7th CPC Pension Calculation : Implementation of First Option after Committee Report

7th CPC Pension Calculation : Implementation of First Option after Committee Report

“Revision of pension using the second option based on fitment factor of 2.57 be implemented immediately. The first option may be made applicable if its implementation is found feasible after examination by the Committee”

Revision of Pension of pre 7tn 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)

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. The first option may be made applicable if its implementation is found feasible after examination by the Committee comprising Secretary (Pension) as Chairman and Member (Staff). Railway Board, Member (Staff), Department of Posts, Additional Secretary & Financial Adviser, Ministry of Home Affairs and Controller General of Accounts as Members

Source: http://www.pensionersportal.gov.in/

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Recommendations of the 7th Pay Commission relating to Pension/Retirement Benefits – RSCWS

RAILWAYS SENIOR CITIZENS WELFARE SOCIETY

IDENTIFIED & RECOGNISED BY DOP&W GOI UNDER PENSIONERS PORTAL

No. RSCWS/CHD/7th CPC Rep/2015-1

Dated: 6th December, 2015

Secretary,

Government of India,

Department of Pension & Pensioners’ Welfare,

3rd Floor, Lok Nayak Bhawan,

Khan Market, New Delhi.

Subject: Recommendations of the 7th Pay Commission relating to Pension/Retirement Benefits

Reference: Your office letter No. 38/66/13-P&PW(A)(Vol.II) Dated 1st/3rd December, 2015

We would like to draw your kind attention to the following major points of serious injustice with the Pensioners, with a request for justice and required relief for the Pensioners:

1. FIXED MEDICAL ALLOWANCE (Ref: Para 8.17.51): It is regretted that the 7th CPC has recommended no enhancement of Fixed Medical Allowance (FMA) for Pensioner for day to day medical treatment not requiring hospitalization, merely on the ground that “this Allowance was last enhanced from Rs.300 to Rs.500 pm from 19/11/2014’.

The Pay Commission has not even gone into the merit or the reasons for the demand placed before it for raising the FMA to Rs.2000 pm including the following among others:

i) The delay in revision of FMA by 6 years was totally unjustified. FMA should have been revised from 1-9-2008 – like all other Allowances after the 6th CPC;

ii) Cost had exorbitantly increased for the Medicines, Consultation Fee and of Pathological Tests required for day to day medical treatment since 1997 (when the FMA was initially granted). This had risen at a much steeper rate than the General Price Index.

iii) Average expenditure per pensioner on OPD in CGHS Hospitals has increased manifolds and is at present over Rs.2500 per patient. FMA should be comparable to the that especially in view of even higher costs of Medical treatment other than CGHS due to bulk purchase of Medicines under CGHS & other related factors.

iv) A large proportion of Pensioners were residing in remote areas or villages having no excess to CGHS Dispensaries & Railway Hospitals and are as such, are wholly dependent on the paltry amount of FMA for day to day treatment of self & spouse.

It is, therefore, requested that the FMA may please be revised to at least Rs.2000 p.m.

2. MULTIPLE FACTOR (REF: PARA 10.1.67): The 7th Pay Commission has very unjustly & arbitrarily recommended the multiple factor of 2.57 for fixation of Pay & Pension. It is tantamount to less than 14.3% rise of emoluments as on 1-1-2016 (with expected DA of 125%) as against over 21% rise proposed by 7th CPC. This is especially very much unjustified in view of much high price rice in the last 10 years. The multiple factor may, therefore, be appropriately raised to (Basic Pay+ 125% DA) + 40% Fixation Benefit = 3.15 with fitment on merged DA or at least 2.65 times of BP.

3. PARITY OF PENSION (PARA (10.1.53 & 10.1.67):

a) We welcome the recommendation of 7th CPC and thank it for accepting the long pending demand of Past & Future Pensioners.

The method suggested by the Pay Commission for the above purpose, however, needs to be simplified as the service Records of many of the old Pensioners may not be available – thus depriving them of the benefit of the same. It is, therefore, requested to simplify the method for the purpose and the same should be based only on the information available in the PPO.

