Vijay Mohan

Tribune News Service

Chandigarh, May 13

The Centre today issued fresh orders to calculate pension of employees who had retired prior to 2016. The orders could enhance their post-retirement financial benefits. The new orders are consequent to the Cabinet decision to accept an improvement over and above the system of pension calculation which was finally effectuated after the Seventh Central Pay Commission (CPC).The CPC had recommended two formulae for calculation of pension of pre-2016 retirees. While the first formula involved calculation of pension based on a notional basis, the second involved the multiplication of old pension by a factor of 2.57. The orders for the second formula were issued earlier and the first formula was recently accepted with certain modifications by the Cabinet.“The feasibility of the first option recommended by the seventh CPC has been examined by a committee headed by the Secretary, Department of Pension and Pensioners’ Welfare. Accordingly, it has been decided that the revised pension and family pension with effect from January 1, 2016, in respect of all Central civil pensioners and family pensioners, including Central Armed Police Forces, who retired/died prior to January 1, 2016, may be revised by notionally fixing their pay in the pay matrix recommended by the seventh CPC in the level corresponding to the pay in the pay scale/pay band and grade pay at which they retired/died,” orders issued by the department said.These orders, however, do not cover retired High Court and Supreme Court judges, constitutional and statutory authorities as well as Armed Forces pensioners, for whom separate orders will be issued by the appropriate authority.The notional pay fixation will be done under each intervening pay commission based on the formula for revision of pay. It has also been decided that higher of the two formulations, that is, the pension already revised and being disbursed or the revised pension as worked out in accordance with the new orders, shall be granted, the orders said.The arrears on account of revision of pension would be admissible with effect from January 1, 2016, only and no claims for the period before this would be accepted.

Judges not in ambit

• The new orders do not cover retired High Court and Supreme Court judges, constitutional and statutory authorities as well as Armed Forces pensioners