No. 17(01)/2017(01)/D(Pension/Policy)

Government of India
Ministry of Defence
Department of Ex-Servicemen Welfare
New Delhi, Dated 4th September, 2017

To

The Chief of the Army Staff
The Chief of the Naval Staff
The Chief of the Air Staff

Subject : Implementation of Government’s decision on the recommendations of the 7th Central Pay Commission (CPC) – Revision of pension of pro-1.1.2016 Defence Forces pensioners/ family pensioners etc.

Sir,

The undersigned is directed to refer to this Ministry’s letter No. 17(01)/2016 D(Pen/Pol) dated 29th October 2016 for revision of pension of pre-2016 Defence Forces pensioners/ family pensioners in implementation of the Government decisions on the recommendations of the 7th CPC. As per para 9 of this Ministry’s said order dated 29th October 2016 the revision of disability element of disability pension was held in abeyance pending decision of National Anomaly Committee to whom matter was referred by MoD to decide methodology for calculation of disability element of disability pension under 7th CPC. The National Anomaly Committee has recommended that parity with Civilians for grant of Disability element which was granted to Defence Forces under 6th CPC, shall be maintained.

2. The recommendations of the National Anomaly Committee have been considered by the Government. In partial modification of Ministry’s order dated 29th October 2016, the President is now pleased to decide that Disability element of disability pension for Defence Forces Pensioners shall also be revised by multiplying the existing rate of disability element as had been drawn on 31.12.2015 by factor of 2.57 to arrive at revised rate of disability element as on 1.1.2016. The amount of revised disability element so arrived shall be round-ed off to next higher rupee.

3. Para 13 of this Ministry’s above quoted letter dated 29.10.2016 regarding “Ex-gratia awards to Cadets in cases of disablement” shall be replaced with the following:

13. EX-GRATIA AWARDS TO CADET (DIRECT) The ex-gratia award payable to Cadet (Direct)/ NoKs in cases of disablement / death shall be payable subject to the same conditions as hitherto in force in the event of invalidment on medical ground / death of a Cadet (Direct) due to causes attributable to or aggravated by military training

(i) Monthly Ex-gratia amount of Rs 9,000/- per month

(ii) In cases of disablement, Ex-gratia disability award @ Rs 16,200/- per month shall be payable in addition for 100% of disability during period of disablement subject to prorata reduction in case the degree of disablement is less than 100%. “No ex-gratia disability award shall be payable in cases where the degree of disablement is less than 20%.”

4. The dearness relief sanctioned by the Government from 1.1.2016 and thereafter, shall also be paid on rates of disability element and monthly ex-gratia award to Cadet(Direct), revised in accordance with the provision of this letter.

5. Vide para 10(ii) of MOD order dated 29.10.2016, it was ordered to pay the Constant Attendance Allowance(CAA) at the existing rate since matter regarding grant of Allowances was under examination by the Committee on Allowances (CoA). in this regard, Ministry of Finance vide Resolution dated 6th July 2017 (Appendix II item 37 has accepted the recommendation of 7th CPC to enhance the existing Constant Attendance Allowance @ 4500/ p.m. by 50%. DoP&PW vide O.M No. 1/4/2017-P&PW(F) dated 2.8.2017 has issued orders in this-regard for civilian pensioners. Accordingly, for Armed Forces personnel the Constant Attendant Allowance shall continue to be admissible under the condition as hitherto fore at the existing rate from 1.1.2016 to 30.06.2017. However, it shall now be admissible at the enhanced uniform rate of Rs. 6750/- per month, irrespective of the rank with effect from 1.7.2017.

6. With reference to the provisions contained in Para 5.4 of this Ministry’s letter dated 29th October, 2016, it is further clarified that the maximum ceiling shall be applicable only in the case of Service/Retiring Pension, Service element of Disability/ liberalized disability /War Injury Pension and Ordinary family Pension. The said ceiling is not applicable in the cases of Disability/ Liberalised Disability/ War injury element. Special Family/ Liberalized Family Pension etc. applicable under casualty pensionary awards.

7. The provisions of this Ministry’s letter dated 29th October 2016, which are not affected by the provisions of this letter, shall remain unchanged.

8. The provisions of this letter shall take effect from 1.1.2016

9. This issues with the concurrence of Finance Division of this Ministry their U.O. No. Part File (1) to (30)(01)/2016/Fin/Pen dated 14th August 2017.

10. Hindi version will follow.

Yours faithfully,

(Manoj Sinha)
Under Secretary to the Government of India

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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:

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

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