NO.38/37/2016-P&PW(A)
Ministry of Personnel, PG & Pensions
Department of Pension & Pensioners'
Welfare
3rdFloor, Lok Nayak Bhawan
Khan Market, New Delhi
Dated, the 1ih May, 2017
Office
Memorandum
Sub:- 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 ih 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 ih 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/autonomousbodies 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/famil 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 notionalfixation 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.
Sd-
(Harijith
Singh)
Director
ANNEXURE I
EXAMPLES
|
S.No
|
Description
|
1st
Case
|
2nd
Case
|
3rd
Case
|
4th
Case
|
|
1
|
Date of
Retirement
|
31.12.1984
|
31-1-1989
|
30-6-1999
|
31-5-2015
|
|
2
|
Scale of Pay (or Pay Band &
G.P.) at the time of (
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
|
69000-79000
(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
|
Family pension as on
01.01.2016
before revision
|
3500
|
7560
|
3500
|
23700
|
|
6
|
Family pension at enhanced
rate as on 01.01.2016
before revision
(if applicable)
|
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
family 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
(PB1+GP2000)
|
27620
(PB3+GP6600
|
11330
(PB1+GP2400)
|
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
|
