17.41 Pension: The Commission recommends a revised pension formulation for civil employees including CAPF personnel and Defence personnel,
who have retired before 01.01.2016. This formulation will bring about complete parity of past pensioners with current retirees:
i. All the personnel who retired prior to 01.01.2016 (expected date of
implementation of the Seventh CPC recommendations) shall first be fixed
in the Pay
Matrix being recommended by this Commission, on the basis of the Pay
Band and Grade Pay at which they retired, at the minimum of the
corresponding level in
the matrix. This amount shall be raised, to arrive at the notional
pay of the retiree, by adding the number of increments he/she had earned
in that level
while in service, at the rate of three percent. Fifty percent of the
total amount so arrived at shall be the revised pension. In the case of
the Defence
personnel, total amount so arrived at shall be inclusive of MSP.
ii. The second calculation to be carried out is as follows. The pension,
as had been fixed at the time of implementation of the VI CPC
recommendations,
shall be multiplied by 2.57 to arrive at an alternate value for the
revised pension.
iii. Pensioners maybe given the option of choosingwhichever formulation is beneficial to them.
(
para
10.1.67)
17.42 Since the fixation of pension as per formulation (i) above may
take a little time it is recommended that in the first instance the
revised pension
may be calculated as at (ii) above and the same maybe paid as an
interim measure. In the event calculation as per (i) above yields a
higher amount the
difference may be paid subsequently. (para 10.1.68)
