Tuesday, 5 September 2017

A Few History Lessons and a Little of Logic



A Few History Lessons and a Little of Logic
On Pay Commissions and the Armed Forces

A page of history is worth a volume of logic
- Oliver Wendell Holmes Jr,

(Justice of the Supreme Court of the United States in case New York Trust vs. Eisner, 1921),

If history is important, it’s important to get it right. We need to understand what happened on the ground and what it meant then.

 - R. H. Helmholz, Distinguished Service Professor of Law of the University of Chicago Law School

Please Note: - Armed Forces mean the Army, Navy and Air Force of India. May they always succeed, even in the face of overwhelming odds.

The Background

1.       This post owes its thought process to the First Appellate Authority’s order in MODEF/A/2017/60319 in MODEF/R/2016/50746 and MODEF/R/2017/51245 in the quest for information that led to approval and publication of Resolutions 1(E) and 2 (E) dated 5th September 2016, and to the Additional Secretary, MoD who flagged the issue of increase in stages in the Defence Pay Matrix, and subsequent notes of officers on D (Pay/Services), MoD in particular to Level 13A and Military Service Pay leading to higher emoluments and pensions than those in Levels 14 to 17. 

2.      The persistent complex problem that successive Central Pay Commissions (CPCs/CPC) appear to have faced and still do is how to give the Armed Forces personnel ‘an edge.’ CPCs’ wish to recognise the sacrifices by the Armed Forces in lives, limbs, and decades of lives in the service of the Nation by giving that ‘edge’ usually monetary benefits that changed nomenclature with every successive Pay Commission.

Till 3rd CPC

3.       There was the Special Disturbance Allowance (SDA) for officers up to the rank of Brigadier and equivalent from the time of the Post War Pay Committee till the 4th CPC to compensate for the monetary loss due to reduction in pay after World War II. That is what the 3rd CPC states in its Report, Volume III, Paras 11 to 19 (available elsewhere on this blog).

4th and 5th CPC and the Group of Ministers (2005)

4.      The 4th and 5th CPC recommended the Rank Pay, again only up to the rank of Brig and equivalents. The 4th CPC recommended a convoluted procedure for fixation of Basic Pay, which was made more confounding by the 5th CPC. It needed the honourable Supreme Court to interpret the correct intention of the Pay Commissions, first on 8th March 2010 (TP (Civil) 56 of 2007) and again on 4th September 2012 (IA No. 9 of 2010 in TP (Civil) 56 of 2007). MoD went on to solicit opinions from the learned Solicitor General (now a judge of the Supreme Court) in September 2012 and Attorney General for India (since deceased) in September 2013 before implementing the order of the honourable Court in July 2014.

5.       The 5th CPC also brought, in its wake, a few more issues. In its introduction, the Cabinet Secretary Committee (CSC) of 2009 states as follows: -

2.6.   After the Fifth Pay Commission, an Inter-Ministerial Committee was set up in 2003 by the Department of Pension & Pensioners’ Welfare to consider the demand of ‘One Rank One Pension.’ The Committee in its report submitted on 24.9.2004 did not favour grant of ‘One Rank One Pension’ but recommended grant of modified parity based on the maximum of the revised scale of pay introduced with effect from 1.1.1996 for PBOR.

2.7.    Ministry of Finance did not agree with the proposal of the Ministry of Defence for implementation of the recommendations of the Committee. They observed that any departure from the principle laid down by the 5th CPC regarding modified parity, would be introduction (through a side door), of the one rank one pension system and the same should not be further modified to redress presumed injustice. The position was brought to the notice of (the) Prime Minister who directed that a Group of Ministers be constituted to consider the demand of one rank one pension. 

2.8.   Accordingly, a Group of Ministers (GOM) was constituted by the Government in January 2005 to look into the issue. After detailed deliberations on various aspects, the GOM felt that One Rank One Pension cannot be agreed to. However, there was justification for improving the pensionary benefits of the Personnel Below Officer Rank (PBOR), particularly the three lowest ranks.

2.9.   Finally, the GOM unanimously recommended that the pension of pre-1.1.1996 PBOR retirees may be revised with reference to maximum of post 1.1.1996 pay scales. In addition, the weight age of Sepoy, Naik and Havildar rank for past as well as future retirees be increased to 10, 8 and 6 years respectively subject to a maximum of qualifying service of 30 years. The benefit was given only for service pension. The benefit of the above recommendation took effect from 1.1.2006.

