Notional Pay Pension Calculation Examples – PCDA Circular 164

Revision of 7th Pay Commission Pension on notional pay for Pre-2016 Pensioners – PCDA Circular No: C-164 dated 30.05.2017 for revision of Pension of Civilian Defence Pensioners on Notional Pay or revision of Pension as per option 2 of 7th CPC recommendations (multiplication factor of 2.57) whichever is beneficial to the Pensioner

Office of the PR. Controller of Defence Accounts (Pensions)
Draupadi Ghat, Allahabad – 211014

Circular No.C – 164

No:G1/C/0199/Vol-I/Tech
Dated: 30.05.2017.

To,
(All Head of Department under Min. of Defence)

Subject: Implementation of Govt’s decisions on the recommendations of the Seventh Central Pay Commission-RRevision of pension of pre-2016 pensioners/family pensioners, etc.

Reference: – This office important Circular No. C-153 , bearing No.G1/C/0199/Vol-I/Tech, dated 12th August 2016.

[ Available on this office website www.pcdapension.nic.in]
***********************

Attention is invited to above cited circular wherein instructions were issued for implementation of GOI, DP&PW OM NO. 38/49/2016-P&PW (A)(ii), dated 04.08.2016. It was provided in the ibid OM that thhe revised pension/family pension w.e.f. 1.1.2016 of pre- 2016 pensioners/family pensioners shall be determined by multiplying the pension/family pension as had been fixed at the time of implementation of the recommendations of the 6th CPC, by 2.57.

2.Now, GOI, Ministry of P, PG and pension, Deptt. of P&PW have issued further orders under their OM No. 38/49/2016-P&PW (A), dated 12.05.2017, which is self – explanatory and is enclosed for guidance and necessary action. The salient points of ibid OM are given in succeeding paras:-

3.Revised pension/ family pension in r/o all Defence Civilian pensioners/family pensioners who retired/ died prior to 01.01.2016, may be revised by notionally fixing their pay in the pay matrix recommended by the 7th CPC in the level corresponding to the pay in the pay scale/pay band and grade pay at which they retired/died. This will be done by notional pay fixation under each intervening Pay Commission based on the Formula for revision of pay. While fixing pay on notional basis, the pay fixation formulae approved by the government and other relevant instructions on the subject in force at the relevant time shall be strictly followed. 50% of the notional pay as on 01.01.2016 shall be revised pension and 30% of this notional pay shall be the revised family pension w.e.f. 1.1.2016.” In the case of family pensioners who were entitled to family pension at enhanced rate, the revised family pension shall be 50% of the notional pay as on 01.01.2016 and shall be payable till the period up to which family pension at enhanced rate is admissible as per rules. The amount of revised pension/family pension so arrived at shall be rounded off to next higher

4.The higher of the two Formulations i.e. the pension/family pension already revised in accordance with this Department’s OM No. 38/37/2016-P&PW (A) (ii) dated 04.08.2016 or the revised pension/family pension as worked out in accordance with Para 3 above, shall be granted to pre-2016 Defence civilian pensioners as revised pension/family pension w.e.f. 01.01.2016. In cases where pension/family pension being paid w.e.f. 1.1.2016 in accordance with this Department’s OM No. 38/37/2016-P&PW (A) (ii) dated 04.08.2016 happens to be more than pension/family pension as worked out in accordance with Para 4 above, the pension/family pension already being paid shall be treated as revised pension/family pension w.e.f. 1.1.2016.

5.Instructions were issued vide GOI, DP&PW OM No. 45/86/97- P&PW (A) (iii) dated 10.02.1998 for revision of pension/family pension in respect of Government servants who retired or died before 01.01.1986, by notional fixation of their pay in the scale of pay introduced with effect from 01.01.1986. The notional pay so worked out as on 01.01.1986 was treated as average emoluments/last pay for the purpose of calculation of notional pension/family pension as on 01.01.1986. The notional pension/family pension so arrived at was further revised with effect from 01.01.1996 and was paid in accordance with the instructions issued for revision of pension/family pension of pre-1996 pensioners/family pensioners in implementation of the recommendations of the 5th Central Pay Commission.

