Latest 7th Pay Commission News

Pension Benefits to Bank Employees

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

LOK SABHA

UNSTARRED QUESTION NO: 508

ANSWERED ON: 20.07.2018

Pension Benefits to Bank Employees

SHIVKUMAR CHANABASAPPA UDASI

Will the Minister of

FINANCE be pleased to state:-

(a) the total number of Bank officers/ employees that were denied pension benefits as per 2010 bipartite settlement between IBA and UFBU;

(b) the total number of court cases that are pending all over the county in this regard;

(c) whether it is legal and constitutional to deny pension to eligible resigned bank officers/employees and if so, the details thereof;

(d) whether his Ministry is aware of this anomaly prevailing in the system; and

(e) if so, the steps being taken to resolve the pension issue, if not, the steps are likely to be taken by the Government to resolve the pension issue?

ANSWER

The Minister of State in the Ministry of Finance

(a): Pension of nationalised banks is based on a bipartite negotiation process at the industry level between the Indian Banks’ Association (IBA)(which negotiates on behalf of bank managements on their specific mandate) and unions/associations of bank employees. IBA has informed that as per the agreed terms and conditions of the settlement dated 27.4.2010 between IBA (on behalf of member banks) and Workmen Unions (Bipartite Settlement) / Officer Associations (Joint Note), the officers/employees who fulfilled eligibility criteria and opted for pension option are not denied pension benefits.

(b): As per inputs received from banks, 178 court cases are pending in this regard.

(c) to (e): IBA has informed that as per the terms and conditions of the settlement arrived at between IBA and United Forum of Bank Unions (UFBU), the officers/employees who had resigned from service were not eligible for pension option, although they were entitled to Contributory Provident Fund and the same was paid to them. Some of these ex-employees of different public sector banks approached different high courts praying that they be made eligible for pension option. Hon’ble Karnataka High Court, vide judgement dated 31.8.2017, dismissed the writ petitions filed by these ex-employees with the observation that the court does not find merit in the same.

Source : Lok Sabha

Reversion to old pension scheme

Ministry of Personnel, Public Grievances & Pensions

Reversion to old pension scheme

In accordance with the scheme for National Pension System (NPS), as notified vide Ministry of Finance (Department of Economic Affairs)’s Notification No. 5/7/2003-ECB & PR dated 22.12.2003, the System is mandatory for all new recruits to the Central Government service (except armed forces) from 01.01.2004.

Accordingly, as per Rule 2 of the Central Civil Services (Pension) Rules, 1972, as amended on 30.12.2003, these rules are applicable to Government servants appointed to civil posts on or before 31.12.2003. The date on which the vacancies arose or the date on which the examination was conducted for filling up the vacancies is not relevant for deciding the applicability of the Central Civil Services (Pension) rules, 1972.

Ministry of Home Affairs have not sought any advice from Department of Pension and Pensioners’ Welfare on the question of having a policy to cover the paramilitary personnel appointed after 01.01.2004 under the Old Pension Scheme on the ground that the vacancies arose, or the examination was conducted, in the year 2003. However, a reference was received from Ministry of Home Affairs in a specific case relating to appointments as Sub-Inspector in various Central Para Military Forces after selection in August, 2003 on the basis of an Examination conducted in 2002.

Appointments on the basis of these selections were made in Central Reserve Police Force in 2003 and the candidates appointed were covered by the pension scheme under Central Civil Service (Pension) Rules, 1972. However, in the Border Security Force, offers of appointment on the basis of the same examination/selection were issued in January, 2004.

On a petition filed by some personnel appointed in the Border Security Force on the basis of that examination, Hon’ble High Court of Delhi directed to cover the petitioners under the Central Civil Service (Pension) Rules, 1972 on the grounds of administrative delay on the part of Border Security Force in making appointments.

The order of Hon’ble High Court of Delhi was implemented by the Ministry of Home Affairs/Border Security Force in view of the peculiar circumstances of that case. The decision taken in that case is, however, not relevant for deciding applicability of Central Civil Service (Pension) Rules to all appointments made on or after 01.01.2004 in the Central Para Military Forces or in any other Department/organization on the basis of year of examination/selection.

This information was provided by the Union Minister of State (Independent Charge) Development of North-Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances & Pensions, Atomic Energy and Space, DrJitendra Singh in written reply to a question in Rajya Sabha today.

Source: PIB

Scheme of ‘Pension to Meritorious Sportspersons’

Ministry of Youth Affairs and Sports

Pension to Sportspersons

Minister of State (Independent Charge) for Youth Affairs and Sports Col. Rajyavardhan Rathore has said that government gives lifelong pension under the Scheme of ‘Pension to Meritorious Sportspersons’, sportspersons who have won medals for the country in the international competitions only and have retired from active sports. In a written reply in Lok Sabha today, the Minister said at present, 588 Sportspersons are getting pension. The rate of pension has been revised with effect from 1.4.2018. The rate of pension has been doubled of the rates of pension existing earlier.

Reversion to old pension scheme

Ministry of Personnel, Public Grievances & Pensions

Reversion to old pension scheme

In accordance with the scheme for National Pension System (NPS), as notified vide Ministry of Finance (Department of Economic Affairs)’s Notification No. 5/7/2003-ECB & PR dated 22.12.2003, the System is mandatory for all new recruits to the Central Government service (except armed forces) from 01.01.2004.

