7th CPC Charge Allowance Notional pay fixation and revision of Pension of Pre-2016
7th CPC
Charge Allowance may have been paid w.e.f. 01.01.2016 to 30.06.2017 at old rates which was admissible before 2016, the same may be reckoned for calculation of retirement benefits of employees who retired between the periods from 01.01.2016 to 30.06.2017
PC-VII No.148/2020
RBE No.14 /2020
GOVERNMENT OF INDIA (BHARAT SARKAR)
MINISTRY OF RAILWAYS (RAIL MANTRALAYA)
(RAILWAY BOARD)
No. D-43/15/2019-F(E)III
New Delhi, dated: 30.01.2020.
The General Managers / Principal Financial Advisors,
ll Zonal Railways / Production Units.
Sub : Reckoning of Charge Allowance for the purpose of revision of Pension of Pre-2016 retirees in terms of 7th CPC recommendations – reg.
Consequent upon the recommendations of 7th CPC, instructions were issued vide Board’s letters No.2016/F(E)III/1(1)/7 dated 10.08.2016 and 22.05.2017, regarding revision of pension / family pension of pre-2016 pensioners / family pensioners. A number of references have been received in this office for reckoning of Charge Allowance for the purpose of notional fixation of pay and accordingly revision of pension w.e.f. 01.01.2016.
2. The true nature of charge allowance was earlier considered by the Board and it was decided that the charge allowance, which is actually in the nature of pay restricted under FR-35. should be reckoned as ‘Pay’ as defined in Rule 1303(FR-9)(21) (a)(i) R-II/6th Edition and as such, it would count as pay for the purposes of pension. gratuity etc. as well as for leave encashment. Accordingly, instructions were issued vide letter No. F(E)III/94/PN1/26 dated 23.06.1995.
3. The issue has again been examined in Board keeping in view the earlier decision on charge allowance cited in para 2 above and it has been decided as follows:-
- Since. Board had already decided to treat the charge allowance as pay restricted under FR-35 and to reckon it as emoluments for pensionary benefits vide letter dated 23.06.1995, the charge allowance may be taken into account for notional fixation of pay for the purpose of revision of pension / family pension of pre-2016 retirees w.e.f. 01.01.2016 in terms of first formulation as conveyed by Board’s letter No. 2016/F(E)III /1(1)/7 dated 22.05.2017.
- Pay fixed in terms of Board’s letter No. PC-VII/2017/ 1/7/5/8 dated 08.08.2019 w.e f. 01.07.2017 may also be treated as emoluments in terms of Rule 49 of the Railway Services (Pension) Rules, 1993 for the purpose of fixation of pension.
- Since, Charge Allowance may have been paid w.e.f. 01.01.2016 to 30.06.2017 at old rates which was admissible before 2016, the same may be reckoned for calculation of retirement benefits of employees who retired between the periods from 01.01.2016 to 30.06.2017.
4. Please acknowledge receipt.
(G. Priya Sudarsani)
Director, Finance (Estt.),
Railway Board.
K SRIRAMA MURTY says
I am K SRIRAMA MURTY Retd DY FA & CAO EAST COAST RAILWAY BHUBANESWAR. The Charge Allowance used to revise after implementation of every PAY COMMISSION. For example the amount of Charge Allowance was Rs 750 after implementation of the 5th PAY COMMISSION which was revised to Rs 1500 after implementation of the 6th PAY COMMISSION. Hence the amount of Charge Allowance needs to be revised to a minimum of Rs 3375 (Rs 1500+125% thereon prevailing as on 01/01/2016). Without revision of Charge Allowance how pension of officers who retired between 01/01/2016and 30/06/2017 can be revised correctly? As per clarification given by Railway Board the old Charge Allowance of Rs 1500 is to be reckoned for all retirement benefits including revision of Charge Allowance. This will cause incorrect revision of Pension and a loss to the Railway Officers who retired between 01/01/2016 and 30/06/2017.. Hence Charge Allowance needs to be revised to Rs 3375 or to Rs 3340(rounding off) to do justice to the Railway Officers who retired between 01/01/2016 and 30/06/2017. Railway Board is therefore requested to consider the issue sympathetically and to issue clear cut guidelines to all concerned so that retired railway Officers (Senior Citizens) can get their pension revised correctly.