Friday 4 December 2015

Cabinet Secretary Committee Report No. 12: of 17 Aug 2012 - Pay, Pension Anomalies & OROP



[Received on 03 Dec 2015 vide MoD No. 237/RTI/D (P/P)/2014 dated 30 Nov 2015 alongwith CSC No. 9 of 30 Jun 2009]
Typed Copy
REPORT OF THE COMMITTEE ON ISSUES RELATED TO DEFENCE SERVICE PERSONNEL AND EX-SERVICEMEN
BACKGROUND
Vide orders dated 9th July, 2012 and 12th July, 2012, the Prime Minister constituted a Committee headed by the Cabinet Secretary and consisting of Principal Secretary to PM, Defence Secretary, Expenditure Secretary, Secretary (Personnel) and Secretary (Ex-Servicemen’s Welfare) with the purpose of looking into and providing suitable recommendations on the following issues of relevance to Defence Service personnel and ex-servicemen:-
(i) Issues relating to serving defence personnel and consisting of pay fixation anomalies related to Sixth Central Pay Commission:
(a)      Common pay scale for in-service JCOs/ORs,

(b)      Initial pay fixation of Lt. Colonel/Colonel and Brigadier/equivalent,

(c)       Review and enhancement of grade pay,

(d)      Placing of all Lt Generals in HAG+ scale,

(e)       Grant of non-functional upgradation (NFU) to armed forces personnel.

(ii)    Issues relating to ex-servicemen and consisting of pension related anomalies
(a)     One rank one pension (OROP),

(b)     Enhancement of family pension,

(c)     Dual family pension, and

(d)     Family pension to mentally/physically challenged children of armed forces personnel on marriage.

1.                  The Committee was asked to submit its recommendations within one month.
2.                  The Committee held eight meetings to consider the various issues raised. In the first meeting of the Committee, the Chief of Naval Staff and Chairman, Chiefs of Staff Committee presented the various issues raised by the Defence Services. In subsequent meetings, the individual issues raised on pension and pay were discussed. The three Service Chiefs also interacted with the Committee in its fifth meeting on 7th August, 2012. Secretary (Revenue) was co-opted in the Committee and Secretary (Pensions & Pensioners’ Welfare) attended the meetings as a special invitee. The Home Secretary was also invited to the eighth meeting of the Committee.

3.                  At the outset, it would be relevant to mention that the Sixth Pay Commission submitted its Report in March, 2008. Thereafter, Government has been considering various issues raised by the Defence Services on pay and pension related matters and making recommendations thereon. After the submission of the report of the Sixth Pay Commission, Government set up a Committee of Secretaries under the then Cabinet Secretary for processing the Pay Commission’s recommendations after taking into account the views of all stakeholders. Based on the interactions held in the Committee and after factoring in the issues raised by the Defence Forces at that stage, certain improvements were made to the pay structure of the Defence Services and Central Government employees.
4.1.    The improvements made for the Defence Services included increase in the grade pay of middle level officers, increase in the Military Service Pay (MSP) of JCOs/ORs from Rs 1000 p.m. recommended by the Sixth CPC to Rs 2,000 p.m., grant of 3 MACPs to JCOs/ORs after 8, 16, and 24 years of service against 10, 20 and 30 years of service for civilians, etc. Subsequently, in September, 2008, Shri Pranab Mukherjee, the then External Affairs Minister was asked to look into four issues raised by the Defence Forces and make his recommendations regarding them in consultation with the Defence Minister and Finance Minister. These issues were:-
(a)     Higher grade pay for Armed Forces Officers,

(b)     Placement of Lt. Colonel and equivalent in PB-4,

(c)     Re-instatement of pensionary weightages for the JCOs/ORs, and

(d)     Providing HAG+ scale to Lt General and equivalent holding posts of PSOs, DGs, Controllers, etc.

4.2.            Based on the recommendations made by the Pranab Mukherjee Committee, the following modifications were made in the case of Defence Forces personnel:
(a)     Lt. Colonels in their parent services holding combat or ready to combat jobs were placed in Pay Band 4 and given the grade pay of Rs 8000. Lt. Colonels on deputation were to be given this benefit only after return to parent cadre.
(b)     Pensionary weightages for JCOs/ORs were restored.
4.3.            Subsequently, Government decided to place 1/3rd of the Lt. Generals in the HAG+ scale.
4.4             Further, in 2009, the Prime Minister set up another Committee under the then Cabinet Secretary to examine issues related to One Rank One Pension. That Committee made recommendations for bridging the gap in the pension of pre and post 1.1.06 JCO/OR pensioners, for improvement in disability pension and on the classification allowance. That Committee also carved out a separate pay scale for Lt. General/ Additional Secretary/equivalent. Thereafter, Government also agreed to grant a Military Service Pay of Rs 1000 pm to Non-Combatants (Enrolled) of the Indian Air Force who were not granted MSP by the Pay Commission.
5.                  While considering the issues presently raised by the Defence Services, the Committee noted that out of the nine issues raised, the issues of one rank one pension, grant of common pay scales to JCOs/ORs, enhancement of grade pay and placement of Lt. Generals in HAG+ scale have been considered earlier after the Sixth Pay Commission. Further, the issues of enhancement of grade pay and placement of Lt. Generals in HAG+ scale were also considered by the Pranab Mukherjee Committee.
6.                The Committee took up the pension related issues for deliberation first. Accordingly, the recommendations of this Committee on the pension related issues are presented first.
ONE RANK ONE PENSION
7.                  In the representation related to the grant of One Rank One Pension (OROP), the following points have been made:
(i)                    Ex-servicemen have been raising the demand for several years for grant of same pension which is granted to current pensioners with same rank and same length of service, commonly known as OROP. Several Committees/Commissions have improved the pension of ex-servicemen.

(ii)                  Post implementation of the recommendations of the A. V. Singh Committee in 2004, no Commissioned Officer would retire in the rank of Major. Therefore, the small isolated group of retired Majors deserve a one-time dispensation to bridge the gap of about Rs 10,000 p.m. in the pension of the retired officers of the rank of Major and Lt. Colonel.
(iii)                However, the gap between    those who retired upto 31.12.05 and those retiring after 1.1.06 is quite large due to improvements in the pay band. Several ranks have been bunched in the same pay band with a small difference in grade pay. Therefore, ex-servicemen retiring in several ranks get the same pension with a marginal difference due to grade pay.
(iv)                The difference in pension between a Havildar and Nb. Subedar is substantial while in other ranks the difference is marginal. Similarly, for retired officers the difference between various ranks, especially Majors and Lt. Colonel and Major General and Lt. General is substantial.
(v)                   Moreover, the gap between those who retired before 1.1.06 and those retiring with 5 years of service in the revised pay band is substantial.

