Thursday, June 30, 2016

7th CPC and beyond



7 th CPC & beyond
Both the options recommended by the 7th Commission as regards pension revision vide their para 10.1.67 have been accepted subject to feasibility of their implementation. Option 2 is to be implemented immediately.

In case option one is finally accepted for which ‘Bharat Pensioners Samaj’ is fighting tooth & nail, the pensioner will have the option to choose whichever is more beneficial to him/her

The objection of DOPW &MOD against option 1 is that records may not be available to implement. It is a very poor & illogical argument to deprive pensioners of their legitimate right. Service record of an employee is permanent in nature & cannot be destroyed without specific permission under
specific circumstances. In case for any reason if anyone’s service record is missing it can always be reconstructed with the help of PPO, various other records with the departments & with the employee/pensioner. In 100% cases PPOs are available, in 95% cases all other records too are available. Pensioners too are having authentic records required for the purpose.

OPTION 1- Pension of Pre 2016 Pensioners w.e.f. 01.01.2016 (Based on the 7th CPC Report Chapter 10.1 and Pay Matrix for Civilian Employees conditionally accepted by the Govt.
PB
GP
Min Pensn in
VI CPC
Level of VII CPC
Age
Option 1 Rev Min Pens with 2.57 Multiple
Option 2 - Revised Pension with Increments @ 3% PA for Number of INCREMENTS EARNED  WHILE IN SERVICE
Number of  INCREMENTS EARNED in that level WHILE IN SERVICE
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
1

1800
3665
1
Up to 80
9419
9000
9250
9550
9850
10150
10450
10750
11050
11400
11750
12100
12450
12800
13200
13600
14000

80-85
11303
10800
11100
11460
11820
12180
12540
12900
13260
13680
14100
14520
14940
15360
15840
16320
16800

85-90
12245
11700
12025
12415
12805
13195
13585
13975
14365
14820
15275
15730
16185
16640
17160
17680
18200
1

1900
3890
2
Up to 80
9997
9950
10250
10550
10850
11200
11550
11900
12250
12600
13000
13400
13800
14200
14650
15100
15550

80-85
11997
11940
12300
12660
13020
13440
13860
14280
14700
15120
15600
16080
16560
17040
17580
18120
18660

85-90
12996
12935
12935
12935
12935
12935
12935
12935
12935
12935
12935
12935
12935
12935
12935
12935
12935
1

2400
4920
4
up to 80
12644
12750
13150
13550
13950
14350
14750
15250
15700
16150
16650
17150
17650
18200
18750
19300
19900

80-85
15173
15300
15780
16260
16740
17220
17700
18300
18840
19380
19980
20580
21180
21840
22500
23160
23880

85-90
16438
16575
17095
17615
18135
18655
19175
19825
20410
20995
21645
22295
22945
23660
24375
25090
25870
1

2800
5585
5
up to 80
14353
14600
15050
15500
15950
16450
16950
17450
17950
18500
19050
19600
20200
20800
21400
22050
22700

80-85
17224
17520
18060
18600
19140
19740
20340
20940
21540
22200
22860
23520
24240
24960
25680
26460
27240

85-90
18659
18980
19565
20150
20735
21385
22035
22685
23335
24050
24765
25480
26260
27040
27820
28665
29510
2

4200
6750
6
up to 80
17348
17700
18250
18800
19350
19950
20550
21150
21800
22450
23100
23800
24500
25250
26000
26800
27600

80-85
20817
21240
21900
22560
23220
23940
24660
25380
26160
26940
27720
28560
29400
30300
31200
32160
33120

85-90
22552
23010
23725
24440
25155
25935
26715
27495
28340
29185
30030
30940
31850
32825
33800
34840
35880
2

4600
9230
7
up to 80
23721
22450
23100
23800
24500
25250
26000
26800
27600
28450
29300
30200
31100
32050
33000
34000
35000

80-85
27062
26940
27720
28560
29400
30300
31200
32160
33120
34140
35160
36240
37320
38460
39600
40800
42000

85-90
30837
29185
30030
30940
31850
32825
33800
34840
35880
36985
38090
39260
40430
41665
42900
44200
45500
2

4800
9375
8
up to 80
24094
23800
24500
25250
26000
26800
27600
28450
29300
30200
31100
32050
33000
34000
35000
36050
37150


80-85
27005
28560
29400
30300
31200
32160
33120
34140
35160
36240
37320
38460
39600
40800
42000
43260
44580


85-90
31322
30940
31850
32825
33800
34840
35880
36985
38090
39260
40430
41665
42900
44200
45500
46865
48295
2

5400
10140
9
up to 80
26060
26550
27350
28150
29000
29850
30750
31650
32600
33600
34600
35650
36700
37800
38950
40100
41300

80-85
31272
31860
32820
33780
34800
35820
36900
37980
39120
40320
41520
42780
44040
45360
46740
48120
49560

85-90
33878
34515
35555
36595
37700
38805
39975
41145
42380
43680
44980
46345
47710
49140
50635
52130
53690
3

