dated the 4th August, 2016
Revision of Pension of pre 7th CPC retirees. The Commission recommends the following pension formulation for civil employees including CAPF personnel who have retired before 01.01.2016
(i) 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. 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.
(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.
(iii) Pensioners may be given the option of choosing whichever formulation is beneficial to them.
It is recognized 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.(Para 10.1.67 and Para 10.1.68 of the Report)
Decision by Government: Both the options recommended by the 7th Central Pay Commission as regards pension revision be accepted subject to feasibility of the implementation.
Revision of pension using the second option based on fitment factor of 2.57 be implemented immediately (emphasis supplied).
The illustrations from F.No.38/37/2016-P&PW(A) (ii) dated 04 Aug 16 available on pensioners portal
It will also be unfair on all pre-1.1.2016 retirees if two different methods are used to divide a homogeneous class i.e pensioners, to calculate differently pensions in the 7th CPC regime.
But isn't that against the Nakara order? The Honourable Supreme Court stated, inter alia:
P.S: Hitherto, Cab Secy, Chiefs, Army Cdr & equivalents and Secretaries received 50% of the last pay drawn (as they did not get Grade Pay and/or MSP) as pension because they had a fixed pay & no increments.
The pre-1.1.2016 Cab Secy, Chiefs retirees who will get last pension drawn i.e Rs 45000 x 2.57 = Rs 1, 15, 630 as pension whereas those in the same category retiring after 1.1.2016 will get Rs 1, 25, 000 as pension i.e approx Rs 10, 000 more!
Similarly, Army Cdr & equivalents and Secretaries who retired before 1.1.2016 will get Rs 40, 000 x 2.57 = Rs 1,02,800 whereas those in the same category retiring after 1.1.2016 will get Rs 1, 12, 500 i.e. Rs 9,700 more!