Wednesday 10 August 2016

7th CPC - Approx Pensions - Officers

For Reference only; Not to be quoted for any purpose

Refer DP&PW orders for more information  


Prepared by Brig Vijay Raheja, Veteran, Signals Corps

Pay Band (6th CPC) 

Capts & Majors : Rs 15600-39100 + GP + MSP

Lt Cols to Brigs : Rs 37400-67000 + GP + MSP

Maj Gen: Rs 53000-67000 + GP Rs 10000

 

Rank
QS
Post 01 January 2016 Retiree
Pre 2016 Retiree
Total
Pension
Pension 7 CPC (2.57)
Pension
Pension 7 CPC (2.57)
Captain
3
28960
14480
37214
9007
23148
4
29650
14825
38100
9285
23862
5
30360
15180
39013
9572
24600
6
31100
15550
39964
9868
25361
7
31860
15930
40940
10173
26145
8
32640
16320
41942
10487
26952
9
33440
16720
42970
10811
27784
10
34270
17135
44037
11145
28643
11
35120
17560
45129
11489
29527
12
36000
18000
46260
11844
30439
13
36900
18450
47417
12210
31380
14
37830
18915
48612
12587
32349
15
38790
19395
49845
12976
33348
16



13377
34379
17



13790
35440
18



14216
36535
19



14655
37663
20



15108
38828
21



15575
40028
22



15575
40028
23



15575
40028
24



15945
40979
25



15945
40979
26



15945
40979
27



16201
41637
28-33



17010
43716




Rank
QS
Post 01 January 2016 Retiree
Pre 2016 Retiree
Total
Pension
Pension 7 CPC (2.57)
Pension
Pension 7 CPC (2.57)
Major
7
34230
17115
43986
17938
46101
8
35080
17540
45078
18492
47524
9
35960
17980
46209
19063
48992
10
36860
18430
47365
19652
50506
11
37790
18895
48560
20259
52066
12
38750
19375
49794
20885
53674
13
39740
19870
51066
21530
55332
14
40760
20380
52377
21530
55332
15
41810
20905
53726
21530
55332
16
42890
21445
55114
21530
55332
17



21530
55332
18



21530
55332
19



21530
55332
20



21530
55332
20



22830
58673
21-33



23815
61205



Rank
QS
Post 01 January 2016 Retiree
Pre 2016 Retiree
Total
Pension
Pension 7 CPC (2.57)
Pension
Pension 7 CPC (2.57)
Lt Col
14
51400
25700
66049
25990
66794
15
52770
26385
67809
26385
67809
16
54180
27090
69621
26385
67809
17
55630
27815
71485
26385
67809
18
57120
28560
73399
26385
67809
19
58660
29330
75378
26385
67809
20
60240
30120
77408
31305
80454
21
61870
30395
78115
31713
81502
22
63550
31775
81662
32428
83340
23
65280
32640
83885
32428
83340
24



32428
83340
25



32775
84232
26



32813
84329
27



33225
85388
28



33225
85388
29



33225
85388
30



33918
87169
31



34303
88159
32 &  32+



34765
89346



Rank
QS
Post 01 January 2016 Retiree
Pre 2016 Retiree
Total
Pension
Pension 7 CPC (2.57)
Pension
Pension 7 CPC (2.57)
Col
18
57820
28910
74299
30101
77360
19
59380
29690
76303
31031
79750
20
60990
30495
78372
31990
82214
21
62640
31320
80492
33320
85632
22
64340
32170
82677
33320
85632
23
66090
33045
84926
33685
86570
24
67900
33950
87252
33770
86789
25
69760
34880
89642
34485
88626
26
71680
35840
92109
34485
88626
27
73650
36825
94640
34835
90541
28



