Interpretation of Proposed Option-3 for Revised Pension – How far it is an alternative to Option 1 recommended by 7th CPC?

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.

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5 thoughts on “Interpretation of Proposed Option-3 for Revised Pension – How far it is an alternative to Option 1 recommended by 7th CPC?”

  1. How to arrive at notional pay in option 3 approved by cabinet for 7 th CPC based on data contained in PPO?

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  2. Modified parity is ihitting hard to all employees specially to those who retired from one grade without acp and promotion except stagnation increment after two years like a punishment. I am one of those.i was retired in the yr 2000 as jwm in the scale of 7450-11500.my pension was fixed on 10 months average pay of 12705. The pension was fixed at rs 13226 wef 1.1.2006.which was revised to 33991 wef 1.1.16.my pension works out to 34000 as per modified parity given benefit of rs 9. Is it parity or disparity. Those Persons who were either junior or senior to me are getting nice boost up
    I is requested that matter should taken up through court for acceptance of first option alonwith modified parity. in case weightage is given for increment earned as per 5th cpc.

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  3. Sir, My pre 6CPC revised basic payon retirement with 2 increments was Rs 7900/-PM in the scale of 7450-225-11500. Para 4(2) of Ministry of Pension OM No 38/37/08/P&PW(A) dt 1-9-2008(6CPC imple orders) stipulates that the revuised pension in r/o pre 2006 CG Pensioners, in no case, shall be lower than 50% of the sum of the minimum in the PB and gde pay thereon corresponding to the pre-revised pay scale from which the pensioner had retired. I was sanctioned a pension of Rs 9230/-PM calculating thus =( 7450×1.86+gde pay 4600 =18460 divided by 2 = 9230).But according to fitment table issued by M of Fin on 30-8-2008 the PB+ Gde pay corresponding to the pre-revised basic pay of 7900 is arrived at as 7900×1.86+gde pay 4600 =19300 divided by 2 = 9650. Am I not entitled to pension @ 9650/- ? Pl clarify. C.PRABHAKARAN, EX AAO Def A/Cs.

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