ALL VETERANS ARE REQUESTED TO SEE THE WEB SITE & GIVE YOUR VALUABLE COMMENTS/SUGGESTIONSGet this Widget

Thursday, 6 October 2016

Dear Veterans, 

 1. Please go through mail of Lt Col Latif Vadakkayil, Head of Pension Div of T SEWA.

 2. The very fact the Min of Def issued orders to def civilians just two days after issue of letter by Min of PPP & G for abolishing 33 year rule to get full pension and to pay arrears from Jan 2006 to all such pensioners who were paid pro-rata reduced pension. But similar letter has not been issued for pre - 2006 defence pensioners. This can lead to many conclusions. The conclusion drawn by Lt Col Latif Vadakkayil (based on some comment made by CGDA in Himachal Pradesh) that it is the financial outgo which is not permitting the Govt of India to issue the letter which they happily and immediately issued to Defence Civilians who have already drawn their arrears three months back. I just wanted to confirm whether it is the financial burden that is causing the Govt of India to delay issue of instructions for def pensioners or some other reason. 

3. We must firstly know who the beneficiaries of abolition of 33 year rule to pre - 2006 pensioners are. Sepoys, Naiks and Havildars who do not get to serve for 33 years even with rank weightage and Officers who get PMR are the beneficiaries. They have been paid pro – rata reduced pension till Jun 2014 as they did not serve for 33 years. For example from Jan 2006 to 23 Sep 2012 the rank weightages are as under:-
 (a) Sepoy - 10 years 
 (b) Naik - 8 years 
 © Hav - 6 years

 4. Officers. 
 It is generally seen Officers who unfortunately become Low Medical Category or not lucky enough to get promoted or suffering from domestic problems do seek premature retirement. The officers who mostly seek pre-mature retirement before they complete 33 years’ service with rank weightage are Majors, Lt Cols and very few Cols. Brigs and above are generally serve for 28 years and they get their full pension. The rank weightage for these PMR Officers are :- 

 (a) Major - 8 years. 
 (b) Lt Col (SG) - 5 years 
 © Lt Col (SG) - 7 years
 (d) Col - 7 years 

 5. Pro-rata Reduced Pension. Here is how a Sepoy of Y Group having completed his term of engagement of 15 years (later extended to 17 years) does not get his full pension as he does not complete 33 years with rank weightage of 10 years (15 years of service + rank weightage of 10 years = 25 years). 
 Rank Years of Service Rank Weightage Pension on pro-rata reduced basis as per Circular 547 Full Pension Loss Suffered from Jan 2006 to Jun 2014 

Sepoy 15 10 =5125 x (15+10)/33 = Rs 3883 =5125-3883 = Rs 1242 +DR per month Rs1,78,326 6.

 Even for Naik with 8 years rank weightage and Havildars with 6 years rank weightage will not get full pension as they will not be able to reach 33 years’ service required to get full pension or pension at the rate of 50% of Last Pay Drawn. 

 7. From 24 Sep 2012 rank weightage has been increased by two years for Sepoys to Havildars and maximum service to get full pension has been reduced to 32 years thanks to the decision of the Govt of India based on recommendation of Cabinet Secretary's committee (they gave some more benefits such as pension increase, dual family pension etc).

 8. Shri MO Inasu challenged the applicability of 33 year rule to pre – 2006 pensioners whereas the same has been abolished for post – 2006 pensioners. He won the case in hon’ble Supreme Court when the appeal of Govt of India was dismissed. In pursuance of judgment of hon’ble Supreme Court, Min of Personnel, pensions & Public Grievances issued the letter abolishing 33 year rule for pre – 2006 pensioners. Now arrears from Jan 2006 to Jun 2014 are required to be paid to all those who got pro-rata reduced pension. 

