7^th CPC AND PENSIONS OF ARMED FORCES PERSONNEL

The CPC recommended pensions for all pre – 2016 pensioners by taking their increments earned in their last rank. There are two methods suggested by the CPC.

Method 1- Increments. Pensions of pre – 2006 Defence Pensioners will be fixed as on Jan 2006 based on the Notional Pay considering the increments they earned in their last rank. The first step is to arrive at notional pay without increments as on Jan 2016. Second step is to add increments and arrive at notional pay with increments. Third step is to add MSP at the rate of Rs 15500 for Officers, Rs 10800 for MNS Officers, Rs 5200 for JCOs & OR and Rs 3600 for NCsE of IAF.This will get you the Pay matrix on notional basis. Fourth step is to divide this amount by half to get your  pension as on Jan 2016.

Method 2 – 2.57 Factor. Multiply your pension in 6^th CPC with factor 2.57 to get your pension as on Jan 2016.

Pension will be higher of the two methods.

(a)             Illustration 1.   The Defence pensioners are placed in various LEVELS as per their rank. For example Colonel is placed in level 13.

(b)              

SER NO	ACTIVITY	AMOUNT
1	Method 1: Increments to be Considered while fixing pension of pre – 2016 Defence Pensioners. Step 1. Colonels are placed in Level 13 in Pay Matrix. For Colonel with three increments in 6th CPC, find his minimum pension in 7thCPC at LEVEL 13. See Serial No 1 under Level 13 for the minimum notional pay without increments	1,25,700
2	Step 2. Colonel earned three increment and see the notional pay at Ser No 4	1,37,400
3	Step 4. Add MSP of Rs 15,500 to get Notional Pay in Matrix	1,52,900
4	Pension w.e.f. Jan 2006 is 50% of Rs 152,900	76,450
5	Method 2. Pension byMethod 2 i.e. by multiplication of Full Pension of Rs 27,795 (for putting 26 years ground service) in 6thCPC scales by factor 2.57	=27795 x 2.57 = 71,433

(c)        Illustration 2.

SER NO	ACTIVITY	AMOUNT
1	Lt Cols are placed in Level 12A in Pay Matrix. Lt Col with six increments in 6thCPC. Minimum pension in 7th CPC at LEVEL 12A. See Serial No 1 under Level 12A for the minimum notional pay without increments	1,16,700
2	Lt Colonel has earned six increments then go down to Ser No: 7 under Level 12A and see the notional pay with increments	1,39,300
3	Add MSP of Rs 15,500 to get Notional Pay in Matrix	1,54,800
4	Pension w.e.f. Jan 2006 is 50% of Rs 1,54,800	77,400
5	Pension as per 2.57 Methodwith full pension of Rs 26,265	= 26265 x 2.57 =67,501

  

SER NO	ACTIVITY	AMOUNT
1	Method 1. Brigs are placed in Level 13 A. Brig withFour increments in 6th CPC. Minimum pension in 7thCPC at LEVEL 13A. See Serial No 1 under Level 13A for the minimum notional pay without increments	1,34,400
2	Brig has earned Four increments then go down to Ser No: 5 under Level 13A and see the notional pay with increments	1,51,300
3	Add MSP of Rs 15,500 to get Notional Pay in Matrix	1,66,800
4	Pension w.e.f. Jan 2006 is 50% of Rs 1,66,800	83,400
5	Method 2. Pension as per2.57 Method with full pension of Rs 29,145	= 29145 x 2.57 = 74,903

Note: Pensioners have the benefit of getting pension whichever is higher of these two methods. For Army Officers, PCDA(O) Pune has to forward the number of increments earned in the last rank to PCDA(Pensions) Allahabad to enable them to calculate the pension by Method 1.

Trust PCDA(O) Pune giving the number of increments earned in our last rank to PCDA(Pensions) Allahabad even by Dec 2025. The stock answer they will give is they destroyed IRLAs as per their policy of destruction of old documents and will throw the ball into court of Army HQ, AGs Branch MP 5/6. You will then be at the mercy of some Nk or Hav Clerk who will see your unit DO Part II order to located your date of promotion to the last rank and your date of retirement. Thereafter, Army HQ will send the number of increments you earned in your last rank. Then and then only PCDA (O) Pune will send these details to PCDA(Pensions) Allahabad as LPC.

PCDA (Pensions) Allahabad has to generate Corr PPOs enhancing our pensions w.e.f. Jan 2016 (Even today many defence pensioners have not got their Corr PPOs for enhanced pension w.e.f. 24 Sep 2012). So you just get pensions as per Method 2 i.e. 2.57 method till you are called to your Heavenly Abode by God Almighty. So be happy as you will get get much better pension w.e.f Jan 2016 than what you are getting today.

Till that exercise of increments earned is is over, 7^th CPC recommended to adopt Method 2 i.e. 2.57 method.

It is anybody’s guess as to whether Govt of India having given OROP w.e.f Jul 2014 will again give benefit of 7^th CPC w.e.f Jan 2016 to pre- 2013 pensioners. Let us wait for the Min of Def letter alongwith tables for OROP which as grape wine says is going to take two months. Some say YES we will get benefit of 7 CPC. Some say NO we will have to wait till 2019. I do not know who is correct.

Min of Def in their notification issued on OROP in Nov 2015 is silent on this aspect. But 7CPC in their illustrations has taken pre – 2006 pensioners in their two illustrations at para 10.1.69. They simply say all pre – 2016 pensioners will get pensions as per their highest of the two methods. We who retired prior to Jan 2006 are also called pre – 2016 pensioners.

If some body’s 6^th CPC pension goes up by even one increment, then the pension w.e.f. Jan 2016 goes up. Pensions of all ranks was incorrectly fixed as on Jan 2006 by ignoring increments earned after full pension. It was deliberately lowered by low level babus like Desk Officer, Under Secretary & Deputy Secretary citing MINIMUM OF FITMENT TABLE in SAI 2/S/2008 when all judgments of hon’ble Supreme Court said this method of pension fixation was wrong. Consequently, 53 Maj Gens, having won their case in AFT Chandigarh are drawing pensions more than Rs 30,350.