7th CPC - Revision of provisions regulating Pension/ Gratuity/ Commutation of Pension/ Family Pension
No. 17(02)/2016-D(Pen/Pol)
Government of India
Ministry of Defence
Department of Ex-Servicemen Welfare
New Delhi
Dated 4th September 2017
To
The Chief of the Army Staff
The Chief of the Naval Staff
The Chief of the Air Staff
Sub:
Implementation of the Government decision on the recommendations of the
Seventh Central Pay Commission - Revision of provisions regulating
Pension/ Gratuity/ Commutation of Pension/ Family Pension including
pensionary awards notified in terms of Casualty pensionary awards in
respect of Commissioned Officers, Junior Commissioned Officers Other
Ranks, Retiring or dying in harness on or after 1.1.2016.
Sir,
The
undersigned is directed to refer to the Government's decisions on the
recommendations of the Seventh Central Pay Commission notified vide
Government of India, Ministry of Defence, Department of Ex-Servicemen
Welfare Resolution bearing No 17(l)/2014/D(Pension/Policy) dated
30.9.2016, recommendations of National Anomaly Committee on methodology
for calculation of disability element for Defence Forces and Ministry of
Personnel, Public Grievances and Pension, Department of Pension" and
Pensioners' Welfare Office Memorandum No. 38/37/2016 - P&PW(A) (i)
dated 4.8.2016 as modified vide OM F No 42/14/2016-P&PW(G) dated
24.10.2016. Sanction of the President is hereby accorded for
modification in the rules regulating Pension, Family pension,
Retirement/ Death/Service Gratuity, Commutation of pension, pensionary
awards under casualty pensionary awards including Ex-gratia lump sum
compensation in cases of invalidment etc., to the extent specified in
this letter.
2. The provisions of the Pension Regulations, 2008 of
Army and various Services Regulations, Instructions and Government
Orders issued by this Ministry from time to time, which are not affected
by the provisions of this letter, shall remain unchanged.
3. DATE OF EFFECT
3.1
The revised provisions of this letter shall apply to the Commissioned
Officers (including MNS and Territorial Army Officers), Junior
Commissioned Officers and Other Ranks of the three Services,
Non-Combatants (Enrolled) in the Air Force, Defence Security Corps and
the Territorial Army (hereinafter collectively referred to as Armed
Forces Personnel) who retired/discharged! released/invalided out or died
in harness on or after 1.1..2016. Separate orders have already been
issued in respect of Armed Forces Personnel who retired/died before
1.1.2016.
3.2 Where Pension! Family Pension/ Death Gratuity/
Retirement Gratuity/ Commuted Value of Pension or pensionary awards
under casualty pensionary awards has already been sanctioned
provisionally, or otherwise, in cases of retirement/death occurring on
or after 1.1.2016, the same shall be revised in terms of these orders.
In cases where pension has been finally sanctioned under the pre-revised
orders and if it happens to be more beneficial than the pension
becoming due under these orders, the pension already sanctioned shall
not be revised to the disadvantage of pensioner.
4.
RECKONABLE EMOLUMENTS
4.1
The term ' Reckonable Emoluments' for the purpose of calculating
various-pensionary benefits other than various kinds of Gratuities,
shall consist the following-
4.1.1
Commissioned Officers: Pay
in the Pay Matrix, Military Service Pay and Non Practicing Allowance,
if any, last drawn by the officer (Refer - Army Officer Pay Rules-2016,
Air Force Officer Pay Rules-2017, Navy Officer Pay Regulations-2017 as
may be the case)
4.1.2
Junior Commissioned Officers & Other Ranks: Pay
in the Pay Matrix, Military Service Pay, and 'X' Group Pay &
Classification Allowance, if any, last drawn by the JCOs/ORs "(Refer -
Army Pay Rules-2017, Air Force Pay Rules-2017, Navy Pay Regulations-2017
as may be the case).
4.2 For calculation of all kinds of
gratuities, dearness allowance admissible on the date of
retirement/discharge/invalided out/death, shall continue to be treated
as part of emoluments along with the emoluments as defined in para 4.1
above.
