7th Pay Commission Pension – Govt issues revised Pension Orders

7th Pay Commission Pension – Govt issues revised Pension Orders for implementation of 7th Pay Commission recommendations relating to Pension, Family Pension, Gratuity, Commutation etc

After nearly a fortnight, the Union government has cleared the revised pension benefits as recommended by the 7th Pay Commission.

An order of the Department of Personnel, Public Grievances & Pensions late on Thursday night said that the benefits stand revised from January 1, 2016.

The calculation

The pension shall be calculated 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.

In case, a pensioner ‘A’ retired at last drawn pay of Rs. 79,000 on May 31, 2015 under the 6th CPC regime in the scale of Rs. 67,000-79,000 and the basic pension fixed in 6th CPC being Rs. 39,500, the revised pension under the 7th CPC (using a multiple of 2.57) would be Rs. 1,01,515

In case II, if a pensioner ‘B’ retired at last drawn pay of Rs. 4,000 in January, 1989 under the 4th CPC regime in the pay scale of Rs. 3,000-100-3,500-125-4,500, the basic pension fixed in the 4th CPC being Rs. 1,940, which was revised in the 6th CPC to Rs. 12,600, the revised pension would be Rs. 32,382 (using a multiple of 2.57).

For old pensioners

The order said the existing pension/family pension will be the basic pension/family pension only without the element of additional pension available to the old pensioners/family pensioners of the age of 80 years and above.

The additional pension/family pension payable to the old pensioners/family pensioners will be worked out in accordance with norms under the consolidated pension – and if it is inclusive of the commuted portion of pension, then the commuted portion will be deducted from the said amount while making monthly disbursements.

The minimum pension has been fixed at Rs. 9,000 per month (excluding the element of additional pension to old pensioners). The upper ceiling on pension/family pension will be 50 per cent and 30 per cent respectively of the highest pay in the government (The highest pay in the Government is Rs. 2, 50,000 with effect from January 2016).

Quantum of pension

The quantum of pension/family pension to the old pensioners/ family pensioners shall continue as follows. From 80 years to less than 85 years 20 per cent of the revised basic pension, from 85 years to less than 90 years 30 per cent of the same, 90 years to less than 95 years 40 per cent of the same, 95 years to less than 100 years 50 per cent of the same and 100 years or more 100 per cent of the revised basic pension.

Gratuity ceiling increased

Under the revised rates fixed by the Centre, as per the recommendations of the 7th Pay Commission, the maximum limit of retirement gratuity and death gratuity will be Rs. 20 lakh.

According to a release from the Department of Pensions, the ceiling on gratuity will increase by 25 per cent whenever the dearness allowance rises by 50 per cent of the basic pay.

The rates for payment of death gratuity have been fixed on the basis of length of qualifying service. The rate of death gratuity in cases of less than one year of service will be two times of monthly emoluments.

Source: The Hindu