7th CPC Resolution for Pensioners and Family Pensioners

                               GOVERNMENT OF INDIA

MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
(Department of Pension and Pensioners’ Welfare)

RESOLUTION

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).“

2. 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 ..

3. 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.

4. The revised provisions regarding pensionary benefits, which have been accepted as indicated in the Annexure, will be effective from 01.01.2016.

sd/-
(Vandana Sharma)
Joint Secretary to the Govt of India

Item No.	Recommendation	Decision  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 rise by 50% . (Para 8.17.29  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, Constant Attendant Allowance shall be paid at existing  rates.
3.	General  Provident Fund Status quo may be maintained  in this respect. (Para 9.4.4 of the Report)	Accepted
4.	Rates 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)	Accepted
5.	Quantum of Minimum Pension 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)	Accepted
6.	Rate of Additional Pension and Family Pension to 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)	Accepted
7.	Time 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)	Accepted
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%.	Accepted
9.	Rationalization   of death gratuity The Commission, after examination of the matter, recommends the following rates for payment of death gratuity: Length   of Service Rate of Death Gratuity Less than One year 2 times of monthly emoluments One Year or more but less than 5 years 6 times  of  monthly emoluments 5 years or more but less 11 years 12 times  of monthly emoluments 11 years or more but   20 times 20 times of monthly emoluments 20 years or more Half 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)	Accepted
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. (Para 10.1.43 of the Report)	Accepted
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 0.1.0.1.20.16 (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, shall be 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 Compensation 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: Circumstances  Existing Proposed Death  occurring due  to accidents in course of performance of duties 10 lakh 25 lakh Death in the course of performance the course of attributed  to acts of violence by terrorists, anti social elements  etc. 10 lakh 25 lakh Death occurring in border skirmisheds and action against militants, terrorists,extremists,sea pirates 15 lakh 35 lakh Death occurring while on duty in the specified high altitude, unaccessible border posts, on account of natural disasters, extreme weather conditions 15 lakh 35 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 lakh 45 lakh (para 10.2.77)	Accepted

Revision of pension of Pre-2016 GoI pensioners/family pensioners

F.No.38/37/2016-P&PW(A) (ii)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners’ Welfare
Lok Nayak Bhawan, New Delhi-110003

Dated the 4th August, 2016.

OFFICE MEMORANDUM

Sub: Implementation of Government’s decisions on the recommendations of the Seventh Central Pay Commission – Revision of pension of pre-2016 pensioners/oIpensioners etc.

The undersigned is directed to say that in pursuance of Government’s decision on the recommendations of Seventh Central Pay Commission, sanction of the President is hereby accorded to the regulation, with effect from 01.01.2016, of pension/ family pension of all the pre-2016 pensioners/ family pensioners in the manner indicated in the succeeding paragraphs. Separate orders are being issued in respect of employees who retired/died on or after 01.01.2016.

2.1 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, Central Civil Services (Extraordinary Pension) Rules 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.

2.2 Separate orders will be issued by the Ministry of Defence in regard to Armed
Forces pensioners/family pensioners.

2.3 These orders also 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.

3. In these orders:

a. ‘Existing pensioner’ or ‘Existing Family pensioner’ means a pensioner/family pensioner to whom these orders are applicable in terms of para 2.1 above.

b. ‘Existing pension’ or ‘Existing Family Pension means the basic pension (inclusive of commuted portion, if any) or basic family pension, as had been fixed at the time of implementation of 6th CPC recommendations, which an existing pensioner or family pensioner was entitled to.

4.1 For existing pensioners, who have retired before 01.01.2016, the revised pension/family pension with effect from 01.01.2016 shall be determined by multiplying the pension/family pension, as had been fixed at the time of implementation of 6th Central Pay Commission (CPC) recommendations, by 2.57. The amount of revised pension/family pension so arrived at shall be rounded off to next higher rupee.

Illustration:
Case I : Pensioner ‘A’ retired at last pay drawn of Rs. 79,000 on 31st May, 2015 under the 6th CPC regime in the scale of Rs. 67000-79000:

		Amount in Rs.
1.	Basic Pension fixed in 6tH CPC	39500
2.	Revised Pension fixed under 7tnCPC (using a multiple of 2.57)	101515

Case II: Pensioner ‘B’ retired at last pay drawn of Rs. 4,000 on 31st January, 1989 under the 4th CPC regime in the pay scale of Rs. 3000-100-3500-125-4500:

		Amount in Rs.
1.	Basic Pension fixed in 4tn CPC	1,940
2.	Basic Pension as revised in 6th CPC	12,600
3.	Revised Pension fixed under T” CPC (using a multiple of 2.57)	32,382

4.2 For this purpose, the existing pension/family pension will be the basic pension/family pension only without the element of additional pension available to the old pensioners/family pensioners of the age of 80 years and above. The additional pension/family pension payable to the old pensioners/family pensioners will be worked out in accordance with para 4.5 of this O.M.