4.3 SPECIAL PROVISIONS FOR THOSE WHO OPTED TO CONTINUE T.O DRAW PAY IN THE PRE-REVISED SCALE OF PAY
4.3.1
Those who have elected to continue to draw pay in the pre-revised scale
of pay and have retired/ discharged/ invalided out of service on or
after 1.1.2016, “their pension and gratuity, as applicable, shall be
calculated under the rules in force immediately before coming into
effect of these-orders".
4.3.2 The term 'Reckonable Emoluments'
for the purpose of pensionary benefits under this Para 4.3.1 shall be
the same as defined in para 3.1 of this Ministry's letter No
17(4)/2008(2)/ D(Pen/Pol) dated 12.11.2008 and shall also include
Dearness Allowance notified under Sixth CPC Pay structure.
4.3.3
Entitlement of gratuity shall be determined, under the order in
force-immediately before coming into effect of these orders subject to
the maximum ceiling as prescribed in Para 8 of this Ministry's letter
No. 17(4)/2008(2)/D (Pen/Pol) dated 12.11.2008.
4.3.4 Family Pension shall also be allowed in accordance with orders applicable prior to the issue of these orders.
4.4
In the case of Commissioned Officers and JCOs/ORs who have opted for
the revised pay structure and have retired/discharged within 10 months
from the date of coming over to the revised pay structure, the average
emoluments for 10 months period preceding retirement/discharge will be
calculated by taking into account pay as follows:-
(a) For the period during which pay is drawn in the revised pay
|
Pay
drawn in the prescribed Pay Matrix plus structure Military Service Pay,
'X' Group pay and whole of Classification Allowance (where applicable
in case of JCOs/ORs) and Non Practicing Allowance, if any.
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(b) For the period during which pay was drawn in the pre-revised pay scales
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Pay
determined after applying multiplying factor of 2.57 to the sum of
existing pay in the Pay Band, Grade Pay, Military Service Pay, 'X' Group
Pay (in case of JCOs/ORs) and NPA, if any, drawn during the relevant
period plus whole of classification allowance, if an ,drawn by JCOs/OR.
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5. QUALIFYING SERVICE
5.1
The minimum period of qualifying service prescribed for earning various
kind of pension and gratuity by Defence Forces personnel, shall
continue as hithertofore. There shall also be no change in the
provisions for determining reckonable qualifying service for calculating
pension and gratuity.-
6.
PENSION
6.1
Subject to para 6.2, there shall be no change in the provisions
regulating the amount of pensions including pension determined under
casualty pensionary awards. However, the provisions for determining
pension based on, notional maximum of pre-revised pay scale in respect
of JCOs/OR, shall be discontinued.
6.2 The amount of pension shall
be subject to a minimum of Rs 9,000/- and the maximum pension would be
50% of highest pay in the Government (the highest pay in the Government
is Rs 2,50,000/- with effect from 1.1.2016). However, the maximum
ceiling'shall be applicable only in the case of Service/Retiring
Pension, Service element of Disability/ Liberalized disability/ War
Injury Pension and Ordinary Family Pension. The said ceiling is not
applicable in the cases of Disability/ Liberalized Disability/ War
injury element, being authorized under casualty pensionary awards.
6.3
The quantum of additional pension/family pension available to the old
pensioners/family pensioners shall be continue to be as follows-
Age of pensioner / family pensioner
|
Additional quantum of pension
|
From 80 years to less than 85 years
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20% of revised basic pension/ family pension
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From 85 years to less than 90 years
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30% of revised basic pension /family pension
|
From 90 years to less than 95 years
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40% of revised basic pension / family pension
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From 95 years to less than 100 years
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50% of revised basic pension / family pension
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100 years or more
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100% of revised basic pension/ family pension
|
The
Pension Sanctioning Authorities should ensure that the date of birth
and the age of a pensioner! family pensioner, are invariably indicated
in the Pension Payment Order to facilitate payment of additional pension
by the Pension Disbursing Agencies as soon as it becomes due. Dearness
relief shall also be admissible on the additional pension available to
old pensioners/family pensioners.
