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Thursday, 6 October 2016

7th Central Pay Commission notification for defence pensioners issued

7th Central Pay Commission notification for defence pensioners issued:
Some Good News,
Some Bad News-
good on OROP fitment, very bad for rates of disability pension The Ministry of Defence has today issued the notification for grant of pensionary awards based on the recommendations of the 7th Central Pay Commission. The same can be downloaded and accessed by clicking here. While there is good news for regular pensioners in the sense that the Government has decided to grant a fitment of 2.57 on the pension drawn by pensioners as on 31 Dec 2015, which includes 'One Rank One Pension' (OROP) pension drawn on the said date, the notification very regressively has reduced the amount of disability benefits admissible to disability pensioners. They have relegated the rates to the ‘slab system’ as was prevalent prior to the 6th Central Pay Commission thereby placing defence disability pensioners at a sharp disadvantage as compared to civil disability pensioners. My analysis on each entry in the notification:
1. Revision of Pension of pre-7th CPC retirees: A good move. Both options accepted. The first option of notional pension based on fitment as per service in the pay level in which the person had retired has been accepted subject to feasibility study. The second option of multiplication fitment of 2.57 of the pension as on 31 Dec 2015 has been implemented with immediate effect. This translates into OROP X 2.57. One must congratulate the Defence Services Headquarters, especially the Adjutant General of the Army, for ensuring the judicious implementation of this aspect. This also puts an end to the needless rumour-mongering that OROP shall not be configured with the new pay commission modalities.

2. No comments required.
3. No comments required.

4. Pre-2006 Honorary Naib Subedars: The stated position of the 7th CPC that this ‘closed matter’ may not be reopened has been accepted by the Government. This is clearly not in order. It may be recalled that while post-2006 retiree Honorary Naib Subedars were paid the pension of a Regular Naib Subedar, the same was refused to pre-2006 retirees. This statement of the 7th CPC and its acceptance is legally not in order since there already is in force judicial dicta, upheld till the Supreme Court, providing that pensions of pre-2006 Honorary Naib Subedars are also to be calculated based upon the pay of a regular Naib Subedar. The non-acceptance of this issue means that litigation on the subject shall continue since the anomaly has not been addressed.

5. No comments required.

6. Pension of Territorial Army personnel: This issue has also been addressed by way of judicial verdicts and should have been resolved by the 7th CPC.

7. No comments required.

8. Disability pension rates: This is the single most condemnable recommendation by the 7th CPC which has strangely been accepted by the Government. Frankly, I never thought that this regressive recommendation would ever be accepted. While recommending this aspect, the 7th CPC had made unfounded and uncharitable remarks against disabled soldiers by casting aspersions on those who have incurred disabilities while in service. I had discussed the issue in detail earlier on this blog post dated 21 Nov 2015. While the heading of this entry is “Enhancement in rate of disability pension”, it has actually resulted in a massive decrease resulting in a payout even lower than 6th CPC rates. The 6th CPC had removed an anomaly wherein disability pension was being earlier calculated based on percentage of pay for civilians but on slabs for defence personnel. This (the slab system) was leading to an enormous discrimination between civilians and defence personnel except at lower ranks where defence personnel were getting a slightly better deal. The 6th CPC hence equated civilians and defence personnel after which in both cases the disability pension was directed to be calculated on percentage basis (30% of emoluments for 100% disability). A protection clause was further introduced so that the lower ranks did not face any disadvantage due to the percentage system. All anomalies were therefore addressed for all ranks and all sections of employees. The 7th CPC, based on totally vague and unsubstantiated grounds, which should have been actually expunged from the report itself, recommended the reversion to the slab system. This is totally uncalled for and should be strongly contested by the Defence Services HQ by requesting the Raksha Mantri to immediately review these orders. The arbitrariness of this decision becomes evident from the following chart: (100% Disability) Rank Rates under the 6th CPC as on 31 Dec 2015 Rates applicable after the 7th CPC as on 01 Jan 2016 Lt Gen Rs 52,560 Rs 27,000 Head of Central Armed Police Force Rs 52,560 Rs 67,500

9. Broad-banding of disability pension: The Government has accepted broad-banding of disability pension for cases other than invalidation, that is, all cases irrespective of manner of exit. But the catch is that this has only been made applicable from 01 Jan 2016 whereas the anomaly arose from 01 Jan 1996 which the Supreme Court adjudicated. Hence, regrettably there would be no change or reduction in litigation for claims of broad-banding from 01 Jan 1996 till 31 Dec 2015 as mandated by Supreme Court orders. Practically this helps only those who retire on or after 01 Jan 2016 while for the rest the legal position for claiming benefits remains the same.

