7TH CPC PENSION REVISION ON NOTIONAL FIXATION OF PRE- 2016 RETIRED ARMED FORCES PENSIONERS/ FAMILY PENSIONERS- PCDA CIRCULAR NO. 585

7th CPC Pension Revision on Notional Fixation of Pre- 2016 Retired Armed Forces Pensioners/ Family Pensioners- PCDA Circular No. 585  Of...

7th CPC Pension Revision on Notional Fixation of Pre- 2016 Retired Armed Forces Pensioners/ Family Pensioners- PCDA Circular No. 585 

Office of the Principal CDA (Pensions) 
Draupadi Ghat, Allahabad- 211014 

Circular No. 585
Dated: 21.09.2017 

To,

The Officers-in-Charge
ROs/PAOs (ORs)
……………………………
……………………………

Subject: Implementation of Government's decision on the recommendations of the 7th Central Pay Commission- Revision of Pension of Pre-01.012016 retired Armed Forces Pensioners/ Family Pensioners. 

Reference: (1) This office Circular No. 570 dated 31.10.2016


Attention is invited to Pare-4.1 of the above cited Circular No. 570 dated 31.10.2016 wherein instructions for revision of pension of pre-01.012016 pensioned family pensioner were Issued for Implementation of Gol, MoD letter No. 17(01)/2016-D (Pen/Pol) dated 29th October, 2016. It was provided in the ibid Govt. letter that the revised pension/ family pension w.e.f. 01.01.2016 of Pre-2016 pensioners/ family pensioners shall be determined by multiplying the Basic Pension (before commutation)/ Basic Family Pension (exclusive of Dearness Relief) as had been drawn as on 31.12.2015 by 2.57 to arrive at revised pension under 7th CPC. 

2. A copy of Gol, MoD letter No. 17(01 )/2017/(02)/D(Pension/ Policy) dated 05.09.2017, which is self-explanatory, is enclosed for immediate necessary action. Further clarifications/ Instructions are Issued for smooth implementation of Ministry of Defence letter on the subject are enumerated in succeeding paras. 

3. Revised pension/ family pension of an Armed Forces Personnel who retired/ died print to 01.01.2016, shall be revised by notionally fixing their pay in the pay matrix recommended by the 7th CPC in the level corresponding to the pay In the pay scale/ pay band and grads 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. The revised rates of Military Service Pay, Non Practising Allowance, where applicable, and ‘X’Group pay & Classification Allowance for JCOs/ ORs, if applicable, notified in farms of 7th CPC orders, shall also be added to the amount of pay notionally arrived at under the 7th CPC pay matrix and shall be termed as notional reckonable emoluments as on 01.01.2016. While fixing pay on notional basis, the pay fixation formulae (as per Para-4 of MoD letter dated 05.09.2017), approved by the Government and other relevant instructions on the subject in force at the relevant time, shall be strictly followed. 

4. Applicability 

4.1. These orders shall apply to all the Armed Forces Pensioners/ Family Pensioners who were drawing Service Pension/ Family Pension including Disability Pension, War Injury Pension as on 01.01.2016 under the Pension Regulations of the three Services/ State Forces and various Government orders issued from time to time. 

4.2. The provisions of this letter do not apply to the following categories: 

(i) Gallantry awardees drawing monetary allowance in isolation attached to the award such as Param Vir Chakra, Ashok Chakra, etc. 

(ii) UK/ HKSRA Pensioners who were in receipt of pension in Pound Sterling as on 01.01.2016. 

(iii) Persons in receipt of Compassionate Allowance, Guzara, Reservist allowance or any other allowance on which dearness relief is not admissible. 

(iv) Ex gratia payment @ Rs 600/- p.m. to reservists who opted lump sum gratuity in lieu of reservist pension at the time of release covered by Govt. of India, Ministry of Defence letter No. B/39042/AG/PS-4(a&c)/1331/CID (Pension/Services) dated 29.12.2000. 

(v) Ex-gratia family pension at Rs. 645/- per month to the families of deceased reservists covered by Gol, MoD letter No. 1(06)/2010-D(Pen/Policy) dated 22.11.2013. 

