Revision of Pension of Pre 2016 Defence Civilian Pensioners – Standard Operating Procedure

Office of the Principle Controller of Defence Accounts (Pensions) has prepared Standard Operating Procedure for Revision of Pension of Pre 2016 Defence Civilian Pensioners as per 7th CPC Recommendations. The same may be downloaded form the Link Provided below

Revision of Pension of Pre 2016 Defence Civilian Pensioners – Standard Operating Procedure

1. Introduction:

Government of India, Ministry of Personnel, Public Grievances and Pensions, Department of P&PW issued orders vide their OM No. 38/37/2016-P&PW (A) dated 12.05.2017 for revision of Pre-2016 Defence Civilian pensioners as per 7th CPC. These orders were circulated by this office vide Circular number C164 dated 30-05-2017. Pension / family pension in respect of all Defence Civilian pensioners / family pensioners who retired / died prior to 01.01.2016, has to 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.

1.1. The estimated number of Defence Civilian pensioners is about 5.5 Lakh.

Revising pension, issuance and dispatch of PPO at this scale with the existing manpower was a mammoth exercise in itself. If methods adopted in past were to be deployed, the task would have taken more than 3 years. Dispatch of PPO to Head of Offices was a matter of great concern during similar exercises in past since there were a large number of complaints regarding non-receipt of PPOs sent by this office.

1.2. As per the government orders, the methodology of fixation of pension w.e.f. 1.1.2016 is as under:-

The fixation of pension 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 are to be strictly followed. 50% of the notional pay as on 01.01.2016 will be the revised pension and 30% of this notional pay will be the revised family pension w.e.f. 1.1.2016. In 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 existing Rules. The amount of revised pension/family pension so arrived at shall be rounded off to next higher rupee.

1.3 The higher of the two formulations i.e. the pension/family pension already revised in accordance with OM No. 38/37/2016-P&PW (A) (ii) dated 04.08.2016 i.e., multiplication by a factor of 2.57 or the revised pension/family pension as worked out in accordance with Para above, shall be granted to pre-2016 Defence Civilian pensioners as revised pension/family pension with effect from 01.01.2016.

1.4 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, 1972 or Compassionate Allowance under Rule 41 of the CCS (Pension) Rules, 1972. 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.

1.5 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. 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 will be regulated in terms of P&PW OM No. 4/34/2002-P&PW (D) Vol. II dated 23.06.2017, circulated vide this office circular no. C-173 dated 11-08-201.

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