Accordingly, as per Rule 2 of the Central Civil Services (Pension) Rules, 1972, as amended on 30.12.2003, these rules are applicable to Government servants appointed to civil posts on or before 31.12.2003. The date on which the vacancies arose or the date on which the examination was conducted for filling up the vacancies is not relevant for deciding the applicability of the Central Civil Services (Pension) rules, 1972.

Ministry of Home Affairs have not sought any advice from Department of Pension and Pensioners’ Welfare on the question of having a policy to cover the paramilitary personnel appointed after 01.01.2004 under the Old Pension Scheme on the ground that the vacancies arose, or the examination was conducted, in the year 2003. However, a reference was received from Ministry of Home Affairs in a specific case relating to appointments as Sub-Inspector in various Central Para Military Forces after selection in August, 2003 on the basis of an Examination conducted in 2002.

Appointments on the basis of these selections were made in Central Reserve Police Force in 2003 and the candidates appointed were covered by the pension scheme under Central Civil Service (Pension) Rules, 1972. However, in the Border Security Force, offers of appointment on the basis of the same examination/selection were issued in January, 2004.

On a petition filed by some personnel appointed in the Border Security Force on the basis of that examination, Hon’ble High Court of Delhi directed to cover the petitioners under the Central Civil Service (Pension) Rules, 1972 on the grounds of administrative delay on the part of Border Security Force in making appointments.

The order of Hon’ble High Court of Delhi was implemented by the Ministry of Home Affairs/Border Security Force in view of the peculiar circumstances of that case. The decision taken in that case is, however, not relevant for deciding applicability of Central Civil Service (Pension) Rules to all appointments made on or after 01.01.2004 in the Central Para Military Forces or in any other Department/organization on the basis of year of examination/selection.

This information was provided by the Union Minister of State (Independent Charge) Development of North-Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances & Pensions, Atomic Energy and Space, DrJitendra Singh in written reply to a question in Rajya Sabha today.

Source: PIB

Fixing of Minimum of Revised pension of Pre-2006 Pensioners – RSCWS

Revision of Pension of Pre 2006 Pensioners – Reg: Benefit of Upgraded/Merged Posts by 6th CPC for fixing of Minimum of Revised pension of Pre-2006 Pensioners

No.RSCWS/HO/CHD/ Memo/2018-5

Dated: 21/05/2018

Hon. Minister of Finance, Govt. of India,

North Block, New Delhi-110001

Subject: Revision of Pension of Pre 2006 Pensioners – Reg: Benefit of Upgraded/Merged Posts by 6th CPC for fixing of Minimum of Revised pension of Pre-2006 Pensioners

Reference:- i) Resolution of GOI No. 38/37/08-P&PW (A) dated 29-8-08 & OM Dated 1-9-08,

ii) Para 5 of DOP&PW O.M. F.No. 38/37/08-P&PW (A) dated 11-2-2009 – (which has been quashed by various Courts but not withdrawn by the DOP&PW)

iii) DOP&PW O.M. F.No. 38/37/08-P&PW (A) dated 30-7-2015

Dear Sir,

We seek your benign intervention in the following matter of serious injustice with a section of Pre-2006 Central Government Pensioners:

1. Sixth Pay Commission had Merged and upgraded some posts keeping in view their duties & responsibilities. The recommendations of the Sixth CPC were accepted by the Government vide Resolution of the Government Notified on 29-8-2008 and orders were issued thereon vide DOPT & DOPPW vide OMs dated 1-9-2008.

2. DOP&PW subsequently modified these orders vide O.M. File No. 38/37/08-P&PW (A) dated 11-2-2009 and ordered that the benefit of upgrading of posts by Sixth Pay Commission shall not be given for the fixation of Revised Pension of Pre-2006 Pensioners.

3. Above cited orders of DOP&PW (dated 11-2-2009) had been quashed by the various Courts including the Apex Court, which inter-alia directed that “The fixation (of Pension) … will be subject to the provision that the revised pension, in no case, shall be lower than 50% of the sum of the minimum of the pay in the pay band and the grade pay thereon corresponding to the pre-revised pay scale from which the pensioner had retired.” DOP&PW issued the orders thereon vide OM dated 1-9-2008.

4. DOP&PW vide OM No.38/37/08-P&PW(A) Dated 30th July, 2015, in compliance with the judicial pronouncements, had decided that the pension/family pension of all pre-2006 pensioners/family pensioners may be revised in accordance with this Department’s OM No.38/37/08-P&PW(A) dated 28.1.2013 with effect from 1.1.2006.

5. Para 5 of DOPPW OM dated 11-2-2009 had specifically been quashed by various Courts –including the High Court of New Delhi in WP(C) 3035/2016 dated 3-8-2016 in Ram Phal-vs-Union of India & Ors and CAT Bangalore in CP 237/2015 in OA 231/2013 (Parthasarthy-Vs-Union of India).

6. High Court of Kerala at Ernakulam had held as under in OP (CAT).No. 169 of 2015 (Z) in its judgment dated 18th January, 2016 UNION OF INDIA vs N.R.PURUSHOTHAMAN PILLAI:

“The resultant position that emerges from the pronouncement of the Central Administrative Tribunal as well as the different High Courts and the Apex Court is that, computation of pension in the matter of implementation of the 6th Pay Commission Report has to be at 50% of the pay scale with respect to the scale of pay applicable to the post in question and not to the corresponding scale of pay to the one at which the incumbent has retired.”

7. Regrettably the benefit of upgrading of posts was still not given to the Pre-2006 Pensioners in spite of the above cited judgments of various Courts. The benefit of the Court judgments on this had been restricted only to the Petitioners and not to other similarly placed Pre-2006 Pensioners.

