Saturday, 21 September 2013

CGDA Practising Economy with the Truth



PRACTISING ECONOMY WITH THE TRUTH
(Paragraph Numbers from Opinion of Ld Attorney General signed on 3.9.13 &  Observations in alphabets i.e. (A) by author)

Query (II)      Whether the minimum pay for each rank given in Para 6 (a) (ii) of SAFI 1/S/87, needs to be re-fixed/changed?

32.       Para 6 (a) (ii) of the Instructions dated 26.05.1987 refers to officers in the ranks of Captain, Major, Lt Colonel, Colonel and Brigadier and indicates minimum pay in the integrated scale against each rank.

33.       According to the armed forces, the minimum pay for each rank needs to be revised after taking into account the non-deduction of rank pay in terms of the Court’s order.

34.       The CGDA has indicated that the minimum pay for each rank has not been arrived at after deduction of rank pay. It was in fact a recommendation of 4th CPC. Minimum pay has not been depressed due to deduction of rank pay. Further, there is no court order directing change in minimum pay for the rank.    

35.       The Ministry of Finance has indicated its agreement with views of CGDA.

36.       The issue of revision of pay scale did not arise and was not decided in Major Dhanapalan’s case. The issue of the minimum pay scale does not pertain to the real issue dealt with above. When the officer’s pay is revised I implementation of the Court’s order, the minimum of the pay scale does not come in the way, because if the pay has to be fixed at a stage next higher than the minimum, the same can be done. There is no need to revise the minimum, if as stated by the CGDA, it has been fixed on another basis.    

Economy with the Truth by CGDA – No. 1

(A)       Neither Chapter 28 (even in Para 28.113 and illustration thereof) nor Chapter 30 of the 4th CPC Report or the Govt of India, Min of Defence Resolution 9E mention the deduction of Rank Pay.

(B)       Confirmation is provided by MoD in Note 8 of File No. 34(6)/2012-D (Pay/Services) dated 12 Sep 12 and reproduced below: -

4.         The Service Instructions issued in this regard were based on the GoI Resolutions and the portion there from relevant to the instant case read as under: -
       
“6. Fixation of initial pay in the revised scales will be regulated as follows: -
     
a (i)     An amount representing 20 percent of the basic pay in the existing scale shall be added to the existing emoluments of the officer.

(ii) After the existing emoluments have been so increased, an amount equivalent to the rank pay, if any appropriate to the rank held by the officer on 01 January, 1986 as the rates prescribed in para 3 (a) (ii) above, will be deducted. Thereafter, the officer’s pay will be fixed in the revised scale at the stage next above the amount thus computed.”

(C)               So is the impugned SAI No.1/S/87 the “another basis?” But the SAI is in contravention of the 4th CPC Report/Recommendations and Resolution 9E as determined by the Hon'ble Courts!

Query (III)    Whether the Basic Pay ceiling of integrated Scale in IV CPC for officers up to Brig/equivalent, which is Rs 5100/- also needs to be modified to give effect to the Court orders?  


37.       The differing views on this issue are as under:

            ISSUE 3: REVISING THE TOP OF INTEGRATED SCALE.

Armed Forces Views:  The top of the integrated scale as recommended by Pay Commission was Rs 5000. However the issue was further examined by the Government and it was decided to change the integrated scale to Rs 2300-100-3900-150-4200-EB-5100. The services now contend that the top of the scale of Rs 5100 should also be increased to remove the effects of deduction of rank pay. They have drawn equivalence  between Brig (on armed forces side) and DIG (Police) on civilian side to draw pay comparison. It is submitted that while DIG (Police) got Rs 6150 basic pay, the Brigadier’s pay in the integrated scale ws Rs 4950 with an additional amount of rank pay of Rs 1200.

The services point out that now with no deduction of rank pay, senior Cols and Brig would not be able to get full pay fixation benefit (20% of emoluments) as in their case revised emoluments go beyond the top of integrated scale from day one. The Services have proposed to adjust the top of the scale suitably to relate the original span of the integrated scale of 29 years as recommended by Pay Commission. Grant of stagnation increments or personal pay to the concerned officers have not been favoured by the services as they are not considered for purpose of determining corresponding replacement scale in subsequent CPCs.  

Amendment Sought by Armed Forces.         The Armed Forces have asked that the anomaly can be resolved by enhancing the upper limit of Rs 5100 in the integrated pay scale of IVth CPC, which has been arrived at after making allowance for the Rank, to ensure effective implementation of the Govt orders. 