4. PENSION FORMULATION FOR CIVILIAN PENSIONERS INCLUDING CAPF: It is requested that, the following Pension Formulation may please be adopted for Civilian Pensioners including CAPF who retired before 01-01-2016:

PENSION OF PRE 2016 PENSIONERS MAY PLEASE BE FIXED AT THE HIGHER OF THE FOLLOWING:

i) Pension be fixed at par with Average of the Pension of Post-2016 Pensioners based on the 50% of the Average Pay in the Pay Matrix corresponding to the Level from which the Pensioner had retired; OR

ii) Pension fixed after Sixth Pay Commission be multiplied by a factor of 3.15 or at least 2.65 times of BP (i.e. BP + 125% DA) + 40% Fixation Benefit = 3.15 times of BP with merged DA or at least 2.65 times of BP without merger of DA – as proposed in Para 3 above).

5. ADDITIONAL PENSION (Para 10.1.28): 7th CPC has totally ignored the reasons of extra expenses on medical care & treatment in old age for the demand for reducing the age for grant of Additional Pension of 5 % from 65 years of age, 10 % from 70 years and 15% from 75 years. It has also ignored even the recommendations of DOP&PW for starting it at the age of 75 years. This has greatly hurt the Pensioners. It is, therefore, requested that the Additional Pension may please be granted @ 5 % from 65 years of age, 10 % from 70 years and 15% from 75 years.

Hoping for a favourable consideration.

Thanking you.

Yours faithfully,

Sd/-

(Harchandan Singh)

Secretary General, RSCWS

Source: www.irtsa.net

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7th Pay Commission Shortcomings – BPS writes to FM

Bharat Pensioners Samaj, one of the oldest & the largest Federation of Indian pensioners writes to Finance Minister regarding the recommendations of 7th Pay Commission. The Federations insists to redress the eight serious shortcomings in the recommendations of 7th CPC. Particularly in the fitment factor issue, the Federation appeal to provide 2.81 fitment benefit for all employees without any discrimination. Read the detailed letter is reproduced and given below for your kind information…

BPS writes to Finance Minister pointing out 7th CPC shortcomings.

BHARAT PENSIONERS’ SAMAJ

(All India Federation of Pensioner’s Associations)

New Delhi -110014

SG/BPS/ 10/2015

New Delhi-Dt. 25-11-15

To

Dear Shri Arun Jaittleyji,

Honourable Minister of Finance

Government of India

Subject : 7th Central Pay Commission report released on 19.11.2015

Sir,

With deep resentment and pain BHARAT PENSIONERS SAMAJ( BPS) the oldest & the largest Federation of Indian pensioners which is a conglomerate of over 650 Pensioners Associations appeal to you to redress the following issues which 7th CPC failed address:

1. Ratio between minimum and maximum: Instead of reducing it is raised which is against the preamble of the Constitution of Indian Republic.

2. Minimum salary has been intentionally calculated to be lower to keep common fitment factor low. Counting employees’ wife as 0.80 unit is gender biase and is totally unjustified. Quantities & rates taken for the items in basket are unrealistic for example Rs 524.07 per month is provided Even the lowest category of Govt. accommodation is not available at this rate. Similarly rate of ‘Dal’ is taken to be 97.84 per Kg. No ‘ Dal‘ is or was available in the market at this rate. Quantity of Milk is taken to be 200 ml per unit per day which is too little for a vegetarian rate of Milk is taken to be Rs 37.40 per Kg which is lower than market rate.

3. According to 7th CPC 2.57 fitment factor is for all employees. But, in fact. 2.81 fitment has been given at Secy level. This is robbing Peter to pay Paul, violative of CPC own recommendation and that of Article 14 of the constitution of India. 2.81 fitment benefit should be provided to all employee without any discrimination.

4. Raising percentage of pension based on sustenance: Analysis given by CPC is silent on sustenance this is unjustified rejection.

5.OROP recommended by 7th CPC for all. But through the jugglery of pay matrix, for promotee officers and group ‘C.‘ it will end up only in modified parity. This needs rectification to ensure absolute parity for all.

6. Additional pension at 75 yrs of age is denied only because Defence Ministry did not agree this is rather absurd. If Defence Ministry does not want to have it, let them not have it. Why make others suffer on this account?

7. Medical facilities : While the Commission’s recommendations regarding merging of all postal dispensaries with CGHS dispensaries and inclusion of non CGHS covered postal Pensioners are welcome.

However, its recommendations regarding Health insurance for pensioners do not suit existing pensioners on account of no coverage of existing disease without lock-in period, no provision of OPD facility , payment of premium and less amount of coverage.

