IMPLEMENTATION OF GOVERNMENT DECISION ON THE RECOMMENDATIONS OF SEVENTH CENTRAL PAY COMMISSION (7TH CPC) - REVISION OF PENSION OF PRE-2016 PENSIONERS/FAMILY PENSIONERS (Click the link below to view)
What the above decision means for pre-2016 retirees?
Modification made appears fixing the pay of pre 2016 retirees notionally in revised pay matrix and then fixing pension at 50% of pay. If the pension so fixed is more than the pension fixed with fitment formula of 2.57 then pension will be revised otherwise no change. It is presumed that option will be given to pensioners. For arriving at pay in revised matrix of 7 CPC for those who retired prior to 1-1-1996 notionally there pay will be fixed under V CPC scales and VI CPC Pay structure. Similarly for those who retired prior to 2006 it will be notionally fixed in VI CPC Pay structure and then in 7 CPC matrix. The pay for this purpose is pay last drawn as recorded in their PPO. For the information of readers fixation formula under V CPC, VI CPC and VII CPC rules is given below:
Basic pay as on 1-1-1996
DA appropriate to basic pay at 1510 pts
2nd IR 10% of BP subject to minimum of Rs.100
40% of BP
Pay in the revised scales to be fixed at the stage next above the total even if there is stage equal to the total.
Rates of DA as on 1-1-1996
For pay range upto Rs.3500pm
148% of pay
For pay range above Rs.35oo and upto 6000 pm
111% of pay subject to a minmum of Rs.5180 pm
For pay range above Rs.6000 pm
96% of pay subject to minimum of Rs.6660 pm
Existing pay scale
Applicable pay band and grade pay
Basic pay as on 1-1-2006
Pay after multiplication of BP by a factor 1.86 rounded off to next multiple of 10
Pay in the pay band
Grade Pay applicable to the post
Revised basic pay is pay in the pay band and grade pay.
Existing Pay Band
Existing Grade Pay
Basic pay as on 1-1-2016
‘X retired on 31-1-1992 and pay was Rs. 2900 in the scale 1640-2900
1. His notional pay under 5 CPC scale of 6500-10600 is Rs.8900;
2. His notional pay under 6 CPC (PB2 +GP 4200) is Rs.20760;
3. His notional pay under 7 CPC (Level 6) is Rs.53600;
4. Pension fixed on 1-1-2016 with a fitment formula of 2.57 is Rs.25847;
5. Pension as per cabinet deciscion 50% of notional pay as per 7 CPC is Rs 26800.
Note: The above example is only an illustration.
The pension fixation may vary from case to case. Final calculation has to be made as per the Government orders.