7th CPC.... Part IV

Revision of Pension...

ØAll 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.

Ø  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.

Ø   Pensioners may be given the option of choosing whichever formulation is beneficial to them.

It is recognised 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

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Terminal benefits:

Ø  The Commission does not recommend any further increase in the rate of pension and family pension from the existing levels. Quantum of Minimum Pension should Equal the Minimum Wage

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

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

Ø  The Commission notes that the revision with regard to period of eligibility for the enhanced family pension of ten years was made based on recommendations of the VI CPC Report. No further change is being recommended by this Commission.

Death gratuity:

Ø  Length of Service Rate of Death Gratuity Less than one year: 2 times of monthly emoluments

Ø  One year or more but less than 5 years: 6 times of monthly emoluments

Ø  5 years or more but less than 11 years: 12 times of monthly emoluments.

Ø  11 years or more but less than 20 years: 20 times of monthly emoluments.

Ø  20 years or more : Half month of emoluments for every complete six monthly period of qualifying service subject to a maximum of 33 times of emoluments

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Health Insurance:

Ø  The Commission strongly recommends the introduction of health insurance scheme for Central Government employees and pensioners.

Ø  The Commission recommends that the remaining 33 postal dispensaries should be merged with CGHS.

Ø  The Commission further recommends that all postal pensioners, irrespective of their participation in CGHS while in service, should be covered under CGHS after making requisite subscription.

Ø   Currently, there are various health care schemes in the Central Government catering to specific sets of employees. For example, apart from CGHS, there are Ex-Servicemen Contributory Health Scheme (ECHS) and Railways Employees Liberalized Health Scheme (RELHS) which cover ex-servicemen and Railway employees/pensioners, respectively. Although the patterns in these schemes vary, a combined entity of CGHSECHS-RELHS would result in a very strong network of health facilities for the Central Government employees across the length and breadth of the country. The Commission recommends that possibility of such a combined network of various medical schemes should be explored through proper examination.