7th CPC Notional Fixation – Revision of Pension for Pre-2016 Armed Forces Commissioned officers / family Pensioners

7th CPC Notional Fixation – Revision of Pension for Pre-2016 Armed Forces Commissioned officers / family Pensioners: PCDA Order dated 29.09.2017

No. G-1/M/01/ICO’s/7th CPC/Vol. II/2017
Date: 29.09.2017
The PCDA (O)
Golibar Maidan
Pune- 411001

Subject: – Implementation of Government’s decision on the recommendations of the 7th Central Pay Commission – Revision of Pension in respect of Pre- 01.01.2016 Armed Forces Commissioned officers & their eligible families Pensioners.

Reference: – (1) GoI, MoD letter No. 17(01)/2016-D(Pension/Policy) dated 29.10.2016 (Circulated vide this office Circular No. 570 dated 31.10.2016 available on this office website of this office www.pcdapension.nic.in)
(2) MoD letter No.17(01)/2017/(02)/D(Pension/Policy) dated:05.09.2017.
Attention is invited towards the GoI, MoD letter No. 17(01)/2016-D (Pen/ Pol) dated 29th October 2016 regardign revision of pension in respect of pre- 01.01.2016 pensioner/family pensioner under fitment formula. It has been provided in the ibid Govt. letter that the revised pension/family pension w.e.f. 01.01.2016 of pre-2016 pensioners/family pensioners shall be determined by multiplying the Basic Pension (before commutation)/ Basic Family Pension (exclusive of Dearness Relief) as had been drawn as on 31.12.2015 by 2.57 to arrive at revised pension under 7th CPC.
2.The copy of GoI, MoD letter No. 17(01)/2017/(02)/D(Pension/Policy) dated: 05.09.2017, which is self explanatory, is enclosed for immediate necessary action. Further clarifications/ instructions are enumerated in succeeding para’s issued for smooth implementation of Ministry of Defence letter on the subject.
3.Revised pension/ family pension of all Armed Forces Officers who retired/ died prior to 01.01.2016, shall be revised by notionally fixing their pay in the pay matrix recommended by the 7th CPC in the level corresponding to the pay in the pay scale/ pay band and grade pay at which they retired/ died. This will be done by notional pay fixation under each intervening Pay Commission based on the formula for revision of pay. The revised rates of Military Service Pay, Non Practising Allowance, where applicable notified in terms of 7th CPC orders, shall also be added to the amount of pay notionally arrived at under the 7th CPC pay matrix and shall be termed as notional reckonable emolument as on 01.01.2016. While fixing pay on notional basis, the pay fixation formulae, approved by the Government and other relevant instructions on the subject in force at the relevant time, shall be strictly followed.
4. Applicability
4.1. The above Govt. order dt. 05.09.2017 shall apply to all the Armed Forces Pensioners/ Family Pensioners who were drawing Retiring Pension / Family Pension including Disability Pension, War Injury Pension as on 01.01.2016 under the Pension Regulations of the three Services/ State Forces and various Government orders issued from time to time. 4.2. The provisions of above Govt. letter do not apply to the following categories:
(i) Gallantry awardees drawing monetary allowance in isolation attached to the award such as Param Vir Chakra, Ashok Chakra, etc.
(ii) UK/HKSRA Pensioners who were in receipt of pension in Pound Sterling as on 01.01.2016.
(iii) Persons in receipt of Compassionate Allowance, Guzara, Reservist allowance or any other allowance on which dearness relief is not admissible.
(vi) Pakistan, Burma Pensioners who have been granted Ex- gratia Ad- hoc allowance.
(viii) These orders do not apply to Public Sector Undertakings/ Autonomous Body absorbees who have drawn lump sum payment of pro rata pension, whose 43% (in case of Commissioned Officer) is restored and cadets disabled /died during Training.
4.3. Revision of all kinds of pension/family pension is to be done only in respect of those Armed Forces Pensioners including disability pensioners/family pensioners who retired, invalided out of service /died before 01.01.2016. In other words, cases of retirement, invalidment /death in service on or after 01.01.2016 are not covered by these orders.
5.Instructions were issued vide GoI, MoD letter No. 1(3)/98/D(Pen/Services) dated 27.5.1998 for revision of pension/ family pension in respect of Commissioned Officers who retired or died prior to 1.1.1986, by notional fixation of their pay in the scale of pay introduced with effect from 1.1.1986. The notional pay so worked out as on 1.1.1986 was treated as average emoluments/ last pay for the purpose of calculation of notional pension/ family pension as on 1.1.1986. The notional pension/ family pension so arrived at was further revised with effect from 1.1.1996 and was paid in accordance with the instructions issued for revision of pension/ family pension in implementation of the recommendations of the 5th CPC.
6. Accordingly, for the purpose of calculation of notional pay with effect from 01.01.2016 of those Commissioned Officers who retired or died before 1.1.1986, the pay scale and the notional pay as on 1.1.1986, as arrived at in terms of the instructions issued GoI, MoD letter No. 1(3)/98/D (Pen/Services) dated 27.5.1998, shall be treated as pay scale and the pay of the concerned Commissioned Officer as on 1.1.1986. In the case of those Commissioned Officers who retired or died on or after 1.1.1986, but before 01.01.2016, the actual pay and the pay scale from which they retired or died would be taken into consideration for the purpose of calculation of the notional pay as on 01.01.2016 in accordance with Para 3 above.
7. It is requested to fix the pay on the notional basis as on 01.01.2016 in respect of pre-01.01.2016 retired/ died Armed Forces Pensioners/Family Pensioners in accordance with the ibid Govt. letter dated 05.09.2017 in the annexed proforma of LPC-Cum-Data Sheet No. …… .It is further requested to please forward the cases for revision of pension/ family pension in respect of pre-1.1.2016 pensioner/family pensioner with effect from 1.1.2016 in accordance with ibid Govt. letter dated 05.09.2017 to this office for issue of revised Pensioned Payment Order(PPO) for every pensioner/family pensioner. The claim may be forwarded along with all related documents to this office after getting it verified and signed with legible full Name/Seal of the officer. Simultaneously, soft copy in CD of the filled LPC-cum-Data-Sheets may also be furnished to this office, through a utility provided by PCDA (Pension) for speedy issue of PPOs. This office will issue a revised Pension Payment Order i.e. corrigendum Pension Payment Order in new PPO number series and the same would travel to Pension Disbursing Authority in usual manner.
8. In view of the foregoing, it is requested to ensure that claims on the subject matter are floated in accordance with clarification given in above paras without delay. It is further requested to evolve suitable mechanism to monitor progress in forwarding of LPC-Cum-Data Sheet.
9.It is requested to mention Aadhaar no., Mobile No., PAN No., E-mail ID of pensioner/family pensioner or spouse in the prescribed LPC-cum-Data Sheet, if readily available. In case, these details are not available, efforts may be made to obtain these details from the pensioner/family pensioner/spouse and subsequently propose amendments through use of the same LPC-cum- Data Sheet for issue of corrigendum PPO.

Jt. CDA(P) has seen.

No. G-1/M/01/ICO’s/ 7th CPC/ Vol. II/2017
Date: 29.09.2017

(Nasim Ullah)

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