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REVISION OF PROVISION OF PENSION

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Summary

Implementation of Government’s decision on the recommendation of the Seventh Central Pay Commission — Revision of provisions regulating pension/gratuity/commutation of pension/family pension/disability pension etc 3.2 Where Pension/Family Pension/Gratuity/Commutation of Pension, etc.

Text of the circular

PC-VII No. 05/2016 R.B.E. No.: 99 /2016

GOVERNMENT OF INDIA (BHARAT SARKAR) MINISTRY OF RAILWAYS (RAIL MAN TRALAYA) (RAILWAY BOARD)

No.2016/F(E)IMI/1(1)/8 New Delhi, Dated: 12.08.2016

The GMs/FA&CAOs, All Zonal Railways/Production Units, (As per standard mailing list)

Sub: Implementation of Government’s decision on the recommendation of the Seventh Central Pay Commission — Revision of provisions regulating pension/gratuity/commutation of pension/family pension/disability pension etc.

Rk KKK In pursuance of Government’s decision on the recommendation of the Seventh Central Pay Commission, the President is pleased to introduce the following modifications in the rules regulating Pension, Retirement/Death/Service Gratuity, Family Pension, Disability Pension ete.

under the Railway Services (Pension) Rules, 1993 (hereafter referred to as Pension Rules) and Commutation of Pension under Railway Services (Commutation of Pension) Rules, 1993 and Railway Services (Extraordinary Pension) Rules, 1993.

2. These orders apply to Railway employees governed by the Railway Services (Pension) Rules, 1993.

DATE OF EFFECT

3.1 The revised provisions shall apply to Railway servants who retire/die in harness on or after 01.01.2016. Separate orders have been issued in respect of employees who retired/died before 01.01.2016.

3.2 Where Pension/Family Pension/Gratuity/Commutation of Pension, etc. has already been sanctioned in cases occurring on or after 01.01.2016, the same shall be revised in terms of these orders. In cases where pension has been finally sanctioned on the pre-revised orders and if it happens to be more beneficial than the pension becoming due under these orders, the pension already sanctioned shall not be revised to the disadvantage of the pensioner in view of Rule 90 of the Pension Rules.

EMOLUMENTS

4.1. The term 'Emoluments' for purposes of calculating various pensionary benefits other than various kinds of Gratuity shall have the same meaning as in Rule 49 of the Pension Rules.

4.2 Basic pay in the revised pay structure means the pay drawn in the prescribed level in the Pay Matrix with effect from 01.01.2016 but does not include any other type of pay like special pay, etc.

4.3. In the case of all kinds of gratuity, dearness allowance admissible on the date of retirement/death shall continue to be treated as emoluments along with the emoluments as defined in Paragraph 4.1 above.

-2- PENSION

5.1 Subject to para 5.2, there shall be no change in the provisions regulating the amount of pension as contained in Rule 69 of the Pension Rules.

5.2 The amount of pension shall be subject to a minimum of Rs.9000/- and the maximum pension would be 50% of highest pay in the Government (The highest pay in the Govt. is Rs 2,50,000/- with effect from 01.01.2016). The provisions of sub-rule (2) of Rule 69 of the Pension Rules shali stand modified to this extent.

5.3. The quantum of additional pension/family pension available to the old pensioners/ family

pensioners shall continue to be as follows:- Additional quantum of pension

From 80 years to less than 85 years 20% of revised basic pension/family pension

Age of pensioner/family pensioner

The Pension Sanctioning Authorities should ensure that the date of birth and the age of a pensioner is invariably indicated in the pension payment order to facilitate payment of additional pension by the Pension Disbursing Authority as soon as it becomes due. The amount of additional pension will be shown distinctly in the pension payment order. For example, in case where a pensioner is more than 80 years of age and his pension is Rs.10,000 pm, the pension will be shown as (i) Basic pension=Rs.10,000 and (ii)Additional pension= Rs.2,000 pm. The pension on his attaining the age of 85 years will be shown as (i) Basic Pension = Rs.10,000 and (ii) additional pension = Rs.3,000 pm. .

Retirement/ Death Gratuity

6.1. The rates for payment of death gratuity shall be revised as under:

20 years or more

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