Friday, January 01, 2016

Anomaly in Pension Fixation as per 7th Pay Commission Recommendations


Anomaly in Pension Fixation as per 7th Pay Commission Recommendations

One of our regular reader Mr.Visvesvara M K has expressed his views about the calculation of pension for pre-20016 pensioners as per the 7th Pay Commission.

There is an anomaly in pension fixation of pre-2016 pensioners as per 7th CPC recommendations. The 7th CPC has offered two options.

Option I:
Pension calculated by multiplying pension fixed by VI CPC by a multiplying factor of 2.57.

Option II:
Notional pay to be determined by multiplying entry pay under appropriate e Grad Pay and Level taking into consideration number of increments earned in the pay scale from which one retires. 50 % of this notional pay is the pension w.e.f. 1-1-2016.

Whichever pension of Option I and Option II is higher is the pension.

ANOMALY:
If one gets a promotion to higher post in which he serves for less than one year there is no increment earned. 50% of this notional pay as per Pay Matrix of the VII CPC will be pension w.e.f. 1-1-2016 and this pension under Option II is always and always lower than the Pension under OPTION I. Thus, there is no choice for him.

SOLUTION:
It is common to observe that most of the pensioners retired on superannuation after serving in a higher post on promotion will be retiring within a year or so and the increments earned by them in that pay scale is nil or meager compared to the increments earned in the immediate lower pay scale from which he was promoted and this fact seems to have been given a goby. Pensioner who does not earn any increments in the pay scale on promotion which may be only an extension of the lower pay scale should have his increments earned in the lower pay scale counted for calculation of the notional pay which is a part and parcel of the pay scale to which he is promoted.

3 comments:

  1. anomaly respecting pre 2016 categories may get the benefits from 01.01.2016 only.Pre 2006 cases may not be mixed up with pre.2016 categories,while submitting proposals to the competent authorities...

    ReplyDelete
  2. Part II of the central Pay commissions! compilation has to be well supported by central Government Notifications, for the purpose of implementation...

    ReplyDelete
  3. I agree with views of Mr Visvesvara M K with regard to Pensioners pre 1-1-2016. I wish to provide one more solution to the anomaly in fixation of pensioners pay, that is:-
    __ It is very common that most of the pensioners after serving in a higher post on promotion had retired within a year or so and the increments earned by them in that pay scale is nil or one compared to the increments earned in the immediate lower pay scale from which he was promoted. It means that his pay in promotion post was fixed at the middle or higher stages in the promotion pay scale and this fact seems to have not been taken in cognizance. Therefore, at whatever stage (i.e. 2 or 3 or 4 or 5 ... increments) the Pay was fixed in promotion post pay scale, that should be taken into account and the Pensioner should be allowed that many increments earned and counted for calculation of the 7t CPC notional pay in the revised pay scale.

    ReplyDelete

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