Tuesday, May 9, 2017

Cabinet approves revision of pension to pre 2016 pensioners

The Cabinet approved modifications in the recommendations of the 7th CPC relating to method of revision of pension of pre-2016 Pensioners and Family Pensioners based on the suggestions made by the Committee, chaired by Secretary(Pensions), constituted with the approval of the Cabinet. While approving 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 more beneficial option to the pensioners, Cabinet has accepted the recommendations of the Committee, which has suggested revision of pension based on the information contained in the Pension Payment Order (PPO) issued to every pensioner. 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.