No.14021/4/2016-AIS(11)
Government of India
Ministry of Personnel, P.G. and Pension
Department of Personnel & Training
New Delhi,
Dated : 19.05.2017
To,
The Chief Secretaries of
All States/Union Territories.
Sub:
Implementation of Government's decision on the recommendation of the
Seventh Central Pay Commission - Revision of pension of pre-2016
pensioners/family pensioners, etc.- reg.
Sir,
I am
directed to say that in pursuance of Government's decision on the
recommendations of the Seventh Central Pay Commission, the Department of
Pension & Pensioners' Welfare by its OM No. 38/37/2016- P&PW(A)
dated 12th May, 2017 (copy enclosed) has issued the necessary detailed
order on the above mentioned subject.
2. The applicability of the
provisions of the aforesaid Office Memorandum of the Department of
Pension & Pensioners Welfare to the members of All India Services
has been considered and it has been decided that the provisions
contained in the aforesaid Office Memorandum issued by the Department of
Pension & Pensioners shall be equally applicable Mutatis-Mutandis
to members of All India Service governed by the All India Service
(Death-Cum-Retirement-Benefits) Rules, 1958.
Encl : as above.
Yours faithfully,
S/d,
(Kavitha Padmanaban)
Deputy Secretary (Services)
Revision of pension of pre- 2016 pensioners/family pensioners - O.M.12th may 2017
No.38/37/2016-P&PW(A)
Ministry of Personnel, PG & Pensions
Department of Pension & Pensioners' Welfare
3rd Floor, Lok Nayak Bhawan
Khan Market, New Delhi
Dated :12.05.2017
Office Memorandum
Sub:-
Implementation of Government's decision on the recommendations of the
Seventh Central Pay Commission - Revision of pension of pre-2016
pensioners/family pensioners, etc.
The undersigned is
directed to say that the 7th Central Pay Commission (7th CPC), in its
Report, recommended two formulations for revision of pension of pre-2016
pensioners. A Resolution No. 38/37/2016-P&PW (A) dated 04.08.2016
was issued by this Department indicating the decisions taken by the
Government on the various recommendations of the 7th CPC on pensionary
matters.
2.Based on the decisions taken by the Government on the
recommendations of the 7th CPC, orders for revision of pension of
pre-2016 pensioners/family pensioners in accordance with second
Formulation were issued vide this Department's OM No.
38/37/2016-P&PW (A) (ii) dated 04.08.2016. It was provided in this
O.M. that the revised pension/family pension w.e.f. 1.1.2016 of pre-2016
pensioners/family pensioners shall be determined by multiplying the
pension/family pension as had been fixed at the time of implementation
of the recommendations of the 6th CPC, by 2.57.
3.In accordance
with the decision mentioned in this Department's Resolution
38/37/2016-P&PW (A) dated 04.08.2016 and OM No.
38/37/2016-P&PW(A) (ii) dated 04.08.2016, the feasibility of the
first option recommended by 7th CPC has been examined by a Committee
headed by Secretary, Department of Pension & Pensioners' Welfare.
4.
The aforesaid Committee has submitted its Report and the
recommendations made by the Committee have been considered by the
Government. Accordingly, it has been decided that the revised
pension/family pension w.e.f. 01.01.2016 in respect of all Central civil
pensioners/family pensioners, including CAPF's, who retired/died prior
to 01.01.2016, may be revised by notionally fixing their pay in the pay
matrix recommended by the 7th CPC in the level corresponding to the pay
in the pay scale/pay band and grade pay at which they retired/died. This
will be done by notional pay fixation under each intervening Pay
Commission based on the Formula for revision of pay. While fixing pay on
notional basis, the pay fixation formulae approved by the Government
and other relevant instructions on the subject in force at the relevant
time shall be strictly followed. 50% of the notional pay as on 01.2016
shall be the revised pension and 30% of this notional pay shall be the
revised family pension w.e.f. 1.1.2016 as per the first Formulation. In
the case of family pensioners who were entitled to family pension at
enhanced rate, the revised family pension shall be 50% of the notional
pay as on 01.01.2016 and shall be payable till the period up to which
family pension at enhanced rate is admissible as per rules. The amount
of revised pension/family pension so arrived at shall be rounded off to
next higher rupee.
5.It has also been decided that higher of the
two Formulations i,e. the pension/family pension already revised in
accordance with this Department's OM No. 38/37/2016-P&PW(A) (ii)
dated 04.08.2016 or the revised pension/family pension as worked out in
accordance with para 4 above, shall be granted to pre-2016 central civil
pensioners as revised pension/family pension w.e.f. 01.01.2016. In
cases where pension/family pension being paid w.e.f. 1.1.2016 in
accordance with this Departments OM No. 38/37/2016-P&PW(A) (ii)
dated 04.08.2016 happens to be more than pension/family pension as
worked out in accordance with para 4 above, the pension/family pension
already being paid shall be treated as revised pension/family pension
w.e.f. 1.1.2016.
