Rejecting the 7th pay commission’s recommendation of a slab-based system to calculate the disability pensions, the Union Cabinet Wednesday approved the original percentage-based system that was implemented after the 6th pay commission’s recommendations. Retention of the percentage-based system will benefit existing and future defence pensioners. This system also brings additional pension expenditure of Rs 130 crore per year will make Centre’s total annual pension bill approximately Rs 1,76,071 crores. This modification will be implemented from January 1, 2016.

An official statement released said, “The Cabinet chaired by Prime Minister Narendra Modi approved retention of percentage-based regime, which the 7th CPC recommended to be replaced by a slab-based system.”

Finance Minister Arun Jaitley, who currently holds the defence portfolio as well, said the slab system did not provide “sufficient compensation” for those injured or disabled during service. Moreover, he noted the problem of parity with civil defence employees.

“There was a decision on disability pension, in which there was an alternative slab system. There was a representation regarding it which said it was not sufficient compensation for those who get disabled during service, and there was also an issue of parity with the civilian employees,” he said.

Full Content: Indian Express

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