CGDA’s views.             CGDA has pointed out that in order to benefit such officers an element of personal pay was projected in the instant case to MoF. But it was not agreed to by Ministry of Finance. In view of para 6 (o) of SAI 1/S/87 (Annexure XX) which states as under: -  

‘If the amount so computed as at sub-para a (ii) above is more than the maximum of the revised scale, the pay will be fixed at the maximum of the revised scale.’

The relevant Service Instructions provide for maximum three stagnation increments upto the rank of Brig, after completion of every two years qualifying service once the officer reaches the maximum of the scale. However, it is ensured that Basic Pay plus Dearness Allowance plus stagnation increments do not exceed the maximum of Basic Pay plus rank pay of the next higher rank i.e. Major General – Rs 5900-200-6700. 

Further, there is no court order directing changing of the integrated pay scale. In case the demand is met, the pay scale of next senior officer s will get burst, disturbing the horizontal and vertical relativity pay scales on Services side, paramilitary forces and civilian side also.

MoF views.      This Ministry agrees with the view of the office of CGDA on this issue as contained in their note No. AT/1/1483/RB/X (PC)/V dated 23.5.2013 (Annexure XVII).  

However, it has been mentioned in the said Note of the CGDA that in cases where emoluments (revised pay) computed without deducting rank pay crosses the maximum of the revised integrated scale, the Ministry of Defence has proposed that the difference by which the revised pay of the integrated pay scale may be protected by way of Personal Pay to be absorbed in stagnation increments or pay on promotion, but the same was not agreed to by the Ministry of Finance. The Ministry of Finance did not agree to the same for the following reasons: -  

(i)         At the outset, this issue was neither prayed for by Major Dhanapalan in his petition nor was it considered by the Hon’ble Kerala High Court nor is it covered in the order passed by the Hon’ble Court dt 5.10.1998.

(ii)        Para 6 (o) of Section II of the Special Army Instructions dated 26.5.1987 (Annexure XX) already provided that if the amount so computed as at pata 6 (a) (ii) is more than the maximum of the revised scale, the pay shall be fixed at the maximum of the revised scale. In other words, if the initial pay fixed in the revised integrated scale exceeds the maximum thereof, pay cannot be more than the said maximum. Thus now that the …. Pertaining to deduction of rank pay part at para 6 (a) (ii) from existing emoluments (or revised emoluments) as on 1.1.1986 has been removed, the amount computed without deduction for the fixation of initial pay/fitment in the revised pay scale as on 1.1.1986 also cannot exceed the maximum of the revised integrated scale effective from 1.1.1986 as the principle laid down in said para 6 (c) is not part of judicial pronouncement based on which the order of 27.12.2102 has been issued.        

Thus the demand of Service Headquarters does not flow from the judicial pronouncement in this case. This being so, its implementation as part of the order dt 27.12.2012 does not arise.  

Apart from the above, the proposal of the Ministry of Defence for Personal Pay, in such a case is not justified on merits also as brought out below: -

(i)         A person drawing pay in a particular scale of pay attached to the post held by him, cannot draw pay in excess of the maximum of the connected scale of pay. This is the concept of a Specific pay scale. Of course since the rank pay is a separate element, the total pay (Pay in the integrated scale + rank pay) can very well exceed the maximum of the integrated pay scale and that is exactly what is happening here. It is being …. that Rank Pay is a separate element in addition in the pay in the integrated scale and as such Pay + rank pay is not restricted to the maximum of the integrated scale. It is only the pay in the integrated scale that is not to exceed the maximum thereof.      

(ii)        A similar provision exists in proviso (b) to Rule 7 (1) (A) of the CCS (RP) Rules 1968 relating to fixation/fitment of initial pay of civilian Government servants in the revised pay scales as on 1.1.1986. A copy of the relevant extract from the said Rules is at Annexure XXII. Therefore, no special dispensation can be allowed in this case now that the pay to be fixed in the integrated pay scale as on and  w.e.f 1.1.1986 exceeds the maximum of the integrated scale.

(iii)       In case a person stagnates at the maximum of the scale, stagnation increments in the concerned pay scale as preapproved Rules are applicable. Office of CGDA has confirmed that stagnation increments are admissible to Armed Forces officers as per orders of 11.9.1987.    

(iv)       In fact the phenomenon of initial pay fixed in a revised pay scale at the maximum from the very date of implementation of the revised pay scales has been specially taken note of by the 6th CPC. The 6th Central Pay Commission noted that many of the pay scales recommended by the 5th Central Pay Commission got “burst” at the time initial fixation where revised pay of some of the employees became higher than the maximum of the revised pay scales and these employees, therefore, had started to stagnate right from the time of implementation of the 5th Central Pay Commission pay scales. It is for this reason that the 6th Central Pay Commission has recommended the concept of running pay band instead of specific pay scales. The Commission noted that since the individual pay scale has a limited span, it often leads to stagnation. The Commission, therefore, recommended the concept of running pay bands to address these issues. In this connection, the recommendations of the Pay Commission contained in para 1.2.7, 1.2.8. and 2.2.4 are collectively placed at Annexure XXIII.     