6. Instructions were issued vide this
Department's OM No. 45/86/97-P&PW(A) (iii) dated 10.02.1998 for
revision of pension/ family pension in respect of Government servants
who retired or died before 01.01.1986, by notional fixation of their pay
in the scale of pay introduced with effect from 01.01.1986. The
notional pay so worked out as on 01.01.1986 was treated as average
emoluments/last pay for the purpose of calculation of notional
pension/family pension as on 01.01.1986. The notional pension/family
pension so arrived at was further revised with effect from 01.1996 and
was paid in accordance with the instructions issued for revision of
pension/family pension of pre-1996 pensioners/family pensioners in
implementation of the recommendations of the 5th Central Pay Commission.
7.
Accordingly, for the purpose of calculation of notional pay w.e.f.
1.1.2016 of those Government servants who retired or died before
01.01.1986, the pay scale and the notional pay as on 1.1.1986, as
arrived at in terms of the instructions issued vide this Department's OM
45/86/97-P&PW(A) dated 10.02.1998, will be treated as the pay scale
and the pay of the concerned Government servant as on 1.1.1986. In the
case of those Government servants who retired or died on or after
01.01.1986 but before 1.1.2016, the actual pay and the pay scale from
which they retired or died would be taken into consideration for the
purpose of calculation of the notional pay as on 1.1.2016 in accordance
with para 4 above.
8.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).
9.The pension/family pension as
worked out in accordance with provisions of Para 4 and 5 above shall be
treated as ‘Basic Pension' with effect from 01.01.2016. The revised
pension/family pension includes dearness relief sanctioned from 1.2016
and shall qualify for grant of Dearness Relief sanctioned thereafter.
10.The
existing instructions regarding regulation of dearness relief to
employed/re-employed pensioners/family pensioners, as contained in
Department of Pension & Pensioners Welfare O.M. No.
45173/97-P&PW(G) dated 02.07.1999, as amended from time to time,
shall continue to apply.
11. These orders would not be applicable
for the purpose of revision of pension of those pensioners who were
drawing compulsory retirement pension under Rule 40 of the CCS (Pension)
Rules or compassionate allowance under Rule 41 of the CCS (Pension)
Rules. The pensioners in these categories would continue to be entitled
to revised pension in accordance with the instructions contained in this
Department's M. No. 38/37/2016-P&PW(A)(ii) dated 4.8.2016.
12.
The pension of the pensioners who are drawing monthly pension from the
Government on permanent absorption in public sector
undertakings/autonomous bodies will also be revised in accordance with
these orders. However, separate orders will be issued for revision of
pension of those pensioners who had earlier drawn one time lump sum
terminal benefits on absorption in public sector undertakings, etc. and
are drawing one-third restored pension as per the instructions issued by
this Department from time to time.
13.In cases where, on
permanent absorption in public sector undertakings/autonomous bodies,
the terms of absorption and/or the rules permit grant of family pension
under the CCS (Pension) Rules, 1972 or the corresponding rules
applicable to Railway employees/members of All India Services, the
family pension being drawn by family pensioners will be updated in
accordance with these orders.
14.Since the consolidated pension
will be inclusive of commuted portion of pension, if any, the commuted
portion will be deducted from the said amount while making monthly
disbursements.
15.The quantum of age-related pension/family
pension available to the old pensioners/ family pensioners shall
continue to be as follows:-
| Aqe 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 is Rs.10,000 pm, the pension will be shown as
(i).Basic pension=Rs.10,000 and (ii) Additional pension = Rs.2,000 pm.
The pension on his/her attaining the age of 85 years will be shown as
(1).Basic Pension = Rs.10,000 and (ii) additional pension = Rs.3,000 pm.
Dearness relief will be admissible on the additional pension available
to the old pensioners also.
16.A few examples of calculation of pension/family pension in the manner prescribed above are given in Annexure-1 to this O.M.
17.No
arrears on account of revision of Pension/Family pension on notional
fixation of pay will be admissible for the period prior to 1.1.2016. The
arrears on account of revision of pension/family pension in terms of
these orders would be admissible with effect from 01.01.2016. For
calculation of arrears becoming due on the revision of pension/ family
pension on the basis of this 0.M., the arrears of pension and the
revised pension/family pension already paid on revision of
pension/family pension in accordance with the instructions contained in
this Department's OM No. 38/37/2016-P&PW(A) (ii) dated 04.08.2016
shall be adjusted.