(vi)                It has separately also been stated that that the pension of the past retirees be determined with reference to notional top of the scale. This pension be subject to pro-rata reduction for qualifying service less than 33 years. In addition, 50% of MSP be added without any pro-rata reduction. The pensioner be given an option to choose between notional top of the scale or 50% of reckonable emoluments.
8.1.           On One Rank One Pension, the demand of the Defence Forces and Ex- Servicemen Associations is that uniform pension be paid to the Defence Forces personnel retiring in the same rank with the same length of service irrespective of their date of retirement and any future enhancement in the rates of pension be automatically passed on to the past pensioners. The Committee was informed that the matter had been considered several times in the past, i.e., by the Estimates Committee (1980-81), a High Level Committee under Shri K. P. Singh Deo, the then MoS for Defence (1984), the Fourth Pay Commission, the High Level Empowered Committee under Shri Sharad Pawar the then Defence Minister (1991), the Fifth Pay Commission, the GoM under Shri Pranab Mukherjee (2006) and the Sixth Pay Commission. The matter was also considered in 2009 when a Committee under the then Cabinet Secretary went into it.
8.2.         While various Committees did not find ‘One Rank One Pension’ feasible, they did recommend improvements in the pensions of ex-servicemen. In order to examine the proposal further, the Committee went into the report of the Committee set up in 2009 in detail. The historical position prior to 2009 in regard to One Rank One Pension has been brought out in that Report. It is, therefore, not considered necessary to repeat the same in this Report. It is, however, noted that the 2009 Committee did not consider it feasible to recommend ‘One Rank One Pension’ for the following reasons:-
(i)                    Various Committees had considered the matter in the past and not found enough justification for grant of ‘One Rank One Pension’
(ii)                  Successive Pay Commissions had addressed the issue of ‘One Rank One Pension’ in the past and had not recommended it. Pay Commissions are expert bodies which look at pay and pension related issues in a holistic manner keeping all considerations in view.
(iii)                Acceptance of the principle of ‘One Rank One Pension’ had substantial financial implications estimated at Rs 8000 - 9000 crore per annum.
(iv)                Revision of pay scales at times is accompanied with revision of educational qualifications/restructuring of cadres/duties attached to the post, etc., the benefit of which need not be passed on to past pensioners.
(v)                  The Supreme Court on the issue of grant of 'One Rank One Pension’ had ruled in the matter of Indian Ex-Services League Vs. UOI AIR 1991 SC 1182 that the claim for ‘One Rank One Pension’ is not tenable. The Apex Court in the decision in K. L. Rathi Vs. UOI 1997 (3) AISLJ 207 held that the claim for same pension for same rank cannot be accepted.

(vi)                 Ministry of Law, which was consulted, had also opined that the same pension for same rank was not an acceptable proposition.
(vii)               The matter was also considered by a Group of Ministers in 2005-06 and this Group did not recommend grant of ‘One Rank One Pension’, although certain improvements in the scheme of modified parity were recommended and accepted by the Government.
8.3.          Like some of the earlier Committees, the 2009 Committee also examined options to further improve the pension of JCOs/ORs. After detailed examination, that Committee felt that the best method to improve the pension of pre-1.1.2006 pensioners was to follow the principle of the GOM award of 2006. In 2006, the GoM which had considered the matter had recommended the following:-
(a)     Calculation of pension of pre 1.1.1996 retirees with reference to maximum of post 1.1.1996 pay scales.
(b)     Increase in weightage for Sepoy, Naik and Havildar ranks for past and future retirees from 5 years to 10, 8 and 6 years, respectively.
8.4.         The 2009 Committee therefore recommended that the Award of GOM of 2006          may be continued in the following manner:-
(a)     By reckoning the pension of all pre 1.1.2006 JCO/OR pensioners with reference to a notional maximum in the post 1.1.2006 revised pay structure corresponding to the maximum of pre-Sixth Pay Commission pay scales as per fitment table of each rank.
(b)     By also continuing with the enhanced weightages awarded by the GOM.
8.5           In addition, taking into account the fact that the trade groups of Defence Services had been rationalized and pay scales modified from 10.10.97, the Committee also recommended that the pension of pre 10.10.97 retirees may be brought on par with post 10.10.97 retirees. As a result of the recommendations made in 2009, the pension of pre 1.1.06 JCOs/ORs was brought nearly on par with post 1.1.06 JCO/OR retirees.
8.6           Recently, in December, 2011, the Rajya Sabha Committee on Petitions has recommended that Government should implement One Rank One Pension in the Defence Forces across the board at the earliest and further that for the future, the pay, allowances, pensions, family pension, etc. in respect of defence personnel should be determined by a separate Pay Commission.

9.1.           In order to consider the present demand in regard to ex-servicemen, it is necessary to examine the manner of calculation of pension of post 1.1.06 JCO/OR retirees. In this connection, the Committee was informed of the changes made to the pension structure for JCOs/ORs after 1.1.06. Till Sixth CPC, the pension of JCOs/ORs was calculated based on the maximum of the pay scale and had a linkage with 33 years of service. Depending on the number of years of service, pension was proportionately determined after adding the weightage. The Sixth CPC removed the linkage with 33 years of service and recommended grant of pension @ 50% of last pay drawn/10 months’ average emoluments, whichever is beneficial.
9.2.         After the acceptance of the Sixth CPC’s recommendations, the Services represented that this would lead to less pension being drawn in some cases compared to the pension drawn by pre 1.1.06 JCO/OR pensioners based on the maximum of pay scale. Therefore, in order to ensure that the benefit on account of calculation of pension based on maximum of the scale was continued, the option of stepping up of pension based on the old method of calculation using the maximum of the pay and linkage with 33 years of service was allowed. Since Sixth CPC had recommended running pay bands, the maximum of the fitment table was used to determine the notional maximum of the revised pay scale. Further, since after 1.1.06, JCOs/ORs were on common pay scales, the best of each rank and group across the three Services was used for calculation of pension. JCOs/ORs retiring after 1.1.06 were allowed to draw pension (i) @ 50% of average of last 10 months’ emoluments/last pay drawn or (ii) the pension as per the option allowed, whichever is beneficial to them.
9.3.          After the implementation of the recommendations of the 2009 Committee, the gap in the pension of pre 1.1.06 and post 1.1.06 JCO/OR retirees exists due to the following reasons:
(i)                    Change in pension formula to 50% of last pay drawn/10 months’ average and higher pension drawn by post 1.1.06 retirees on account of increments earned after 1.1.06; and
(ii)                  Use of the maximum pay of rank and group across the three Services for determination of the notional maximum of the pay scale in the method allowed as an option.
9.4.         The gap at (i) above cannot be easily computed or bridged as personnel in the same rank and group would earn different number of increments after 1.1.06 and there is, therefore, no single point of reference with which the pension can be compared. The Committee was, however, informed that on account of (ii) above, there is a gap in the basic pension of pre 1.1.06 JCOs/ORs vis-à-vis post 1.1.06 JCOs/ORs ranging from Rs 131 to Rs 181 in the case of Sepoys, Rs 122 to Rs 141 in the case of Naiks,  Rs 280 to  Rs 664 in the case of Havildars using Army Group ‘Y’ as the reference and Rs 97 to Rs 140 in the case of Subedar Majors in Group ‘X’.

