Implementation of Government’s
decision on the recommendations of 7th Central Pay Commission – Revision of
pension of pre-2016 Pensioners / Family Pensioners-reg.
CPAO OM regarding 7th CPC Pension
and Arrears
Government
of India
Ministry
of Finance
Department
of Expenditure
Central
Pension Accounting Office
Trikoot-II,
Bhikaji Cama Place,
New
Delhi-110066
CPAO/IT&Tech/Revision(7th
CPC)/19.Vol-III/2016-17/41
06/06/2017
OFFICE
MEMORANDUM
Subject: Implementation of
Government’s decision on the recommendations of 7th Central Pay Commission –
Revision of pension of pre-2016 Pensioners / Family Pensioners, etc.-reg.
Reference is invited to the
Department of Pension & Pensioners’ Welfare OM No.38/37/2016-P&PW (A)
dated-12th May 2017 (copy enclosed) regarding revision of pension of pre-2016
pensioners/family pensioners under 7th CPC recommendations. It has been decided
that the Pension/Family Pension w.e.f. 01.01.2016 in respect of all Central
civil pensioners/family pensioners, including CAPFs, who retired/died prior to
01.01.2016, will be revised by notionally fixing their pay in the pay matrix
recommended by the 7th CPC in the Level/Index corresponding to the pay in the
pay scale/pay band and grade pay at which they retired/died. 50% of the
notional pay fixed as per the 7th CPC 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. The amount of revised pension/family pension so arrived at shall be
rounded off to the next higher rupee.
2. In compliance of the above
mentioned OM, all the Banks are required to ensure that the correct amount of
revised pension and arrears thereto are paid to the pensioners/ family
pensioners at the earliest on receipt of Revision Authority from CPAO.
Accordingly, Banks are instructed as follows:
i. The functionality of pay fixation
in terms of 7th CPC which entails new fields like Level & Index in the Pay
Matrix should be incorporated in the software that the Banks are using for
pension processing and calculation of arrears.
ii. The credit of revised pension in
the bank accounts of pensioners/family pensioners and payment of arrears should
be in a time bound manner after receipt of Revision Authority from CPAO
(through electronic mode). It should not be later than the next due date of
credit of pension in the pensioners accounts.
iii. No arrears on account of
revision of Pension/Family pension on notional fixation of pay will be
admissible for the period prior to 1.1.2016. The arrears on account of revision
of pension/family pension in terms of these orders would be admissible with
effect from 01.01.2016. For calculation of arrears becoming due on the revision
of pension/ family pension on the basis of this O.M., the arrears of pension
and the revised pension/family pension already paid on revision of
pension/family pension in accordance with the instructions contained in the
DP&PW OM No. 38/37/2016-P&PW (A) (ii) dated 04.08.2016 shall be
adjusted.
iv. Banks are required to take
immediate corrective action on the Internal Audit reports of CPAO on the audit
of the pension paid by the banks to the pensioners/family pensioners under 7th
CPC as per the 2.57 multiplication factor based on the DP&PW OM No.
38/37/2016-P&PW (A)(II) dated 04.08.2016 and CPAO OM No. CPAO/IT &
Tech/Revision (7th CPC)/19. Vol-III/2015-16/109 dated 11.08.2016 to ensure
correct payment of arrears consequent to receipt of revision authority from
CPAO as per (ii) above.
3. Regular review meetings shall be
held with the CPPCs and Government Business Divisions of Banks to monitor the
progress in this regard. Banks are directed to ensure adequate infrastructure
& manpower at their end to process large number of revisions in a short
period of time and also ensure regular internal monitoring at their level.
This issues with the approval of the
competent authority.
Encl:-As
above
(Md.
Shahid Kamal Ansari)
(Asstt.
Controller of Accounts)
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