7th CPC Pension Calculation after Committee Report
“Revision of pension using the second option based on fitment factor of 2.57 be implemented immediately. The first option may be made applicable if its implementation is found feasible after examination by the Committee”
Revision of 7th CPC Pension of pre retirees : The Commission recommends the following pension formulation for civil employees including CAPF personnel who have retired before 01.01.2016
(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 applicable if its implementation is found 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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Application of Option 1 with a rider “if found feasible” is contrary to the assurance given by Finance Minister to the Union leaders, who met with the group of ministers in the house of Home Minister on 30.06.16, that the Dept of pensions will only sort out any difficulties in its implementation. This was confirmed by the Secretary General, Confederation of CG Employees in his clarifications dated 08.07.16 on withdrawal of strike. Secretary NC/JCM also wrote to the FM with copy to Cabinet secretary and Secretary (pensions) on 16.07.16 to delete the rider in cabinet note as assured by the FM. It is unfortunate that the FM’s assurance has not been kept.
It is hoped that the union leaders pursue the matter at appropriate level and ensure that justice is done to the pensioners.