RTI REPLY - INCLUSION OF X GP PAY IN BASIC PENSION OF VETERANS

Cabinet approves modifications in the 7th CPC recommendations on pay and pensionary benefits

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi approved important proposals relating to modifications in the 7th CPC (Central Pay Commission) recommendations on pay and pensionary benefits in the course of their implementation. Earlier, in June, 2016, the Cabinet had approved implementation of the recommendations with an additional financial outgo of Rs 84,933 crore for 2016-17 (including arrears for 2 months of 2015-16).

The benefit of the proposed modifications will be available with effect from 1st January, 2016, i.e., the date of implementation of 7th CPC recommendations. With the increase approved by the Cabinet, the annual pension bill alone of the Central Government is likely to be Rs.1,76,071 crore.  Some of the important decisions of the Cabinet are mentioned below:

1.        Revision of pension of pre – 2016 pensioners and family pensioners

The Cabinet approved modifications in the recommendations of the 7th CPC relating to the method of revision of pension of pre-2016 pensioners and family pensioners based on suggestions made by the Committee chaired by Secretary (Pensions) constituted with the approval of the Cabinet.  The modified formulation of pension revision approved by the Cabinet will entail an additional benefit to the pensioners and an additional expenditure of approximately Rs.5031 crore for 2016-17 over and above the expenditure already incurred in revision of pension as per the second formulation based on fitment factor.  It will benefit over 55 lakh pre-2016 civil and defence pensioners and family pensioners.

While approving the implementation of the 7th CPC recommendations on 29th June, 2016, the Cabinet had approved the changed method of pension revision recommended by the 7th CPC for pre-2016 pensioners, comprising of two alternative formulations, subject to the feasibility of the first formulation which was to be examined by the Committee.

In terms of the Cabinet decision, pensions of pre-2016 pensioners were revised as per the second formulation multiplying existing pension by a fitment factor of 2.57, though the pensioners were to be given the option of choosing the more beneficial of the two formulations as per the 7th CPC recommendations.

In order to provide the more beneficial option to the pensioners, Cabinet has accepted the recommendations of the Committee, which has suggested revision of pension based on information contained in the Pension Payment Order (PPO) issued to every pensioner.  The revised procedure of fixation of notional pay is more scientific, rational and implementable in all the cases.  The Committee reached its findings based on an analysis of hundreds of live pension cases.  The modified formulation will be beneficial to more pensioners than the first formulation recommended by the 7th CPC, which was not found to be feasible to implement on account of non-availability of records in a large number of cases and was also found to be prone to several anomalies. 

2.         Disability Pension for Defence Pensioners

The Cabinet also approved the retention of percentage-based regime of disability pension implemented post 6th CPC, which the 7th CPC had recommended to be replaced by a slab-based system.

           

The issue of disability pension was referred to the National Anomaly Committee by the Ministry of Defence on account of the representation received from the Defence Forces to retain the slab-based system, as it would have resulted in reduction in the amount of disability pension for existing pensioners and a reduction in the amount of disability pension for future retirees when compared to percentage-based disability pension. 

The decision which will benefit existing and future Defence pensioners would entail an additional expenditure of approximately Rs. 130 crore per annum.

SC RESERVED ORDERS IN BANK RETIREES CASE

Source:LIC PENSIONERS CHRONICLE

MSP INCLUDED IN THE LATER NOTINGS & THEY TRIED TO EXCLUDE BUT COULD NOT SUCCEED

-Page 11/N-

Ministry of Defence

D (Pay/Services)

Reference Defence (Finance) Note at Page-10/N. 

          This is regarding implementation of the recommendations of the 7^th Central Pay Commission (CPC). A copy of Department of Expenditure Note no. 1-2/2016-IC dated 28.6.2016 along with copy of the minutes of meeting of Cabinet held on 29.6.2016 has been received from Ministry of Finance, D/0 Expenditure, Implementation Cell for implementation of recommendations of the 7^th Central Pay Commission (CPC) – issue of Resolution and revised rules – reg. The previous Resolution issued by the Government at the time of 6^th CPC is at Flag/’A.’  The Ministry of Finance has issued the Resolution No. 1-2/2016-IC on 25.7.2016 (Copy at Flag/’B.’)

