As per the Gazette Notification issued by the Department of Pension & Pensioners Welfare on 12.5.2017, the revision of Pension Calculation for Pre-2016 Pensioners are given below with some illustrations. We provided simple steps in the tables with details of calculation of pension.

Note: 4th CPC to 5th CPC Calculation detail given below:

Basic Pay  as 1.1.96 : 1210
DA as on 1.1.96 : 1791 (148%)
First I.R.100: 100
Second IR 10% of BP subject to Min 100: 121
Pay DA and IR on 1.1.96: 3222
40% of BP: 484

Total: 3706
Next Stage in New Scale: 3710
New Pay on 1.1.96: 3710

Authority: As per Govt Notification on 12.5.2017

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What the above decision means for pre-2016 retirees?

Modification made appears fixing the pay of pre 2016 retirees notionally in revised pay matrix and then fixing pension at 50% of pay. If the pension so fixed is more than the pension fixed with fitment formula of 2.57 then pension will be revised otherwise no change. It is presumed that option will be given to pensioners. For arriving at pay in revised matrix of 7 CPC for those who retired prior to 1-1-1996 notionally there pay will be fixed under V CPC scales and VI CPC Pay structure. Similarly for those who retired prior to 2006 it will be notionally fixed in VI CPC Pay structure and then in 7 CPC matrix. The pay for this purpose is pay last drawn as recorded in their PPO. For the information of readers fixation formula under V CPC, VI CPC and VII CPC rules is given below:

V CPC:

Pay in the revised scales to be fixed at the stage next above the total even if there is stage equal to the total.

Rates of DA as on 1-1-1996

VI CPC

VII CPC

Illustration:

‘X retired on 31-1-1992 and pay was Rs. 2900 in the scale 1640-2900

1. His notional pay under 5 CPC scale of 6500-10600 is Rs.8900;

2. His notional pay under 6 CPC (PB2 +GP 4200) is Rs.20760;

3. His notional pay under 7 CPC (Level 6) is Rs.53600;

4. Pension fixed on 1-1-2016 with a fitment formula of 2.57 is Rs.25847;

5. Pension as per cabinet decision 50% of notional pay as per 7 CPC is Rs 26800.

Note: The above example is only an illustration.
The pension fixation may vary from case to case. Final calculation has to be made as per the Government orders.

Source: http://karnatakacoc.blogspot.in/

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National Council (Staff Side)
Joint Consultative Machinery For Central Government Employees
13-C, Ferozshah Road, New Delhi

No. NC/JCM/20 16

Dated: October 6, 2016

Dear Comrades!
Sub: Brief of the meeting held under the Chairmanship of Secretary (Pension), Government of India on 06.10.2016, to discuss 7th CPC recommendation for revision of pension of pre-2016 pensioners

In the meeting, referred to above, the Official Side expressed doubt to have details of service particulars, i.e. date of promotion and subsequent increment etc., specially pre- 01.01.2006 retirees. As such, it may not be feasible to fix-up pension, taking into account of increment received in the post from which one has retired from service.

As per opinion of the Secretary (Pension), “if recommendation No.1 is accepted, Service Record of certain persons may not be located. This will lead to number of litigations. However, we have produced certain pension dockets wherein all these things are available (where calculation of Qualifying Service was undertaken) and such option should be left with individual pensioner as per ones advantage. The Official Side lastly suggested that, parity in pension, as was granted after the recommendation of V CPC, w.e.f. 01.01.1996, may be adopted for determining the method (notional) of all pre-01.01.2016 pensioners.

Next meeting in this regard will be held at 10:00 hrs. on 13th October, 2016. Further, the matter of National Pension System (NPS) will be referred to a separate committee. We have impressed upon the Secretary (Pension) that, four months time is running out. As such, decision on revision of pension of pre-01.01.2016 retirees and the matter of the NPS should be decided without any further loss of time. Meeting on Allowances, which was slated to be held on 13th October, 2016, has been postponed to 25th October, 2016.

Comradely yours,

(Rakhal Das Gupta)
Member
NC/JCM(Staff Side)

Source: NC JCM Staff Side

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No.38/37/2016-P&PW(A)
Government of India
Ministry of Personnel, P.G.and Pensions
Department of Pension & Pensioners Welfare

3rd Floor, Lok Nayak Bhavan, Khan Market,
New Delhi, dated the 26th September, 2016

To,
The Secretary,
National Council (Staff Side)
JCM for Central Government Employees,
13C, Firozshah Road,
New Delhi – 110001

Subject: Meeting of the Committee set up to examine feasibility of implementation of recommendation of 7th CPC for revision of pension of pre-2016 pensioners – reg.

Sir/Madam,
I am directed to say that a Committee under the Chairmanship of Secretary (Pension) has been constituted to examine the feasibility of implementation of the first option recommended by the 7th CPC in para 10.1.67 (i) and para 10.2.87 applicable to the Central Civil pensioners and Defence pensioners respectively.

2. A meeting of the Committee with the JCM (Staff Side) for Central Government Employees is proposed to be held on 06.10.2016 at 3.00 p.m. at Conference Hall, 5th Floor, Sardar Patel Bhawan, New Delhi to discuss this issue. It is requested that the same of the member nominated to attend the said meeting may kindly be intimated.