 9. Why is then such un-acceptable delay in issue of letter to PSAs to pay the arrears from Jan 2006 to Jun 2014 to defence pensioners when the same have been issued for Defence Civilians? For this you have to calculate approximate financial effect if arrears are to be paid either in one lump sum or even in instalments like in OROP. For the calculations, you need data of number of pensioners who are likely to get the benefit i.e. Sepoys X and Y Gp, Naiks X and Y gp, Havildars X and Y Gp, Majs, Lt Cols and Cols.

 10. It is surprising to note PCDA (Pensions) Allahabad have admitted in reply to RTI query of Col Sarbjit Singh when he sought the information as to how many defence pensioners are being paid pension rank wise, Group wise (for JCOs & OR) from length of service commencing from 0.5 to 33 years in any one month. They informed him vide their letter dated 06 Sep 2016 (copy attached) that such information is not maintained by them. However they give him some minimal information of number of Pensioners as on Apr 2016 which they call it as assessed (not exact ) as under:-
 Category Veteran Pensioner Family Pensioner Total Defence Pensioner
 Officer 44,175 15,520 59,695 
JCOs & OR 13,84,163 4,86,327 18,70,490
 Total 14,28,338 5,01,847 19,30,185 11.

 Can we calculate financial effect to pay arrears for the beneficiaries who got pro-rata reduced pension from Jan 2006 to Jun 2014 with this minimal information? Answer is plain NO.

 12. But we must not take the reply NO. Then what do we do? We simply use common military knowledge and get data not available from PCDAs, from sources like 7th CPC report, reports of Standing committee of Min of Def etc. Some missing data is assumed based on our regimental experience of commanding units. 

 13. Then how do you go? You know post – 2006 pensioners do not suffer this pro-rata reduced pension as the same has been abolished. They draw 50% of last pay drawn as pension. Therefore first step is to find out how many are the total pensioners as in Apr 2016 i.e pre – 2006 and post – 2006 pensioners.

 14. Then find out how many have retired from January 2006 to Apr 2016 i.e. post – 2006 pensioners. Then deduct post – 2006 pensioners from the total pensioners as in Apr 2006. This way you will get pre – 2006 pensioners. Thereafter use your regimental or battalion experience and fill gaps. Sepoys can serve upto 17 years, Naiks upto 24 years and Havildars upto 26 years. 

 15. I have made calculations using MS Excel 2013 version. The same is attached. But you will not be able to open it if you you do not have 2013 version of MS Excel. Take help of some friend who has this version. My figures may not be accurate as I do not have the data (so is PCDA (Pensions) Allahabad). But I made some guesses which are close to reality and finally I arrive at the financial outgo if arrears are to be paid from Jan 2006 to Jun 2014 as under:- Financial Effect of Arrears Due to Abolition of 33 Year Rule to geet Full Pension No of Beneficiaries Arrears per Person Total Arrears (Rs in Crores) 
Major with 20 years' Service 5,103 3,95,545 201.86 
Major with 21 years' Service 1,458 3,16,436 46.14 
Major with 22 years' Service 365 2,37,327 8.65 Major with 23 years' Service 219 1,58,218 3.46 Major with 24 years' Service 146 79,109 1.15
 Lt Col with 20 years' Service 5,339 6,84,800 365.58 
Lt Col with 21 years' Service 1,780 5,70,667 101.55 
Lt Col with 22 years' Service 890 4,56,533 40.62
 Lt Col with 23years' Service 445 3,42,400 15.23
 Lt Col with 24 years' Service 267 2,28,267 6.09 Lt Col with 25 years' Service 178 1,14,133 2.03 Col with 25 years' Service 1,370 1,20,782 16.55