10. Enhancement of old age pension for disability and war injury pensioners: The strangest part of this entry is the fact that the Defence Services had indeed asked for this, and the commission actually rejected it and the Ministry of Defence has accepted that rejection. I say it is strange because the Government had already clarified way back in 2010 that additional old age pension very much applies to disability and war injury pensioners. Hence the Defence Services HQ had demanded and the 7th CPC and the Ministry of Defence rejected something that stood granted and clarified way back in 2010 by the Government which becomes clear from this letter issued in 2010 which can be accessed by clicking here. This single instance should be an indicator enough of the expertise and institutional memory available at various echelons of our systems. Unfortunate, to say the least!

11. Disability Pension to “Neither Attributable to, Nor Aggravated by Military Service” Cases: The recommendation of the 7th CPC is redundant in this aspect since the Supreme Court and various High Courts have already ruled that in case a person is fit at the time of enrollment, then any disability arising during service is deemed to have a connection with service thereby entitling a him/her to disability pension.

12. No comments required.

13. No comments required.

14. No comments required.

Posted by Navdeep / Maj Navdeep Singh

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

Revision of Post 2016 pension cases

Indian Military Veterans

Revision of Post 2016 pension cases  CPAO Orders 04/10/2016

Please click here for more details

7th Pay Commission: Fatter Allowances To Be Implemented From August 2016

Indian Military Veterans

7th Pay Commission: Fatter Allowances To Be Implemented From August 2016

New Delhi: “Fatter allowances are likely to be implemented with effect from August 1, 2016,” sources in Finance Ministry familiar with the matter said today morning asking not be named.
The committee on allowances is ready to submit its report even two months in advance, when the Finance minister Arun Jaitley calls up after his foreign visits.
The committee on allowances is ready to submit its report even two months in advance, when the Finance Minister Arun Jaitley calls up after his foreign visits.
“The arrears of hike in basic pay is usually only paid. No arrears for allowances is paid, as per usual practice, the allowances is paid from the date of starting payment of salaries on the recommendation of the new pay commission, the 7th Pay Commission recommendations has been started from August. Hence the government will implement higher allowance from August 2016 and the government is considering this angle,” the sources said.
The government has paid its employees arrears arising from implementation of the 7th Pay Commission recommendations in one go in August salaries. The basic pay hike has been made effective from January 1, 2016.
The new allowances for the central government employees has not been paid as the government had set up a ‘Committee on Allowances’ under the chairmanship Finance Secretary on July 22 for examination of the recommendations of 7th Pay Commission on allowances other than dearness allowance and asked to submit its report with in four months because the pay commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances.
“The two meetings of the committee were held on August 4 and September 1 and the committee has finalised the report. The committee on allowances is ready to submit its report even two months in advance, when the Finance Minister Arun Jaitley calls up after his foreign visits, the committee will submit its report,” the sources assured.
“The FM is likely to approve the proposal of committee on allowances which will stick to the 7th Pay Commission’s recommendations on allowances like glue and the higher allowances will be implemented with prospective effect from August 2016,” the sources confirmed.
However, the central government employees unions demanded for implementation of the allowances with retrospective effect from January 2016.
The hike in allowances is likely to happen by October 31, the sources told The Sen Times.
TST

DL-33 ON MGP BASIS ISSUED FOR PBOR ON RANK & GROUP WISE

METHOD OF CALCULATION

1)In case of JCOs & ORs the figures shown in three Circulars ie 547, 430 and 501 are important Data to be taken in to account for arrears calculation.
There will thus be three differences payable corresponding to periods as under :-

(A) Difference payable between MPinPB and figures in 547 from 01 Jan 2006 to 30 June 2009.

(B) Difference payable between MPinPB and figures of circulat 430 from 01 Jul 2009 to 23 Sep 2012.

