NCCPA CIRCULAR ON PENSION FIXATION
NCCPA LATEST CIRCULAR ON PENSION FIXATION
Dear Comrades! The latest NCCPA Circular along with the 12th May Orders of the Pension Ministry and the comments of NCCPA on the issue of Option 1 and 3 are placed hereunder:
NATIONAL CO-ORDINATION COMMITTEE OF PENSIONERS ASSOCIATIONS
Website: nccpahq.blogspot.in.
E mail: nccpahq@gmail.com.
13.c Feroze Shah Road,m
New Delhi. 110 001
20th May, 2017
Dear comrades.
We had placed the cabinet decisions and the consequent Government of India OM dated 12th May, 2017 on our website. We had informed you that we would write to you again after going through the various aspects and effects of the order. The present decision of the Government, on which we had indicated to you in our earlier communications is in replacement of the option No. 1. Offered by the 7th CPC as a means of pension revision which would have benefited quite a large number of pensioners, especially of those pensioners who retired from Group B,C an d D cadres. The Pension department right from day one had taken the stand that the said recommendation was not feasible to be implemented for want of relevant records, which was blatantly incorrect evidenced even from the data the Pension department itself placed at the meeting with the staff side JCM. The present decision of the Government is to give effect to the recommendation made by the 5th CPC,. We are appending to this letter, the recommendation made by the 5th CPC, the orders issued by the Government in 1997, 2008 and in 2016 in respect of pay revision. For all those who retired prior to 1986, the notional pay might have already been computed as per the orders issued then. Every pensioner is now entitled to have his pension revised by determining the notional pay had he continued in service upto 1.1.2016, If one has retired from service sayprior to 1996, his pay as shown in the PPO will be recomputed first on the basis of the pay fixation formula contained in the orders of 1997, then again in 2008 and lastly as indicated in the 2016 order. Com.Radhakrishna, President of the State COC Karnataka, Bangalore has evolved a formula for the easy facilitation of computation We have also appended the same for the benefit of our members. The OM of the Government ,copy of which is already on our website, along with its annexure must be the basis and the concerned pensioner must approach the office from which he retired for refixation of his pension.
It must be stated without hesitation that the report of the Secretary Pension to the Government on the question of feasibility of the recommendation of the 7th CPC (Option No. 1) was the product of a partisan approach. It is surprising that the Pension department felt it appopreate to resurrect the recommendation of the 5th CPC, which they had rejected time and again, when the issue was taken up by the Pensioners Associations and the Staff Side off the JCM on behalf of the working employees on various earlier occasions. It is not difficult to discern the fact that the rejection of option No.1was on the consideration that the said recommendation of the 7th CPC (Option No.1) would not benefit majority of the personnel in the All India and organised Group A services. Though made on different consideration, the acceptance of the recommendation of the 5th CPC , a demand we had been reiterating for long, is a positive development . The staff side during the three rounds of discussion had suggested that to the committee of the 5th CPC recommendation must be considered as a third option to bring about the parity between the past and present pensioners. That would have left everybody happy including those Group BCD employees who retired in the earlier years when there had been no time bound promotion or normal were f and far between in certain Departments for the sheer. The present decision of the Government at the instance of the top echelons of the bureaucracy has not emanated from an objective view of the matter. We have, therefore, to continue with our effort in getting the Option No. 1 as a method of pension revision, for it is recommended by an expert body i.e. the 7th Central Pay Commission and the Government is not unpowered to rejct it on the ground that it was not fearble to implement it.
Read with the orders issued by the Government on 16th May, 2017,whereby they have revised the multiplication factor and pay matrix of level 13 (erstwhile Grade Pay of Rs. 8700) from 2.57 to 2.67 affording a benefit of Rs. 5000 at the initial level of the pay matrix to the director level officers, it becomes crystal clear as to how the Government is guided by the bureaucracy for their partisan benefit leaving out the most legitimate demands of the employees and pensioners. The demand for the revision of minimum wage and the consequent multiplication factor, which benefits all Civil Servants irrespective of the Cadre or despite the assurances held out on 30th June 2016. We are certain that our comrades will remember the most untenable stand of the Depam ent6 of Expenditure in the mtter of anomaly of pay fixation between the directly recruite4d and promoteee officials tghat arose while implementing trhe 6thCPC recommendations. Afrter a procrastinated discussion, the official side agreed to the suggestion for stepping up the pay of senior employees on par with the juniors . However, in the end, the said agreement was not honoured. It was said to be the huge financial implication that prevented the Government in acting upon the 5th CPC recommendation on Pension parity question and thus denied the benefit for scores of pensioners between 1996 to 2016. How that has now come to be financially viable proposition is better left to your imagination. Our pensioner comrades will also remember as to how the pension department denied even the modified parity recommended by the Pay Commission, which had to be fought out upto Supreme Court by the poor pensioners in the country. The NCCPA and its affiliated will ponder over these issues in the days to come and will chalk out ways and means to ensure that justice is rendered to all sections of the Pensioners in the days to come.