(vi) Pakistan, Burma Pensioners who have been granted Ex- gratia Ad-hoc allowance. 

(vii) Reservist Pensioners, since no method of calculation of Reservist Pension has been provided under 7th CPC. 

(viii) These orders do not apply to Public Sector Undertakings/ Autonomous Body absorbees who have drawn lump sum payment of pro rata pension, whose 43% (in case of Commissioned Officer) and 45% (in case of JCOs/ ORs) pension has been restored. 

4.3. Revision of all kinds of pension/ family pension is to be done only in respect of those Armed Forces Pensioners including disability pensioners/ family pensioners who retired, invalided out of service/ died before 01.01.2016. In other words, cases of retirement, invalidment/ death in service on or after 01.01.2016 are not covered by these orders. 

5. Calculation of pensionary benefits under this formulation :- 

Subject to Para 10, the rates of revised pension/family pension in terms of these orders shall be determined as follows:- 

(a) The revised Retiring/ Service/ Special/ Invalid/ Ordinary/ Mustering out Pension, Service element of Disability/ Liberalised Disability/ War Injury Pension shall be 50% of the notional reckonable emoluments arrived at as per Para 3 above. 

(b) The revised Disability/ Liberalized disability element of Disability/ Liberalized Disability Pension shall be 30% of the notional reckonable emoluments arrived at as per Para 3 above for 100% disability and shall be reduced pro-rata subject to degree of disability accepted and for the period notified in PPO. 

(c) The revised War Injury element of War Injury Pension shall be 60% and 100% of the notional reckonable emoluments arrived at as per Para 3 above in cases of release and invalided out cases respectively. The rates so determined shall be for 100% disability and shall be reduced pro-rata subject to degree of disability accepted and for the period notified in the PPO. 

Note- The aggregate of service element and liberalized disability element shall not be less than 80% of the notional reckonable emoluments. 

(d) Where an Armed Forces Personnel was discharged/ retired under the circumstances mentioned in Para 4.1 of this Ministry's letter No. 1(2)/97/D(Pen-C) dated 31.1.2001 with disability including cases covered under this Ministry's letter No. 16(5)/2008/D(Pen/Policy) dated 29.9.2009 & dated 19.05.2017 and the disability/war injury had already been accepted as 20% or more, the extent of disability or functional incapacity shall now be determined in the manner prescribed in Para 7.2 of said letter dated 31.1.2001 for the purpose of computing disability/ war injury element with effect from 01.01.2016. 

(e) The benefit of broad-banding of disability in discharge/ retired cases shall, however, only be applied to those who are drawing disability element 20% or more as on 01.01.2016. Rates for calculation of disability where composite assessment is made due to existence of disability, as well as war injury, shall be determined in terms of provision contained in Para 3(b) of Gol, MoD letter No. 16(02)/2015-D (Pen/Pol) dated 08.08.2016. 

(f) The revised enhanced rate and normal rate of Ordinary Family Pension shall be 50% and 30% respectively of the notional reckonable emoluments arrived at as per Para 3 above for the applicable period of grant. 

(g) The revised Special Family pension shall be 60% of the notional reckonable emoluments arrived at as per Para 3 above for the applicable period of grant. 

(h) The revised Liberalized Family Pension shall be equal to the notional reckonable emoluments arrived at as per Para 3 above for the applicable period of grant. 

(i) For child/children of Armed Forces personnel in receipt of Liberalized Family Pension, the revised Liberalized Family Pension shall be 60% of the notional reckonable emoluments arrived at as per Para 3 above for the applicable period of grant. 

(j) The revised Dependent Pension (Special) shall be 50% of notional Special Family pension arrived at in terms of provisions as at Para 5(g) above. 

(k) The Liberalized Dependent Pension (Liberalized) shall be 75% (in case both parents are alive) and 60% (in case of single parent/dependent brother/sister) of notional Liberalized Family Pension arrived at in terms of provisions as at Para 5(h) above. 

(I) The revised Second Life award of Special Family pension in case of JCOs/ORs including NCs (E) shall be 50% of notional Special Family Pension arrived at in terms of provisions as at Para 5(g) above. 

