7th Pay Commission : Pension fixation on the basis of Option 1 recommended by 7th CPC – Representation

7th Pay Commission : Pension fixation on the basis of Option 1 recommended by 7th CPC – Representation

7th Pay Commission Pension fixation on the basis of Option 1 recommended by
7th CPC – Appeal for restoration of option 1 for Revision of Pension of
Pre-2016 Pensioners

rscws letter head

 No. RSCWS/ HO / 7th CPC/2017-16

Dated: 23rd August, 2017 

 1.Shri Narindera Modi, Hon. Prime Minister India, 152, South Block, New
Delhi-110001

 2. Shri Arun Jaitley, Hon. Minister of Finance, Govt. of India, North
Block, New Delhi-110001

3. 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:

i) 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)

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