Revision of provisions regulating pension/gratuity/commutation of pension/family pension/disability pension/ex-gratia lump-sum-compensation, etc-reg.
No. 14021/4/2016-AIS(II)
Government of India
Ministry of Personnel, P.G. and Pension
Department of Personnel & Training
New Delhi, the 1st September, 2016
To,
The Chief Secretaries of
All States/Union Territories.
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/ex-gratia lump-sum-compensation, etc-reg.
Sir,
I am directed to say that in pursuance of Government’s decision on the recommendations of the Seventh Central Pay Commission, the Department of Pension & Pensions’ Welfare by its OM No. 38/37/2016- P&PW (A) (i), (ii) and Resolution dated 4th August 2016 (copies enclosed) has issued necessary detailed order for 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/ex-gratia lump-sum-compensation etc. under the CCS (Pension) Rules, 1972 and Commutation of Pension under CCS (Commutation of Pension) Rules 1981, CCS (Extraordinary Pension) Rules 1939 etc.
2. The applicability of the provisions of aforesaid Office Memorandums of the Department of Pension & Pensioners Welfare to the members of All India Services has been considered. It has been decided that the provisions contained in the aforesaid Office Memorandum issued by the Department of Pension & Pensioners shall be equally applicable Mutatis-Mutandis to members of All India Service governed by the AIS(DCRB) Rules, 1958.
Yours faithfully,
(Kavitha Padmanaban)
Deputy Secretary (Services)
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
| Length of qualifying service | Rate of Death Gratuity |
| Less than One year | 2 times of monthly emoluments |
| One year or more but less than 5 years | 6 times of monthly emoluments |
| 5 years or more but less than 11 years | 12 times of monthly emoluments |
| 11 years or more but less than 20 years | 20 times of monthly emoluments |
| 20 years or more | Half month’s emoluments for every completed six monthly period of qualifying service subject to a maximum of 33 times of emoluments. |
Accordingly, Rule 50(1) (b) of CCS (Pension) Rules, 1972 shall stand modified to this extent.
6.2 The maximum limit of Retirement gratuity and death gratuity shall be Rs. 20 lakh. The ceiling on gratuity will increase by 25% whenever the dearness allowance rises by 50% of the basic pay. Accordingly, first proviso under Rule 50(1)(b) of CCS (Pension) Rules, 1972 shall stand modified to this extent.
FAMILY PENSION 1964
7.1 Family pension shall be calculated at a uniform rate of 30% of basic pay in the revised pay structure and shall be subject to a minimum of Rs. 9000/- p.m. and maximum of 30% of the highest pay in the Government. Rule 54(2) relating to Family Pension, 1964 under CCS (Pension) Rules, 1972 shall stand modified to this extent.
7.2 The amount of enhanced family pension shall be 50% of basic pay in the revised pay structure and shall be subject to a minimum of Rs.9000/- p.m. and maximum of 50% of the highest pay in the Government. (The highest pay in the Govt. is Rs. 2,50,000 with effect from 1.1.2016).
7.3 There will be no other change in the provisions regulating family pension, enhanced family pension and additional family pension to old family pensioners.
COMMUTATION OF PENSION
8.1 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.
9.1 The pension/family pension under para 5 and 7 above shall qualify for dearness relief sanctioned from time to time, in accordance with the relevant rules/instructions.
FIXED MEDICAL ALLOWANCE
10.1 Fixed Medical Allowance to the pensioners who are residing in non-CGHS areas and are not availing OPD facility of CGHS shall continue to be paid at the existing rate till a final decision is taken on the basis of recommendations of the Committee constituted for the purpose.
CONSTANT ATTENDANT ALLOWANCE
11.1 The amount of Constant Attendant Allowance to pensioners who retired on disability pension with 100% disability under the CCS (Extraordinary) Pension Rules, 1939, (where the individual is completely dependent on somebody else for day to day functions) shall continue to be paid at the existing rate till a final decision is taken on the basis of recommendations of the Committee constituted for the purpose.
EX GRATIA LUMPSUM COMPENSATION
12.1 The amount of ex gratia lump sum compensation available to the families of Central Government Civilian employees, who die in the performance of their bona fide official duties under various circumstances shall be revised as under:
| Circumstances | Amount |
| Death occurring due to accidents in course of performance of duties | 25 lakh |
| Death in the course of performance of duties attributed to acts of violence by terrorists, anti social elements etc. | 25 lakh |
| Death occurring in border skirmishes and action against militants, terrorists, extremists, sea pirates | 35 lakh |
| Death occurring while on duty in the specified high altitude, unaccessible border posts, etc. on account of natural disasters, extreme weather conditions | 35 lakh |
| Death occurring during enemy action in war or such war like engagements, which are specifically notified by Ministry of Defence and death occurring during evacuation of Indian National from a war-torn zone in foreign country | 45 lakh |
13.1 Formal amendments to CCS (Pension) Rules, 1972 and CCS (Extraordinary) Pension Rules, 1939 in terms of the decisions contained in this order will be issued in due course. Provisions of the CCS (Pension) Rules 1972, CCS (Extraordinary) Pension Rules, 1939, and CCS (Commutation of Pension) Rules, 1981 which are not specifically modified by these orders, will remain unchanged.
14.1 These orders issue with concurrence of the Ministry of Finance Department of Expenditure vide their U.O. No. 30-1/33©/2016-IC dated 03.08.2016
15.1 In their application to the employees of the Indian Audit and Accounts Department, these orders issue in consultation with Comptroller and Auditor General of India.
16.Ministry of Agriculture etc. are requested to bring the contents of these orders to the notice of Controller of Accounts/Pay and Accounts Officers and Attached and Subordinate Offices under them on a top priority basis.
(Vandana Sharma)
Joint Secretary to the Government of India