8. This is totally discriminatory and violates Article 14 of the Constitution as well as under the settled law that the decisions taken in one specific case either by the Judiciary or the Govt. should be applied to all other similar cases without forcing the other employees or pensioners to approach the court of law for an identical remedy or relief.

9. Delhi High Court in W.P.(C) 8012/2013 had held that “policy decision of the Government in the OM dated September 01, 2008 to fix pension for all categories of pensioners did not classify post of pre January 01, 2006 retirees and all were entitled to pension as per a common formula”

10. It is, therefore, requested that Pre-2006 Pensioners be given the benefit of upgraded Pay Band and Grade Pay of the post from which they retired so that minimum pension be not lower than 50% of the pay in the revised pay band plus the grade pay corresponding to the post from which the pensioner retired – as per DOPPW OM dated 30-7-2015.

Yours faithfully,

(Harchandan Singh)

Secretary General, RSCWS

Source: www.rscws.com

Treatment of Railway medical beneficiaries at Tata Memorial Centre Mumbai

GOVERNMENT OF INDIA

MINISTRY OF RAILWAYS

RAILWAY BOARD

No. 2014/H/15/I/AIRF

New Delhi, dated 27.04.2018

General Manager(s)

All Indian Railways,

(facluding PUs and RDSO)

Sub: Treatment of Railway medical beneficiaries at Tata Memorial Centre Mumbai – Reg.

M/s Tata Memorial Centre Mumbai has been accorded permanent recognition for cancer treatment of Railway medical beneficiaries. Such beneficiaries are referred to Tata Memorial Centre through Central/Western Railways. In many cases, it is noted that when cancer patients from zones other than Central and Western Railways are referred to Tata Memorial Centre Mumbai, they have to go back to parent zones for getting approval of expenses if the amount of advance to be sanctioned for treatment exceeds certain limit. Such situations put unnecessary hardship to Railway medical beneficiaries who have to run from Mumbai to their parent zones located at far-off places for getting necessary approvals. In view of this, the issue of providing a permanent relief in such situations has been under consideration of Railway Board for sometime.

After careful consideration in the matter, it has now been decided that the proposals for sanction of advance in favour of Tata Memorial Centre Mumbai in cases of Railway medical beneficiaries from all zones who have initially been referred to TMH/Mumbai by Central/Western Railway and have been recommended Bone Marrow Transplant (MBT) by TMH/Mumbai, will be processed and advance sanctioned with the approval of Competent Authorities of Central/Western Railways through whom the patient has been referred to the hospital. After sanction, Central/Western Railway will raise debit to the concerned zone which that zone would be bound to accept. The sanction of advance amount will be limited to the financial limit contained in PGI/Chandigarh letter dated 28.10.2016 (copy enclosed) or subsequent instruction on the subject of BMT issued by CGHS. Also, before sanction of medical advance, an undertaking may be obtained from railway medical beneficiary to the effect that charges incurred on treatment beyond the prescribed financial limit for BMT procedure will be borne by him/her and no reimbursement claim to the effect will be preferred.

This issues with the approval of Finance Directorate in the Ministry of Railways.

sd/-

(R.S.Shukla)

Joint Director/Health

Railway Board

Source: http://www.rscws.com

Pension Rates under CPF

The Central Government employees who are covered by CPF Rules (India) 1962 and who retired on or after 01.01.1986 are not entitled to any monthly pension/ex-gratia amount. However, the Government employees under CPF who retired between 18.11.1960 and 31.12.1985 are entitled to monthly ex-gratia amount of the following rates:

Dearness ex-gratia equal to 50% of the amount of ex-gratia and Dearness Relief, as notified from time to time as per 5th Central Pay Commission series, on the sums of amount of ex-gratia and dearness ex-gratia is being paid to them. There is no proposal to increase the aforesaid rates.

7th CPC Disability Pension

The 7th Central Pay Commission (CPC) recommended the following on disability pension:- The Commission is of the considered view that the regime implemented post 6th CPC needs to be discontinued, and recommended a return to the slab based system. The slab rates for disability element for

100 percent disability would be as follows:-

Ranks Levels Rate per month (INR)

The above recommendation was accepted and Resolution dated 30.09.2016 issued accordingly.

The 6th CPC dispensation of the calculation of disability element on percentage basis, however, continued for civil side which resulted in an anomalous situation. The issue was accordingly referred to the Anomaly Committee. The Anomaly Committee recommended that parity with civilians for grant of disability element which was granted to the Defence Forces Personnel under 6th CPC may be maintained which was approved by the Cabinet. Government order in this regard has been issued on 4th September, 2017.

BHAVISHYA – Pension Sanction & Payment Tracking System

An Initiative of Department of Pension & Pensioners’ Welfare

BHAVISHYA

Department of P&PW has introduced an online Pension Sanction and Payment Tracking System called ‘BHAVISHYA’. Actions for timely payment of retirement dues and issue of Pension Payment Order (PPO) start one years before the date of retirement of the employee. There are a number of intervening stages and the system will pinpoint delays at each stage to enable timely interventions. The tracking can be done by the retiring employee as well as the administrative authorities.

In addition, forms required during the process are available in electronic format. The retiring employee can fill the forms online. It facilitates the administrative authorities by processing the claims and passing on the calculated amounts and other details to the Pay and Accounts Offices. The new system will also capture personal information, service data and contact details like mobile number and e-mail etc. The retiring employees will be kept informed of the progress of pension sanction process through SMS/E-mail.