With greetings,
Yours fraternally,
K.K.N.Kutty
Secretary General.
5th CPC
Fixation of initial pay in the revised scale
(1)The initial pay of a Government servent who elects, or is deemed to have elected under sub-rule (3) of Rule 6 to be governed by the revised scale on and from the 1st day of January, 1996, shall unless in any case, the President by special order otherwise directs, be fixed separately in respect of his substantive pay in the permanent post on which he holds a lien or would have held a lien if it had not been suspended, and inrespect of his pay in the officiating post held by him, in the following manner, namely:-
In the case of all employees, -
An amount representing 40% of the basic pay in the existing scale shall be added to the “existing emoluments” of the employee;
After the existing emoluments have been so increased, the pay shall thereafter be fixed in the revised scale at the stage next above the amount thus computed:
Provided that –
Where in the fixation of pay, the pay of Government servants drawing pay at more than four consecutive stages in an existing scale gets bunched, that is to say, gets fixed in the revised scale at the same stage, the pay in the revised scale of such of these Government servants who are drawing pay beyond the first four consecutive stages in the existing scale shall be stepped up to the stage where such bunching occurs, as under, by the grant of increments(s) in the revised scale in the following manner, namely:-
For Government servants drawing pay from the 5th up to the 8th stage in the existing scale –by one increment;
For Government servants drawing pay from the 9th up to the 12th stage in the existing scale, if there is bunching beyond the 8th stage – by two increments;
If by steppin up of the pay as above, the pay of a Government servant gets fixed at a stage in the revised scale which is higher than the stage in the revised scale at which the pay of a Government servant who was drawing pay at the next higher stage or stages in the same existing scale is fixed, the pay of the latter shall also be stepped up only to the extent by which it falls short of that of the former.
Provided also that –
The fixation thus made shall ensure that every employee will get at least one increment in the revised scale of pay for every three increments (inclusive of srtagnation increment(s), if any) in the existing scale of pay.
EXPLANATION – For the purpose of this clause ‘’existing emoluments” shall include-
The basic pay in the existing scale;
Dearness allowance appropriate to the basic pay admissible at index average 1510(1960 = 100); and
The amounts of first and second instalments of interim relief admissible on the basic pay in the existing scale;
In the case of employees who are in receipt of special pay/allowance in addition to pay in the existing scale which has been recommended for replacement by a scale of pay without any special pay/allowance, pay shall be fixed in the revised scale in accordance with the provisions of Clause (A) above except that in such cases ‘’existing emoluments’’ shall include-
The basic pay in the existing scale;’
Existing amount of special pay/allowance;
Admissible dearness allowance at index average 1510(1960 = 100) under the relevant orders ; and
The amounts of first and second instalments of interim relief admissible on the basic pay in the existing scale and special pay under the relevant orders.
In the case of employees who are in receipt of special pay component with any other nomenclature in addition to pay in the existing scales, such as personal pay for promoting small family norms, special pay to Parliament Assistants, Central (Deputation on Tenure) Allowance etc., and in whose case the same has been replaced in the revised scale with corresponding allowance/pay at the same rate or at a different rate, the pay in the revised scale shall be fixed in accordance with the provisions of Clause (A) above. In such cases, the allowance at the new rate as recommended shall be drawn in addition to pay in the revised scale of pay.