5400
(JS)
11070
10
up to 80
26985
28050
28900
29750
30650
31550
32500
33500
34500
35550
36600
37700
38850
40000
41200
42450
43700

80-85
32382
33660
34680
35700
36780
37860
39000
40200
41400
42660
43920
45240
46620
48000
49440
50940
52440

85-90
35081
36465
37570
38675
39845
41015
42250
43550
44850
46215
47580
49010
50505
52000
53560
55185
56810
3

6600
(SS)

12600
11
up to 80
32382
33850
34850
35900
37000
38100
39250
40450
41650
42900
44200
45550
46900
48300
49750
51250
52800

80-85
38858
40620
41820
43080
44400
45720
47100
48540
49980
51480
53040
54660
56280
57960
59700
61500
63360

85-90
42097
44005
45305
46670
48100
49530
51025
52585
54145
55770
57460
59215
60970
62790
64675
66625
68640
3

7600
(JAG)
14960
12
up to 80
38450
39400
40600
41800
43050
44350
45700
47050
48450
49900
51400
52950
54550
56200
57900
59650
61450

80-85
46140
47280
48720
50160
51660
53220
54840
56460
58140
59880
61680
63540
65460
67440
69480
71580
73740

85-90
49980
51220
52780
54340
55965
57655
59410
61165
62985
64870
66820
68835
70915
73060
75270
77545
79885
4
8700
(SG)
23050
13
up to 80
59239
59250
61050
62900
64800
66750
68750
70800
72900
75100
77350
79650
82050
84500
87050
89650
92350

80-85
71086
71100
73260
75480
77760
80100
82500
84960
87480
90120
92820
95580
98460
101400
104460
107580
110820

85-90
77010
77025
79365
81770
84240
86775
89375
92040
94770
97630
100555
103545
106665
109850
113165
116545
120055
4
8900
24295
13A
up to 80
62438
65550
67500
69550
71650
73800
76000
78300
80650
83050
85550
88100
90750
93450
96250
99150
102100

80-85
74926
78660
81000
83460
85980
88560
91200
93960
96780
99660
102660
105720
108900
112140
115500
118980
122520

85-90
81170
85215
87750
90415
93145
95940
98800
101790
104845
107965
111215
114530
117975
121485
125125
128895
132730
4
10000
(SAG)
27350
14
up to 80
70290
72100
74250
76500
78800
81150
83600
86100
88700
91350
94100
96900
99800
102800
105900
109100

80-85
84347
86520
89100
91800
94560
97380
100320
103320
106440
109620
112920
116280
119760
123360
127080
130920

85-90
91376
93730
96525
99450
102440
105495
108680
111930
115310
118755
122330
125970
129740
133640
137670
141830

NOTE: Based on the recommendations of 7th CPC vide Para 10.1.67 of its Report, an ALL-IN ONE table for pension has been prepared from where the likely pension can be determined easily.
·          The table covers all the 5th CPC scales from S 4 to S 29 (except S 6) grouped in 4 PBs after 6th CPC. These have been assigned Levels 1 to 14 in the matrix table by 7th CPC.
·          The table also gives  pension for pensioners falling in 3 age groups i.e. upto 80 years and with additional pension @ 20% and 30% after the age of 80 and 85 respectively.
·          Since the pension as per option 2 may take time, the pension as per option 1 (with a factor of 2.57) may be paid in the first instance as an interim measure.
·          Pension as per option-1 is to be calculated on the basis of pension as fixed after 6th CPC. This being different for pensioners retiring from the same scale, the figures in the table under option -1 are according to the minimum revised basic pension as per DOP OM dated 30-7-2015. The Pension is to be finally fixed at the higher of the two Options.
·                      In some levels like levels 6, 10, 11, 12, 13 and 14, there is no common min revised pension as per 6th CPC (differing with each scale though GP is same). The table can accommodate only one figure.  Therefore, in such cases lowest of the figure has been taken as representative of the respective level.
Compiled by  N.P . MOHAN C.E (Retd.) Railways ,Life member BPS &President RSCWS  (An affiliate of BPS)

                                                                                               Option 2
Revised basic pension of as on 01.01.2016 = Existing basic pension as on 01.01.2016 X 2.57 = Revised basic pension +Nil DR as on 01.01.2016
Option 2 is to be implemented immediately
In case option one is finally accepted for which BPS is fighting tooth & nail the pensioner will have the option to choose whichever is more beneficial to him/her
 Sd/
S.C.Maheshwari
Secy General Bharat Pensioners Samaj

Cabinet approves Implementation of the recommendations of 7th Central Pay Commission

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the implementation of the recommendations of 7th Central Pay Commission (CPC) on pay and pensionary benefits.   It will come into effect from 01.01.2016.

In the past, the employees had to wait for 19 months for the implementation of the Commission’s recommendations at the time of 5th CPC, and for 32 months at the time of implementation of 6th CPC.  However, this time, 7th CPC recommendations are being implemented within 6 months from the due date.

The Cabinet has also decided that arrears of pay and pensionary benefits will be paid during the current financial year (2016-17) itself, unlike in the past when parts of arrears were paid in the next financial year. 

