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7th Pay Commission Pre-2016 OM – Revision of pension of Pre-2016 Pensioners/family Pensioners etc.

Pre-2016 Pensioners & Family Pensioners – 7th Pay Commission OM

F .No.38/37/2016-P&PW(A) (ii)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners’ Welfare
Lok Nayak Bhawan, New Delhi-110003

Dated the 4th August, 2016.


Sub: Implementation of Government’s decisions 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 in pursuance of Government’s decision on the recommendations of Seventh Central Pay Commission, sanction of the President is hereby accorded to the regulation, with effect from 01.01.2016, of pension/ family pension of all the pre-2016 pensioners/ family pensioners in the manner indicated in the succeeding paragraphs. Separate orders are being issued in respect of employees who retired/died on or after 01.01.2016.

2.1 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, Central Civil Services (Extraordinary Pension) Rules 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 1.1.1973. 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.
2.2 Separate orders will be issued by the Ministry of Defence in regard to Armed Forces pensioners/family pensioners.
2.3 These orders also 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.
3. In these orders
3. ‘Existing pensioner’ or ‘Existing Family pensioner’ means a pensioner/family pensioner to whom these orders are applicable in terms of para 2.1 above.
b. ‘Existing pension’ or ‘Existing Family Pension means the basic pension (inclusive of commuted portion, if any) or basic family pension, as had been fixed at the time of implementation of 6th CPC recommendations, which an existing pensioner or family pensioner was entitled to.
4.1 For existing pensioners, who have retired before 01.01.2016, the revised pension/family pension with effect from 01.01.2016 shall be determined by multiplying the pension/family pension, as had been fixed at the time of implementation of 6th Central Pay Commission (CPC) recommendations, by 2.57. The amount of revised pension/family pension so arrived at shall be rounded off to next higher rupee.

Case I
Pensioner ‘A’ retired at last pay drawn of Rs. 79,000 on 31st May, 2015 under
the 6th CPC regime in the scale of Rs. 67000-79000:

    Amount in Rs.
1. Basic Pension fixed in 6th CPC 39500
2. Revised Pension fixed under 7tnCPC (using a multiple of

Case II

Pensioner ‘B’ retired at last pay drawn of Rs. 4,000 on 31st January, 1989 under
the 4th CPC regime in the pay scale of Rs. 3000-100-3500-125-4500:

    Amount in Rs.
1. Basic Pension fixed in 4 CPC 1940
2. Basic Pension as revised in 6 CPC 12600
3. Revised Pension fixed under 7 CPC  (using a
multiple of 2.57)
4.2 For this purpose, the existing pension/family pension will be the basic pension/family pension only without the element of additional pension available to the old pensioners/family pensioners of the age of 80 years and above. The additional pension/family pension payable to the old pensioners/family pensioners will be worked out in accordance with para 4.5 of this OM.
4.3 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.
4.4 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% respectively of the highest pay in the Government (The highest pay in the Government is Rs. 2,50,000 with effect from 01.01.2016).
4.5 The quantum of pension/family pension available to the old pensioners/ family pensioners shall continue to be as follows:-
Age of pensioner/family pensioner
Additional quantum of pension
From 80 years to less than 85 years 20% of revised basic pension/ family
From 85 years to less than 90 years 30% of revised basic pension /family
From 90 years to less than 95 years 40% of revised basic pension /family
From 95 years to less than 100 years 50% of revised basic pension /family
100 years or more 100% of revised basic pension /family
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 in terms para 4.1 above 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.
4.6 The revised pension/family pension arrived at as per paragraph 4.1 includes dearness relief sanctioned from 1.1.2016.
5. Where the revised pension/family pension in terms of paragraph 4.1 above works out to an amount less than Rs. 9000/-, the same shall be stepped up to Rs. 9000/-. This will be regarded as pension/family pension with effect from 1.1.2016.
6. 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.
7. The cases of Central Government employees who have been permanently absorbed in public sector undertakings/autonomous bodies will be regulated as follows:-
Where the Government servants on permanent absorption in public sector undertakings/autonomous bodies continue to draw pension separately from the Government, the pension of such absorbees will be updated in terms of these orders. In cases where the Government servants have drawn one time lump sum terminal benefits equal to 100% of their pensions and have become entitled to the restoration of one-third commuted portion of pension as per the instructions issued by this Department from time to time, their cases will not be covered by these orders. Orders for regulating pension of such pensioners will be issued separately.
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.
8. The matter regarding Constant Attendant Allowance admissible to the existing pensioners shall 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 paid at existing rates.
9. All Pension Disbursing Authorities including Public Sector Banks handling disbursement of pension to the Central Government pensioners are hereby authorised to pay pension/family pension to existing pensioners/family pensioners at the revised rates in terms of para 4.1 and 5 above without any further authorisation from the concerned Accounts Officers/Head of Office etc. Wherever the age of pensioner/ family pensioner is available on the pension payment order, the additional pension/ family pension in terms of para 4.4. above may also be paid by the pension disbursing authorities immediately without any further authorisation from the concerned Account Officer/ Head of Office, etc. A suitable entry regarding the revised pension shall be recorded by the pension Disbursing Authorities in both halves of the Pension Payment Order.
10 The pension/family pension as worked out in accordance with provisions of Para 4.1. 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.
11. Further orders in regard to revision of pension based on the recommendations of the Committee to be constituted in terms of the Government’s decision on Item No. 11 of this Department’s Resolution No. 38/37/2016-P&PW (A) dated 4th August, 2016, will be issued in due course.
12. After a decision as in para 11 above is taken by the Government and orders are issued in this regard, the Head of the Department of the Ministry, Department, Office, etc. from which the government servant had retired or where he was working prior to his demise will revise the pension/family pension of all pensioners/ family pensioners with effect from 1st January 2016 in accordance with those orders and issue revised Pension Payment Order (PPOs) accordingly.
13. It is considered desirable that the benefit of these orders should reach the pensioners as expeditiously as possible. To achieve this objective it is desired that all Pension Disbursing Authorities should ensure that the revised pension and the arrears due to the pensioners in terms of para 4.1. and para 5 above is paid to the pensioners or credited to their account by 31St August, 2016 or before positively.
14. In their application to the persons belonging to Indian Audit and Accounts Department, these orders issue in consultation with the Comptroller and Auditor General of India.
15. Ministry of Agriculture etc. are requested to bring the contents of these Orders to the notice of Controller of Accounts/Pay and Accounts Officers and Attached and subordinate Offices under them on a top priority basis. All pension disbursing offices are also advised to prominently display these orders on their notice boards for the benefit of pensioners.
16. Hindi version will follow.
(Vandana Sharma)
Joint Secretary to the Government of India

