7th CPC Resolution for Pensioners and Family Pensioners

7th CPC Resolution for Pensioners and Family Pensioners


(Department of Pension and Pensioners’ Welfare)


New Delhi, the 4th August, 2016

No.38/37/2016-P&PW (A) – The Terms of Reference of the Seventh Central Pay Commission as contained in Ministry of Finance (Department of Expenditure) Resolution No.1/1/2013-E.1I1 (A) dated 28.2.2014 included the following:

“To examine the principles which should govern the structure of pension and other retirement benefits, including revision of pension in the case of employees who have retired prior to the date of effect of these recommendations, keeping in view that retirement benefits of all Central Government employees appointed on and after 01.01.2004 are covered by the New Pension Scheme (NPS).“

2. The Commission, on 19th November, 2015, submitted its report to the Government on Terms of Reference as contained in aforementioned Resolution dated 28.02.2014. Government, after consideration, has decided to accept the recommendations of the Commission on pensionary benefits to the Central Government civil employees, including employees of the Union Territories and Members of All India Services subject to certain modifications, as specified hereinafter ..

3. Detailed recommendations of the Commission relating to pensionary benefits and the decisions taken thereon by the Government are listed in the statement annexed to this Resolution.

4. The revised provisions regarding pensionary benefits, which have been accepted as indicated in the Annexure, will be effective from 01.01.2016.

(Vandana Sharma)
Joint Secrtary to the Govt of India



Recommendation Decision  of Government
1. The Commission notes  that this  allowance   was enhanced  from Rs.300/-  p.m. to Rs.500/- p.m. from 19.11.2014.    As such, further enhancement of this allowance  is not recommended.

(Para 8.17.52  of the Report)

To be examined by a Committee comprising Finance        Secretary and Secretary (Expenditure) as Chairman   and Secretaries of Home       Affairs, Defence, Posts,      Health & Family Welfare,  Personnel & Training and Chairman, Railway Board as
Members. Till a final decision is taken based on the   recommendations of the Committee, Fixed Medical Allowance shall be paid at existing rates.
2. Constant   Attendance   Allowance.

The allowance  may be increased  by a factor of 1.5 i.e. to Rs. 6750/- per month.The allowance  needs further increase by 25% each time DA rise by 50% . (Para 8.17.29  of the Report)

To be examined by a Committee comprising Finance Secretary and Secretary (Expenditure) as Chairman   and Secretaries of Home       Affairs, Defence, Posts,         Health & Family Welfare, Personnel  & Training and Chairman, Railway Board as Members. Till a final decision is taken based on the recommendations of the Committee, Constant Attendant Allowance shall be paid at existing  rates.
3. General  Provident Fund

Status quo may be maintained  in this respect.

(Para 9.4.4 of the Report)

4. Rates of Pension  & Family Pension

The Commission does not recommend any further increase  in the rate of Pension  and Family Pension from the existing  levels.

(Para 10.1.25 of the Report)

5. Quantum of Minimum Pension

The recommendations of the Commission in relation to pay of  a personnel  will lead to  a significant increase in the minimum  from the existing Rs.7,000  per month to Rs.18,000 per month.  This,  based on  computation of pension, will raise minimum pension from  the existing Rs.3500 to Rs.9,000. The minimum pension based on the recommendations of the Commission will increase by 2.57 times over the existing  level.

(Para 10.1.27 of the Report)

6. Rate of Additional Pension and Family Pension to the older pensioners.

The Commission   is  of the  view  that the  existing rates  of additional   pension   and additional   family pension  are appropriate.

(Para 10.1.30 of the Report)

7. Time
Period for enhanced  family  pension.

The Commission notes that the recommendation with  regard to period of eligibility of the enhanced family pension  of 10 years  in case of death  of a serving employee was made based on the recommendations of Vlth CPC Report. No further change is being recommended by the Commission.

(Para 10.1.33 of the Report)

8. Gratuity  ceiling
and its indexation.

The Commission recommends enhancement in the ceiling of gratuity  from  the existing Rs.10  lakh to Rs.20 lakh  from 01.01.2016. The Commission further  recommends the ceiling on gratuity may increase by 25% whenever DA rises by 50%.

9. Rationalization   of death gratuity

The Commission, after examination of the matter, recommends the following rates for payment of death gratuity:

Length   of Service Rate of Death Gratuity
Less than One year 2 times of monthly emoluments
One Year or more but less than 5 years 6 times  of  monthly
5 years or more but less 11 years 12 times  of monthly emoluments
11 years or more but   20 times 20 times of monthly emoluments
20 years or more Half month of emoluments for every
completed six monthly period of qualifying service subject to  a
maximum of 33 times of emoluments.

Para 10.1.41  of the Report)

10. Commutation of Pensionand
restoration of Accepted commuted Pension

The Commission  does not recommend  any change either  in the maximum  percentage
of commutation or in the period
of restoration.

10.1.43 of the Report)

11. Revision  of Pension
of pre  7m CPC retirees

The Commission recommend the following pension formulation for civil employees including CAPF personnel who have retired before

(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 may be given the option of choosing   whichever formulation is beneficial to them. It is recognized that the fixation of pension as per formulation in (i) above may take a little time since the records of each pensioner will have to be checked to ascertain the number of increments earned in the retiring level. It is therefore recommended that in the first instance the revised pension may be calculated as at (ii) above and the same may, be paid as an interim measure. In the event calculation as per (i) above  yields a higher amount the difference may be paid subsequently.(Para 10. 1.67 and Para 10.1.68 of the Report)

Both the options recommended by  the
7th Central Pay Commission as regards  pension revision   be accepted  subject to feasibility of the implementation. Revision  of pension using the second     option based on fitment    factor of 2.57 be implemented immediately.

The first  option may be made feasible after examination by the Committee comprising Secretary (Pension)   as Chairman and Member (Staff). Railway Board, Member (Staff), Department of Posts, Additional Secretary & Financial Adviser, Ministry

of Home Affairs and Controller General of Accounts as Members

12. Ex-gratia  Lumpsum

The commission recommends a Common regime for payment of ex-gratia lump-sum compensation for  civil and  defence  forces personnel,  payable  to the next of Kin at the following  rates:

Circumstances Existing Proposed
Death  occurring due  to accidents in course of performance of duties 10 lakh 25 lakh
Death in the course of performance the
course of attributed  to acts of violence by terrorists, anti social
elements  etc.
10 lakh 25 lakh
Death occurring in border skirmisheds and action against militants, terrorists,extremists,sea pirates 15 lakh 35 lakh
Death occurring while on duty in the specified high altitude, unaccessible border posts, on account of natural disasters, extreme weather conditions 15 lakh 35 lakh
Death occurring during enemy action in war or such war like engagements, which are specifically notified by Ministry of Defence and death occurring during evacuation of Indian Nationals from a war-torn Zone in foreign country. 20 lakh 45 lakh

(para 10.2.77)


Authority: http://www.pensionersportal.gov.in/

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