6.Accordingly, for the purpose of calculation of notional pay w.e.f. 1.1.2016 of those Government servants who retired or died before 01.01.1986, the pay scale and the notional pay as on 1.1.1986, as arrived at in terms of the instructions issued vide GOI, DP&PW OM 45/86/97-P&PW (A) dated 10.02.1998, will be treated as the pay scale and the pay of the concerned Government servant as on 1.1.1986. In the case of those Government servants who retired or died on or after 01.01.1986 but before 1.1.2016, the actual pay and the pay scale from which they retired or died would be taken into consideration for the purpose of calculation of the notional pay as on 1.1.2016 in accordance with Para 4 above.

7.The minimum pension with effect from 01.01.2016 will be Rs.9000/- per month (excluding the element of additional pension to old pensioners). The upper ceiling on pension/family pension will be 50% and 30% respectively of the highest pay in the Government. (The highest pay in the Government is Rs. 2, 50,000 with effect from 01.01.2016). The maximum ceiling limit would not be applicable in case of retiree under CCS(Extra Ordinary Pension) Rule.

8.The pension/family pension as worked out in accordance with provisions of Para 3 and 4 above shall be treated as ‘Basic Pension’ with effect from 01.01.2016. The revised pension/family pension includes dearness relief sanctioned from 1.1.2016 and shall qualify for grant of Dearness Relief sanctioned thereafter.

9.The existing instructions regarding regulation of dearness relief to employed/re- employed pensioners/family pensioners, as contained in Department of Pension & Pensioners Welfare O.M. No. 45/73/97- P&PW (G) dated 02.07.1999, as amended from time to time, shall continue to apply.

10.These orders would not be applicable for the purpose of revision of pension of those pensioners who were drawing compulsory retirement pension under Rule 40 of the CCS (Pension) Rules or compassionate allowance under Rule 41 of the CCS (Pension) Rules. The pensioners in these categories would continue to be entitled to revised pension in accordance with the instructions contained in GOI, DP&PWO.M. No. OM No. 38/37/2016-P&PW (A) (ii) dated 4. 8.2016.

11.The pension of the pensioners who are drawing monthly pension from the Government on permanent absorption in public sector undertakings/autonomous bodies will also be revised in accordance with these orders. However, separate orders will be issued for revision of pension of those pensioners who had earlier drawn one time lump sum terminal benefits on absorption in public sector undertakings, etc. and are drawing one-third restored pension as per the instructions issued by GOI, DP&PW from time to time.

12.In cases where, on permanent absorption in public sector undertakings/autonomous bodies, the terms of absorption and/or the rules permit grant of family pension under the CCS (Pension) Rules, 1972, the family pension being drawn by family pensioners will be updated in accordance with these orders.

13. Since the consolidated pension will be inclusive of commuted portion of pension, if any, the commuted portion will be deducted from the said amount while making monthly disbursements.

14.The quantum of age-related pension/family pension available to the old pensioners/family pensioners shall continue to be as follows:-

Age of pensioner/family pensioner Additional quantum of pension
From 80 years to less than 85 years 20% of revised basic pension/family pension
From 85 years to less than 90 years 30% of revised basic pension/family pension
From 90 years to less than 95 years 40% of revised basic pension/family pension
From 95 years to less than 100 years 50% of revised basic pension/family pension
100 years or more 100% of revised basic pension/family pension
The amount of additional pension will be shown distinctly in the pension payment order. For example, in case where a pensioner is more than 80 years of age and his/her revised pension is Rs.10,000 pm, the pension will be shown as (i). Basic pension= Rs.10,000 and (ii) Additional pension=Rs.2,000pm. The pension on his/her attaining the age of 85 years will be shown as (i).Basic Pension = Rs.10,000 and (ii) additional pension = Rs.3,000 pm. Dearness relief will be admissible on the additional pension available to the old pensioners also.

