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Anomaly in Pension Fixation as per Recommendations of 7th Pay Commission

with 10 comments
Anomaly in Pension Fixation as per Recommendations of 7th Pay Commission

One of our regular reader Mr.Visvesvara M K has expressed his views about the calculation of pension for pre-20016 pensioners as per the 7th Pay Commission.

There is an anomaly in pension fixation of pre-2016 pensioners as per 7th CPC recommendations. The 7th CPC has offered two options.


Option I:
Pension calculated by multiplying pension fixed by VI CPC by a multiplying factor of 2.57.

Option II:
Notional pay to be determined by multiplying entry pay under appropriate e Grad Pay and Level taking into consideration number of increments earned in the pay scale from which one retires. 50 % of this notional pay is the pension w.e.f. 1-1-2016.
Whichever pension of Option I and Option II is higher is the pension.

ANOMALY:
If one gets a promotion to higher post in which he serves for less than one year there is no increment earned. 50% of this notional pay as per Pay Matrix of the VII CPC will be pension w.e.f. 1-1-2016 and this pension under Option II is always and always lower than the Pension under OPTION I. Thus, there is no choice for him.

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10 comments:

Radhey Shyam Sharma said...

As regards revision of pension of pre-2016 pensioners as per option II, benefit of rounding of pay as per pay matrix introduced by seventh pay commission is not available to them as in the case of serving employees. Instead of allowing the increments earned on the minimum of the pay level concerned in the pay matrix, his pay at the time of retirement first should be revised, multiplying the same by multiplying factor 0f 2.57 and rounded off/fixed at the stage arrived at as per pay matrix as in the case of serving employees and then work out the revised pension at the 50 percent of the amount so arrived at for the purpose of option II for comparing with option I, i.e. the amount of pension arrived at directly multiplying the existing pension by the multiplying factor of 2.57.

Panditji said...

In such case multiplication of 2.57 with current pension will be higher than option 2 even if an increment is added. Where is the anomaly?

NarayanaRao Jana said...

There is no anomaly.The pay commission's recommendation is very clear.The working example gives a clear picture how to fix pension.

Anonymous said...

Fixation of Pension is utterly anomalous.
Meaning, there literally is no choice available except to accept for option I. So practically there is no option offered to him under VII PC.

Consider this:
A fellow joined service in Scale 9300-34800 GP-2800.
He retires after 35 years; having been for 5 years in GP-4800.

As per Table 5: Pay Matrix (Civilian Employees),
Under GP-4800, entry pay is 47600 + 4 increments drawn in GP-4800 = 53.600.
Pension-> 53,600/2 = 26,800

Presuming this fellow never got promoted from GP-2800, after 30 years of service, his Pay would be= 66,600.
Pension-> 66,600/2 = 33,300.

So what advantage does the fellow get by being promoted through selection/suitability or otherwise?

You can check taking any other example, yo will get the same anomalous fixation of pension.

Whatsay?!!

Anonymous said...

Practically there is no option for a pensioner to choose between, except to accept Option I. Because option II is utterly anomalous.
Look at this:
X joined service in Gr.9300-34800 GP-2800.
Retired after 35 years - having drawn 4 increments in GP-4800.

Option II for Pension fixation:

As per Table 5: Pay Matrix (Civilian Employees),

His entry pay in GP-4800 is 47,600 + 4 increments = 53,600.
Pension will be 53,600 / 2 = 26,800.

Consider X retired without a single promotion in GP-2800,
His entry pay in GP-2800 is 29,200 + 34 increments = 77,300.
Pension will be 77,300 / 2 = 38,650.

Inference:
X gets grater pension after retiring in a far lower post than after being promoted through suitability/selection procedures and serving in posts of higher responsibilities.

Find any logic or sense?


Lakshmanrao seshagiri said...

Central Government Notification is awaited from competent authorities, which is required for implementation,purposes...

Anonymous said...

In the year 2015 I am promoted to the max post I can have. Passing a competive exam and three departmental training are in my credit. But the 6 th CPc had limited to 3 acp and two promotions I got without any financial benefit. I am retired on 31st oct 2015. Now I am afraid those who have without training and without exam and not got promoted will draw more pension than me in 7 th CPc. first the 6 th CPc grade pay anomaly to be fixed. Punishment for serving with higher responsibilities?

ramesh said...

In order to protect pension of promotee they should be allowed to step up equal to non-promotee pension. Or another option 3rd option be given to calculate pension on the basis of entry grade. Otherwise, 7th cpc may be placed in dustbins.

JK RAGHUNATHAN said...

I am suggesting a 3rd Option to avoid Anomalies/Injustice that will arise in Fixation of revised Pension as per Formulation 1 recommended in sub para (i) of Para 10.1.67 of 7th CPC Report. The Injustice/ Disparity that Will arise mainly are as follows :--

* Junior Pensioner getting MORE Revised Pension than Senior Pensioner
* Cases where Revised Pension Fixed as per Formulation 1 will always be LESS than
the Revised Pension Fixed using multiplication Factor of 2.57 (Option 1) DUE TO
VARIOUS REASONS rendering Option 2 (FORMULATION 1) MEANING LESS and ABSURD.

