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.

DATE OF EFFECT

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.

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EMOLUMENTS

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.

PENSION

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 1964

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.

COMMUTATION OF PENSION

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.