In the case of medical officers who are in receipt of non-practising allowance, the pay in the revised scale shall be fixed in accordance with the provisions of Clause (A) above except that in such cases the term ‘’existing emolument’’- shall not include NPA and will comprise only the following :-
The basic pay in the existing scale;
Dearness allowance appropriate to the basic pay and non-practising allowance admissible at index average 1510 (1960 = 100) under the relevant orders
The amounts of first and second instalments of interim relief admissible on the basic pay in the existing scale and non-practising allowance under the relevant orders
And in such cases, non-practising allowance at the new rates shall be drawn in addition to the pay so fixed in the revised scale.
6th CPC
Fixation of initial pay in the revised pay structure:
(1) The initial pay of a Government servant who elects, or is deemed to have elected under sub-rule (3) of rule 6 to be governed by the revised pay structure on and from the 1st day of January, 2006, shall, unless in any case the President by special order otherwise directs, be fixed separately in respect of his substantive pay in the permanent post on which he holds a lien or would have held a lien if it had not been suspended, and in respect of his pay in the officiating post held by him, in the following manner, namely :-
(A) in the case of all employees:-
(i) the pay in the pay band/pay scale will be determined by multiplying the existing basic pay as on 1.1.2006 by a factor of 1.86 and rounding off the resultant figure to the next multiple of 10.
( ii) if the minimum of the revised pay band/ pay scale is more than the amount arrived at as per (i) above, the pay shall be fixed at the minimum of the revised pay band/pay scale;
Provided further that:-
Where, in the fixation of pay, the pay of Government servants drawing pay at two or more consecutive stages in an existing scale gets bunched, that is to say, gets fixed in the revised pay structure at the same stage in the pay band, then, for every two stages so bunched, benefit of one increment shall be given so as to avoid bunching of more than two stages in the revised running pay bands. For this purpose, the increment will be calculated on the pay in the pay band. Grade pay would not be taken into account for the purpose of granting increments to alleviate bunching.
In the case of pay scales in higher administrative grades (HAG) in the pay band PB4, benefit of increments due to bunching shall be given taking into account all the stages in different pay scales in this grade. In the case of HAG+ scales, benefit of one increment for every two stages in the pre revised scale will be granted in the revised pay scale.
By stepping up of the pay as above, the pay of a Government servant get fixed at a stage in the revised pay band/ pay scale ( where applicable.) which is higher than the stage in the revised pay band at which the pay of a Government servant who was drawing pay at the next higher stage or stages in the same existing scales is fixed. The pay of the latter shall also be stepped up only to th extent by which it falls short of that of the former.
The pay in the Pay band will be determined in the above manner. In addition to the pay in the pay band, Grade pay corresponding to the existing scale will be payable.
Note: Illustration 1. On the above is provided in the Explanatory memorandum to these rules.
In the case of employees who are in receipt of special pay/ allowance in addition to pay int he existing scale which has been recommended for replacement by a Pay band and Grade Pay without any special pay/allowance, pay shall be fixed in the revised pay structure in accordance with the provisions of clause (A) above
In the case of employees who are in receipt of special pay component with any other nomenclature in addition to pay in the existing scales, such as personal pay for promoting small family norms, special pay to Parliament Assistants, (Central deputation tenure) allowance, etc. and in whose case the same has been replaced in the revised pay structure with corresponding allowance/ pay at the same rate or at a different rate, the pay in the revised pay structure shall be fixed in accordance with the provisions of clause (A) above. In such cases, the allowance at the new rates as recommended shall be drawn in addition to pay in the revised pay structure from the date specified in the individual notification related to these allowances.
In the case of Medical officers, who are in receipt of Non practicing allowance, the pay in the revised pay structure shall be fixed in accordance with the provisions of Clause (A) above except that in such cases the pre revised dearness allowance appropriate to the non practicing allowance admissible at index average 536 (1982=100) shall be added while fixing the pay in the revised pay band and in such cases non practicing allowance at the new rates shall be drawn with effect from 1.1.2006 or at the date of option for revised pay structure in addition to the pay so fixed in the revised pay structure. Illustration 2 in this regard is at the explanatory memorandum to these rules..
7th CPC
Fixation of initial pay in the revised pay structure:
MINISTRY OF FINANCE
(Department of Expenditure)
NOTIFICATION
New Delhi, the 25th July, 2016
G.S.R. 721(E).—In exercise of the powers conferred by the proviso to article 309, and clause (5) of article
148 of the Constitution and after consultation with the Comptroller and Auditor General in relation to persons serving in the Indian Audit and Accounts Department, the President hereby makes the following rules, namely :-
1. Short title and commencement. –
(1) These rules may be called the Central Civil Services (Revised Pay) Rules, 2016.
