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Thread: Pension Fixation Anomaly - 7th Pay Commission

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    Junior Member aruntalwar is on a distinguished road
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    Default Pension Fixation Anomaly - 7th Pay Commission

    Please refer to P&PW letter F. No.38/37/2016-P&PW (A) (ii) dated the 4th August, 2016 on the subject mentioned above.

    Para 4.1 of the letter reads as below:

    “For existing pensioners, who have retired before 01/01/2016, the revised pension/family pension with effect from 01/01/2016 shall be determined by multiplying the pension/family pension, as had been fixed at the time of implementation of 6th Central Pay Commission (CPC) recommendations, by 2.57. The amount of pension/family pension so arrived at shall be rounded off to the next higher rupee.

    …………………………………………………………………………………
    …………………………………………………………………………………
    Illustration
    Case -II
    Pensioner ‘B’ retired at last pay drawn of Rs.4000 on 31st January, 1989 under the 4th CPC regime in the pay scale of 3000-100-3500-125-4500:

    Amount in Rs.
    1. Basic Pension fixed in 4th CPC 1940
    2. Basic Pension as revised in 6th CPC 12600
    3. Revised Pension fixed under 7th CPC (using a multiple of 2.57) 32,382

    The revised Basic Pension, as per above 4.1 above, in case of pensioner ‘B’ will be Rs.32,382 w.e.f. 01/01/2016 after implementation of 7th CPC.

    This contradicts the contents of the Resolution as per Gazette Notification No.1-2/2016-IC dated the 25thJuly, 2016 of the Ministry of Finance, Department of Expenditure, Govt. of India on implementation of the 7th CPC recommendations.

    As per PAY MATRIX under Annexure-1 of the Resolution, the Revised Pay at Level-1 of the Pay Scale corresponding to the 6th CPC Pay Band of 15600-39100 with Grade Pay of Rs.6600 will be Rs.67,700. As a result the minimum pension in the 7th CPC Pay Scale corresponding to the 6th CPC of Pay Band of 15600-39100 with Grade Pay of Rs.6600 will be Rs.33,850 (50% of 67,700).

    When the Minimum Pension in this scale in 7th CPC has to be Rs.33,850 as per the said RESOLUTION, the Revised Pension fixed as Rs.32,382 under 7th CPC (using a multiple of 2.57) in accordance with the Government of India OM dated the 4th August, 2016 needs to be revised upwards so that it matches with at least that corresponding to Level-1 of the PAY MATRIX under Annexure-1 of the Resolution notified by the Ministry of Finance.

    Same may be true for other pay scales too.
    Last edited by aruntalwar; 19-08-2016 at 10:34 PM. Reason: Full text of Post had not appeared due reasons not known

  2. #2
    Junior Member kamalakannan is on a distinguished road
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    Unhappy Pension fixationrs.13950

    In the pay matrix for the grade pay rs.4800 the minimum pay is mentioned as rs.18150 where as per 6th pay commission the minimum pay works out to rs.18750(rs.13950+rs.4800=rs.18750).consequently the minimum pay in the matrix should be rs.49125(18750x2.62=49125)and not rs.47600 indicated in the matrix.this mistake has to be rectified otherwise the rs.4800 grade pay employees will not get correct fixation from 01-01-2016 as well as the pensioners.
    Union leaders may be appraised of this for rectification.
    Sd.kamalakannan

  3. #3
    Junior Member pratap singh negi is on a distinguished road
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    Quote Originally Posted by kamalakannan View Post
    In the pay matrix for the grade pay rs.4800 the minimum pay is mentioned as rs.18150 where as per 6th pay commission the minimum pay works out to rs.18750(rs.13950+rs.4800=rs.18750).consequently the minimum pay in the matrix should be rs.49125(18750x2.62=49125)and not rs.47600 indicated in the matrix.this mistake has to be rectified otherwise the rs.4800 grade pay employees will not get correct fixation from 01-01-2016 as well as the pensioners.
    Union leaders may be appraised of this for rectification.
    Sd.kamalakannan
    As per 6th pay commission the minimum pay works out to Rs.18150(13350+4800=18150) . I think in this case rectification in 7CPC Pay Matrix is not required .

