiplying the pension/family pension, as had been fixed at the time of implementation of 6th Central Pay Commission (CPC) recommendations, by 2.57. The amount of revised pension/family pension so arrived at shall be rounded off to next higher rupee.

Illustration:

Case I : Pensioner ‘A’ retired at last pay drawn of Rs. 79,000 on 31st May, 2015 under the 6th CPC regime in the scale of Rs. 67000-79000:

		Amount in Rs.
1.	Basic Pension fixed in 6tH CPC	39500
2.	Revised Pension fixed under 7tnCPC (using a multiple of 2.57)	101515

Case II
Pensioner ‘B’ retired at last pay drawn of Rs. 4,000 on 31st January, 1989 under the 4th CPC regime in the pay scale of Rs. 3000-100-3500-125-4500:

		Amount in Rs.
1.	Basic Pension fixed in 4tn CPC	1,940
2.	Basic Pension as revised in 6th CPC	12,600
3.	Revised Pension fixed under T” CPC (using a multiple of 2.57)	32,382

Authority: Authority: http://www.pensionersportal.gov.in/

7th CPC on Pensionery Benefits – Pension/gratuity/commutation of pension/family pension/disability pension/ex-gratia lump-sum compensation

7th CPC on Pensionery Benefits – Pension/gratuity/commutation of pension/family pension/disability pension/ex-gratia lump-sum compensation

F. No 38/37/2016-P&PW(A)Ci’)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners’ Welfare
Lok Nayak Bhawan, New Delhi-110003

Dated the 4th August, 2016

OFFICE MEMORANDUM

Sub: Implementation of Government’s decision on the recommendation of the Seventh Central Pay Commission – Revision of provisions regulating pension/gratuity/commutation of pension/family pension/disability pension/ex-gratia lump-sum compensation, etc.

The undersigned is directed to state that in pursuance of Government’s decision on the recommendation of the Seventh Central Pay Commission, the President is pleased to introduce the following modifications in the rules regulating pension, Retirement/Death/Service Gratuity, Family Pension, disability pension, ex-gratia lumpsum compensation, etc. under the CCS (Pension) Rules, 1972 and Commutation of Pension under CCS (Commutation of Pension) Rules, 1981, CCS (Extraordinary Pension) Rules, 1939, etc.

2. These orders apply to Central Government Employees governed by the CCS (Pension) Rules, 1972. Separate orders will be issued by the Ministry of Defence, Ministry of Railways and the AIS Division of the DOPT in respect of Armed Forces personnel, Railway employees and the officers of All India Services respectively on the basis of these orders.

DATE OF EFFECT

3.1 The revised provisions as per these orders shall apply to Government servants who retire/die in harness on or after 1.1.2016. Separate order have been issued in respect of employees who retired/died before 1.1.2016.

Option for Revising 7th CPC pay on Increment date is Beneficial in Rare cases

Option for Revising 7th CPC pay on Increment date is Beneficial in Rare cases

Workout before Giving Option for Revising 7th CPC Pay

Giving Option for revision of 7th CPC Pay is a must and important thing to be done by Central Government Employees in respect of implementation of 7th Pay Commission recommendations

Your 7th CPC Pay will be revised as per the Option you choose to revise your Pay

There are Two options provided in option form
1 . I ___________________________________ hereby elect the revised pay structure with effect from 1st January 2016
2. I, __________________________________ hereby elect to continue on Pay band and Grade Pay of my substantive / officiating post mentioned below until:
* the date of my next increment/the date of my subsequent increment raising my pay to Rs ________________ / I vacate or cease to draw pay in the existing pay structure / the date of my next promotion/upgradation to the post of _________________________

Normally it has been advised by the administrative Department that …

For Option -I

The Government servants those who are not getting Promotion or Upgradation between 1st January 2016 to 1st July 2016 should select No.1 Option i.e electing to revise the Pay with effect from 1.1.2016

For Option -II

The Government servants those who got Promotion / upgradation in the Period between 2st January 2016 and 1st July 2016 will have to select any one of the conditions given in Option No.2 after working out their Pay as per the choices given. Because which Option is beneficial to them is depends on the Basic Pay and Period of Service in the Pre revised Scale. The cases may vary individual to individual.

It is to be noted that one can choose to revise his pay from his next Increment date in Normal Conditions also. Because if revising the pay after granting one increment is beneficial than revising pay from 1st January 2016, he will be allowed to choose the option of I elect to continue on Pay band and Grade Pay of my substantive post until the date of my next increment.

It is observed that selecting revising pay from the Date of next increment in second Option is beneficial in rare cases.

But one important thing to be kept in mind before opting Options other than 1st January 2016
In all Options other than 1st January 2016 YOU SHOULD BE READY TO FORGO ARREARS FOR THE PERIOD FROM 1ST JANUARY TO THE DATE YOU SELECT TO REVISE YOUR PAY.

If you are ready to forego arrears, then you calculate your pay on 1st January 2016 and 1st July 2016 with an increment and select which one is beneficial to you and go according to that.

How to calculate in normal conditions if there is no promotion involved…

A. As on 1.1.2016

Your Basic Pay x 2.57
And Select the Cell same or nearest Higher to this amount arrived at in corresponding Level

B. As on 1.7.2016 after One Increment in sixth CPC

Your Basic Pay x 2.57
And Select the Cell same or nearest Higher to this amount arrived at in corresponding Level

If A is Higher than B, you can select No. 1 option i.e Revising the Pay with effect from 1st January 2016.

If B is Higher than A , You can select the date of my next increment Date in Option no.2. i.e Revising the Pay with effect from 1st July 2016.

Source : http://govtstaffnews.in/