Centre forms panel to study enhanced allowance for retired employees [Governance]
- The Union government has constituted a high-level committee to examine enhancement of `Constant Daily Allowance’.
- It is paid to retired employees with 100 % disability where person is completely dependent on somebody for day-to-day functions, from Rs. 3,000 to Rs. 6750 per month and fixed medical allowance to retired employees from Rs. 500 per month.
- Constant Daily Allowance is paid only if disability is attributable to or aggravated during the course of service.
- The Department of Personnel and Pensions said that the Committee would also examine the `fitment formula’ on revision of pension.
- The decision is a follow-up to the recommendations of the Seventh Central Pay Commission which among other issues had examined the principles which should govern the structure of pension and other retirement benefits.
- On revision of Pension, the Commission recommended two formulas. It had said that pension for all the civilian personnel including Central Armed Police Forces (CAPF) shall first be fixed in the Pay Matrix being recommended by this Commission, on the basis of the Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the matrix.