Department of Pension & Pensioners’ Welfare has implemented an online system called ‘BHAVISHYA’ for retiring central government civil employees. The system provides for on-line tracking of pension sanction and payment process. Tracking can be done by the individual as well as the administrative authorities for all actions preparatory to grant of pension and other retirement benefits. This is in line with the priorities of Government to ensure transparency and accountability in systems and processes.

At present, Bhavishya is implemented in main secretariat of 89 Ministries/ Departments except Ministry of Railways, Ministry of Defence, Department of Post, Department of Atomic Energy, Department of Tele communication and some security related sensitive organizations.

There is no such proposal to revamp the payment of pension through Public Sector Banks. However, the data base for the existing pensioners is being updated by the Authorized Banks for pensions’ payment once in a year through master data reconciliation with Central Pension Accounting Office (CPAO) and from time to time based on the Special Seal Authority (SSA) issued by CPAO to Central Pension Processing Centers (CPPCs) of Banks.

The Authorized Banks submit the report of payment of pension through e-scrolls to CPAO after making the payment of pension. Life Certificate is submitted by the Central Civil Pensioners/ Family Pensioners in the month of November every year and excess payment of pension may happen if the pensioner dies before the coming November, i.e., the next due date of submission of Life Certificate. If excess/ wrong payment of pension is paid to the pensioner by Public Sector Banks then entire amount is recovered by the Banks from the pensioners/ family pensioners as per the guidelines of Reserve Bank of India (RBI) in this regard. During the financial year 2016-17, an amount of about Rs. 73 crore was received/ recovered from the Authorized Banks by the Central Pension Accounting Office in respect of central civil pensioners/family pensioners.

Simplification of Pension Procedure – Submission of Life Certificate

19.03.2018

Subject:- Simplification of Pension Procedure – Submission of Life Certificate

Attention is invited to CPAO’s 0M No. CPAo/Tech/Simplification/2012-13/325 dated-18.02.2013 on the above subject whereby it was decided to submit the life certificate to any branch of the authorized bank through which pension of pensioners/family pensioners is being disbursed. Format of acknowledgement to be given by the Life Certificates receiving branch to the pensioner/family pensioner was circulated vide this office OM No.CPAO/lT&Tech/Scheme Booklet/2015-16/1666 dated-16.10.2015 which was reiterated vide OM No.CPA0/lT&Tech/Jeevan Pramaan/2015-16/ 1680 dated-09.11.2 015.

But, it is observed that bank branches are still not providing the acknowledgement of Life Certificate to the pensioners/family pensioners. Moreover, it has been observed that they do not forward the same to their CPPCs, resulting in stoppage of pension/ family pension which causes undue financial hardship to the pensioners/ family pensioners.

In view of the above, Heads of CPPCs and Heads of Government Business Divisions of all the authorized banks are requested to issue necessary instructions to all their branches to provide the acknowledgement of Life Certificate to the pensioner/family pensioner without fail and forward the same to the concerned CPPCs for necessary action.

sd/-

(Md.Shahid Kamal Ansari)

(Asstt. Controller of Accounts)

Maternity Leave and Pension

Hon’ble Delhi High Court vide its judgement dated 17.07.2015 in the Writ Petition (C) No. 844/2014 – Rama Pandey vs. Union of India &Ors., has laid down that a female employee, who is the commissioning mother, would be entitled to apply for maternity leave. Department of Personnel and Training, after examination of the judgement, has circulated it to all Ministries/Departments for wide publicity vide Office Memorandum dated 29.01.2018. 

In accordance with the Office Memorandum No. 1/13/09- P&PW (E) dated 19th July, 2017, family pension would also be granted to a divorced daughter from the date of divorce in cases where the divorce proceedings had been filed in a competent court during the life-time of the employee/pensioner or his/her spouse but divorce took place after their death, subject to fulfilment of all other conditions for grant of family pension.

No centralized data regarding grant of pension/family pension by the various Pension Disbursing authorities is maintained.

This was stated by the Minister of State for Personnel, Public Grievances & Pensions and Prime Minister’s Office, Dr. Jitendra Singhin a written reply to question in the Lok Sabha today.

Furnishing of Specimen signature of the officers of the Zonal Railways and Production Units authorized to forward the Pension Payment Orders to the banks.

Government of India

Ministry of Railways

Railway Board

RBA No.171/2017

New Delhi dated: 01.12.2017

Sub: Furnishing of Specimen signature of the officers of the Zonal Railways and Production Units authorized to forward the Pension Payment Orders to the banks

Please connect Board’s letter no. 2010/AC-II/21/12 dated 21.9.2010 wherein it was advised that Copies of the impression of special seal of PFAs(as indicated in Annexure II-J of the scheme for disbursement of Pensions to Railway pensioners through PSBs) together with the specimen signature of the officers of the Zonal Railways and Production Units who are authorized to forward the Pension Payment Orders to the Bank Branches concerned, duly countersigned by the Local Manager, Reserve Bank of India or State Bank of India conducting Government Business at the centre as the case may be. However, Syndicate bank has brought it to the notice of the Board that these signatures may be made available to the bank.

It is therefore requested that suitable action may be taken in this regard and ensure that the specimen signatures are available with the bank. A line of confirmation may also be sent to Board.

sd/-

(V. Prakash)

Joint Director Accounts

Railway Board

7th CPC - Revision Of Retiring Pension – Commissioned Officers, Retired/Discharged On Or After 01.01.2016

OFFICE OF THE PR. CONTROLLER OF DEFENCE ACCOUNTS (PENSION)

DRAUPADI GHAT, ALLAHABAD- 211014

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

dated:12.09.2017

To,

The PCDA (O)

Golibar Maidan

Pune-411001

Subject: Implementation of the Government decision on the recommendations of the Seventh Central Pay Commission in respect of Commissioned Officers, Retiring or dying in harness on or after 1.1.2016 (Post-2016).

