No.38/37/2016-P&PW(A)
Ministry of Personnel, PG & Pensions
Department of Pension & Pensioners’ Welfare
3rd Floor, Lok Nayak Bhawan
Khan Market, New Delhi
Dated, the 12th May, 2017
Office Memorandum
Sub:- Implementation of Government’s decision on the recommendations
of the Seventh Central Pay Commission - Revision of pension of pre-2016
pensioners/family pensioners, etc.
The undersigned is directed to say that the 7th Central Pay Commission
(7th CPC). in its Report, recommended two formulations for revision of
pension of pre-2016 pensioners. A Resolution No. 38/37/2016-P&PW (A)
dated 04.08.2016 was issued by this Department indicating the decisions
taken by the Government on the various recommendations of the 7th CPC
on pensionary matters.
2. Based on the decisions taken by the Government on the recommendations
of the 7th CPC, orders for revision of pension of pre-2016
pensioners/family pensioners in accordance with second Formulation were
issued vide this
Department’s OM No. 38/37/2016-P&PW (A) (ii) dated 04.08.2016.
It was provided in this OM. that the revised pension/famiiy pension
wet. 112016 of pre-2016 pensioners/family pensioners shall be determined
by multiplying the pension/family pension as had been fixed at the time
of implementation of the recommendations of the 6th CPC, by 2.57.
3. In accordance with the decision mentioned in this Department’s Resolution No. 38/37/2016-P&PW (A) dated 04.08.2016 and
OM No. 38/37/2016-P&PW(A) (ii) dated 04.08.2016,
the feasibility of the first option recommended by 7th CPC has been
examined by a Committee headed by Secretary, Department of Pension
Pensioners’ Welfare.
4. The aforesaid Committee has submitted its Report and the
recommendations made by the Committee have been considered by the
Government. Accordingly, it has been decided that the revised
pension/family pension w.e.f 01.01.2016 in respect of all Central civil
pensioners/family pensioners, including CAPF’s, who retired/died
prior to 01.01.2016, may be revised by notionally fixing their pay in
the pay matrix recommended by the 7th CPC in the level corresponding to
the pay in the pay scale/pay band and grade pay at which they
retired/died. This will be done by notional pay fixation under each
intervening Pay Commission based on the Formula for revision of pay.
White fixing pay on notional basis, the pay fixation formulae approved
by the Government and other relevant instructions on the subject in
force at the relevant time shall be strictly followed. 50% of the
notional pay as on 01.01.2016 shall be the revised pension and 30% of
this notional pay shall be the revised family pension wet. 1.1.2016 as
per the first Permutation. In the case of family pensioners who were
entitled to family pension at enhanced rate, the revised family pension
shall be 50% of the notional pay as on 01.01.2016 and shall be payable
till the period up to which family pension at enhanced rate is
admissible as per rules. The amount of revised pension/family pension so
arrived at shall be
rounded off to next higher rupee.
5. It has also been decided that higher of the two Formulations is the
pension/family pension already revised in accordance with this
Department’s OM No. 38/37/2016-P&PW(A) (ii) dated 04.08.2016 or the
revised pension/family pension as worked out in accordance with para 4
above, shall be granted to pre-2016 central
civil pensioners as revised pension/family pension w.e.f. 01.01.2016. In
cases where pension/family pension being paid w.e.f. 1.1.2016 in
accordance with this Department’s OM No. 38/37/2016~P&PW(A) (ii)
dated 04.08.2016 happens to be more than pension/family pension as
worked out in accordance with para 4 above, the pension/family pension
already being paid shall be treated as revised pension/family pension
w.e.f. 1.1.2016.
6. Instructions were issued vide this Department’s OM No.
45/86/97-P&PW(A) (iii) dated 10.02.1998 for revision of pension!
family pension in respect of Government servants who retired or died
before 01.01.1986, by notional fixation of their pay in the scale of pay
introduced with effect from 01.01.1986. The notional pay so worked out
as on 01.01.1986 was treated as average emoluments/last pay for the
purpose of calculation of notional pension/family pension as on
01.01.1986. The notional pension/family pension so arrived at was
further revised with effect from 01.01.1996 and was paid in accordance
with the instructions issued for revision of pension/family pension of
pre-1996 pensioners/family pensioners in implementation of the
recommendations of the 5th Central Pay Commission.