9.5.         The Committee also considered additional options for improving the pension of JCOs/ORs considering the fact that they render much shorter service compared to their civilian counterparts due to the imperatives of retaining a youthful profile of the Defence Services. In this context, it was noted that the decision of the GoM in 2006 to increase the weightage of Sepoys, Naiks and Havildars for past and future pensioners granted some relief to the Other Ranks. The Committee felt that further relief could be provided by allowing an additional weightage of two years to these three ranks so as to mitigate the effect of a truncated career. This would, however, also need to be applied to post 1.1.06 retirees in the ranks of Sepoys, Naiks and Havildars for calculation of pension based on the notional maximum across the Services. An enhancement of the weightage for higher ranks was not considered necessary as their terms of engagement already provide them benefit of nearly full service.
10.1.      in the light of the above discussion, the Committee makes the following recommendations in regard to the pension of JCOs/ORs:
(i)                    The gap in the pension of pre 1.1.06 JCO/OR retirees and post 1.1.06 retirees may be bridged by determining the pension of pre 1.1.06 JCO/OR pensioners also on the basis of notional maximum for the ranks and group across the three Services as in the case of post 1.1.06 retirees. It will, however, not be feasible to grant a pensionary benefit in comparison with the serving JCOs/ORs who earn increments after 1.1.06 and opt for calculation of pension at 50% of last pay drawn/10 months’ average emoluments.
(ii)                   Further, the current weightage in qualifying service of 10 years, 8 years and 6 years in the ranks of Sepoy, Naik and Havildar may be increased by two years to 12 years, 10 years and 8 years respectively for pre-01.01.06 retirees. This would also need to be applied to post 01.01.06 retirees for the purpose of calculation of pension based on the notional maximum of the pay scale across the three Services.
10.2.     As a result of the above recommendations, the basic pension of Sepoy in Group ‘Y’ with 17 years of service is likely to increase by about Rs 500, of Naik in Group ‘Y’ with 22 years of service by about Rs 550 and Havildar in Group ‘Y’ with 24 years of service by about Rs 800 per month. Dearness Relief would be payable in addition.
10.3.     With the implementation of the above recommendations of this Committee, the demand for grant of ‘One Rank One Pension’ to JCOs/ORs would be largely met.
10.4      The financial implications of these recommendations have been broadly estimated at       Rs 1400 cr. per annum. It would be appropriate to implement these recommendations prospectively as the recommendations of the 2009 Committee were also implemented with prospective effect from 1.7.2009.

Pension of pre 1.1.06 Commissioned Officers
11.1          The issue raised in respect of Commissioned Officers has already been mentioned in the opening paragraphs on the subject of One Rank One Pension. The Committee found that the formula for calculation of pension of Commissioned Officers and for civilian employees is the same. Based on Sixth CPC’s recommendations, modified parity has been granted to pre-1.1.2006 civilians/ Commissioned Officers. To do this, the pension as on 1.1.2006 has been consolidated by adding the basic pension + dearness pension + dearness relief + 40% fitment benefit on basic pension. If this consolidated figure is less than 50% of the minimum of the pay band + grade pay, the pension is stepped up to this amount. In the case of Commissioned Officers, this stepping up is done with reference to 50% of minimum of pay band + grade pay + MSP of Rs 6000. Also, the Government has allowed reckoning of MSP for calculating pensions of retired Lt. Generals and Major Generals, which has enhanced their pensions by Rs 3000.
11.2.      The Committee was also informed that the issue was last considered by the 2009 Committee which stated that, in modification of the recommendations of the Sixth CPC, the Government placed Brigadiers and Colonels in PB-4 and enhanced their Grade Pay. As a result, the pension of pre 1.1.06 Commissioned Officers who retired as Brigadiers and Colonels improved substantially, Subsequently, the placement of Lt. Colonels in PB-4 also increased their minimum pension from Rs 14,100 to Rs 25,700. That Committee, however, noted that there was a significant difference in the pension of pre and post 1.1.06 Commissioned Officers at the level of Lt. Generals. The 2009 Committee, therefore, carved out a separate scale for Lt. General/Addl. Secretary/ equivalent as a result of which there was a significant improvement in their pension.
12.1.       The Services in their representations have referred particularly to the difference in the pension of Majors and Lt. Colonels and to those between Major Generals and Lt. Generals. As narrowing the difference in the pension across ranks does not flow from the demand for One Rank One Pension, the Committee examined the matter from the point of improving the pension of pre 1.1.06 pensioners vis-à-vis post 1.1.06 pensioners.
12.2.     The Committee was also informed that an increase in the pensionary benefits of Commissioned Officers will have an impact on civilian pensioners as the pension formula for Commissioned Officers and civilian employees is the same. There is already a demand from civilian pensioners for grant of modified parity seeking stepping up based on the minimum of the fitment table. Further, in an OA No. 655/2010 - filed by Central Government SAG(S-29) Pensioners Vs UOI wherein the applicants have prayed that their pension must be fixed with reference to the minimum of the pay in the pay band as per the Fitment Tables, the CAT, Principal Bench has allowed the OA vide its judgment dated 1.11.2011. The CAT, PB judgment dated 1.11.2011 is being contested by UOI before the High Court of Delhi. The Committee was informed that a similar order in favour of Defence pensioners has been passed by the Armed Forces Tribunal against which an SLP has been filed by Ministry of Defence.

12.3.     There were, therefore, two options before the Committee -
(a)                      to await the outcome of the SLP filed in the Supreme Court; or
(b)                      to step up the pension of pre 1.1.06 Commissioned Officers based on the minimum of the fitment table instead of the minimum of the pay band.
13.1         After detailed deliberation, keeping in view the fact that (a) the difference between the pension of pre and post 1.1.06 Majors and pre and post 1.1.06 Major Generals is significant, and (b) this difference has been causing dissatisfaction to the ex-servicemen, the Committee recommends the second option i.e. to step up the pension of pre 01.01.06 Commissioned Officer pensioners with reference to the minimum of the fitment table instead of minimum of the pay band. This dispensation would also be applicable to Honorary Commissioned Officers. As a result of the stepping up, the minimum pension to be granted to various ranks of pre 1.1.06 pensioners will be as under:
Rank
Min pension
(pre 2006)
Min pension as per Sixth CPC recommen­dations
Min pension (as improved by Govt based on minimum of the pay band)
Proposed Pension of pre 1.1.06 retirees as per minimum of fitment table
Increase in basic pension* (per month)

Lieutenant

4125

13500

13500

13500
0

Captain

5000

13650

13850

15350

1500

Major

6400

13800

14464

18205

3741

Lt. Colonel

6750

14100

25700

26265

565

Colonel

7550

14600

26050

27795

1745

Brigadier

8350

15000

26150

29145

2995

Maj. Gen.

