Saturday 6 August 2016


Department of Pension & Pensioners' Welfare vide F.No.38/37/2016-P&PW(A) (ii) Dated the 4th August, 2016 issued Government's decisions on the recommendations of the 7th CPC - Revision of pension of pre-2016 pensioners/family pensioners etc. Separate orders were also issued in respect of employees who retired/died on or after 01.01.2016 (Please refer to my earlier post).
“2.1 These orders shall apply to all pensioners/family pensioners who were drawing pension/family pension before 1.1.2016 under the Central Civil Services (Pension) Rules, 1972, Central Civil Services (Extraordinary Pension) Rules and the corresponding rules applicable to Railway pensioners and of All India Services, including officers of the Indian Civil Service retired from service on or after 1.1.1973. A pensioner/family pensioner who became entitled to pension/family pension with effect from 01.01.2016 consequent on retirement/death of Government servant on 31.12.2015, would also be covered by these orders.


2.2 Separate orders will be issued by the Ministry of Defence in regard to Armed Forces pensioners/family pensioners.
2.3 These orders also do not apply to retired High Court and Supreme Court Judges and other Constitutional/Statutory Authorities whose pension etc. is governed by separate rules/orders.”
“4.1 For existing pensioners, who have retired before 01.01.2016, the revised pension/family pension with effect from 01.01.2016 shall be determined by multiplying the pension/family pension, as had been fixed at the time of implementation of 6thCentral Pay Commission (CPC) recommendations, by 2.57. The amount of revised pension/family pension so arrived at shall be rounded off to next higher rupee.”
“4.2 For this· purpose, the existing pension/family pension will be the basic pension/family pension only without the element of additional pension available to the old pensioners/family pensioners of the age of 80 years and above. The additional pension/family pension payable to the old pensioners/family pensioners will be worked out in accordance with para 4.5 of this O.M.
4.3 Since the consolidated pension will be inclusive of commuted portion of pension, if any, the commuted portion will be deducted from the said amount while making monthly disbursements.
4.4 The minimum pension with effect from 01.01.2016 will be Rs. 9000/- per month (excluding the element of additional pension to old pensioners). The upper ceiling on pension/family pension will be 50% and 30% respectively of the highest pay in the Government (The highest pay in the Government is Rs. 2,50,000 with effect from 01.01.2016).
4.5 The quantum of pension/family pension available to the old pensioners/ family pensioners shall continue to be as follows:
From 80 years to less than 85 years 20% of revised basic pension/ family pension From 85 years to less than 90 years 30% of revised basic pension / family pension From 90 years to less than 95 years 40% of revised basic pension / family pension From 95 years to less than 100 years 50% of revised basic pension / family pension 100 years or more 100% of revised basic pension / family pension.
The amount of additional pension will be shown distinctly in the pension payment order. For example, in case where a pensioner is more than 80 years of age and his/her revised pension in terms para 4.1 above is Rs.10,000 pm, the pension will be shown as (i).Basic pension=Rs.10,000 and (ii) Additional pension = Rs.2,000 pm. The pension on his/her attaining the age of 85 years will be shown as (i).Basic Pension = Rs.10,000 and (ii) additional pension = Rs.3,000 pm. Dearness relief will be admissible on the additional pension available to the old pensioners also.
4.6 The revised pension/family pension arrived at as per paragraph 4.1 includes dearness relief sanctioned from 1.1.2016.
5. Where the revised pension/family pension in terms of paragraph 4.1 above works out to an amount less than Rs. 9000/-, the same shall be stepped up to Rs. 9000/-. This will be regarded as pension/family pension with effect from 1.1.2016……”
“10 The pension/family pension as worked out in accordance with provisions of Para 4.1. and 5 above shall be treated as 'Basic Pension' with effect from 01.01.2016. The revised pension/family pension includes dearness relief sanctioned from 1.1.2016 and shall qualify for grant of Dearness Relief sanctioned thereafter……..”

“. It is considered desirable that the benefit of these orders should reach the pensioners as expeditiously as possible. …….the arrears due to the pensioners in terms of para 4.1. and para 5 above is paid to the pensioners or credited to their account by 31st August, 2016 or before positively.”

