The 7th Central Pay Commission had recommended two formulations for revision of pension of employees who retired before 01.01.2016 and the employees were given option to choose whichever

formulation was beneficial. As per the first formulation, the Commission recommended for revision of pension based on notional pay arrived at by adding the number of increments an employee had earned in the appropriate level while in service.

This formulation was later on examined by a Committee under the Chairmanship of Secretary, Department of Pension and Pensioners’ Welfare. The Committee recommended that instead of counting of increments earned in the retiring scale and applying directly to the 7th Pay Commission Pay Matrix, a more scientific and rational method would be to refix pay in each successive Pay Commission as per the formula for revision of pay right up to the 7th Pay Commission.

This method of fixing notional pay and pension would benefit a larger number of pensioners as compared to the increment method which benefits only a select segment of pensioners who served for a longer period in the retiring scale without being promoted to a higher grade. This has been accepted by the Government and appropriate orders have been issued.

Source: Lok Sabha

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R.B.E. No: 171/2017

GOVERNMENT OF INDIA (BHARAT SARKAR)
MINISTRY OF RAILWAYS (RAIL MANTRALAYA)
(RAILWAY BOARD)

No.2016/F(E)III/1(1)/8

New Delhi, Dated: 20.11.2017

The GM/Principal Financial Advisers,
All Zonal Railways/Production Units,
(As per mailing list)

Sub: Implementation of Government’s decision on the recommendations of the 7th CPC – Fixation of pension of medical officers retired during 01.01.2016 to 30.06.2017.

A copy of Department of Pension and Pensioners’ welfare (DOP&PW)’s O.M. No. 38/37/16-P&PW(A)(iv) dated 8th November, 2017 on the above subject is enclosed for information and compliance. These instructions shall apply mutatis mutandis on the  Railways also. The Rule 33 of the Central Civil Services (Pension) Rules, 1972 corresponds to Rule 49 of the Railway Services (Pension) Rules, 1993. The Ministry of Finance, Department of Expenditure’s O.M. No. 12-2/2016-EIII. A dated 7th July, 2017 reffered to in the enclosed O.M. dated 08.11.2017, has been adopted on Railways vide this office’s letter No. PC-V/2017/A/NPA/1 dated 4th August,2017.

(G.Priya Sudarsani)
Joint Director, Finance (Estt),
Railway Board

Copy to Deputy Comptroller and Auditor General of India (Railways), Room No.222, Rail Bhawan, New Delhi (20 spares).

Source: NFIR

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No.38/37/16-P&PW(A)(iv)
Ministry of Personnel, PG & Pensions
Department of Pension & Pensioners’ Welfare

3rd Floor, Lok Nayak Bhawan
Khan Market, New Delhi
Dated, the 8th November, 2017

OFFICE MEMORANDUM

Sub: Implementation of Government’s decision on the recommendations of the Seventh Central Pay Commission – Fixation of Pension of Medical Officers retired during 1.1.2016 to 30.6.2017

In accordance with Rule 33 of Central Civil Services (Pension) Rules, 1972 the emoluments reckoned for calculation of pension include Non-practicing Allowance (NPA) granted to medical officers in lieu of private practice.

2. In the case of medical officers who have retired from 1.1.2016 to 30.6.2017, the pension is based on emoluments which included NPA @ 25% of the pre-revised pay. Orders have been issued by Ministry of Finance (Department of Expenditure) vide OM No.12-2/2016-EIII.A dated 7th July, 2017 for grant of NPA to serving medical officers @ 20% of basic pay w.e.f. 1.7.2017. Accordingly, the medical officers retired/retiring on or after 1.7.2017 are entitled to pension based on emoluments which include NPA at the rate of 20% of the revised basic pay.

3. The matter regarding revision of pension of the medical officers who retired during 1.1.2016 to 30.6.2017 based on revised rate of NPA has been examined by the Government. It has been decided that the pension/family pension in respect of medical officers who retired/died during 1.1.2016 to 30.6.2017 shall be further revised w.e.f. 1.7.2017 by adding NPA @ 20% to the basic pay on the date of retirement.

4. The fixation of pension/family pension of retired medical officers in the above manner will be further subject to the condition that emoluments (i.e. Basic Pay + NPA) to be reckoned for pension do not exceed Rs.2,37,500/- (Rupees two lakh thirty seven thousand and five hundred only).

5. This issues with the approval of Ministry of Finance, Department of Expenditure vide their I.D. No. 1(18)/E-V/2017 dated 23rd October, 2017.

6. Hindi version will follow.

sd/-
(Harjit Singh)
Director

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

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