PCDA Circular No.C.164 with Pension Revision Examples

PCDA Circular No.C.164 with Pension Revision Examples

Office of the Pr. Controller of Defence Accounts (Pensions)
Draupadi Ghat, Allahabad – 211014

Circular No.C – 164

No:G1/C/0199/Vol-I/Tech

Dated: 30.05.2017.

(All Head of Department under Min. of Defence)

Subject: Implementation of Govt’s decisions on the recommendations of the Seventh Central Pay Commission-Revision of pension of pre-2016 pensioners/family pensioners, etc.

Reference: – This office important circular no. C-153, bearing no.G1/C/0199/Vol-I/Tech, dated12th August 2016.

[ Available on this office website www.pcdapension.nic.in]

Attention is invited to above cited circular wherein instructions were issued for implementation of GOI, DP&PW OM NO. 38/49/2016-P&PW (A)(ii), dated 04.08.2016.It was provided in the ibid OM that thhe revised pension/family pension w.e.f. 1.1.2016 of pre- 2016 pensioners/family pensioners shall be determined by multiplying the pension/family pension as had been fixed at the time of implementation of the recommendations of the 6th CPC, by 2.57.

2.Now, GOI, Ministry of P, PG and pension, Deptt. of P&PW have issued further orders under their OM No. 38/49/2016-P&PW (A), dated 12.05.2017, which is self – explanatory and is enclosed for guidance and necessary action. The salient points of ibid OM are given in succeeding paras:-

3.Revised pension/ family pension in r/o all Defence Civilianpensioners/family pensioners who retired/ died prior to 01.01.2016, may be revised by notionally fixing their pay in the pay matrix recommended by the 7th CPC in the level corresponding to the pay in the pay scale/pay band and grade pay at which they retired/died. This will be done by notional pay fixation under each intervening Pay Commission based on the Formula for revision of pay. While fixing pay on notional basis, the pay fixation formulae approved by the government and other relevant instructions on the subject in force at the relevant time shall be strictly followed. 50% of the notional pay as on 01.01.2016 shall be revised pension and 30% of this notional pay shall be the revised family pension w.e.f. 1.1.2016.”In the case of family pensioners who were entitled to family pension at enhanced rate, the revised family pension shall be 50% of the notional pay as on 01.01.2016 and shall be payable till the period up to which family pension at enhanced rate is admissible as per rules. The amount of revised pension/family pension so arrived at shall be rounded off to next higher

4.The higher of the two Formulations i.e. the pension/family pension already revised in accordance with this Department’s OM No. 38/37/2016-P&PW (A) (ii) dated 04.08.2016 or the revised pension/family pension as worked out in accordance with Para 3 above, shall be granted to pre-2016 Defence civilian pensioners as revised pension/family pension w.e.f. 01.01.2016. In cases where pension/family pension being paid w.e.f. 1.1.2016 in accordance with this Department’s OM No. 38/37/2016-P&PW (A) (ii) dated 04.08.2016 happens to be more than pension/family pension as worked out in accordance with Para 4 above, the pension/family pension already being paid shall be treated as revised pension/family pension w.e.f. 1.1.2016.

5.Instructions were issued vide GOI, DP&PW OM No. 45/86/97- P&PW (A) (iii) dated 10.02.1998 for revision of pension/family pension in respect of Government servants who retired or died before 01.01.1986, by notional fixation of their pay in the scale of pay introduced with effect from 01.01.1986. The notional pay so worked out as on 01.01.1986 was treated as average emoluments/last pay for the purpose of calculation of notional pension/family pension as on 01.01.1986. The notional pension/family pension so arrived at was further revised with effect from 01.01.1996 and was paid in accordance with the instructions issued for revision of pension/family pension of pre-1996 pensioners/family pensioners in implementation of the recommendations of the 5th Central Pay Commission.

6.Accordingly, for the purpose of calculation of notional pay w.e.f. 1.1.2016 of those Government servants who retired or died before 01.01.1986, the pay scale and the notional pay as on 1.1.1986, as arrived at in terms of the instructions issued vide GOI, DP&PW OM 45/86/97-P&PW (A) dated 10.02.1998, will be treated as the pay scale and the pay of the concerned Government servant as on 1.1.1986. In the case of those Government servants who retired or died on or after 01.01.1986 but before 1.1.2016, the actual pay and the pay scale from which they retired or died would be taken into consideration for the purpose of calculation of the notional pay as on 1.1.2016 in accordance with Para 4 above.

7.The minimum pension with effect from 01.01.2016 will be Rs.9000/- per month (excluding the element of additional pension to old pensioners). The upper ceiling on pension/family pension will be 50% and 30% respectively of the highest pay in the Government. (The highest pay in the Government is Rs. 2, 50,000 with effect from 01.01.2016). The maximum ceiling limit would not be applicable in case of retiree under CCS(Extra Ordinary Pension) Rule.

8.The pension/family pension as worked out in accordance with provisions of Para 3 and 4 above shall be treated as ‘Basic Pension’ with effect from 01.01.2016. The revised pension/family pension includes dearness relief sanctioned from 1.1.2016 and shall qualify for grant of Dearness Relief sanctioned thereafter.

9.The existing instructions regarding regulation of dearness relief to employed/re- employed pensioners/family pensioners, as contained in Department of Pension & Pensioners Welfare O.M. No. 45/73/97- P&PW (G) dated 02.07.1999, as amended from time to time, shall continue to apply.

10.These orders would not be applicable for the purpose of revision of pension of those pensioners who were drawing compulsory retirement pension under Rule 40 of the CCS (Pension) Rules or compassionate allowance under Rule 41 of the CCS (Pension) Rules. The pensioners in these categories would continue to be entitled to revised pension in accordance with the instructions contained in GOI, DP&PWO.M. No. OM No. 38/37/2016-P&PW (A) (ii) dated 4. 8.2016.

11.The pension of the pensioners who are drawing monthly pension from the Government on permanent absorption in public sector undertakings/autonomous bodies will also be revised in accordance with these orders. However, separate orders will be issued for revision of pension of those pensioners who had earlier drawn one time lump sum terminal benefits on absorption in public sector undertakings, etc. and are drawing one-third restored pension as per the instructions issued by GOI, DP&PW from time to time.

12.In cases where, on permanent absorption in public sector undertakings/autonomous bodies, the terms of absorption and/or the rules permit grant of family pension under the CCS (Pension) Rules, 1972, the family pension being drawn by family pensioners will be updated in accordance with these orders.

13. Since the consolidated pension will be inclusive of commuted portion of pension, if any, the commuted portion will be deducted from the said amount while making monthly disbursements.

14.The quantum ofage-related pension/family pension available to the old pensioners/family pensioners shall continue to be as follows