Reference: GoI, MoD letter No.17(02)/2016-D(Pen/Pol) dated :04.09.2017.

Consequent upon issue of GoI, MoD letter No. 17(02)/2016-D(Pen/Pol) dated 04.09.2017 (Annexure A), pensionary awards of Commissioned Officers (including MNS and Territorial officers) of three Services who retired/ discharged/ released/ invalided out or died in harness on or after 01.01.2016 are to be sanctioned under orders contained therein.

2. It is therefore, requested to initiate claim/revision claim as detailed below along with the enclosed LPC-cum-Data Sheet for initial/revised pension claims, as the case may be, so that initial PPO/Corrigendum PPO may be issued in affected cases by this Office:-

(a) Initial Claims for Retiring Pension, Invalid Pension, Service Element as well as Disability Element of Disability/ Liberalised Disability/ War Injury Pension:

Initial Claims for Retiring Pension, Invalid Pension, Service element as well as Disability Element of Disability/ Liberalised Disability/War Injury Pension in respect of Commissioned officers of Indian Army who retired/discharged/released/invalided out on or after 01.01.2016 and who are in receipt of pay & allowance under respective Army Officers Pay Rules 2017 shall be preferred in usual manner on revised LPC-Cum-Data Sheet No. PHP-G1M-01/2017(7th CPC) as per specimen enclosed (Annexure B) and submitted as usual along with data in electronic form. The instructions for the filling up LPC cum Data Sheet are enclosed as Annexure E.

(b) Claim for revision of retiring pension – commissioned officers, retired/discharged on or after 01.01.2016.

Data Sheet PHP-G1M-03/2017(7th CPC) (Enclosed as Annexure C) will be used for revision of pensionary awards as per 7th CPC in those cases where Pension has already been notified as per 6th CPC . This data sheet will be used only once for revision of Pensionary awards already notified from 01.01.2006 to 30.09.2017, thereafter, any amendment/ revision will be done through Data Sheet (Rev) PHP-G1M-02/2017(7th CPC) (Enclosed as Annexure D) for corrigendum of pensionary awards.

(c) Claim For Corrigendum of Pensionary Awards (PHP-G1M-02/2017(7th CPC)) :

Data Sheet (Rev) PHP-G1M-02/2017(7th CPC) (Enclosed as Annexure D) for corrigendum of pensionary awards in respect of commissioned officers will be used for amendment /revision of 7th CPC pensionary awards i.e. pensionary awards already notified as per VI CPC and subsequently revised as per 7th CPC through data sheet “PHP-G1M-03/2017(7th CPC).

NOTE :- Old Data sheet (Rev) for corrigendum of pensionary awards will continue to be used for revision/amendments of pensionary awards of officers retired/discharged/invalided out prior to 01.01.2016.

3. COMMUTATION OF ADDITIONAL PENSION IN REVISION CASE:

Pensioners who have retired between 1.1.2016 and date of issue of orders for revised pay/ pension based on the recommendations of the 7th CPC, shall have an option, in relaxation of provisions of relevant Pension Regulations, not to commute the pension which has become additionally commutable on retrospective revision of pay / pension on implementation of recommendations of the 7th CPC. Option form is enclosed as Appendix ‘A ’ to be used for this purpose.

Option for commutation of additionally commutable amount will required to be submitted within 4 months from the issue of the Govt. letter by the Armed Forces officers. Option exercised after expiry of 4 months from the issue of the Govt. letter will not be entertained. The claim submitted without exercising said option or if no option for commutation of additionally commutable amount of pension is received within stipulated time period as mentioned above, it will be presumed that pensioner is not willing to commute additionally commutable amount.

4. DISABILITY PENSION/WAR INJURY PENSION

4.1 There shall be no change in existing provisions regulating the Disability Pension/War Injury Pension under casualty pensionary award so.

4.2 The amount of all kind of pension shall be subject to a minimum of Rs. 9,000/-. The maximum amount of normal rate, enhanced rate of ordinary family pension and retiring pension shall be 30%, 50% and 50% respectively, of the highest pay in the Government which is Rs. 2,50,000/- with effect from 1.1.2016. The maximum ceiling is, however, not applicable in the cases of Disability Pension/War Injury Pension etc., applicable under casualty pensionary awards.

5. Ex-GRATIA LUMP SUM COMPENSATION IN CASES OF INVALIDMENT :

Ex-gratia lump sum compensation to Defence Service Personnel who are boarded out of service on account of disability/ war injury attributable to or aggravated by military service, shall be paid @ Rs. 20 lakh for 100% disability subject to provisions as stipulated in MoD letter No. 2(2)/2011/D(Pen/Policy) dated 26.12.2011. For disability/ war injury less than 100% but not less than 20%, the amount of Ex-gratia compensation shall be proportionately reduced. No Ex-gratia compensation shall be payable for disability/war injury less than 20%. The proportionate compensation would be based on actual percentage of disability as certified by the Invaliding Medical Board, without applying broad banding provisions as contained in Para 7.2 of MoD letter No. 1(2)/97/D(Pen-C) dated 31.01.2001.

