In a decision that will benefit about 55 lakh pensioners, the Central government approved changes to the 7th Central Pay Commission (CPC) on pay and pensionary benefits. The overall benefit to pensioners will be about Rs 5,030 crore in 2016-17, the government said on Wednesday in a statement.
"The Cabinet approved modifications in the recommendations of the 7th CPC relating to the method of revision of pension of pre-2016 pensioners and family pensioners based on suggestions made by the Committee chaired by Secretary (Pensions) constituted with the approval of the Cabinet.
"The benefit of the proposed modifications will be available with effect from 1st January, 2016, i.e., the date of implementation of 7th CPC recommendations. It will benefit over 55 lakh pre-2016 civil and defence pensioners and family pensioners," an official statement issued on behalf of the Union Cabinet, said.
Disability pension for defence pensioners
It was also decided to retain the percentage-based regime of disability pension implemented post 6th CPC, though the 7th CPC had proposed to switch to a slab-based system, giving relief to the beneficiaries.
The decision entails an additional outgo of about Rs 130 crore every year, the statement said.
No statement on allowances
The government did not comment on the hike in perks for Central government employees. The CPC examined 196 existing allowances after which it recommended abolition of 51 and subsuming 37 others with the existing ones.
A committee formed to look into the proposals of the CPC on allowances headed by the finance secretary had already submitted its report. The committee was formed last June. The Ashok Lavasa committee gave its report to finance minister Arun Jaitley on April 27.
"The Report, now being examined in the Department of Expenditure, Ministry of Finance, will be placed before the Empowered Committee of Secretaries (E-CoS) set-up to screen the 7th CPC recommendations and to firm-up the proposal for approval of the Cabinet," the finance ministry said on April 28.