6th CPC

6.      The 6th CPC states in the Preface of its Report: -

Sixth Central Pay Commission is the first Central Pay Commission to be constituted in this century of rapid technological advances and after coming into force of the Right to Information (RTI) and Fiscal Responsibility and Budget Management (FRBM) Acts. The Government machinery, therefore, has to gear up for better performance under stricter fiscal discipline and delivery mechanisms. These imperatives are reflected in the Terms of Reference of the Sixth Central Pay Commission which made it incumbent on the Commission to recommend systemic changes for, (i) transforming the Central Government organizations into modern, professional and citizen friendly entities that are dedicated to the service of the people; and (ii) harmonizing functioning of the Central Government Organizations with the demands of the emerging global economic scenario (emphasis supplied).

7.       The Govt of India set up the 6th CPC in 2006 and the Govt and the affected employees and pensioners received the report in March 2008. It was followed by some, till then unprecedented events in the Armed Forces.

8.      The then Chairman, COSC flagged some issues, probably in 2008, with adequate vehemence, to invite the formation of a Group of Ministers (GoM) led by Shri Pranab Mukherjee, then External Affairs Minister (EAM), with Raksha Mantri, and Finance Minister as members.

9.      The Report of the Pranab Mukherjee Committee, as it came to be referred to, must not have assuaged the Armed Forces, because the PMO informed the MoD and the Armed Forces on 27th December 2008 that it would set up a separate Board or Commission to consider pay issues of the Armed Forces.

10.     So, after the Pranab Mukherjee Report, a Cabinet Secretary Committee (CSC) of 2009 dealt with issue of Pensions – OROP, Family Pensions, Disability pensions etc. It also quoted extensively from the Pranab Mukherjee Report (illogically (?) still marked CONFIDENTIAL!) to arrive at some recommendations. Those recommendations do not appear to have resolved many issues. But the Armed Forces requested the Govt permission to implement the recommendations of the 6th CPC subject to resolution of all outstanding issues.

11.     That the Armed Forces were not assuaged is apparent because the Govt constituted the CSC of 2012 which delivered its recommendations in August 2012, the most important of which were (a) that it did not recommend OROP and (b) that it recommends referring pay issues to the next CPC with those momentous words, “the Pay Commission is the expert body set up for this purpose which can examine these issues in a holistic manner” (emphasis supplied).   

12.     One of the main recommendations of the 6th CPC (Paras 2.3.12 and 2.3.13) was payment of Military Service pay for all ranks up to the rank of Brigadier and equivalent. The 6th CPC also stated that MSP would be considered as part of Pay and be considered for pension calculation but not for annual increments and status. Resolution of the Govt of India No. 1 (E) dated 30th August 2008, Annexure I, Part A, S No. 2 states, “….The Military Service Pay shall count as pay for all purposes except for computing the annual increment(s)” and Para 3 (g) of the Special Instructions for the Army, Navy and Air Force No. 2/S/2008 dated 11th October 2008. So, simply put (logically?) MSP is to be counted for everything including pension except (repeat) increments and status.

13.     Perhaps Justice (retd) B N Srikrishna, the Chairman of the 6th CPC did not consult Ms Madhulika P. Sukul, IDAS (1982), then Joint Secretary, who was in the Secretariat of the 6th CPC for her advice based on her expertise in Defence Finance for there isn’t any specific mention, or praise. (Just for information – Justice Srikrishna is Chairman of the Committee on Data Protection.)
 
14.     However, whoever advised the 6th CPC forgot the Ajai Vikram Singh Committee Report. More than a year before the 6th CPC was constituted in Oct 2006, the Ajai Vikram Singh Committee (AVSC) recommendations for shorter tenures in ranks up to Lt Col (and equivalents) were implemented w.e.f. 16th December 2004. The AVSC reduced the time frame of promotions as follows: -

Rank
Reckonable Years of Service

Pre AVSC
Post AVSC
Lt/Sub Lt/Fg Offr
On commissioning
On commissioning
Capt/Lt/Flt Lt
6 years
2 years
Maj/Lt Cdr/Sqn Ldr
11-13 years
6 years
Lt Col/Cdr/Wg Cdr
16-18 years
13 years
Col/Capt/Gp Capt (TS)
N/A
26 years

15.     With, or may be without taking the AVSC time frames into consideration, the 6th CPC recommended bunching Armed Forces into the following four Pay bands, on the similar lines as Civilian officers. After a few modifications by the Govt of India, the table looked like this: -

