Calculation of monthly contribution towards cost of Pension payable during foreign service - DoPT

Calculation of monthly contribution towards cost of Pension payable during foreign service - DoPT

Latest Central Government Employees News

No. 2/9/2017- Estt.(Pay-II)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training

North Block, New Delhi
Dated, 9th October, 2020.

OFFICE MEMORANDUM

Latest DoPT Orders 2020

Sub: Calculation of monthly contribution towards cost of Pension payable during foreign service - Reg.

The undersigned is directed to invite reference to this Department’s OM No. 2/34/2008-Estt (Pay-II) dated 19th November, 2009 on the above subject and to say that according to this OM w.e.f. 01.01.2006, the pension contribution payable in respect of a Government employee during the active period of his foreign service shall be based on the existing basic pay (Pay in the Pay Band plus Grade Pay) of the post held by the Government servant at the time of proceeding on foreign service, and in case he receives Proforma promotion/ financial up-gradation while on foreign service, on the basic pay (Pay in the Pay Band plus Grade Pay) fixed on such promotion/ financial up-gradation.

Also check: 7TH PAY COMMISSION PENSION CALCULATION

2. Consequent upon implementation of the recommendations of the 7th CPC, the matter of issuing revised instructions on the above subject has been engaging the attention of the Government of India. The President is now pleased to decide that pension contribution payable in respect of a Government servant during the active period of his foreign service shall be based on the basic pay in the level (in Pay Matrix) of the post held by him/ her at the time of proceeding on foreign service; and in case of grant of Proforma promotion/financial up-gradation while on foreign service, the same shall be based on basic pay in the Level (in Pay Matrix) fixed on such Proforma promotion / financial up-gradation.

3. In respect of Government employees covered by the NPS, during the active period of foreign service w.e.f. 01.01.2016, it has been decided to fix the monthly Pension contribution @ 24% of basic pay in the level (in Pay Matrix) of the post held by him/her at the time of proceeding on foreign service plus DA admissible on such basic pay (i.e. employee’s contribution @ 10%, employer’s contribution @ 10% and contribution by employer for gratuity @ 4%). However, consequent to revision of Government’s contribution for NPS from 10 % to 14% w.e.f. 01.04.20 19 vide Department of Financial Services Notification dated 31.01.2019, the monthly Pension contribution for Government employees covered by the NPS w.e.f. 01.04.2019 will be 28% of basic pay in the level (in Pay Matrix) plus DA of the post held by him/her, which will include employee’s contribution @ 10%, employer’s contribution @ 14%, and contribution by employer for gratuity @ 4%. In case of grant of Proforma promotion/ financial up-gradation while on foreign service, the same shall be based on basic pay in the Level (in Pay Matrix) fixed on such Proforma promotion /financial up-gradation.

4. In respect of the employees covered under the Old Defined Benefit Pension Scheme, it has been decided to fix their rates of monthly contribution of pension during the active period of foreign service as 14% of basic pay in the level (in Pay Matrix) of the post held by him/her at the time of proceeding on foreign service plus DA admissible on such basic pay during foreign service w.e.f. 01.01.2016. The monthly contribution of pension during the active period of foreign service w.e.f. 01.04.2019 will be 18% of the basic pay in Pay Matrix of the post held by the officer at the time of proceeding on foreign service plus DA admissible on such basic pay.

In case of grant of Proforma promotion/ financial up-gradation while on foreign service, the same shall be based on basic pay in the Level (in Pay Matrix) fixed on such Proforma promotion/ financial up-gradation.

5. It has also been decided that these pension contributions would be in addition to the leave salary contributions for the period of foreign service, in respect of both NPS employees and the employees under Old Defined Benefit Pension Scheme.

6. In case of employees covered under NPS, during the period of active foreign service, the borrowing organisation shall make its part of contribution mandatorily to the NPS Account of the employee.

