Implementation of Government's decision on the recommendations of the
7th Central Pay Commission (CPC) - Revision of pension of pre-1.1. 2016
Defence Forces pensioners / family pensioners etc. CLICK HERE FOR THE OM
Ministry of Personnel, Public Grievances and Pensions
Department of Pension & Pensioners’ Welfare
Lok Nayak Bhavan, Khan Market, New Delhi -110 003
Sub: Revision of Pension of pre-2016 pensioners
/ family pensioners - Procedural actions
Ref: 1. O.M.No. 38/37/2016-P&PW (A) dated
12.05.2017 of GOI, Ministry of Personnel Public
Grievances & Pension Department of Pension and Pensioners WeIfare
2. CPAO New Delhi OM No. CPAO/lT &
Tech/Revision (7th CPC) /19.Vol-IlI /2016-17/61 dated 07.07.2017
3. F.No 4/23/2017-P&PW(D) GOI, Ministry of
Personnel Public Grievances &Pension
Department of Pension and Pensioners Welfare dated 25-07-2017
4. No. 4/23/2017-P&PW(D) GOI Ministry of
Personnel Public Grievances &Pension Department of Pension and
Pensioners Welfare dated 07-08-2017
A kind reference is invited to the OMs cited
above wherein the procedure for revision of pension/ family pension has been evolved.
It has been categorically stated in the reference (1) OM that revision is
to be done by the Departments from where the pensioners had retired. In order
to avoid any ambiguity or confusion, as to the modalities of revision it had
been emphasised and reiterated in the references 2, 3 and 4 that the revision
of pension should be done suo moto by the Departments concerned without
eliciting or collecting any information / details from the pensioners. In the
reference 4th cited Government have directed “to sensitise the
official dealing with pension cases to suo moto process the pension revision
cases of pre-2016 pensioners / family pensioners forth with based on details
available with Head of Office /PAOs without insisting submissions of any
additional information or documents from
them.” In spite of specific directions / orders some departments like Railways,
Audit and Accounts Department, Defence Civilians etc. are calling for details
regarding pay, pay scale and pension from the pensioners and family pensioners
causing difficulties and embarrassment to the pensioners / family pensioners. Southern
Railway has gone to the extent of publishing an Advertisement in several
newspapers asking to details in a Proforma within a period of 30 days. It is
really surprising how the Departments can go against the letter and spirit of
the unambiguous orders of the Government of India. This Association apprehends
that such procedure will result in delay /procrastination in the revision and
authorization of pension /family pension. We would therefore request the
Government to kindly issue strict instruction to all the Departments to comply
scrupulously with the earlier orders of the Government and to expedite the
process of revision of pension / family pension.
Thanking you, yours faithfully
Comptroller & Auditor General of India , O/o The Comptroller & Auditor
General of India, Pocket-9, Deen Dayal Upadhyaya Marg, New Delhi-110124.
Commissioners- (Railways), Railway Board, Ministry of Railways, Rail Bhavan,
Raisina Road, New Delhi-l l O 001
General Manager, Southern Railway, Chennai
General of Defence Accounts, Ulan Batar Marg, Palam, Delhi Cantt.- 110 010
Controller (Pension), Central Pension Accounting Office, Trikoot- II, Bhikaji
Cama Place, New Delhi.
Implementation of Government's decisions on the recommendations of the
ih Pay Commission-Revision of Pension of pre-2016 pensioners/family
pensioners etc- Procedural actions for revision. No formal application is necessary for revision ofpension/family pension.
The instructions issued by this Department do not provide for submission of application
by individual pensioners/family pensioners for revision of pension / family pension CLICK HERE FOR ORDERS
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.
Sub: Budget proposals 2017-18 – Personal Income
Tax- Additional burden on certain lowincome
This Association appreciates the
approach of the Government to reduce the burden of taxation of honest tax
payers and salaried persons who are showing their income correctly. We also
consider that your proposal “to reduce the existing rate of taxation for
individual assessees between income of Rs. 2.5 lakh to Rs. 5 lakh to 5% from the present rate of 10%” is a
welcome step in the right direction. Your claim is that “this would reduce the
tax liability of all persons below Rs. 5 lakh income either to zero (with
rebate) or their existing liability.” In order not to have duplication of
benefit, the existing benefit of
rebate available to the same group of beneficiaries is being reduced to Rs. 2500/- available
only to assessees upto income of Rs. 3.5
lakhs (Para 174 of the budget speech).
We may submit that your present
proposal actually increases the tax burden of senior citizens who are in the
income bracket of Rs. 3, 50,010/- to Rs. 3,99,990/- though the intention of
your proposal is to reduce the tax
liability of all persons below Rs. 5 lakh income. For example, the tax
liability for a senior citizen having an income of Rs. 3,50,010/- during the
F.Y.2016-17 is Re. 1/- only whereas the tax liability for the same person
during the F.Y.2017-18 would be Rs. 2576/- (including the education cess). We may also
bring to your notice that the senior citizens have little scope to avail the
concession under section 80(C). We earnestly believe that the Hon’ble Finance
Minister would not have anticipated this anomalous position.
As the intention of the Government is
to “reduce the tax liability of all persons below Rs. 5 lakh income,” this
Association requests you to be gracious to revisit the proposal and amend it to
extend the tax rebate of Rs. 2500/- to all persons having a taxable income
below Rs. 5 lakhs.
Thanking you, yours faithfully
T.I. Sudhakaran, General Secretary Copy to:
1.Com. Shiv Gopal Mishra,Secretary, Staff side JCM,
13-C, Feroz Shah Road, New Delhi – 110 001 – For information and necessary
2.Com. K.K.N. Kutty, Secretary General, NCCPA, 13-C,
Feroz Shah Road, New Delhi – 110 001 – For information and necessary action