### How to calculate 7th CPC Pension as per DoPPW order dated on 12.5.2017

### Implementation of Government’s decision on the recommendations of the Seventh Central Pay Commission – Calculation of Revised of pension of pre-2016 pensioners/family pensioners, etc :

### OM No.38/37/2016-P&PW(A) dated 12.5.2017 :

Implementation of Government’s decision on the recommendations of the Seventh Central Pay Commission – Revision of pension of pre-2016 pensioners/family pensioners, etc :

**(i)REVISED PENSION OF PENSIONERS WHO RETIRED BETWEEN 1-1-1986 & 31-12-1995 (4TH CPC SCALES)**

Step 1: work out Notional pay as on 1.1.1996 = LPD at the time of retirement + DA as on 1-1- 1996 was 148 % up to Rs.3500 BP and 111% for BP Rs.3501 to 6000 with minimum of Rs.5180 + IR 1 Rs 100/- + IR II =10% of BP (min Rs100) + 40% fitment benefit sum total be placed in appropriate stage in the 5th CPC scale corresponding to the scale from which retired

e.g 4th CPC scale =2000-60-2300-75-3200 LPD 2300 Notional pay = 2300 +3404 +100 +230 + 920 =6954 placing it at appropriate level of Corresponding 5th CPC scale = 6500-200-10500 Notional pay as on 1.1.96 comes to Rs 7100/

Step 2: Work out Notional pay in 6th CPC PB 2 Rs 9300-34800 GP 4200 =7100 X1.86 +4200 = 17406

Step 3: work out Notational pay 7th CPC = 17406 x 2.57 = 44735plce it in pay matrix level 6 = 44900

Step 4: 7th CPC pension = Rs 22450 family pension

**(ii) REVISED PENSION OF PENSIONERS WHO RETIRED BETWEEN 1-1-1996 & 31-12-20055 (4TH CPC SCALES)**

e.g 5th CPC scale S 19 10000- 15200 LPD Rs 11300

Step 1: work out notional pay 6th CPC PB 3 GP 6600 =11300×1.86 +6600 = 27620

Step2: Work out Notional Pay 7th CPC in accordance with OM No.38/37/2016-P&PW(A) dated 12.5.2017 = 27620 x 2.57 = 70 984 place it at appropriate stage in Pay Matrix Level 11 = 71800/

Step 3 : Pension = 35900/ family Pension = Rs 21540/

**Example: In case of a pensioner retired at last pay drawn of Rs.4000 on 31st January, 1989 under IV CPC regime, having drawn 9 increments in the pay scale of Rs.3000-100-3500-125-4500… Find the corresponding 6th CPC Grade Pay Rs.6600 and enter 9 earned increments in the calculator.**

Source: http://scm-bps.blogspot.in/

Serukalathur Suryanarayanan says

1. Step 2 under (i) makes use of the multiplier 1.86. It misses the fitment benefit of 40%. The multiplier here should be 2.26 and not 1.86. Instead of doing this one should straight away make use of the fitment table to get at the the 6th CPC notional pay, as was done for the existing employees. This is supposed to be the method for getting notional pay as per the 12/5/17 orders.

2. Step 3 under (i): The use of 2.57 may not be desirable as the 7th CPC has used a factor like 2.72 for some Pay Band(s). It would therefore be correct to see the no. of increments implied by the 6th CPC notional pay in the 6th CPC scale of pay and use this number to arrive at the basic pay in the relevant column of the Pay matrix.

3. Section (ii) is for 5th CPC scales and not 4th CPC as mentioned.

Serukalathur Suryanarayanan says

Step 1 seems alright. One can merely use the formula

Notional pay 0n 1/1/96 = LPD x( 1+ 1.48+ 0.1 +0.4) + 100 0r LPD x2.98 +Rs. 100 (for LPD 3500.

However, the 5CPC talked about things like “one increment in the new scale of pay for every 5 increments in the pre 5CPC scale of pay” or increment(s) depending upon ‘bunching’ in different stages of the revised scale of pay. Clclarification are neede on this score.

Step 2 under (i) talks of a multiplier 1.86 in calculating notional pay in 6th CPC. This is incorrect. The multiplier should be 2.26 that includes the fitment of 40%. However even this is not the fitment formula used to fix pay in the 6th CPC implementation. The pay was fixed as per the fitment tables for the purpose given by the M/Finance. Recall that the Govt. ordered that this fitment table should be used to arrive at the revised pension as per the 6th CPC. (DP&PW orders of 28/1/2013 and the table attached to it.) Using any other method for getting at the notional pay will be wrong.

to arrive at the figure which can be used to arrive at the appropriate stage of the 5th CPC scale of pay to get the notional pay on2.98 1/1/96.