Aerial View : Report of the Third Pay Commission Volume III

Report Of The Third Central Pay Commission Volume-III

Author: Lal I. M.

VOLUME III – ARMED FORCE PERSONNEL

Chapter Subject

48 Reference and procedure

49 Our Approach to Armed Forces Pay

50 Service Officers Pay

51 Pay Structure of Personnel below Officer rank

52 Allowances and benefits of Servicemen

53 Non-effective Benefits of Servicemen

54 Fixation of pay in the proposed scales and cost of recommendation

Aerial View’s clarification: - Only first part (Officers) of Chapter 53 on Non-Effective Benefits of Servicemen is placed below for perusal, pondering and correcting a few opinions and mis-statements.

The Second Part for PBORs is being perused, digested and typed. It will be placed on this blog in 48 hours.

Chapters 48 to 52 will follow subsequently.

CHAPTER 53

NON-EFFECTIVE BENEFITS OF SERVICEMEN

The death-cum-retirement and disability benefits provided to the Servicemen are referred to as non-effective benefits i.e. benefits which are admissible after the Serviceman has ceased to be on the effective list. The pensions and other terminal benefits received after retirement are important for assessing the monetary rewards pertaining to any form of employment and judging its attractiveness relative to others. This is more true in the case of the Services where the majority of personnel are released at a time when they have to look for further employment. The State in regard to Servicemen thus has a dual responsibility. First, the Government should prescribe pensions and allied benefits at reasonable rates in accordance with the length of service rendered and other factors like early termination of career, and secondly, it should provide effective arrangements to assist the Servicemen in overcoming the problems of transition to civilian life.

2. The existing pension code for the Services is based on the recommendations of the Armed Forces Pension Revision Committee (AFPRC) which submitted its report in 1950. The introduction of the Death-cum-Retirement Gratuity (DCR Gratuity) Scheme for Servicemen in September 1970 is the only significant change that has taken place since the Post-War Pension Code was introduced with effect from 1^st June 1953 on the recommendations of AFPRC. Before formulating its recommendations, the AFPRC enunciated certain general factors for determining the entitlement to and assessment of pensions. The AFPRC viewed pensions and other terminal benefits as a reward for good service which should vary with the length and quality of service rendered; as an inducement to the right type of men to undertake continuous service; as compensations for early termination of career, liability to recall and for disabilities, if any, attributable to military service; and as an element towards the maintenance of those discharged and as support for the members of the family of deceased personnel.

3. The Services have, in their proposals, generally endorsed the principles enunciated by the AFPRC. They have also stated that Service pensions should take into account the peculiar conditions of service and the hierarchical set-up of the Services. They have added that an element on account of compensation for early retirement and liability to be recalled to service should be specifically provided when determining the pensionary benefits. In the case of death or disablement, the Services have proposed that compensation should be graded depending on the type of casualty ad degree of disablement. They have also proposed that pensioners should be protected against future inflationary trends.

4. By and large, the principles followed by the AFPRC continue to be valid. Our examination shows that it would not be proper to adopt the civil pension rules in the case of Service personnel because it would fail to take into account the peculiar hierarchical structure of the Services and the operational requirement of ensuring that the vast majority of the personnel in the armed forces be young and in sufficient good condition to cope with the rigours of Service life. We think that the grant of pension should be regulated as to enable Servicemen to earn full pensions at a relatively younger age compared to civilians. Further, the length of service beyond a point should not be allowed to influence pension rates, as that would induce these personnel to stay on in service in order to earn higher pensions even after they have ceased to be useful. We accept the need for providing an element of compensation in the pension rates for early retirement in the Service interest and we feel that this should be done in as explicit a manner possible. In formulating our recommendations with regard to the non-effective benefits, we have not considered it necessary to suggest changes in such matters as the age of retirement, the period of tenure prescribed for senior ranks, the periods of qualifying service for pension, and certain other conditions attaching to the grant of these benefits.

