Railway Pensioners view on 7th Pay Commission

Railway Pensioners views about the 7th Pay Commission relating to Pension/Retirement Benefits

IRSTA has published the Railways Senior Citizens Welfare Society’s views drawbacks on 5 topics of the 7th CPC Recommendations and wants to consider its suggestions favourably.


No. RSCWS/ CHD / 7th CPC Rep/2015-1

Dated: 6th December, 2015


Government of India.

Department of Pension & Pensioners’ Welfare,

3rd Floor, Lok Nayak Bhawan,

Khan Market, New Delhi.

Subject: Recommendations of the 7th Pay Commission relating to Pension/Retirement Benefits

Reference: Your office letter No. 38/66/13-P&PW(A)(Vol.II) Dated 1st/3rd December, 2015

We would like to draw your kind attention to the following major points of serious injustice with the Pensioners, with a request for justice and required relief for the Pensioners:

1. FIXED MEDICAL ALLOWANCE (Ref: Para 8.17.51): It is regretted that the 7th CPC has recommended no enhancement of Fixed Medical Allowance (FMA) for Pensioner for day to day medical treatment not requiring hospitalization, merely on the ground that “this Allowance was last enhanced from Rs.300 to Rs.500 pm from 19/11/2014’.

The Pay Commission has not even gone into the merit or the reasons for the demand placed before it for raising the FMA to Rs.2000 pm including the following among others:
i) The delay in revision of FMA by 6 years was totally unjustified. FMA should have been revised from 1-9-2008 – like all other Allowances after the 6th CPC;

ii) Cost had exorbitantly increased for the Medicines, Consultation Fee and of Pathological Tests required for day to day medical treatment since 1997 (when the FMA was initially granted). This had risen at a much steeper rate than the General Price Index.

iii) Average expenditure per pensioner on OPD in CGHS Hospitals has increased manifolds and is at present over Rs.2500 per patient. FMA should be comparable to the that especially in view of even higher costs of Medical treatment other than CGHS due to bulk purchase of Medicines under CGHS & other related factors.

iv) A large proportion of Pensioners were residing in remote areas or villages having no excess to CGHS Dispensaries & Railway Hospitals and are as such, are wholly dependent on the paltry amount of FMA for day to day treatment of self & spouse.
It is, therefore, requested that the FMA may please be revised to at least Rs.2000 p.m.

2. MULTIPLE FACTOR (REF: PARA 10.1.67): The 7th Pay Commission has very unjustly & arbitrarily recommended the multiple factor of 2.57 for fixation of Pay & Pension. It is tantamount to less than 14.3% rise of emoluments as on 1-1-2016 (with expected DA of 125%) as against over 21% rise proposed by 7th CPC. This is especially very much unjustified in view of much high price rice in the last 10 years. The multiple factor may, therefore, be appropriately raised to (Basic Pay+ 125% DA) + 40% Fixation Benefit = 3.15 with fitment on merged DA or at least 2.65 times of BP.

3. PARITY OF PENSION (PARA (10.1.53 & 10.1.67):
a) We welcome the recommendation of 7th CPC and thank it for accepting the long pending demand of Past & Future Pensioners.

The method suggested by the Pay Commission for the above purpose, however, needs to be simplified as the service Records of many of the old Pensioners may not be available – thus depriving them of the benefit of the same. It is, therefore, requested to simplify the method for the purpose and the same should be based only on the information available in the PPO.


It is requested that, the following Pension Formulation may please be adopted for Civilian Pensioners including CAPF who retired before 01-01-2016:


i) Pension be fixed at par with Average of the Pension of Post-2016 Pensioners based on the 50% of the Average Pay in the Pay Matrix corresponding to the Level from which the Pensioner had retired; OR

ii) Pension fixed after Sixth Pay Commission be multiplied by a factor of 3.15 or at least 2.65 times of BP (i.e. BP + 125% DA) + 40% Fixation Benefit = 3.15 times of BP with merged DA or at least 2.65 times of BP without merger of DA – as proposed in Para 3 above).

5. ADDITIONAL PENSION (Para 10.1.28): 7th CPC has totally ignored the reasons of extra expenses on medical care & treatment in old age for the demand for reducing the age for grant of Additional Pension of 5 % from 65 years of age, 10 % from 70 years and 15% from 75 years. It has also ignored even the recommendations of DOP&PW for starting it at the age of 75 years. This has greatly hurt the Pensioners. It is, therefore, requested that the Additional Pension may please be granted @ 5 % from 65 years of age, 10 % from 70 years and 15% from 75 years.

Hoping for a favourable consideration.

Thanking you.

Yours faithfully,

(Harchandan Singh)

Secretary General, RSCWS

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