Thursday, May 4, 2017

Cabinet approves modification in pension for Central pensioners / family pensioners

The actual quantum of hike or the revised calculation procedure has not been made public yet. We have to wait for issuance of proper O.M. in this regard.
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.

4 comments :

Bhupendra Tejani, Rajkot said...

I could not understand what are the recommendation of committee regarding the modification of Pension. It is clearly understood that Option No. 1 has been rejected.Expect the Defense Pensioner what other civil pensioners will now benefited ?
Can any one may clarify .

Lakshmanrao seshagiri said...

We need to wait for appropriate O.M respecting civil pensioners from Director Pension Grievances cell New Delhi,based on the approved modifications of Cabinet Meeting,as far as civil pensioners are concerned...

Anonymous said...

"Mishra conceded the fact that a section of workforce was disappointed with the strike being deferred. “Yes, there is a fract which is disappointed. But, we did not take that decision in the air. The decision to defer the strike was taken after due consultation with our cadres on the ground,” he added."------ Another statement by Shivgopal Mishra!!!!!!!!!!! See how he is again trying to make fool of CG employees.Every body knows that just a few days before the decision for deferring the strike was made,Mr Mishra confirmed that the strike will not be deferred and not to believe in rumours.No ground level cadre was consulted for taking the decision for deferring the strike.The decision was immediately taken after the meeting with the ministers.At that time the leaders gave the excuse that there was no time to consult the ground level cadres and the strike will definitely be revived if the demands were not met within the given time frame.Mr Mishra,we are earning our salary through hard work and you have no role in it.

Anonymous said...

I understand that some details of thinking of the feasibility committee chaired by secretary(pensions) were discussed in the meeting held on 6.10.16 in which a sample table displaying benefits likely to accrue in case option3 is considered was part of the discussion.

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