5. We discuss in the following paragraphs the various types of benefits admissible to Servicemen separately for officers and personnel below officer rank. (Our recommendations regarding the grant of Dearness Allowance to pensioners are at Chapter 60.)

I. OFFICERS

6. The existing age limits for compulsory retirement of officers of different ranks and tenure of appointment in the senior ranks are given in the table below: -

TABLE I

ARMY

Rank	Age limit for compulsory retirement
General	58 years
Lt General	56 years
Major General	54 years (57 years for AMC)
Brigadier	52 years; 54 years for technical officers and 55 years for education corps and Judge Advocate General, AMC and ADC
Colonel Lt Colonel	50 years for Arms ; 52 years for officers of certain Services and 55 years for AMC, ADC
Major & below	48 years for Arms and 52 years for Services, 55 years for AMC, ADC

TABLE II

NAVY

Rank	Age limit for compulsory retirement
Admiral	60 years
Vice Admiral	58 years
Rear Admiral	57 years
Captain	55 years
Commander	50 years
Lt Commander & below	48 years
Tenure of Appointment
Chief of Naval Staff	3 years
Vice Admiral	3 years
Rear Admiral	3 years

TABLE III

AIR FORCE

Rank		Age limit for compulsory retirement
		Flying Branch	Other than Medical, Education & Meteorological Branches	Education Branch	Meteorological Branch
Squadron Leader & below		48	52	55	55
Wing Commander		48	52	55	55
Group Captain		50	55	55	55
Air Commodore		52	55	55	55
Air Vice Marshal		55	55	-	-
Air Marshal		56	56	-	-
Air Chief Marshal		58	-	-	-
Tenure of Appointment
Air Commodore	One or two tenures of 4 years each
Air Vice Marshal	One tenure of 4 years
Air Marshal	One tenure of 4 years
Air Chief Marshal	One tenure of 3 years

Although there are some variations in the age of compulsory retirement and tenure of appointments in a rank among the different groups of officers belonging to the three Services, as can be seen from the above tables and some groups of Service officers are also borne on special scales of pay, the pension rates prescribed are uniform for all Service officers of the same rank. The standard rates of pension for officers of the three Services in force from time to time are given in the table below: -

TABLE IV

(in rupees)

Rank	Between 1-6-53 and 16-4-56	Between 17-4-56 and 30-9-61	From 1-10-61	Post DCR Gratuity pension after 10-9-70
(1)	(2)	(3)	(4)	(5)
2^nd Lt/Lieut	275	275	300	272
Captain	350	350	425	377
Major	475	475	550	482
Lt Colonel	625	625	675	587
Colonel	675	675	750	638
Brigadier	725	800	825	696
Maj General	800	875	875	735
Lt General	900	900	900 (975 from 12.10.1970)	819
General	1000	1000	1000	840

The amounts in columns (4) and (5) of the above table are current rates of pension; rates in column (4) pertain to the amount of pension admissible where no DCR Gratuity is payable and those in column (5) to pension admissible in conjunction with DCR Gratuity.

7. Although the Services favour the continuance of the existing standard rate system, they have pointed out that the pension earned by a Service officer is related to the minimum prescribed for the rank and is not increased if the actual period of qualifying service rendered by him is more. They have also proposed that the rate of earning pension after the provision of the DCR Gratuity in the case of Service officers should be higher than that prescribed for the civilians. The Services have criticised the manner in which the compensatory element for early retirement has been provided in Service pensions and have pointed out that this element fixed in 1953 has not undergone any change despite subsequent revisions in pay scales and pensions.

