I approvedbv the Cabineton 3'd Mav.2017 The UnionCabinetchairedby the PrimeMinisterShri NarendraModi approved important proposals relating to modificationsin the 7th CPC (Central Pay recommendations benefitsin the courseof their on pay and pensionary Commission) implementation.Earlier, on 29th June, 2016, the Cabinet had approved with an additionalfinancial outgo of implementationof the recommendations t84,933crorefor 2016-17(includingarrearsfor 2 monthsof 2015-16).
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wilt be availablewith The benefitof the proposedmodifications
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decisions of the is likelyto be <1,76,071 crore.Someof the,,iq;porfpnt Government t^ cabinetarementioned below| ,,,,u.". t*r"' ''H'"":'v " pensioners 1. Revisionof pension of pre -2016 pensioners-'fud"family The Cabinetapprovedmodifications in m" qpom*lndations of the 7thCPC relating ^r"
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to the methodof revisionof pensionof fi,ffh-2fff6pensionersand family pensioners based on suggestionsmad" W tlr-e*ri\,q*5nmittee chaired by Secretary(Pensions) . constitutedwith the approvale-{""'Cabinet. The modifiedformulationof pension revisionapprovedby the Cani,q_g!&ill entail an additionalbenefitto the pensioners **?'
and an additionalexpenditUrg <5031crorefor 2016-17over and d approximately above the expenditurealreadyincurredin revisionof pensionas per the second formulationbased o-nfitmentfactor.lt will benefitover 55 lakh pre-2016civil and and familypensioners. defencepensioners ';:e* -4, ,*
on 29th the 7th CPC recommendations Whil,eapprovingthe implementation'of Jrih@, t?016, the Cabinethad approvedthe changedmethodof pensionrevision recommended comprising of two alternative by the 7thCPC for pre-2016pensioners, formulations,subject to the feasibilityof the first formulationwhich was to be examinedby the Committee. j-"
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were revised In termsof the Cabinetdecision,pensionsof pre-2016pensioners as per the secondformulationmultiplying existingpensionby a fitmentfactorof 2.57, thoughthe pensioners of were to be giventhe optionof choosingthe morebeneficial the two formulations as per the 7thCPC recommendations.
In order to providethe more beneficialoptionto the pensioners,Cabinethas of the Committee,whichhas suggestedrevisionof acceptedthe recommendations pension based on informationcontainedin the PensionPaymentOrder (PPO) issuedto everypensioner.The revisedprocedureof fixationof notionalpay is more in all the cases. The Committeereachedits scientific,rationaland implementable findingsbased on an analysisof hundredsof live pensioncases. The modified formulationwill be beneficialto more pensionersthan the first formulation by the 7thCPC, whichwas not foundto be feasibleto implementon recommended of recordsin a largenumberof casesand was alsofound accountof non-availability to be proneto'severalanomalies.
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DisabilityPensionfor DefencePensioners
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The Cabinet also approved the retentionof percentag*lased regime of post6thCPC,whichtne ZlhCpC had recommended disabilitypensionimplemented
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q . & AnomalyCommittee tfl"tfr@4lational The issueof disabilitypensionwas referreO '#+,.. "r*Ni. by the Ministry of Defence on account of, tli&,.r6piesentationreceivedfrom the Defence Forces to retain the slab-bqse4,sptem, as it would have resulted in .
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existingpensionersand a reduction reductionin the amountof disah*litV1 Fension'"for retireeswhen comparedto percentagein the arnountof disabilitypen3ionforrf.utirre 'N baseddisabilitypension. ,,::1, 'i:.,'
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would The decisionwhichwill benefitexistingand futureDefencepensioners {130 croreper annum. of approximately entailan additionalexpenditure Lt.,rri::.+j..n
gli*5'hiesin PayStructureand Revisionof the threePayMatrices:
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.The Cabinet, while approving the 7th CPC recommendationsfor their in the DefencePay Matrix on 29thJune,had rhadetwo modifications implementation as under: may be increasedfrom (lOR)of Level13A (Brigadier) (i) Indexof Rationalisation
z.at. z.sii.to (ii) Additional3 stagesin Levels124 (Lt, Col.),3 stagesin Level13 (Colonel)and may be added. 2 stagesin Level13A (Brigadier)
The Cabinethas now approvedfurthermodifications in the pay structureand the three:PayMatrices,i.e. Civil,Defenceand MilitaryNursingService(MNS).The modificationsare listedbelow: (i)
DefencePay Matrix has been extendedto 40 stages similar to the Givil
Pay Matrix: The 7thCPC had recommendeda compactPay Matrixfor Defence Forcespersonnelkeepingin viewthe numberof levels,age and retirementprofiles of the servicepersonnel.Ministryof Defenceraisedthe issue that the compact natureof the DefencePay Matrixmay lead to stagnationfor JCOs in DefenceForces and proposed.that the DefencePay Matrixbe extendedto 40 stages.The Cabinet decision to extend the Defence Pay Matrix will benefit continue in service without facing any stagnationtill their
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years. (ii)
IOR for Levels 12 A (Lt. Col. and equ
equivalent)in the DefencePay Matrix and
and equivalent)in
the Civil Pay Matrix has been increased from2.57to 2.81 has beenappliedby the Levelon the premisethat with
DefencePay Matrixand Levei,rl3iDirector and equivalent) of the CivilPay Matrixon the ground that there was a disproportionate increasein entry pay at the level pertainingto GP aZp0Xifilfre 6thCPC regime.The IORfor Level13A (Brigadierand equivalent)in :..i^ the DefencePay Matrixhas alreadybeen revisedupwardswith the approvalot*,gi$ninet
earlier.In view of the requestfrom Ministryof Defencefor
raising*t"t.re,lOR ior Levels12 A and 13 of the DefencePay Matrixand requestsfrom othd&eryhe'"lOR for these levels has been revisedupwardsto ensure uniformityof approachin determining the lOR. 3
(iii)
To give effect to the decisionsto extend the Defence Pay Matrix and to enhancethe lORs, the three Pay Matrices- Civil,Defenceand MNS - have also been revised.While doingso, two calculationerrorsnoticedin the MNS Pay Matrix havealso beenrectified.
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(iv)
To ensure against reductionin pay, benefitof pay protectionin the form of
Personal.Pay was earlier extendedto officerswhen posted on deputationunder CentralStaffingScheme(CSS)withthe approvalof Cabinet.The benefitwillalsobe availableto officerscoming on CentralDeputationon posts not coveredunder the CSS.
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NATIONAL TEOCNET
No.Il/3'/part xIII
3'-chelnsford Road, NewDerhi
Dated: 08/05/20I 7 Copyforwardetlto the Generalseffetariesof affiliated l)nions of NFIRfor iffirmation anctpubticity,
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