9200

24100

26700

30350

3650

Lt General
11200

25100

36500

36500
0

* Dearness relief (DR) would be payable on this amount in addition. The current rate of DR is 65%.
13.2       Further, since the basic principles of grant of pension and modified parity for Commissioned Officers and civilian employees have been the same, the Committee recommends that the benefit of stepping up based on the minimum of the fitment table instead of the minimum of the pay band may also be extended to civilian pensioners. In this case too, the Committee recommends prospective implementation.

13.3         The implementation of the recommendations made by this Committee would address the demand for grant of One Rank One Pension to Commissioned Officers to a considerable extent.
13.4        The financial implications of the proposal have been broadly estimated at Rs 302 cr. per annum for Commissioned Officers and civilians.
ENHANCEMENT OF FAMILY PENSION
14.1.       As per existing provisions, family pension in cases of death not attributable to military service is calculated at the rate of 30% of the last pay drawn and is subject to a minimum of Rs 3500/- p.m. However, an enhanced amount of family pension is granted @ 50% of last pay drawn for 10 years after death without any upper age limit in the case of death in service and for 7 years after death or till the employee would have reached 67 years of age, whichever is earlier, in case of death after retirement. Apart from this, there are also rules for Special family pension in cases of death attributable to service (granted @ 60% of pay last drawn) and Liberalised family pension in case of death in war or warlike situations (pension granted @ pay last drawn).
14.2.     For revision of the pension of pre 1.1.06 family pensioners, based on the recommendations of the Sixth CPC, the methodology followed for Commissioned Officers has also been followed for family pensioners. Accordingly, the family pension has first been consolidated and if this amount is less than 30% (50% in respect of enhanced/special family pension and 100% in the case of liberalized family pension) of the minimum of the pay band + grade pay + MSP, the pension has been stepped up to that level.
15.              It has been stated by the Defence Services that the 2009 Committee on pension had recommended bridging the Gap between pre and post 01 Jan 2006 pensioners. It recommended pension at the top of notional pay scale as given in the fixation table of Sixth CPC for pensioners. However, in respect of Family Pension, no such benefit was recommended and it continues to be linked to the last pay drawn. It has been demanded that family pension should also be calculated at the notional top as is the case with ex-servicemen.
16.             The Committee noted that while JCOs/ORs have been treated differently from civilians in the matter of pensions, mainly due to their terms of engagement resulting in a truncated career, family pensioners of Defence Service personnel and civilians have been treated alike. Further, while in the case of JCOs/ORs the practice was to calculate service pension based on the maximum of the pay scale, family pension (both for civilians and defence personnel) is calculated based on last pay drawn. Therefore, a differential treatment for family pension of Defence Forces personnel, particularly where the method of calculation of pension is similar to that of civilians, is, difficult. However, the Committee has already recommended that stepping up of retiring pension may be done with reference to the minimum of the fitment table instead of the pay band in respect of Commissioned Officers who retired prior to 1.1.06. As a corollary, the Committee also recommends that the family pension of pre 1.1.06 family pensioners of Commissioned Officers, Honorary Commissioned Officers and JCOs/ORs may be stepped up based on the minimum of fitment table instead of the minimum of the pay band. This may also be made applicable to civilian family pensioners.
16.2       The Committee had detailed discussions on whether there was also a case for a separate dispensation for JCOs/ORs as far as pre 1.1.06 family pension is concerned as their pension is calculated in a different manner compared to other categories within and outside the Defence Forces. In this context, attention of the Committee was drawn to the general perception among the widows of defence service personnel that the fair treatment granted to JCOs/ORs by granting pension to pre 01.01.06 pensioners based on the maximum of the pay scale had been denied to them. The Committee noted that various Committees in the past have improved the pension of JCOs/ORs so as to narrow the gap between past and future pensioners. This has resulted in improvements being made to JCO/OR’s pension which were not passed on to family pensioners as there was no specific linkage between the quantum of service and family pension.
17.              The Committee felt that there would be improvement in family pension of JCOs/ORs if the option of linking family pension to the pension of JCOs/ORs where family pension became effective after their retirement, is considered. Normal family pension is calculated @ 30% of last pay drawn. Since retiring pension is calculated based on 50% of pay, family pension would translate to 60% of retiring pension. In this context, the Committee observed that there are cases where normal family pension determined on the basis of 60% of retiring pension would be higher than the stepping up recommended above on the basis of the minimum of the fitment table. Considering this, the Committee felt that where the family pension is granted in cases of death after retirement, the family pensioner may be allowed stepping up of pension based on 60% of the pension that the JCO/OR pensioner would have drawn now as per the recommendations made by this Committee in para 10.1 on the issue of OROP for JCOs/ORs.
18.             To sum up, the Committee recommends the following measures in regard to family pension:-
(i)                     The pension of all pre 1.1.06 family pensioners (Commissioned Officers, Honorary Commissioned Officers, JCOs/ORs and civilians) may be stepped up based on the minimum of the fitment table instead of the minimum of the pay band.
(ii)                   Further, the Committee has made recommendations on the manner in which the pension of pre 1.1.06 JCO/OR pensioners will be revised. Establishing a linkage of the family pension with the pension of JCOs/Ors in those cases where the death takes place after the retirement of the JCO/OR since such a JCO/OR drew a pension based on the maximum of the pay scales, the Committee recommends that 60% of the pension applicable to JCO/OR pensioners may be granted to the family pensioner in case of normal family pension calculated at 30% of last pay drawn. Accordingly, based on the rank, group and length of service of the deceased JCO/OR pensioner, his pension based on this Committee’s recommendation on the revision of pension of JCOs/ORs would first be determined on notional basis. The family pensioners in receipt of normal family pension would become entitled to 60% of the said pension determined on notional basis and those in receipt of enhanced family pension will be entitled to 100% of this pension. Similar entitlements would be determined in the case of special family pension.

(iii)                    The family pensioner of the JCO/OR may be granted family pension arrived at on the basis of the family pension worked out as per the formulation at (ii) above or the pension on the basis of stepping up with reference to the minimum of the fitment table, whichever is beneficial. Further, the linkage of family pension with retiring pension would need to be applied in the case of post 1.1.06 family pensioners of JCOs/ORs also.

