Cabinet accepts two options for fixation of 7th CPC Revised Pension

Cabinet accepts both two options for fixation of 7th CPC Revised Pension

7th CPC Recommended following Two options for fixation of Revised Pension.

1. Pay Scale on Retirement and Number of Increment Earned in the scale of Retiring Grade will be taken for fixation of Pension

In this method Pension will be fixed in the Pay Matrix on the basis of the Pay Band and Grade Pay at which they retired [ SEE ]

2. Using Multiplication Factor 2.57

Existing Basic Pension to be multiplied by 2.57 [ SEE ]

When the NJCA met the Cabinet Secretary, they observed that Govt is not going to accept second option due to non-availability of Records to verify their Pay Level at the retiring stage. Objections were raised by Pensioners Association to this move and they requested the government to retain both two options to avoid disparity between Pre 2016 and Post 2016 Pensioners.

The Central government in principle accepted the two options recommended for fixation of Revised Pension. But to address the issues anticipated when implementation in process, govt decided to constitute a committee to examine the feasibility of using First Option for fixation of Pension. It said, if found feasible, it will be implemented. The Committee has been given four months’ time to submit its report.

The govt decision on Pension related issues is given below

“The general recommendations of the Commission on pension and related benefits have been approved by the Cabinet. Both the options recommended by the Commission as regards pension revision have been accepted subject to feasibility of their implementation. Revision of pension using the second option based on fitment factor of 2.57 shall be implemented immediately. A Committee is being constituted to address the implementation issues anticipated in the first formulation. The first formulation may be made applicable if its implementation is found feasible after examination by proposed Committee which is to submit its Report within 4 months.”

SEE : Calculate your Basic Pension in 7th Pay Commission

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3 thoughts on “Cabinet accepts two options for fixation of 7th CPC Revised Pension”

  1. As per post of Shri Gupta Member CBDT, available on the net, it appears that benefit of post upgradation is not available. Only scale upgradation benefit is available. Hence pension will be fixed as per GP 4200/- and not 4600/-. That’s the reason this option 1 is being touted as One Scale One Pension (OSOP) and not the OROP (One Rank One Pension) in real sense.

    However the mechanism devised by 7th Pay Commission for implementation of OSOP is so faulty that one feels pity about the Commission. Such a shoddy job of formulation of Option 1, as in present form, is just beyond comprehension.

    With option 1 of Pension fixation, nearly every pensioner ‘A’ can find a colleague or a little junior ‘B’ who didn’t get the last promotion of “A’ and hence retired in a grade lower than ‘A’. Not being promoted, ‘B’ earns a large number of increments in his retirement grade, and invariably gets fixed at higher pension as compared to ‘A’, through option 1.

    Because of junior drawing a higher pension, ‘A’ has to approach anomalies committee for stepping up his pension to that of ‘B’. ‘A’ who was ahead of ‘B’ in pension, has to beg for parity with ‘B’ now. Nearly every pensioner will be going through this harrowing experience due to faulty Option 1 ie OSOP. An option which creates only anomalies, needs to be revised to eliminate the root cause of these anomalies.

    Upward mobility envisaged by present option 1 is certainly welcome. However stepping up as a solution for sorting out junior – senior anomalies has even been frowned upon by the supreme court. In view of this a revised option 1 which provides a balanced upward mobility for juniors as well as seniors shall be highly welcome.

    Not very sure that the govt. is yet appreciating these concerns about eliminating the root cause of widespread anomalies. Cabinet has forwarded option 1 to a review committee for implementation feasibility. Hope, they don’t look at implementation feasibility only as problem of availability of old records, but come out with a satisfactory revision which doesn’t demean most of the pensioners by grading them to the level of their juniors.

  2. you should have mentioned basic pension prior to 2006 so as to fix BP in both 2006 & 2016

  3. What will be position in fixation of pension when employee promoted in scale Rs. 6500 10500 W.E.f 01.10.2003 and this post upgraded to GP Rs.4600w.E.f 01.01.2006 where as corresponding GP is Rs. 4200 as per 6th CPC

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