Saturday, 12 December 2015

7th Pay Commission Report on Death Gratuity

7th Pay Commission Report on Death Gratuity

The Commission has received representations pointing to a need for rationalization of current slabs for death gratuity, especially for the slab of 5 to 20 years of qualifying service in which family pensioners are stated to be placed at a disadvantageous position.

Analysis and Recommendations : As per Rule 50 of Pension Rules, the death gratuity admissible will be as follows, subject to the maximum limit prescribed for the gratuity:


7th CPC Death Gratuity


Authority: 7th CPC Report

Central Pensioners : 37% are in the 60-70 age group


Central Pensioners : 37% are in the 60-70 age group

Age Analysis of Pensioners as on 01.01.2014 : Payment of additional pension/family pension with advancing age came into force based on recommendations of the VI CPC. This Commission, with a view to ascertain the strength in various age groups, called for information on age profile of pensioners and family pensioners. The data with regard to pensioners in terms of various age groups, as reported to the Commission, for the five categories of pensioners’ viz., Central Civil, Railways, Post, Defence (Civil) and Defence (Services) is as under:

Age Analysis of Pensioners as on 01.01.2014



# Others includes those below 60 years of age and those above 100 years.

@ Others under Central Civil additionally includes cases whose revision had not been effected, certain categories of pensioners like Judges of Supreme Court and High Courts, Ex-MPs, freedom fighters.
^ Railways have included those less than 60 years of age in the 60-70 age group.

From the table above it can be observed that of the total 51.96 lakh pensioners, 37 percent are in the 60-70 age group, about 26 percent each are in the 70-80 and ‘Others’ age group. The balance 11 percent are in the 80 plus category and thus entitled to enhanced pension based on advancing age.

The stacked bar graph brings out for each category of pensioners the break up in percentage terms of each age group viz., 60-70 years, 70-80 years, 80-90 years, 90-100 years and Others.




Railways have included those less than 60 years of age in the 60-70 age group
The graph above brings out the following:
i. Railways, in comparison to other categories have largest percentage of pensioners above the age of 80 years. While in all other categories this percentage is in the range of 7-9 percent, in the Railways it is 21 percent.
ii. Defence Services have a large percentage of personnel retiring at an early age, as is confirmed by the data. 57 percent of defence service pensioners fall in the ‘Others’ age group. Central Civil which also includes CAPFs has 25 percent in ‘Others’ age group.
Authority: 7th CPC Report

Enhanced Family Pension : No Change is being recommended by 7th CPC

Enhanced Family Pension : No Change is being recommended by 7th CPC

Increasing the existing time period of seven years for enhanced family pension

The Commission has received representations seeking enhancement in the period of enhanced family pension from the existing seven years or 67 years, whichever is less, to ten years in case of death of retirees.
Analysis and Recommendations : The current rates of enhanced family pension are–
i. In the case of death in service: Payable to the family of a government servant for a period of ten years from the date of death of a government servant, without any upper age limit.
ii. In the case of death after retirement: Payable for a period of seven years or up to the date on which he would have attained 67 years had he survived, whichever is less.
The Commission notes that the revision with regard to period of eligibility for the enhanced family pension of ten years was made based on recommendations of the VI CPC Report. No further change is being recommended by this Commission.

Strength of Central Government Pensioners as on 01.01.2014

Strength of Central Government Pensioners as on 01.01.2014

Strength of Pensioners as on 01.01.2014 : Pensioners can be broadly categorised into Civil and Defence. Within civil pensioners there exist three broad categories: Central Civil, Railways and Post.

As on 01.01.2014, as per data reported to the Commission, the total number of pensioners were 51.96 lakh. The category wise break up is shown in the pie chart below


Central Government Pensioners

Pensioners and Family Pensioners

The break-up of the total 51.96 lakh pensioners as on 01.01.2014 between pensioners and family pensioners, category wise, is as under:
Pensioners and Family Pensioners

The table above brings out the following:

i. Of the total 51.96 lakh pensioners as on 01.01.2014, 11.83 lakh viz., 23 percent were family pensioners.
ii. Civilian pensioners consisting of Central Government Civil, Railways and Posts, as on 01.01.2014 number 27.81 lakh while defence pensioners (including defence civilians were 24.15 lakh. Defence pensioners (including defence family pensioners and defence civilians) constitute 47 percent of all pensioners.

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