19.             The financial implications of the proposal in respect of family pensioners of JCOs/ORs and others have been broadly estimated as Rs 342 crore per annum. The Committee suggests that the recommendations on family pension may be implemented on a prospective basis and payment made accordingly.
DUAL FAMILY PENSION
20.          The Defence Services have brought out that Armed Forces personnel retire early in life and accordingly their pension from military service is very low compared to their civilian counterparts who by virtue of their longer service, promotions, increments etc are entitled to higher pension. When these ex- servicemen take up a job on the civil side (Govt./PSU etc.) their second service is also limited as they can serve only upto 60 years and normally enter civil employment at the age of 40 or more. The two pensions taken together approximate the pensionary entitlements of their counterparts on the civil side. Defence pensioners enjoy this benefit as long as they are alive. However, on the death of the individual the family is eligible to receive only one pension either from the military source or from the civil source.

21.            As per the present rule position, an ex-serviceman re-employed in a civil post who has opted to retain military pension and who is also entitled for civil pension by virtue of his service in a civil post, is required to exercise an option at the time of applying for pension for civil service either to opt for civil family pension or military family pension (sub-rule 13-A of Rule 54 of CCS Pension Rules). A conscious choice is, therefore, being presently made by defence pensioners based on which of the two family pensions - civil or military, they perceive as being more beneficial to them.
22.1.     The Committee, however, observed that the CCS Pension Rules are applicable only in respect of such ex-servicemen in civil employ who have joined the civil side before 1.1.2004, i.e. prior to the introduction of the ’New Pension System'(NPS). Those who have joined the civil side on or after 1.1.2004 will, in any case, get the benefit of military pension plus their accumulations under the NPS in their capacity as NPS subscribers. Their dependants will get the benefit of the military family pension and the stream of annuity payments under the NPS (in case they have opted for such an annuity scheme which would cover their dependents). Further, even as per present provisions, two family pensions are allowed if the second family pension happens to be under the Employees Pension Scheme, 1995/Family Pension Scheme, 1971.
22.2.    The Committee also observed that post 1.1.06, the linkage with 33 years of service for grant of full pension has been removed and pension is being granted at the rate of 50% of last pay drawn/last 10 months’ average. There has, therefore, been a liberalisation in the provisions related to retiring pension as there is no proportionate reduction in pension for shorter service in this formula. Keeping in view the general liberalisation in the pension structure and the fact that in the post NPS scenario, annuity payments would be available to family pensioners in addition to the family pension from military employment, the Committee recommends that dual family pension may be allowed in present and future cases where the pensioner drew, is drawing or may draw pension for military service as well as for civil employment. Since the provisions for military and civilian pensioners in this regard are the same, this recommendation would need to be extended to similarly placed civilian family pensioners.
22.3      Although data on the number of family pensioners who would become eligible to draw two family pensions based on this recommendation is not available, using certain assumptions, the financial implications have been broadly estimated as Rs 240 crore per annum. It is recommended that payment of dual family pension may be made prospectively.
FAMILY PENSION TO MENTALLY I PHYSICALLY CHALLENGED SON / DAUGHTER OF ARMED FORCES PERSONNEL ON MARRIAGE
23.           As per the existing provisions, in case the son or daughter of a Government servant (including Defence Services personnel), is mentally or physically challenged, so as to render him or her unable to earn a living even after attaining the age of 25 years, the family pension is payable for life. Upon marriage of such a physically/mentally challenged son or daughter, family pension stands disallowed.

24.            The Defence Services have represented that considering the humanitarian aspects and social obligations, its continuation even after marriage is considered essential and may be permitted.
25.            The Committee went into the matter and concluded that keeping in mind the need to provide for both social and financial security for such children, the continuance of family pension to mentally/physically challenged children subsequent to marriage should be allowed on humanitarian grounds. The Committee, therefore, recommends the continued grant of family pension to mentally/physically challenged children who drew, are drawing or may draw family pension, even after their marriage. As far as the financial implications of the proposal are concerned, while no firm estimates are presently available, the provision of such an entitlement is not likely to result in major financial outgo. However, the facility would, given the reasoning outlined for its extension, also have to be accorded in respect of similarly placed civilian pensioners. The Committee further recommends that payment of family pension in such cases may be made prospectively.
Pay Related issues
Common pay scale for in-service JCOs/ORs
26.1.     In their representation, the Defence Forces have brought out that JCOs/ORs in the three services with same entry level qualification since Fourth CPC in the same rank and pay group had different pay scales. The long outstanding demand to resolve the above anomaly was accepted by Sixth CPC and it recommended common pay scales for all recruits in the three Services post but not for in service JCOs/ORs as on 1.1.06. Due to this position, higher ranks in lower groups have started drawing less pay than lower ranks in the higher group.

26.2.    Defence Forces have therefore suggested that in order to make the common pay scales applicable to in-service JCOs/ORs who joined prior to 1.1.06, JCOs/ORs of ‘Y’ and erstwhile ‘Z’ Gp should be upgraded to best of ‘X’ Gp scales in each rank. Then the upgraded common scale be multiplied by the Sixth CPC factor of 1.86 to arrive at new replacement pay in the pay band in PB-1 and PB-2.
27.1.     The Committee deliberated upon the proposal of the Services at length and noted that:-
(i)                        Prior to the Fifth Pay Commission, JCOs/ORs (Army) were in 5 groups namely, A to E, which were reduced to four by the Fifth Pay Commission. Navy and Air Force had 4 groups. With effect from 10.10.97, JCOs/ORs in the Armed Forces were distributed into three Groups in each of the Se vices. Each Service had separate pay scales for its three Groups. Thus, prior to the Sixth CPC, while Army had 18 pay scales for JCOs/ORs, the other two Forces had 21 each. The Pay Commission gave common pay scales for the three Groups, thereafter differentiating the X Group by grant of an X Group pay. In effect, the Sixth Central Pay Commission carried out a merger of the pay scales of various Groups in the Services. However, while fitting the personnel of different groups in the pay band, a multiplication factor of 1.74 (revised by Government to 1.86) was used for application on the pre-revised pay. These fitment tables were part of the Sixth CPC’s report.

(ii)                   A similar approach was followed by the Sixth Pay Commission in the case of civilian pay scales. For instance, pay scales of Rs 5000-8000, Rs 5500-9000, Rs 6500-6900 and Rs 6500-10500 have been merged by the Commission. Similarly, the pay scale of Rs 8000-13500, Rs 9000 and Rs 9000-9550 were also merged and Rs 10325-10975 and Rs 10000-15200, etc. have been merged. In all these cases also, fitment in the pay band is based on a multiplication factor of 1.86 which was applied on the existing pay and the lower scale had not been first upgraded to the higher scale i.e. a person at Rs 5000 in Rs 5000- 8000 has not been first upgraded to Rs 6500 and then fitted in the pay band but the multiplication factor has been applied on Rs 5000 only.
(iii)                 In other cases also where posts were upgraded to a higher grade, the benefit of upgradation has been given in the form of higher grade pay and fitment in the pay band done using the multiplication factor of 1.86. This includes the upgradation done for various levels of Para Military personnel, teachers, nurses, etc.
(iv)                 Demands have already been made by the Staff Side of the JCM for revising the minimum of the Pay Band 2 using Rs 6500 (instead of Rs 5000) for its determination. There is also a demand for grant of minimum entry grade pay of Direct Recruits on promotion.
(v)                   Personnel in Group ‘X’ of the Defence Forces have been granted an ‘X’ Group pay over and above the fitment in the pay band and therefore there are situations where, in terms of total emoluments consisting of pay in the pay band plus grade pay plus ‘X’ Group pay plus MSP, those who were drawing lower pay are getting higher emoluments on account of this ‘X’ Group pay. ‘X’ Group pay has been consciously recommended by the Sixth CPC to differentiate X group (which is the technical group) from other groups.
(vi)                 The Committee also noted that even in the pre-revised pay scales of Armed Forces, there were instances where a JCO/OR in a higher rank drew lower pay than the one in a lower rank in another Group. Examples of this situation prior to Sixth Pay Commission are as under:-

