Friday, 5 August 2016

7th CPC Resolution for Pensioners and Family Pensioners

7th CPC Resolution for Pensioners and Family Pensioners


(Department of Pension and Pensioners’ Welfare)


New Delhi, the 4th August, 2016

No.38/37/2016-P&PW (A) – The Terms of Reference of the Seventh Central Pay Commission as contained in Ministry of Finance (Department of Expenditure) Resolution No.1/1/2013-E.1I1 (A) dated 28.2.2014 included the following:

“To examine the principles which should govern the structure of pension and other retirement benefits, including revision of pension in the case of employees who have retired prior to the date of effect of these recommendations, keeping in view that retirement benefits of all Central Government employees appointed on and after 01.01.2004 are covered by the New Pension Scheme (NPS).”
  1. The Commission, on 19th November, 2015, submitted its report to the Government on Terms of Reference as contained in aforementioned Resolution dated 28.02.2014. Government, after consideration, has decided to accept the recommendations of the Commission on pensionary benefits to the Central Government civil employees, including employees of the Union Territories and Members of All India Services subject to certain modifications, as specified hereinafter ..
  2. Detailed recommendations of the Commission relating to pensionary benefits and the decisions taken thereon by the Government are listed in the statement annexed to this Resolution.
  3. The revised provisions regarding pensionary benefits, which have been accepted as indicated in the Annexure, will be effective from 01.01.2016.
(Vandana Sharma)
Joint Secrtary to the Govt of India

ItemNo.RecommendationDecision  of Government
1.The Commission notes  that this  allowance   was enhanced  from Rs.300/-  p.m. to Rs.500/- p.m. from 19.11.2014.    As such, further enhancement of this allowance  is not recommended.(Para 8.17.52  of the Report)To
be     examined      by
a Committee               comprising
Finance        Secretary        and Secretary     (Expenditure)     as Chairman   and
Secretaries   of Home       Affairs,        Defence, Posts,      Health      &     Family Welfare,  Personnel
& Training and Chairman,
Railway Board as
Members.     Till    a
final decision   is  taken
based   on the   recommendations    of
the Committee,      Fixed     Medical Allowance    shall
be   paid   at existing  rates.
2.Constant   Attendance   Allowance.The allowance  may be increased  by a factor of 1.5 i.e. to Rs. 6750/-  per month. The allowance  needs
further   increase   by 25%  each  time DA  rises  by 50% .  (Para 8.17.29  of the Report)
be     examined      by
a Committee               comprising
Finance        Secretary        and Secretary     (Expenditure)     as Chairman   and
Secretaries   of Home       Affairs,        Defence, Posts,         Health    &
Family Welfare,  Personnel  & Training and Chairman,  Railway Board as    Members.     Till
a    final decision   is
taken   based   on the
recommendations    of  the Committee,                  Constant Attendant   Allowance
shall  be paid at existing  rates.
3.General  Provident
Status quo may be maintained  in this respect.
(Para 9.4.4 of the Report)
of Pension  & Family Pension
The Commission does not recommend any further increase  in the rate of Pension  and Family Pension from the existing  levels.
(Para 10.1.25 of the Report)
5.Quantum  of Minimum
The recommendations     of   the Commission     in relation   to pay  of  a personnel   will     lead to  a significant    increase    in the   minimum    from
the existing   Rs.7,000    per month   to   Rs.18,000
per month.    This,  based on  computation   of
pension, will   raise   minimum pension   from   the
existing Rs.3500   to   Rs.9,000.      The minimum    pension based on the recommendations   of the Commission will increase  by 2.57 times over the existing  level.
(Para 10.1.27 of the Report)
of Additional   Pension  and
Family Pension   
the older  pensioners.