(2) They shall be deemed to have come into force on the 1st day of January, 2016.
2. Categories of Government servants to whom the rules apply.-
(1) Save as otherwise provided by or under these rules, these rules shall apply to persons appointed to civil services and posts in connection with the affairs of the Union whose pay is debitable to the Civil Estimates as also to persons serving in the Indian Audit and Accounts Department.
(2) These rules shall not apply to -
(i) persons appointed to the Central Civil Services and posts in Group ‘A’, ’B’ and ’C’, under the administrative control of the Administrator of the Union Territory of Chandigarh;
(ii) persons locally recruited for services in Diplomatic, Consular or other Indian
establishments in foreign countries;
(iii) persons not in whole-time employment;
(iv) persons paid out of contingencies;
(v) persons paid otherwise than on a monthly basis including those paid only on a piece rate basis;
(vi) persons employed on contract except where the contract provides otherwise;
(vii) persons re-employed in Government service after retirement;
(viii) any other class or category of persons whom the President may, by order, specifically exclude from the operation of all or any of the provisions contained in these rules.
3. Definitions.—In these rules, unless the context otherwise requires,-
(i) “existing basic pay” means pay drawn in the prescribed existing Pay Band and Grade Pay or Pay in the existing scale;
(ii) “existing Pay Band and Grade Pay” in relation to a Government servant means the Pay Band and the
Grade Pay applicable to the post held by the Government servant as on the date immediately before
the notification of these rules whether in a substantive capacity or in officiating capacity;
(iii) “existing scale” in relation to a Government servant means the pay scale applicable to the post held by the Government servant as on the date immediately before the notification of these rules in the Higher Administrative Grade, Higher Administrative Grade+, Apex scale and that applicable to Cabinet Secretary whether in a substantive or officiating capacity;
(iv) “existing pay structure ” in relation to a Government servant means the present system of Pay Band and Grade Pay or the Pay Scale applicable to the post held by the Government servant as on the date immediately before the coming into force of these rules whether in a substantive or officiating capacity.
Explanation.- The expressions “existing basic pay”, “existing Pay Band and Grade Pay” and “existing scale”, in respect of a Government servant who on the 1st day of January, 2016 was on deputation out of India or on leave or on foreign service, or who would have on that date officiated in one or more lower posts but for his officiating in a higher post, shall mean such basic pay, Pay Band and Grade Pay or scale in relation to the post which he would have held but for his being on deputation out of India or on leave or on foreign service or officiating in higher post, as the case may be;
(v) “existing emoluments” mean the sum of (i) existing basic pay and (ii) existing dearness allowance
at index average as on 1st day of January, 2006;
(vi) “Pay Matrix” means Matrix specified in Part A of the Schedule, with Levels of pay arranged in
vertical cells as assigned to corresponding existing Pay Band and Grade Pay or scale;
(vii) “Level” in the Pay Matrix shall mean the Level corresponding to the existing Pay Band and Grade
Pay or scale specified in Part A of the Schedule;
(viii) “pay in the Level” means pay drawn in the appropriate Cell of the Level as specified in Part A of the Schedule;
(ix) “revised pay structure” in relation to a post means the Pay Matrix and the Levels specified therein corresponding to the existing Pay Band and Grade Pay or scale of the post unless a different revised Level is notified separately for that post;
(x) “basic pay” in the revised pay structure means the pay drawn in the prescribed Level in the Pay
Matrix;
(xi) “revised emoluments” means the pay in the Level of a Government servant in the revised pay
structure; and
(xii) “Schedule” means a schedule appended to these rules.
4. Level of posts.– The Level of posts shall be determined in accordance with the various Levels as assigned to
the corresponding existing Pay Band and Grade Pay or scale as specified in the Pay Matrix.
5. Drawal of pay in the revised pay structure.– Save as otherwise provided in these rules, a Government
servant shall draw pay in the Level in the revised pay structure applicable to the post to which he is appointed:
Provided that a Government servant may elect to continue to draw pay in the existing pay structure until the date on which he earns his next or any subsequent increment in the existing pay structure or until he vacates his post or ceases to draw pay in the existing pay structure: Provided further that in cases where a Government servant has been placed in a higher grade pay or scale between 1st day of January, 2016 and the date of notification of these rules on account of promotion or upgradation,
the Government servant may elect to switch over to the revised pay structure from the date of such promotion or upgradation, as the case may be.
