GOVERNMENT PRESS RELEASE ON PENSION RE-FIXATION OPTION 3
Dear Comrades! We are in receipt of several phone calls enquiring about the latest press release of the Government on the decision of the Cabinet on pension refixation. We reproduce below the exact Press Release by the Government on Cabinet approval of modifications in 7th CPC recommendations on Pension Refixation. We wait for the Government Orders for understanding tha actual effect of the Government decision, and, just reproduce the Government Press Release hereunder:
KKN SG NCCPA
Press
Information Bureau
Government
of India
Cabinet
03-May-2017 20:27 IST
Cabinet approves modifications in the 7th
CPC recommendations on pay and pensionary benefits.
The
Union Cabinet chaired by the Prime Minister Shri Narendra Modi approved
important proposals relating to modifications in the 7th CPC (Central Pay
Commission) recommendations on pay and pensionary benefits in the course of
their implementation. Earlier, in June, 2016, the Cabinet had approved
implementation of the recommendations with an additional financial outgo of Rs
84,933 crore for 2016-17 (including arrears for 2 months of 2015-16).
The
benefit of the proposed modifications will be available with effect from 1st
January, 2016, i.e., the date of implementation of 7th CPC recommendations.
With the increase approved by the Cabinet, the annual pension bill alone of the
Central Government is likely to be Rs.1,76,071 crore. Some of the
important decisions of the Cabinet are mentioned below:
1. Revision
of pension of pre – 2016 pensioners and family pensioners
The
Cabinet approved modifications in the recommendations of the 7th CPC relating
to the method of revision of pension of pre-2016 pensioners and family
pensioners based on suggestions made by the Committee chaired by Secretary
(Pensions) constituted with the approval of the Cabinet. The modified
formulation of pension revision approved by the Cabinet will entail an
additional benefit to the pensioners and an additional expenditure of
approximately Rs.5031 crore for 2016-17 over and above the expenditure already
incurred in revision of pension as per the second formulation based on fitment
factor. It will benefit over 55 lakh pre-2016 civil and defence
pensioners and family pensioners.
While
approving the implementation of the 7th CPC recommendations on 29th June, 2016,
the Cabinet had approved the changed method of pension revision recommended by
the 7th CPC for pre-2016 pensioners, comprising of two alternative
formulations, subject to the feasibility of the first formulation which was to
be examined by the Committee.
In
terms of the Cabinet decision, pensions of pre-2016 pensioners were revised as
per the second formulation multiplying existing pension by a fitment factor of
2.57, though the pensioners were to be given the option of choosing the more
beneficial of the two formulations as per the 7th CPC recommendations.
In
order to provide the more beneficial option to the pensioners, Cabinet has
accepted the recommendations of the Committee, which has suggested revision of
pension based on information contained in the Pension Payment Order (PPO)
issued to every pensioner. The revised procedure of fixation of notional
pay is more scientific, rational and implementable in all the cases. The
Committee reached its findings based on an analysis of hundreds of live pension
cases. The modified formulation will be beneficial to more pensioners
than the first formulation recommended by the 7th CPC, which was not found to
be feasible to implement on account of non-availability of records in a large
number of cases and was also found to be prone to several anomalies.
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