The pay commission has provided a major relief for pensioners as well family pension by increasing it by 40 per cent. While retaining pension to be paid at 50 per cent of the average emoluments, higher rates of pension for retirees and family pensioners on attaining the age of 80, 85, 90 and 100 years.
The commutation table for commutation of pension has also been revised. The fitment formula recommended for serving employees to be extended in case of existing pensioners/ family pensioners.
The 40 per cent increase in the pension/family pension subsumes the increase on account of merger of dearness relief equal to 50 per cent of pension as dearness pay that was given from April 1, 2004. This will result in an additional expenditure of Rs 1,365 crore per annum in 2008-09. The annual additional expenditure of Rs 1365 crore covers pensioners of Defence Forces as well.
The pension is to be paid at 50 per cent of the average emoluments/ last drawn salary without linking it to 33 years of qualifying service. A liberal severance package for employees leaving service between 15 to 20 years of service has been proposed.
In case of government employees dying in harness, family pension is to be paid at the enhanced rates for a period of 10 years. The rates of constant attendant allowance for disabled pensioners have been increased by times to Rs 3,000 per month.
The panel has also suggested framing of an appropriate insurance scheme for meeting the OPD (out patient department) needs of pensioners in non-CGHS (Central Government Health Scheme) areas.
As per the recommendations of the commission, an additional benefit of 20 per cent of basic pension would be provided on attaining the age of 80 years of age. This would rise to 30 per cent of attaining 85 years, 40 per cent at the age of 90, 50 per cent at 95 and go upto 100 per cent at 100 years.