Rank
Pay Band
Limits of the Pay Band (Rs)
Minimum Pay (Rs)
Grade Pay
Military Service Pay
Lt/Sub Lt/Fg Offr
3
15600-31900
15600
5400
6000
Capt/Lt/Flt Lt
3
15600-31900
16860
6100
6000
Maj/Lt Cdr/Sqn Ldr
3
15600-31900
19320
6600
6000
Lt Col/Cdr/Wg Cdr
4
37400-67000
37400
8000
6000
Col/Capt/Gp Capt
4
37400-67000
40200
8700
6000
Brig/Cmde/Air Cmde
4
37400-67000
43390
8900
6000
Maj Gen/RADM/AVM
4
37400-67000
60700
10000
Nil
Lt Gen/VADM/AM
HAG
73000-79000
73000
Nil
Nil
Lt Gen/VADM/AM
HAG Plus
75500-80000
75500
Nil
Nil
VCOAS & Army Cdr and equivalents
Apex
80000 (Fixed)
80000
Nil
Nil

16.     It appears that effect of longer residual tenures in the ranks, even using rapid technological advances to have an arithmetical projection of the recommendations, appear to have been ignored. Running the proposed pay band GP, and MSP through a basic (Excel) spread sheet would have thrown up the astonishing effect of their recommendations. The maximum advantage was to three ranks i.e. Lt Col, Col and Brig and equivalents. The maximum detriment was to ranks of Maj Gen, Lt Gen and Lt Gen (HAG plus) and equivalent as the following table indicates: -

Item
Lt Col
Col
Brig
Maj Gen
Lt Gen (HAG)
Lt Gen (HAG +)
Vice Chief
Pay Band (PB)
37400-67000
60700-67000
75500-80000
80000 (Fixed)
Top of the PB
67000
67000
67000
67000
67000
80000
80000
Grade Pay
8000
8700
8900
10000
12000
Nil
Nil
MSP
6000
6000
6000
Nil
Nil
Nil
Nil
Total
81000
81700
81900
77000
79000
80000
80000
Maximum Pension (50%)
40500
40850
40950
38500
39500
40000
40000

17.     Using the same (Basic) Excel spreadsheet (and rounding off to the nearest Rs 10) vis-à-vis the years of service in ranks of Lt Col, Col and Brig & equivalent works out as follows: -


Rank
Lt Col/Cdr/Wg Cdr
Col/Capt/Gp Capt
Brig/Cmde/Air Cmde
Maj Gen/RADM/AVM
Level in Defence Pay Matrix of 7th CPC
12A
13
13A
14
Pay in the Pay Band
38530
46890
49390
50700
Grade Pay
8000
8700
8900
10000
Military Service Pay (MSP)
6000
6000
6000
0
Minimum Pay
PB+GP+MSP, if any
52530
55590
58290
60700
Increment/yr
3%
3%
3%
3%
Year in the rank
Promoted in 14th year
Promoted in 18th year*
Promoted in 23rd year*
Promoted in 29th year*
1
52530
55590
58290
60700
2
53930
57260
60040
62520
3
55360
58980
61840
64400
4
56850
60750
63690
66330
5
58370
62570
65610
68320
6
59940
64440
67570
70370
7
61560
66380
69600
72480
8
63230
68370
71690
73000
9
64940
70420
73840

10
66710
72530
76050

11
68530
74710
78340

12
70410
76950
80690

13
72340
79260
81900

14
74330
81700


15
76380



16
78490



17
81000




*        Further, in order in Civil Appeal No. 3208 of 2015 in UoI Vs Lt Col P K Choudhary & Others, the the following time frames for Select promotions have been quoted (Paras 4 and 18 refer): -


To Rank of
Years of service
Age before Command Exit Policy
Age after Command Exit Policy
Age Span
Colonel**
15-31
41-42
36-37
37-53
Brigadier
23-33
50-51
44-45
45-55
Maj Gen
29-35
54-55
51-52
51-55
Lt Gen
34-38
56-57
55-56
56-60

** Retirement ages for Time scale Gp Capt is 57 years (UoI Vs Gp Capt Atul Saxena and Others case in Civil Appeal Nos. 4717-19 of 2013 also refers).

