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 7^th 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 5^th CPC scales from S 4 to S 29 (except S 6) grouped in 4 PBs after 6^th CPC. These have been assigned Levels 1 to 14 in the matrix table by 7^th 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 6^th 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 6^th 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 7^th 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 5^th CPC, and for 32 months at the time of implementation of 6^th CPC.  However, this time, 7^th 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.

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AKT/VBA/NT/SK