How is the pension for pre-2016 pensioners revised?

The pension/family pension of existing pre-2016 pensioners/family pensioners will be revised notionally by multiplying the existing basic pension/basic family pension as on 31.12.2015 by 2.57. The amount will then be rounded off to the nearest 10 rupees. If the revised basic pension is below Rs. 8500, it will be fixed at a minimum of Rs. 8500. This revision is effective from 01.01.2020.

What is the additional quantum of pension for older pensioners?

Pensioners receive an additional quantum based on their age: From 80 years to less than 85 years: 20% of revised basic pension/family pension. From 85 years to less than 90 years: 30% of revised basic pension/family pension. From 90 years to less than 95 years: 40% of revised basic pension/family pension. From 95 years to less than 100 years: 50% of revised basic pension/family pension. 100 years or more: 100% of revised basic pension/family pension.

What happens if a pensioner receives more than one pension?

In the case of pensioners who are in receipt of more than one pension, the minimum of Rs. 8,500 will apply to the total of all pensions taken together.

What are the new upper ceilings for pension and family pension?

The upper ceiling on pension has been increased from Rs. 35,000 to Rs. 1,00,500, and for family pension from Rs. 21,000 to Rs. 60,300.

How does commutation affect the revised pension?

The consolidated revised pension is inclusive of the commuted value of pension. Therefore, the commuted portion shall be deducted from the pension while making monthly disbursement.

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Revised Pension Benefits and Age-Related Additional Quantum

Date: June 21, 2025 | Author: Abdus Samad

This article provides a comprehensive overview of the revised pension benefits, particularly focusing on the additional quantum of pension available to older pensioners, and the methods for calculating revised pensions for pre-2016 retirees.

Age of Pensioners & Additional Quantum of Pension

The quantum of pension or family pension available to old pensioners and family pensioners shall be increased based on their age, as detailed below:

Age of Pensioners	Additional Quantum of Pension
From 80 years to less than 85 years	20% of revised basic pension / family pension.
From 85 years to less than 90 years	30% of revised basic pension / family pension
From 90 years to less than 95 years	40% of revised basic pension / family pension
From 95 years to less than 100 years	50% of revised basic pension / family pension
100 years or more	100% of revised basic pension / family pension

Revision of Pension for Pre-2016 Pensioners

The pension/family pension of existing pre-2016 pensioners/family pensioners will be revised notionally. This is achieved by multiplying the existing basic pension/basic family pension as on 31.12.2015 by a factor of 2.57.

The amount of revised pension/family pension so arrived at shall be rounded off to the next 10 (ten) rupees if the said amount is not a multiple of Rs. 10 (ten). However, if the revised basic Pension is below Rs. 8500, it will be fixed at a minimum of Rs. 8500/-.

The amount so arrived at will be regarded as revised pension/family pension with effect from 01.01.2020.

Illustrations of Pension Revision:

Existing Basic Pension as on 31.12.2015	Figure arrived at on multiplication by 2.57	Revised Basic Pension after rounding off to next 10 (ten) rupees
Rs. 3302	Rs. 8486.14	Rs. 8500 (Minimum Pension)
Rs. 3422	Rs. 8794.54	Rs. 8800
Rs. 6432	Rs. 16530.24	Rs. 16540
Rs. 11000	Rs. 28270.00	Rs. 28270

As the revision is based on a simple formula, a Ready Reckoner for the same is not necessary.

Impact of Commuted Pension on Revised Pension

The consolidated Pension of the Pensioner revised in accordance with the above provision will be inclusive of the commuted value of Pension, if any. Such commuted portion shall be deducted from the Pension while making monthly disbursement.

Illustration of Commuted Pension Deduction:

‘A’ was entitled to a basic Pension of Rs. 13525/- per month from 01.10.2014 (i.e., before 01.01.2016). After commutation of 40% of Pension, which is Rs. 5410/-, his Pension reduced to Rs. 8115/-. He is now drawing Pension of Rs. 8115/- and relief, as admissible, on original basic Pension of Rs. 13525/-.

His revised Pension will be Rs. 13525/- × 2.57 = Rs. 34759.25, which rounds off to Rs. 34760/- (after rounding off to the next ten rupees). As the consolidated Pension is inclusive of the commuted portion of Pension, the commuted amount of Rs. 5410/- shall be deducted from Rs. 34760/- for monthly disbursement of Pension, which will be Rs. 29350/- (Rs. 34760/- – Rs. 5410/-) from 01.01.2020.

Important Provisions Regarding Pension Fixation

Multiple Pensions: In the case of pensioners who are in receipt of more than one pension, the minimum of Rs. 8,500/- (eight thousand five hundred) will apply to the total of all pensions taken together.
Upper Ceiling: The upper ceiling on pension/family pension laid down in Memo. No. 200–F(Pen) dated 25.02.2009 has been increased from Rs. 35,000/- and Rs. 21,000/- to Rs. 1,00,500/- and Rs. 60,300/- respectively.
Minimum Revised Pension: The fixation of pension will be subject to the provision that the revised pension, in no case, shall be lower than 50% of the minimum of the Pay in the Pay matrix in the revised Pay Structure corresponding to the pre-revised pay-scale/pre-revised pay structure from which the pensioner had retired.

Source: https://wbcalculator.com