Analysis and Recommendations

11th Bipartite

The 7 Pay Commission sought the views of

the government in this regard. The Department of Pension and Pensioners Welfare

stated that the VI CPC had recommended calculation of Pension Report of the

Seventh CPC recommended pension @ 50 percent of last pay or the average

emoluments (for last 10 months) whichever is more beneficial. The Commission

also recommended delinking of pension from qualifying service of 33 years.

Effectively the dispensation on pension has already been liberalised by the VI

CPC. Further the recommendations of this Commission in relation to pay of both

the civilian and defence forces personnel will lead to a significant increase in the

pay drawn and therefore in the ‘last pay drawn’/’reckonable emoluments.’

Therefore the Commission does not recommend any further increase in the rate

of pension and family pension from the existing levels. Quantum of Minimum

Pension should Equal the Minimum Wage. In representations/depositions before

the Commission it has been stated that the existing minimum pension fixed at

Rs.3,500 is low and it has been argued that minimum pension be fixed equal to

minimum pay for sustenance.

The Commission sought the views of the government in this regard. The

Department of Pension and Pensioners Welfare stated that as per the orders

issued after V CPC, the minimum pension in the government was Rs. 1,275. The

normal revised consolidated pension of a pre-2006 pensioner is 2.26 of the prerevised

basic pension. The revised minimum pension of Rs. 3,500 is much more

than 2.26 time of the pre-revised pension of Rs. 1,275. Further the

recommendations of this Commission in relation to pay of personnel will lead to a

significant increase in the minimum pay from the existing Rs.7,000 per month to

Rs.18,000 per month. This, based on the computation of pension, will raise

minimum pension from the existing Rs.3,500 to Rs.9,000. The minimum pension

based on the recommendations of this Commission will increase by 2.57 times

over the existing level.

In Civil APPEAL 1123 OF 2015 THE HONOURABLE Supreme Court has clearly

stated that pension is not a bounty, it should be 50% of the pay and there can be no

question of capacity to pay.

Hence we demand revision in pension, family pension and the principle of one

rank one pension. Please note that today many officers salary is less than the

pension of their parents who are Central Govt Pensioners.

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