Wednesday, March 8, 2017

Government Award on 7th Central Pay Commission (CPC)

The  7th Central Pay Commission (CPC) recommendations on Pay and Pension related issues were accepted by the Cabinet during the meeting held on 29 June 2016. The Government Award on 7th CPC recommendations was thereafter notified in Gazette of India (Extraordinary) on 25 July 2016.
Para 3 of Government Resolution dated 25 July 2016 had stated - “The Cabinet approved further improvements in the Defence Pay Matrix by enhancing Index of Rationalisation for Level 13A (Brigadier) and providing for additional stages in Level 12A (Lieutenant Colonel), 13 (Colonel) and 13A (Brigadier) in order to bring parity with Combined Armed Police Forces (CAPF) counterparts at the maximum of the respective Levels”. The phrase ‘in order to maintain parity in Pay with Central Armed Polices Forces’ has been expunged by Government of India/ Ministry of Finance through a separate Gazette Notification dated 01 September 2016.

The Government award on 7th CPC recommendations on Pay related issues for Defence Personnel was notified by Ministry of Defence (MoD) vide SRO 01(E) No 1(6)/2016/D(Pay/Services) and SRO 02 (E) No 1(7)/2016/D(Pay/Services), both dated 05 September 2016, for Officers and Sailors respectively. However, as the core concerns of the Defence Services were not addressed in the Government Resolution dated 05 September 2016, a case has been taken up by the three Services with MoD, for resolution of core concerns on pay, prior implementation of 7th CPC award for the Defence Services. The decision of the Government is awaited.

Pending resolution, an interim relief has been provided by the Government in October 2016, in the form of 10 percent of pay in pre-revised scale, for the period 01 January 2016 to 30 September 2016.

The recommendations of the 7th CPC pertaining to allowances have been referred to a separate Committee on Allowances, headed by Finance Secretary. The Committee, which was originally constituted for four months till 22 December 2016, was given an extension till 22 February 2017 for submission of its report.
The Government has accepted the 7th CPC recommendation regarding revision of existing pension by a multiplication factor of 2.57 and all Pension Disbursing Authorities were directed to credit the revised pensions by 31 December 2016. In addition, an alternate formula is being deliberated by the Pension Committee, which was setup to review the 7th CPC recommendations on pension, with respect to residency based formulae. Post acceptance of the recommendations of the Pension Committee, the pensioners would have the option to choose the option that is beneficial to them.

The principle of One Rank One Pension (OROP) for the Defence Forces and its prospective implementation from Financial Year 2014-15 was accepted by the Government in February 2014.  The implementation modalities for OROP scheme have been formally notified by MoD vide JS/DESW letter dated 07 November 2015. The Government had directed all PDAs to credit the revised OROP pensions by 31 March 2016. The arrears were to be credited in a single instalment to all family pensioners including those in receipt of Special/ Liberalised Family Pensions and all Gallantry award winners. All other pensioners are being given the arrears in four equal half yearly instalments.

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