35230
90554
29



35235
92854
30-33



36130
92854

Rank
QS
Post 01 January 2016 Retiree
Pre 2016 Retiree
Total
Pension
Pension 7 CPC (2.57)
Pension 7 CPC (2.67)
Pension
Pension 7 CPC (2.57)
Brig
26
68120
34060
87534
90940
34799
89433
27
69990
34994
89935
93434
35874
92196
28
71910
35955
92404
96000
36420
93599
29
73890
36945
94949
98643
36425
93612
30
75930
37965
97570
101367
37275
95797
31
78030
39015
100269
104170
37280
95810
32
80190
40095
103044
107054
37280
95810
33
81900
40950
105242
109337
37570
96555
34
81900
40950
105242
109337
37570
96555
35
81900
40950
105242
109337
37570
96555

Rank
QS
Post 01 January 2016 Retiree
Pre 2016 Retiree
Total
Pension
Pension 7 CPC (2.57)
Pension 7 CPC (2.72)
Pension
Pension 7 CPC (2.57)
Maj Gen
30
71090
35545
91351
96682
37275
95797
31
73230
36615
94101
99593
37280
95810
32
75430
37715
96928
102585
37601
96635
33
77000
38500
98945
104720
38763
99621
34
77000
38500
98945
104720
38763
99621
35
77000
38500
98945
104720
38763
99621
36
77000
38500
98945
104720
38763
99621
37
77000
38500
98945
104720
38763
99621

Rank
QS
Post 01 January 2016 Retiree
Pre 2016 Retiree
Total
Pension
Pension 7 CPC (2.57)
Pension 7 CPC (2.72)
Pension
Pension 7 CPC (2.57)
Lt Gen
33
67000
33500
86100
91120
39500
101515
34
69010
34505
88700
93860
39500
101515
35
71080
35540
91340
96700
39500
101515
36
73210
36605
94100
99565
39500
101515
37
75400
37700
96890
102540
39500
101515
38
77000
38500
98945
104700
39500
101515
39
80000
40000
102800
108800
40000
102800


17 comments:

  1. Sir,
    Capt's pension QS 28-32 yrs & above as per OROP table No 1 is 17010. Pension as per 7thCPC should be 43716(17010*2.57).
    Rgds
    Lt Col R S Dasila

    ReplyDelete
  2. Please let me know why Lt Gen Rank officers are not included in the above table ????

    ReplyDelete
  3. Sir, The tables are a convenient source for getting the 2.57x calculation of pension.

    The table for post 01 Jan 2016 Lt Col retirees ends at a QS of 23 years, presumably because PB4 has been assumed to start at QS of 13 years and ending in 2016 at a QS of 23 years. But there might be Lt Col pensioners at QS of 24 and 25 years as well (then serving Lt Col who had transited from V CPC to VI CPC with QS of 14 and 15 years).

    In all this, it is always crucial to remember that the 2.57x calculation is only a starting point. In many cases it will yield pensions of a same-rank current pensioner with much less service than older retirees, especially pre December 2004 pensioners.

    Getting a correct fixation of levels and index numbers for older pensioners is vital. I had mentioned as much in a previous comment on one of your blog-posts https://goo.gl/zYcuJW

    ReplyDelete
  4. I have gone through your tables. I have two queries. Firstly pay commission has recommended that for pre Jan 2016 defence force retirees,the pension as had been fixed at the time of implementation of VI CPC , shall be be multiplied by 2.57. A similar letterchas also been issued for civilians. Which seems intentional.Then how tables have been prepared by multiplying orop pension, by 2.57, which was fixed on 1 Jul 14. My second query is regarding pay matrix. While preparing matrices, index 1 for various ranks has been worked out by multiplying entry pay of VI CPC by given multiplication factor. As I understand entry pay is same as min of pay in the pay band + grade. But actually except for Brigs ( from Majs to Maj Gens it is not same.Col's actual starting pay is 40890+8700= 49590. But it has been worked out for 48900. Similarly for other ranks it has been worked out on lesser amount. Can this be clarified ?

    ReplyDelete
    Replies
    1. Sir, the pension fixed on 01 Jul 14 is a derivative of the pension for officers in service from 1.1.2006 and for year 2013, with an increment for every additional year of service rendered.

      OROP amount, even if the average and not correct, is then VI CPC pension. Therefore, it has been multiplied by 2.57.

      The figures quoted by you are for Col (TS)i.e. in 26th year. Col (Select) in 18th year is Rs 41200.