  4. #4
    Junior Member kamalakannan is on a distinguished road
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    Quote Originally Posted by pratap singh negi View Post
    as per 6th pay commission the minimum pay works out to rs.18150(13350+4800=18150) . I think in this case rectification in 7cpc pay matrix is not required .
    sir,your contention is not correct.as i have retired in scale rs.7500-12000 my minimum pension as on 01-01-2006 has been fixed at rs.9375 per month and therefore the minimum pay works out to rs.9375x2=rs.18750 as per 6th pay commission and my posting is 100% correct and your contention is at fault.

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    Junior Member pratap singh negi is on a distinguished road
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    Quote Originally Posted by kamalakannan View Post
    sir,your contention is not correct.as i have retired in scale rs.7500-12000 my minimum pension as on 01-01-2006 has been fixed at rs.9375 per month and therefore the minimum pay works out to rs.9375x2=rs.18750 as per 6th pay commission and my posting is 100% correct and your contention is at fault.
    Mr. Kamalakaranan ji , Your pension revised in 6CPC from 01-01-2006 was not minimum , You must have been retired after earning 6 (6 ) increment in the pay scale 7000-250-12000. Your last basic pay drawn must be 8500 and for pension calculation last 10 monthly average maybe 8296 that's why your pension revised to Rs. 9375 PM wef 01-01-2006. Kindly do not consider your pension to determine entry pay under grade pay 4800 in 7 CPC pay Matrix . Minimum entry pay 18150 for grade pay 4800 is very much correct and not required any rectification. Now as per OPtion 2 of pension revision in 7 CPC your pension will be revised to Rs. 23800 wef 01-01-2016 and if Option 1 is accepted by the government than you will get benefit of 6 increments earned by you in the retiring pay scale / grade and your pension will be revised to Rs. 28450 PM wef 01-01-2016 .
    Last edited by pratap singh negi; 26-08-2016 at 12:44 PM.

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    Junior Member pratap singh negi is on a distinguished road
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    Quote Originally Posted by pratap singh negi View Post
    Mr. Kamalakaranan ji , Your pension revised in 6CPC from 01-01-2006 was not minimum , You must have been retired after earning 6 (6 ) increment in the pay scale 7000-250-12000. Your last basic pay drawn must be 8500 and for pension calculation last 10 monthly average maybe 8296 that's why your pension revised to Rs. 9375 PM wef 01-01-2006. Kindly do not consider your pension to determine entry pay under grade pay 4800 in 7 CPC pay Matrix . Minimum entry pay 18150 for grade pay 4800 is very much correct and not required any rectification. Now as per OPtion 2 of pension revision in 7 CPC your pension will be revised to Rs. 24094 wef 01-01-2016 and if Option 1 is accepted by the government than you will get benefit of 6 increments earned by you in the retiring pay scale / grade and your pension will be revised to Rs. 28450 PM wef 01-01-2016 .
    Please read As per Option 2 Your pension will be revised to Rs. 24094 Pm wef 01-01-2016