Explanation 1.- The option to retain the existing pay structure under the provisos to this rule shall be
admissible only in respect of one existing Pay Band and Grade Pay or scale.
Explanation 2.- The aforesaid option shall not be admissible to any person appointed to a post for the first time in Government service or by transfer from another post on or after the 1st day of January, 2016, and he shall be allowed pay only in the revised pay structure.
Explanation 3.- Where a Government servant exercises the option under the provisos to this rule to retain the existing pay structure of a post held by him in an officiating capacity on a regular basis
for the purpose of regulation of pay in that pay structure under Fundamental Rule 22, or under any other rule or order applicable to that post, his substantive pay shall be substantive pay which he would have drawn had he retained the existing pay structure in respect of the permanent post on which he holds a lien or would have held a lien had his lien not been suspended or the pay of the officiating post which has acquired the character of substantive pay in accordance with any order for the time being in force, whichever is higher.
6. Exercise of option.-
(1) The option under the provisos to rule 5 shall be exercised in writing in the form appended to these rules so as to reach the authority mentioned in sub-rule (2) within three months of the date of notification of these rules or where any revision in the existing pay structure is made by any order subsequent to the date of notification of these rules, within three months of the date of such order: Provided that-
(i) in the case of a Government servant who is, on the date of such notification or, as the case may be, date of such order, out of India on leave or deputation or foreign service or active service, the said option shall be exercised in writing so as to reach the said authority within three months of the date of his taking charge of his post in India; and
(ii) where a Government servant is under suspension on the 1st day of January, 2016, the option may be exercised within three months of the date of his return to his duty if that date is later than the date prescribed in this sub-rule.
(2) The option shall be intimated by the Government servant to the Head of his Office along with an undertaking, in the form appended to these rules.
(3) If the intimation regarding option is not received by the authority within the time specified in sub rule
(1), the Government servant shall be deemed to have elected to be governed by the revised pay structure with effect from the 1st day of January, 2016.
(4) The option once exercised shall be final.
Note 1: Persons whose services were terminated on or after 1st January, 2016 and who could not exercise the option within the prescribed time limit, on account of discharge on the expiry of the sanctioned
posts, resignation, dismissal or discharge on disciplinary grounds, shall be entitled to exercise
option under sub-rule (1).
Note 2: Persons who have died on or after the 1st day of January, 2016 and could not exercise the option within prescribed time limit are deemed to have opted for the revised pay structure on and from the 1st day of January, 2016 or such later date as is most beneficial to their dependents if the revised pay structure is more favorable and in such cases, necessary action for payment of arrears shall be taken
by the Head of Office.
Note 3: Persons who were on earned leave or any other leave on 1st day of January, 2016 which entitled
them to leave salary shall be entitled to exercise option under sub-rule (1).
7. Fixation of pay in the revised pay structure.-
(1) The pay of a Government servant who elects, or is deemed to have elected under rule 6 to be
governed by the revised pay structure on and from the 1st day of January, 2016, shall, unless in anycase the President by special order otherwise directs, be fixed separately in respect of his substantive pay in the permanent post on which he holds a lien or would have held a lien if such lien had not been suspended, and in respect of his pay in the officiating post held by him, in the following manner, namely:-
(A) in the case of all employees-
(i) the pay in the applicable Level in the Pay Matrix shall be the pay obtained by multiplying the existing basic pay by a factor of 2.57, rounded off to the nearest rupee and the figure so arrived at will be located in that Level in the Pay Matrix and if such an identical figure corresponds to any Cell in the applicable Level of the Pay Matrix, the same shall be the pay, and if no such Cell is available in the applicable Level, the pay shall be fixed at the immediate next higher Cell in that applicable Level of the Pay Matrix.
