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Friday, 5 August 2016

7th Pay Commission Resolution – Pensionary benefits

Indian Military Veterans
7th Pay Commission Resolution – Pensionary benefits
(TO BE PUBLISHED IN THE GAZETTE OF INDIA (EXTRAORDINARY), PART I, SECTION 1)
GOVERNMENT OF INDIA
MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
(Department of Pension and Pensioners’ Welfare)
RESOLUTION
New Delhi, the 4th August, 2016
No.38/37/2016-P&PW (A) – The Terms of Reference of the Seventh Central Pay Commission as contained in Ministry of Finance (Department of Expenditure) Resolution No.1/1/2013-E.III (A) dated 28.2.2014 included the following:
“To examine the principles which should govern the structure of pension and other retirement benefits, including revision of pension in the case of employees who have retired prior to the date of effect of these recommendations, keeping in view that retirement benefits of all Central Government employees appointed on and after 01.01.2004 are covered by the New Pension Scheme (NPS).”
2. The Commission, on 19th November, 2015, submitted its report to the Government on Terms of Reference as contained in aforementioned Resolution dated 28.02.2014. Government, after consideration, has decided to accept the recommendations of the Commission on pensioner benefits to the Central Government civil employees, including employees of the Union Territories and Members of All India Services subject to certain
modifications, as specified hereinafter ..
3. Detailed recommendations of the Commission relating to pensionary benefits and the decisions taken thereon by the Government are listed in the statement annexed to this Resolution.
4. The revised provisions regarding pensionary benefits, which have been accepted as indicated in the Annexure, will be effective from 01.01.2016.
(Vandana Sharma)
Joint Secretary to the Govt. of India
Annexure
statement showing the recommendations of the Seventh Central Pay Commission relating to principles which should govern the structure of pension and other terminal benefits and the decisions of the Government thereon.
Item No.
Recommendation
Decision of Government
1
Fixed Medical Allowance
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.
(Para 8.17.52 of the Report)
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.
2
Constant Attendance Allowance
The allowance may be increased by a factor of 1.5 i.e to Rs.6750/- per month. The Allowance needs further increase by 25% each time DA rises by 50%
(Para 8.17.29 of the Report)
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. Constant attendant Allowance shall be paid at existing rates.
3
General Provident Fund
Status quo may be maintained in this respect.
(Para 9.4.4 of the Report
Accepted
4
Rates of Pension & Family Pension
The Commission does not recommend any further increase in the rate of pension and Family Pension from the existing levels.
(Para 10.1.25 of the Report)
Accepted
5
Quantum of Minimum Pension
The recommendations of the commission in relation to pay of a personnel will lead to a significant increase in the minimum from the existing Rs.7,000 per month to Rs.18,000 per month. This, based on computation of pension, will raise minimum pension from the existing Rs.3500 to Rs.9,000. The minimum pension based on the recommendations of the commission will increase by 2.57 times over the existing level.
(Para 10.1.27 of the Report)
Accepted
6
Rate of additional Pension and Family Pension to the older pensioners
The commission is of the view that the existing rates of additional pension and additional family pension are appropriate.
(Para 10.1.30 of the Report)
Accepted
7
Time Period for enhanced family pension.
The commission notes that the recommendation with regard to period of eligibility of the enhanced family pension of 10 years in case of death of a serving employee was made based on the recommendations of VI th CPc Report. No further change is being recommended by the commission.
Accepted
8
Gratuity Ceiling and its indexation.
The Commission recommends enhancement in the ceiling of gratuity from the existing Rs.10 lakh to Rs.20 Lakh from 01.01.2016. The Commission further recommends the ceiling on gratuity may increase by 25% whenever DA rises by 50%.
(Para 10.1.37 of the Report)
Accepted
9
Rationalization of death gratuity
The Commission, after examination of the matter, recommends the following rates for payment of death gratuity:
Length of Service
Rate of Death Gratuity
Less than One Year
2 times of monthly
One year or more but less than 5 years
6 times of monthly emoluments
5 years or more but less than 11 years
12 times of monthly emoluments
11 years or more but less than 20 years
20 times of monthly emoluments
20 years or more
Half month of emoluments for every completed six monthly period of qualifying service subject to a maximum of 33 times of emoluments.
Para 10.1.41 of the Report
Accepted
10
Commutation of Pension and restoration of commuted pension
The Commission does not recommend any change either in the maximum percentage of commutation or in the period of restoration.
(Para 10.1.43 of the Report)
Accepted
11
Revision of Pension of Pre 7th 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 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 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
12
Ex-gratia Lumpsum Compensation
The Commission recommends a Common regime for payment of ex-gratia lump-sum compensation for civil and defence forces personnel, payable to the next of Kin at the following rates:
Circumstances
Existing
Proposed
Death occurring due to accidents in course of performance of duties
10 Lakh
25 Lakh
Death in the course of performance of duties attributed to acts of violence by terrorists, anti social elements etc.
10 Lakh
25 Lakh
Death occurring in border
skirmishes and action
against militants, terrorists,
extremists, sea pirates
15 Lakh
35 Lakh
Death occurring while on
duty in the specified high
altitude, unaccessible border
posts, on account of natural
disasters, extreme weather
conditions
15 Lakh
35 Lakh
Death occurring during enemy action in war or such war like engagements, which are specifically notified by
Ministry of Defence and
Death occurring during
evacuation of Indian
Nationals from a war-torn
zone in foreign country
20 Lakh
45 Lakh
(Para 10.2.77)
Accepted