7. This OM will be effective from 01.01.2016. In respect of persons who are already on foreign service as on 01.01.2016, the pension contribution will be calculated at the above rates on the revised pay as per 7th CPC from the date which they opt to come over to the revised pay structure after implementation of 7th CPC recommendations, in their parent cadres. For the earlier period, the pension contributions will be as per extant orders i.e. the order in force during period prior to 01.01.20 16 from time to time.

8. The modalities! mechanism of payment of pension contribution during the active period of foreign service in respect of NPS subscribers will be issued separately.

Also check: Retirement of Government Employees on 31st March 2020 – DoPT Orders 2020

9. In their application to the persons belonging to Indian Audit and Accounts Department, these orders are issued under Article 148(5) of the Constitution and after consultation with the Comptroller & Auditor General of India.

10. Hindi version will follow.

(Rajeev Bahree)
Under Secretary to the Government of India

To
All Ministries/ Department (As per standard list)

Source: DoPT

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PENSION CALCULATION AS PER 7TH CPC NOTIFICATION WITH ILLUSTRATION

PENSION CALCULATION AS PER 7TH CPC NOTIFICATION WITH ILLUSTRATION

For existing pensioners, who have retired before 01.01.2016, the revised pension/family pension with effect from 01.01.2016 shall be determined by multiplying the pension/family pension, as had been fixed at the time of implementation of 6th Central Pay Commission (CPC) recommendations, by 2.57. The amount of revised pension/family pension so arrived at shall be rounded off to next higher rupee.

Illustration:

Case I : Pensioner ‘A’ retired at last pay drawn of Rs. 79,000 on 31st May, 2015 under the 6th CPC regime in the scale of Rs. 67000-79000:

		Amount in Rs.
1.	Basic Pension fixed in 6tH CPC	39500
2.	Revised Pension fixed under 7tnCPC (using a multiple of 2.57)	101515

Case II
Pensioner ‘B’ retired at last pay drawn of Rs. 4,000 on 31st January, 1989 under the 4th CPC regime in the pay scale of Rs. 3000-100-3500-125-4500:

		Amount in Rs.
1.	Basic Pension fixed in 4tn CPC	1,940
2.	Basic Pension as revised in 6th CPC	12,600
3.	Revised Pension fixed under T” CPC (using a multiple of 2.57)	32,382

Authority: Authority: http://www.pensionersportal.gov.in/

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Implementation 7th Pay Commission Revision of pension of pre-2016 Pensioners/Family Pensioners

Implementation 7th Pay Commission Revision of pension of pre-2016 Pensioners/Family Pensioners

F.No.38/37/2016-P&PW(A) (ii)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners’ Welfare
Lok Nayak Bhawan, New Delhi-110003

Dated the 4th August, 2016.

OFFICE MEMORANDUM

Sub: Implementation of Government’s decisions on the recommendations of the Seventh Central Pay Commission – Revision of pension of pre-2016 pensioners/family pensioners etc.

The undersigned is directed to say that in pursuance of Government’s decision on the recommendations of Seventh Central Pay Commission, sanction of the President is hereby accorded to the regulation, with effect from 01.01.2016, of pension/ family pension of all the pre-2016 pensioners/ family pensioners in the manner indicated in the succeeding paragraphs. Separate orders are being issued in respect of employees who retired/died on or after 01.01.2016.

2.1 These orders shall apply to all pensioners/family pensioners who were drawing pension/family pension before 1.1.2016 under the Central Civil Services (Pension) Rules,
1972, Central Civil Services (Extraordinary Pension) Rules and the corresponding rules applicable to Railway pensioners and pensioners of All India Services, including officers of the Indian Civil Service retired from service on or after 1.1.1973. A pensioner/family pensioner who became entitled to pension/family pension with effect from 01.01.2016 consequent on retirement/death of Government servant on 31.12.2015, would also be covered by these orders.