The recommendations will benefit over 1 crore employees. This includes over 47 lakh central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.

Highlights:

1.            The present system of Pay Bands and Grade Pay has been dispensed with and a new Pay Matrix as recommended by the Commission has been approved. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the Pay Matrix. Separate Pay Matrices have been drawn up for Civilians, Defence Personnel and for Military Nursing Service. The principle and rationale behind these matrices are the same.

2.            All existing levels have been subsumed in the new structure; no new levels have been introduced nor has any level been dispensed with. Index of Rationalisation has been approved for arriving at minimum pay in each Level of the Pay Matrix depending upon the increasing role, responsibility and accountability at each step in the hierarchy.

3.            The minimum pay has been increased from Rs.  7000 to 18000 p.m.  Starting salary of a newly recruited employee at lowest level will now be Rs.  18000 whereas for a freshly recruited Class I officer, it will be Rs.  56100.  This reflects a compression ratio of 1:3.12 signifying that pay of a Class I officer on direct recruitment will be three times the pay of an entrant at lowest level.

4.            For the purpose of revision of pay and pension, a fitment factor of 2.57 will be applied across all Levels in the Pay Matrices.


5.            Rate of increment has been retained at 3 %. This will benefit the employees in future on account of higher basic pay as the annual increments that they earn in future will be 2.57 times than at present.

6.            The Cabinet approved further improvements in the Defence Pay Matrix by enhancing Index of Rationalisation for Level 13A (Brigadier) and providing for additional stages in Level 12A (Lieutenant Colonel), 13 (Colonel) and 13A (Brigadier) in order to bring parity with Combined Armed Police Forces (CAPF) counterparts at the maximum of the respective Levels.

7.            Some other decisions impacting the employees including Defence & Combined Armed Police Forces (CAPF) personnel include :

·               Gratuity ceiling enhanced from Rs.  10 to 20 lakh. The ceiling on gratuity will increase by 25 % whenever DA rises by 50 %.
·               A common regime for payment of Ex-gratia lump sum compensation for civil and defence forces personnel payable to Next of Kin with the existing rates enhanced from Rs. 10-20 lakh to 25-45 lakh for different categories.
·               Rates of Military Service Pay revised from Rs.  1000, 2000, 4200 & 6000 to 3600, 5200, 10800 & 15500 respectively for various categories of Defence Forces personnel.
·               Terminal gratuity equivalent of 10.5 months of reckonable emoluments for Short Service Commissioned Officers who will be allowed to exit Armed Forces any time between 7 and 10 years of service.
·               Hospital Leave, Special Disability Leave and Sick Leave subsumed into a composite new Leave named ‘Work Related Illness and Injury Leave’ (WRIIL). Full pay and allowances will be granted to all employees during the entire period of hospitalization on account of WRIIL.

8.            The Cabinet also approved the recommendation of the Commission to enhance the ceiling of House Building Advance from Rs.  7.50 lakh to 25 lakh. In order to ensure that no hardship is caused to employees, four interest free advances namely Advances for Medical Treatment, TA on tour/transfer, TA for family of deceased employees and LTC have been retained. All other interest free advances have been abolished.

9.            The Cabinet also decided not to accept the steep hike in monthly contribution towards Central Government Employees Group Insurance Scheme (CGEGIS) recommended by the Commission. The existing rates of monthly contribution will continue. This will increase the take home salary of employees at lower levels by Rs. 1470. However, considering the need for social security of employees, the Cabinet has asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.

10.        The general recommendations of the Commission on pension and related benefits have been approved by the Cabinet. Both the options recommended by the Commission as regards pension revision have been accepted subject to feasibility of their implementation. Revision of pension using the second option based on fitment factor of 2.57 shall be implemented immediately. A Committee is being constituted to address the implementation issues anticipated in the first formulation. The first formulation may be made applicable if its implementation is found feasible after examination by proposed Committee which is to submit its Report within 4 months.

11.        The Commission examined a total of 196 existing Allowances and, by way of rationalization, recommended abolition of 51 Allowances and subsuming of 37 Allowances. Given the significant changes in the existing provisions for Allowances which may have wide ranging implications, the Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances.  The Committee will complete its work in a time bound manner and submit its reports within a period of 4 months. Till a final decision, all existing Allowances will continue to be paid at the existing rates.

12.        The Cabinet also decided to constitute two separate Committees (i) to suggest measures for streamlining the implementation of National Pension System (NPS) and (ii) to look into anomalies likely to arise out of implementation of the Commission’s Report.

13.        Apart from the pay, pension and other recommendations approved by the Cabinet, it was decided that the concerned Ministries may examine the issues that are administrative in nature, individual post/ cadre specific and issues in which the Commission has not been able to arrive at a consensus.

14.        As estimated by the 7th CPC, the additional financial impact on account of implementation of all its recommendations in 2016-17 will be Rs. 1,02,100 crore. There will be an additional implication of Rs. 12,133 crore on account of payments of arrears of pay and pension for two months of 2015-16.



***
AKT/VBA/NT/SK

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