(C) Difference payable between MPinPB and figures of Circular 501 from 24 Sep 2012 to 30 Jun 2014.

2). Note down these figures where ever they are less than the MPinPB. However in case they are higher than the MPinPB these are not to be taken into account and the difference be taken as Zero.

3). Multiply the above differences in A,B,C with Multiplication factors as under to get the arrears payable for the period with applicable DA:-
(a) 01 Jan 2006 to 30 Jun 2009 = 46.02. (b) 01 Jul 2009 to 23 Sep 2012. = 57.62 (c) 24 Sep 2012 to 30 Jun 2014. = 39.76

4). The sum total of a+b+c will be your likely Arrears.

Who IS THE REAL CULPRIT

रत्नदीपसिहं‎ to SivasankarVidyasagar September 10 at 11:25pm · Pulwama ·

Anyone from elite class ( Defence Officers) may clarify as they are abusing Babus and Netas for wrong doings everywhere like in OROP ,PAY, PROMTION Etc.

1. Who proposed separate MSP for Officers, Nurses and Jawans?

2. Who proposed MSP for Nurses more than a Subedar Major?

3. Who proposed Second Lieutenant rank be scraped but never bothered for Sepoy rank to bscraped ?

4. Who proposed reduction in time scale for Capt, Major and Lt Col and increase in time for Havildar / Sgt/ Petty Officer?.

5. Who proposed that minimum time for JWO in IAF b 19 years in selection and brought Lt Col in Time bar to 13 years. In both cases, min time was 17 for selection grade. Lt Col pay increases on promotion from Major by 32000 to 35,000 in 13 years time bar while for Sgt 13 year time bar 1800 only and for selection grade JWO it increase by 3800 . DA @ 119 % Ref.

6. Who proposed that promotion from Sgt and above will be based on ACR / Merit and for Officer 4 Promotion Time bar?

7. Who Brought Lt Col to pay band 4 and Not brought Havildar to PB 2 . As per 6 CPC report, PB 4 was given to Maj Gen and above.

8. Who made policy to Kick more than 70 % Sepoys after 17 years of Army service without single promotion and keep Officers in service up to 55 yrs ?.

9. Who justified that your car will become scrap within 4 years and you be allowed to buy again through CSD but a jawans car will not get a scratch for life time.

10. I can list many more but I hope the above mentioned points are enough to tell you that stop fooling us on the name of Babus. I'm sure 90% Officers sitting in AC Office at HQs are real culprits behind all the discrimination and injustice for above said points.

Share if U agree.

OROP – Veterans to get Full Pension as Service Limit goes.

After years of dithering, the Centre has finally acted on its promise of One Rank One Pension (OROP).
In a September 30 letter addressed to the Chiefs of Army, Navy and Air Force, the Ministry of Personnel informed them about the notification on pension benefits as recommended by the 7th Central Pay Commission (CPC).
The three services had earlier decided not to implement the Seventh CPC award till the Narendra Modi government rectified what they had termed as ‘anomalies.’ Disability pension While the defence personnel had every reason to be pleased with the latest decision on pension awards, there were murmurs of protest over the reluctance of the Centre to re-visit the recommendations on disability pension. Prior to the latest notification, all the ex-servicemen who were re-employed and retired from Central Government Departments (like Central Excise, Customs, Income Tax, Railways, Postal, Telecom, AIR, Doordarshan etc.) were paid pro-rata pension with 33 years’ service required for full pension.
Most of the ex-servicemen re-employed were retiring before completing 33 years. Therefore all these personnel were paid pro-rata pension. However, all that changed after a Supreme Court judgment earlier in the year. The OROP issue became a major bone of contention in 2015 between the defence personnel and the Modi government with the former charging it of backtracking on its 2014 general election manifesto promise. Arrears payment As a result of the notification, OROP stands implemented with effect from December 2015 and beneficiaries would be paid arrears in the next few months.
OiIn short, the revised consolidated pension and family pension of pre-2006 armed forces pensioners shall not be less than 50 and 30 per cent of the minimum in the pay of the rank. An example of how it would translate into reality in the case of a Colonel with 33 years of service shows that the pension would be Rs. 92,854 per month. Arrears from January to June would be Rs. 69,370 per month and from July to October Rs. 35,371 and total arrears would be Rs. 104741.

Source: The Hindu

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