Friday 5 August 2016

IMPLEMENTATION OF PENSION ETC. for post 1/1/2016 - DP&PW OM DATED 04/08/2016

Implementation of Government's decision on the recommendation of the Seventh Central Pay Commission - Revision of provisions regulating pension/gratuity/ commutation of pension/family pension/disability pension/ex-gratia lump-sum compensation, etc. was issued vide DP&PW OM F. No 38/37/2016-P&PW(A)(i) dated 04/08/2016.
The main points are as below:

These orders apply to Central Government Employees governed by the CCS (Pension) Rules, 1972.

The revised provisions as per these orders shall apply to Government servants who retire/die in harness on or after 1.1.2016. Separate order have been issued in respect of employees who retired/died before 1.1.2016.

Where pension/family pension/Gratuity/Commutation of pension, etc has already been sanctioned in cases occurring on or after 1.1.2016, the same shall be revised in terms of these orders. In cases where pension has been finally sanctioned on the pre-revised orders and if it happens to be more beneficial than the pensionbecoming due under these orders, the pension already sanctioned shall not be revised to the disadvantage of the pensioner in view of Rule 70 of the CCS (Pension) Rules, 1972.


Basic pay in the revised pay structure means the pay drawn in the prescribed level in the Pay Matrix with effect from 01.01.2016 but does not include any other type of pay like special pay, etc.
 In the case of all kinds of gratuity, dearness allowance admissible on the date of retirement/death shall continue to be treated as emoluments along with the emoluments as defined in Paragraph 4.1 above.

The amount of pension shall be subject to a minimum of RS.9000/- and the maximum pension would be 50% of highest pay in the Government.
The maximum limit of Retirement gratuity and death gratuity shall be Rs. 20 lakh. The ceiling on gratuity will increase by 25% whenever the dearness allowance rises by 50% of the basic pay.

Family pension shall be calculated at a uniform rate of 30% of basic pay in the revised pay structure and shall be subject to a minimum of Rs.9000/-p.m. and maximum of 30% of the highest pay in the Government.

There will be no change in the provisions relating to commutation values, the limit up to which the pension can be commuted or the period after which the commuted pension is to be restored.

The pension/family pension under para 5 and 7 above shall qualify for dearness relief sanctioned from time to time, in accordance with the relevant rules/instructions.

Saturday 30 July 2016


Ministry of Finance vide OFFICE MEMORANDUM no. 1-5/2016-IC dated 29 July, 2016 issued detailed instructions on fixation of pay and payments of arrears as given below:- 


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Saturday 23 July 2016


GOI, Vide DOPT OM.No.11013/4/2016-Estt (A-III) dated 20th July, 2016, clarified the Definition of "Members of Family" for the purpose of Rule 4 of CCS (Conduct) Rules, 1964. This rule says, “no Government servant shall use his position or influence directly or indirectly to secure employment for any member of his family in any company or firm.” It also says, "No Government servant shall in the discharge of his official duties deal with any matter or give or sanction any contract to any company or firm or any other person if any member of his family is employed in that company or firm or under that person or if he or any member of his family is interested in such matter or contract in any other manner and the Government servant shall refer every such matter or contract to his official superior and the matter or contract shall thereafter be disposed of according to the instructions of the authority to whom the reference is made."

The clarification is as follows: “ the context of rule 4(1) and 4(3) "Members of family" in relation to a Government servant include the wife or husband, son or daughter, parents, brothers or sisters or any person related to any of them by blood or marriage, whether they are dependent on the Government servant or not.”
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Thursday 30 June 2016


There is an attempt made by certain jaundiced media platforms to propagate false information on the effect of implementation of the 7th Pay Commission Report. Many so called experts expressed their concerns about the inflation and many other socio economic issues and the generosity of the present Government and the speed at which the implementation took place. But were these all based on real facts?

In the case of 6th Pay Commission Report, it was submitted to the Government on 24/03/2008. Government decision  was published on 29/08/2008. Time taken  was 5 months and 5 days.
In the case of 7th Pay Commission report, it was submitted on 19/11/2015. Government decision was on taken on 29/6/2016. Time taken was 7 months and 10 days. Yet credit goes to Modi government for taking early decision, though actually it took 2 months and 5 days more than the previous government to decide on the issue, that too a totally simple form of cpc report.