2.2 Separate orders will be issued by the Ministry of Defence in regard to Armed
Forces pensioners/family pensioners.

2.3 These orders also do not apply to retired High Court and Supreme Court Judges and other Constitutional/Statutory Authorities whose pension etc. is governed by separate rules/orders.

3. In these orders:
4. ‘Existing pensioner’ or ‘Existing Family pensioner’ means a pensioner/family pensioner to whom these orders are applicable in terms of para 2.1 above.
5. ‘Existing pension’ or ‘Existing Family Pension means the basic pension (inclusive of commuted portion, if any) or basic family pension, as had been fixed at the time of implementation of 6th CPC recommendations, which an existing pensioner or family pensioner was entitled to.

4.1 For existing pensioners, who have retired before 01.01.2016, the revised pension/family pension with effect from 01.01.2016 shall be determined by multiplying the pension/family pension, as had been fixed at the time of implementation of 6th Central Pay Commission (CPC) recommendations, by 2.57. The amount of revised pension/family pension so arrived at shall be rounded off to next higher rupee.

Illustration:
Case I : Pensioner ‘A’ retired at last pay drawn of Rs. 79,000 on 31st May, 2015 under the 6th CPC regime in the scale of Rs. 67000-79000:

		Amount in Rs.
1.	Basic Pension fixed in 6tH CPC	39500
2.	Revised Pension fixed under 7tnCPC (using a multiple of 2.57)	101515

Case II: Pensioner ‘B’ retired at last pay drawn of Rs. 4,000 on 31st January, 1989 under the 4th CPC regime in the pay scale of Rs. 3000-100-3500-125-4500:

		Amount in Rs.
1.	Basic Pension fixed in 4tn CPC	1,940
2.	Basic Pension as revised in 6th CPC	12,600
3.	Revised Pension fixed under T” CPC (using a multiple of 2.57)	32,382

4.2 For this purpose, the existing pension/family pension will be the basic pension/family pension only without the element of additional pension available to the old pensioners/family pensioners of the age of 80 years and above. The additional pension/family pension payable to the old pensioners/family pensioners will be worked out in accordance with para 4.5 of this O.M.

4.3 Since the consolidated pension will be inclusive of commuted portion of pension, if any, the commuted portion will be deducted from the said amount while making monthly disbursements.

4.4 The minimum pension with effect from 01.01.2016 will be Rs. 9000/- per month (excluding the element of additional pension to old pensioners). The upper ceiling on pension / family pension will be 50% and 30% respectively of the highest pay in the Government (The highest pay in the Government is Rs. 2,50,000 with effect from 01.01.2016).

4.5 The quantum of pension/family pension available to the old pensioners/ family pensioners shall continue to be as follows:-

Age of Pensioner/family Pensioner	Additional quantum of Pension
From 80 years to less than 85 years	20% of revised basic pension/ family pension
From 85 years to less than 90 years	30% of revised basic pension / family pension
From 90 years to less than 95 years	40% of revised basic pension / family pension
From 95 years to less than 100 years	50% of revised basic pension / family pension
100 years or more	100% of revised basic pension / family pension

The 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/her revised pension in terms para 4.1 above is Rs.10,OOO pm, the pension will be shown as (i).Basic pension=Rs.10,OOO and (ii) Additional pension = Rs.2,OOO pm. The pension on his/her attaining the age of 85 years will be shown as (i). Basic Pension = Rs.10,OOO and (ii) additional pension = Rs.3,OOOpm. Dearness relief will be admissible on the additional pension available to the old pensioners also.

4.6 The revised pension/family pension arrived at as per paragraph 4.1 includes dearness relief sanctioned from 1.1.2016.