Army
Group X
Group Y
Group Z

Naik
 3700-4975
  3425-4700


Havildar

 3600-5100
3250-4525

Navy
Group X
Group Y
Group Z

Seamen-I

 3650-4550


Leading Seamen


 3200-4250

Air Force
Group X
Group Y
Group Z

LAC
 4025-4925
 3650-4550


Corporal
4150-5200
 3900-4950
 3200-4250

Sergeant


 3775-5050

(vii)                  The fitment tables are incorporated in the Pay Commission’s report and the same method was followed for Defence Services as for other employees. This is a conscious recommendation of the Pay Commission and such cases are normally not treated as anomalies. Further, a change in the method of fixation for JCOs/ORs would have wider repercussions. The Committee was informed that at the time of consideration of the Sixth CPC’s report, the financial implications of the proposal of the Defence Forces including its impact on civilians was worked out as Rs 3800 cr. per annum which would now become almost Rs 6,000 cr. per annum.
27.2      In view of the above, the Committee noted that the proposal of the Defence Forces has several complexities and also involves a deviation from the basic principles adopted by the Sixth Pay Commission for pay fixation of those in service on 01.01.06. The basic principles followed for JCOs/ORs are the same as for other Government employees. In the circumstances, the Committee is unable to make a recommendation on the representation and is of the view that this issue should be referred to the next Pay Commission as and when it is set up, for consideration. In this context, in view of the fact that similar demands have been raised by other sections of employees, its examination will have to be done on a holistic basis.
Initial pay fixation of Lt. Colonel/Colonel and Brigadier/equivalent
28.           The Services have represented that the initial pay fixation of Lt. Colonel, Colonel, and Brigadier should be done with reference to S-25 scale. Accordingly, the pre-revised starting scale of Lt. Colonel should be given a replacement scale of Rs 39,690, Colonel at Rs 17,100 should be given a replacement scale of Rs 42,120 and that of a Brigadier at Rs 19,100 should be fixed at Rs 46,050. Similarly, initial pay fixation of Lt. Colonel, Colonel and Brigadier/equivalent of AMC/ADC/RVC needs to be done after including DA on NPA,

29.            The Committee examined the matter and found that the S-25 pay scale of Fifth CPC is the pay scale drawn by Director level officers of the IAS which started two increments higher than the Director level officers belonging to other Group ‘A’ Services including the IPS. On the other hand, the fitment table for Lt. Colonel and Colonel are drawn up with reference to the S-24 scale which was the pay scale for Director level officers in other Group ‘A’ Services/IPS and Central Para Military Forces and of Brigadier with reference to the S-26 scale which is the scale of the DIG. The Committee noted that there is no disparity in the matter of pay scales vis-à-vis the IPS and agreeing to the proposal of the Defence Services would result in similar demands from Group ‘A’ Services, IPS and the para-military forces.
30.            In the circumstances, the Committee is unable to recommend any change in the fitment of Lt. Colonel, Colonel, and Brigadiers.
Review and enhancement of grade pay
31.1.      The Defence Services have represented that the Sixth CPC granted lower Grade Pay to Service Officers vis-à-vis civil officers due to discounting of Rank Pay from the maximum of the pre-revised scales. As a result, their status has been lowered below the extant position. Restoration of status by maintaining parity in Grade Pay has been sought.
31.2       It has, therefore, been represented by the Defence Services that the Grade Pay of all Officers be raised to the same level as that of similarly placed civilian officers and that this will be the only method of ensuring restoration of extant relativities between the two. The Grade Pay sought are as under:

Ser No.
JCOs/ OR
Amount
Officers
Amount
(a)

Havildar
4200

Lieutenant

6100
(b)

Nb. Subedar
4600
Captain
6600
(c)

Subedar
4800
Major
7600
(d)

Sub. Major

5400

Lt. Colonel
8700
(e)
-
-
Colonel
9000
(f)
-
-
Brigadier
9500

31.3        In the case of JCOs/ORs, enhancement of grade pay has been sought on the ground that a certain percentage of UDCs have been placed in the Grade Pay of Rs 4200 and the grade pay of Master Craftsmen has been revised to Rs 4200,
32.1       The Committee examined the representation of the Defence Services. The position in regard to the issue of Grade pay is as under:-
(i)                        The Sixth Pay Commission in its report (para 2.3.12) had stated that it was of the view that “running pay bands on par with those recommended for civilian officers needs to be introduced in respect of the Defence Forces as well. This is also in conformity with the recommendations of all the three earlier Central Pay Commissions that had simultaneously considered the pay scales and related issues of civilians as well as the Defence Forces. The edge enjoyed by the Defence Forces over the civilian scales will, after suitable enhancement to meet the genuine aspirations of the Defence Forces, be given as a separate element called Military Service Pay. Presently the edge enjoyed by the Defence Forces officers is limited to the rank of Brigadier. This edge will need to be protected. The edge will be carried to the post of Major General as well because Military Service Pay shall be taken in account for purposes of fitment at the time of promotion from Brigadier to Major General.”

