Impact of order dated 12-5-2017 – Pensioners Issues

Impact of order dated 12-5-2017

The impact of above order dated 12-05-2017 can be analysed only after orders are issued. According to the orders the pay of pre 2016 retirees has to be notionally fixed in in revised pay matrix intrdoduced from 1-1-2016 and then fixing pension at 50% of pay. If the pension so fixed is more than the pension fixed with fitment formula of 2.57 then pension will be revised otherwise no change. It is presumed that option will be given to pensioners. For arriving at pay in revised matrix of 7 CPC for those who retired prior to 1-1-1996 notionally there pay will be fixed under V CPC scales and VI CPC Pay structure. Similarly for those who retired prior to 2006 it will be notionally fixed in VI CPC Pay structure and then in 7 CPC matrix. The pay for this purpose is pay last drawn as recorded in their PPO. For the information of readers fixation formula under V CPC, VI CPC and VII CPC rules is given below:

V CPC:


Pay in the revised scales to be fixed at the stage next above the total even if there is stage equal to the total.

 Rates of DA as on 1-1-1996

VI CPC

VII CPC

 Illustration:

 ‘X retired on 31-1-1992 and pay was Rs. 2900 in the scale 1640-2900
1. His notional pay under 5 CPC scale of 6500-10600 is Rs.8900;
2. His notional pay under 6 CPC (PB2 +GP 4200) is Rs.20760;
3. His notional pay under 7 CPC (Level 6) is Rs.53600;
4. Pension fixed on 1-1-2016 with a fitment formula of 2.57 is Rs.25847;
5. Pension as per cabinet deciscion 50% of notional pay as per 7 cpc is Rs26800.
Source : http://postalpensioners.blogspot.in/

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