18.     The consequence of the above pay band and Grade Pay, and MSP for Brig & equivalent and below has resulted in the following (information obtained through RTI from ref No. LW/SS/AT/RTI/45/Vol-V dated 29th August 2017 from PCDA (O), No. DCA/Pen-1/RTI/Vol II dated 9th August 2017 from JCDA (AF) and telephonic message from Air HQ (Dte of Account) where junior officers (feeder ranks/grades) are drawing more emoluments than their senior who are not entitled to MSP: -

         
Serving Officers as on 31.12.2015
Army
Navy*
Air Force
Lt Col & equivalent
PB 67000+GP 8000+ MSP 6000 = 81000
Nil
Nil
Nil
Colonel & equivalent
PB 67000+GP 8700 +MSP 6000 = 81700
124
Information Awaited
150
Brigadier & equivalent
PB 67000+GP 8900 + MSP 6000 = 81900
113
Information Awaited
77
*information awaited from Naval Pay Office

Retired Officers as on 31.12.2015
Army#
Navy#
Air Force
Lt Col & equivalent
PB 67000+GP 8000+ MSP 6000 = 81000; Therefore
Pension 40500
Nil
Information awaited
57
Colonel & equivalent
PB 67000+GP 8700 +MSP 6000 = 81700; Therefore Pension 40850
124
Information awaited
91
Brigadier & equivalent
PB 67000+GP 8900 + MSP 6000 = 81900; Therefore Pension 40950
113
Information awaited
37

# Information awaited from PCDA (P) and PCDA (N) in reply to First Appeals under the RTI Act, 2005

Two illogical questions: -

(1)     So the maximum pension for Lt Col, Col and Brig & equivalent would be Rs 40500, Rs 40850, and Rs 40950 not as given in Circular No. 555?

(2)     Will Circular 555 be amended as the average pensions as in 2013 is reflected and are to be enhanced periodically??

(3)            Is a judgement of the honourable Supreme Court required to be cited?

19.     History also records the honourable Supreme Court judgment in the UoI Vs SPS Vains & Others (Civil Appeal No. 5566 of 2008 decided on 9th September 2008 which was pithily summed up by the Bench of the High Court of Bihar with Judicature in Patna in UoI vs MMS Sinha as follows:

Writ Jurisdiction case No. 10757 of 2010 in the High Court of Judicature at Patna  in Shri MMP Sinha vs. Union of India judgment dated 18th May 2015: -

A simple but ticklish issue arises in this writ petition. The issue is whether a person retiring from a higher grade can receive pension less than a person retiring in the lower grade. Is it not arbitrary and in view of the Judgment of the Hon’ble Apex Court in the case of Union of India and Another Vs S P S Vains and Others since reported in (2008) 9 SCC 125, the person in the higher grade would have to be stepped up accordingly.

As the petitioner had retired in 1992, as per Railway Board’s notification, petitioner’s notional pay was fixed at the minimum of HAG (S-30) being Rs 67,000 without Grade Pay. The result was his pension was then fixed at 50% thereof being Rs 33, 500. On the other side, a person in (SAG) Grade S-29, which is an inferior and feeder grade for S-30, the Pay Band is Rs 37,400-67,000 but there is a Grade Pay entitlement of Rs 10,000/- Accordingly, petitioner points out the maximum of pension that can be paid in Grade S-29 would be Rs 67000+10000= 77000/- and half of it (50%) would be Rs 38500/-….

                                 Xxxx                          xxxx                              xxxx

          Hence, having considered the matter, the facts not being in dispute, as noted above, and the law not being in dispute, as noted above, the result is that the writ petition must succeed and the Judgment and order of the Central Administrative Tribunal, Patna Bench, Patna has to be set aside. It has to be held that the basic pension of the petitioner with effect from 01.01.2006 has to be stepped up to Rs 38,500 to avoid discrimination…..”   (Emphasis supplied).

[Note: - There is a bit of a ticklish issue in the implementation of the Order in the Vains case. It has been made applicable by MoD vide F No. 4 (140/2010/D(Pen/Legal) Vol II dated 10th August 2015 to 106 petitioners of the Army, Navy and Air Force, one amongst whom is Maj Gen Satbir Singh.]

And History Marches into the Seventh CPC

20.    The CSC of 2012 states in its Report dated 22nd August 2012

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(emphasis supplied). 

