Appeal for Restoration of Option 1 recommended by 7th CPC for Pre-2016 Pensioners

Appeal for Restoration of Option 1 recommended by 7th CPC for Pre-2016 Pensioners

An appeal has been made by RSCWS to the Government to restore the Option 1 recommended by 7th CPC for revision f Pension of Pre-2016 Pensioners. It has mentioned in its appeal to Prime Minister that Option 1 was very much feasible to implement as recommended by 7th CPC for revision of Pension of old Pension since according to the survey conducted by the DOP&PW, it was accepted that the Service Records of over 80% of old Pensioners were available. The copy of the Appeal is given below..

7th cpc Pension Option 1

No. RSCWS/ HO / 7th CPC/2017-16

Dated: 23rd August, 2017

Shri Narindera Modi, Hon. Prime Minister India, 152, South Block, New Delhi-110001
Shri Arun Jaitley, Hon. Minister of Finance, Govt. of India, North Block, New Delhi-110001
Shri Jitendra Singh, Hon. MOS Personnel, PG & Pension, GOI, North Block, New Delhi-110001

Dear Sir,

Subject: Appeal for restoration of Option 1 recommended by 7th Central Pay Commission for Revision of Pension of Pre-2016 Pensioners – For Parity of Pension between Pre & Post-2016 Central Government Pensioners

Reference: i) DOP&PW OM No.38/37/2016-P&PW(A) dated 12th May, 2017 & 6th July, 2017 ii) Para 10.1.67 of 7th CPC Report for grant of Parity of Pension of Pre & Post Seventh CPC Pensioners

1.We draw your kind attention to the sad plight of large majority of Central Government Pensioners – especially the Pre-2006 Pensioners and more so the Pre-1996 Pensioners, who will suffer a major financial loss in fixation of their Revised Pension on account of an unjust decision on implementation of 7th CPC Report vide DOP&PW OM dated 12-5-2017 cited above.

2.The Seventh Central Pay Commission (CPC) in Para 10.1.67 & 10.1.68 of its Report had for the first time conceded the long pending demand of the Central Government Pensioners for Parity of Pension between the Pre and Post CPC Pensioners and had recommended the following pension formulation for civil employees including CAPF personnel who had retired before 01.01.2016:

Appeal for Restoration of Option 1 recommended by 7th CPC for Pre-2016 Pensionersi) All the Civilian personnel including CAPF who retired prior to 01.01.2016 (expected date of implementation of the Seventh CPC recommendations) shall first be fixed in the Pay Matrix being recommended by this Commission, on the basis of the Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the matrix. This amount shall be raised, to arrive at the notional pay of the retiree, by adding the number of increments he/she had earned in that level while in service, at the rate of three percent. Fifty percent of the total amount so arrived at shall be the revised pension.

ii) The second calculation to be carried out is as follows. The pension, as had been fixed at the time of implementation of the VI CPC recommendations, shall be multiplied by 2.57 to arrive at an alternate value for the revised pension.

iii) Pensioners be given option of choosing whichever formulation is beneficial to them.

3.Option 1, cited above, was very much feasible to implement as recommended by 7th CPC for revision of Pension of old Pension since according to the survey conducted by the DOP&PW, it was accepted that the Service Records of over 80% of old Pensioners were available, while those of the others could be re-built as per procedure prescribed in the Rules and as was done after 5th & 6th CPC and as per orders of the Courts in numerous cases.

4.Regrettably, the Committee formed by the Government, to consider the feasibility of implementation of Option 1 recommended by the Seventh CPC, while finding it non-feasible, did not care for the interest of the more than 80% of the Pensioners merely to save the Administration from the botheration of Re-building the Service Records of the rest less than 20% Pensioners. This was a great injustice since the 80% of the Pensioners who’s Records are available, shall suffer a loss of Pension just because of missing records of the rest 20%.

5.Instead, the Government accepted the following formula vide OM Dated 12-5-2017, as recommended by the Committee on Feasibility of Option 1:

“the revised pension/family pension w.e.f. 01.01.2016 in respect of all Central civil pensioners/family pensioners, including CAPF’s, 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 the revised pension and 30% of this notional pay shall be the revised family pension w.e.f. 1.1.2016 as per the first Permutation.”

6) The above said formula will very seriously and adversely affect the Revised pension of a large majority of the Pre-2016 Pensioners on account of following reasons:

a) “Parity of Pension” between Pre and Post-2016 Pensioners – recommended by the Seventh CPC – would be denied to the Pre-2016 Pensioners.

b) In the process of notional pay fixation in successive Pay Commissions, there is a lot of dilution particularly for pensioners who retired in 4th CPC period resulting in big financial loss.

c) Irrespective of the date of retirement, Option 1 would have given the same pension to pre-2016 pensioners depending upon the number of increments earned in the last Level. By denying option 1 there will be sub-groups even within the homogenous group of pre-2016 pensioners.

d) None of the above losses would occur to the Pre-2016 Pensioners if the Option 1 recommended by the 7th CPC is implemented and if the new formula is allowed as a 3rd Option in addition to Option 1 & 2 Recommended by the 7th CPC in the interest of natural justice to all Pre-2016 Pensioners.

