Pension Calculation on option -II for Pre-2016 Central Government Civil Pensioners – Sandu Singh

SANDU SINGH

Dear Sir,
I would like to bring to your kind notice with some illustration that arising differences in Pension Calculation on option -II for Pre-2016 Central Government Civil Pensioner, which has been designed as per the directions recommended by the 7th Pay Commission on the basis of the Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the matrix.

That I took VRS from CAPF on 31.11.2013 (FN) with the last Pay drawn of PB –Rs.17700/- plus GP-Rs.4600/- (total Pay of Rs.22, 300/) in the Pay Scale of PB-II(9300-34800) & GP-4600 . As such, I have been sanctioned the basic pension of Rs.11, 150/-(50% of total Pay).Moreover, I had earned five (05) increments in the corresponding scale.

As per the Formulae designated with the directions recommended by the 7th Central Pay Commission, my basic pension arrives as follows which arises differences.
7TH PAY COMMISSION CALCULATOR (details of Individual)
Enter your 6th CPC basic pension 11150
Select your PB-GP PB-II:4600
Select your number of Increments earned:05

CALCULATION
7TH CPC BASIC PENSION AS ON 01.01.2016
Initial Basic Pension fixed , using a multiple of 2.57 [ Option – I ] i.e. 11150 x 2.57 : 28655

Basic Pension Based on Increments [ Option -II ] 26000 *
*this basic pension is arrived by adding minimum corresponding pay with 5 increments thereof @3% and Fifty percent of the total amount so arrived as follows:-
i) minimum of the corresponding Pay level in 7th CPC is Rs.44,900/- (level-7 & index-1)
ii) Notional Pay Fixation based on 5 increments @ 3%: Rs.52050/-
iii) 50 percent of the notional pay so arrived :52000/2 =Rs.26,000/-
(Option-II)

Note: 7th Pay Commission states that all the civilian personnel including CAPF who retired prior to 01.01.2016 (expected date of implementation of the Seventh CPC recommendations) shall first be fixed in the Pay Matrix being recommended by this Commission, on the basis of the Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the matrix.
i) That I have drawn last pay with PB: Rs.17, 700/- plus GP: Rs.4600/-(total Pay of Rs.22, 300/-). Thus, on the basis of the Pay band and Grade Pay, the corresponding level in 7th Pay Commission Pay Matrix table is Rs.22, 300 x 2.62 =Rs.58, 426/- and which the minimum of the corresponding level in the 7th Pay Commission Pay Matrix table is drawn as Rs.58,600/- (as per level-7 & index-10).

AFTER ARRIVING OF THE MINIMUM CORRESPONDING LEVEL IN THE MATRIX, NOW THE BASIC PENSION, BASED ON INCREMENTS OPTION (II) IS TO BE CALCULATED AS FOLLOWS:-
a)On the basis of the Pay Band and Grade Pay at which retired , the minimum of the corresponding level drawn in the Matrix is Rs.58,600/- (at level-7 & index-10)

b)Notional Pay Fixation based on 5 increments @ 3% on the minimum corresponding level of Rs.58,600/- which is arrived at Rs.67,933/-

c)50 percent of the notional pay so arrived (i.e) 67933/2 =Rs.33,967/-

Here the anomaly of basic pension of (Rs.26000/-*) Option-II, shown above which is arrived by adding minimum corresponding pay (by taking as Rs.44, 900/- at Level-7 & index-1) with 5 increments thereof @3% and Fifty percent of the total amount so arrived, which seems to be wrong and not justified as per the below examples :-

A.This minimum of the corresponding Level in the Pay Matrix for Rs.44, 900/- {Level-7 & index-1} has presumed to be designated for those pensioner whose Grade Pay is Rs.4600/- and Entry Pay is Rs.12, 540/- (total pay of Rs.17,140/-multiple by 2.62) in the corresponding Pay scale(Pay Band).

In the instant case, my Grade Pay is Rs.4600/- and Entry Pay is Rs.17,700/- (the total pay of Rs.22,300/-) then how the minimum of the corresponding level is taken for Rs.44,900/- as per the designed Formulae recommended by the 7th Pay Commission for Calculation of 7th CPC Basic Pension as on 01.01.2016 INSTEAD OF RS.58,600/- (I.E) GP RS.4600/-PLUS & EP RS.17,700/- & TOTAL IS RS.22,300/- AND MULTIPE BY 2.62 = RS.58,426/-which is drawn as Rs.58,600/- Minimum of the corresponding level in the 7th Pay Commission Pay Matrix (at level-7 & index-10).

THE FOLLOWING EXAMPLE ALSO CLEARLY EVIDENT THE DIFFERENCES OF CALCULATION OF BASIC PENSION.
If I would be in the service and drawing Grade Pay Rs.4600/- and Entry Pay Rs.17, 700/- (Total is Rs.22, 300) in the Pay Band (9300-34,800), the Basic Pay would be calculated as below:

7TH PAY COMMISSION BASIC PAY CALCULATOR
1. Basic Pay as on 01.01.2016 including G.P : Rs.22,300
2. Select your Pay & Grade Pay :PB-2(9300-34800)GP-4600
3. Select your Transport Allowance : No TA
4. Select your House rent allowance: No HRA
5. Select your city details given : No TA
6. Non practicing allowance : No
Revised Basic is arrived at Rs.58, 600/- as per the 7th Pay Commission Calculator recommended by 7th Pay Commission.
Then, why is disparity of Pay fixation between pensioners and in service personnel?
From the above, it is clear that Rs.58, 600/- would be the appropriate minimum of the corresponding level in the matrix (at Level-7 & index-10).
This amount (Rs.58,600/-) shall be raised, to arrive at the notional pay of the retiree, by adding the number of increments he/she had earned in that level while in service, at the rate of three percent. Fifty percent of the total amount so arrived at shall be the revised pension.

IN THE INTANT CASE, THE FOLLOWING BASIC PENSION CALCULATION IS DEEMED FIT.
a) On the basis of the Pay Band and Grade Pay at which retired , the minimum of the corresponding level drawn in the Matrix is Rs.58,600/- (at level-7 & index-10)

b)Notional Pay Fixation based on 5 increments @ 3% on the minimum corresponding level of Rs.58,600/- which is arrived at Rs.67,933/-

c)50 percent of the notional pay so arrived (i.e) 67933/2 =Rs.33,967/-

Thus, the Basic Pension of the above said pensioner would Rs.33,967/-(R/off Rs.33970), neither Rs.28655/- nor Rs.26, 000/-

Kindly examine and do the needful, if deemed fit please.

Thanking you.

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