Note: The
additional pension payable to old pensioners/ family pensioners of 80
years of age and above shall also be applicable to old pensioners/
family pensioners of 80 years of age and above in receipt of War injury
pension! Disability pension/ Liberalized family pension! Special family
pension.
7.
GRATUITY
7.1 The maximum limit
of all kinds of Gratuity is. Retiring/ Retirement /Service Invalid/
Special/ Terminal/ Death Gratuity shall be Rs. 20 lakhs. This ceiling on
gratuity shall be increased by 25% whenever the Dearness Allowance
rises by 50% of the basic pay.
7.2 DEATH GRATUITY
The rates for payment of death gratuity shall be as under:
Length of qualifying service
|
Rate of Death Gratuity
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Less than One year
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2 times of monthly emoluments
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One Year or more but less than 5 years
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6 times of monthly emoluments
|
5 years or more but less than 11 years
|
12 times of monthly emoluments
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11 years or more but less than 20 years
|
20 times of monthly emoluments
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20 years or more
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Half month's emoluments for every six monthly period of qualifying service subject to a maximum of 33 times of emoluments.
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8.FAMILY PENSION
8.1
Subject to para 8.2, there shall be no change in the provisions
regulating the amount of various kinds of family pensions including
family pension determined under casualty pensionary awards and
additional family pension applicable to old family pensioners.
8.2
. The amount of all kind of family pension shall be subject to a
minimum of Rs 9,000/-. The maximum amount of normal rate and enhanced
rate of ordinary family pension shall be 30% and 50% respectively of
highest pay in the Government which is Rs 250,000/- with effect from
1.1.2016. The maximum ceiling is, however, not applicable in the cases
of Special Family! Liberalized Family Pension etc., applicable under
casualty pensionary awards.
8.3 The dependency criteria for the
purpose of family pension shall continue to be the minimum family
pension along with Dearness Relief thereon.
9. Ex-GRATIA LUMP SUM COMPENSATION IN CASES OF INVALIDMENT
9.1
- The Ex-gratia lump Sum compensation to Defence Service personnel who
are boarded but of service on account of disability/ war injury
attributable to or aggravated by military service, shall be paid @ Rs 20
lakh for 100% disability subject to provisions as stipulated in this
Ministry's letter No. 2(2)/2011/D(Pea/Pol) dated 26.12.2011. For
disability/ war injury less than 100% but not less than 20%, the amount
of Ex-gratia compensation shall be proportionately reduced. No Ex-gratia
lump sum compensation shall be payable for disability/ war injury less
than 20%. The proportionate compensation would be based on actual
percentage of disability as certified by the Invaliding Medical-Board,
without applying broad banding provisions as contained in Para 7.2 of
this Ministry's letter No 1(2)!97/D(Pen-C) dated 31.01.2001.
10.
BROAD-BANDING OF PERCENTAGE OF DISABILITY/WAR INJURY ON DISCHARGE
10.1
Where an Armed Forces personnel is discharged/retired under the
circumstances mentioned in Para 4.1 of this Ministry's letter No
l(2)/97/D(Pen-C) dated 311.2001 with disability including cases covered
under this Ministry's letter “No 16(5)/2008/D(Pen/Policy) dated
29.9.2009 and the disability/ war injury has been accepted as 20% and
more, the extent of disability or functional incapacity shall be
determined in the manner prescribed in Para 7.2 of said letter dated
31.1.2001 for the purpose of computing disability/war injury.
10.2
Rates for calculation of disability where composite assessment is made
due to existence of disability, as well as war injury, shall be
determined in terms of provision contained in Para 3(b) of Ministry's
letter No. 16(02)/2015-D(Pen/Pol) dated 8th August 2016.
11.
EX-GRATIA AWARDS TO CADET (DIRECT)
11.1
In cases of disablement ! death, following Ex-gratia award shall be
payable subject to the same conditions as hitherto in force in the event
of invalidment on medical ground / death of a Cadet (Direct) due to
causes attributable to or aggravated by military training.
