Pension: RBE No.128/2016 – Fresh option on 7th CPC
No.2016/F(E)III/1(1)/8, dated 02.11.2016
PC-VII No.08/2016
Sub: Implementation of the recommendation of the 7th CPC – Option regarding commutation of additional amount of pension.
1. A copy of Department of Pension and Pensioners’ Welfare (DOP&PW)’s O.M. No.42/14/2016-P&PW(G), dated 24th October, 2016 on the above subject is enclosed for information and compliance. These instructions shall apply mutatis mutandis on the Raihvays also. Rule 10 of CCS (Commutation of Pension) Rules, 1981 corresponds to Rule 11 of Railway Services (Commutation of Pension) Rules, 1993 and DOP&PW’s O.M. dated 04.08.2016 referred to in the enclosed O.M., was adopted on Railways vide letter of even number dated 12.08.2016 (RBE No.99/2016).
2. Since, DOP&PW’s O.M dated 04.08.2016 was circulated on Railways vide Board’s letter of even number dated 12.08.2016 (RBE No.99/2016), the option mentioned in Para 3 of O.M. dated 24.10.2016 may be given to Railway employees who retired between the period 01.01.2016 and 12.08.2016.
3. Please acknowledge receipt.
Ministry of Personnel, PG & Pensions
Department of Pension & Pensioners Welfare
O.M. F.No.42/14/2016-P&PW(G), dated 24.10.2016
OFFICE MEMORANDUM
Sub: Implementation of the recommendation of the 7th CPC – Option regarding commutation of additional amount of pension.
1. The undersigned is directed to state that in pursuance of Government’s decision on recommendation of 7th Central Pay Commission, orders have been issued for revision of provisions regulating pension/ gratuity/ commutation of pension etc. vide this Department’s OM 38/37/2016-P&PW(A), dated 04.08.2016. In para 8.1 of the said OM, it has been mentioned that there will be no change in the provisions relating to commutation values, the limit upto which the pension can be commuted or the period after which the commuted pension is to be restored.
2. As per Rule 10 of CCS (Commutation of Pension) Rules, 1981, an applicant who has commuted a percentage of his final pension and after commutation his pension has been revised and enhanced retrospectively as a result of Government’s decision, the applicant shall be paid the difference between the commuted value determined with reference to enhanced pension and the commuted value already authorised. For the payment of difference, the applicant shall not be required to apply afresh.
3. References have been received in this Department that many pensioners who retired after 01.01.2016 and have drawn pension/ commuted value of pension based on their pre-revised pay/ pension do not wish to commute the pension which has become additionally commutable on revision of pay/ pension on implementation of recommendations of 7th CPC. The matter has been examined in consultation with Ministry of Finance (Department of Expenditure). It has been decided that those pensioners who retired from 01.01.2016 till 04.08.2016 i.e. the date of issue of orders for revised pay/ pension based on the recommendations of the 7th CPC may be given an option, in relaxation of Rule 10 of CCS (Commutation of Pension) Rules, 1981, not to commute the pension which has become additionally commutable on revision of pay/ pension on implementation of recommendations of the 7th CPC. The cases where the additional pension after 7th CPC has already been commuted will not be reopened.
4. In their application to the employees of India Audit and Accounts Department, these orders issue in consultation with Comptroller and Auditor General of India.
5. This issues with the concurrence of Ministry of Finance, Department of Expenditure ID No.192/E.V/2016, dated 30.09.2016.
6. Hindi version will follow.
Download Railway Board Circular RBE No.128/2016
Forward reference ⇒ RBE No.