15. A few examples of calculation of pension/family pension in the manner prescribed above are given in Annexure –(I-A) to (I-D) to this Circular.

16.No arrears on account of revision of Pension/Family pension on notional fixation of pay will be admissible for the period prior to 1.1.2016. The arrears on account of revision of pension/family pension in terms of these orders would be admissible with effect from 01.01.2016. For calculation of arrears becoming due on the revision of pension/family pension on the basis of this O.M., the arrears of pension and the revised pension/family pension already paid on revision of pension/family pension in accordance with the instructions contained in GOI, DP&PW OM No. 38/37/2016-P&PW (A) (ii) dated 04.08.2016 shall be adjusted.

17.It shall be the responsibility of the Head of Department and Pay and Accounts Office (PAO) attached to that office from which the Government servant had retired or was working last before his death to fix the pay on the notional basis as on 01.01.2016 in respect of pre-2016 Defence Civilian pensioners/family pensioners in accordance with these orders. In the annexed proforma of LPC-Cum-Data Sheet, the claim will be forwarded along with all concerned documents by the H.O.O/H.O.D to PCDA (Pension) Allahabad after getting it vetted from PAO/LAO attached. Simultaneously, Soft copy of the filled proforma of LPC-cum-Data Sheet will also be sent to PCDA (Pension) in CD, through an utility to be provided by PCDA(Pension) for speedy issue of PPOs. PCDA (Pension), Allahabad will issue a revised Pension Payment Order i.e. Corrigendum Pension Payment Order in new PPO no. series and the same would travel to Pension Disbursing Authority through Head office.

18. In order to facilitate HOO to indentify living pensioners for issue of corrigendum PPO, this office will provide a list of living pensioners/family pensioners from e-scrolls received to this end to the Head of Department for segregating and circulating to their respective sub offices functioning as Head of Office. However, such list of living pensioners will not be exhaustive. Hence, HODs/HOOs are advised to make further efforts at their end to identify all remaining pensioners and submit their notional pay fixation with required information to this office in the prescribed LPC-cum- Data Sheet duly vetted by the PAO/LAO.

19. HOOs may endeavor to mention Aadhaar no., Mobile no., PAN no., E Mail Id of pensioner/family pensioner or spouse in the prescribed LPC-cum- Data Sheet, if readily available. In case these details are not available, efforts may be made to obtain these details from the Pensioner/family pensioner/Spouse and subsequently propose amendments though use of the same LPC-cum- Data Sheet for issue of Corrigendum PPO.

20.While preparing LPC-cum-Data Sheet for revision, H.O.O.s shall mention an HOO code. This code can be obtained either by sending email to [email protected] in the prescribed proforma or by one-time registration through logging on website of PCDA (Pension) Allahabad at url www.pcdapension.nic.in (when the same become functional).

H.O.O. code will be generated after HOD verifies the details through email. Thereafter, the code will be transmitted to HOO and HOD. All email communication will be made on Govt. email id only. Also, all LPC-cum-Data Sheet of H.O.O will bear a running serial number.

21. In case of need of any clarification, HOO may contact to Shri Rajeev Ranjan Kumar, Dy.CDA (P), office of the PCDA (Pension) Draupadi Ghat, Allahabad-211014. Email i.d– [email protected] Phone No. 0532-2420662, Mob. No. 9971647385.

22. In view of the foregoing, Head of Departments are requested to issue suitable instructions (along with copy of this circular) to all the Head of Offices under their administrative control to ensure that claims on the subject matter are floated in accordance with clarification given in above Paras without delay. It is further requested that HOD’s may evolve suitable mechanism to monitor progress in forwarding of LPC-cum-Data Sheet by their sub offices functioning as on Head office.