2.       Some of the important recommendations in respect of the Defence Personnel (PBOR) are mentioned below: -

          (i)      Implementation of the revised pay structure will be w.e.f 01.01.2016;

(ii)      Pay related matter;

(a)      The existing system of Pay Band and Grade Pay has been replaced with separate Pay Matrices for both Defence and Military Nursing Services personnel.

(b)             Fitment of each employee in the new Pay Matrix would be done by multiplying his/her basic pay on the date of implementation by a factor of 2.57.

Note-1        With regard to fixation of pay in the new Pay Matrix as on 01.01.2016, the existing pay (Pay in Pay Band plus Grade Pay) in the pre-revised structure as on 31.12.2015 shall be multiplied by a factor of 2.57. The figure so arrived at is to be located in the Level corresponding to employee’s Grade Pay in the new Pay Matrix. If a Cell identical with the figure so arrived at is available in the appropriate Level, that Cell shall be the revised pay; otherwise the next higher cell in that Level shall be the revised pay of the employee.

Note -2       After fixation of pay in the appropriate Level as specified in Note-1 above, the subsequent increments shall be at the immediate next Cell in that Level.

-Page 12/N-

®       General recommendations on pay recommended by the Commission have been accepted with the following exceptions in Defence Pay Matrix in order to maintain parity in pay with Central Armed Police Forces (CAPFs).

3.                  The index of Rationalisation of Level 13A (Brigadier) in Defence Pay Matrix may be revised upward from 2.57 to 2.67.

3.                  Additional 3 stages in Levels 12A (Lt Col), 3 stages in Level 13 (Colonel) and 2 stages in Level 13A (Brigadier) may be added appropriately in the Defence Pay Matrix.

iii.      Increase in Military Service Pay (MSP) of Personnel Below Officer Rank (PBOR) from Rs 2000/- to Rs 5200/- p.m. MSP would be counted only for Dearness Allowance (DA) and Pension purposes; 

iv.      There will be two dates for grant of increment viz, 1^st January and 1^st July of every year, instead of the existing date of 1^st July. However, an employee will be able to avail annual increment only on one of these two dates depending on the date of appointment, promotion or grant of financial upgradation;    

3.                  Recommendations on Allowances (except Dearness Allowance) would be referred to a Committee comprising Finance Secretary & Secretary (Expenditure) as Chairman and Secretaries of Home Affairs, Defence, Personnel & Training etc. The Committee would submit its report within a period of 4 months. Till a final decision on Allowances is taken based on the recommendations of this Committee, all Allowances would continue to be paid at existing rates in the existing pay structure, as if the pay had not been revised w.e.f. 1.1.2016 i.e. status quo would be maintained. 

                   vi.      Arrears of Pay would be paid during the current financial year.

vii.     Recommendations not relating to pay and allowances and other administrative issues specific to department/cadres/posts would be examined separately as per the Transaction of Business Rules/Allocation of Business Rules.

3.       It is further stated that after examining the minutes of meeting of Cabinet held on 29.6.2016, a draft Resolution was prepared in anticipation and submitted for approval. The proposal has been approved by AS ® vide Note -2/N. Subsequently, the file was sent to Defence (Finance) for their concurrence and vetting of the Draft Resolution vide Note 3/N. However, Defence (Finance) vide their Note on page 4/N returned the file stating that the Resolution needs to be authenticated before concurrence is given. Vide note on page 9/N the file was again sent to Defence (Finance) after authentication of Resolution for vetting of the draft Resolution in respect of Defence Personnel (PBOR). Now, Defence (Finance) has given its concurrence vide their Note (Note Page 9/N) dated 3.8.2016.

4.       In view of the above, the file is submitted for kind approval of Defence Secretary. Thereafter, the file will be referred to the Ministry of Finance, Department of Expenditure (Implementation Cell) for vetting the Resolution.

