7th Pay Commission Recommendations pension and Related Benefits raising the Existing Rates of Pension and Family Pension
10.1.24 In representations to and in meetings with the Commission a number of entities have, while seeking a raise in pension from the existing level of 50 percent of last pay drawn, questioned the basis for determination of pension at 50 percent of last pay drawn. Similarly representations for increasing family pension from existing 30 percent to 50 percent of the last pay drawn have been received by the Commission.
Analysis and Recommendations
10.1.25 The Commission sought the views of the government in this regard. The Department of Pension and Pensioners Welfare stated 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. Further 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’/‘reckonable emoluments.’ Therefore the Commission does not recommend any further increase in the rate of pension and family pension from the existing levels.