Anomaly in Pension Fixation as per 7th Pay Commission Recommendations

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.

SOLUTION:

It is common to observe that most of the pensioners retired on superannuation after serving in a higher post on promotion will be retiring within a year or so and the increments earned by them in that pay scale is nil or meager compared to the increments earned in the immediate lower pay scale from which he was promoted and this fact seems to have been given a goby. Pensioner who does not earn any increments in the pay scale on promotion which may be only an extension of the lower pay scale should have his increments earned in the lower pay scale counted for calculation of the notional pay which is a part and parcel of the pay scale to which he is promoted.

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Mr.G R Murthy says…

Mr.Visheswara has pointed out that retirees usually serve for least no of years in promotion scale and no of increments earned are few compared to the increments earned in the prev. scale.I presume that the no of increments is calculated as the diff of pay drawn at the time of retirement and the minimum of the pay in that pay scale When a person gets promotion to a higher post his pay in the promoted pay scale is fixed higher at least by two increments so there is no danger of getting less pension than ones juniors. I think the pension varies with the retirement regime of pay commissions for the same number of years of service in the same grade Am I right in thinking so?