Sd/-----------

3/8/16

Section Officer (P/S)

US (P/S)  on leave

DS (AG-II) Def (Finance) have vetted draft resolution. The file is submitted for kind approval of Secretary (Defence) please.                  Sd/------------------ 4/8/16

JS (E)           Sd/---------- 4/8/16

                   (V Anandarajan) JS (Estt)/CAO 

AS (K)         Sd/------------- (Suresh Kumar) AS (K) & CVO 4.8.16

Defence Secretary           Appd           Sd/-------- 8/8/16

JS (E)           Sd/------------ 8/8/16

DS (AG-II) Sd/------------- 8/8/

US (P/S)     Sd/----------9/8/16

SO (P/S)     Sd/---------- 9/8

Ministry of Finance, Deptt of Expenditure (IC Cell)         Sd/-----------9/8/2016

THE FILE NOTINGS REVEWALS HOW MSP WAS DENIED EARLIER BUT RESTORED LATER

File Notings Resolution 2 (E)

File No. 1(7)/2016/D (Pay/Services)

-1-

Ministry of Defence

D (Pay/Services)

Subject: Resolution containing decisions of Government on recommendations of VII CPC relating to PBORs of Armed Forces

          A copy of Department of Expenditure No. No. 1-2/2016-IC dated 28.6.2016 along with a copy of the minutes of meeting of Cabinet held on 29.6.2016 has been received from Ministry of Finance, D/o Expenditure, Implementation Cell for implementation of recommendations of the 7^th Central Pay Commission (CPC) – issue of Resolution and revised rules-reg. The previous Resolution issued by the Government at the time of 6^th CPC is at Flag ‘A.’

2.       Some of the important recommendations in respect of the Personnel Below Officer Rank (PBOR) are mentioned below: -         

(i)      Implementation of the revised pay structure will be w.e.f 01.01.2016;

(ii)      Pay related matter;

          (a)      Minimum pay would be Rs 18, 000/- p.m.;

          (b)     The existing system of Pay Ban and Grade Pay has been replaced with three separate Pay Matrices for Civil, Defence and Military Nursing Services personnel.

(c)      Fitment of each employee in the new Pay Matrix would be done by     multiplying his/her basic pay on the date of implementation by a factor of 2.57.

(d)     The minimum Pay at each Level corresponding to successive Grade Pay, from PB-2 onwards has been enhanced by a variable Index of Rationalisation (IOR) )ranging from 2.57.to 2.81 depending upon the increasing role, responsibility, and accountability. 

(e)      General recommendations on pay recommended by the Commission have been accepted without any material alteration.

iii.      Increase in Military Service Pay (MSP) of Personnel Below Officer Rank (PBOR) from Rs 2000/- to Rs 5200/- p.m would be counted only for Dearness Allowance

iv.      Rate of increment would be 3%. There will be two dates for grant of increment viz. 1^st January and 1^st July of every year, instead of existing date of 1^st July. However, an employee will be able to avail annual increment only on one of these two dates depending on the date of appointment, promotion, or grant of financial upgradation.

v.       Recommendations on Allowances (except Dearness Allowance) would be referred to a committee comprising of Finance Secretary & Secretary (Expenditure) as Chairman and Secretaries of Home Affairs, Defence, Personnel and Training etc. Till a final decision on Allowances is  taken based on the recommendations of this Committee, all Allowances would continue to be paid at existing rates in existing pay structure, as if the pay had not been revised w.e.f 1.1.2016 i.e., status quo would be maintained.

vi.      Arrears of Pay and Pensionary benefits would be paid during the current financial year.

vii.     Recommendations not relating to pay, pension and allowances and other administrative issues specific to department/cadres/posts would be examined by the concerned Ministries/Departments as per the Transaction Rules/Allocation of Business Rules.   

3.       We have not yet received the requisite resolution from Ministry of Finance regarding civilian personnel. The resolution to be issued by the MoD in respect of the Defence Personnel (Personnel Below Officer Rank) has been prepared in anticipation and placed opposite for consideration.

Sd/------------------

                                                                                      (Laxmi Balasubramanian)

SO D (Pay/Services)

15/7/16

US (P/S)                                  Sd/----------- 15.7.17

DS (AG-II)                              Sd/----------- 18/7

JS (E)                                       Sd/----------- (Ashok Dongre) 18.7.16

AS (R)                                      As proposed. 

JS (E)                                       Sd/---------- (Ashok Dongre) 20.7.16

DS (AG-II)                              Sd/-----------

US (P/S)                                  SD/------------

SO D(P/S)

SOURCE-ARIEL VIEW

ONE MORE CLARIFICATION OF LAST RANK HELD & RANK PENSIONED