2. It is, therefore, requested that the Pension of Pre-2016 Pensioners be fixed at the highest of the 3 Options – including first two Options as recommended by 7th CPC and 3rd Option as accepted by the Government and Notified vide DOP&PW OM Dated 12-5-2017.

Hoping for a favourable consideration & thanking you in anticipation. With kind regards,

Yours faithfully,

(Harchandan Singh)

Source : RSCWS

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6 thoughts on “Appeal for Restoration of Option 1 recommended by 7th CPC for Pre-2016 Pensioners”

  1. The increment earned for family planning incentive shall also be taken in the concordance table calculation for pre2006 pensioners.
    This may compensate to some. Extent.

  2. Satyanarayana

    At least on humanitarian grounds the PM should concede restoring the original option-I as recommended by 7th CPC. Most of the beneficiaries under this scheme are very senior pensioners ,over 80 years, as they all belong to 4th CPC regime. At that time their pay scales were too low, and therefore their pensions are also less when compared to the present retirees. At that time the benefit of ACP or MACP was not available and they were drawing less pay. Moreover in view of advanced age their further life expectancy is any body’s guess and the extra expenditure on enhanced pension would not be for a long time.Hence the original Option- I can be restored.

  3. 1st January anamoly:

    Now Arunachal Pradesh Govt decided to enhance the retirement age from 58 to 60 wef 01/01/2018.
    Those who are having DOB 1st Jan. will retire on 31st Dec.2017. Those are having 2nd Jan. onwards are eligible for 60 years retirement age. For no fault of individuals, who are having DOB 1st Jan. is like a punishment.

    Similarly, 7th CPC made applicable from 01/01/2016, those were having DOB 1st Jan. were retired on 31/12/2015. Thogh their DOB 1st Jan. are not entitlted 7th CPC benefits, but Govt. servants having DOB 2nd Jan. on wards are entitled and drawn the 7th CPC retirement benefits.

    During 3rd CPC in 1973, due to administrative & Accounts problems and non availability of computers and automation, calculation of 10 months average emoluments etc. rationalisation was made, and having DOB 1st of the month also will retire at the end month only. Later, it was decided, those having DOB 1st of month will retire preceding month last working day by amending FR 56 (a). Because of this, Govt. servants having DOB 1st of a month, particularly, 1st Jan. are main loosers.

    Hence, forums representing national bodies, may kindly look into the issue and raise this issue with the appropriate authorities concerned, since, automatiion & computerisation made available, accounting procedure has come very simple and last 10 months average emoluments calculation also not having no use, those are having DOB 1st of the month also shall retire at the end of the month like others. So that all the benefits will be drawn / entitled by them also.
    jvsr krishna

  4. Vasant Hattangadi

    By revising OPTION 1 of 7-CPC recommendations, by calculating the notional pay on 01.01.2016 on the basis of the pay drawn at retirement and strictly following the pay fixation formulae of the intervening pay commisions to arrive at the final result, I don’t see what reforms has the Committee seen in its wisdom. I retired during 4-CPC regime and my pension at retirement was half my retiring pay, which was already fixed on the basis of the total number of increments I had received in my grade. So, what is the big idea of calculating it again now by raising the minmum pay in that grade by the number of increments at 3% each. In my case, it actually reduces my starting pension by about Rs. 129! Since the rest of the calculation remains the same more or less, the Pay and pension remain fixed at the minimum of the Level 13A in the Pay Matrix, which was the pension I would have got anyway even if I had not got a single increment at retirement. As per the Concordance Table No 48 given by CPC-7 for my Pay Band 37400-69000, Grade Pay 8900 every one drawing pay from 5100 to 6300 will get the same pension of Rs 65,550 !!! If this is not bunching on a mass scale, pray, what is it? Had the Committee, stuck to the original CPC recommendation, I would have my revised pension of about Rs. 80,000. Thus, to help a few Anamolies, which are always bound to be there whatever we do, a majority of old pensioners like me will be penalized. One could always find a solution for the others on a case-to-case basis

  5. As revision of pension as ordered by the Government in their notification dated 12/5/17, is in an advanced stage, the proposal now mooted will delay matters. I find that the order on first formulation is favourable to many pensioners. As such I feel that the proposal for a third option will only procrastinate the issue further and that too if it is going to cover only 80% of the pensioners!

  6. M.Radhakrishnan

    The appeal reg revised pension is depicting the total reality of the situation in respect of pre-2016 pensioners.In my own case, I am getting only 30% hike with the new formulation compared to what I would have otherwise got if pension is worked out based on option 1 recommended by the pay commission.The pensioners who are in the evening of their lives earnestly appeal to the Hon PM/FM to be gracious enough to accede to the genuine and justified appeal.

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