(m) The revised Second Life award of Liberalized Family Pension in case of JCO/OR including NCs (E) shall be 60% of notional Liberalized Family Pension arrived at in terms of provisions as at Para 5(h) above.

Note-1: The amount of revised pension/ family pension arrived at in terms of this para, shall be rounded off to the next higher rupee. 

Note-2 : In cases where the family pension has been divided amongst more than one beneficiary, the revised family pension for beneficiaries all together shall not exceed the applicable rate of family pension indicated above. 

6. The higher of the two Formulations i.e. the pension/family pension already revised in accordance with Gol, MoD letter No. 17(01)/2016-D(Pen/Pol) dated 29th October 2016 and modified vide letter No. 17(01)/2017 (01)/D(Pen/Policy) dated 04.09.2017 or the revised pension/ family pension worked out in accordance with Para 5 above, shall be granted to pre-2016 Armed Force Pensioners as revised Pension/ Family Pension w.e.f. 01.01.2016. In this regard, illustrations of calculation have been given at Annexure-I of the MoD letter dated 05.09.2017

In cases where pension/ family pension being paid w.e.f. 01.01.2016 in accordance with Gol MoD letter No. 17(01)/2016-D(Pen/Pol) dated 29th October 2016 happens to be more than pension/ family pension as worked out in accordance with Para-5 above, the pension/ family pension already being paid shall be treated as revised pension/ family pension w.e.f. 01.01.2016. 

7. The amount so arrived at in terms of Para 6 above will be regarded as revised pension/ family pension with effect from 01.01.2016. Since the revised pension will be inclusive of commuted portion of pension, if any, the amount of pension commuted will be deducted from the said amount while making monthly disbursements from 01.01.2016. 

8. Instructions were issued vide Gol, MoD letter No. 1(3)/98/D(Pen/Services) dated 27.5.1998 for revision of pension/ family pension in respect of Commissioned Officers who retired or died prior to 1.1.1986, by notional fixation of their pay in the scale of pay introduced with effect from 1.1.1986. The notional pay so worked out as on 1.1.1986 was treated as average emoluments/ last pay for the purpose of calculation of notional pension/ family pension as on 1.1.1986. The notional pension/ family pension so arrived at was further revised with effect from 1.1.1996 and was paid in accordance with the instructions issued for revision of pension/ family pension in implementation of the recommendations of the 5th CPC. However, in the case of Pre-1.1.1986 retired JCOs/ORs, no such notional fixation of pay was prescribed and revision of their pension was based on pension tables provided vide Gol, MoD letter No. 1(2)/98/D(Pen/Services) dated 14.7.1998. 

9. Accordingly, for the purpose of calculation of notional pay as on 01.01.2016, in case of all Pre-01.01.2016 JCOs/ ORs who retired or died before 01.01.2016, the actual pay and the pay scale from which they retired or died would be taken into consideration for the purpose of calculation of the notional pay as on 01.01.2016 in accordance with Para-3 above. Their notional pay in various subsequent Pay Commissions from date of retirement/discharge/ death will be done by the ROs (Record Offices) concerned and verified by respective PAOs. This will be done by notional pay fixation under each intervening Pay Commission based on the formula for revision of pay according to the Govt. orders on the subject issued from time to time. 

10. Upper ceiling of pension/ family pension 

The minimum pension with effect from 01.01.2016 will be Rs 9000/- per month (excluding the element on 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/- w.e.f. 01.01.2016). Further, this maximum ceiling limit will not apply in case of casualty pensionary awards like Special Family Pension, Liberalised Family Pension, Disability Pension, Liberalised Disability Pension and War Injury Pension etc. which may be more than Rs. 1,25,000/-. 

11. The pension/ family pension as worked out in accordance with provisions of Para 6 above shall be treated as Basic Pension with effect from 01.01.2016. The revised pension/ family pension includes Dearness relief sanctioned from 01.01.2016 and shall qualify for grant of Dearness Relief sanctioned thereafter. 

12. The existing instructions regarding regulation of Dearness relief to employed/ re-employed pensioners/ family pensioners, as contained in Gol, MoD letter No. 7(1)/95/ D(Pen/Services) dated 28.8.2000 and Department of Pension & Pensioners Welfare OM No. 45/73/97-P&PW(G) dated 02.07.1999, as amended from time to time, shall continue to apply. 

