Following proposals apropos ESM were placed for consideration of the 7th Central Pay Commission (and the Commission's recommendations - please see pages 397 to 419 of Report) : -
1. As pension proposals for Ex-Services personnel depend on the disparity in life time earnings, vis-à-vis civilian counterparts the following is proposed: -
1.1. Retiring/Service Pension
1.1.1. Increase in Retirement Pension
18.104.22.168. Officers. As applicable to Civilian Officers
22.214.171.124. JCOs/OR. The Service Pension be enhanced to 75% of last drawn reckonable emoluments or alternatively a Compulsory Early Retirement Compensation Package or lump sum amount equivalent to three months of last drawn reckonable emoluments, with Dearness Allowance, for number of years equal to 60 years of age minus actual age of retirement, be provided to JCOs/OR, in addition to the regular pension.
126.96.36.199. Minimum Pension. The existing minimum pension of Rs 3500 /- pm be revised to 75% of minimum Reckonable Emoluments of Sepoy.
2. Family Pension
2.1. Ordinary Family Pension. The family pension should be enhanced to 40% of the last drawn reckonable emoluments.
2.2. Enhanced Ordinary Family Pension. The Pension scheme should be made admissible for 10 years after death of the individual, both in harness as well as after retirement. In addition, the existing cap of minimum service of seven years for being eligible for this pension be removed.
2.3. Special Family Pension. Special Family Pension be enhanced to 80% of last drawn reckonable emoluments. No restrictions to be imposed in terms of minimum service rendered.
2.4. Liberalised Family Pension. No change in existing provision.
2.5. Additional Benefits for Widows of Defence Forces Personnel. Widows continue being paid the War Injury / Disability Pension, in addition to the Family Pension, and the family be permitted to commute the War Injury element.
2.6. Minimum Family Pension. The existing minimum Family Pension of Rs 3500 /- pm be revised to 40% of minimum Reckonable Emoluments of Sepoy.
3. Disability/ Invalid Pension/ War Injury Pension
3.1. The existing system for grant of disability pension in the Defence Forces be brought in line with civil disability pension system.
3.2. Invalid Pension/Gratuity. All cases of invalidment due to disability neither attributable nor aggravated (NANA) by service, be awarded Disability Pension.
3.3 Disability Pension. Disability Pension be made admissible to personnel on retirement as well as on invalidment as under:-
3.3.1. Service Element. Equal to Retiring/Service Pension.
3.3.2. Disability Element. 50% of the last drawn Reckonable Emoluments for 100% disability and reduced pro-rata.
3.4. War Injury Pension.
3.4.1. Service Element. As existing.
3.4.2. War Injury Element.
188.8.131.52. For Cases Leading to Invalidation. No change.
184.108.40.206 For Cases Where Individual is Retained. It should be enhanced to 80% of last drawn reckonable emoluments for 100% disability and reduced pro-rata.
3.5. Disability Pension/War Injury Pension to Pre-2006 Retirees.MoD provision related to admissibility of disability pension to post 01 Jan 2006 premature retirees should be extended to pre 01 Jan 06 retirees as well.
3.6. Provisions regarding Ex-gratia (lump sum) compensation to invalided out Defence personnel be delinked from attributability factor, restriction in terms of minimum disability and age.
3.7. Disability Element be restored after 12 years of award of one time compensation.
3.8. Existing broad-banding be done away with.
3.9. The existing bar regarding minimum disability percentage be removed.
3.10. There should be no restriction in terms of minimum qualifying service to be eligible to earn Disability Pension.
3.11. Clauses of additional old age pension be made applicable to both the elements of disability/war injury pension.
4. Retiring/Service Gratuity
4.1. It is proposed to have full weightages in the form of number of increments equal to years of weightage restored/enhanced. Existing clause of minimum qualifying service for Death Gratuity be waived off.
4.2. The laid down upper ceiling of Rs 10 lakh be removed and Retirement Gratuity be extended to SSC Officers in addition to the Terminal Gratuity.
5. Commutation. Commutation table applicable prior to 6th CPC be restored.
6. Pension of Grade of Naib Subedar to Pre 2006 Honorary Naib Subedar. The provision of the Government letter No 1(8)/2008-D(Pen/Pol) dated 12 Jun 2009 be extended to pre 2006 retired Havildars who have been granted Honorary rank of Naib Subedar post retirement.
7. Grant of Second Pension to Defence Security Corps (DSC) Personnel on Completion of 10 Years of Qualifying Service. Reduce qualifying service for second pension from 15 to 10 years, for DSC Personnel with a view to remove the discriminatory application of principle of second pension and bring DSC personnel at par with all second employment holders in other organisations.
8. Removal of 5% Depression in Pension of TA Personnel. Depression in pension for qualifying service between 15 and 20 years be removed and complete earned pension be made admissible to TA personnel.
9. Old Age Pension. Existing old age pension scheme be modified and made applicable to the Defence employees as under:-
9.1. Officers. As applicable to Central Group ‘A’ Officers.
9.2. JCOs/OR. Existing provisions be amended and made payable to JCOs/OR on attaining 70 years of age as proposed.
10. Enhancement in the Rates of Ex-Gratia Awards Admissible to Next Of Kin. The scope of award of lump sum compensation be extended to all types of deaths in service, conditions of award of Ex-gratia be amended and existing rates be increased four times.
11. Fixed Medical Allowance (FMA). FMA be granted as for civilian Central Government employees, to pensioners/family pensioners, who are not covered under ECHS.
12. Enhancement in Rates of Constant Attendant Allowance. Constant Attendant Allowance be increased to minimum wages or min total pay + Dearness Allowance in PB-1 as applicable to Civilian Gp ‘C’ employees, whichever is higher.
13. Casualty Pensionary Awards For Cadets. It is proposed that:-
13.1. In Case of Invalidment on Medical Ground.
13.1.1. For 100% disability, Monthly Ex-gratia Disability award be equal to the stipend paid to Cadets. The existing restriction of minimum disability percentage of 20% be removed and Disability award be made commutable.
13.1.2. Monthly ex-gratia amount be enhanced to 50% of stipend.
13.1.3. Constant Attendant Allowance be enhanced to Government rates of minimum wages or min total pay plus Dearness Allowance in PB-1 as applicable to Gp ‘C’ employees, whichever is higher, for 100% disability.
13.2. In Case of Death. Ex-gratia amount for casualty / death in training be equal to those applicable to a serving soldier.