(v)        Thus the situation as it existed upto 1.1.2006 was that there were cases of the employees reaching at the maximum of the individual pay scale and this did not by itself mean allowing them to draw pay more than the maximum of the pay scale by way of Personal pay. They were only allowed stagnation increments and that is admissible in case of Armed Forces personnel also. Therefore, any benefit in the form of personal pay is the instant matter is against the normal and general policy.

(vi)       Also, the initial pay fixed in this as on 1.1.1986, which is of course w.e.f 1.1.1986 after the order dated 27.12.2012 in implementation of the judicial pronouncement in this case, does not fall below the initial pay earlier fixed in the integrated pay scale before issue of the order dt 27.12.2012 and, therefore, this is no actual loss in the initial pay and hence, there is no basis for grant of personal pay in such cases.”     

38.       Para 6 (a) (c) of the Instructions dated 26.05.197 provides as follows: -

If the amount so computed as at sub-para (ii) above is more than the maximum of the revised scale, the pay will be fixed at the maximum of the revised scale.” 

39.       It is clear from the above that ceiling on pay scales rises out of Para 6 (a) (c), which did not arise nor was considered in Major Dhanapalan’s case. 

40.       The only issue decided by the Kerala High Court and consequently the Supreme Court is whether rank pay is to be deducted at the time of fixing pay in the integrated scale in terms of Para 6 (a) (ii). Ceiling fixed under Para 6 (c) is not subject matter of these judgments. 

Economy with the Truth by CGDA – No. 2

(A)      This is what the 6th CPC has to state in establishing the equivalence of DIG to Brigadier.

Chapter 2.3 of Sixth Central Pay Commission Report


Pay scales of Defence Forces Personnel

Pages 72 to 75

(Please note from the tables,  wherever there is Rank Pay an amount equal to rank pay has been deducted for officers in ranks from Captain to Brigadiers)

Introduction 2.3.1. The first two Pay Commissions did not consider the pay scales, allowances and other service conditions of Defence Forces personnel. At that time, the structure of emoluments of the Defence Forces personnel was looked into by the departmental committees which included the representatives of the three services.

Post-war Pay Committee

2.3.2. After the First Pay Commission, a Post War Pay Committee was constituted for the Defence Forces personnel. Their recommendations were implemented from 1/7/1947. The
Committee simplified the pay structure of the Defence Forces personnel considerably and abolished a number of allowances which had either relevance only to war conditions or which could be merged with the pay. The Committee established a broad relativity of officers of Defence Forces with the officers of Class-I Central Services and the Indian Police Service (IPS). Insofar as Personnel Below Officer Ranks (PBORs) were concerned, the fully trained infantry solider with 3 years service was equated with a semi-skilled worker. Pension related issues of the Defence Forces were considered subsequently by the Defence Forces Pension Revision Committee constituted in 1949 which gave its report in 1950.

Raghuramaiya Committee

2.3.3. Subsequent to the report of the Second Pay Commission, the consequential changes for Defence Forces personnel were effected as per the recommendations made by the Raghuramaiah Committee that gave its report in 1960. The revisions made by this Committee were consequential in nature and broadly followed the revisions made by the Second CPC on the civil side. The Committee did not modify any of the principles followed by the Post War Pay Committee. The Raghuramaiya Committee specifically mentioned that the accepted parallel between defence service officers and Class-I services of the Central Government, particularly the Indian Police Service should be continued.

Subsequent developments

2.3.4. Subsequently, the parity of officers’ pay scale in Defence Forces vis-à-vis that of the IPS got cemented further and modifications in the IPS scales became a trigger for corresponding changes in the analogous grade in the Defence Forces.
Chapter 2.3
Third Pay Commission

2.3.5. The Third Pay Commission was the first Commission whose terms of reference included examination of the structure of emoluments, the retirement benefits and terms and conditions of the Defence Forces personnel. The Commission noted that the relativity of the officers in Defence Forces vis-à-vis IPS was only a working method of devising scales of pay for the service officers* which did not mean that the functional role of the two services were similar (* emphasis added by author).
The Commission, however, qualified this statement by mentioning that the job profile of IPS officers was the closest civilian analogue vis-à-vis infantry officers and that a working relationship did exist between the two organizations. The Commission also specifically noted that the pay structure of the Indian Administrative Service with its long pay scales was particularly unsuitable for service officers.*

