MOD 7TH CPC PENSION RESOLUTION

                               

Item No.	Recommendation for past Defence Forces personnel	Decision of Government
1	Revision of Pension of pre 7th CPC retirees The Commission recommends the following pension formulation for Defence Forces Personnel who have retired before 01.01.2016 : (i) All the Defence Forces 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 1 she had earned in that level while in service, at the rate of three percent. Military Service Pay shall be added to the amount which is arrived at after notionally fitting him in the 7th CPC matrix. 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 shall be entitled to the higher of the two. It is recognized that the fixation of the pension as per formulation (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 pension, may be fixed in terms of formulation (ii) above, till final fixation of the pension under the Seventh CPC matrix is undertaken. (Para 10.2.87 & 10.2.88 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 by multiplying the pension drawn on 31.12.2015 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) D/o Posts, Additional Secretary &FA M/o Home Affairs and Controller General of Accounts as Members