6. DISABILITY/WAR INJURY ON DISCHARGE /INVALIDMENT:

6.1 BROAD-BANDING OF PERCENTAGE OF DISABILITY/WAR INJURY ON DISCHARGE:

In cases where Armed Forces personnel are discharged/retired on or after 1.1.2016 under the circumstances mentioned in Para 4.1 of MoD letter No. 1(2)/97/D (Pen-C) dated 31.1.2001 with disability including cases covered under MoD letter No. 16(5)/2008/D(Pen/Policy) dated 29.9.2009 and the disability/war injury has been accepted as 20% and more, the extent of disability or functional incapacity shall be determined in the manner prescribed in Para 7.2 of said letter dated 31.1.2001 for the purpose of computing disability/ war injury.

6.2 BROAD-BANDING OF PERCENTAGE OF DISABILITY/WAR INJURY ON INVALIDMENT:

Existing provisions for broad banding of invalidment cases of Disability and War Injury Pension shall remain unchanged.

6.3 Rates for calculation of disability where composite assessment is made due to existence of disability, as well as war injury, shall be determined in terms of provision contained in Para 3(b) of MoD letter No. 16(02)/2015-D(Pen/Pol) dated 08.08.2016.

6.4 CONSTANT ATTENDANT ALLOWANCE (CAA)

Constant Attendant Allowance shall continue to be admissible under the condition as hithertofore at the existing rate from 1.1.2016 to 30.06.2017. However, with effect from 01.07.2017 it shall be admissible at the uniform rate of Rs. 6750/- per month, irrespective of the rank.

7. All out efforts may be made to submit affected cases for revision of pension duly completed in all respect (along with option for commutation, if any) to avoid correspondence and back references.

8. The Software Programme for Data entry and validation check may be collected from EDP Centre of this Office.

9. Various Orders on the subject are available on the website of this Office i.e. www.pcdapension.nic.in.

10. As far as possible, all fresh claims for grant of retiring pension should be submitted only on revised LPC-cum Data Sheet. After 01.10.2017, no fresh cases for notification of Pension will be entertained on old LPC-cum Data Sheet. However, cases on the new LPC-cum-Data Sheet received before 01.10.2017 will also be accepted if revised pay details are available. It may please be ensured that Seal of LPC cum data sheet signing officer is affixed and name of all officials signing LPC cum data sheet are clearly and legibly mentioned. 

(Nasim Ullah)

ACDA (P)

Original Copy

7th CPC - Revision of provisions regulating Pension/ Gratuity/ Commutation of Pension/ Family Pension

No. 17(02)/2016-D(Pen/Pol)

Government of India

Ministry of Defence

Department of Ex-Servicemen Welfare

New Delhi

Dated 4th September 2017

To

The Chief of the Army Staff

The Chief of the Naval Staff

The Chief of the Air Staff

Sub: Implementation of the Government decision on the recommendations of the Seventh Central Pay Commission - Revision of provisions regulating Pension/ Gratuity/ Commutation of Pension/ Family Pension including pensionary awards notified in terms of Casualty pensionary awards in respect of Commissioned Officers, Junior Commissioned Officers Other Ranks, Retiring or dying in harness on or after 1.1.2016.

Sir,

The undersigned is directed to refer to the Government's decisions on the recommendations of the Seventh Central Pay Commission notified vide Government of India, Ministry of Defence, Department of Ex-Servicemen Welfare Resolution bearing No 17(l)/2014/D(Pension/Policy) dated 30.9.2016, recommendations of National Anomaly Committee on methodology for calculation of disability element for Defence Forces and Ministry of Personnel, Public Grievances and Pension, Department of Pension" and Pensioners' Welfare Office Memorandum No. 38/37/2016 - P&PW(A) (i) dated 4.8.2016 as modified vide OM F No 42/14/2016-P&PW(G) dated 24.10.2016. Sanction of the President is hereby accorded for modification in the rules regulating Pension, Family pension, Retirement/ Death/Service Gratuity, Commutation of pension, pensionary awards under casualty pensionary awards including Ex-gratia lump sum compensation in cases of invalidment etc., to the extent specified in this letter.

2. The provisions of the Pension Regulations, 2008 of Army and various Services Regulations, Instructions and Government Orders issued by this Ministry from time to time, which are not affected by the provisions of this letter, shall remain unchanged.

3. DATE OF EFFECT

3.1 The revised provisions of this letter shall apply to the Commissioned Officers (including MNS and Territorial Army Officers), Junior Commissioned Officers and Other Ranks of the three Services, Non-Combatants (Enrolled) in the Air Force, Defence Security Corps and the Territorial Army (hereinafter collectively referred to as Armed Forces Personnel) who retired/discharged! released/invalided out or died in harness on or after 1.1..2016. Separate orders have already been issued in respect of Armed Forces Personnel who retired/died before 1.1.2016.

3.2 Where Pension! Family Pension/ Death Gratuity/ Retirement Gratuity/ Commuted Value of Pension or pensionary awards under casualty pensionary awards has already been sanctioned provisionally, or otherwise, in cases of retirement/death occurring on or after 1.1.2016, the same shall be revised in terms of these orders. In cases where pension has been finally sanctioned under the pre-revised orders and if it happens to be more beneficial than the pension becoming due under these orders, the pension already sanctioned shall not be revised to the disadvantage of pensioner.

