Calculation Software: 7 CPC Arrears

Simple Formula to Calculate Your 7 CPC Arrears

Many veterans and disabled soldiers are intimating me amount of 7th CPC arrears their banks remitted and ask me whether the arrears received is correct or not. I do the calculations with a simple formula to arrive at their arrears.

With this simple formula you can calculate your own 7th CPC arrears and you need not approach me or anyone else to know correctness of your arrears. I will illustrate with my own case

7th CPC Arrears : Jan to Jun 2016.

You are paid pension from Jul 2014 to Dec 2015 depending upon your rank, length of service (excluding rank weightage and Group (for JCOs & OR).OROP pension without DR is given in Table 1 of Circular 555 for Officers and Table 7 for JCOs & OR.

Thereafter from January to Nov 2016 with your pension in 7th CPC got enhanced by 2.57 times of OROP Basic Pension. This is what you should have got. But orders to the banks were given only on 29 Sep 2016 vide Circular 570 to implement  by 29 Dec 2016.      Therefore you were continued to be paid your pension at OROP x 2.25 (pension +125% of DR) from Jan to Nov 2016.

You received your arrears of 7th CPC (from Jan to Nov 2016) and pension of December with 2% DR by end of Dec 2016. SBI Telangana paid me my 7th CPC arrears on 28 Dec 2016.

You know arrears = What you should have been paid – What you were actually paid.

From the above you can make out your arrears are dependent upon your OROP Basic Pension (without DR)

What You should have been Paid 

Jan to Jun 2016. You should have got your enhanced pension = OROP x 2.57 with DR @ 0% (DR for first six months in any CPC period is 0 %)

 Jul to Nov 2016. Govt of India sanctioned DR @ 2% for this period. Your enhanced pension in this period of five months is = 2.57 x 1.02 x OROP. (1.02 is because of 2% DR)

Arrears  Jan to Nov 16    = 2.57 x OROP x 6 months (Jan to Jun 16) + 2.57 x 1.02 x 5 months (Jul to Nov 16)

= 2.57 x OROP (6+1.02 x 5)

= 28.5270 x OROP

What Your Bank has Paid : Jan to Nov 2016?

Govt of India announced DR for the period Jul to Nov 2016 sometime in Oct 2016. Therefore your bank paid at 125% of OROP for 11 months (Jan to Nov 2016).

= OROP x 2.25 x 11

= 24.75 x OROP

Arrears = (28.5270 – 27.75) x OROP

= 3.777 x OROP

What is my 7th CPC arrears as Brig with 32 years’ service?

= 3.777 x 37280  (Table 1 of Circular 555)

= Rs 1,40,807

So you just multiply your OROP Basic Pension (without DR as given in Table 1 or 7 of  Circular 555) with 3.777 to get your 7th CPC arrears.

Disabled Soldiers

Govt of India based on the representation of three service HQs have referred the disability element of pension to the Anomaly committee. So your disability element is frozen with rates as in Dec 2015. You will get your arrears depending upon the recommendation of the Anomaly Committee and after the recommendations are approved by Govt of India. Banks erroneously paid you Disability element at 125% where as it should have been at 119% as prevailing in Dec 2015. Therefore banks have recovered excess paid to you i.e. 6% of DR from your 7th CPC arrears.

For 100% disability the disability element is 30% of Last Pay Drawn.

Last Pay Drawn = 2 x Pension

Disability Element for 100% Disability = 2 x Pension x 0.30 = 0.60 x OROP per month

Excess DR Paid  (125-119 =6%) from Jan to Nov 2016 (11 months) for 100% Disability = 0.6 x 11 x 0.06 x OROP

Recovery Made by Banks for 100% Disability = OROP x 0.6 x 11(months) x 0.06 (excess DR paid)

= OROP x 0.3960

Most of you were granted disability element at the rate of 20%.

The recovery made by your bank for 20% disability = 11 x 0.06 (Excess DR)  x 0.30(30% of last pay drawn for 100 % disability) x 0.20 ( your20% disability)  = OROP x 0.3960 x 20/100

If I were disabled with 20% then recover would have been = 0.0396 x 37280 x 0.20 = Rs 2,953

So depending upon your disability per centage the recovery effected by your bank

= OROP x 0.3960 x Your Disability Percentage /100   

What Can you do if 7th CPC Arrears Not yet Remitted 

If banks delayed payment then you are entitled to claim 8% penal interest from the banks. I am told Bank of India has still not remitted your 7th CPC arrears. Firstly give a warning to CPPC, Bank of India and then send a complaint to RBI Ombudsman of your State. You will get arrears with penal interest.

PS:  But if your PPO does not contain any one data out of your (a) rank, (b) length of service and (c) Group X or Y (for JCOs and OR) then banks are not at fault. It is you who have failed to get your PPO corrected.

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