May 15, 2017

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7th CPC Pension Calculation for Pre-2016 Pensioners

Written By Admin on May 15, 2017 | May 15, 2017

IMPLEMENTATION OF GOVERNMENT DECISION ON THE RECOMMENDATIONS OF SEVENTH CENTRAL PAY COMMISSION (7TH CPC) - REVISION OF PENSION OF PRE-2016 PENSIONERS/FAMILY PENSIONERS (Click the link below to view)

What the above decision means for pre-2016 retirees?

Modification made appears fixing the pay of pre 2016 retirees notionally in revised pay matrix and then fixing pension at 50% of pay. If the pension so fixed is more than the pension fixed with fitment formula of 2.57 then pension will be revised otherwise no change. It is presumed that option will be given to pensioners. For arriving at pay in revised matrix of 7 CPC for those who retired prior to 1-1-1996 notionally there pay will be fixed under V CPC scales and VI CPC Pay structure. Similarly for those who retired prior to 2006 it will be notionally fixed in VI CPC Pay structure and then in 7 CPC matrix. The pay for this purpose is pay last drawn as recorded in their PPO. For the information of readers fixation formula under V CPC, VI CPC and VII CPC rules is given below:

V CPC:
1 Basic pay as on 1-1-1996 xxx
2 DA appropriate to basic pay at 1510 pts Xxx
3 I IR 100
4 2nd IR 10% of BP subject to minimum of Rs.100 Xxx
5 40% of BP Xxx
6 Total xxx

  • Pay in the revised scales to be fixed at the stage next above the total even if there is stage equal to the total.
  • Rates of DA as on 1-1-1996

For pay range upto Rs.3500pm 148% of pay
For pay range above Rs.35oo and upto 6000 pm 111% of pay subject to a minmum of Rs.5180 pm
For pay range above Rs.6000 pm 96% of pay subject to minimum of Rs.6660 pm

 VI CPC
1 Existing pay scale x
2 Applicable pay band and grade pay a+b
3 Basic pay as on 1-1-2006 xxx
4 Pay after multiplication of BP by a factor 1.86 rounded off to next multiple of 10 Xxx
5 Pay in the pay band Xxx
6 Grade Pay applicable to the post b
7 Revised basic pay is pay in the pay band and grade pay.
Xxx +b

VII CPC

1 Existing Pay Band a
2 Existing Grade Pay a+b
3 Basic pay as on 1-1-2016 Xxx+b
4 Level corresponding to GP C
5 Pay after multiplication of BP by a fitment factor of 2.57 Xxx
6 Revised Pay in Pay Matrix (either equal to or next higherCell Xxx

Illustration:
‘X retired on 31-1-1992 and pay was Rs. 2900 in the scale 1640-2900
1.      His notional pay under 5 CPC scale of 6500-10600 is Rs.8900;
2.      His notional pay under 6 CPC (PB2 +GP 4200) is Rs.20760;
3.      His notional pay under 7 CPC (Level 6) is Rs.53600;
4.      Pension fixed on 1-1-2016 with a fitment formula of 2.57 is Rs.25847;
5.      Pension as per cabinet deciscion 50% of notional pay as per 7 CPC is Rs 26800.
Note: The above example is only an illustration.    
The pension fixation may vary from case to case. Final calculation has to be made as per the  Government orders. 
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