13. Applicability of Permanent absorbees in PSUs/Autonomous Bodies:- 

The pension of the pensioners who are drawing monthly pension from the Defence Forces on permanent absorption in Public Sector Undertakings/Autonomous Bodies shall also be revised in accordance with these orders. 

However, separate orders will be issued for revision of pension of those pensioners who had earlier drawn one time lump sum terminal benefits on absorption in Public Sector Undertakings etc., and are drawing 43%/45% restored pension in case of Commissioned Officers and JCOs/ORs respectively as per the instructions issued by this Ministry from time to time. 

14. In cases where, on permanent absorption in Public Sector Undertakings/ Autonomous Bodies, the terms of absorption and/ or the rules permit grant of family pension under the orders issued by the Ministry of Defence, the family pension being drawn by the family pensioners or already sanctioned in her favour shall also be updated in accordance with these orders. 

15. Additional Pension for pensioners/ family pensioners of 80 years age and above 

The quantum of age-related pension/family pension available to the old pensioners/ family pensioners shall continue to be as follows:-

Age of pensioner/ family pensioner
Additional quantum of pension
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 shall 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 is Rs10,000 pm, the pension shall 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 shall be shown as (i) Basic Pension= Rs 10,000 and (ii) additional= Rs.3,000 pm. Dearness Relief will be admissible on the additional pension available to the old pensioners also. 

Note- The additional Pension/ Family Pension available to pensioners of 80 years of age and above shall be applicable in the case of Disability/War Injury Element/ Liberalized Disability Element of Disability/ Liberalised Disability/ War Injury Pension also. 

MISCELLANEOUS INSTRUCTIONS 

16. No commutation of pension will be admissible on amount of pension accruing as a result of revision of pension under these orders. However, the existing amount of pension, if any, that has been commuted will continue to be deducted from the revised pension while making disbursement till the applicable period of deduction. Notional fixation of pay in terms of these orders will also not affect the entitlement of retirement gratuity already determined and paid with reference to rules in force at the time of discharge/ invalidment/death. 

17. (a) No arrears on account of revision of Pension/ Family pension on notional fixation of pay shall be admissible for the period prior to 01.01.2016. The arrears on account of revision of pension/ family pension in terms of these orders would be admissible with effect from 01.01.2016. For calculation of arrears becoming due on the revision of pension/ family pension on the basis of this Government letter, the arrears of pension and the revised pension/ family pension already paid on revision of pension/ family pension in accordance with the instructions contained in Gol, MoD letter No. 17(01)/2016-D(Pen/Pol) dated 29.10.2016 shall be adjusted. 

(b) Any overpayment of pension coming to the notice or under process of recovery shall be adjusted in full by the Pension Disbursing Agencies against arrears becoming due on revision of pension on the basis of these orders. 

(c) In case of a pensioner to whom the benefit accrues under the provisions of this letter has died/ dies before receiving the payment of arrears, the Life Time Arrears of pension (LTA) shall also be paid as per extant orders. 

18. Record Office and attached Pay Account Office in case of JCOs/ ORs of the three Services will initiate cases for revision of pension/ family pension of pre-01.01.2016 pensioner/ family pensioner with effect from 01.01.2016 in accordance with ibid Govt. order dated 05.09.2017 for issue of revised Pension Payment Order (PPO) for every pensioner/ family pensioner. The Record Office concerned from which the Armed Forces Personnel had retired or was working last before his death to fix the pay on the notional basis as on 01.01.2016 in accordance with the ibid Govt. order dated 05.09.2017 in the annexed proforma of LPC-Cum-Data Sheet No. PHP-07(Pre-2016 PBOR)-2017. 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. 

19. The RO shall send a copy of the LPC-cum-Data-Sheet to the pensioner concerned at their available address stating that the LPC-cum-Data-Sheet is being forwarded to the PSA for issue of PPO in due course. It may also be stated therein that in case some information which could not be included in LPC-cum-Data-Sheet being not available with RO, is desired to be included in the PPO by the pensioner, the same may be forwarded to the RO for generation of corrigendum LPC-cum-Data-Sheet. 

