GOVERNMENT OF INDIA
MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
(Department of Pension and Pensioners’ Welfare)
(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
(Vandana Sharma)
Joint Secretary to the Govt of India
Item
No.
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Recommendation
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Decision of Government
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1.
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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)
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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. |
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2.
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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)
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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.
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3.
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General Provident Fund
Status quo may be maintained
in this respect.
(Para 9.4.4 of the Report)
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Accepted
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4.
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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)
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Accepted
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5.
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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)
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Accepted
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6.
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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)
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Accepted
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7.
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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)
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Accepted
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8.
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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%.
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Accepted
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9.
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Rationalization of
death gratuity
The Commission, after
examination of the matter, recommends the following rates for
payment of death gratuity:
Para 10.1.41 of the Report)
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Accepted
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10.
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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
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11.
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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)
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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
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12.
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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:
(para 10.2.77)
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Accepted
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