Implementation of Government’s decision on the recommendations of the Seventh Central Pay Commission – Revision of pension of pre-2016 retired Medical Officers of Army Medical Corps/Army Dental Corps/Remount & Veterinary Corps

Implementation of Government’s decision on the recommendations of the Seventh Central Pay Commission – Revision of pension of pre-2016 retired Medical Officers of Army Medical Corps/Army Dental Corps/Remount & Veterinary Corps

No. 1(7)/2014(1)/D(Pension/Policy)
Government of India
Ministry of Defence
Department of Ex-Servicemen Welfare,
D(Pension/Policy)

New Delhi, Dated: 22th January, 2021

To
The Chief of the Army Staff
The Chief of the Naval Staff
The Chief of the Air Staff

Sub: Implementation of Government’s decision on the recommendations of the Seventh Central Pay Commission – Revision of pension of pre-2016 retired Medical Officers of Army Medical Corps/Army Dental Corps/Remount & Veterinary Corps-reg.

Sir,

The undersigned is directed to refer to this Ministry’s letter No. 17(01)/2017/ (02)/D(Pension/Policy) dated 5 September, 2017. In accordance with Para-4 of this letter, the revised pension/family pension of all Armed Forces Personnel who retired/died prior to 01.01.2016, shall be revised by notionally fixing their pay in the pay matrix recommended by the 7t CPC in the level corresponding to the pay in the pay scale/pay band and grade pay at which they retired/died. This will be done by notional pay fixation under each intervening Pay Commissions based on the formula for revision of pay. The revised rates of Military Service Pay, Non Practice Allowance, where applicable, and ‘X’ Group. Pay & Classification Allowance for JCO/ORs, if applicable notified in terms of 7th CPC orders, shall also be added to the amount of pay notionally arrived at under the 7 CPC pay matrix and shall be termed as notional reckonable emoluments as on 01.01.2016 while fixing pay on notional basis. It was further decided at para-6 of the letter that higher of the two formulations ice. the pension/family pension already revised in accordance with this Ministry’s letter No. 17 (01)/ 2016-D(Pen/Pol) dated 29.10.2016 or the revised pension/family pension as worked out in accordance with Para-5 of the MoD letter dated 05.09.2017 referred above, shall be granted to pre-01.01.2016 ‘Armed Forces pensioners as revised pension/family pension w.e.f. 01.01.2016.

2. Department of Pension & Pensioners’ Welfare vide their OM No. 38/37/16-P&PW(A){iii) dated 11th September 2017 have decided that NPA at the rate as applicable as on 01.01.2016 shall be added to notional pay as on 01.01.2016 to arrive at pension/family pension of retired medical officers w.e.f. 01.01.2016 and the pension/family pension of retired medical officers shall be further revised w.e.f, 01.07.2017 by adding NPA @ 20% to the notional pay as on 01.01.2016, instead of NPA admissible as on 01.01.2016 subject to the condition that the notional pay as on 01.01.2016 plus NPA does not exceed the average of basic pay of the revised scale applicable to the Apex Level and the level of Cabinet Secretary.

3. The matter regarding revision of all kinds of pension/family pension of medical officers of Armed Forces who have retired/died prior to 01.01.2016 has been examined by the Govt. and it has been decided that NPA at the rate as applicable as on 01.01.2016 shall be added to notional pay worked out in terms of Para-4 of the MoD letter No. 17(01)/2017/(02)/D(Pension/Policy) dated 5th September, 2017 to arrive at notional reckonable emoluments as on 01.01.2016 for calculation of pension/family pension of pre-01.01.2016 retired/died Medical Officers of Armed Forces, w.e.f. 01.01.2016. All kinds of pension/family pension of pre-01.01.2016 retired/died medical officers of Armed Forces Pensioners/family pensioners shall be further revised w.e.f. 01.07.2017 by adding NPA @ 20% of notional pay in VIIth CPC scale to the notional pay as on 01.01.2016, instead of NPA admissible as on 01.01.2016 (which was 25% of pre-revised scale).

4. The fixation of pension/ family pension of retired Medical officers of Armed Forces in the above manner, shall be further subject to the condition that emoluments (ie. Basic Pay + MSP + NPA) to be reckoned for pension do not exceed Rs. 2,37,500/- (Rupees two lakh thirty seven thousand five hundred only). Amount of Gratuity and CVP which has already been notified, shall remain unchanged.

5. This issues with the concurrence of Ministry of Defence (Finance/ Pension) vide their ID No. 10(8)/2018/Fin/Pen dated 23.12.2020.

6. Hindi version will follow.

Yours faithfully,

(Ashok Kumar)
Under Secretary to the Government of India

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