(ii)                  The matter related to revision of grade pay to officers was also examined in 2008. The Government after a long deliberation on the Sixth CPC recommendations decided to increase the Grade Pay of middle level Defence Forces officers. The grade pay granted by the Pay Commission and subsequent improvements made by the Government after the Pay Commission are listed below:-
Commissioned Officers
Civilian Group ‘A’ Services
PB-3 for officers from Lieutenant to Brigadier
PB-3 for officers from Junior Time Scale to DIG
Rank
Grade Pay (SCPC)
Modified Grade Pay
Grade
Grade Pay (SCPC)
Modified Grade Pay

Lieutenant
5400
5400

JTS
5400
5400

Capt.
5700
6100




Major
6100
6600
STS
6100
6600

Lt. Colonel
6600
8000*

Dy. Secy.
6600
7600

Colonel
7600
8700*

Director
7600
8700*

Brigadier
8400
8900*

DIG
8400
8900*

* placed in PB-4

(iii)                The Services have made their demand for higher grade pay based on merger of rank pay in their pay scales. The issue of increase in grade pay was also considered by the Pranab Mukherjee Committee and not merging Rank Pay with Basic Pay was upheld. The Pranab Mukherjee Committee report, inter alia, observed the following in regard to the issue of grade pay:
(a)              The stand of the Armed Forces that their grade pays have been depressed is not correct. For functional purposes, salary cannot be the basis to determine the status.
(b)              Rank pay cannot be merged with pay scales and this well established principle has to be recognised before taking any decision This issue has been settled by a Cabinet decision of 1999. The basic ground on which the issue is being agitated is erroneously placed. However, taking into account the pre-revised pay scale of Lt. Colonels after stripping the rank pay, enhancement of the grade pay only of Lt. Colonels to Rs 8,000/- was recommended by the Pranab Mukherjee Committee.
(c)     As far as JCOs/ORs are concerned, the Sixth CPC had compared them with the Central Para Military Forces and no relativity with the CPMFs has been disturbed. If there is any change in the grade pay of JCOs/ORs, there would need to be a similar change in the grade pay of the Central Para Military Forces resulting in a chain reaction.
32.2      The Sixth Pay Commission had, on a holistic consideration of all relevant aspects, established equivalence between civilians and defence personnel compensating them for the hardships of Military life by grant of Military Service Pay. An enhancement in the grade pay of defence forces personnel would involve a deviation from the basic philosophy of the Commission to grant parity and thereafter the edge in the form of the military service pay and would impact existing relativities. In the circumstances, the Committee feels the implications of the proposal for enhancement of grade pay are such that an expert body like a Pay Commission would be better equipped to consider the matter.
Placing of all Lt Generals in HAG+ scale
33.             The Services have sought restoration of status of Lt Generals to that of DG Police. It has been stated that the issue has been partly settled as only 1 /3rd of Lt General/equivalent have been placed in HAG+ scale against the demand of grant of HAG+ scale to all Lt Generals. The responsibilities, span of control and length of service of Lt Generals need to be recognised and all Lt Generals should be placed in the HAG+ scale.
34.           In regard to the proposal for upgrading all Lt Generals to the HAG+ scale, the Committee noted the factual position as under:
(i)                The Lt. Generals of the Armed Forces were in the pre-revised pay scale of Rs 22400-24500 which was the same as that granted to Additional Secretaries/AddJ. DGPs.
(ii)              After the Sixth CPC, Government maintained the pre-existing relativities between Additional Secretaries to Government of India and others like Additional DGPs, Lt. Generals, etc.
(iii)            Government also accepted the recommendation of the Pay Commission that those Lt. Generals who are otherwise fit to be Army Commanders but overlooked for want of residual service may be granted the pay scale of Army Commanders (Rs 80,000) i.e., the Apex scale.

(iv)            The pay fixation of Lt. Generals has been done after taking into account the Military Service Pay of Rs 6000 notionally from 1.1.2006 and actually from 1.9.2008. Therefore, pay fixation is higher than those of Additional Secretaries drawing the same pre-revised pay. Even in future, higher fixation due to the impact of the MSP would be available as pay of Brigadiers on promotion to Major General would be fixed after taking into account the MSP.
(v)              The proposal that all Lt. Generals may be placed in the HAG+ scale of Rs 75500-80000 was considered by the Pranab Mukherjee Committee but was not accepted.
(vi)            Subsequently, Government placed 1 /3rd of Lt. Generals in the HAG+ scale.
(vii)           Placement of all Lt. Generals in HAG+ scale implies that the HAG scale would be skipped in the hierarchy of the Defence Forces, which would have implications outside the Defence Forces.
35.            The Committee, therefore, feels that upgradation of all Lt. Generals to the HAG+ scale may result in a demand for an overhaul of the hierarchy in the Defence Forces which would impact the equivalence established with civilian cadres. Such an exercise is best done by a Pay Commission after examination of functional and other relativities across cadres.
Grant of non-functional upgradation (NFU) to armed forces personnel
36.            It has been brought out by the Defence Services that NFU is based on the recommendation of the Sixth CPC to provide an opportunity to all Organised Group ‘A’ Services to reach higher scales of pay two years after the same is granted to IAS officers at the centre. It has been strongly recommended that Non Functional Upgradation be extended to Armed Forces Officers.
37.             The Committee noted that the service conditions of Defence Forces are quite different from those of civilian employees. Benefits in the form of Military Service Pay and various allowances are also available to the Defence Forces officers which are not admissible to civilian officers. It is, therefore, not logical to compare the earnings of the two Services. Further, Defence Forces officers are covered by a separate time bound promotion scheme upto the level of Colonel. The scheme of non-functional upgradation is applicable only for organised Group ‘A’ Services and was extended to IPS/IFS. The requirements related to command and control, the norms for recruitment, promotion and the rank structure of the Defence Forces are not identical to those of Group ‘A’ cadres. The average age of entry of Commissioned Officers is lower than that of those joining the Group A’ Services. No parity presently exists in the career progression of Group A’ Services and Commissioned Officers. In the circumstances, the Committee is unable to make a recommendation on the issue.

Summary of recommendations
38.           To sum up, the following recommendations are made by the Committee:-
Issues relating to ex-servicemen and consisting of pension related anomalies
(a) One Rank One Pension
(1) JCOs/ORs -

The 2009 Committee had bridged the gap between pre and post 1.1.06 JCO/OR pensioners to a large extent. The difference between pre and post 1.1.06 JCO/OR pensioners presently exists due to the (a) change in pension formula to 50% of last pay drawn/10 months’ average and higher pension drawn by post 1.1.06 retirees on account of increments earned after 1.1.06 and (b) use of the maximum pay of rank and group across the three Services for determination of the notional maximum of the pay scale in the method allowed as an option.
In order to bridge the gap between pre and post 1.1.06 JCO/OR pensioners and as a measure of improvement in the pension of JCOs/ORs, the Committee recommends the following:
(a)              The gap in the pension of pre 1.1.06 JCO/OR retirees and post 1.1.06 retirees may be bridged by determining the pension of pre 1.1.06 JCO/OR pensioners also on the basis of notional maximum for the ranks and group across the three Services as in the case of post retirees. It will, however, not be feasible to grant a pensionary benefit in comparison with the serving JCOs/ORs who earn increments after 1.1.06 and opt for calculation of pension at 50% of last pay drawn/10 months’ average. 
(b)              Further, the current weightage in qualifying service of 10 years, 8 years and 6 years in the ranks of Sepoy, Naik and Havildar may be increased by two years to 12 years, 10 years and 8 years, respectively for pre-01.01.06 retirees. This would also need to be applied to post retirees for the purpose of calculation of pension based on the notional maximum of the pay scale across the three Services.
(2)              Commissioned Officers
At present, the pension of pre 1.1.06 Commissioned Officers is stepped up with reference to the minimum of the pay band + grade pay + Military Service Pay. The Committee recommends that stepping up of the pension of pre 1.1.06 Commissioned Officers may be done with reference to the minimum of the fitment table for the rank instead of the minimum of the pay band. This would also be applicable to Honorary Commissioned Officers.