4. RECKONABLE EMOLUMENTS

4.1 The term ' Reckonable Emoluments' for the purpose of calculating various-pensionary benefits other than various kinds of Gratuities, shall consist the following-

4.1.1 Commissioned Officers: Pay in the Pay Matrix, Military Service Pay and Non Practicing Allowance, if any, last drawn by the officer (Refer - Army Officer Pay Rules-2016, Air Force Officer Pay Rules-2017, Navy Officer Pay Regulations-2017 as may be the case)

4.1.2 Junior Commissioned Officers & Other Ranks: Pay in the Pay Matrix, Military Service Pay, and 'X' Group Pay & Classification Allowance, if any, last drawn by the JCOs/ORs "(Refer - Army Pay Rules-2017, Air Force Pay Rules-2017, Navy Pay Regulations-2017 as may be the case).

4.2 For calculation of all kinds of gratuities, dearness allowance admissible on the date of retirement/discharge/invalided out/death, shall continue to be treated as part of emoluments along with the emoluments as defined in para 4.1 above.

4.3 SPECIAL PROVISIONS FOR THOSE WHO OPTED TO CONTINUE T.O DRAW PAY IN THE PRE-REVISED SCALE OF PAY

4.3.1 Those who have elected to continue to draw pay in the pre-revised scale of pay and have retired/ discharged/ invalided out of service on or after 1.1.2016, “their pension and gratuity, as applicable, shall be calculated under the rules in force immediately before coming into effect of these-orders".

4.3.2 The term 'Reckonable Emoluments' for the purpose of pensionary benefits under this Para 4.3.1 shall be the same as defined in para 3.1 of this Ministry's letter No 17(4)/2008(2)/ D(Pen/Pol) dated 12.11.2008 and shall also include Dearness Allowance notified under Sixth CPC Pay structure.

4.3.3 Entitlement of gratuity shall be determined, under the order in force-immediately before coming into effect of these orders subject to the maximum ceiling as prescribed in Para 8 of this Ministry's letter No. 17(4)/2008(2)/D (Pen/Pol) dated 12.11.2008.

4.3.4 Family Pension shall also be allowed in accordance with orders applicable prior to the issue of these orders.

4.4 In the case of Commissioned Officers and JCOs/ORs who have opted for the revised pay structure and have retired/discharged within 10 months from the date of coming over to the revised pay structure, the average emoluments for 10 months period preceding retirement/discharge will be calculated by taking into account pay as follows:-

5. QUALIFYING SERVICE

5.1 The minimum period of qualifying service prescribed for earning various kind of pension and gratuity by Defence Forces personnel, shall continue as hithertofore. There shall also be no change in the provisions for determining reckonable qualifying service for calculating pension and gratuity.-

6.PENSION

6.1 Subject to para 6.2, there shall be no change in the provisions regulating the amount of pensions including pension determined under casualty pensionary awards. However, the provisions for determining pension based on, notional maximum of pre-revised pay scale in respect of JCOs/OR, shall be discontinued.

6.2 The amount of pension shall be subject to a minimum of Rs 9,000/- and the maximum pension would be 50% of highest pay in the Government (the highest pay in the Government is Rs 2,50,000/- with effect from 1.1.2016). However, the maximum ceiling'shall be applicable only in the case of Service/Retiring Pension, Service element of Disability/ Liberalized disability/ War Injury Pension and Ordinary Family Pension. The said ceiling is not applicable in the cases of Disability/ Liberalized Disability/ War injury element, being authorized under casualty pensionary awards.

6.3 The quantum of additional pension/family pension available to the old pensioners/family pensioners shall be continue to be as follows-

The Pension Sanctioning Authorities should ensure that the date of birth and the age of a pensioner! family pensioner, are invariably indicated in the Pension Payment Order to facilitate payment of additional pension by the Pension Disbursing Agencies as soon as it becomes due. Dearness relief shall also be admissible on the additional pension available to old pensioners/family pensioners.

Note: The additional pension payable to old pensioners/ family pensioners of 80 years of age and above shall also be applicable to old pensioners/ family pensioners of 80 years of age and above in receipt of War injury pension! Disability pension/ Liberalized family pension! Special family pension.

7.GRATUITY

7.1 The maximum limit of all kinds of Gratuity is. Retiring/ Retirement /Service Invalid/ Special/ Terminal/ Death Gratuity shall be Rs. 20 lakhs. This ceiling on gratuity shall be increased by 25% whenever the Dearness Allowance rises by 50% of the basic pay.

7.2 DEATH GRATUITY

The rates for payment of death gratuity shall be as under:

8.FAMILY PENSION

8.1 Subject to para 8.2, there shall be no change in the provisions regulating the amount of various kinds of family pensions including family pension determined under casualty pensionary awards and additional family pension applicable to old family pensioners.

8.2 . The amount of all kind of family pension shall be subject to a minimum of Rs 9,000/-. The maximum amount of normal rate and enhanced rate of ordinary family pension shall be 30% and 50% respectively of highest pay in the Government which is Rs 250,000/- with effect from 1.1.2016. The maximum ceiling is, however, not applicable in the cases of Special Family! Liberalized Family Pension etc., applicable under casualty pensionary awards.

8.3 The dependency criteria for the purpose of family pension shall continue to be the minimum family pension along with Dearness Relief thereon.

9. Ex-GRATIA LUMP SUM COMPENSATION IN CASES OF INVALIDMENT

9.1 - The Ex-gratia lump Sum compensation to Defence Service personnel who are boarded but of service on account of disability/ war injury attributable to or aggravated by military service, shall be paid @ Rs 20 lakh for 100% disability subject to provisions as stipulated in this Ministry's letter No. 2(2)/2011/D(Pea/Pol) dated 26.12.2011. For disability/ war injury less than 100% but not less than 20%, the amount of Ex-gratia compensation shall be proportionately reduced. No Ex-gratia lump sum compensation shall be payable for disability/ war injury less than 20%. The proportionate compensation would be based on actual percentage of disability as certified by the Invaliding Medical-Board, without applying broad banding provisions as contained in Para 7.2 of this Ministry's letter No 1(2)!97/D(Pen-C) dated 31.01.2001.

