Interpretation of Proposed Option 3 for revised Pension by RSCWS

7th Pay Commission Pension revision – Interpretation of Proposed Option 3 by RSCWS for revised Pension as per 7th CPC recommendations as an alternate to Option 1 recommended by 7th Pay Commission

INTERPRETATION OF PROPOSED OPTION 3 FOR REVISED PENSION HOW FAR IS IT AN ALTERNATIVE TO OPTION 1 RECOMMENDED BY 7Tth CPC? By N. P. MOHAN, President, RSCWS

The most significant recommendation of 7th  CPC is to bring parity between past pensioners with those retiring after 1-1-2016 (Para 10.1.67). A long standing demand of the pensioners, who have been the victim of Modified Parity in the last two decades from 1-1-1996 (5th CPC), has been addressed by the Commission The parity is sought to be achieved by the recommendation of Option 1 for revised pension which provides for consideration of increments earned in the last Level  by a pensioner while in service. Recognizing the delay in checking record for ascertaining the increments for implementation of this option, revised pension in the interim phase was recommended to be fixed by multiplying the pension fixed after 6th  CPC by MF of 2.57 (Option 2). This option has already been implemented.

While  accepting the  above  recommendations, Govt.  had  constituted a  5  member  Committee under  the chairmanship of Secretary (Pension) to examine the feasibility of implementation of Option 1. The Committee in its meeting with JCM on 6th October has suggested an alternative option (Option 3) to overcome the difficulty of tracing record in some cases. It has been indicated in Para 5 of the minutes of the meeting “that the Committee has found that the alternative method of arriving at notional pay in Seventh CPC by applying formula for pay revision for serving employees in each Pay Commission and giving 50% of this as pension to be beneficial to all pensioners in comparison to the fitment method.”

Dispensation of revised pension under alternative Option 3 will depend on the decision of the Govt on the recommendations of this Committee. The impact of Option 3 as understood from the proposal of the Committee mentioned in above is reflected in the 3 tables indicating the revised pension.

EXAMPLE OF REVISED PENSION UNDER OPTIONS 1 & 2 of 7th CPC & OPTION 3
BASED ON NOTIONAL PAY IN SUCCESSIVE PAY COMMISSIONS
(As proposed in Para 5 of the minutes of the meeting of Feasibility Committee held with JCM on 6-10-2016)

FOR PENSIONERS RETIRING IN 5TH CPC REGIME (1.1.1996 TO 31-12-2005) FROM SCALE S 13 (7450-11500)-LEVEL 7
Average
Pay on retirement

Pension
after 5th
CPC (Higher of Mod. Parity or
with factor of
2.26) – whichever is
higher

Notional
pay-6th
CPC (As per Fitment table-6th CPC)

Notional
pay-7th
CPC with
MF OF
2.57-3rd option (col.2xMF)

Pay in the
next cell of 7th
CPC Pay
Matrix-
3rd
Option

Pay based
on option 1 with no. 0f
increments
(7th CPC pay matrix- Level 7)

Revised
Pension as per
Option 3
(col.4/2)
Revised
Pension as per
Option 1
(col.5/2)

Revised
Interim
Pension as per Option 2 of
7th CPC (Col.2×2.57)

1

2

          3       
18460

4

5

           6       
44900

7

8

9

7450 9230 47442 47600 23800 22450 23721
7675 9230 18880 48522 49000 46200 24500 23100 23721
7900 9230 19300 49601 50500 47600 25250 23800 23721
8125 9230 19720 50680 52000 49000 26000 24500 23721
8350 9436 20144 51770 52000 50500 26000 25250 24249
8575 9690 20550 52814 53600 52000 26800 26000 24903
8800 9944 20970 53893 55200 53600 27600 26800 25556
9025 10198 21390 54972 55200 55200 27600 27600 26210
9250 10453 21810 56052 56900 56900 28450 28450 26863
9475 10707 22230 57131 58600 58600 29300 29300 27516
9700 10961 22650 58211 58600 60400 29300 30200 28170
9925 11215 23070 59290 60400 62200 30200 31100 28823
10150 11470 23480 60344 60400 64100 30200 32050 29477
10375 11724 23900 61423 62200 66000 31100 33000 30130
10600 11978 24320 62502 64100 68000 32050 34000 30783
10825 12232 24740 63582 64100 70000 32050 35000 31437
11050 12487 25160 64661 66000 72100 33000 36050 32090
11275 12741 25580 65741 66000 74300 33000 37150 32744
11500 12995 25990 66794 68000 76500 34000 38250 33397
NOTES:-  1. This table is illustrative under option 3 which is as per understanding of the proposal indicated by the Feasibility Committee based on Notional pay fixation in successive Pay Commissions.
2.     Actual     fixation     of     revised     pension     will     depend     on     Govt’s     decision     in     the     matter.
3. The figures of revised pension under Option 1 (Col. 8) are for each stage of increment.
Compiled by: N. P. Mohan, President, RSCWS

Source : RSCWS

 

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