MY OBJECTIONS OF 7TH CPC (PENSION) & 6TH CPC (MACPS)

The below part of the recommendation of the 7^th CPC in respect of Pension was objected by me in my earlier blog (http://www.centralemployeesnews.manjaly.net/2016/06/seventh-central-pay-commission-7th-cpc.html)

"(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."

Now in the implementation dated 12/5/2017, the Government (Department of Pension & Pensioners' Welfare) has substituted the same as follows:

“4. The aforesaid Committee has submitted its Report and the recommendations made by the Committee have been considered by the Government. Accordingly, it has been decided that 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 7^th 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 Formulation. In the case of family pensioners who were entitled to family pension at enhanced rate, the revised family pension shall be 50% of the notional pay as on 01.01.2016 and shall be payable till the period up to which family pension at enhanced rate is admissible as per rules. The amount of revised pension/family pension so arrived at shall be rounded off to next higher rupee.”

Hence my objections are solved by adopting same matrix for serving as well as the retired employees.

If the same prudence was shown by the Department of Pensions & Pensioners' Welfare (DOP&PW) in respect of my objection with regard to the implementation of MACPS under the 6^th CPC, a protracted litigation (http://www.centralemployeesnews.manjaly.net/2016/08/writ-petition-macps-6thcpc.html) could have been avoided and many persons would have been benefited.

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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 7^th 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 7^th 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.

N.B.:-

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