10.BROAD-BANDING OF PERCENTAGE OF DISABILITY/WAR INJURY ON DISCHARGE

10.1 Where an Armed Forces personnel is discharged/retired under the circumstances mentioned in Para 4.1 of this Ministry's letter No l(2)/97/D(Pen-C) dated 311.2001 with disability including cases covered under this Ministry's letter “No 16(5)/2008/D(Pen/Policy) dated 29.9.2009 and the disability/ war injury has been accepted as 20% and more, the extent of disability or functional incapacity shall be determined in the manner prescribed in Para 7.2 of said letter dated 31.1.2001 for the purpose of computing disability/war injury.

10.2 Rates for calculation of disability where composite assessment is made due to existence of disability, as well as war injury, shall be determined in terms of provision contained in Para 3(b) of Ministry's letter No. 16(02)/2015-D(Pen/Pol) dated 8th August 2016.

11. EX-GRATIA AWARDS TO CADET (DIRECT)

11.1 In cases of disablement ! death, following Ex-gratia award shall be payable subject to the same conditions as hitherto in force in the event of invalidment on medical ground / death of a Cadet (Direct) due to causes attributable to or aggravated by military training.

11.1.1 Monthly Ex-gratia amount of Rs 9,000/- per month.

11.1.2 In cases of disablement, Ex-gratia disability award @ Rs 16,200/- per month shall be payable in addition for 100% of disability during period of disablement subject to prorata reduction in case the degree of disablement is less than 100%. No disability award shall be payable in cases where the degree of disablement is less than 20%.

11.1.3 In cases of death, Ex-gratia amount of Rs 12.5 Iakhs.

11.1.4 The Ex-gratia awards to Cadets (Direct)! NoK, shall be sanctioned purely on ex-gratia basis and the same shall not be treated as pension for any purpose.

However, dearness relief at applicable rates shall be granted on monthly ex-gratia as well as ex-gratia disability award.

12.CONSTANT ATTENDANT ALLOWANCE (CAA)

12.1 "Constant Attendant Allowance shall continue to be admissible under the condition as hitherto fore at the existing rate from 1.1.2016 to 30.06.2017. However, it shall be admissible at the uniform rate of Rs. 6750!- per month, irrespective of the rank with effect from 1.7.2017."

13.COMMUTATION OF PENSION:

13.1 There shall be no change in the provisions relating to commutation values, the limit upto that the pension can be commuted or the period after which the commuted pension is to be restored.

13.2 The pensioners who have retired between 1.1.2016 and date of issue of orders for revised pay/ pension based on the recommendations of the 7th CPC, shall have an option, in relaxation of provisions of relevant Pension Regulations, not to commute the pension which has become additionally commutable on retrospective revision of pay / pension on implementation of recommendations of the 7th CPC, Option form to be used for this purpose shall be prescribed by the PCDA (Pension), Allahabad along with their implementation instructions.

13.3 The option may be invited only from those who Want to commute their pension which has become additionally commutable as per Para 13.2 above and no commutation shall be allowed as a default. In such cases, RO/HOO/PSAs will finalize the cases without waiting for Option for commutation of additional pension and such option, if any, received later on (within four months from the date of issue of this letter) may be processed separately for additional commutation. Option for additional commutation on the basis of revised pension once exercised would be final and in no case it would be entertained at a later stage. Service Hqrs may be deputed as Nodal agencies to carry out such exercise with the respective ROs for the speedy implementation of work and forward such cases to PSAs.

GENERAL INSTRUCTIONS

14. The amount of various pensionary awards admissible in terms of this order, shall be round-ed off to the next higher rupee by the Pension Sanctioning Authorities.

15.If the amount of any monthly pension! family pension admissible under the provisions of this letter works out to be less than Rs 9,000/- per month, it shall be stepped up to Rs 9,000!- per month and authorized for payment at this rate.

16.The pension/ family pension notified in terms of these orders from 1.1.2016 or thereafter, shall qualify for dearness relief sanctioned by the Government from time to time in accordance with the relevant rules! instructions.

PROCEDURE FOR SANCTION OF'REVISED PENSION TO THOSE WHO HAVE ALREADY RETIRED

17. For revision of pensionary awards as per provisions of this letter in respect of Armed Forces personnel who have already retired/ discharged/ invalided out/ died on or after 1.1.2016 and in whose cases, pensionary benefits at pre-revised rates have already been notified, the Record Offices concerned in case of JCOs/ORs and PCDA(O) Pune/ Naval Pay Office Mumbai/ AFCAO, New Delhi, as the case may be in respect of commissioned officers, will initiate and forward revised LPC-cum-Data Sheet as prescribed by PCDA(Pensions), Allahabad, to their respective Pension Sanctioning Authorities (PSAs) for issue of Corrigendum PPOs notifying the revised pensionary awards. Further, implementation instructions to all concerned, shall be issued by PCDA (Pensions), Allahabad immediately on receipt of these orders.

18. Pension Regulations of the three Services, shall be amended in due course.

19. This issues with the concurrence of the Finance Division of this Ministry vide their ID Note No.10(03)/2017/Fin/Pen dated 30.08.2017.

20.Hindi version will follow.

Yours faithfully

S/d,

(Manoj Sinha)

Under Secretary to the Government of India