JOIN USThe Union Cabinet on Wednesday approved key proposals relating to modifications in the Seventh Central Pay Commission (CPC) recommendations on pay and pensionary benefits in the course of their implementation.
It will benefit over 55 lakh pre-2016 civil and defence pensioners and family pensioners, taking the annual pension bill alone of the Central government to touch Rs.1,76,071 crore.
The Union Cabinet also approved four modifications in the defence pension from the Seventh Pay Commission’s original proposal that was opposed by the armed forces as they led to a reduction of their pay and status.
Some of the important aspects of the Cabinet’s decision related to the method of revision of pension of pre-2016 pensioners and family pensioners are based on suggestions made by the Committee chaired by Secretary (Pensions).
Earlier, the pensions of pre-2016 pensioners were revised as per a formulation, which involved multiplying existing pension by a fitment factor of 2.57.
To provide the more beneficial option to pensioners, the Cabinet on Wednesday accepted the recommendations of the committee, which wanted revision of pension based on information contained in the Pension Payment Order (PPO) issued to every pensioner.
The revised procedure of fixation of notional pay is more scientific, rational and implementable in all the cases, according to Finance Minister Arun Jaitley.
He said the modified formulation will be beneficial to more pensioners than the first formulation recommended by the CPC, which was not found to be feasible to implement on account of non-availability of records in a large number of cases and was also found to be prone to several anomalies.
The new move will entail an additional benefit to the pensioners and an additional expenditure of approximately Rs 5,031 crore in 2016-17 itself — over and above the expenditure already incurred in revision of pension as per the second formulation based on fitment factor.
The benefits of the proposed modifications will be available with effect from January 1, 2016, that is, from the date of implementation of the CPC recommendations.
Food schemes
The Centre on Wednesday gave its nod to revamp the National Food Processing Mission under an umbrella programme — Sampada — with a Rs 6,000-crore outlay aimed at handling 334 lakh metric tonnes of food produce and cutting post-harvest losses.
Govt to divest ITDC shares
Commencing its disinvestment process early, the government on Wednesday approved share sale of three ITDC hotels at Bhopal, Bharatpur and Guwahati, DHNS reports from New Delhi.
“The Indian Tourism Development Corporation (ITDC) will offload its 50% equity in Ashok Hotel of Bhopal and Brahmaputra Ashok of Guwahati to the state of Madhya Pradesh and Assam,” Arun Jaitley said.
DH News Service