Importance of Option 1 of 7th Pay Commission for Revised Pension

RSCWS explains the advantages of choosing Importance of Option 1 of 7th Pay Commission for Revised Pension

Railway Senior Citizens Welfare Society elaborates advantages for Pre 2016 pensioners in choosing Importance of Option 1 of 7th Pay Commission for Revised Pension

IMPORTANCE OF OPTION 1 OF 7TH CPC FOR REVISED PENSION
– BIG LOSS IN PENSION IF IT IS DENIED

By N. P. MOHAN, President, RSCWS

Most of the Pre 2016 pensioners will suffer heavy loss in Revised Pension, if the Option 1 recommended by the Seventh CPC is denied to them.

It was after 20 years that 7th CPC recommended parity between past pensioners and those retiring after 1-1-2016 under Option 1    which means  consideration of increments earned while in service as detailed in Para 10.1.67 of  the Report. This objective of PARITY (Recommended by Commission after examining all factors in depth in Chapter 10) is fulfilled  only with  the  implementation  of  option  1  without  any  dilution/deviation.  Non implementation of option 1 on the plea of non availability of record in a few cases will have the following adverse effects:

i)    Pre 2006 pensioners, in particular, who are victim of modified parity will suffer a much bigger loss compared to the post 2006 retirees because in their case the basic pension which is multiplied by 2.57 in the interim phase takes into accounts their increments before retirement. This aspect has been examined in the case of Pre & Post S 19 pensioner as an example. From the Table 1 given below, it will be clear that  the  reduction  in  pension  for  post  2006  pensioner  is  of  a  uniform  small magnitude as compared to the loss increasing exponentially with each increment lost in case of pre 2006 pensioner. Similar is the case in other scales also
ii)  7th   CPC  has  considered  pre  2016  pensioners  as  one  homogeneous  group  (Para10.1.53 refers). It means that all pre 2016 pensioners have to be treated alike. But with denial of option 1, pre 2016 pensioners will get divided into two groups i.e. Pre 2006 and Post 2006 Pensioners – which violates the settled law of equality between the equals.

iii) In  many  cases,  Option  3  gives  much  lower  pension compared  to  option  1 recommended  by  7th   CPC.  This will  be  clear  from  Table  2  below.  Where  a comparison has been made between two options.

Enlcs: 2 Tables

Source : RSCWS