7. Accordingly, for the purpose of calculation of notional pay w.e.f.
1.1.2016 of those Government servants who retired or died before
01.01.1986, the pay scale and the notional pay as on 1.1.1986, as
arrived at in terms of the instructions issued vide this Department’s OM
45/86/97~P&PW(A) dated 10.02.1998, will be treated as the pay scale
and the pay of the concerned Government servant as on 1.1.1986. in the
case of those Government servants who retired or died on or after
01.01.1986 but before 112016 the actual pay and the pay scale from which
they retired or died would be taken into consideration for the purpose
of calculation of the notional pay as on 1.1.2016 in accordance with
para 4 above.
8. 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°16 respectively of the highest pay in the Government (The highest
pay in the Government is Rs. 250,000 with
effect from 01.01.2016).
9. The pension/family pension as worked out in accordance with
provisions of Para 4 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.
10. The existing instructions regarding regulation of dearness relief to
employed/re-employed pensioners/family pensioners, as contained in
Department of Pension & Pensioners Welfare OM. No.
45/73/97-P&PW(G) dated 02.07.1999, as amended from time to time,
shall continue to apply.
11. These orders would not be applicable for the purpose of revision of
pension of those pensioners who were drawing compulsory retirement
pension under Rule 40 of the CCS (Pension) Rules or compassionate
allowance under Rule 41 of the CCS (Pension) Rules. The pensioners in
these categories would continue to be entitled to revised pension in
accordance with the instructions contained in this Department’s OM. No.
38/37/2016~P&PW(A)(ii) dated 4.8.2016.
12. The pension of the pensioners who are drawing monthly pension from
the Government on permanent absorption in public sector
undertakings/autonomous bodies will also be revised in accordance with
these orders. However, separate orders will be issued for revision of
pension of those pensioners who had earlier
drawn one time lump sum terminal benefits on absorption in public sector
undertakings, etc. and are drawing one-third restored pension as per
the instructions issued by this Department from time to time.
13. 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.
14. 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.
15. The quantum of age-related pension/family pension available to the
old pensioners/ family pensioners shall continue to be as follows-
| Age of pensioner/family pensioner
|
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 is Rs.10,000 pm, the pension
will be shown as (i) Basic pension = Rs.10,000 and (ii) Additional
pension = Rs.2,000 pm. The pension on his/her attaining the age of 85
years will be shown as (i).Basic Pension = Rs.10,000 and (ii) additional
pension = Rs.3,000 pm. Dearness relief will be admissible on the
additional pension available to the old pensioners also.
16. A few examples of calculation of pension/family pension in the manner prescribed above are given in Annexure-I to this OM.
17. No arrears on account of revision of Pension/Family pension on
notional fixation of pay will be admissible for the period prior to
1.1.2016. The arrears on account of revision of pension/family pension
in terms of these orders would be admissible with effect from
01.01.2016. For calculation of arrears becoming due on the revision of
pension/ family pension on the basis of this O.M., the arrears of
pension and the revised pension/family pension already paid on revision
of pension/family pension in accordance with the instructions contained
in this Department’s OM No. 38/37/2016-P&PW(A) (ii) dated 04.08.2016
shall be adjusted.
18. it shall be the responsibility of the Head of Department and Pay and
Accounts Office attached to that office from which the Government
servant had retired or was working last before his death to revise the
pension! family pension of Pre-2016 pensioners/family pensioners with
effect from 01.01.2016 in accordance with these orders and to issue a
revised pension payment authority. The Pension Sanctioning Authority
would impress upon the concerned Head of Office for fixation of pay on
notional basis at the earliest and issue revised authority at the
earliest. The revised authority will be issued under the existing PPO
number and would travel to the Pension Disbursing Authority through the
same channel through which the original PPO had travelled.
19. 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, 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 111973. 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. Separate orders will
be issued by the Ministry of Defence in regard to Armed Forces
pensioners/family pensioners.
20 These orders 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.
21 These orders issue with the concurrence of Ministry of Finance
(Department of Expenditure) vide their ID. No. 30~1l33(c)/2016-IC dated
11.05.2017 and ID. No.30-1133(c)/2016-IC dated 12.05.2017.
22. In their application to the persons belonging to the Indian Audit
and Accounts Department, these orders issue in consultation with the
Comptroller and Auditor General of India.
23. Ministry of Agriculture etc. are requested to bring the contents of
these orders to the notice of Heads of Department/Controller of
Accounts. Pay and Accounts Officers, and Attached and Subordinate
Offices under them on top priority basis. All Ministries/Departments are
requested to accord top priority to the work of revision of pension of
ore-2016 pensioners/family pensioners and issue the revised Pension
Payment Authority in respect of all ore-2016 pensioners,
24. Hindi version will follow.
(Harjit Singh)
Director
EXAMPLES
 |
| Click for larger image |
Click to view original circular
