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7th Central Pay Commission for Pensioners – Resolutions regarding Govt Decision on 7th CPC Recommendations

7th Central Pay Commission for Pensioners – Resolutions regarding Govt Decision on 7th CPC Recommendations
(Department of Pension and Pensioners’ Welfare)


New Delhi, the 4th August, 2016
No.38/37/2016-P&PW (A) – The Terms of Reference of the Seventh Central Pay Commission as contained in Ministry of Finance (Department of Expenditure) Resolution No.1/1/2013-E.Ill (A) dated 28.2.2014 included the following:

“To examine the principles which should govern the structure of pension and other retirement benefits, including revision of pension in the case of employees who have retired prior to the date of effect of these recommendations, keeping in view that retirement benefits of all Central Government employees appointed on and after 01.01.2004 are covered by the New Pension Scheme (NPS).”
2. The Commission, on 19th November, 2015, submitted its report to the Government on Terms of Reference as contained in aforementioned Resolution dated 28.02.2014. Government, after consideration, has decided to accept the recommendations of the Commission on pensionary benefits to the Central Government civil employees, including employees of the Union Territories and Members of All India Services subject to certain modifications, as specified hereinafter.
3. Detailed recommendations of the Commission relating to pensionary benefits and the decisions taken thereon by the Government are listed in the statement annexed to this Resolution.
4. The revised provisions regarding pensionary benefits, which have been accepted as indicated in the Annexure, will be effective from 01.01.2016.
(Vandana Sharma)
Joint Secretary to the Govt. of India

Statement showing the recommendations of the Seventh Central Pay Commission relating to principles which should govern the structure of pension and other terminal benefits and the decisions of the Government thereon.

Item No. Recommendation Decision of Government
1. Fixed Medical

The Commission notes that this allowance was enhanced from Rs.300/- pm.
to Rs.500/- pm. from 19.11.2014. As such, further enhancement of this
allowance is not recommended.

(Para 8.17.52 of the Report)

To be examined by a
Committee comprising Finance Secretary and Secretary (Expenditure) as
Chairman and Secretaries of Home Affairs, Defence, Posts, Health &
Family Welfare, Personnel & Training and Chairman, Railway Board as
Members. Till a final decision is taken based on the recommendations of
the Committee, Fixed Medical Allowance shall be paid at existing rates.
2. Constant Attendance

The allowance may be increased by a factor of 1.5 i.e. to Rs. 675ol- per
month. The allowance needs further increase by 25% each time DA rises by

(Para 8.17.29 of the Report)

To be examined by a 
Committee comprising Finance Secretary and Secretary (Expenditure) as
Chairman and Secretaries of Home Affairs, Defence, Posts, Health &
Family Welfare, Personnel & Training and Chairman, Railway Board as
Members. Till a final decision is taken based on the recommendations of
the Committee, Constant Attendant Allowance shall be aid at existing
3. General Provident

Status quo may be maintained in this respect.

(Para 9.4.4 of the Report)

4. Rates of Pension &
Family Pension

The Commission does not recommend any further increase in the rate of
Pension and Family Pension from the existing levels.

Para 10.1.25 of the Report

5. Quantum of Minimum

The recommendations of the Commission in relation to pay of a personnel
will lead to a significant increase in the minimum from the existing
Rs.7,000 per month to Rs.18,000 per month. This, based on computation of
pension, will raise minimum pension from the existing Rs.3500 to
Rs.9,000. The minimum pension based on the recommendations of the
Commission will increase by 2.57 times over the existing level.
(Para 10.1.27 of the Report)
6. Rate of Additional
Pension and Family Pension to the older pensioners.

The Commission is of the view that the existing rates of additional
pension and additional family pension are appropriate.

(Para 10.1.30 of the Report)

7. Time Period for
enhanced family pension.

The Commission notes that the recommendation with regard to period of
eligibility of the enhanced family pension of 10 years in case of death
of a serving employee was made based on the recommendations of Vlth CPC
Report. No further change is being recommended by the Commission.

