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Table 5 Impact of the Fifth Central Pay Commission on pension benefits

From: Central civil servant pension payments in India: Issues and concerns

Sl no. Pre-1996 pensioner Post-1996 pensioners
 1 Ceiling on pension: INR 4500 p.m. Ceiling raised to INR 15 000 p.m. (50% of the highest pay)
 2 No parity in respect of old pensioners Full parity of pension for pre-1986 pensioners as on 1 January 1986 and modified parity w.e.f. 1 January 1996
Pension raised to 50% of the minimum of the revised scale as on 1 January 1996 for all pensioners
 3 Gratuity ceiling: INR 2.5 lakhs Gratuity ceiling raised to INR 3.5 lakhs
 4 Dearness allowance not included for calculation of gratuity Dearness allowance included for calculation of gratuity
 5 Commutation: one-third of the pension Commutation increased to 40% of pension
 6 Dearness relief neutralization pension 100% neutralization against inflation. Complete relief to pensioners/family pensioners on par with serving employees
100% – up to INR 1750
75% – INR 1751–3000
65% – above INR 3000
 7 Family pension rates were in slabs of 30, 20 and 15% Uniform rate of 30% of pay for all categories subject to a minimum of INR 1275
 8 Family pension ceiling: INR 1250 Ceiling raised to 30% of pay for all categories subject to a maximum of INR 9000
 9 Dependent parents, widows/divorced daughters not considered for family pension Dependent parents, widowed/divorced daughters included in the definition of family for the purpose of family pension
10 Dearness relief for re-employed pensioners and employed family pensioners was not allowed earlier Dearness relief allowed for re-employed pensioners whose pay was fixed at the minimum of scale and to all employed family pensioners
11 Medical allowance to pensioners did not exist Medical allowance of INR 100 p.m. was allowed for eligible pensioners who are not covered by the Central Government Health Scheme (CGHS)
  1. Source: Report of High Level Expert Group on New Pension System (volume 1: main report), Government of India, Ministry of Personnel, Public Grievances and Pensions (Department of Pension and Pensioners’ Welfare), February 2002.