18. It shall be the responsibility of the Head
of Department and Pay and Accounts Office attached to that office from
which the Government servant had retired or was working last before his
death to revise the pension/ family pension of pre - 2016 pensioners/
family pensioners with effect from 01.01.2016 in accordance with these
orders and to issue a revised pension payment authority. The Pension
Sanctioning Authority would impress upon the concerned Head of Office
for fixation of pay on notional basis at the earliest and issue revised
authority at the earliest. The revised authority will be issued under
the existing PPO number and would travel to the Pension Disbursing
Authority through the same channel through which the original PPO had
travelled.
19.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, 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. Separate orders will be issued by
the Ministry of Defence in regard to Armed Forces pensioners/family
pensioners.
20 These orders do not apply to retired High Court and
Supreme Court Judges and other Constitutional/Statutory Authorities
whose pension etc. is governed by separate rules/orders.
21. These
orders issue with the concurrence of Ministry of Finance (Department of
Expenditure) vide their 1. D. No. 30-1/33(c)/2016-1C dated 11.05.2017
and 1.D. No. 30-1/33(c)/2016-IC dated 12.05.2017.
22.In their
application to the persons belonging to the Indian Audit and
Accounts Department, these orders issue in consultation with the
Comptroller and Auditor General of India.
23.Ministry of
Agriculture etc. are requested to bring the contents of these orders to
the notice of Heads of Department/Controller of Accounts, Pay and
Accounts Officers, and Attached and Subordinate Offices under them on
top priority basis. All Ministries/Departments are requested to accord
top priority to the work of revision of pension of pre-2016
pensioners/family pensioners and issue the revised Pension Payment
Authority in respect of all pre-2016 pensioners.
24. Hindi version will follow.
S/d,
(Harjit Singh)
Director
ANNEXURE - I
Examples
(Reference Para 16 of OM No. 38/37/2016-P&PW(A) Dated 12th May,2017.)
S.No
| Description |
1 gf case
|
2r1° Case
|
3ra Case
|
4Th Case
|
| 1. | Date of Retirement |
31.12.1984
|
31 01.1989
|
30-06.1999
|
31.05.2015
|
| 2. |
Scale of Pay (or Pay Band & G.P.) at the time of retirement
OR
Notional pay scale as on 1.1.1986 for those retired before 1.1.1986
|
975-1660
(4th CPC Scale) |
3000-4500
(4th CPC Scale) |
4000-6000
(5th CPC Scale) |
6700049000
(6th CPC Scale) |
| 3. | Pay on retirement
OR
Notional pay as on 1.1.1986 for those retired before 1.1.1986
|
1210
|
4000
|
4800
|
79000
|
| 4. | Pension as on 01.01.2016before revision |
4191
|
12600
|
5424
|
39500
|
| 5. | Family pension as on01.01.2016 before revision |
3500
|
7560
|
3500
|
23700
|
| 6. | Family pension at enhancedrate as on 01.01.2016
before revision (if applicable)
|
NA
|
N.A.
|
NA
|
39500
|
| 7. | Revised pension bymultiplying pre-revised
pension by 2.57 |
10771
|
32382
|
13940
|
101515
|
| 8. |
Revised family pension by multiplying pre-revised family pension by 2.57
|
9000
|
19430
|
9000
|
60909
|
| Revised family pension at
enhanced rate by multiplying pre-revised enhanced family pension by 2.57
|
NA
|
NA
|
N.A.
|
101515
|
| 10. | Pay fixed on notional basis on 1.1.1996 |
3710
(3200-4900)
|
11300
(10000-15200)
|
N.A.
|
NA
|
| 11. | Pay fixed on notional basis on 1.1.2006 |
8910
(PB-I, GP 2000)
|
27620
(PB-3, GP 6600)
|
11330
(PB-1, GP-2400)
|
NA
|
| 12. | Pay fixed on notional basis on 1.1.2016 |
23100 (Level 3)
|
7 800 (Level-11)
|
29600 (Leval-4)
|
205100 (Level-15)
|
| 13. | Revised pension w.e.f. 1.1.2016 as per first formulation. |
11550
|
35900
|
14800
|
102550
|
| 14. | Revised family pension w.e.f. 1.1.2016 as per first formulation. |
9000
|
21540
|
9000
|
61530
|
| 15. | Revised family pension at enhanced rate w.e.f. 1.1,2016 as per first formulation. |
NA
|
N.A.
|
N.A.
|
102550
|
| 16. | Revised pension payable (Higher of S. No. 7 and 13) |
11550
|
35900
|
14800
|
102550
|
| 17. | Revised family pension payable (Higher of S.No. 8 and 14) |
9000
|
21540
|
9000
|
61530
|
| 18. | Revised family pension at enhanced rate payable (Higher of S.No. 9 and 15) |
NA
|
N.A.
|
N.A.
|
102550
|
Signed Copy