Original Copy

7th CPC Implementation – Revision of Pension of Pre-2016 Pensioners / family pensioners

Indian Military Veterans
Implementation 7th Pay Commission Revision of pension of pre-2016 Pensioners/Family Pensioners
F.No.38/37/2016-P&PW(A)(ii)
Government Of India
Ministry Of Personnerl, public Grievances & Pensions
Department of Pension & Pensioners Welfare
Lok Nayak Bhawan, New Delhi – 11003
Dated 4th August 2016
OFFICE MEMORANDUM
Subject: Implementation of Government’s decisions 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 in pursuance of 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.
2.1 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.
2.2 Separate orders will be issued by the Ministry of Defence in regard to Armed Forces pensioners/family pensioners.
2.3 These orders also 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.
3. In these orders :
a.‘Existing pensioner’ or ‘Existing Family pensioner’ means a pensioner/family pensioner to whom these orders are applicable in terms of para 2.1 above.
b.‘Existing pension’ or ‘Existing Family Pension means the basic pension (inclusive of commuted portion, if any) or basic family pension. as had been fixed at the time of implementation of 6th CPC Recommendations, which an existing pensioner or family pensioner was entitled to.
4.1 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 6t CPC regime in the scale of Rs.67000-79000:
Amount in Rs.
1Basic Pension fixed in 6th CPC39500
2Revised pension fixed under 7th CPC (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.
1Basic Pension fixed in 4th CPC1940
2Basic Pension as revised in 6th CPC12600
3Revised Pension fixed under 7th CPC (Using a Multiple of 2.57)32,382
4.2 For this purpose, the existing pension/family pension will be the basic pension/family pension only without the element of additional pension available to the old pensioners/family pensioners of the age of 80 years and above. The additional pension/family pension payable to the old pensioners/family pensioners will be worked out in accordance with para 4.5 of this O.M
4.3 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.
4.4 The Minimum pension with effect from 01.01.2016 will be Rs.9000/- per month (excluding the element of additional pension of 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.)
4.5 The quantum of pension/family pension available to the old pensioners/family pensioners shall continue to be as follows:
Age of Pensioner/family pensionerAdditional quantum of pension
From 80 years to less than 85 years20% of revised basic pension/family pension
From 85 years to less than 90 years30% of revised basic pension/family pension
From 90 years to less than 95 years40% of revised basic pension/family pension
From 95 years to less than 100 years50% of revised basic pension/family pension
100 years or more100% 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.10,000 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 (i).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.
4.6 The revised pension/family pension arrived at as per paragraph 4.1 includes dearness relief sanctioned from 1.1.2016
5. Where the revised pension/family pension in terms of paragraph 4.1 above works out to an amount less than Rs. 9000/-, the same shall be stepped up to Rs. 9000/-. This will be regarded as pension/family pension with effect from 1.1.2016.
6. 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.
7.The cases of Central Government employees who have been permanently absorbed in public sector undertakings/autonomous bodies will be regulated as follows:-
(a) PENSION
Where the Government servants on permanent absorption in public sector undertakings/autonomous bodies continue to draw pension separately from the Government, the pension of such absorbees will be updated in terms of these orders. In cases where the Government servants have drawn one time lump sum terminal benefits equal to 100% of their pensions and have become entitled to the restoration of one-third commuted portion of pension as per the instructions issued by this Department from time to time, their cases will not be covered by these orders. Orders for regulating pension of such pensioners will be issued separately.
