Monday, 8 August 2016

7th Pay Commission: Millions to get better pensions

7th Pay Commission: Millions to get better pensions

New Delhi: Millions of retired central government employees will be able to get better pensions under the new pension rules have been made on 7th Pay Commission recommendations.

This new pension rules should cheer retired employees. They will get a higher pension packet and arrears from this month from exchequer with the centre issuing on Thursday the Resolution and Office Memorandums the F.No 38/37/2016-P&PW(A)(i) and the F.No.38/37/2016-P&PW(A)(ii) respectively.
The revised pensions are higher than what the get now.

Although the move benefits the cross-section of retired employees, those in higher brackets have gained more in real terms. New pensions for defence and railway personnel will be notified separately.

Older pensioners have an added reason to rejoice. Those over 80 years will get an additional 20% of their basic pension. This goes up by 30%, 40%, 50% and 100% for those over 85, 90 95, and 100 respectively.
To get an idea of the quantum of hike, a person with a basic pension of Rs 12,600 — who used to get Rs 28,350 (with Dearness allowance 125%) in hand — will now receive a total pension of Rs 32,382. The new rates are effective from January 2016 and the arrears will be given out in one installment during this month.
The maximum gratuity too has been revised to Rs 20 lakh, up from the earlier Rs 10 lakh. The ceiling on gratuity will increase by 25 per cent whenever the dearness allowance rises by 50 per cent of the basic pay.
A payment of Rs 25 lakh, from existing Rs 10 lakh, will be given to the next of kin in case of death occurring due to accidents in course of performance of duties and those attributed to acts of violence by terrorists, anti social elements etc.

GOLDEN SMILES
  • Minimum pension Rs Rs 9,000, up from earlier Rs 7,875 (with Dearness allowance 125%) in hand (revised pension to be effective from January 1, 2016). 
  • Maximum pension Rs 1,25,000, up from Rs 1,01,250 (with Dearness allowance 125%). 
  • Maximum gratuity up to Rs 20 lakh (depending on years of service and last salary drawn). 
  • The ceiling on gratuity will increase by 25% whenever the dearness allowance rises by 50% of the basic pay. 
  • Incremental additional pension for those 80 years and above. People over 100 to get double pension.
TST

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