The Commission   is  of the  view  that the  existing rates  of additional   pension   and additional   family pension  are appropriate.
(Para 10.1.30 of the Report)
Period for enhanced  family  pension.
The Commission   notes  that the  recommendation with  regard to period  of eligibility  of the enhanced family  pension  of 10 years  in case  of death  of a serving    employee     was made    based on   the recommendations   of Vlth CPC  Report.   No further change      is being      recommended       by the Commission.
(Para 10.1.33 of the Report)
8.Gratuity  ceiling
and its indexation.
The Commission  recommends enhancement  in the ceiling  of gratuity  from  the existing  Rs.10  lakh to Rs.20   lakh  from 01.01.2016.      The   Commission further   recommends   the ceiling   on  gratuity may increase  by 25% whenever   DA  rises by 50%.
9.Rationalization   of death gratuityThe
Commission,   after  examination   of the matter, recommends   the  following rates  for  payment
of death gratuity:
Length   of ServiceRate       of       DeathGratuity
Less than One year2
times   of  monthly emoluments
Year   or   more
but less than 5 years
times   of  monthly
5 years  or more
but less 11 years
12 times  of
monthly emoluments
years   or     more
but   20  times
20 times  of
monthly emoluments
20 years or moreHalf month of emoluments for every
completed six monthly period  of
qualifying service subject to  a
maximum of 33 times of emoluments.
Para 10.1.41  of the Report)
10.Commutation of Pensionand
restoration of Accepted commuted Pension
The Commission  does not recommend  any change either  in the maximum  percentage
of commutation or in the period
of restoration.
10.1.43 of the Report)
11.Revision  of Pension
of pre  7m CPC retirees
The Commission recommend the following pension formulation   for  civil employees   including CAPF          personnel     who have     retired     before
(i) 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.    This amount 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.
(ii) The  second calculation   to be carried  out is as follows.    The  pension, as  had  been fixed  at  the time of implementation  of the VI CPC recommendations,    shallnbe  multiplied   by 2.57  to arrive at an alternate  value for the revised pension.
(iii) Pensioners    may   be given   the   option of choosing   whichever    formulation    is beneficial   to them. It is recognized  that the fixation  of pension  as per formulation   in (i) above  may take a little time since the   records of  each   pensioner will   have  to be checked   to  ascertain the  number   of increments earned    in   the retiring    level.       It is   therefore recommended   that in the first  instance  the revised pension  may be calculated  as at (ii) above and the same  may, be paid as an interim
measure.   In the event  calculation   as per  (i) above  yields a higher amount       the       difference        may       be       paid subsequently.(Para    10. 1.67 and    Para
10.1.68 of the Report)
Both the options recommended by  the
7th Central Pay Commission as regards  pension revision   be accepted  subject to feasibility of the implementation. Revision  of pension using the second     option based on fitment    factor of 2.57 be implemented immediately.The first  option may be made feasible after examination by the Committee comprising Secretary (Pension)   as Chairman and Member (Staff). Railway Board, Member   (Staff), Department of Posts, Additional Secretary &  Financial Adviser, Ministry
of Home Affairs and Controller General of Accounts as Members
12.Ex-gratia  Lumpsum
The commission recommends a Common regime for payment of ex-gratia lump-sum compensation for  civil and  defence  forces personnel,  payable  to the next of Kin at the following  rates:
Death  occurring due  to accidents  in    course of
performance  of duties
10 lakh25 lakh
Death     in the course of performance the
course of attributed  to acts  of violence by terrorists, anti social
elements  etc.
10 lakh25 lakh
Death occurring in border
skirmisheds and action against militants, terrorists,extremists,sea pirates
15 lakh35 lakh
Death occurring while on duty in the
specified high altitude, unaccessible border posts, on account of natural
disasters, extreme weather conditions
15 lakh35 lakh
Death occurring during enemy action
in war or such war like engagements , which are specifically notified by
Ministry of Defence and death occurring during evacuation of Indian
Nationals from a war-torn Zone in foreign country.
20 lakh45 lakh
(para 10.2.77)


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