(TO BE PUBLISHED IN THE GAZETTE OF (EXTRAORDINARY), PART SECTION III)

GOVERNMENT OF INDIA
MINISTRY OF DEFENCE
DEPARTMENT OF EX-SERVICEMEN WELFARE

RESOLUTION

New Delhi, the
30th September, 2016

The Terms of Reference of the Seventh Central Pay Commission as contained in Ministry of Finance (Department or Expenditure) Resolution (A), dated 28.2.2014, as amended vide Resolution, dated 8.9.2015, inter alia , included the following:-

To examine. review, evolve, and recommend changes that are desirable and feasible regarding the principles that should govern emoluments structure, concessions and facilities/benefits, in cash or kind well the retirement benefits of the personnel belonging to the Defence Forces, having regard to the historical and traditional parities, with due emphasis on the aspects unique to these personnel.

2. The Commission submitted its report to the Government on 19th November, 2015. Government has considered the recommendations of the Commission on pensionary benefits to the personnel belonging to the Defence Force contained in Chapter 10.2 of the Report of the Commission and have decided that the recommendations shall broadly accepted subject to certain modifications.

3. Detailed recommendations the Commission relating to pensionary benefits and decisions taken thereon by the Government are listed in the statement annexed to this Resolution.

4. The revised provisions regarding pensionary benefits will be effective from 01.01.2016.

sd/-
(K. Damayanthi)
Joint Secretary 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 contained in Chapter 10.2 of the Report and the decisions of Government thereon.

Click to read the resolution
Authority: http://www.desw.gov.in/

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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 11 Recommendation:

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 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)

Decision of the Government Of India

Both the options recommended by the 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 .

BHARAT Pensioners SAMAJ Remarks:

Recommendation is feasible & can be easily implemented:

1.Level 6 to 16 at  index 1 can be implemented w/o any difficulty as only revised PPO after 6^th CPC  is required.

Lacs of 6^th CPC modified parity beneficiaries will get benefited.

Example

PB 3 15600-39100  GP 6600 minimum pension= 12600 as per 6^th CPC modified parity modified multiplied by 2.57 i.e. option II will give revised pension =Rs32382/- But as per option I minimum level index 1 considering that Nil increment was drawn in the retiring scale minimum pension comes to 67700/2=Rs 33850/ i.e. Rs 1468/PM more than what he/she will get by multiplying basic pension as on 1.1.16 by 2.57

2. Service record is a permanent one and if it to be destroyed, proper permission from the

Competent Authority is to be obtained. In any case, service record can always be reconstructed

taking the details from various sources available in the department and the material collected from the Pensioner. This has been done in the past while implementing parity enunciated by fifth CPC and even while implementing modified parity of 6th CPC. In this regard attention is also drawn to recent CAT Bombay Nagpur Bench judgement dated 09.03.2015 in case of Smt. Saija v.General Manager, Central Railway O.A.No. 2131 of 2011(CAT Bombay Bench at Nagpur)

3 Rejection of the above recommendation on the ground of feasibility will not only cause wide spread discontent against the Govt but also lead to spate of Court cases.

4.Let all pre 2016 pensioners individually / collectively, Pensioners Federations and Association send representation to the Secy. ARPG/Chairman & to other members of the committee constituted to study feasibility.

S.C.Maheshwari

Secy Genl. Bharat Pensioners Samaj

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