8. We have first considered whether it is advantageous to continue for the Service officers the existing system of standard retiring pensions. Under this system, Service pensions are related to rank and the prescribed length of service but neither to emoluments nor to the Service beyond the prescribed period. As against this, the advantage is that it is simple, readily comprehended, and easily administered. It also leads to inter-Service uniformity and enables Service officers to earn the full pension for the rank without having necessarily to continue in service for that purpose till the age of compulsory retirement. The system, thus, deliberately does not provide an incentive to officers to stay on in service merely for the sake of earning a higher pension once they realise that their prospects for further promotion are not bright; to this extent it facilitates replacement of older men by younger men, and is conducive to efficiency. In view of these material advantages and the keenness of the Services to retain the existing system, we have formulated our recommendations within the framework of standard rates of pension relating to rank and the prescribed length of qualifying service. The main issue to be decided, therefore, is the manner in which the compensation element should be provided while determining Service pensions for officers based on the standard rate system.

9. Considering that officers are generally released from the Services when they are still physically and mentally fit for civil employment and when their experience can be utilised for some more years in gainful employment, the payment of pensions and other terminal benefits should not be viewed as absolving the Government of the responsibility to assist them in securing re-employment. It is heartening to note that more vigorous steps are now being taken to promote re-employment or resettlement of retired Service officers. Training course are also being arranged for the orientation o retiring and retired Service officers to improve their chances of securing civil employment. In certain cases, private firms have agreed to sponsor Service officers on the eve of their retirement for intensive management training at the Administrative Staff College of India. Provision already exists for re-employing officers in the para-military forces and opportunities are available to retired Service officers for re-employment in the various Defence organisations up to the age of 55 years subject to the availability of vacancies. We fully endorse the steps that have been taken, and would welcome more such measures so that the country can make the fullest use of officers released from the Armed Forces. Their past training and experience should be an asset, and we suggest that the Government should endeavour to make the transition from military to civil life as speedy and painless as possible. We feel that both psychologically and financially these persons, often in the prime of life, would find it more rewarding to serve as active and productive members of the community, rather than eke out an existence on a pension, which necessarily has to be small. It seems to us that more purposive and profitable efforts in these directions should be made by the Government so as to augment whatever pension is sanctioned. The pensionary benefits alone should not be looked upon as the means for compensating Service officers for early retirement. However, a regular pension, even if small, us useful as a standby and in time of adversity.

10. We accordingly fell that an additional benefit in explicit terms must be added to the pensionary benefits to compensate Service officers for their early retirement and liability to recall. In the existing standard rates of pension, the compensatory element for early termination of career and liability to recall does not seem to have been provided on any rational basis. The AFPRC could not apparently reach unanimous agreement on the rate of pensions for Service Officers and as many as three schedules of standard rates of pensions were suggested for Government’s consideration by the Chairman, the Services members and the Finance member of the AFPRC. According to the Ministry of Finance (Defence), the rates ultimately fixed by the Government were, in a way compromise rates and, at that time, it was not stated explicitly as to what quantum out of the standard rates of pension could be taken to be the compensatory element. The precise amounts of the compensatory element included in the standard rates were in fact worked out only in the year 1961 when it became necessary to revise pensions consequent upon the revision of pay scales. This was done by deducting from the standard rate the amount of pension including the pension equivalent of the DCR Gratuity that would have been admissible under the formula applicable to a civilian officer having the same pay and length of service. On this basis, the following amounts were estimated as representing the compensatory element in the standard rates of pension: -

Rank	Amount per month
Lieutenant	Rs 125
Captain	Rs 120
Major	Rs 122
Lt Colonel	Rs 120
Colonel	Rs 46
Brigadier	Rs 13

The above show that an amount of, more or less, equal value is taken as the compensatory element in the pensions prescribed for officers retiring in ranks up to Lieutenant Colonel after which there is a sharp drop in the case of the Colonel and the compensatory amount in the case of the Brigadier, is relatively small amount. It is thus clear that the compensatory element has not been built into the standard rates of pension on the basis of any scientific method.