20. In order to facilitate Record Office concerned to identify living pensioners for issue of corrigendum PPO, respective PSAs will provide a list of living pensioners/ family pensioners, who will thoroughly verify from their Service records maintained at their end. The RO concerned will submit their notional pay fixation with required information to respective PSAs in the prescribed LPC-Cum-Data Sheet duly vetted by the PAO concerned in respect of those pensioners. However, such list of living pensioners may not be exhaustive. ROs are advised to make further efforts at their end to identify all remaining pensioners and submit LPC-cum-Data Sheet duly vetted by PAOs concerned in these cases also. 

21. Record office may endeavour to mention Aadhaar No., Mobile No., PAN No., E-mail ID of pensioner/ family pensioner or spouse in the prescribed LPC-Cum-Data Sheet, if readily available. In case these details are not available, efforts may be made to obtain these details from the pensioner/family pensioner/ spouse and subsequently propose amendments through use of the same LPC-Cum-Data Sheet for issue of Corrigendum PPO. However, for revision of pension, this is not a mandatory requirement. 

22. The claim will be forwarded along with all related documents by the Record Office concerned of all three Services to their respective PSA after getting it vetted from their PAO concerned. Simultaneously, soft copy of the filled proforma of LPC-Cum-Data-Sheet duly signed by R.O. and PAO will also be sent to PSA concerned through WAN as well as in CD for speedy issue of PPOs. All LPC-cum-Data-Sheet originating from one RO will bear a running serial number. Concerned PSA will issue a revised Pension Payment Order i.e. Corrigendum Pension Payment Order in new PPO no. series. New PPO number will contain 12 digits and PPO suffix of 4 digits. Only electronic PPOs (e-PPO) will be generated which will be digitally signed and sent to Record Office through CGDA WAN in "pdfs" format. No physical PPOs will be printed and sent to any agency. The new PPO will also contain a QR code wherein all important data will be embedded. This QR code may be used by PDA's to capture the data. These e-PPOs will be sent to PDAs electronically. PDAs are being requested to effect payment based on e-PPO without waiting for any confirmation from respective ROs. 

23. Record Office concerned shall download the PPO and forward the Pensioner's/ Family Pensioner's copy to them via e-mail or post as the case may be. However, if any discrepancy is noticed by RO, the same may be brought to the notice of PSAs positively within one month from the date of receipt, otherwise it will be assumed that RO have found the PPO in order. 

24. Monetary allowance attached to Gallantry awards and Constant Attendance Allowance will continue to be paid as separate element in addition to the pension/ family pension updated under these orders. These payments will not be taken into account for purpose of revision as well as for applying minimum limit of Rs. 9000/- per month to pension/ family pension. 

25. In view of the foregoing, Record Offices are requested to ensure that claims on the subject matter are floated in accordance with clarification given in above paras without delay. It is further requested that Record Offices may evolve suitable mechanism to monitor progress in forwarding of LPC-Cum-Data Sheet. 

26. In case of need of any clarification, Record office concerned may contact to Shri Nasim Ullah, ACDA(P), Grants (ORs), Office of the PCDA (Pensions), Draupadi Ghat, Allahabad-211014, Phone No. 0532-2420687 and Shri A. K. Malvtya, Sr. A.O., Office of the PCDA(Pensions), Draupadi Ghat, Allahabad-211014, Email ID- arviid_malviya.cgda(nic.in, Phone No. 0532-2420293, Mobile No. 9450619556. 

Sd/- 
(Nasim Ullah) 
ACDA (P) 



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CENTRAL GOVT EMPLOYEES & PENSIONERS NEWS: 7TH CPC PENSION REVISION ON NOTIONAL FIXATION OF PRE- 2016 RETIRED ARMED FORCES PENSIONERS/ FAMILY PENSIONERS- PCDA CIRCULAR NO. 585
7TH CPC PENSION REVISION ON NOTIONAL FIXATION OF PRE- 2016 RETIRED ARMED FORCES PENSIONERS/ FAMILY PENSIONERS- PCDA CIRCULAR NO. 585
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CENTRAL GOVT EMPLOYEES & PENSIONERS NEWS
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