      Finally, these are approximations and not the full and final amounts, which will happen 4 months from now when the Committee decides on Option II.

      Delete
    2. I think I have been able to make my point. My point is that why did pay commission chose to use that while fixing pension of pre 2006 armed forces basic pension fixed by 6th CPC as on 1.1.06 to be multiplied by 2.57 and why not pension as on 31 Dec 15. This would have covered all pre 2016 retirees without leaving iota of doubt.6th CPC clearly stated that pension as on 31dec05 to be multiplied by 2.86. It is our presumption that OROP will be cosidered as deritive of pension fixed on 1.1.06. Let us hope for the best.To me,there seems malafied intention. Secondly, I am talking of matrices of 7th cpc and not of tables prepared by Brig Raheja. As far as starting pay of different ranks shown at index 1 horizontally of 7th CPC has been fixed by multiplying with different factors to the starting pay of 6th CPC. Major Genarals pay has been derived by multiplying 53000 with2.72
      Starting pay of Major Gen as per army instr is 44700+GP 10000. Similarly it has been derived wrongly for others also except for Brigs. Lastly I don't think option 1/will be applicable to armed forces. As our orop has been fixed on total years of service and not on increments earned in last rank.

      Delete
    3. In first line for I have been able to read I have not been able to
      In 3rd line for pension of pre 2006 read for pension of pre 2016

      Delete
    4. Sir, due to the total lack of transparency as to how exactly OROP pensions were "fixed", it would be rash to say these were based on years of service, or increments, or some mysterious state in between. Just the example of OROP for Wg Cdrs / Lt Cols raises more than just a few questions https://goo.gl/AacYPX

      Delete
    5. @Pardaman Singh12 August 2016 at 15:45
      Sir,
      You said,
      “My second query is regarding pay matrix. While preparing matrices, index 1 for various ranks has been worked out by multiplying entry pay of VI CPC by given multiplication factor. As I understand entry pay is same as min of pay in the pay band + grade. But actually except for Brigs ( from Majs to Maj Gens it is not same”
      The Entry Pay(EP) was not arrived at by that procedure.
      Please see Report of the 7 CPC, Para.,
      5.1.12…………………………………………………………………………………..
      d. Entry Pay: Entry to any pay band could either be through an upward movement from
      a lower pay band or through direct entry. While the pay of persons moving from a lower
      pay band to a higher one on promotion would be regulated by the pay fixation
      formulation prescribed (pay was fixed at the minimum of the pay band plus grade pay),
      the VI CPC had recommended a separate entry pay for new recruits, taking into account
      the length of qualifying service prescribed by Department of Personnel and Training
      (DoPT) for movement from the first grade in the pay band to the grade in which
      recruitment was being made……………………………………………………………
      Please also see Para.,
      6.2.15 The Services, in their Memorandum, have stated that they have always enjoyed an edge
      in pay in form of higher starting salary, ever since the III CPC. The emolument structure of
      civil service officers and defence officers, over a thirty eight year service period, has been
      analysed. A simulation of the pay progression based on normative residency for defence
      service24
      24 Data on pay progression in case of Service Officers’ pay has been provided by the Services Pay Cells.
      Please see Para.,
      5.2.5 Entry Pay: The entry pay for various ranks of defence forces personnel, other than MNS
      Offices, has been arrived at on the same premise, as has been done in the case of civilian. As
      an illustration, entry pay for a Captain has been arrived at as follows:
      Entry pay in existing pay band + (Residency Period for promotion to Captain from Lieutenant
      x annual increment) + grade pay of the rank of Captain
      = ₹15,600 + (2 x ₹630) + ₹6,100 = ₹22,960.
      5.2.6 An exception to this approach has been made in the case of Brigadiers/equivalents where
      pay for the rank has been arrived at as per the fitment table notified by the Ministry of Defence
      through its Special Army Instructions of October 2008.
      It can be seen that a ‘normative residency period’ of two years was assumed from Lt.Col.(Level 12A) to Col (Level 13).
      Brig. ‘s pay (Level13A) was taken from SAI 2/S/08)
      The EP for Maj Gen was just equated to the EP of a GP 10000 of 6CPC, i.e., of the Level 14.
      It has to be seen how these ‘fixations’ will work when actual data is incorporated with ‘indexation’ figures (multiplication factors) and after addition of notional MSP to the basic pay.

