Recommendation of seventh pay commission
The Commission recommends the following with regard to fixation of pension for past defence forces personnel retirees:
i. All the Defence Forces who retired prior to 01.01.2016 (expected date of implementation of the Seventh CPC recommendations) shall first be fixed in the Pay Matrix being recommended by this Commission, on the basis of the Dearness Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the matrix. This amount shall be raised to arrive at the notional pay of the retiree by adding the number of increments he/she had earned in that level while in service, at the rate of three percent. Military Service Pay shall be added to the amount which is arrived at after notionally fitting him in the Seventh CPC matrix. Fifty percent of the total amount so arrived at shall be the revised pension.
ii. The second calculation to be carried out is as follows. The pension, as had been fixed at the time of implementation of the VI CPC recommendations, shall be
multiplied by 2.57 to arrive at an alternate value for the revised pension.
The Pensioners shall be entitled to the higher of the two. It is recognized that the fixation of the pension as per the above formulation (i) above may take a little time since the records of each pensioner will have to be checked to ascertain the number of increments earned in the retiring level. It is, therefore, recommended that in the first instance the pension, may be fixed in terms of formulation (ii) above, till final fixation of the pension under the Seventh CPC matrix is undertaken.
We analyses the these two option at various level pay pertaining to defence force ranks including commissioned officer and find that option two is only better and beneficial for all.
Take an example of Havaldar in Army who retired after completion of 24 years of service will be entitle basic pension 8900 as basic pension. As per option one he will get maximum pension that is starting pay of N. Sub 35400+5200 = 40600/2 = 20300 but as per option two his basic pension will be 8900 x 2.57 =22873 Round off = 22900 . We have taken so many example and find that option two is only better and beneficial.
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Tag: Defence, Pension, OROP, 7th pay commissione