11.1.1 Monthly Ex-gratia amount of Rs 9,000/- per month.
11.1.2
In cases of disablement, Ex-gratia disability award @ Rs 16,200/- per
month shall be payable in addition for 100% of disability during period
of disablement subject to prorata reduction in case the degree of
disablement is less than 100%. No disability award shall be payable in
cases where the degree of disablement is less than 20%.
11.1.3 In cases of death, Ex-gratia amount of Rs 12.5 Iakhs.
11.1.4
The Ex-gratia awards to Cadets (Direct)! NoK, shall be sanctioned
purely on ex-gratia basis and the same shall not be treated as pension
for any purpose.
However, dearness relief at applicable rates shall be granted on monthly ex-gratia as well as ex-gratia disability award.
12.
CONSTANT ATTENDANT ALLOWANCE (CAA)
12.1 "Constant Attendant Allowance shall continue to be admissible under the
condition as hitherto fore at the existing rate from 1.1.2016 to
30.06.2017. However, it shall be admissible at the uniform rate of Rs.
6750!- per month, irrespective of the rank with effect from 1.7.2017."
13.
COMMUTATION OF PENSION:
13.1
There shall be no change in the provisions relating to commutation
values, the limit upto that the pension can be commuted or the period
after which the commuted pension is to be restored.
13.2 The
pensioners who have retired between 1.1.2016 and date of issue of orders
for revised pay/ pension based on the recommendations of the 7th CPC,
shall have an option, in relaxation of provisions of relevant Pension
Regulations, not to commute the pension which has become additionally
commutable on retrospective revision of pay / pension on implementation
of recommendations of the 7th CPC, Option form to be used for this
purpose shall be prescribed by the PCDA (Pension), Allahabad along with
their implementation instructions.
13.3 The option may be invited
only from those who Want to commute their pension which has become
additionally commutable as per Para 13.2 above and no commutation shall
be allowed as a default. In such cases, RO/HOO/PSAs will finalize the
cases without waiting for Option for commutation of additional pension
and such option, if any, received later on (within four months from the
date of issue of this letter) may be processed separately for additional
commutation. Option for additional commutation on the basis of revised
pension once exercised would be final and in no case it would be
entertained at a later stage. Service Hqrs may be deputed as Nodal
agencies to carry out such exercise with the respective ROs for the
speedy implementation of work and forward such cases to PSAs.
GENERAL INSTRUCTIONS
14.
The amount of various pensionary awards admissible in terms of this
order, shall be round-ed off to the next higher rupee by the Pension
Sanctioning Authorities.
15.If the amount of any monthly pension!
family pension admissible under the provisions of this letter works out
to be less than Rs 9,000/- per month, it shall be stepped up to Rs
9,000!- per month and authorized for payment at this rate.
16.The
pension/ family pension notified in terms of these orders from 1.1.2016
or thereafter, shall qualify for dearness relief sanctioned by the
Government from time to time in accordance with the relevant rules!
instructions.
PROCEDURE FOR SANCTION OF'REVISED PENSION TO THOSE WHO HAVE ALREADY RETIRED
17.
For revision of pensionary awards as per provisions of this letter in
respect of Armed Forces personnel who have already retired/ discharged/
invalided out/ died on or after 1.1.2016 and in whose cases, pensionary
benefits at pre-revised rates have already been notified, the Record
Offices concerned in case of JCOs/ORs and PCDA(O) Pune/ Naval Pay Office
Mumbai/ AFCAO, New Delhi, as the case may be in respect of commissioned
officers, will initiate and forward revised LPC-cum-Data Sheet as
prescribed by PCDA(Pensions), Allahabad, to their respective Pension
Sanctioning Authorities (PSAs) for issue of Corrigendum PPOs notifying
the revised pensionary awards. Further, implementation instructions to
all concerned, shall be issued by PCDA (Pensions), Allahabad immediately
on receipt of these orders.
18. Pension Regulations of the three Services, shall be amended in due course.
19.
This issues with the concurrence of the Finance Division of this
Ministry vide their ID Note No.10(03)/2017/Fin/Pen dated 30.08.2017.
20.Hindi version will follow.
Yours faithfully
S/d,
(Manoj Sinha)
Under Secretary to the Government of India.
