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Saturday, 2 July 2016

REVISION OF PENSION OPTION II BASED ON FITMENT FACTOR OF 2.57

Revision of pension option II based on fitment factor of 2.57 shall be implemented immediately, Option I found feasible after committee examination, then also applicable 

Earlier, The Commission recommends the pension formulation for civil employees including CAPF personnel, who have retired before 01.01.2016.

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 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.

The Central Government has approved both Options for revision of pension, but Second Options based on Fitment Factor 2.57 shall be implemented immediately. The Fist Option shall be implemented, which is found feasible after committee examination. The Committee shall submit its report within 4 months.

The objection of DOPW &MOD against option 1 is that records may not be available to implement. It is a very poor & illogical argument to deprive pensioners of their legitimate right. Service record of an employee is permanent in nature & cannot be destroyed without specific permission under specific circumstances. In case for any reason if anyone’s service record is missing it can always be reconstructed with the help of PPO, various other records with the departments & with the employee/pensioner. In 100% cases PPOs are available; in 95% cases all other records too are available. Pensioners too are having authentic records required for the purpose.


Option 2

Revised basic pension of as on 01.01.2016 = Existing basic pension as on 01.01.2016 X 2.57 = Revised basic pension + Dearness Relief (DR) as on 01.01.2016. 

Government has approved Second Option for Revision of Pension based on Fitment Factor of 2.57, which shall be implemented immediately.

Cabinet approves both Options for on Pension and related benefits given as under

"The general recommendations of the Commission on pension and related benefits have been approved by the Cabinet. Both the options recommended by the Commission as regards pension revision have been accepted subject to feasibility of their implementation. Revision of pension using the second option based on fitment factor of 2.57 shall be implemented immediately. A Committee is being constituted to address the implementation issues anticipated in the first formulation. The first formulation may be made applicable if its implementation is found feasible after examination by proposed Committee which is to submit its Report within 4 months."

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