11. The Services have suggested that after the introduction of the DCR Gratuity, the pensions of Services officers should be determined on the basis of 1/71 of pay multiplied by 30 on the ground that a Service officer should be given the benefit of the full length of service counted for civil pensions, viz., 30 years. A higher rate of earning pensions than for the civilians (1/80) has been suggested in case of Service officers on the ground that a smaller deduction is necessary in their case for providing DCR gratuity. We feel that the Service proposals on this point suffer from a number of defects. The provision of DCR Gratuity should now ben taken as the accepted pattern ad the rate of earning pensions determined on merits. The different sets of standard rates of pension suggested by AFPRC, or those ultimately prescribed by the Government, were not based on the principle that the rate of earning pensions in the case of Service officers should be 1/60 of emoluments for each year of service. It would not be proper, therefore, to start from the base of 1/60 or emoluments and derive the new rate of earning pension by making a deduction on account of the provisions of DCR Gratuity, We have given the reasons for preferring in the case of civilian the rate of 1/80 for the pensions earned in conjunction with DCR Gratuity and we feel that once DCR Gratuity on the civilian pattern is also provided for Service officers the rate of earning pensions on account of length of service in their case too should be the same, viz., 1/80, and the compensatory element for a truncated career provided in some other manner.

12. We do not also agree to the suggestion that in determining the standard rates of pension the maximum Service reckonable for civil pensioners should be adopted. It is true that civilians are able to count a longer period of service for pensions, which we have recommended should be increased from 30 to 33 years, but a civilian Government employee is entitled to pension only on completion of 30 years of qualifying service or on reaching the age of 55 years or more. Ordinarily, a civilian employee after earning full pension will be retiring at the age of 58 when he is not likely to find gainful employment afresh. In the case of Service officers retiring around the age 48-50, the chances of re-employment are relatively greater, and further the pension granted to them when aggregated over a larger average period for which it will be drawn may be more valuable, in actuarial terms. The Service proposal pays little regard to the length of service actually rendered. We do not think it would be appropriate to give benefit of 30 years service to all Service officers irrespective of the length of service actually prescribed for earning full pension of the Rank.

13. After much deliberation, we have reached the conclusion that the most appropriate method of providing a compensatory element in pension rates would be to add a certain number of years of service to the period of qualifying service prescribed for earning full pension for the various ranks and applying for each year of service the rate of 1/80 of the maximum pay fixed for that rank.

In the context of our conclusion that the standard rate system for the pension of Service officers should be continues, the weightage of additional years cannot be added to the length of service actually rendered but it has to be added to the minimum period prescribed for earning pension of the rank. Our calculations show that the two benefits in combination, viz., (a) taking the maximum of pay of the rank and (b) adding a period of 5 years, subject to the total not exceeding 33 years, would provide a reasonable degree of compensation. This approach can be adopted only for officers retiring in the rank of Brigadier or below. Further, in the case of Lt Colonel, we have found it necessary to give additional weightage in order to maintain comparability in the order of increase proposed over the existing pension rates in the Armed Forces and on the civil side. Thus, we have added an extra year for officers in the rank of Major and two years for officers in the rank of Captain or below. It is to be noted, however, that the chances of a Service officer retiring below the rank of major on a normal pension are remote and these rates have relevance mainly for determining the amounts of disability and invalid pensions. For senior officers, the pension will have to be determined on the basis of reasonable differential because in their case the pay of the rank exceeds the maximum of the emoluments reckoned for pensions on the civil side.

14. In accordance with the above principles, we recommend the following standard rates of pension for Service officers after provision of the DCR Gratuity: -

TABLE V

Rank	Minimum length of qualifying service	Proposed pension (Rs p.m.)
Subaltern	20 years	325
Captain	20 years	500
Major	22 years	625
Lt Colonel	24 years	700
Colonel	26 years	850
Brigadier	28 years	1000
Maj General	30 years	1050
Lt General	30 years	1100
General	30 years	1150

Based on reasonable differentials, we recommend for the officers on the Special List in the Army and on the Special Duties List of the Navy, the following standard pension rates:

TABLE VI

Rank	Minimum length of qualifying service	Pension (Rs p.m.)
		Existing	Proposed
Subaltern	20 years	247	300
Captain	20 years	352	475
Major	22 years	457	600
Lt Colonel	24 years	537	650
Colonel	26 years	588	800

15. In view of the revised scales proposed by us for officers of the Military Nursing Service, we recommend the following rates of standard retiring pensions:

TABLE VII

Rank	Minimum length of qualifying service	Pension (Rs p.m.)
		Existing	Proposed
Captain	20 years	150	325
Major	22 years	238	425
Lt Colonel	24 years	321	525
Colonel	26 years	378	625
Brigadier	28 years	483	725

Death-cum-Retirement Gratuity

16. The scheme of DCR Gratuity for Service officers modelled on the scheme already in force for the civilian officers was introduced in September, 1970. Therefore our recommendations (Please see Chapter 60) on the DCR Gratuity Scheme on the civil side should apply to the Service Officers also.

Retiring Gratuity

17. Retiring Gratuity is granted at the discretion of the President to officers permitted to retire after 10 years or more of service, but less than 20 years’ qualifying service, at the following rates: -

	Rate before deduction of DCR Gratuity	Rate after DCR Gratuity
For 10 years service	Rs 10, 000	Rs 10, 000 less 1 ½ month’s pay of the rank last held
For each additional year	Rs 1000	Rs 1000 less 1 month’s pay of rank last held

For officers of the Military Nursing Service, the minimum period of qualifying service is 10 years, which can be reduced to 5 years in the event of resignation on marriage, and the rate is Rs 500 for each completed year of service.

18. The Services have proposed changes in the conditions attaching to the grant of retiring gratuity and have also suggested that it should be treated as an entitlement and not a discretionary award. We do not think that the conditions attaching to the grant of retiring gratuity and the nature of this award are matters which, strictly speaking, should be covered by us. We, therefore, do not suggest any change in these respects. However, keeping in view the increases being suggested in the revised scales of pay, we recommend that the amount of retiring gratuity prior to reduction of DCR Gratuity should be enhanced from Rs 10, 000 to Rs 12, 000 for 10 years’ service and from Rs 1000 to Rs 1200 for each additional year of service; and in the case of MNS officers the rate should be enhanced from Rs 500 to Rs 600 for each completed year of service. We suggest no change in the scale of deductions for the DCR Gratuity.

Disability Pension

19. Disability pension is admissible to an officer if he is invalided from service on account of injury or illness, the cause of which is attributable to, or aggravated by, military service. The pension amount comprises two elements, viz., a service element, and a disability element. In case the service rendered is not less than the minimum period prescribed to earning a pension, pension element equals the amount of the retiring pension admissible. If however, the officer has not completed the service required for earning a pension, the service element is derived by making deductions from the retiring pension which would have been admissible on retirement in the appropriate rank at the following rates: -

Retiring pension (Rs, p.m)	Rate of deduction (Rs p.m)
1000-751	60
750-601	40
600-401	30
400-301	20
300-201	10
200 and below	5

The disability element is based on the percentage of the disability and not related to pay or rank. The amount ranges from Rs 170 for 100% disablement to Rs 34 for 20% disablement. In the case of officers of the Military Nursing Service, it ranges from Rs 142.50 per month for 100% disablement to Rs 28.50 for 20% disablement.

20. The Services have proposed that the deductions made in cases where an officer is disabled before completing the minimum period of service prescribed for earning a pension should not be at existing rates but at the rates prescribed for making a deduction in the case of Service officers who after completing the minimum service prescribed for earning pension have not completed the length of service prescribed for earning the pensions of rank in which they retire. The Services proposal in effect means reducing the existing rate of deductions to half their present value. We find that the AFPRC had allowed a service element to be counted for disability pension in such cases although under the standard rate system proposed by them no pension would normally have been admissible. This special consideration was shown because of the officer’s disability being attributable to, or aggravated by, military service. We also find that the existing scheme of making deductions for shortfall in qualifying service is comparable to the deductions made in the case of late entrants who are allowed a proportionate pension after completing 15 years service and retiring before completing 20 years service. We feel that no change is necessary in the existing provisions as regards the rate of deductions.

