FIXATION OF PENSION
Fixation of Pension
Press Information Bureau
Government of India
Ministry of Personnel, Public Grievances &
Pensions
02-August-2017 15:18 IST
Fixation of Pension
In implementation of Government's decision on the
recommendation of the Seventh Central Pay Commission (7th CPC), orders have
been issued vide Department of Pension & Pensioners’ Welfare O.M. No.
38/37/16-P&PW(A) (i) dated 04.08.2016 for revision of provisions regulating
pension/gratuity/ commutation of pension/family pension/disability
pension/ex-gratia lump-sum compensation, etc. in respect of the employees
retiring on or after 01.01.2016.v For revision of pension of pre-2016 civil
pensioners, the 7th CPC recommended the following two formulations:
(i) Notional Pay of employees who retired
prior to 01.01.2016 may be fixed in the Pay Matrix on the basis of the Pay Band
and Grade Pay at which they retired, by adding the number of increments he/ she
had earned in that level while in service, to the minimum of the corresponding
level in the matrix. Fifty percent of the total amount so arrived at shall be
the revised pension.
(ii) The pension, as had been fixed at the
time of implementation of the 6th CPC recommendations, may be multiplied by
2.57 to arrive at an alternate value for the revised pension.
7th CPC recommended that the
pensioners may be given the option of choosing the formulation which is more
beneficial to them. Orders were issued for revision of pension as per
Formulation (ii) above vide Department of Pension & Pensioners’ Welfare
O.M. No. 38/37/16-P&PW(A) (ii) dated 04.08.2016 and the pension disbursing
authorities were advised to make payment of revised pension accordingly without
waiting for the revised pension payment authority. A Committee under the
chairmanship of Secretary, Department of Pension & Pensioners’ Welfare was
constituted to examine the feasibility of Formulation (i). The Committee
observed that Formulation (i) as recommended by the 7th CPC might be difficult
to implement in a large number of cases and this method may also cause
anomalies.
In implementation of the
recommendations of the aforesaid Committee, orders have been issued vide
Department of Pension & Pensioners’ Welfare O.M. No. 38/37/16-P&PW(A)
dated 12.05.2017. It has been provided that the revised pension/family pension
w.e.f. 01.01.2016 in respect of all Central civil pensioners/family pensioners
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 by notional pay fixation under each
intervening Pay Commission based on the Formula for revision of pay. 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 w.e.f. 1.1.2016. Higher of the
two Formulations i.e. the pension/family pension already revised in accordance
with this Department’s OM dated 04.08.2016 or the revised pension/family
pension as worked out by notional pay fixation method, shall be the revised
pension/family pension w.e.f. 01.01.2016.
There were around 55.51 lakh
pensioners/family pensioners (including defence pensioners/family pensioners)
as on 31.03.2016. All Pension Sanctioning Authorities have been advised to
accord top priority to the work of revision of pension and issue revised
Pension Payment Authority in implementation of the above orders expeditiously.
There is no proposal for creation of
any other organisation for pension related issues.
This was stated by the Minister of
State for Personnel, Public Grievances and Pensions and Minister of State for Prime
Minister’s Office, Dr Jitendra Singh in a written reply to question by Adv.
Narendra Keshav Sawaikar and Shri P. Nagarajan in the Lok Sabha today.
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