Lok Sabha Question No. 2819 (UNSTARRED), answered on 2017-08-02
Subject: Fixation of Pension
Ministry: PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
Asked by: ADVOCATE NARENDRA KESHAV SAWAIKAR, NAGARAJAN P.

## GOVERNMENT OF INDIA

## MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS (DEPARTMENT OF PENSION AND PENSIONER'S WELFARE)

## LOK SABHA UNSTARRED QUESTION NO. 2819

(TO BE ANSWERED ON 02.08.2017)

## FIXATION OF PENSION

## 2819.   ADV. NARENDRA KESHAV SAWAIKAR: SHRI P. NAGARAJAN:

Will the PRIME MINISTER be pleased to state:

- (a) whether  some  anomalies  came  to  the  notice  of  the  Government  with  regard  to  the fixation  of  pension  following  the  implementation  of  the  7th  Pay  Commission recommendations and if so, the details thereof;
- (b) whether  it  is  also  a  fact  that  a  committee  set  up  by  the  Government  to  settle  the anomaly has submitted its report;
- (c) if so, the details thereof and the reaction of the Government thereon;
- (d) the total number of pensioners getting pension from Union Government and the time by which the pensioners are likely to be paid their arrears; and
- (e) whether  the  Government  has  any  proposal  to  create  a  separate  oraganization  for pension  related  issues  and  if  so,  the  details  thereof  along  with  the  time-frame  for setting up such organization?

## ANSWER

Minister of State in the Ministry of Personnel, Public Grievances and Pensions and Minister of State in the Prime Minister's Office. (DR. JITENDRA SINGH)

(a)to(c): In implementation of Government's decision on the recommendation of the Seventh Central Pay Commission (7 th CPC), orders have been issued vide Department of Pension & Pensioners'  Welfare  O.M.  No.  38/37/16-P&PW(A)  (i)  dated  04.08.2016  for  revision  of provisions  regulating  pension/gratuity/  commutation  of  pension/family  pension/disability pension/ex-gratia  lump-sum  compensation,  etc.  in  respect  of  the  employees  retiring  on  or after 01.01.2016.

For revision of pension of pre-2016 civil pensioners, the 7 th CPC recommended the following two formulations:

- (i) Notional Pay of employees who retired prior to 01.01.2016 may be fixed in the Pay Matrix on the basis of the Pay Band and Grade Pay at which they retired, by adding the number of increments he/ she had earned in that level while in service, to the minimum of the corresponding level in the matrix.  Fifty percent of the total amount so arrived at shall be the revised pension.
- (ii) The  pension,  as  had  been  fixed  at  the  time  of  implementation  of  the  6th  CPC recommendations, may be multiplied by 2.57 to arrive at an alternate value for the revised pension.

7 th CPC recommended that the pensioners may be given the option of choosing the formulation which is more beneficial to them. Orders were issued for revision of pension as per  Formulation  (ii)  above  vide  Department  of  Pension  &  Pensioners'  Welfare  O.M.  No. 38/37/16-P&PW(A)  (ii)  dated  04.08.2016  and  the  pension  disbursing  authorities  were advised  to  make  payment  of  revised  pension  accordingly  without  waiting  for  the  revised pension payment authority. A Committee under the chairmanship of Secretary, Department of Pension & Pensioners' Welfare was constituted to examine the feasibility of Formulation (i). The Committee observed that Formulation (i) as recommended by the 7 th CPC might be difficult to implement in a large number of cases and this method may also cause anomalies.

In implementation of the recommendations of the aforesaid Committee, orders have been  issued  vide  Department  of  Pension  &  Pensioners'  Welfare  O.M.  No.  38/37/16P&PW(A) dated 12.05.2017.  It has been provided that the revised pension/family pension w.e.f. 01.01.2016 in respect of all Central civil pensioners/family pensioners 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 by notional pay fixation under each intervening Pay Commission based on the Formula for revision of pay. 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. Higher of the two  Formulations  i.e.  the  pension/family  pension  already  revised  in  accordance  with  this Department's OM dated 04.08.2016 or the revised pension/family pension as worked out by notional pay fixation method, shall be the revised pension/family pension w.e.f. 01.01.2016.

(d): There  were  around  55.51  lakh  pensioners/family  pensioners  (including  defence pensioners/family pensioners) as on 31.03.2016.  All Pension Sanctioning Authorities have been  advised  to  accord  top  priority  to  the  work  of  revision  of  pension  and  issue  revised Pension Payment Authority in implementation of the above orders expeditiously.

(e): There is no proposal for creation of any other organisation for pension related issues.

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