Compute you new Pension

Pension computation (Revised as per 7CPC report)

For retirees prior to 1-1-2016

There are two ways to calculate the Basic Pension as on 1-1-2016. The second method will account for your service in that grade (ie.with Full Parity).

1            Multiply current  Basic Pension (as per 6CPC)  with the increasing factor of 2.57.

2            This second method considers your service in the grade.

First fix your pay in the pay band and grade pay in the new “Pay Matrix” at the minimum of the corresponding Level.

This amount is incremented with adding number of your increments in the grade multiplied by 3%.

Alternately, Fix your notional pay in the Level, and look for the Index ( = number of increments in that grade +1 ) in the respective column in the Matrix.

Please note that  these amounts (no.of increments x 3%  Vs  indexed amount in matrix may differ slightly. However take the value corresponding to the Index.

Now, choose the higher of 1 and 2 above. That is your new Notional pay in the 7CPC system.

Take half of this notional pay , and that is your Basic Pension.

Case :  Pre-2006  retiree;  Grade :   Engineer SF ;   Scale : 37400—67000,  and Grade Pay : 8700

Number of years of service (increments) in SF grade = 8 years.

Present Basic pension  = 23050 (fixed as per 6CPC)

Corresponding  7CPC   Level  - 13 , Index – 9,   Increase factor – 2.57

As per present  (6CPC)  terms, Basic Pension as on 1-1-2016  = 23050 x 2.25 = 51862 ( Assuming DA of 125% on 1-1-2016)

As per proposed (7CPC) terms :  

Notional Pay at  entry in Level  13 =  118500   [ ie. (37400+8700) x 2.57  = 118477.  Rounded off to 118500 ]

Basic Pension at this entry level = 118500/2 = 59250

Therefore, gain in Pension = 59250 -  51862 = 7388.  Ie.   14.2 %  over the current pension .

Therefore, all  Pre-2006  retirees in Engr SF grade ( 7CPC  Level 13 ) gets Basic pension = 59250  wef.  1-1-2016.

{  This may also be arrived at as :   Present Basic Pension  of 23050 x  2.57 = 59238.5 }

[  Where is that 24% increase in pension as the Commission and Media  says ?   ]

Now the second scenario  considering  the service in the grade (ie. With full parity )

In the Pay Matrix, take Level 13 ; Entry pay = 118500.

No. of increments = 8 ; at the rate of 3 %;  = 8x3 = 24%

Notional pay = 118500 x 1.24 = 146940.  Therefore basic pension = 146940/2 = 73470.

Alternately , against Level 13, look for index of  9 (this corresponds to 8 increments). This = 150200

Therefore Basic pension considering Full parity = 150200/2 = 75100

Therefore, your Basic  pension , based on First method = 59250  (wef 1-1-2016 )

Basic pension  on full parity  = 75100  (wef 1-1-2016)

You may also refer the following table to fix your Notional pay in the Pay Matrix.

For any  Engineer SF, who retired before 1-1-2016 ( includes Pre-2006 and earlier retirees )

Increments in                    Index in  7CPC                    Notional pay                      Revised

SF grade                              Pay  Matrix                                                                         Basic Pension

0 (entry)                                  1                                              118500                                  59250           

1                                              2                                              122100                                  61050

2                                              3                                              125800                                  62900

3                                              4                                              129600                                  64800

4                                              5                                              133500                                  66750

5                                              6                                              137500                                  68750

6                                              7                                              141600                                  70800

7                                              8                                              145800                                  72900

8                                              9                                              150200                                  75100

9                                              10                                           154700                                  77350

10                                           11                                           159300                                  79650

Note :  Number of years of  service in the grade and number of increments in the scale may not be same. This happens in cases where advance increments are given while pay fixation in the Grade.

"How to find the Notional Pay"
In computing your Revised Pension (7CPC), please  note the following.

It is stated to add  3% of the notional pay for every increment in the scale ( not the number of years of service in the grade).
However,  the Cases used in the  7CPC report  for demonstrating the computation uses the corresponding Level Index .

Please refer Page 396 of the report.  Case I.  10.1.70

Therefore it is clear that you may get the notional pay directly from Pay Matrix (and without having to do the multiplication process).

Read the Notional Pay directly from the Pay Matrix.

First, Identify your PayBand and Grade Pay column in the Matrix.

The index number = Number of increments in the grade + 1.   eg. If you had 6 increments in the grade while retiring, the index is 7.

Therefore read your notional pay across the index number 7, in the column corresponding to your Grade pay.


Half of this figure is your new Pension (as on 1-1-2016).

Such Tables can be provided here , if  requested for.

7CPC Report  Download