7th CPC: Feasibility of Implementation of Option I of 7th CPC Recommendations on Revision of Pension of Pre 2016 Pensioners: Memorandum to Committee

Memorandum submitted by RSCWS to the Committee on Feasibility of implementation of Option I of 7th CPC Recommendations on Revision of Pension of Pre 2016 Pensioners


(Estd. 1991, Regd. No. 1881 – Under Registration of Societies Act), Website http://rscws.com IDENTIFIED & RECOGNISED BY MINISTRY OF PENSION & PENSIONERS’ WELFARE (DOP&PW)

N.P. Mohan, EX CE/WR
President, RSCWS
Email: npmohan34@gmail.com

Harchandan Singh, 
Secretary General, RSCWS
Email : rscws1991@gmail.com

No. RSCWS/ HO / 7th CPC/2016-14

Dated: 24 -8-2016

1. Chirravuri Viswanath Secretary, GOI, Department of Pension, Patel Bhawan, New Delhi-110001

2. Shri Pradeep Kumar, Member (Staff), Railway Board, Rail Bhawan New Delhi - 110001

3. Shri Ashok Kumar Dash, Member (Staf,f), Deptt .of Post, Sanchar Bhawan, Sansad Marg, New Delhi 110001

4. Ms Sanjeevanee Kutty, Additional Secretary & Finance Advisor MOH, North Block, New Delhi - 110001

5. Shri MJ Joseph, Controller General of Accounts, MOF, Lok Nayak Bhawan, Khan Market, New Delhi - 110 511

For kind consideration of the Committee on Feasibility of implementation of Option I of 7th CPC Recommendations on Revision of Pension

Dear Sir,

Subject: Parity of Pension of Pre & Post Seventh CPC Pensioners

Regarding: Feasibility of implementation of Option I of Para 10.1.67 of 7th CPC Report

Reference: Para 11 of Resolution of GOI on 7th CPC Report on Pensionary Benefits of Pre-2016 Pensioners issued vide DOP&PW orders No.38/37/2016-P&PW (A) dated 4-8-2016 – Reg. Parity of Pension of Pre & Post 7th CPC.

1. Seventh Pay Commission had recommended as under vide Para 10.1.67 of its Report:

(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 I 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.

2. Government of India had decided as under vide Para 11 of its Resolution cited above:

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 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

3. Our submissions: We have to make the following submissions for the kind consideration of the Committee on Feasibility of implementation of Option I Reg. Revision of Pension:

i) All the Pensioners are deeply hurt and constrained to know that doubts have been raised about the feasibility of implementation of the above said recommendation.

ii) This is a very vital recommendation of the 7th CPC and should not be ignored or diluted particularly since such a just recommendation has been made by a Commission for the past pensioners who had to be content with insignificant improvement in pension in the shape of modified parity during the last two decades after the 5th & 6th Pay Commission.

iii) Parity of Pension between past & future Pensioners is a legal requirement as per settled law – as mentioned by the 7th CPC in Para 10.1.62 & 10-1-63 of its Report.

iv) Seventh CPC (vide Para 10.1.53 to 10.1.71 of its Report) had examined the matter comprehensively to rectify the existing anomalous situation.

v) Government had accepted the recommendations of the 7th CPC in principle. The only issue is regarding feasibility of implementation.

v) If Service Records are not available for old Pensioners, then Pension Records and PPOs are available and the Parity should be granted based on the available data therein.

4. Feasibility of implementation of parity of Pension:

Option 1 for Parity of Pension of Pre & Post Seventh CPC Pensioners, is very much implementable in view of the following reasons:

a) Revision of Pension of Pre-1986 Pensioners as per recommendation of the Fifth Pay Commissions (made vide Para 137.14 of V CPC Report) - was done based on the available Records of the Pre-1986 Pensioners.

b) Modified Parity had been granted to Pre-1996 & Pre-2006 Pensioners as per Recommendation of the Fifth and Sixth Pay Commissions respectively and the revision of Pension, was done accordingly - based on the available Records of the affected Pensioners.

c) Pension Records / Pension Papers & PPOs of all the Pensioners are available with all concerned Offices - as these are not to be destroyed till “5 years after the date on which the Pension becomes inoperative”- as per APPENDIX IX (See Paragraph 121) of Indian Railways Accounts Code Reg. “PERIOD FOR WHICH RECORDS IN ACCOUNTS OFFICES ARE TO BE RETAINED” (on the Railways. Similar orders would be there for other Departments as these have to be the same for all Centre Govt. Departments).

d) Any further information can also be asked for from the Pensioners / Family Pensioners concerned through a Notification in the Print Media, asking for the requisite information as was done by some Zones on the Railways after Sixth CPC. 

e) Requisite data can be built up on the basis of the Last Pay Drawn and the Pay Scale of the Post from which the Pensioner retired as indicated in the Pension Record / Pension Papers & PPOs.

5. The concerned staff may please be paid the Honorarium or Incentive for the extra work of expeditiously preparing the Revised PPOs and for re-building old records and requisite data for the purpose – as was done after the Fifth CPC etc.

6. In view of the above submissions, we request the Committee to please recommend that implementation of Option 1 is feasible – as given in Para 10.1.67 of the Report of 7th CPC and the same may be based on the information available in the PPOs and other related Records of the Pensioners which invariably show the last Pay Drawn (LPD) and Pay Scale from which the Pensioner Retired and the number of Increments earned can be worked out based on the same to determine the Notional Pay in the Pay Matrix of the 7th CPC as approved by the Government and to revise the Pension accordingly.

Thanking you in anticipation,
Yours faithfully,

(Harchandan Singh)
Secretary General, RSCWS



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