Press Information Bureau
Government Of India
Government Of India
Cabinet
(03-May, 2017 20:27 IST )
(03-May, 2017 20:27 IST )
Cabinet approves modifications
in the 7th CPC recommendations on pay and pensionary benefits
The Union Cabinet chaired by the
Prime Minister Shri Narendra Modi approved important proposals relating to
modifications in the 7th CPC (Central Pay Commission) recommendations on pay
and pensionary benefits in the course of their implementation. Earlier, in
June, 2016, the Cabinet had approved implementation of the recommendations with
an additional financial outgo of Rs 84,933 crore for 2016-17 (including arrears
for 2 months of 2015-16).The benefit of the proposed modifications will be available with effect from 1st January, 2016, i.e., the date of implementation of 7th CPC recommendations. With the increase approved by the Cabinet, the annual pension bill alone of the Central Government is likely to be Rs.1,76,071 crore. Some of the important decisions of the Cabinet are mentioned below:
1. Revision of pension of pre – 2016 pensioners and family pensioners
The Cabinet approved modifications
in the recommendations of the 7th CPC relating to the method of revision of
pension of pre-2016 pensioners and family pensioners based on suggestions made
by the Committee chaired by Secretary (Pensions) constituted with the approval
of the Cabinet. The modified formulation of pension revision approved by
the Cabinet will entail an additional benefit to the pensioners and an
additional expenditure of approximately Rs.5031 crore for 2016-17 over and
above the expenditure already incurred in revision of pension as per the second
formulation based on fitment factor. It will benefit over 55 lakh pre-2016
civil and defence pensioners and family pensioners.
While approving the implementation
of the 7th CPC recommendations on 29th June, 2016, the Cabinet had approved the
changed method of pension revision recommended by the 7th CPC for pre-2016
pensioners, comprising of two alternative formulations, subject to the
feasibility of the first formulation which was to be examined by the Committee.
In terms of the Cabinet decision,
pensions of pre-2016 pensioners were revised as per the second formulation
multiplying existing pension by a fitment factor of 2.57, though the pensioners
were to be given the option of choosing the more beneficial of the two
formulations as per the 7th CPC recommendations.
In order to provide the more
beneficial option to the pensioners, Cabinet has accepted the recommendations
of the Committee, which has suggested revision of pension based on information
contained in the Pension Payment Order (PPO) issued to every pensioner.
The revised procedure of fixation of notional pay is more scientific, rational
and implementable in all the cases. The Committee reached its findings
based on an analysis of hundreds of live pension cases. The modified
formulation will be beneficial to more pensioners than the first formulation
recommended by the 7th CPC, which was not found to be feasible to implement on
account of non-availability of records in a large number of cases and was also
found to be prone to several anomalies.
2. Disability
Pension for Defence Pensioners
The Cabinet also approved the
retention of percentage-based regime of disability pension implemented post 6th
CPC, which the 7th CPC had recommended to be replaced by a slab-based system.
The issue of disability pension was referred to the National Anomaly Committee by the Ministry of Defence on account of the representation received from the Defence Forces to retain the slab-based system, as it would have resulted in reduction in the amount of disability pension for existing pensioners and a reduction in the amount of disability pension for future retirees when compared to percentage-based disability pension.
The issue of disability pension was referred to the National Anomaly Committee by the Ministry of Defence on account of the representation received from the Defence Forces to retain the slab-based system, as it would have resulted in reduction in the amount of disability pension for existing pensioners and a reduction in the amount of disability pension for future retirees when compared to percentage-based disability pension.
The decision which will benefit
existing and future Defence pensioners would entail an additional expenditure
of approximately Rs. 130 crore per annum.
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AKT/VBA/SH
(Release ID :161508)
Source : http://pib.nic.in/newsite/mbErel.aspx?relid=161508