Sd/-

(Rajeev Ranjan Kumar)
Dy. CDA (P)

No: G1/C/0199/ Vol-I/Tech

Dated: 30/05/2017

Annexure (I-A)
Examples
(Reference Para 15 to PCDA (P)circular No.164)
Dated : 29.05.2017
Sl. No. DESCRIPTION CASE -1 REMARKS
1. DATE OF RETIREMENT 31.12.1984
2. Scale of Pay(or Pay Band & G.P.) at the time of retirement
OR
Notional pay scale as on 1.1.1986 for those retired before 1.1.186
975-1660
(4th CPC Scale)
3. Pay(or Pay Band & G.P.) at the time of retirement
OR
Notional pay as on 1.1.1986 for those retired before 1.1.186
1210 As per Table -10 of RPR 1986
4. PENSION AS ON 1.1.2016 BEFORE REVISION 4191 Consolidated as on 1.1.96 and 01.01.2006
5. FAMILY PENSION AS ON 01.01.2016 BEFORE REVISION 3500 Consolidated FP as on 1.1.96 & 1.1.2006
6. FAMILY PENSION AT ENHANCED RATE AS ON 01.01.2016 BEFORE REVISION (IF APPLICABLE) NA NA at present
7. REVISED PENSION BY MULTIPLYIN PRE- REVISED PENSION BY 2.57 10771 4191*2.57=10771
8. REVISED FAMILY PENSION BY MULTIPLYIN PRE-REVISED FAMILY PENSION BY 2.57 9000 Minimum Family Pension
9. REVISED FAMILY PENSION AT ENHANCED RATE BY MULTIPLYIN PRE-REVISED FAMILY PENSION BY 2.57 NA NA at present
10. PAY FIXED ON NOTIONAL BASIS ON 1.1.1996 3710
(3200-4900)
Table S/6 of RPR -1997
11. PAY FIXED ON NOTIONAL BASIS ON 01.01.2006 8910
(PB-1, GP 2000)
Table S/6 of RPR -2008
12. PAY FIXED ON NOTIONAL BASIS ON 01.01.2016 23100(Level-3) Sl. No. 3 As per Pay Matrix of RPR -2016
13. REVISED PENSION W.E.F . 01.01.2016 AS PER NOTIONAL PAY FIXATION FORMULATION 11550 50% of 23100
14. REVISED FAMILY PENSION W.E.F 01.01.2016 AS PER NOTIONAL PAY FIXATION FORMULATION 9000 Minimum Family Pension
15. REVISED FAMILY PENSION AT ENHANCED RATE W.E.F 01.01.2016 AS PER NOTIONAL PAY FIXATION FORMULATION NA NA at present
16. REVISED PENSION PAYABLE( HIGHER OF S. NO. 07 AND 13) 11550 As on 01.01.2016
17. REVISED FAMILY PENSION PAYABLE( HIGHER OF S. NO. 08 AND 14) 9000 As on 01.01.2016
18. REVISED FAMILY PENSION AT ENHANCED RATE PAYABLE( HIGHER OF S. NO. 09 AND 15) NA NA at present
Annexure (I-B)
Examples
(Referance Para 15 to PCDA (P) Circular No.164)
Dated : 29.05.2017
Sl. No. DESCRIPTION CASE-2 REMARKS
1. DATE OF RETIREMENT 31.01.1989
2. Scale of Pay(or Pay Band & G.P.) at the time of retirement
OR
Notional pay scale as on 1.1.1986 for those retired before 1.1.186
3000-4500
(4th CPC Scale)
3. Pay(or Pay Band & G.P.) at the time of retirement
OR
Notional pay as on 1.1.1986 for those retired before 1.1.186
4000 Last Pay Drawn
4. PENSION AS ON 1.1.2016 BEFORE REVISION 12600 As per Concordance table of GOI, DP&PW OM dated 28.1..2013
5. FAMILY PENSION AS ON 01.01.2016 BEFORE REVISION 7560 ——do——-
6. FAMILY PENSION AT ENHANCED RATE AS ON 01.01.2016 BEFORE REVISION (IF APPLICABLE) NA NA at present