21.     The then Chairman, COSC took a decision on 13th September 2013, as noted in the MoD’s file, declining a Separate Board or Commission to resolve pay issues of the Armed Forces in reply to the offer of 27th December 2008 from the PMO: -

3.       In the aforesaid letter dated 13.09.2013, Chairman, COSC has brought out that revision of emoluments of the armed forces by a Central Pay Commission was taken up for the first time by the III Pay Commission in 1973. Prior to this, emoluments of armed forces were revised in piecemeal by Departmental Committees. These Committees were drawing reference from the award of I and II CPC actually depressed the pay, DA and CCA for conditions which were unique to the Services. Analysis of the experience of Departmental Committees vis-à-vis Central Pay Commissions indicates that a separate Pay Commission may not necessarily benefit the Services as anomalies invariably are bound to arise in both the cases. The fact is that non-resolution of anomalies or ex-parte resolution of anomalies that leads to dissatisfaction may have led to an inference that Armed Forces should have a separate Pay Commission.

22.    History has recorded that then Chairman COSC declined a separate Board or Commission to consider Pay issues of the Armed Forces but that was preceded by a judgement of the honourable Supreme Court (Writ Petition (Civil) No. 491 of 2010) in which the setting of the Armed Forces Grievance Redressal Commission was later rescinded in November 2011.

23.    Then came the 7th CPC and its expert on Defence Finance from the IDAS. MSP, hitherto being taken into consideration as part of Pay, except for calculation of increments and status and for pension was dropped from calculation of entry pay for the computation of the Defence Pay Matrix. No reasons are found in the 7th CPC, which is a voluminous tome, all of 800 pages or so! Ergo, the solution – simple, unclear and obviously wrong.   

24.    A reading of the 800 odd pages of the Report of the 7th CPC dated 19th November 2015 brings out certain aspects germane to this discussion. They are as follows: - 
         
(a)     The enthusiastic and generous praises heaped on Shri D K Rai, IDAS by the Chairman, 7th CPC with specific mention of the “deep insight in financial matters, especially the Defence” and, “a young officer from Accounts and Finance stream who had a deep insight into the financial matters especially, the defence. His knowledge about defence finance has been of great help to this Commission in determining the pay structure for the defence forces….” (page (iv) of the Acknowledgement part of the Commission’s Report).

(b)     One may decide if such fulsome praise was deserved, especially as none of the orders of honourable Courts delivered on pay and pensions such as in UoI Vs SPS Vains, UoI vs Lt Col N K Nair & Others, UoI Vs Gp Capt Atul Saxena  & Others, has found mention in the chapters concerning pay, allowances and pensions for Armed Forces (Chapters 5.2, Chapter 6, and Chapter 10.2 et al) up to 19th November 2015, the date the Report was handed over to the Finance Minister.  It also appears that Shri D K Rai was unaware or was not provided information that the 6th CPC pay bands, Grade Pay and MSP were already tearing apart the settled law that seniors cannot be paid lesser emoluments than juniors. 

(c)     Contrast this with the strong defence mounted by Shri Vivek Rae, Member of 7th CPC and retired IAS officer, on why the IAS must retain an edge over others. He mentioned in fair detail the Hon’ble Supreme Court of India order and judgment in Mohan Kumar Singhania and Ors. Vs. Union of India and Ors delivered on 13 September, 1991 (Para 7.2.20 on page 151 to 157 of the Report).

25.    7th CPC recommended a Pay Matrix for the Armed Forces (Chapter 5.2) which was improved by the Govt piecemeal –

On 5th September 2016, the MoD modified the Index of Rationalisation (IOR) for Brigadiers & equivalent (Level 13A) from 2.57 from 2.67, and added 2 more stages in the Level 13A and 3 stages each in Levels 12A (Lt Col & equivalent) and 13 (Col 7 equivalent).

On 5th May 2017, MoD issued the Army Pay Rules 2017, Air Force Pay Rules 2017 and Navy Pay Regulations 2017 separately for Officers and PBOR. However, the Defence Pay Matrix was set with IOR for Lt Col, and Col and equivalent at 2.57 instead of 2.67. 

On 6th July 2017, the MoD issued Army Officers Pay Rules (Amendment) 2017, Air Force Officers Pay Rules (Amendment), and Navy Officers Pay Regulations (Amendment) 2017 correcting the IOR to 2.67 for Lt Cols and Cols and equivalents. 

26.    At this point it is fair to pause and ponder over what Hegel, the German philosopher is supposed to have famously said that, “We learn from history that we never learn from history.” How true!