Second propaganda is about the arrears burden and its inflation. The merger of D.A. @125% is already paid from 01.01.2016 up to the end of June 2016. Balance arrears due to the multiplication factor is only a peanut. So what real effect is going to make by the arrears payment in the economy than the currency and oil price fluctuation could make? Of course there could be an initial fluctuation due the hype  artificially created by these biased media houses. Otherwise this can be considered only as a lame excuse in anticipation of a failure of the government to contain the inflation in the coming days.

Now I am wondering what work was done by the 7th CPC? Found out that now a days Government employees are paid more than Private sector with the help of a Gujarat based Insitute? If this is the case, why we need a CPC in the future for merging the DA?

This also proves that the present Government is getting publicity of good governance due to the public relation techniques like giving chocolate to the crying babies due to ulcer in stomach (toilet, gas and yoga to the poor people who do not have food to eat, facility for education and place to sleep) and not in real terms.

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Friday 10 June 2016

Seventh Central Pay Commission (7th CPC) Report:- 2 Anomalies in pension fixation.

There are two likely anomalies in the pension fixation. According to the recommendations of the 7th Pay Commission, in case of pension there are two types of pension fixation for those retired before 01/01/2016.  (para 10.1.67 of 7th CPC Report)

1. According to the first, "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". In this case, there are persons who were promoted after 01/01/2006 will loose 1 increment on account of the pay fixation in between the period 01/01/2006 and 31/12/2015. This is because the retirement minimum pay has to be taken and the earned increment during the period. This can be beneficial to those who earned 10 increment in the same scale. But those who in different scale during the 10 year period, it would be a loss because the benefit of additional increment or past increment earned in lower post based on which pay was fixed in the retiring post would not be taken into consideration, but only the minimum of the scale is taken into consideration. To remove this anomaly, for such persons, the criteria should be their minimum of the pay they had drawn in at initial pay fixation in the retiring scale plus the number of increments has to be taken.

In the second method, specifically, it is mentioned that, “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.” Hence there is an anomaly in this. That is, in fixing the new Pay Matrix, the 7th CPC used in specific cases, other multiplication factors like 2.62, 2.67, 2.72, etc. It was used to remove anomalies in the existing grade pay. But this benefit may not be available in the second case in pension cases, since specific figure 2.57 is mentioned therein without applying the anomaly reasoning in those scales thereby creating another anomaly. Whereas in the first case, it will be available, but there is another anomaly as mention above. Hence, it is expected that, when the ministry consider the report for implementation, this point will also be considered.

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Friday 6 May 2016

Restoration of Commutation of Pension to be reduced from 15 years to 12?

There is a grey area in the restoration of commutation of pension. Para 10.1.43 of the 7th CPC Report stated that The Supreme Court in its judgement specifically stated that though the amount is recovered in 12 years, yet since there is a risk factor and some of the states are restoring pension after 15 years, the period of restoration is fixed at 15 years. The V CPC in its recommendation increased the percentage of commutation to 40 percent and recommended restoration period at 12 years. But the reduction of restoration period was not accepted by the government. The VI CPC did not recommend any change in the maximum percentage of commutation allowed or in the period of restoration. This Commission also does not recommend any change either in the maximum percentage of commutation or in the period of restoration.”

Supreme Court already examined the case and stated that the commuted value is recovered in 12 years. While the case was considered, since some states are following 15 years, it followed the same. Further, after the Supreme Court case,  the percentage of commutation was increased to 40 percent. But it was the duty of the CPCs to consider the issue particularly when later on superannuation age is increased by the Central government from 58 to 60 years, irrespective of the fact that many states are following age 55/56 for superannuation. Therefore, it is high time that the restoration of the commutation value is reduced to 12 years. Therefore, it is expected that the anomaly is removed while implementing the 7th Pay Commission Report.

(To read free part of my book (memoir) on my fight against corruption and scams while in government service ‘A FRAUD IN THE INDIAN CONSTITUTION’, go to the below link and click “LOOK INSIDE” button:- It starts with CAG is not even an accountant and ends with "IS IT NOT BOTH CAG AND THE MINISTRY ARE FOOLING THE PARLIAMENT AND THUS THE PEOPLE OF INDIA? NOW IT IS FOR THE PUBLIC ACCOUNTS COMMITTEE (PAC) OF THE PARLIAMENT TO TELL THE PUBLIC WHAT THEY ARE DOING WITH THESE KINDS OF AUDIT OBJECTIONS AND REPLIES BROUGHT BEFORE THEM")