4.3 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.

4.4 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).

4.5 The quantum of pension/family pension available to the old pensioners/ family pensioners shall continue to be as follows:-

Age of Pensioner/family 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 in terms para 4.1 above is Rs.10,OOO pm, the pension will be shown as (i).Basic pension=Rs.10,OOO and (ii) Additional pension = Rs.2,OOO pm. The pension on his/her attaining the age of 85 years will be shown as (i). Basic Pension = Rs.10,OOO and (ii) additional pension = Rs.3,OOOpm. Dearness relief will be admissible on the additional pension available to the old pensioners also.

4.6 The revised pension/family pension arrived at as per paragraph 4.1 includes dearness relief sanctioned from 1.1.2016.

5. Where the revised pension/family pension in terms of paragraph 4.1 above works out to an amount less than Rs. 9000/-, the same shall be stepped up to Rs. 9000/-. This will be regarded as pension/family pension with effect from 1.1.2016.

6. 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.

7. The cases of Central Government employees who have been permanently absorbed in public sector undertakings/autonomous bodies will be regulated as follows:-

(a) PENSION

Where the Government servants on permanent absorption in public sector undertakings/autonomous bodies continue to draw pension separately from the Government, the pension of such absorbees will be updated in terms of these orders. In cases where the Government servants have drawn one time lump sum terminal benefits equal to 100% of their pensions and have become entitled to the restoration of one-third commuted portion of pension as per the instructions issued by this Department from time to time, their cases will not be covered by these orders. Orders for regulating pension of such pensioners will be issued separately.

(b) FAMILY PENSION

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.

8. The matter regarding Constant Attendant Allowance admissible to the existing pensioners shall 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.

9. All Pension Disbursing Authorities including Public Sector Banks handling disbursement of pension to the Central Government pensioners are hereby authorised to pay pension/family pension to existing pensioners/family pensioners at the revised rates in terms of para 4.1 and 5 above without any further authorisation from the concerned Accounts Officers/Head of Office etc. Wherever the age of pensioner/ family pensioner is available on the pension payment order, the additional pension/ family pension in terms of para 4.4. above may also be paid by the pension disbursing authorities immediately without any further authorisation from the concerned Account Officer/ Head of Office, etc. A suitable entry regarding the revised pension shall be recorded by the pension Disbursing Authorities in both halves of the Pension Payment Order.

10 The pension/family pension as worked out in accordance with provisions of Para
4.1. 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.

11. Further orders in regard to revision of pension based on the recommendations of the Committee to be constituted in terms of the Government’s decision on Item No. 11 of this Department’s Resolution No. 38/37/2016-P&PW (A) dated 4th August, 2016, will be issued in due course.

12. After a decision as in para 11 above is taken by the Government and orders are issued in this regard, the Head of the Department of the Ministry, Department, Office, etc. from which the government servant had retired or where he was working prior to his demise will revise the pension/family pension of all pensioners/ family pensioners with effect from 1st January 2016 in accordance with those orders and issue revised Pension Payment Order (PPOs) accordingly.

13. It is considered desirable that the benefit of these orders should reach the pensioners as expeditiously as possible. To achieve this objective it is desired that all Pension Disbursing Authorities should ensure that the revised pension and the arrears due to the pensioners in terms of para 4.1. and para 5 above is paid to the pensioners or credited to their account by 31st August, 2016 or before positively.

14. In their application to the persons belonging to Indian Audit and Accounts Department, these orders issue in consultation with the Comptroller and Auditor General of India.

15. Ministry of Agriculture etc. are requested to bring the contents of these Orders to the notice of Controller of Accounts/Pay and Accounts Officers and Attached and subordinate Offices under them on a top priority basis. All pension disbursing offices are also advised to prominently display these orders on their notice boards for the benefit of pensioners.

16. Hindi version will follow.

Sd/-
(Vandana Sharma)
Joint Secretary to the Government of India

Authority: http://www.pensionersportal.gov.in/