21. For all the disability element, the Services have proposed the amount of Rs 225 for 100% disability and proportionate amounts for lower degrees of disablement. We tried to ascertain from the Ministry of Defence the criteria taken into account for fixing the amount of the disability element and were informed that these rates were fixed ad hoc in relation perhaps to the amounts fixed for pension at that time. We recommend that the existing scheme under which the amount of disability element is a fixed amount which does not vary with rank but only with the degree of disablement expressed in percentage terms, should continue. Considering the increases in the service element of the disability pension consequent on the revisions made in the pension rates recommended by us, we feel that it would be adequate to increase the amount of the disability element from Rs 170 to Rs 200 for 100% disablement.

22. Officers invalided out of service for cause attributable to, or aggravated by, military service in cases where the degree of disablement is less than 20% get only invalid pension. The Services have argued that even though the degree of disablement attributable to military service may be less than 20%, the officer should not be treated at par with an officer invalided out of service for causes not attributable to military service. They have suggested that officers invalided out of service for less than 20% disability attributable to military service should be given at least the service element of the disability pension. We feel that this proposal is reasonable and recommend that in these cases the officer should be given disability pension equal to the service element, but without adding any amount as a disability element.

Constant Attendance Allowance

23. Officers invalided out of service with 100% disability attributable to, or aggravated by military service are entitled to a Constant Attendance Allowance of Rs 45 p.m. if such attendance is certified as necessary by the prescribed medical authority. The Expert Cell has asked for an increase of this allowance from Rs 45 to Rs 60 per month. We consider the proposal to be reasonable and recommend that the rate of Constant Attendance Allowance should be enhanced to Rs 60 per month.

Invalid Pension

24. Invalid pension is admissible to officers invalided out of service on account of causes neither attributable to, nor aggravated by military service. The table below indicates the benefits admissible under the invalid pension scheme introduced with effect from 1^st April 1964:

TABLE IX

Length of service	Entitlement
20 years or more	Normal retiring pension
10 years or more but less than 20 years	Proportionate pension at specified percentages ranging from 50% to 80% of the service element of disability pension.
Less than 10 years	Gratuity at the rate of one month’s pay for each year of service.

The specified percentages ranging from 50 to 80 per cent of the service element of disability pension at present allowed to officers with 10 years or more but less than 20 years of service are as under:

TABLE X

Service in years	2^nd Lt & Lieut	Captain & Major	Lt Colonel
Between 10-11	50	60	70
12-13	60	65	70
14-15	70	70	70
16-17	75	75	75
18-19	75	80	75

The Expert Cell has proposes that since the method of calculating service element in the case of disability pension itself allows the necessary deductions for lesser years of service, the above percentages should not be adopted for working out the invalid pension as it amounts to double deduction. The Cell has suggested the adoption of a uniform 80 per cent of the service element of the disability pension for officers with 10 years or more of service. In our opinion, the present system is unnecessarily complicated. We propose that the invalid pension should be determined at the flat rate of 75% of the service element of the disability pension.

Ordinary Family awards where death is due to Non-Attributable Causes

25. With effect from 1^st January, 1964, the Ordinary Family Pension Scheme for Service officers is based on the corresponding scheme on the civil side. The present linkage which is reasonable should be continued and our recommendations on ordinary family pension made in Chapter 60 should apply to the Service officers also. The Services have highlighted the fact that pension at enhanced rates under the Ordinary Family Pension Scheme is admissible to the surviving family of the deceased Service officer for the first 7 years or till the deceased officer would have reached the age of retirement appropriate to his rank. They have argued that since the ages of retirement of Service officers have been fixed below that of the civilians, the families of Service officers are placed at a disadvantage vis-à-vis the families of civilian officers. As proposed by us on the civil side, the case of Service officers also on ordinary family pension should be paid at double the rate for the first 7 years after the demise of the officer or till the date on which the deceased would have completed the age of 65 years, whichever is earlier.