View/Download the Original OM From Pensioners Portal


  • R.BALASUBRAMANIAN 3 years ago

    Respected Sir, The above revisions of pension, Is applicable to EPS 95 Pensioners, who retired in the year 1999?

  • Anonymous 8 years ago

    Implementation of option 1 for pre 2016 retiree pensioners/family pensioners is long over due.Following the precedences of implementations in similar situations under 5 and 6 CPC recommendations the issue of option 1 under 7 CPC can be sorted out as already suggested by a Govt Dept side.

  • Instead of multiplying the existing pension or family pension under 6th cpc as on 31-12-2015 by the multiplication factor of 2.57,50% of the pay fixed in the pay matrix as is fixed to the working employees should be given as revised pension as it is more beneficial to the pre-2016 pensioners.For example in my case I am drawing a pension of Rs.14012/- as on 31-12-2015.If it is multiplied by 2.57 I get 36,011 where as 50% of the pay will be 36,600/- I was in the pay band of 15600-39000 with grade pay of Rs5400/- The benefit is arriving due to the fact of fixing pay in the immediate next cell if equal cell is not available in the pay matrix after multiplying the existing pay with 2.57.

  • Recently, when Doctors services was extended for 5 years, the orders are effective from 31st May 2016. Why 31st was taken as a criteria is those who are having date of birth 01/06/2016, they will retire on 31/5/2016 similarly those are having date of birth from 2nd to 31st of May also will retire on 31/5/2016, to protect and extend natural justice, Government issued notification wef 31st May, 2016 for extending 5 years service to Doctors.

    Similarly, in a same principle, Central Pay Commission Recommendations are also shall be applied wef 31st Dec.2015, so that the employees who served in the Government, their legitimate and genuine issue could have protected. Why because, he served all the ten years till 31st Dec. 2015. By virtue of having date of birth 01/01/1956, he was forced to retire on 31st Dec.2015 with out a single paisa benefit in retirement benefits i.e. revision of Gratuity, commutation value of pension and leave en cashment due to affect 7th CPC. (Employees who are having date of birth 2nd Dec. to 31st Dec. are also retire on 31st Dec.2015.

    Employees who retired from 2nd Jan. 2016 on wards, having lower pay scales / similar pay scales are also will draw huge amount as retirement benefits like gratuity, commutation value of pension, en cashment of leave.

    Hence, requested, Government / public authorities concerned shall consider this matter, 7th CPC shall be made applicable from 31st Dec. 2015 to meet the natural justice.

    JVSR Krishna
    [email protected]