The 7 CPC on considering various demands raised by the employees and Pensioners, while rejecting most of them at the instance or opinion tendered by the Department of Pension and Pensioners Welfare as also by the Defence Ministry in Para 10.1.67 recommended the following formulation for civilian employees including CAPF personnel who have retired prior to 01.01.2016.

The Govt in its resolution dated 4th August 2016 made its stand on the recommendation as under:

11.

Revision of Pension of pre 7th CPC retirees The Commission recommend the following pension formulation for civil employees including CAPF personnel who have retired before 01.01.2016(i) All the Civilian personnel including CAPF who retired prior to 01.01.2016 (expected date of implementation of the Seventh CPC recommendations) shall first be fixed in the Pay Matrix being recommended by this Commission, on the basis of the Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the matrix. This amount shall be raised, to arrive at the notional pay of the retiree, by adding the number of increments he/she had earned in that level while in service, at the rate of three percent. Fifty percent of the total amount so arrived at shall be the revised pension (ii) The second calculation to be carried out is as follows. The pension, as had been fixed at the time of implementation of the VI CPC recommendations, shall be multiplied by 2.57 to arrive at an alternate value for the revised pension. (iii) Pensioners may be given the option of choosing whichever formulation is beneficial to them. It is recognized that the fixation of pension as per formulation in (i) above may take a little time since the records of each pensioner will have to be checked to ascertain the number of increments earned in the retiring.

Both the options recommeded by the 7th Central Pay Commission as regards pension revision be accepted subject to feasibility of the implementation. Revision of pension using the second option based on fitment factor of 2.57 be implemented immediately. The first option may be made feasible after examination by the Committee comprising Secretary (Pension) as Chairman and Member (Staff). Railway Board, Member (Staff), Department of Posts, Additional Secretary & Financial Adviser, Ministry of Home Affairs and Controller General of Accounts as Members