Cabinet approved the substitute formulae in place of option-1 of recommendation of 7th CPC. It is to understand as follow.
Pay Scale on 31-10-1998 or 30-9-2000 as the case may be
Last Pay drawn with number of increment
Notional fixation on 1-1-2006 accordingly
Divided by 2 and get the Notional Pension on 1-1-2006
Multiply by 2.57 to the arrived Notional Pension on 1-1-2006
It will be your new Pension on 1-1-2016
Example No.1
Pay Scale on 31-10-1998 is 4500-125-7000
Last Pay drawn (three increment) 4875
Notional Fixation on 1-1-2006 11870
Notional Pension on 1-1-2006 ( divide by 2) 5935
Pension on 1-1-2016 ( 5935 X 2.57 ) 15253
Example No.2
Pay Scale on 30-9-2000 7500-250-12000
Last Pay drawn ( nine increment) 9750
Notional Fixation on 1-1-2006 22940
Notional Pension on 1-1-2006(divide by 2) 11470
Pension on 1-1-2016 ( 11470 X 2.57) 29478