(Para 10.1.33 of the Report)

8. Gratuity ceiling and
its indexation.

The Commission recommends enhancement in the ceiling of gratuity from
the existing Rs.10 lakh to R320 lakh from 01.01.2016. The Commission
further recommends the ceiling on gratuity may increase by 25% whenever
DA rises by 50%.
(Para 10.1.37 of the Report)

9.  Rationalization
of death gratuity

The Commission, after examination of the matter, recommends the
following rates for payment of death gratuity

Length of Service Rate of Death Gratuity
Less than One year 2 times of monthly emoluments
One year or more but less than 5
6 times of monthly emoluments
5 years or more but less than 11
12 times of monthly emoluments
11 years or more but less than 20
20 times of monthly emoluments
20 years or more 20 years or more Half month of
emoluments for every completed six monthly period of qualifying
service subject to a maximum of 33 times of emoluments.

Para 10.1.41 of the Report)

10. Commutation of
Pension and restoration of commuted pension

The Commission does not recommend any change either in the maximum
percentage of commutation or in the period of restoration.
(Para 10.1.43 of the Report)
11 Revision of Pension of
pre 7 CPC retirees

The Commission recommends the following pension formulation for civil
employees including CAPF personnel who have retired before 01.01.2016

(i) All the Civilian personnel including CAPF 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
she had earned in that level while in service, at the rate of three
percent. 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 may be given the option of choosing whichever
formulation is beneficial to them.

It is recognized that the fixation of pension as per formulation in (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 revised pension may be calculated as at (ii) above and the same may,
be paid as an interim measure. In the event calculation as per (i) above
yields a higher amount the difference may be paid subsequently.

(Para 10.1.67 and Para 10.1.68 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
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),
Department of Posts, Additional Secretary Financial Adviser, Ministry of
Home Affairs and Controller General of Accounts as Members
12 Ex-gratia Lumpsum
The commission recommends a Common regime for payment of ex-gratia
lump-sum compensation for civil and defence forces personnel, payable to
the next of Kin at the following rates:

Circumstances Existing Proposed
Death occurring due to accidents in course
of performance of duties
10 lakh 25 lakh
Death in the course of performance of duties
attributed to acts of violence by terrorists, anti social
elements etc.
10 lakh 25 lakh
Death occurring in border skirmishes and
action against militants, terrorists, extremists, sea pirates
15 lakh 25 lakh
Death occurring while on duty in the
specified high altitude, unaccessible border posts, on account
of natural disasters, extreme weather conditions
15 lakh 25 lakh
Death occurring during enemy action in war
or such war like engagements, which are specifically notified by
Ministry of Defence and death occurring during evacuation of
Indian Nationals from a war-torn zone in foreign country
20 lakh 25 lakh

(Para 10.2.77)


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  • G.Rajamanickam 8 years ago

    The VIIth Pay Commission after taking into account all the aspects and also after in depth study ofthe whole issue recommended partity of pension between pre-2016 retirees and post 2016 retirees. Denying to accept the recommendation is denying justice to the pensioners. Since new pension came into force from 1.1.2004, there may not much pensioners and therefore expenditure on account of revision of pension based on this recommendation will also be not much. So, Government should definitely implement this recommendation,

  • Regarding option I, i.e, Parity between old and new pensioners, has been accepted,subject to feasibility of implementation. Unfortunately the committee constituted to examine this, as to the feasibility is chaired by the Secretary to Govt in the Dept of Pensions. In which case the pensioners may not get a fair opinion in this case. That Secretary was reported to have spoken against giving parity between old and new pensioners while he was in the Empowered Committee of 13 secretaries. So he is already made up his mind to deny benefits to the pensioners. So the Pensioners Welfare Associations should approach the Prime Minister Modi only to get justice in this case.