7th Pay Commission recommended Pension for Retired Staff of Central Technical Institutions – Pension Revision based on Fitment Factor or Notional Pay in line with Central Government Pensioners – HRD Ministry Orders
Revision of pension / family pension of pre-01.01.2016 and post-01.01.2016 retired faculty and non-faculty of CFTI
F. No. 15-7/2017-TC
Government of India
Ministry of Human Resource Development
Department of Higher Education
New Delhi, Dated:14th June, 2018
All Centrally Funded Technical Institutions.
Subject: Revision of pension / family pension of pre-01.01.2016 and post-01.01.2016 retired faculty and non-faculty of Centrally Funded Technical Institutions- regarding.
I am directed to convey the approval of the Government of India to revise pension/family pension of pre-01.01.2016 and post-01.01.2016 faculty and non-faculty pensioners / family pensioners of CFTIs, as per Department of Pension and Pensioners’ Welfare OM No. 38/37/2016-P&PW(A)(i)/(ii), dated 04.08.2016 and OM No. 38/37/2016-P&PW(A) dated 12.05.2017 & 06.07.2017, as amended from time to time.
2. The DoP&PW (as per aforesaid OMs) has provided for following manner of revision of pension/family pension:
As per 2nd formulation (recommended by 7th CPC), vide para -4.1 of OM dated 04.08.2016. as follows:
For existing pensioners, who have retired before 01.01.2016 the revised pension / family pension with effect from 01.01.2016 shall be determined by multiplying the existing pension/family pension, as had been fixed at the time of implementation of 6th CPC recommendations, by 2.57. The amount of revised pension/family pension so arrived at shall be rounded off to next higher rupee.
As per 1st formulation (recommended by 7th CPC), vide para-4 of OM dated 12.05.2017. as follows:
The pension/family pension w.e.f. 01.01.2016 may be revised by notionally fixing the pay of pensioners 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 pensioners 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. Then:
- 50% of the notional pay as on 01.01.2016 shall be the revised pension and 30% of this notional pay shall be the revised family pension w.e.f. 01.01.2016; and
- for 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. This 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 rupee.
All CFTIs may, accordingly, workout pension on the lines of concordance tables prepared by the DoP&PW vide OM dated 06.07.2017 as amended from time to time.
3. The DoP&PW’s OM dated 12.05.2017 vide para-5, further maintains that higher of the two formulations i.e. the pension/family pension already revised in accordance with the OM dated 04.08.2016 or the revised pension/family pension as worked out in accordance with para 4 of OM dated 12.05.2017, shall be granted to pre-01.01.2016 pensioners as revised pension/family pension w.e.f. 01.01.2016.
4. Accordingly, all the CFTIs are requested to workout the pension/family pension of pre-01.01.2016 faculty and non-faculty pensioners/family pensioners of CFTIs, as per the formulations discussed above read with other principles enunciated in DoP&PW’s OMs of dated 12.05.2017 & 06.07.2017 and subsequent OMs dated 18.07.2017 & 13.09.2017.
5. In case of those employees who retired/died before 01.01.1986, the pension may be worked out on the lines of concordance tables given in Department of Pension and Pensioner’s Welfare OM No. 38/37/2016-P&PW(A), dated 06.07.2017 based on their notional pay as on 01.01.1986, which was fixed in accordance with DoP&PW’s OM No. 45/86/97-P&PW(D)(iii), dated 10.02.1998.
6. The revision of pension and pensionary benefits such as gratuity, etc. to those pensioners who retired on or after 01.01.2016 shall be done as per Department of Pension and Pensioners’ Welfare OM No. 38/37/2016-P&PW(A)(i), dated 04.08.2016. The revision of pension and pensionary benefits such as gratuity etc. are to be made applicable to only those who are covered with the schemes which are in accordance with the similar schemes for Central Government employees.
7. This order is applicable in only those cases where such pension schemes have already been adopted with prior approval of Government of India/Ministry of Human Resource Development (MHRD), as amended from time to time.
8. In case any institute has revised pension in a manner different from the above formulations, the same may have to be reworked by the concerned institute and necessary adjustments are to be made.
9. Any excess payment made on account of incorrect fixation of pension or any other excess payment made shall be adjusted/recovered against the future payments due or otherwise to the beneficiary.
10. This issues with the approval of IFD at note 18 dated 12.06.2018.
11. Hindi version will follow.
Deputy Secretary to the Govt. of India