7th CPC Recommendations on Pay and Pensionary Benefits
Cabinet approves modifications in the 7th CPC recommendations on pay and pensionary benefits
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi approved important proposals relating to modifications in the 7th CPC (Central Pay Commission) recommendations on pay and pensionary benefits in the course of their implementation. Earlier, in June, 2016, the Cabinet had approved implementation of the recommendations with an additional financial outgo of Rs 84,933 crore for 2016-17 (including arrears for 2 months of 2015-16).
The benefit of the proposed modifications will be available with effect from 1st January, 2016, i.e., the date of implementation of 7th CPC recommendations. With the increase approved by the Cabinet, the annual pension bill alone of the Central Government is likely to be Rs.1,76,071 crore. Some of the important decisions of the Cabinet are mentioned below:
1. Revision of pension of pre – 2016 pensioners and family pensioners
The Cabinet approved modifications in the recommendations of the 7th CPC relating to the method of revision of pension of pre-2016 pensioners and family pensioners based on suggestions made by the Committee chaired by Secretary (Pensions) constituted with the approval of the Cabinet. The modified formulation of pension revision approved by the Cabinet will entail an additional benefit to the pensioners and an additional expenditure of approximately Rs.5031 crore for 2016-17 over and above the expenditure already incurred in revision of pension as per the second formulation based on fitment factor. It will benefit over 55 lakh pre-2016 civil and defence pensioners and family pensioners.
While approving the implementation of the 7th CPC recommendations on 29th June, 2016, the Cabinet had approved the changed method of pension revision recommended by the 7th CPC for pre-2016 pensioners, comprising of two alternative formulations, subject to the feasibility of the first formulation which was to be examined by the Committee.
In terms of the Cabinet decision, pensions of pre-2016 pensioners were revised as per the second formulation multiplying existing pension by a fitment factor of 2.57, though the pensioners were to be given the option of choosing the more beneficial of the two formulations as per the 7th CPC recommendations.
In order to provide the more beneficial option to the pensioners, Cabinet has accepted the recommendations of the Committee, which has suggested revision of pension based on information contained in the Pension Payment Order (PPO) issued to every pensioner. The revised procedure of fixation of notional pay is more scientific, rational and implementable in all the cases. The Committee reached its findings based on an analysis of hundreds of live pension cases. The modified formulation will be beneficial to more pensioners than the first formulation recommended by the 7th CPC, which was not found to be feasible to implement on account of non-availability of records in a large number of cases and was also found to be prone to several anomalies.
2. Disability Pension for Defence Pensioners
The Cabinet also approved the retention of percentage-based regime of disability pension implemented post 6th CPC, which the 7th CPC had recommended to be replaced by a slab-based system.
The issue of disability pension was referred to the National Anomaly Committee by the Ministry of Defence on account of the representation received from the Defence Forces to retain the slab-based system, as it would have resulted in reduction in the amount of disability pension for existing pensioners and a reduction in the amount of disability pension for future retirees when compared to percentage-based disability pension.
The decision which will benefit existing and future Defence pensioners would entail an additional expenditure of approximately Rs. 130 crore per annum.
Source: PIB News
Goi delinkiing 20yrs and above are get full pension vide on dt6/4/16 but those who are 25.5yrs of services are not get the benefits ie 50% of last bp as per CCS pension rules 1972 are applicable to all retired employees but ,they are given only some officers benefit even after SC order clearly indicate that all retired pensioners are get equality before law.Now the bureaucratic attitudes towards the implemented viicpc without rectify vi CPC erroneous fitmantable loosing large no of pensioners their legitimate right.while viicpc same attitudes aplies for recommended rejected &one of their thought implies new formula so that pensioners whrild round the offices for prepare their pension .
All cental govt employee will get the VIIth .pay commisssion, I was served 36 years in cental govt. service only receiving 30th April2016 order. Nn DA no revision?
What is the first formula for calculation of pension for pre-2016 defence pensioners.
The second formula is 2.57% multiplication.
Kindly clarify
The revised formula for fixation of notional pay based on the information available in the PPO has not been published sofar . the new proceedure may be informed
Recommendations are silent regarding fixation of pension for pre 1986, 1996, 2006 and 2016 pensioners. Mention of PPO is not sufficient. We are still in dark. Pl clarify.
What is the revised procedure for fixation of notional pay based on information available on Pension payment Order.?And how revised pension will be fixed basesd on notional pay?
I want to know the recommendations made by the pension committee for fixing pension of pre 2016 .which specialparticular in the pop will help in fixing the pension.
What is modified formula for fixing pension of pre 2016 pensioners?