Illustration:
1
|
Existing Pay Band: PB-1
|
Pay
Band
|
5200-20200
| ||||
2
|
Existing Grade Pay: 2400
|
Grade
|
1800
|
1900
|
2000
|
2400
|
2800
|
3
|
Existing Pay in Pay Band: 10160
| ||||||
4
|
Existing Basic Pay: 12560 (10160 + 2400)
|
Levels
|
1
|
2
|
3
|
4
|
5
|
5
|
Pay after multiplication by a fitment factor 2.57: 12560 x 2.57=32279.20
(rounded off to 32279)
|
1
|
18000
|
19900
|
21700
|
25500
|
29200
|
2
|
18500
|
20500
|
22400
|
26300
|
30100
| ||
3
|
19100
|
21100
|
23100
|
27100
|
31000
| ||
6
|
Level corresponding to GP 2400: Level 4
|
4
|
19700
|
21700
|
23800
|
27900
|
31900
|
7
|
Revised Pay in the Pay Matrix (either equal to or next higher to 32279 in level 4): 32300
|
5
|
20300
|
22400
|
24500
|
28700
|
32900
|
6
|
20900
|
23100
|
25200
|
29600
|
33900
| ||
7
|
21500
|
23800
|
26000
|
30500
|
34900
| ||
8
|
22100
|
24500
|
26800
|
31400
|
35900
| ||
9
|
22800
|
25200
|
27600
|
32300
|
37000
| ||
10
|
23500
|
26000
|
28400
|
33300
|
38100
| ||
11
|
24200
|
26800
|
29300
|
34300
|
39200
| ||
(ii) if the minimum pay or the first Cell in the applicable Level is more than the amount arrived at as per sub-clause (i) above, the pay shall be fixed at minimum pay or the first Cell of that applicable Level.
(B) In the case of medical officers in respect of whom Non Practicing Allowance (NPA) is admissible, the pay in the revised pay structure shall be fixed in the following manner :
(i) the existing basic pay shall be multiplied by a factor of 2.57 and the figure so arrived at shall be
added to by an amount equivalent to Dearness Allowance on the pre-revised Non-Practicing Allowance admissible as on 1st day of January, 2006. The figure so arrived at will be located in that Level in the Pay Matrix and if such an identical figure corresponds to any Cell in the applicable Level of the Pay Matrix, the same shall be the pay, and if no such Cell is available in the applicable Level, the pay shall be fixed at the immediate next higher Cell in that applicable Level of the Pay Matrix.
(ii) The pay so fixed under sub-clause (i) shall be added by the pre-revised Non Practicing Allowance admissible on the existing basic pay until further decision on the revised rates of Non Practicing Allowance.
O0o
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
12th May 2017 GOVERNMENT ORDER
• Department of Pension & Pensioners Welfare
• No.38/37/2016-P&PW(A) Dated 12.05.2017.
• Subject: 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 O.M. that the revised pension/family pension w.e.f. 1.1.2016 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. While 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 w.e.f. 1.1.2016 as per the first Formulation. 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 i.e. 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 1.1.2016, 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% respectively of the highest pay in the Government (The highest pay in the Government is Rs. 2,50,000 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 O.M. 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 O.M. 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:-
Age of pensioner/family pensioner
|
Additional quantum of pension
|
From 80 years to less than 85 years
|
20% of revised basic pension/ family pension
|
From 85 years to less than 90 years
|
30% of revised basic pension / family pension
|
From 90 years to less than 95 years
|
40% of revised basic pension / family pension
|
From 95 years to less than 100 years
|
50% of revised basic pension / family pension
|
100 years or more
|
100% of revised basic pension / family pension
|
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 O.M.
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 1.1.1973. 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 I.D. No. 30-1/33(c)/2016-IC dated 11.05.2017 and I.D. No.30-1/33(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 pre-2016 pensioners/family pensioners and issue the revised Pension Payment Authority in respect of all pre-2016 pensioners.
24. Hindi version will follow.
ANNEXURE I
EXAMPLES (Reference Para 16 of OM No. 38/37/2016 - P&PW(A) dated 12th May, 2017.)