5. Where the revised pension/family pension in terms of paragraph 4.1 above works out to an amount less than Rs. 9000/-, the same shall be stepped up to Rs. 9000/-. This will be regarded as pension/family pension with effect from 1.1.2016.
6. The existing instructions regarding regulation of dearness relief to employed/re- employed pensioners/family pensioners, as contained in Department of Pension & Pensioners Welfare O.M. No. 45/73/97-P&PW(G) dated 02.07.1999, as amended from time to time, shall continue to apply.
7. The cases of Central Government employees who have been permanently absorbed in public sector undertakings/autonomous bodies will be regulated as follows:-

(a) PENSION
Where the Government servants on permanent absorption in public sector undertakings/autonomous bodies continue to draw pension separately from the Government, the pension of such absorbees will be updated in terms of these orders. In cases where the Government servants have drawn one time lump sum terminal benefits equal to 100% of their pensions and have become entitled to the restoration of one-third commuted portion of pension as per the instructions issued by this Department from time to time, their cases will not be covered by these orders. Orders for regulating pension of such pensioners will be issued separately.

(b) FAMILY PENSION
In cases where, on permanent absorption in public sector undertakings/autonomous bodies, the terms of absorption and/or the rules permit grant of family pension under the CCS (Pension) Rules, 1972 or the corresponding rules applicable to Railway employees/members of All India Services, the family pension being drawn by family pensioners will be updated in accordance with these orders.

8. The matter regarding Constant Attendant Allowance admissible to the existing pensioners shall be examined by a Committee comprising Finance Secretary and Secretary (Expenditure) as Chairman and Secretaries of Home Affairs, Defence, Posts, Health & Family Welfare, Personnel & Training and Chairman, Railway Board as Members. Till a final decision is taken based on the recommendations of the Committee, Constant Attendant Allowance shall be paid at existing rates.
9. All Pension Disbursing Authorities including Public Sector Banks handling disbursement of pension to the Central Government pensioners are hereby authorised to pay pension/family pension to existing pensioners/family pensioners at the revised rates in terms of para 4.1 and 5 above without any further authorisation from the concerned Accounts Officers/Head of Office etc. Wherever the age of pensioner/ family pensioner is available on the pension payment order, the additional pension/ family pension in terms of para 4.4. above may also be paid by the pension disbursing authorities immediately without any further authorisation from the concerned Account Officer/ Head of Office, etc. A suitable entry regarding the revised pension shall be recorded by the pension Disbursing Authorities in both halves of the Pension Payment Order.

10 The pension/family pension as worked out in accordance with provisions of Para
4.1. and 5 above shall be treated as ‘Basic Pension’ with effect from 01.01.2016. The revised pension/family pension includes dearness relief sanctioned from 1.1.2016 and shall qualify for grant of Dearness Relief sanctioned thereafter.

11. Further orders in regard to revision of pension based on the recommendations of the Committee to be constituted in terms of the Government’s decision on Item No. 11 of this Department’s Resolution No. 38/37/2016-P&PW (A) dated 4th August, 2016, will be issued in due course.
12. After a decision as in para 11 above is taken by the Government and orders are issued in this regard, the Head of the Department of the Ministry, Department, Office, etc. from which the government servant had retired or where he was working prior to his demise will revise the pension/family pension of all pensioners/ family pensioners with effect from 1st January 2016 in accordance with those orders and issue revised Pension Payment Order (PPOs) accordingly.
13. It is considered desirable that the benefit of these orders should reach the pensioners as expeditiously as possible. To achieve this objective it is desired that all Pension Disbursing Authorities should ensure that the revised pension and the arrears due to the pensioners in terms of para 4.1. and para 5 above is paid to the pensioners or credited to their account by 31st August, 2016 or before positively.
14. In their application to the persons belonging to Indian Audit and Accounts Department, these orders issue in consultation with the Comptroller and Auditor General of India.
15. 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. All pension disbursing offices are also advised to prominently display these orders on their notice boards for the benefit of pensioners.
16. Hindi version will follow.

Sd/-
(Vandana Sharma)
Joint Secretary to the Government of India

Click to view the OM

Authority: http://www.pensionersportal.gov.in/

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