3. This Department looks forward to your participation in the meeting.

sd/-
(Harjit Singh)
Director (Pension Policy)
Harjit.singh59@nic.in
s.chakrabarti75@gov.in

Source: Confederation

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“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”

Revision of Pension of pre 7tn 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 retired prior to 01.01.2016 (expected date of 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 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

Authority: http://www.pensionersportal.gov.in/

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RAGHUNATHAN
Retired Central Govt Officer

FIXATION OF REVISED PENSION as per Para 10.1.67 , Sub para (i) of 7th CPC Report : Pre-2016 RETIREES
Shall First be fixed in the Pay Matrix on the basis of 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 th.e number of Increments he/she had earned in that Level while in Service, at the rate of 3 %. Fifty percent of the Total Amount so arrived at shall be the REVISED PENSION.

To arrive at the Notional Pay, the Number of Increments earned by the Retiree in the PAY SCALE AT THE TIME OF HIS RETIREMENT is to be DETERMINED based on the LAST BASIC PAY drawn in this PAY SCALE.

Hence, the Number of STAGES in the PAY SCALE at the time of Retirement from the STARTING PAY of the Pay Scale UPTO the .LAST BASIC PAY drawn DETERMINES the Number of Increments Earned (GAINED) by the Retiree.

Illustration on Fixation of Pension in Case 2 of Para 10.1.71 is RELEVANT.

In the above Illustration, it is mentioned that Pensioner retired at LAST PAY drawn of Rs.4000/- having drawn 9 Increments in the RETIRING PAY SCALE of Rs.3000-100-3500-125-4500. The Number of STAGES in this PAY SCALE from the STARTING PAY ( Rs.3000/-) UPTO the LAST BASIC PAY (Rs..4000/-) drawn is obviously 9 (NINE) which is Indicative of the Number of Increments Earned (GAINED) by the Retiree.

In View of the above Explanation, THE NUMBER OF STAGES IN THE RETIRING PAY SCALE FROM THE STARTING PAY OF THE PAY SCALE
UPTO THE LAST PAY DRAWN SHOULD BE TREATED AS THE NUMBER OF INCREMENTS EARNED (GAINED) BY THE RETIREE in the Retiring Pay Scale..This is for the Purpose of Fixation of Pension as per the Formulation shown in Para 10.1.67, Sub Para (i) of the 7th CPC Report.

Otherwise, Junior Pensioners will get MORE REVISED PENSION THAN SENIOR PENSIONERS resulting in Disparity and Injustice.

This may please given wide Circulation and brought to the Notice of Implementation Committee. I am THANKFUL AND GRATEFUL to You Sirs,
for Your Needful action.

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One of our reader Mr.GS Joahi writes to us regarding the pension calculation recommended by the 7th Pay Commission with an illustration as follows…

The commission recommends the following pension formulations for all pensioners who retired prior 01.01.16 :- First – All the personnel who retired prior 01.01.16 shall be fixed at pay matrix being recommended by the 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. The amount shall be raised to arrive at the notional pay of the retiree by adding number of increments he/she had earned at that level while in service at the rate of three percent. Fifty percent of total amount so arrived at shall be the revised pension.

“This is totally injustice because the length of service which individual served in his previous levels are not considered. For example X&Y persons completed same length of service and retired in the year of 2000. The person of X retired from 4600 grade pay (level 7) where he earned 12 increments from his last level. The person Y promoted frequently and his last promotion got just before one year of his retirement and he retired from 5400 grade pay (at level 10) where he earned only one increment at this level. As per the VI pay commission the pension of X is fixed at Rs.8250/- and the pension of Y is fixed at Rs. 10500/-.”

On the basis of VII pay commission recommendations the pension of both person are calculated as follows :-

The pension of X Person
Formula No. 1
6th pay commission basic pension – Rs.8250/-
Initial basic pension fixed using a multiple of 2.57 – Rs.21203/-

Formula No. 2
Retired at the minimum of the corresponding level in the matrix – Rs. 44900/-Individual earned 12 increments at that level while in service – Rs.64100/-
Revised Basic pension – Rs.32050/-

The pension of Y Person
Formula No. 1
6th pay commission basic pension – Rs.10500/-
Initial basic pension fixed using a multiple of 2.57 – Rs.26985 /-

Formula No. 2
Retired at the minimum of the corresponding level in the matrix – Rs. 56100/-
Individual earned 01 increment at that level while in service – Rs 57800/-
Revised Basic pension – Rs.28900/-

On the above example OROP for the pensioners can not be justified without considering the service render at his previous levels during his service. There are a lot of cases where individual promoted at higher ranks at the time of retirement where they served only for one, two or three years of service. In the above case the person who was not promoted and served more service at lower level are more beneficial than the person who are promoted and retired from higher level.

Even the pension of the person retired from higher level can not be cross the pension of person who’s pension will be fixed by OROP, if higher level retiree initial basic pension fixed using a multiple of 2.57

Source: 7thpaycommissionnews.in

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7th CPC Pension Calculation : Fixation for Pre-2016 Pensioners

Source: 7thpaycommissionnews.in

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