7th CPC Pension OM for Post-2016- Revision of provisions regulating pension/family pension/gratuity/commutation/disability pension/ex-gratia etc
F. No 38/37/2016-P&PW(A)(.-‘)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners’ Welfare
Lok Nayak Bhawan, New Delhi-110003
Dated the 4th August, 2016
OFFICE MEMORANDUM
Sub: 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.
The undersigned is directed to state that in pursuance of Government’s decision on the recommendation of the Seventh Central Pay Commission, the President is pleased to introduce the following modifications in the rules regulating pension, Retirement/Death/Service Gratuity, Family Pension, disability pension, ex-gratia lump-sum compensation, etc. under the CCS (Pension) Rules, 1972 and Commutation of Pension under CCS (Commutation of Pension) Rules, 1981, CCS (Extraordinary Pension) Rules, 1939, etc.
2. These orders apply to Central Government Employees governed by the CCS (Pension) Rules, 1972. Separate orders will be issued by the Ministry of Defence, Ministry of Railways and the AIS Division of the DOPT in respect of Armed Forces personnel, Railway employees and the officers of All India Services respectively on the basis of these orders.
DATE OF EFFECT
3.1 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.
3.2 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 pension becoming 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 CC8 (Pension) Rules,
1972.
EMOLUMENTS
4.1 The term ‘Emoluments’ for purposes of calculating various pensionary benefits other than various kinds of Gratuity shall have the same meaning as in Rule 33 of the Central Civil Services (Pension) Rules, 1972.
4.2 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.
4.3 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
5.1 Subject to para 5.2, there shall be no change in the provisions regulating the amount of pension as contained in Rule 49 of the CCS(Pension) Rules.
5.2 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 highest pay in the Govt. is Rs 2,50,000 with effect from 1.1.2016). The provisions of sub-rule (2) of Rule 49 of the CCS (Pension) Rules, 1972 shall stand modified to this extent.
5.3 The quantum of additional 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 Pension Sanctioning Authorities should ensure that the date of birth and the age of a pensioner is invariably indicated in the pension payment order to facilitate payment of additional pension by the Pension Disbursing Authority as soon as it becomes due. 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 pension 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 attaining the age of 85 years will be shown as (i).Basic Pension = Rs.10,000 and (ii) additional pension = Rs.3,000 pm.
Retirement/ Death Gratuity
6.1 The rates for payment of death gratuity shall be revised as under:
| Length of qualifying- service |
Rate of Death Gratuity |
| Less than One year | 2 times of monthly emoluments |
| One Year or more but less than 5 years |
6 times of monthly emoluments |
| 5 years or more but less than 11 years |
12 times of monthly emoluments |
| 11 years or more but less than 20 years |
20 times of monthly emoluments |
| 20 years or more | Half month’s emoluments for every completed six monthly period of qualifying service subject to a maximum of 33 times of emoluments. |
Accordingly, Rule 50(1)(b) of Co8 (Pension) Rules, 1972 shall stand modified to this extent.
6.2 The maximum limit of Retirement gratuity and death gratuity shall be Rs. 20 Iakh. The ceiling on gratuity will increase by 25% whenever the dearness allowance rises by 50% of the basic pay. Accordingly, first proviso under Rule 50(1)(b) of CCS (Pension) Rules, 1972 shall stand modified to this extent.
FAMILY PENSION 1964
7.1 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. Rule 54(2) relating to Family Pension, 1964 under CCS (Pension) Rules, 1972 shall stand modified to this extent.
7.2 The amount of enhanced family pension shall be 50% of basic pay in the revised pay structure and shall be subject to a minimum of Rs.9000/-p.m. and maximum of 50% of the highest pay in the Government. (The highest pay in the Govt. is Rs. 2,50,000 with effect from 1.1.2016).
7.3 There will be no other change in the provisions regulating family pension, enhanced family pension and additional family pension to old family pensioners.
COMMUTATION OF PENSION
8.1 There will be no change in the provisions relating to commutation values, the limit upto which the pension can be commuted or the period after which the commuted pension is to be restored.
9.1 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.
FIXED MEDICAL ALLOWANCE
10.1 Fixed Medical Allowance to the pensioners who are residing in non-CGHS areas and are not availing OPD facility of CGHS shall continue to be paid at the existing rate till a final decision is taken on the basis of recommendations of the Committee constituted for the purpose.