Undersigned, wish to draw your kind attention to para 9.5.18 (iii) of the 7th CPC and request you to create without delay a combined entity of CGHS, ECHS-RELHS which in terms of 7th CPC would result in a very strong network of health facilities for the Central Government employees/pensioners across the length and breadth of the country.

8.Scraping of New Pension scheme(NPS) :It has come out through 7th CPC report that though NPS was introduced more than a decade back Govt; to date could not firm up rules in this regard. With the result over 300000 employee recruited after 2004 may not have enough funds in their accounts at retirement to ensure financial security. Center and state Govt’s share of contribution is insufficient and these governments are not depositing their contribution in time, investments are subjected to service tax & withdrawals are taxable under Income Tax with the result there would not be enough money for reasonable post retirement financial security. Due to ever rising inflation, this situation will go on worsening year by year and will go out of hand by the time of retirement of the beneficiary. This is more than sufficient reason to scrap NPS & to revert to pre 2004 defined benefit Pension Scheme.

Thanking you in anticipation.

Sd/-

S.C.Maheshwari

Secy. General Bharat Pensioners Samaj

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7th CPC Pension Calculation : Fixation for Pre-2016 Pensioners

The 7th Pay Commission has recommended the fixation of pension for civil employees including CAPF personnel, who have retired before 01.01.2016, given two formulations with illustrations for fixing of pension. One for the pensioners retired before 2016 and another one is for the pensioners retired before 2006.

And also recommended, the first formulation of fixing the pension 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. The first instance the revised pension may be calculated as in the second formulation and the same may be paid as an interim measure. In the event calculation as per the formulation of fixing the pension yields a higher amount the difference may be paid subsequently.

And one more important recommendation of option given to the pensioners for choosing whichever is beneficial to them.

Recommendations on fixing of Pension by 7th CPC : 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.

1.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.

2. 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.

Illustration on fixation of pension : Case I : Pensioner ‘A’ retired at last pay drawn of ?79,000 on 30 May, 2015 under the VI CPC regime, having drawn three increments in the scale ?67,000 to 79,000:

Case II : Pensioner ‘B’ retired at last pay drawn of ?4,000 on 31 January, 1989 under the IV CPC regime, having drawn 9 increments in the pay scale of ?3000-100-3500-125-4500:

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Easy steps to Calculate your Basic Pension in 7th CPC

We here illustrate the method through easy 5 Steps to calculate your Basic Pension in 7th CPC Recommendation

Easy steps to Calculate your Basic Pension in 7th Pay Commission

There are Two options have been given to Pensioners

First They have to calculate the Two options and whichever is benefit for them They can select higher amount as their Pension

Option No.1 . The existing Pension may be Multiplied by 2.57

Option No.2 . The Pay Scale on their retirement and Number of increments they earned to be taken for calculation

In that Case they should know their Pay Scale and Basic Pay drawn on the date of their Retirement and number increments they earned

By referring the Corresponding Pay scale in successive Pay Commission, they should identify their Sixth pay commission Pay band. If they Know their corresponding Pay Band in sixth Pay commission then it will be easy for them to arrive their Basic Pension to be fixed in VII pay commission.

After calculating the Basic Pension from the above two options, they can choose whichever is beneficial for them

Calculation for arriving your 7th CPC Basic Pension is described below through 5 Easy Steps

Assume You retired at last pay drawn of ₹4,000 on 31 January, 1989 under the IV CPC regime, having drawn 9 increments in the pay scale of ₹3000-100-3500-125-4500:

Your Basic Pension as revised in VI CPC = 12,543

Calculation Option -I

Step.I

Multiply your Your Basic Pension with 2.57

Basic Pension (VI CPC) x 2.57

= 12543 x 2.57 = 32235.70 ( Paisa to be rounded off rupee)

Your basic Pension As per VII CPC = Rs.32236

Calculation Option-II

Step-II

– Identify your corresponding Pay Level in Pay Matrix

– For that you should know your Pay Band in VI pay commission

[The Pay scale details will be informed you by Concerned Pension Paying Authorities when ever your basic Pension was revised as per the successive Pay commission Recommendation ]

for example for this pay scale of ₹3000-100-3500-125-4500, the corresponding Pay Scale and pay band for Fifth and Sixth CPC respectively is given below

Click here to continue reading…

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