Special Family Awards – Non battle casualties

26. The pensionary awards admissible to the family/dependents of an officer dying on causes attributable to military service, but not in any battle of specified operations, are as follows:

(a) Special family pension to the widow

in the absence of a widow, dependents’ pension to parents, and in their absence to brothers or sisters.

(b) Children’s allowance,

(d) Death gratuity.

(a) Special Family Pension and dependents’ pension

27. The rates of special family pension admissible to the widows of Service officers who die in attributable circumstances were laid down on an ad hoc basis in 1953, and were revised by the Kamath Committee in 1968 as indicated below:

TABLE XI

Rank	Rates fixed in 1953 (Rs)	Revised Rates in 1968 (Rs)
2^nd Lieutenant	150	170
Lieutenant	150	170
Captain	160	170
Major	180	220
Lt Colonel	220	270
Colonel	240	300
Brigadier	260	310
Maj General	300	350
Lt General	350	360
General	400	400

After the introduction of the DCR Gratuity Scheme for Service Officers, the above works out to 45% to 47% of the post DCRG pensions. The Expert Cell has proposed that the rates of special family pension to widows should be fixed at 60% of the post-DCRG retiring pensions.

28. As mentioned above, in the case of ordinary family awards where death is not attributable to military causes, the Services officers are governed by the same scheme as applicable to civilians. The Personnel below Officer Rank are already covered by the Extra-Ordinary Family Pension Scheme applicable to civilian personnel. We have, therefore, examined the need for continuing a special scheme applicable only to Service officers when death is caused by circumstances attributable to Service conditions. While doing so we were impressed by the desirability of treating the officers and men of the Armed Forces uniformly as far as possible. Having regard to the liberalisations we have recommended in the Extra-Ordinary Family Pension on the civil side, we think that that scheme as now modified could be adopted for Service officers also, as the benefits conferred by it do not compare unfavourably with those of the Special Scheme. We recommend accordingly.

29. In the absence of a widow, the dependents’ pension is admissible as under: -

(i) Both parents	75% of special family pension admissible to widows
(ii) One parent	75% of special family pension admissible to both parents
(iii) Brothers and sisters in the absence of parents	Rs 40 p.m. for each, subject to a maximum varying from Rs 85 to Rs 200 depending on the rank of the deceased officer.

The Services have not suggested any change in regard to items (i) and (ii) above. We also consider the existing provisions to be satisfactory and recommend that the existing percentages should be applied to the extraordinary family pension admissible to the widow in working out pensions admissible to both parents or one parent as the case may be, of the deceased officer. With regard to item (iii) above, the Services have proposed that the lower limit of Rs 85 should be raised to Rs 120. We find that these limits have been fixed for the various ranks at the rate of 50% of the special family pension admissible to the widow. We feel that this ratio is reasonable and recommend that in future the ceiling prescribed should be on the basis of 50% of the extraordinary family pension that would have been admissible to the widow. As regards the rate of Rs 40 per month for each brother or sister, we recommend that this amount should be raised to Rs 50 per month.

30. The Air Headquarters and the Expert Cell have referred to the existing practice of computing the dependents’ pension in the light of the ‘means limit’ and ‘support limit.’ In determining the amount of dependants’ pension, the income of parents, as also of the surviving brothers of the deceased officer are taken into account and suitable deductions made from the maximum pension otherwise payable to the dependent. The Services have emphasised that the existing provisions act harshly in many cases reducing the dependants’ pension to a negligible amount. We feel that a review of the existing provisions is called for in the changed social milieu, and the loosening of the old family bonds, in particular, the assumptions that a certain proportion of the income earned by a surviving brother of the deceased officer should be earmarked for the support of his parents does not strike us as being valid. The surviving brothers might have their own children and younger brothers to support, making it difficult for them to spare anything for their parents, any rigid formula, unrelated to particular family circumstances, may cause genuine hardship to a family which has already sacrificed much for the public weal.

