Cabinet approves modifications in the 7th CPC recommendations on pay and pensionary benefits
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi approved important proposals relating to modifications in the 7th CPC (Central Pay Commission) recommendations on pay and pensionary benefits in the course of their implementation. Earlier, in June, 2016, the Cabinet had approved implementation of the recommendations with an additional financial outgo of Rs 84,933 crore for 2016-17 (including arrears for 2 months of 2015-16).
The benefit of the proposed modifications will be available with effect from 1st January, 2016, i.e., the date of implementation of 7th CPC recommendations. With the increase approved by the Cabinet, the annual pension bill alone of the Central Government is likely to be Rs.1,76,071 crore. Some of the important decisions of the Cabinet are mentioned below:
1. Revision of pension of pre – 2016 pensioners and family pensioners
The Cabinet approved modifications in the recommendations of the 7th CPC relating to the method of revision of pension of pre-2016 pensioners and family pensioners based on suggestions made by the Committee chaired by Secretary (Pensions) constituted with the approval of the Cabinet. The modified formulation of pension revision approved by the Cabinet will entail an additional benefit to the pensioners and an additional expenditure of approximately Rs.5031 crore for 2016-17 over and above the expenditure already incurred in revision of pension as per the second formulation based on fitment factor. It will benefit over 55 lakh pre-2016 civil and defence pensioners and family pensioners.
While approving the implementation of the 7th CPC recommendations on 29th June, 2016, the Cabinet had approved the changed method of pension revision recommended by the 7th CPC for pre-2016 pensioners, comprising of two alternative formulations, subject to the feasibility of the first formulation which was to be examined by the Committee.
In terms of the Cabinet decision, pensions of pre-2016 pensioners were revised as per the second formulation multiplying existing pension by a fitment factor of 2.57, though the pensioners were to be given the option of choosing the more beneficial of the two formulations as per the 7th CPC recommendations.
In order to provide the more beneficial option to the pensioners, Cabinet has accepted the recommendations of the Committee, which has suggested revision of pension based on information contained in the Pension Payment Order (PPO) issued to every pensioner. The revised procedure of fixation of notional pay is more scientific, rational and implementable in all the cases. The Committee reached its findings based on an analysis of hundreds of live pension cases. The modified formulation will be beneficial to more pensioners than the first formulation recommended by the 7th CPC, which was not found to be feasible to implement on account of non-availability of records in a large number of cases and was also found to be prone to several anomalies.
2. Disability Pension for Defence Pensioners
The Cabinet also approved the retention of percentage-based regime of disability pension implemented post 6th CPC, which the 7th CPC had recommended to be replaced by a slab-based system.
The issue of disability pension was referred to the National Anomaly Committee by the Ministry of Defence on account of the representation received from the Defence Forces to retain the slab-based system, as it would have resulted in reduction in the amount of disability pension for existing pensioners and a reduction in the amount of disability pension for future retirees when compared to percentage-based disability pension.
The decision which will benefit existing and future Defence pensioners would entail an additional expenditure of approximately Rs. 130 crore per annum.
Also Read :Â FINMIN Statement : Modifications in the 7th CPC recommendations on pay and pensionary benefits
Also Read :Â Cabinet decision will be known only after issuing orders by Pension Ministry
how it will be benifited for those who are already retired between 2006 to 2016 as the fixation was done to them as per sixth pay commission having a grade pay system. so how notional pay fixation will help unless they bring us to the nearest Matrix scale and fix the pensionary benefits as per the seventh pay commission.
lets watch the calculations and its benefits for thiese type of people retired bet 2006 to 2016
Not yet given DR 2016 & JAN 2017,7th cpc to kV pensioners.
I fully endorse the views expressed by SANJOG MAHESHWARI as rightly pointed out that revised procedure of fixation of notional pay based pension is more beneficial than the first formulation proposed by the VII CPC in most of the cases as claimed will be very negligible, it obviously cannot be so in all the cases.
May be the revised procedure of fixation of notional pay based pension is more beneficial than the first formulation proposed by the VII CPC in most of the cases as claimed, it obviously cannot be so in all the cases. However, the margin of accruable monetary benefit between the two either way, could be negligible in most of the cases, and as such for the sake of uniformity, the Govt. should implement the modified notional pay-based formulation, as suggested by the Committee, across the board, without wasting any more time in observing procedural formalities, and endless meetings. However, in order to be fair and to restore the hitherto denied justice to the pre-1996 pensioners, who have been crying foul ever since 01-01-1996, the proposed notional pay-based formulation should uniformly be applied in all the pre-1996 pension cases, taking effect from 01-01-1996. While the extra burden on the exchequer would be quite negligible, the justice will not only be done, but would also appear to have been done, and the things will be set in order for all times to come. The matters should be expedited.
It’s convention that if any decision approved by Cabinet / Govt should be notified well within 48 hours. But till date no orders issued by DOPT on modifications in the 7th CPC recommendations on pay and pensionary benefits. It’s felt that any orders on DA/DR/Pay Commission related issues should be issued in a “Single Notification / order” so that concerned Ministries including Autonomous bodies initiate follow up action. The Hon’ble PM, FM look into this aspect & issue instructions to Finance Ministry at-least in future.
Autonomous bodies employees are abandoned by God, I am sure that we cannot get any 7th pay commission benefits and we can not live peacefully with this great BJP government.
Pay commission ke liye committee bithane ka koi MATLAB h e nhi jab govt ne report apni hi laagu krni h toh
It appears that every decision is kept confidential.
When every thing has to be decided by PM what is the use of appointing CPC.
WHAT IS APPROVED COULD NOT BE DISCLOSED THEN WHY TO GIVE THE PRESS REPORT.
What about enhanced pensionary benefits to Autonomous body pensioners? The enhanced DR due from July 2016 & again from January 2017 is still not paid to KVS pensioners. Any one listening?
Sir,
This 7th cpc ka naam badaa darshan thoda,Hathi ka dant dekhaneko ek khaneke liye ek .Old wine in new bottle.Since Nov 2015 I have heard the 7th CPC.When will this 7th CPC problems solve????. Will it be solved by 2020 or 2026 or more.Thanks.