7th CPC Revision of Pension of Pre-2016 Pensioners: Order issued on Committee's report
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, the 12th May, 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 OM. that the revised pension/famiiy
pension wet. 112016 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 No. 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. White 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
01.01.2016 shall be the revised pension and 30% of this notional pay
shall be the revised family pension wet. 1.1.2016 as per the first
Permutation. 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 is 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 Department’s
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 01.01.1996 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 112016 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 30:16 respectively of the highest
pay in the Government (The highest pay in the Government is Rs. 250,000
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 1.1.2016
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 OM. No.
45/73/97-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 OM. 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:
| Age of pensioner/family pensioner | 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 (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.
16. A few examples of calculation of pension/family pension in the manner prescribed above are given in Annexure-I to this OM.
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 O.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 111973. 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 ID. No. 30-1l33(c)/2016-IC dated 11.05.2017 and
ID. No.30-1133(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 ore-2016 pensioners/family pensioners and
issue the revised Pension Payment Authority in respect of all ore-2016
pensioners,
24. Hindi version will follow.
(Harjit Singh)
Director
EXAMPLES
Source:
Pensioners Portal