(b)               Enhancement of Family Pension
The Committee recommends the following measures in regard to family pension:-
(i)                 The pension of pre 1.1.06 family pensioners (Commissioned Officers, Honorary Commissioned Officers, JCOs/ORs) may be stepped up based on the minimum of the fitment table instead of the minimum of the pay band.
(ii)               Further, the Committee has made recommendations on the manner in which the pension of pre 1.1.06 JCO/OR pensioners will be revised, Establishing a linkage of the family pension with the pension of JCOs/ORs in those cases where the death takes place after the retirement of the JCO/OR since such a JCO/OR drew a pension based on the maximum of the pay scales, the Committee recommends that 60% of the pension applicable to JCO/OR pensioners may be granted to the family pensioner in case of normal family pension calculated at 30% of last pay drawn. Accordingly, based on the rank, group and length of service of the deceased JCO/OR pensioner, his pension based on this Committee’s recommendation on the revision of pension of JCOs/ORs would first be determined on notional basis. In cases where death of JCO/OR took place after retirement, the family pensioners in receipt of normal family pension would become entitled to 60% of the said pension determined on notional basis and those in receipt of enhanced family pension will be entitled to 100% of this pension. Similar entitlements would be determined in the case of special family pension.
(iii)             The family pensioner of the JCO/OR may be granted family pension arrived at on the basis of the family pension worked out as per the formulation at (ii) above or the pension on the basis of stepping up with reference to the minimum of the fitment table, whichever is beneficial. Further, the linkage of family pension with retiring pension would need to be applied in the case of post 1.1.06 family pensioners of JCOs/ORs also.
(c)                Dual Family Pension
As per present provisions, a pensioner who gets second employment in the Government after military employment is entitled to draw two pensions. Upon his death, however, the family is entitled to only one family pension. The Committee recommends that dual family pension may be allowed in present and future cases where the pensioner drew, is drawing or may draw pension for military service as well as for civil employment.

(d)               Family pension to mentally/physically challenged children of armed forces personnel on marriage
Under the present provisions, the family pension granted to mentally/ physically challenged children stops on their marriage. Considering the demand made in this regard sympathetically, the Committee recommends the continued grant of family pension to mentally/physically challenged children who drew, are drawing or may draw family pension, even after their marriage.
(e)               The recommendations made for pension and family pension of Commissioned Officers, dual family pension and continuance of family pension to mentally/physically challenged children on marriage may also be extended to civilian pensioners in view of the similarity of the present provisions.
(f)                 The above recommendations made on pensions may be implemented from a prospective date and payment made accordingly.
Issues relating to serving defence personnel
39.            The Committee deliberated at length on the pay related issues raised by the Defence Forces. It was noted that the pay related issues are complex and have ramifications across the Government, including on para-military personnel. The proposals made by the Defence Forces in many cases are at variance with some of the principles followed by the Sixth Pay Commission. Some of the proposals have already been considered subsequent to the Sixth Pay Commission.
40.           In this context, the Committee also noted that the next Pay Commission’s recommendations would be likely to be implemented w.e.f. 1.1.2016. If the Thirteenth Finance Commission’s recommendation that structural shocks such as arrears arising out of Pay Commission awards should be avoided by making the pay award commence from the date it is accepted is implemented, the next Pay Commission would need to be set up in the second half of 2013 or in early 2014.
41.             In the circumstances, the Committee recommends that the pay related issues may be specifically referred to the next Pay Commission for its consideration as the Pay Commission is the expert body set up for this purpose which can examine these issues in a holistic manner.

Financial Implications
42.            The total financial implication of the proposals in regard to pension is broadly estimated at around Rs 2300 crore per annum.
43.            It is expected that the recommendations made by this Committee on the issues of One Rank One Pension, Enhancement of Family Pension, Dual Family Pension and continuation of family pension to the mentally/physically challenged children of Armed Forces personnel after the marriage of such children, would largely meet the demands of the Defence Forces on these matters.


Sd/------------------------                                                        Sd/----------------------
S Chatterjee                                                                                     P K Misra
Secretary (Ex-Servicemen Welfare)                                     Secretary (Personnel)




Sd/------------------------                                                        Sd/----------------------
Sumit Bose                                                                                                R S Gujral
Secretary (Revenue)                                                    FS & Secretary (Expenditure)


Sd/------------------------                                                        Sd/-----------------------
Shashi Kant Sharma                                                             Pulok Chatterjee
Defence Secretary                                                        Principal Secretary to PM

Sd/------------------------
Ajit Seth
Cabinet Secretary

4 comments:

  1. Blood boils on reading this.

    just see these samples for instance.

    When defence forces ask for better pension, committee says;

    "12.2 The Committee was also informed that an increase in the pensionary benefits of Commissioned Officers will have an impact on civilian pensioners as the pension formula for Commissioned Officers and civilian employees is the same. There is already a demand from civilian pensioners for grant of modified parity seeking stepping up based on the minimum of the fitment table."

    When defence forces ask for parity in NFU with civilians, the committee says;

    "37. The Committee noted that the service conditions of Defence Forces are quite different from those of civilian employees."

    what a pre-conceived notions. A committee not worthy of its name!

    ReplyDelete
    Replies
    1. @Ajith Kumar: Its a classic adaptation of Aesop's fable of "The Wolf and the Lamb".

      But, the sad part is, it is also equally reminiscent of the manner in which the Services HQs deal with their own cadres.

      Delete
  2. The considerations n recommendations r very artful manipulation which has been done by IAS cadre for ages. There r two sets of minds have been working one separately for commissioned offrs by equating them with civ employees n IPS officers as suits them n the other for JCO/OR with CPMFs as suits them n finally even below other cl A officers for commissioned offrs. The IAS officers have been kept as a class apart as they r still from British India n all others r native Indians. Just great recommendation n 7 CPC has gone a step ahead by taking back of what ever was given by this committee.

    ReplyDelete
  3. Dear Sir,
    Thanks for the information.
    The two reports, Report N0.9 of 2009 and No.12 of 2012, throw a lot of light on what had been proposed by the Service HQ and how they were treated.
    Some conclusions were not as per common perception.
    In Report No. 12, the Committee recommended,
    “10.4 The financial implications of these recommendations have been broadly estimated at Rs 1400 cr. per annum. It would be appropriate to implement these recommendations prospectively as the recommendations of the 2009 Committee were also implemented with prospective effect from 1.7.2009.”
    This is not completely true.
    The recommendations of the Report no.9 were implemented with effect from 01 January, 2006, itself for PBOR retired after 01/01/2006.
    PCDA(P) Circular No. 471 refers.

    ReplyDelete