7th Pay Commission recommendations on Fixation of Pension for Pre-2016 Pensioners to maintain parity between Pensioners who retired before the effective date of implementation of 7th Pay Commission and Post-2016 Pensioners
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.
(i) 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.
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.
Pensioners may be given the option of choosing whichever formulation is beneficial to them.
It is recognised
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.
Illustration on fixation of pension based on recommendations of the Seventh CPC.
Case I
Pensioner ‘A’
retired at last pay drawn of ₹79,000 on 30 May, 2015 under the VI
CPC regime, having drawn three increments in the scale ₹67,000 to
79,000:
Case II
Pensioner ‘B’ retired at last pay drawn of Rs 4,000 on 31 January, 1989 under the IV CPC regime, having drawn 9 increments in the pay scale of Rs 3000-100-3500-125-4500:
Source : 7th Pay Commission Report
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