Disturbance Allowance and the edge in Defence Forces pay scales

2.3.6. The Defence Forces had demanded a higher rate of Special Disturbance Allowance from the Third Pay Commission. The Commission, however, noted that the Disturbance Allowance was granted in 1950 as a temporary measure to improve the earnings of service officers without interfering with the pay scales introduced as per the recommendations of the Post War Pay Committee which had brought down the pay scales of many Indian Commissioned Officers (ICOs). At such time, the grant of Disturbance Allowance offered some relief to them.* The Third Pay Commission noted that the extent of turbulence was off-set by the special facilities given to Defence Forces personnel and no justification existed for continuance of the Special Disturbance Allowance as a separate entity. The Commission, however, did not recommend total abolition of this allowance as it had existed for a long time and instead merged this allowance with the pay scales of Defence Forces officers. Hence, the Third CPC pay scales of Defence Forces officers also contained an element of Special Disturbance Allowance which had hitherto been given as a separate allowance. On account of this fact, post-Third CPC, the pay scales of Defence Forces officers had a slight edge vis-à-vis the analogous posts in the civilian side.

Fourth CPC

2.3.7. The Fourth CPC, while devising the revised pay scales of Defence Forces officers took into note the proposal seeking running pay bands put forth by the Defence Forces. The Defence Forces had desired a running pay band so as to ensure a smooth and improved career progression which otherwise was not possible especially as any large scale cadre review in the Defence Forces would have created unacceptable aberrations in their hierarchical structure.

The Fourth Pay Commission, accordingly, recommended an integrated pay scale for all officers upto the rank of Brigadier and equivalent in three services and separately gave a rank pay ranging from Rs.200 to Rs.1200 p.m. for posts from Captain/equivalent to Brigadier/equivalent. During such time, the Defence Forces had desired inclusion of the officers in the rank of Major General also in the proposed integrated pay scale. This was, however, not found acceptable by the Fourth CPC who, therefore, placed Major Generals
in the pay scale of Rs.5900-6700 being the senior administrative pay scale (SAG) for civilians.

Fifth CPC

 2.3.8. The Fifth CPC took note of the fact that the Special Disturbance Allowance had been incorporated by the Third CPC in the pay scales of Defence Forces officers. The Commission, accordingly, recommended a similar edge in the starting pay of Lieutenant (the rank of 2nd Lieutenant having been recommended to be abolished by the Commission) who was, therefore, given the starting pay of Rs.8250 as against Rs.8000 recommended for a civilian Group A officer. Before the Fifth CPC, the Defence Forces
had proposed two running pay bands for Defence Forces officers – (i) till the post of Colonel; and (ii) from Brigadier to Lt. General. The Fifth CPC, however, concluded that a separate dispensation for Defence Forces in the form of running pay bands would have repercussions on civilian employees and that the better method would be to provide explicit compensation in regular pay scales. The Commission, accordingly, recommended abolition of integrated pay scales by regular pay scales with progression in pay being provided by the mechanism of ACP Scheme. The Fifth CPC, however, retained the concept of rank pay for officers till the post of Brigadier. The pay scale of Major General/equivalent was recommended as Rs.18400-22400 on par with SAG scale of civilians.

Relativity between Defence Forces and civilian officers established by the earlier Pay Commissions

2.3.9. The relativity existing between pay scales of analogous posts in the Defence Forces and the civilians since the time of Third Central Pay Commission is tabulated as follows:

Third CPC recommendations (in Rs.)

Civilian
Defence Forces*

Grade                                Pay Scale
Grade                      Pay Scale

JTS                                      700-1300
2nd Lieut.                    750-790
Lieut.                             830-950

STS                                   1100-1600
Capt.                          1020-1450
Major                         1350-1750

JAG                                   1200-2000

Lt. Col. (Acting)        1500-1900
Lt. Col. (Subs.)          1700-1900
Lt. Col. (TS)               1800 (Fixed)

NFSG                               2000-2250
Colonel                     1950-75-2175

DIG                                  2250-2500
Brig.                     2200-100-2400

SAG I                               2500-2750
Major General              2500-2750

HAG                                 3000 Fixed
Lt. General                       3000 (Fixed)

Secretary                             3500
Fixed General                    3500 (Fixed)


 Service Chiefs                   4000 (Fixed)


*(The pay scales in Navy were slightly different.)

Fourth CPC recommendations
Civilian
Defence Forces

Grade                          Pay  Scale (Rs.)

Grade                                 Pay Scale (Rs.)