CONSTANT ATTENDANT ALLOWANCE
11.1 The amount of Constant Attendant Allowance to pensioners who retired on disability pension with100°/o disability under the CCS (Extraordinary) Pension Rules, 1939, (where the individual is completely dependent on somebody else for day to day functions) shall continue to be paid at the existing rate till a final decision is taken on the basis of recommendations of the Committee constituted for the purpose.
EX GRATIA LUMPSUM COMPENSATION
12.1 The amount of ex gratia lump sum compensation available to the families of Central Government Civilian employees, who die in the performance of their bona fide official duties under various circumstances shall be revised as under:
| Circumstances | Amount |
| Death occurring due to accidents in course of performance of duties |
25 lakh |
| Death in the course of performance of duties attributed to acts of violence by terrorists, anti social elements etc. |
25 lakh |
| Death occurring in border skirmishes and action against militants, terrorists, extremists, sea pirates |
35 lakh |
| Death occurring while on duty in the specified high altitude, unaccessible border posts, etc. on account of natural disasters, extreme weather conditions |
35 lakh |
| Death occurring during enemy action in war or such war like engagements, which are specifically notified by Ministry of Defence and death occurring during evacuation of Indian Nationals from a war-torn zone in foreign country |
45 lakh |
13.1. Formal amendments to CCS (Pension) Rules, 1972 and CCS (Extraordinary) Pension Rules, 1939 in terms of the decisions contained in this order will be issued in due course. Provisions of the CCS (Pension) Rules 1972, CCS (Extraordinary) Pension Rules, 1939, and CCS(Commutation of Pension) Rules, 1981 which are not specifically modified by these orders, will remain unchanged.
14.1. These orders issue with concurrence of the Ministry of Finance Department of Expenditure vide their U.O. No. 30-1/33(c)/ 2016-IC dated 03.08.2016
15.1. In their application to the employees of the Indian Audit and Accounts Department, these orders issue in consultation with Comptroller and Auditor General of India.
16. Ministry of Agriculture etc. are requested to bring the contents of these orders to the notice of Controller of Accounts/Pay and Accounts Officers and Attached and Subordinate Offices under them on a top priority basis.
(Vandana Sharma)
Joint Secretary to the Government of India
COMMENTS
There is no clarity to the bankers to issue certificate on behalf of pensioners to submit to cghs for stoppage of medical allowances and there is no format. On this reason number of times retired officers has to make so many round to get CGhS pensioner card.As i am staying in Chakripuram, near ECIL and cghs is in begumpet. They never give proper suggessions
There is no clarity on how pension would be fixed, in respect of employees who retired on or after 01-01-2006. There is no confusion as regards the application of the principle of working out pension as 50% of revised pay . But what is not clear is on how the revised pay would be fixed under 7th Pay Commission. For the sake of equity, revised pay shall be fixed (which forms the basis for fixation of pension ) as follows: Entry Pay for the given Pay Band and Grade Pay as per the Pay Matrix of 7th Pay Commission plus number of increments on earned in the retiring grade (corresponding to the index number). The said procedure needs to be followed to remove the anomalies created in pay fixation under 6th Pay Commission (The root cause of anomaly was due to consideration only one increment for each of two increments one earned) – K. A. N. Talpasai
Instead ofmultiplying the. existing pendion or family pension under the 6th cpc on 31st dec.2015 by the multiplication factor of 2.57. 50%of the pay fixed in the pay matrix as is fixed to the workingemployees should be given the revised pension as it ismore beneficial to the pre 2006 pensioners. For example in my caseI am drawing a basic pension of 14960 as on 31.12.15. If it is multiplied by 2.57 I will get a pension ofrupees38450 whereas 50% of the pay will be 39400. I was in the pay band of 15600-39000 with a grade pay of rupees 7600. The benefit due to the fact of fixing the pay in the minimum of payscale 78800_209200 meant for grade pay of 7600. The pensionershould be allowed to exercise the option which ever is beneficial. Otherwise the pension gets reducrd to48% instead of 50%.. Wherher this can berectified. This affectsmany pensioers who were fixed in the minimum of 6th payscale.