(b) Children’s Allowance

31. For each surviving child of the deceased officer, an allowance at the rate of Rs 480 p.a. per child is admissible in case the mother is alive and at the rate of Rs 720 per annum per child in case of motherless children. The Services have proposed a 50% increase in the existing rates. Considering that these rates were revised in the year 1968, we feel that a 25% increase would be fair and reasonable. Accordingly, we suggest that the rate of children’s allowance should be increased to Rs 600 per annum per child if the mother is alive and to Rs 900 per annum per child in the case of motherless children.

32. Reimbursement of the actual expenses incurred on the education of children of the decease officer is now admissible subject to the limit of Rs 40 per months per child. The Services have proposes that this limit should be raised to Rs 60. We feel that a 25% increase in the rate would be adequate, and recommend that the limit should be raised to Rs 50 per month per child.

(d) Death Gratuity

33. In cases where the Service officer is killed in specified circumstances attributable to military service, his family is entitled to a death gratuity. The current rates of death gratuity which are related to rank were fixed on the recommendations of the Kamath Committee in the year 1968. The rates prevailing prior to the report of the Kamath Committee and the current rates are indicated in the table below:

TABLE XII

Rank	Rates (in existence before revision by Kamath Committee for widow or children (Rs)	Current rates as revised by Kamath Committee for widow or children (Rs)
2^nd Lieutenant	1335	2000
Lieutenant	2000	3000
Captain	2670	4500
Major	4000	6500
Lt Colonel	6000	8000
Colonel	8000	9500
Brigadier	10670	11000
Major General	13000	13000
Lt General	14500	14500
General	16000	16000

In case the deceased officer does not leave behind a widow or children the death gratuity is payable to the parents at half the above rates. While recommending the above rates, the Kamath Committee had taken note of the fact that in case f death occurring in flying accidents to a Service aircraft, an ex gratia award of 48 months pay or Rs 42000, whichever is less, was also payable to the family of the deceased officer, and the Committee recommended that the benefit of the revised rates of death gratuity should not be admissible in cases where death was due to a flying accident to a Service aircraft.

34. The Services have argued that any ex gratia award payable to the family of the deceased officer dying in a flying accident to a service aircraft should not be taken into account and only a single schedule or rates should be laid down for regulating the grant of the amount of death gratuity. We find that the provision of ex gratia award in the case of flying accidents has been necessitated due to certain factors extraneous to the Services, viz., that the next of kin of passengers killed in an air crash are entitled to receive the sum of Rs 42, 000 as compensation from the civilian carrier under the provisions of the Indian Carriage (By Air) Act 1934. The provision of death gratuity enable immediate financial assistance to the family of the deceased officer and where another substantial amount is also provided in a lump sum, it is not unreasonable to deny the benefit of the revised rate of death gratuity in such cases. We, therefore, do not recommend any change in this respect.

35. The services have also proposed that deaths taking place during diving operations or in accidents to submarines or in a parachute accident should be treated at par with casualties in flying accidents to service aircraft. We have already referred to the special circumstance which has necessitated the payment of ex gratia award when death occurs in a flying accident to a service aircraft. We are not satisfied that there is a case for extending the special provisions relating to flying accidents to deaths taking place in other circumstances. The award in the case of flying accidents is ex gratia and not an entitlement. We do not, therefore, suggest any change in this regard.

36. The Services have not proposed any change in the existing rates of death gratuity except for the suggestion that the rates of death gratuity in the case of subalterns should be the same as those for officers in the rank of Captain. We do not think any change is necessary in the current rates of death gratuity which were revised in the year 1968.

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II – Personnel Below Officer Rank

Aerial View

Tuesday, 2 February 2016

Report of the Third Pay Commission Volume III - Armed Forces Officers

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