      Delete
    6. Thanks for giving clarification for my second query. It has been explained beautifully. But I fail to understand as to why Brigs have been singled out. Why this differential treatment. It disturbs equation. Others should have been treated alike. I don't any thing against anyone.
      No one has answered my first query so far. To further illustrate my point.
      a Existing pension for fixing new pension was defined as pension as on 31/12/05 by 6th CPC.
      b Existing pay for fixing pay as per 7th cpc has been defined as pay as on 31/12/15.
      c Then why for fixing pension for pre 2016 pensioners it has been defined in both pay commission report both for civilians and armed forces and subsequent letters issued by the government as pension fixed by 6th CPC at the time of its implementation. It could have been defined as pension as on 31/12/15. It would have covered all pre 2016 retirees including OROP pension. Does not it show intentional malafied intention. I am keeping my fingers crossed.
      Col Pardaman Singh

      Delete
    7. All the Civilian personnel including CAPF who
      retired prior to 01.01.2016 (expected date of
      implementation of the Seventh CPC recommendations ) shall first be fixed in the Pay Matrix being recommended by this Commission, on the basis of the Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the matrix. This amount shall be raised, to arrive at the notional pay of the retiree, by adding the number of increments he /she had earned in that level while in service, at the
      rate of three percent. Fifty percent of the total
      amount so arrived at shall be the revised pension.
      (ii) The second calculation to be carried out is as follows. The pension, as had been fixed at the
      time of implementation of the VI CPC recommendations, shall be multiplied by 2.57 to
      arrive at an alternate value for the revised pension.
      (iii) Pensioners may be given the option of
      choosing whichever formulation is beneficial to
      them.

      Delete
    8. @Pardaman Singh20 August 2016 at 09:50
      Sir.
      You said,
      “ But I fail to understand as to why Brigs have been singled out. Why this differential treatment. It disturbs equation. Others should have been treated alike. I don't anything against anyone.”

      Yes. It could have been done that way. Col (Level 13) pay could have been incremented by two years (as was done in the Civil Pay Matrix) to arrive at the EP (Level 13A) of a Brig. Pay. This would have yielded,
      {(48900 X1.03) X1.03} +200=52078 which is very close to the table value of EP of Level 13A, that is the Brig., which is 52290.
      But this reasoning could have resulted in saying that there is no ‘normative residency period needed for promotion from Brig. to Maj. Gen since this 52078 when added by the difference in the GP of Brig and Maj. Gen., that is, 1100 would have taken the Maj.Gen ‘s EP to 53178 which is more than the EP of Civil Level 14!
      Probably the formula of ‘normative residency period’ was thus, not applied for arriving at the EP of a Brig.
      The above is an attempt to understand the making of the matrix.

      Delete
    9. @aerial view 20 August 2016
      Sir, my query still remains unanswered. I know two options for civilians. Similar options has been recommended by the pay commission for armed forces. First option has not been accepted by the government as yet. It has been referred to the select committee and for armed forces it will not be applicable as orop is based on total service and not increments earned in the last rank. My query is about the second option as to why pay commission and Government has mentioned that 2.57 factor is to be applied to the pension fixed by the sixth pay commission at the time of implementation and not pension as on 31 Dec 15 as was done by sixth CPC. Which bank will apply 2.57 to orop pension if similar words are used in our circular. To me there seems malafied intent whether you agree or not. Can anyone clarify my query?
      Col Pardaman Singh

      Delete
    10. Sir, the Justice Reddi committee is yet to recommend whether average of pensions based on residency in rank, i.e increment for each year in rank, of what you have stated i.e. based on total years of service and not increments in the last rank is correct.

      Option I i.e multiplication of the pension awarded on retirement by 2.57 applies till Option II is either found unsuitable for implementation or found more beneficial. You, and I and others have to wait for 4 months for that recommendation and Govt's decision.

      Delete