FAQ for Central Government Employees – Pension Policy – Page 5
Calculation of pension for pre-2016 pensioners is little confused with the formulation methods. First formulation and second formulation in 7th CPC, finally Govt has decided to implement as per first formulation.
Frequently Asked Questions (FAQs)
(Central Civil Services)
Whether all pre-2006 pensioners/family pensioners would get benefit under Department of Pension and Pensioners’ Welfare O.M. NO.38/37/08- P&PW (A) dated 28.1.2013 (now OM dated 30.07.2015)?
There will be no change in the pension of those pre-2006 pensioners whose pension (as revised with effect from 1.1.2006) is already equal to or more than this minimum limit mentioned in the OM dated 28.01.2013 and 30.07.2015. In the case of family pensioner also the minimum family pension as mentioned in Col.10 of the Annexure to the OM dated 28.1.2013 shall be payable if the amount of family pension (w.e.f. 01.01.2006) is equal to or more than this minimum family pension, the same family pension shall continue to be paid.
What are the provisions regarding revision of pension of pre-2016 pensioners after 7th CPC?
Orders were issued vide OM No. 38/37/2016-P&PW(A) dated 04.08.2016 for revision of pension of pre-2016 pensioners by multiplying the pre-revised pension by a facor of 2.57. This was to be done by the Pension Disbursing Authorities/ Banks. Further orders were issued vide OM No. 38/37/2016-P&PW(A) dated 12.05.2017.
As per this OM, the revised pension/family pension w.e.f 01.01.2016 of all Central Civil Pensioners/ family pensioners, including CAPF’s, who retired/died prior to 01.01.2016, shall 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 formulate 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. 01.01.2016 as per the first Formulation.
In this 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.
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 OM dated 12.05.2017 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. 01.01.2016 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 paid shall be treated as revised pension/ family pension w.e.f. 01.01.2016.