(b) FAMILY PENSION
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.
8. The matter regarding Constant Attendant Allowance admissible to the existing pensioners shall 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, Constant Attendant Allowance shall be paid at existing rates
9. All Pension Disbursing Authorities including Public Sector Banks handling disbursement of pension to the Central Government pensioners are hereby authorised to pay pension/family pension to existing pensioners/family pensioners at the revised rates in terms of para 4.1 and 5 above without any further authorisation from the concerned Accounts Officers/Head of Office etc. Wherever the age of pensioner/ family pensioner is available on the pension payment order, the additional pension/ family pension in termsof para 4.4. above may also be paid by the pension disbursing authorities immediately without any further authorisation from the concerned Account Officer/ Head of Office, etc. A suitable entry regarding the revised pension shall be recorded by the pension Disbursing Authorities in both halves of the Pension Payment Order.
10 The pension/family pension as worked out in accordance with provisions of Para 4.1. 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 1.1.2016 and shall qualify for grant of Dearness Relief sanctioned thereafter.
11. Further orders in regard to revision of pension based on the recommendations of the Committee to be constituted in terms of the Government’s decision on Item No. 11 of this Department’s Resolution No. 38/37/2016-P&PW (A) dated 4th August, 2016, will be issued in due course
12. After a decision as in para 11 above is taken by the Government and orders are issued in this regard, the Head of the Department of the Ministry, Department, Office, etc. from which the government servant had retired or where he was working prior to his demise will revise the pension/family pension of all pensioners/ family pensioners with effect from 1st January 2016 in accordance with those orders and issue revised Pension
Payment Order (PPOs) accordingly.
13. It is considered desirable that the benefit of these orders should reach the pensioners as expeditiously as possible. To achieve this objective it is desired that all Pension Disbursing Authorities should ensure that the revised pension and the arrears due to the pensioners in terms of para 4.1. and para 5 above is paid to the pensioners or credited to their account by 31st August, 2016 or before positively
14. In their application to the persons belonging to Indian Audit and Accounts Department, these orders issue in consultation with the Comptroller and Auditor General of India
15. Ministry of Agriculture etc. are requested to bring the contents of these Orders to the notice of Controller of Accounts/Pay and Accounts Officers and Attached and subordinate Offices under them on a top priority basis. All pension disbursing offices are also advised to prominently display these orders on their notice boards for the benefit of pensioners
16. Hindi version will follow.
(Vandana Sharma)
Joint Secretary to the Government of India

Original Copy


Implementation of Governments decisions on the recommendations of the Seventh Central Pay Commission - Revision of pension of pre-2016 pensioners/family pensioners etc.

Indian Military Veterans




7th CPC : Gazette Notification issued for pensioners

7th CPC : Gazette Notification issued for pensioners
Govt. issued the resolution adopted and accepted for revision of pension for pensioners.
The office order for payment of enhanced pension and arrears payment is likely to be issued shortly.
Click here for the resolution

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