My Suggestion is as Follows :--

FOR THE PURPOSE OF CALCULATION / COMPUTATION OF NOTIONAL PAY AS PER PAY MATRIX : ---

Number of Increments Earned (GAINED) Either in the RETIRING PAY SCALE or in the IMMEDIATE LOWER PAY SCALE or in the CORRESPONDING PRE-REVISED PAY SCALE as the Case may be , should be DETERMINED based on the "NUMBER OF STAGES FROM THE MINIMUM PAY OF THE PAY SCALE (STARTING PAY) UPTO THE LAST PAY DRAWN IN THE PAY SCALE".

THE NUMBER OF STAGES FROM THE STARTING PAY (MINIMUM PAY OF THE PAY SCALE) UPTO THE LAST PAY DRAWN IN THE PAY SCALE DETERMINES THE NUMBER OF INCREMENTS EARNED (GAINED) IN THAT PARTICULAR PAY SCALE AND NOT THE ACTUAL NUMBER OF INCREMENTS PHYSICALLY EARNED.

In this Connection, Illustration on Fixation of Revised Pension in Case 2 of Para 10.1.71 (Page 396) of 7th CPC Report is RELEVANT. It is mentioned that Pensioner Retired at LAST PAY DRAWN of Rs.4000/-on 31 JAN 1989 under 4th CPC Regime having Drawn 9 Increments in the Pay Scale of Rs.3000-100-3500-125-4500. How can he Draw 9 Increments in the Said Pay Scale under 4th CPC Regime when he has Retired on 31 JAN 1989. He has Served Only 3 Years and 1 month in this Pay Scale and hence he can Draw Only Maximum 3 Increments in that Pay Scale
(01 JAN 1986 31 JAN 1089).

It is therefore EVIDENT that 9 Increments Said to have been Drawn in the RETIRING PAY SCALE
viz., Rs.3000-100-3500-125-4500 is based on THE NUMBER OF STAGES FROM THE STARTING PAY (RS.3000) UPTO THE LAST PAY DRAWN (Rs.4000) IN THIS PAY SCALE Which is 9 (NINE). FROM Rs.3000 to Rs.3500, THE NUMBER OF STAGES IS 5 (FIVE) and FROM Rs.3500 to Rs.4000,it is
4 (FOUR) and THE TOTAL NUMBER OF STAGES UPTO THE LAST PAY DRAWN is 9 ( 5+4=9).

Thus it is EVIDENT that THE NUMBER OF STAGES FROM THE STARTING PAY (MINIMUM PAY OF THE PAY SCALE) UPTO THE LAST PAY DRAWN IN THE PAY SCALE DETERMINES THE NUMBER OF INCREMENTS EARNED (GAINED) IN THE PAY SCALE , For the Purpose of CALCULATION OF NOTIONAL PAY as per PAY MATRIX.

ILLUSTRATION to Determine the Number of Increments Earned in the Pay Scale :--

Pensioner A Retired at LAST PAY Drawn of Rs.11000/- in the PAY SCALE of Rs.7500-250-12000. Initially his Pay was Fixed at Rs.9000 in this Scale and he ACTUALLY EARNED 8 Increments at the Rate of Rs.250 and Retired at the PAY (LAST PAY) of Rs.11000/-

For the Purpose of arriving at the NOTIONAL PAY, the NUMBER OF INCREMENTS ACTUALLY (PHYSICALLY) EARNED ( 8 in this Case) Should NOT be Considered. THE NUMBER OF STAGES FROM THE STARTING PAY (Rs.7500) UPTO THE LAST PAY DRAWN (Rs.11000/-) IN THIS PAY SCALE IS 14 Which is to be TREATED AS THE NUMBER OF INCREMENTS EARNED (14) IN THE PAY SCALE for the Purpose of ARRIVIG AT THE NOTIONAL PAY as per PAY MATRIX.

With Regards and Best Wishes,
JK RAGHUNATHAN

JK RAGHUNATHAN said...

I had given Very Valuable, Useful, meaningful and Most beneficial suggestions on Fixation of Revised Pension some time back. I had taken pains to gather all the relevant Information and had suggested Best solution for the ANOMALY and Injustice likely to arise in the fixation of Pension as per Formulation 1 recommended in 7th CPC Report. All the Readers of Your Website Would have come to know the Anomalies and their Remedy.

I want to WITHDRAW MY VIEWS FORTHWITH AND REQUEST YOU NOT TO PUBLISH MY VIEWS IN YOUR WEBSITE.

I HAVE SAVED MY COMMENTS IN MY COMPUTER AND OTHER DEVICES so that I can send it to Other WEBSITES , PENSIONERS ASSOCIATIONS, JCM (Staff Side), EMPLOYEES UNIONS and Concerned CENTRAL GOVERNMENT DEPARTMENTS for giving WIDE PUBLICITY.

JK RAGHUNATHAN


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