7. REVISED PENSION BY MULTIPLYIN PRE- REVISED PENSION BY 2.57 32382 12600*2.57=32,382/-
8. REVISED FAMILY PENSION BY MULTIPLYIN PRE-REVISED FAMILY PENSION BY 2.57 19430 7560*2.57=19,430/-
9. REVISED FAMILY PENSION AT ENHANCED RATE BY MULTIPLYIN PRE-REVISED FAMILY PENSION BY 2.57 NA NA at present
10. PAY FIXED ON NOTIONAL BASIS ON 1.1.1996 11300
(10000-15200)
Table No. S-19 of RPR -1997
11. PAY FIXED ON NOTIONAL BASIS ON 01.01.2006 27620
(PB-3, GP 6600)
Table No. S-19 of RPR -2008 (Grade Pay is included)
12. PAY FIXED ON NOTIONAL BASIS ON 01.01.2016 71800(Level-11) Sl. No. 3 As per Pay Matrix of RPR 2016
13. REVISED PENSION W.E.F . 01.01.2016 AS PER NOTIONAL PAY FIXATION FORMULATION 35900 50% of 71800= 35,900/-
14. REVISED FAMILY PENSION W.E.F 01.01.2016 AS PER NOTIONAL PAY FIXATION FORMULATION 21540 30% of 71800=21,540/-
15. REVISED FAMILY PENSION AT ENHANCED RATE W.E.F 01.01.2016 AS PER NOTIONAL PAY FIXATION FORMULATION NA NA at present
16. REVISED PENSION PAYABLE( HIGHER OF S. NO. 07 AND 13) 35900 As on 01.01.2016
17. REVISED FAMILY PENSION PAYABLE( HIGHER OF S. NO. 08 AND 14) 21540 As on 01.01.2016
18. REVISED FAMILY PENSION AT ENHANCED RATE PAYABLE( HIGHER OF S. NO. 09 AND 15) NA NA at present.
Annexure (I-C)
Examples
(Reference Para 15 to PCDA (P)circular No.164)
Dated : 29.05.2017
Sl. No. DESCRIPTION CASE-3 REMARKS
1. DATE OF RETIREMENT 30.06.1999
2. Scale of Pay(or Pay Band & G.P.) at the time of retirement
OR
Notional pay scale as on 1.1.1986 for those retired before 1.1.186
4000-6000
(5th CPC Scale)
3. Pay(or Pay Band & G.P.) at the time of retirement
OR
Notional pay as on 1.1.1986 for those retired before 1.1.186
4800 Last Pay Drawn
4. PENSION AS ON 1.1.2016 BEFORE REVISION 5424 Consolidated as on 01.01.2006
5. FAMILY PENSION AS ON 01.01.2016 BEFORE REVISION 3500 Consolidated FP as on 01.01.2006
6. FAMILY PENSION AT ENHANCED RATE AS ON 01.01.2016 BEFORE REVISION (IF APPLICABLE) NA NA at present
7. REVISED PENSION BY MULTIPLYIN PRE- REVISED PENSION BY 2.57 13940 5424*2.57=13940/-
8. REVISED FAMILY PENSION BY MULTIPLYIN PRE-REVISED FAMILY PENSION BY 2.57 9000 Minimum Family Pension as on 1.1.2016
9. REVISED FAMILY PENSION AT ENHANCED RATE BY MULTIPLYIN PRE-REVISED FAMILY PENSION BY 2.57 NA NA at present
10. PAY FIXED ON NOTIONAL BASIS ON 1.1.1996 NA NA at present
11. PAY FIXED ON NOTIONAL BASIS ON 01.01.2006 11330
(PB-1, GP 2400)
Table S-7 of RPR 2008
12. PAY FIXED ON NOTIONAL BASIS ON 01.01.2016 29600(Level-4) Sl. No. 6 As per Pay Matrix of RPR -16
13. REVISED PENSION W.E.F . 01.01.2016 AS PER NOTIONAL PAY FIXATION FORMULATION 14800 50% of 29600=14,800/-
14. REVISED FAMILY PENSION W.E.F 01.01.2016 AS PER NOTIONAL PAY FIXATION FORMULATION 9000 Minimum Family Pension
15.