S.No
|
Description
|
1st Case
|
2nd Case
|
3rd Case
|
4th Case
|
1.
|
Date of Retirement
|
31.12.1984
|
31.01.1989
|
30.06.1999
|
31.05.2015
|
2.
|
Scale of pay (or Pay Band & G.P. at the time of retirement)
OR
Notional Pay scale as on 1.1.1986 for those retired before 1.1.1986
|
975-1660
(4th CPC Scale)
|
3000-4500
(4th CPC Scale)
|
4000-6000
(5th CPC Scale)
|
67000-79000
(6th CPC Scale)
|
3.
|
Pay on retirement
OR
Notional pay as on 1.1.1986 for those retired before 1.1.1986
|
1210
|
4000
|
4800
|
79000
|
4.
|
Pension as on 01.01.2016
before revision
|
4191
|
12600
|
5424
|
39500
|
5.
|
Famil pension as on 01.01.2016 before revision
|
3500
|
7560
|
3500
|
23700
|
6.
|
Family pension at enhanced rate as on 01.01.2016
|
NA
|
NA
|
NA
|
39500
|
7.
|
Revised pension by multiplying pre-revised pension by 2.57
|
10771
|
32382
|
13940
|
101515
|
8.
|
Revised family pension by multiplying pre-revised pension by 2.57
|
9000
|
19430
|
9000
|
60909
|
9.
|
Revised family pension at enhanced rate by multiplying pre-revised enhanced family pension by 2.57
|
NA
|
NA
|
NA
|
101515
|
10.
|
Pay fixed on notional basis on 1.1.1996
|
3710
(3200-4900)
|
11300
(10000-15200)
|
NA
|
NA
|
11.
|
Pay fixed on notional basis on 1.1.2006
|
8910
(PB-I, GP 2000)
|
27620
(PB-3, GP 6600)
|
11330
(PB-I, GP-2400)
|
NA
|
12.
|
Pay fixed on notional basis on 1.1.2016
|
23100 (Level -3)
|
71800 (Level-11)
|
29600 (Leval-4)
|
205100 (Level -15)
|
13.
|
Revised pension w.e.f
1.1.2016 as per first formulation.
|
11550
|
35900
|
14800
|
102550
|
14.
|
Revised family pension w.e.f 1.1.2016 as per first formulation
|
9000
|
21540
|
9000
|
61530
|
15.
|
Revised family pension at enhanced rate w.e.f. 1.1.2016 as per first formulation.
|
NA
|
NA
|
NA
|
102550
|
16.
|
Revised pension payable (Higher of S.No. 7 and 13)
|
11550
|
35900
|
14800
|
102550
|
17.
|
Revised family pension payable (Higher of S.No. 8 and 14)
|
9000
|
21540
|
9000
|
61530
|
18.
|
Revised family pension at enhanced rate payable (Higher of S.No. 9 and 15)
|
NA
|
NA
|
NA
|
102550
|
sd/-
(Harjit Singh)
Director
Impact of order dated 12-05-2017
The impact of above order dated 12-05-2017 can be analysed only after orders are issued. According to the orders the pay of pre 2016 retirees has to be notionally fixed in in revised pay matrix intrdoduced from 1-1-2016 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:
1
|
Basic pay as on 1-1-1996
|
xxx
|
2
|
DA appropriate to basic pay at 1510 pts
|
Xxx
|
3
|
I IR
|
100
|
4
|
2nd IR 10% of BP subject to minimum of Rs.100
|
Xxx
|
5
|
40% of BP
|
Xxx
|
6
|
Total
|
xxx
|
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
For pay range upto Rs.3500pm
|
148% of pay
|
For pay range above Rs.35oo and upto 6000 pm
|
111% of pay subject to a minmum of Rs.5180 pm
|
For pay range above Rs.6000 pm
|
96% of pay subject to minimum of Rs.6660 pm
|
VI CPC
1
|
Existing pay scale
|
x
|
2
|
Applicable pay band and grade pay
|
a+b
|
3
|
Basic pay as on 1-1-2006
|
xxx
|
4
|
Pay after multiplication of BP by a factor 1.86 rounded off to next multiple of 10
|
Xxx
|
5
|
Pay in the pay band
|
Xxx
|
6
|
Grade Pay applicable to the post
|
b
|
7
|
Revised basic pay is pay in the pay band and grade pay.
|
Xxx +b
|
VII CPC
1
|
Existing Pay Band
|
a
|
2
|
Existing Grade Pay
|
a+b
|
3
|
Basic pay as on 1-1-2016
|
Xxx+b
|
4
|
Level corresponding to GP
|
C
|
5
|
Pay after multiplication of BP by a fitment factor of 2.57
|
Xxx
|
6
|
Revised Pay in Pay Matrix (either equal to or next higher Cell
|
Xxx
|
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 deciscion 50% of notional pay as per 7 cpc is Rs26800.
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