7th C.P.C. Report

22 Nov


High lights & Analysis


 (1)Pension: The Commission recommends a revised pension formulation for civil employees including CAPF personnel as well as for Defence personnel, who have retired before 01.01.2016. This formulation will bring about parity between past pensioners and current retirees for the same length of service in the pay scale at the time of retirement.

The past pensioners shall first be fixed in the Pay Matrix being recommended by the Commission on the basis of Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the pay matrix.

This amount shall be raised to arrive at the notional pay of retirees, by adding number of increments he/she had earned in that level while in service at the rate of 3 percent.

In the case of defence forces personnel this amount will include Military Service Pay as admissible.

Fifty percent of the total amount so arrived at shall be the new pension.

An alternative calculation will be carried out, which will be a multiple of 2.57 times of the current basic pension.

The pensioner will get the higher of the two.

(2) Gratuity: Enhancement in the ceiling of gratuity from the existing ₹10 lakh to ₹20 lakh. The ceiling on gratuity may be raised by 25 percent whenever DA rises by 50 percent.

Disability Pension for Armed Forces: The Commission is recommending reverting to a slab based system for disability element, instead of existing percentile based disability pension regime.

Ex-gratia Lump sum Compensation to Next of Kin: The Commission is recommending the revision of rates of lump sum compensation for next of kin (NOK) in case of death arising in various circumstances relating to performance of duties, to be applied uniformly for the defence forces personnel and civilians including CAPF personnel.

Martyr Status for CAPF Personnel: The Commission is of the view that in case of death in the line of duty, the force personnel of CAPFs should be accorded martyr status, at par with the defence forces personnel.

(3) Medical Merge all postal dispensaries with CGHS. Withdraw discriminatory MOH &FW orders debarring Postal Pensioners from CGHS. Introduce Medical insurance .Govt. to look into possibilities of pooling together CGHS, RELHS and ECHS.

(4)New Pension System: The 7th Pay Commission received has recommended a number of steps to improve the functioning of NPS. It has also recommended establishment of a strong grievance redressal mechanism.

The full report is available on website www.bharatpensioner.org


1.But for the big achievement of OROP as per BPS memorandum item 2 to 7th pay commission OROP which ofcourse subject to Govt. acceptance .As economists are already up against it and pensioners may have to struggle hard to get it implemented. 7th CPC has disappointed pensioners on  almost all other issues of theirs.

2.Common multiplication factor of 2.57 fitment benefit which in fact is squeezed portion of DR for the past long 10years fall short of  40% given earlier through 5th & 6th CPC. DA/DR given to C.G. employees & pensioners is never sufficient since the very method of calculation of inflation index is fraught with discrepancies. As of now against actual inflation of 250% at ground level only 119% is compensated. Common multiplication should have been 2.75

3.Enhanced gratuity of 20 lac will only benefit the higher echelon only.

  1. Medical facilities for pensioners: Conveniently overlooking the Honorable supreme court pronouncement in the case

 Consumer Education and Research Centre & Others vs Union of India (AIR 1995 Supreme

Court 922)

“the right to health to a worker is an integral facet of meaningful right to life to have not only a

meaningful existence but also robust health and vigour. Therefore, the right to health, medical aid to protect

the health and vigour of a worker while in service or post retirement is a fundamental right-to make life of a

worker meaningful and purposeful with dignity of person. Thus health care is not only a welfare measure but

is a Fundamental Right”.(  Article 21 read with Article 39A, 41, 43, 48A and all related Articles)

Similar to earlier Pay comm. 7th pay pay comm  recommends Medical Insurance which inspite of decade’s effort Govt. could not implement .The major issues with Insurance scheme for pensioners’ are (1) Coverage of existing disease (2) OPD facilities (3)  Amount of coverage for a family(4)Amount of Premium and its yrly payment. Pay comm. has chose to remain silent. On pooling of different existing schemes to increase coverage & easy accessibility Pay comm has left it to be investigated by Govt.similarly on the issue of smart card for cashless treatment for all pensioners in all empanelled hospitals 7th pay comm. has not come out with  forceful recommendation and has out rightly rejected enhancement of FMA.

However, the  recommendation regarding withdrawal of discriminatory orders of MOH &FW regarding Postal Pensioners & merging of all postal dispensaries with CGHS is welcomed .

7th pay commission has either rejected for left unaddressed the  issues like:

  1. Ratio between min & max. paid to be brought back to 1:8.
  2. Upward revision  of pension  to 67/65% of last drawn.
  3. Need for downward revision of 100yrs age for  additional pension, additional pension to start from the age of 65 yrs.(This issue is rejected merely because defence ministry did not accept it)
  4. 4. Removal of  discrimination with those who retire on 31.12 & 30.06 7  modification of NPS to ensure Family Pension as per pre 2004 rules & that min pension shall not be less than 50% of last drawn 8. DR merger with pension whenever it goes above 50%

5.7th CPC recommendations should apply to  BSNL pensioners since governed by CCS(pension rules), .

  1. 6. Defense civilian  pensioners should get ex-service men status .

7..full pension for 20yrs QS to pre 2006 retirees.

  1. Commuted portion of pension to be restored in 12yrs,gratuity w/o any restriction of max. limit ,full pension to family pensioners for 10 yrs w/o any cutoff date &discrimination.

9.Pension to be tax free .

10.Periodical  revision of CGHS rates to match market conditions .

  1. Regulatory authority for healthcare facilities.
  2. Improvement in grievance redressal mechanism etc.etc.

Country’s finance  are on solid footing   as stated by  Hon’ble MOS Finance Sh Jayant Sinha in his statement  on 19.10.015 We expect   Govt. to shed anti employees/anti Pensioners tag and appeal for (1) Implement of OROP (revision of common multiplication factor to 2.75) and (3) to resolve issues related to Medical facilities to Pensioners, to enable them to lead  peaceful, healthy life with dignity.

S.C. Maheshwari Secy. Genl. BPS

Posted by Maheshwari Sc at 9:08 PM

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