Raising the existing rates of pension and Family pension : 7th CPC Recommendation
Pay commission : No need to recommend for further increase in the rate of pension and family pension from the existing levels
Now 50% of Last Pay drawn has been granted as Pension for retiring Government Servants.
Federations and Govt servants demanded 60% of Last Drawn Pay to be fixed for Monthly Pension and demanded to increase the family Pension from existing 30% to 50 %.
The Commission stated in its recommendation that it sought the views of the government in this regard.
The Department of Pension and Pensioners Welfare stated in its response to the Pay commission that the VI CPC had recommended calculation of pension @ 50 percent of last pay or the average emoluments (for last 10 months) whichever is more beneficial. The Commission also recommended delinking of pension from qualifying service of 33 years. Effectively the dispensation on pension has already been liberalised by the VI CPC.
Also the 7th pay Commission felt that the recommendations of this Commission in relation to pay of both the civilian and defence forces personnel will lead to a significant increase in the pay drawn and therefore in the ‘last pay drawn is reckonable emoluments.
So the Commission was of the view that the existing rates of additional pension and additional family pension are appropriate
Therefore the Commission said in its recommendation that there is no need to recommend for further increase in the rate of pension and family pension from the existing levels.
The Arguments given by Pay commission for not to increase the rates of pension and family pension is debatable issue.
7th pay commission Recommendation on increasing Minimum Pension
There was resentment among central government employees regarding Minimum Pension. Demands were raised to increase the minimum Pension.The commission recommends..[Continue Reading]