REVISED FAMILY PENSION AT ENHANCED RATE W.E.F 01.01.2016 AS PER NOTIONAL PAY FIXATION FORMULATION NA NA at present
16. REVISED PENSION PAYABLE( HIGHER OF S. NO. 07 AND 13) 14800 As on 01.01.2016
17. REVISED FAMILY PENSION PAYABLE( HIGHER OF S. NO. 08 AND 14) 9000 As on 01.01.2016
18. REVISED FAMILY PENSION AT ENHANCED RATE PAYABLE(
HIGHER OF S. NO. 09 AND 15)
NA NA at present
Annexure (I-D)
Examples
(Referance Para 15 to PCDA (P) Circular No.164)
Dated : 29.05.2017
Sl. No. DESCRIPTION CASE-3 REMARKS
1. DATE OF RETIREMENT 31.05.2015
2. Scale of Pay(or Pay Band & G.P.) at the time of retirement
OR
Notional pay scale as on 1.1.1986 for those retired before 1.1.186
67000-79000
(6th CPC Scale)
3. Pay(or Pay Band & G.P.) at the time of retirement
OR
Notional pay as on 1.1.1986 for those retired before 1.1.186
79000 Last Pay Drawn
4. PENSION AS ON 1.1.2016 BEFORE REVISION 39500 50% of 79000= 39,500/-
5. FAMILY PENSION AS ON 01.01.2016 BEFORE REVISION 23700 30% of 79000=23,700/-
6. FAMILY PENSION AT ENHANCED RATE AS ON 01.01.2016 BEFORE REVISION (IF APPLICABLE) 39500 50% of 79000-23,700/-
7. REVISED PENSION BY MULTIPLYIN PRE- REVISED PENSION BY 2.57 101515 39500*2.57=101515/-
8. REVISED FAMILY PENSION BY MULTIPLYIN PRE-REVISED FAMILY PENSION BY 2.57 60909 23700*2.57=60,909/-
9. REVISED FAMILY PENSION AT ENHANCED RATE BY MULTIPLYIN PRE-REVISED FAMILY PENSION BY 2.57 101515 39,500*2.57=101515/-
10. PAY FIXED ON NOTIONAL BASIS ON 1.1.1996 NA NA at present
11. PAY FIXED ON NOTIONAL BASIS ON 01.01.2006 NA NA at present
12. PAY FIXED ON NOTIONAL BASIS ON 01.01.2016 205100(Level-15) Sl. No. 5 As per Pay Matrix of RPR-2016
13. REVISED PENSION W.E.F . 01.01.2016 AS PER NOTIONAL PAY FIXATION FORMULATION 102550 50% of 205100= 102550/-
14. REVISED FAMILY PENSION W.E.F 01.01.2016 AS PER NOTIONAL PAY FIXATION FORMULATION 61530 30% of 205100=61,530/-
15. REVISED FAMILY PENSION AT ENHANCED RATE W.E.F 01.01.2016 AS PER NOTIONAL PAY FIXATION FORMULATION 102550 50% of 205100=102550/-
16. REVISED PENSION PAYABLE( HIGHER OF S. NO. 07 AND 13) 102550 As on 01.01.2016
17. REVISED FAMILY PENSION PAYABLE( HIGHER OF S. NO. 08 AND 14) 61530 As on 01.01.2016
18. REVISED FAMILY PENSION AT ENHANCED RATE PAYABLE( HIGHER OF S. NO. 09 AND 15) 102550 As on 01.01.2016

Download / Read PCDA Circular No: C-164 dated 30.05.2017

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