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7th Pay Commission: Central Government employees must know these key facts on pension; check details

7th pay commission: Pension plays a significant and crucial role in the sustenance of a government employee after his retirement. Here are some key facts on pension to keep government employees abreast with provisions of the pension before their retirement.  

India TV News Desk India TV News Desk
New Delhi Published on: July 20, 2019 17:23 IST
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7th pay commission: Central Government employees must know these key facts on pension

7th pay commission: Pension plays a very crucial and significant role in the sustenance of a government employee after his retirement. According to the norms laid by the 7th pay commission , pension benefits have been extended by many states to their employees. However, most the employees are not familiar with pension norms and they come to know about these rules only after their retirement. Therefore, it is necessary on their part to keep them abreast with provisions of the pension before their retirement, rather it should be part of their retirement planning. 

According to the pension provisions, eligibility for pension requires a government employee to be appointed in a pensionable establishment on or before 31.12.2003, and he/she should retire from government service with a qualifying service of minimum 10 years or more.

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Notably, as per the 7th CPC's recommendations, the provisions regarding revision of pension of pre-2016 pensioners are given below-

  1. According to the government orders, revision of pension of pre-2016 pensioners is done by multiplying the pre-revised pension by a factor of 2.57, which is the fitment factor. This was to be done by the Pension Disbursing Authorities/ Banks.
  2. Further orders were issued, dated 12.05.2017 stating that the revised pension/family pension w.e.f 01.01.2016 of all Central Civil Pensioners/ family pensioners, including CAPF’s, who retired/died prior to 01.01.2016, shall be revised by notionally fixing their pay in the pay matrix recommended by the 7th CPC in the level corresponding to the pay in the pay scale/ pay band and grade pay at which they retired/ died. This will be done by notional pay fixation under each intervening Pay Commission based on the Formula for revision of pay.
  3. While fixing pay on notional basis, the pay fixation formula approved by the government and other relevant instructions on the subject in force at the relevant time shall be strictly followed. 50% of the notional pay 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. 01.01.2016 as per the first Formulation. 
  4. In this case of family pensioners who were entitled to family pension at enhanced rate, the revised family pension shall be 50% of the notional pay as on 01.01.2016 and shall be payable till the period up to which family pension at enhanced rate is admissible as per rules.  The amount of revised pension/family pension so arrived at shall be rounded off to next higher rupee.

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