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Saturday, 2 July 2016

SOME QUERIES ON 7TH CPC

Indian Military Veterans
Dear Ladies & Gentlemen,
1.         Many Veterans and family pensioners are calling me and inquiring about 7th CPC pension. Their questions are :-
(a)  Q1.   Are we going to get higher pension w.e.f Jan 2016 as per 7th CPC? Or am I going to get only in 2021 now that my OROP was given in 2016 hence next hike is only after five years.
            (b)  Q2.   What would my pension in 7th CPC if I am eligible?
©   Q3.   What is going to be DR w.e.f Jul 2016 and what will be my pension w.e.f Jul 2016.
(d)  Q4.  What about MSP which is now enhanced to higher amounts in 7th CPC? Will it not become effective in 7th CPC?
(e ) Q5.  Will my pension go up in 2017?
(f)  Q6.   I have not got my OROP pension. Then how my pension is fixed in 7th CPC Scales of pension?
2.         All are valid questions undoubtedly. Actually we should not be anxious to know these things so early. Based on detailed instructions from Min of Finance (Expenditure) and Min of Personnel, Pensions & Public Grievances and Ministry of Defence (ESW), PCDA (Pensions) Allahabad will issue tables for all types of pensioners based on Govt’s approved recommendations of 7th CPC. Since many queries have come with a request to throw some light on these genuine doubts, I endeavour to give you answers as per my understanding. I could be wrong. Questions and my answers are given in succeeding paras.
3.   Q1. Are we going to get higher pension w.e.f Jan 2016 as per 7th CPC? Or am I going to get only in 2021 now that my OROP was given in 2016 hence next hike is only after five years.
4.   A1. All those who got higher pension in OROP are eligible to get pension in 7th CPC. My argument was always that though we are pre – 2006 retirees, Govt of India treats as if we retired in calendar year 2013 for the purpose of pension in OROP. Those who are pre – 2006 retirees till Jun 2014 are eligible to get OROP as per Govt notification on OROP. Hence Govt of India cannot have two sets of pensioners i.e pre – 2014 retirees and post – 2014 retirees. All are to be given 7th CPC. My argument was trashed by few saying we will get pension hike only in 2021. But hon’ble Finance Minister and hon’ble Raksha Mantir have categorically stated all those who benefitted from OROP will also get pension hike w.e.f Jan 2016 in 7thPension scales.
5.  Q2. What would my pension in 7th CPC?
6.  A2.  Firstly your pension is dependent upon pension of a soldier of your rank, with same length of qualifying service with same group who retired in Jan 2016 in 7th CPC scale. To know his pension you have to see what his Last Drawn Emoluments in 7th CPC are. His Last Drawn Emolument (basic pay + grade pay + MSP) in Jan 2016 in 6th CPC scale (without DR) be multiplied by 2.57. Once his pay in 7th CPC as on Jan 2016 is known then 50% of it is his pension. You also will get the same pension.
So your pension would be 50% (Pay in matrix + MSP). He would have drawn pay in 6thCPC scale as on Jan 2016. That last pay drawn in Jan 2016 in 6th CPC (pay in pay band + grade pay + MSP) is to be multiplied by 2.57 without adding DR @ 125% to get his revised pay as on Jan 2016 in 7th CPC. 50% of that would be his pension. Therefore you have to find out what is the last pay drawn of your counterpart in Jan 2016. Multiply it by 2.57 and then halve it to get pension. As a rough guide your pension in OROP is Average of Maximum and Minimum of those retired with same length of qualifying service, same group. Then you have to add increments @ 3% from 2013 to Jul 2015 (same pay in Jan 2016 as increment is given only in July of every year). Then halve it to get your pension. To avoid complication it is better to assume your pension in 7th CPC could be roughly 2.57 x OROP pension.
            Suppose your basic pension (without DR) as on Jan 2016 is Rs 10,000 due to OROP. Then your pension with DR is 10,000 (Basic Pension) +12,500 (DR) = Rs 22,500. Now with multiplication factor of 2.57 you can reasonably be sure to get your pension as on Jan 2016 at Rs 10,000 x 2.57 = Rs 25,700. But my own reasoning is it is going to be more than this due to increments not added @ 3% from 2013 to 2015.
Therefore my advice is wait for the tables of pension of 7th CPC from PCDA (Pensions) Allahabad like they issued for OROP i.e. Circular 555 instead of wasting time on making tables as per your understanding. It would be better firstly to make tables for pay of serving soldiers in SAI 1/S/2016 and then work out the pension as per those tables for all ranks which is 50% of the Last Drawn Emoluments. Otherwise same problem which happened in 6th CPC will be repeated.
7.  Q3. What is going to be DR w.e.f Jul 2016 and what will be my pension w.e.f Jul 2016?
8.  A3.  As convention DR for the first half year of calendar year 2016 is 0%. Once the Govt of India announces DR for half year ending Dec 2016, then add that to your pension as on Jan 2016. Suppose your pension in 7th CPC as on Jan 2016 is say Rs 20,000  and DR is 5% from Jul to Dec 2016 then your pension as on Jul 2016 is = Rs 20000 + 0.05 x 20000 = RS 21,000 pm till Dec 2016.
9.   Q4. What about MSP which is now enhanced to higher amounts in 7th CPC? Will it not become effective in 7th CPC?
10.   A4. Like I said in my answer 2, the MSP is already included in Last Drawn Emoluments of serving soldier.  His pension is 50% of Last Drawn Emoluments. You cannot again add 50% of MSP to your pension in 7th CPC.
11.   Q5. Will my pension go up in 2017?
12.   A5. No Sir. It will remain same till Jan 2021. Govt of India has not given you a true OROP where your pension is same as that of soldier with your rank, your qualifying service and group gets in 2017 or 2018 or 2019. The pension of soldier who retires in 2017 will go up because of his annual increment. Similarly pension of soldier who retires in 2020 will be much higher than yours though both of you are of the same rank, same qualifying service and same group. What Govt of India gave us is Modified parity and not OROP. TSEWA believes something is better than nothing. Since our pension went up w.e.f Jul 2014 thanks to OROP and now it will go up further in 2016 thanks to 7th CPC we are much better off. Assume OROP was not granted our pension would have been what we were drawing as on 24 Sep 2012 multiplied by 2.57 which is much lesser than what we are going to get. Hence TSEWA thanked Govt of India for their version of OROP which is Modified parity. When we reach Jan 2021 our pension again will go up as if we retired in Jan 2021.  Till then what we will get as increase in our pension is only due to six monthly DR.
13. Q6. I have not got my OROP pension. Then how my pension is fixed in 7th CPC Scales of pension.
14.  A6.  Unless your pension in OROP is fixed it cannot be enhanced to 7th CPC scale. You have to approach your Record Office / Service HQ to send your qualifying service and Group to PCDAs. PCDAs in turn must send that information to CPPCs of banks. I am told 7.5 lakh pensioners have not been paid OROP arrears till date as their qualifying service and Group are not known to CPPCs of banks. So your suffering will continue for some more time. But the silver lining is TSEWA is constantly taking up this case with appropriate authorities and results are showing. But once your qualifying service and Group are received by CPPCs of banks you will get OROP arrears, 7th CPC arrears and new pension. So you have to wait for some more time.
Conclusion
 Please do NOT waste your time in making tables of pension in 7th CPC. Let PCDA (Pensions) Allahabad issue Circular for pensions as per 7th CPC.
regards,
Brig CS Vidyasagar (Rtd)
9493191380

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