  7. #7
    Junior Member kamalakannan is on a distinguished road
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    DEAR MR.PRATAP SINGH NEGI .YOUR POSTING IS ALL WRONG.I RETIRED ON 28-2-1997 AS ASST .CONTROLLER OF STORES IN S-14 SCALE OF RS.7500-12000 WITH GRADE PAY OF RS.4800 AND MY LAST DRAWN PAY IS RS.7750 WITH ONE INCREMENT ONLY.PLEASE CHECK THE S-14 SCALE WHERE THE MINIMUM PAY IS RS.7500 AND NOT RS 7000 POSTED BY YOU.BUT THE AUTHORITIES FIXED MY PENSION AT THE BOTTOM OF THE SCALE OF RS.7500 AT RS .9375 INSTEAD OF RS 9610 FOR THE ONE INCREMENT AS PER THE FITMENT TABLES ANNEXED WITH OM NO:1/1/2008-IC DATED 30-8-2008.WHEN REPRESENTED THEY INFORMED ME THAT THE FITMENT TABLES ARE APPLICABLE FOR POST-2006 SERVING EMPLOYEES AND NOT FOR THE PRE-2006 PENSIONERS.
    IF YOU CAN FIND ANY OM OR ORDER STATING THAT THE FITMENT TABLES ARE APPLICABLE FOR PRE-2006 PENSIONERS KINDLY POST THE SAME AT THIS SITE OR SEND E-MAIL TO MY ID:[email protected] for which act i will be most greatful to you

  8. #8
    Junior Member pratap singh negi is on a distinguished road
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    Quote Originally Posted by kamalakannan View Post
    DEAR MR.PRATAP SINGH NEGI .YOUR POSTING IS ALL WRONG.I RETIRED ON 28-2-1997 AS ASST .CONTROLLER OF STORES IN S-14 SCALE OF RS.7500-12000 WITH GRADE PAY OF RS.4800 AND MY LAST DRAWN PAY IS RS.7750 WITH ONE INCREMENT ONLY.PLEASE CHECK THE S-14 SCALE WHERE THE MINIMUM PAY IS RS.7500 AND NOT RS 7000 POSTED BY YOU.BUT THE AUTHORITIES FIXED MY PENSION AT THE BOTTOM OF THE SCALE OF RS.7500 AT RS .9375 INSTEAD OF RS 9610 FOR THE ONE INCREMENT AS PER THE FITMENT TABLES ANNEXED WITH OM NO:1/1/2008-IC DATED 30-8-2008.WHEN REPRESENTED THEY INFORMED ME THAT THE FITMENT TABLES ARE APPLICABLE FOR POST-2006 SERVING EMPLOYEES AND NOT FOR THE PRE-2006 PENSIONERS.
    IF YOU CAN FIND ANY OM OR ORDER STATING THAT THE FITMENT TABLES ARE APPLICABLE FOR PRE-2006 PENSIONERS KINDLY POST THE SAME AT THIS SITE OR SEND E-MAIL TO MY ID:[email protected] for which act i will be most greatful to you
    Sorry , you are right pay scale was 7500-250-12000. 6 increments calculated by me because you stated that your pension was revised to Rs.9375 PM wef 01-01-2006. Your last pay drawn was 7750 than your revised pension on implementation of 6 CPC comes to Rs. 9075 ie. 50 % of minimum pay in the pay band plus grade pay ( 13350 +4800 = 18150 ). In the amount Rs.9375 Rs.300 may be of medical assistance . 7 CPC Pay matrix is applicable also to pre 01-01-2016 pensioners. It is applicable if Option 1 for pension revision is made applicable by the Govt.


    7th CPC recommendation on pension revision
    --------------------------------------------------------------------
    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.
    (i) 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.
    Pensioners may be given the option of choosing whichever formulation is beneficial to them.
    It is recognised 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.
    Illustration on fixation of pension based on recommendations of the Seventh CPC.
    Case I
    10.1.70 Pensioner

  9. #9
    Junior Member kamalakannan is on a distinguished road
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    Dear mr.pratap singh negi.i really appreciate your reply.for my one increment in scale rs.7500-12000 i did not get the benefit of modified parity in my pension ordered by cat/pb in their order dated 01-11-2011.the authorities refuse to give benefit saying that the fitment tables annexed with om no :1/1/2008-ic dated 30-8-2008 is not applicable to me.hence there is a loss of rs.235 per month in my basic pension from 01-01-2006 to 31-12-2015 with applicable dr.

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