JTS                                       2200-4000
STS                                      3000-4500
JAG                                     3700-5000
NFSG                                 4500-5700
DIG                                      5100-5700
                                             (Revised to
                                             5100-6150)












SAG                                  5900-6700

HAG                                7600 (fixed)

Secretary                        8000 (fixed)

Cab. Secy.                      9000 (fixed)


2nd Lieut. to Brig.                2300-100-4200-
                                                  EB-100-5000
                                                  (Integrated
                                                   pay scale)
                                                (Revised to
                                                  2300-5100)


Rank                       Amount of rank pay
                                               (p.m.)
Capt. & equ. 200
Major & equ. 400
Lt. Col. (Sel. & equ.) 600
Col. & equ. 800
Brig. & equ. 1200


Pay scales for higher levels

Maj. Gen. & equ.           5900-200-6700

Lt. Gen.                          7600 (fixed)

Army Comm.               8000 (fixed)

Service Chiefs              9000 (fixed)

Fifth CPC recommendations

Civilian
Defence Forces

Grade                               Pay Scale (Rs.)

Grade                 Pay Scale        Rank pay
                                   (Rs.)                  (p.m.)

JTS                                     8000-13500

Lieut.                  8250-10050
Capt.                    9600-11400                 400

STS                                     10000-15200
Maj.                     11600-14850              1200

JAG                                    12000-16500
Lt. Col.               13500-17100                1600

NFSG                                 14300-18300
Col.                       15100-17350             2000

DIG                               16400-20000
Brig.                     15350-17600       2400

SAG                                   18400-22400
Maj. Gen.            18400-22400

HAG                                  22400-24500
Lt. Gen. & equ. 22400-24500

Secretary                                26000
(fixed)

Vice Chiefs and Army Comm.
Equivalent                      26000 (fixed)
Cab. Secy.                                 30000
                                                   (fixed)

Service Chiefs               30000 (fixed)

Analysis

 2.3.10. The following facts emerge from the history of the rank structure of officers in the Defence Forces:-

(i) A broad parity has always existed between the pay scales of Defence Forces officers and civilian group A services in general and with IPS in particular.

(ii) Special Disturbance Allowance was given to the Defence Forces officers in 1950 as a temporary measure to improve their earnings without interfering with the pay scales introduced as per the recommendations of the Post War Pay Committee which had brought down the pay scales of many Indian Commissioned Officers (ICOs).

(iii) An edge was provided by the Third CPC in the Defence Forces officer’s pay scales because the Commission had converted the then existing Special Disturbance Allowance into an edge in starting pay vis-à-vis the civilian group A officers.

(iv) The Fourth CPC had continued this edge in devising the running pay band for Defence Forces officers up to the rank of Brigadier and had revised the integrated pay scale taking in account the time taken for promotion to different pay scales. The element of rank pay was carved out of the pay scales so revised after giving the edge vis-à-vis civilian group A officers.

(v) The Fifth CPC maintained this edge even though it reverted from running pay bands to individual pay scales for various officers’ ranks in the Defence Forces.

(vi) The edge in the Defence Forces pay scales for their officers is on account of the Special Disturbance Allowance. Otherwise, the established relativity of the posts of Major General and Brigadier is with SAG and DIG pay scales of civilians/police forces respectively.

(vii) The Defence Forces had sought running pay band upto the post of Major General before the Fourth CPC. The Commission, however, conceded the running pay band only upto the post of Brigadier/equivalent.

(viii) The Fifth CPC had not recommended running pay in Defence Forces on account of the repercussions it would have had on civilian pay scales.

It may be noted that the Govt of India has approved the Report and accepted the Recommendations of the 6th CPC vide Resolution No. 1/1/2008-I C dated 29th August 2008 modifying Pay Bands,  New HAG+ scale, Grade Pay.

(B)       Para 2 of Office Memorandum No.1 /2/86-Estt.( Pay-I) issued by GOVERNMENT OF INDIA MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES & PENSIONS (DEPARTMENT OF PERSONNEL & TRAINING) at New Delhi, dated the 10th April, 1987 and addressed to all Ministries and Department of GoI states as follows: -

2. In supersession of all the various existing orders, the President is pleased to decide that where a Government servant is promoted or appointed to another post carrying duties and responsibilities of greater importance than those attached to the post held by him, the provisions contained in FR. 22-C shall apply without pay limits.

Don’t Colonels and Brigadiers carry execute duties and bear responsibilities of greater importance on promotion/appointment?

Then why the upper (sic) ceiling not being raised?

As my mathematics teacher used to say and write on the blackboard – Q E D. He said it was Quite Easily Done (actually it is Quad Erat Demonstrandum).

  

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