 Sepoy Group X 33,165 1,58,865 526.87
 Sepoy Group Y 2,98,483 1,31,525 3,925.79 Naik Group X 9,476 73,925 70.05
 Naik Group Y 85,281 50,948 434.49 
Havildar Group X 6,834 58,782 40.17
 Havildar Group Y 61,508 49,639 305.32
 Family Pensioners (FP) 
 FP of Major with 20 years' Service 1,791 2,37,327 42.50 
FP of Major with 21 years' Service 512 1,89,862 9.71
 FP of Major with 22 years' Service 128 7,11,981 9.11 
FP of Major with 23 years' Service 77 6,83,502 5.25
 FP of Major with 24 years' Service 51 6,55,023 3.35
 FP of Lt Col with 20 years' Service 1,873 4,10,880 76.96
 FP of Lt Col with 21 years' Service 624 3,42,400 21.38 
FP of Lt Col with 22 years' Service 312 2,73,920 8.55
 FP of Lt Col with 23 years' Service 156 2,05,440 3.21 
FP of Lt Col with 24 years' Service 94 1,36,960 1.28 
FP of Lt Col with 25 years' Service 62 68,480 0.43 
FP of Col with 25 years' Service 481 72,469 3.48 
FP of Sepoy Group X 11,637 95,319 110.92
 FP of Sepoy Group Y 1,04,731 78,915 826.48 FP of Naik Group X 3,325 44,355 14.75
 FP of Naik Group Y 29,923 30,569 91.47
 FP of Havildar Group X 1,662 35,269 5.86 
FP of Havildar Group Y 14,962 29,783 44.56 Total Financial Effect of Arrears to all Beneficiaries of Abolition of 33 yr rule 7,390.87 16. 
 If my assumptions are correct and number of beneficiaries are close to my figures then the financial effect of implementing the decision of Min of PPP & G letter is Rs 7390.87 Croes. This huge financial outgo may be one of the factors which is forcing the Govt of India to delay in issuing this letter. I will not be surprised if the letter is issued either to pay arrears in instalments like in OROP or in one go in financial year 2017-18. I kept the calculations as simple as possible. I have not included AMC, AD Corps , RVC and MNS Officers for which you firstly need data and also lot of patience. I have given reasoning and rationale for every assumption I made. As I said you may not agree with my assumptions. Without some assumptions you will not the beneficiaries.

 17. You will initially find my calculations a bit intimidating. But I tried to make it as simple as I can. Please find mistakes in that and do tell me where I have gone wrong. I hope all PSAs atleast now take efforts to computerise their data so that they can work out financial effect whenever such arrears are to be paid which can be done in a jiffy with all best soft wares available with them. This is only possible if they take time to work out pensioners in any month based on rank, length of service, group (X or Y), disabled soldiers, War injured & Discharged soldiers, War Injured & Invalided soldiers, Ordinary Family Pensioners, Special Family Pensioners, Liberalised Family Pensines, Enhanced Rate of OFP, dependent pensioners, Special pensioners, Reservist pensioners etc. 

 18. You can guess how much time I might have taken to make the MS Excel worksheet. If I can do it, then I do not understand why PSAs with all their best softwares do not have basic data of their pensioners. I wonder how are they projecting requirement of funds for pensions to Min of Def during budget preparations for next financial year when they know every year about 50,000 including about 2000 Officers retire? 
 warm regards,
 Brig CS Vidyasagar (Rtd) 
94931 91380
 T SEWA - 140

Blog Archive

Disclaimer

The contents posted on these Web Site are personal reflections of the Viewers and do not reflect the views of the "Indian Military Veterans- Web" Team. Neither the "Indian Military Veterans -Web" nor the individual authors of any material on these Web accept responsibility for any loss or damage caused (including through negligence), which anyone may directly or indirectly suffer arising out of use of or reliance on information contained in or accessed through these Web.
This is not an official Web site. This forum is run by team of ex- Indian Army, Veterans for social networking of Indian Defence Veterans. It is not affiliated to or officially recognized by the MoD or the AHQ, or Government/ State.
The Indian Military Veterans Forum will endeavor to edit/ delete any material which is considered offensive, undesirable and or impinging on national security. The WebTeam is very conscious of potentially questionable content. However, where a content is posted and between posting and removal from the Web in such cases, the act does not reflect either the condoning or endorsing of said material by the Team.
Web Moderator: Capt KS Ramaswamy (Retd)

Useful links for Veterans

Resources