27.    The 7th CPC, in this realm of technological marvels, has relied on the staple food of Precedent, but with a minor change in the menu. Pay Bands and Grade Pay are now in Pay Matrices. MSP remains as a dessert but only for officers below the ranks of Maj Gen & equivalent, even though higher IoR for Maj Gens and equivalents and above has been justified on the grounds that these officers have (i) a significantly higher degree of responsibility and accountability... and (ii) (these Ranks) are those which are involved if policy formulation” (in 7th CPC Report at Para 5.2.8 – Rationalisation).

28.    Therefore, the 7th CPC has not recognised a fact that juniors must not draw more emoluments and pensions than seniors but they do as the table below show: -

Rank
Level in Defence Pay Matrix
Basic Pay in the Defence Pay Matrix
MSP
Range of Total emoluments
Pension at 50% of column 4
1

2
3
4
Minimum
Maximum
Lieutenant
10
56100-177500
15500
71600-193000
35800
96500
Captain
10B
61300-193900
15500
76800-209400
38400
104700
Major
11
69400-207200
15500
84900-222700
42450
111350
Lt Col
12A
121200-212400
15500
136700-227900
68350
113950
Colonel
13
130600-215900
15500
146100-231400
73050
115700
Brigadier
13A
139600-217600
15500
155100-233100
77550
116550
Maj Gen
14
144200-218200
Nil
144200-218200
72100
109100
Lt Gen (HAG)
15
182200-224100
Nil
182200-224100
91100
112050
Lt Gen (HAG+)
16
205400-224400
Nil
205400-224000
102700
112000
VCOAS
17
225000
Nil
225000 (Fixed)
112500
112500

29.              The following procedure extracted from Air Force Pay Rules for Officers, 2017, Part II, Section 4, Page No 19

12.     Fixation of Pay on Promotion or Upgradation on or after 1st  day of January, 2016The fixation of pay in case of promotion or upgradation from one Level to another in the revised pay structure shall be made in the following manner, namely: -     
         
xxxx                                        xxxx                                        xxxx

(iii)   In case of promotion of an officers from Level 13A to Level 14, increment shall be calculated on the pay in Level 13A being drawn immediately prior to promotion and the sum of the pay in the Level 13A plus the amount of increment for promotion plus Military Service Pay shall determine the pay in the Level 14 and the figure so arrived at will be located in the next higher Level 14, and if such an identical figure corresponds to any Cell in Level 14, the same shall be the pay in the revised pay structure and if the identical figure is not available in Level 14, the pay in the Pay Matrix shall be fixed at the immediate next higher Cell in Level 14 of the Pay Matrix. 

Illustration

1
Level in the revised pay structure  Level 13A
Levels
13
13A
14
2
Basic Pay in the revised pay structure: 171700
1
125700
139600
144200
3
Promoted to Major General in Level 14
2
129500
143800
148500
4
Pay in Level 13A after promotion increment: 176900
3
133400
148100
153000
5
MSP: 15500
4
137400
152500
157600
6
Adding S No. 4 and 5
192400




7
Pay fixed in Level 14: 193800
5
141500
157100
162300


6
145700
161800
167200


7
150100
166700
172200


8
154600
171700
177400


9
159200
176900
182700


10
164000
182200
188200


11
168900
187700
193800


12
174000
193300
199600

30.    And this is the amendment in Air Force Officers Pay (Amendment) Rules dated 6th July 2017 issued on MoD F No. 1(8)/2016-D (Pay/Services) Part I and similar Amendments in Army Officers Pay Rules 2017 and Navy Officers Pay Regulations 2017

2.      In the Air Force Pay Rules, 2017: -
         
(a) In Rule 3, in clause (g), the following Note shall be inserted, namely: -

Note: “In an kind of calculation which attempts to work with the maximum pay of a particular level the last figure of the Level shall not be calculated and the end-points of the Level, representing the possible highest and lowest pay in that level, may not be treated as the maximum and minimum of any closed pay scale, as used to prevail prior to the implementation of the 6th CPC.”

31.     However, the whole principle and procedure has been stood on its head as shown by the following live example: -  

Modified Illustration in case of Air Vice Marshal XXXX F (P). The amounts are extracted from pay matrix in Air Force Officers Pay (Amendment) Rules dated 6th July 2017 issued vide MoD F No. 1(8)/2016-D (Pay/Services) Part I: -

1
Level in the revised pay structure  Level 13A
Levels
13
13A
14
15
16


1
130600
139600
144200
182200
205400


2
134500
143800
148500
187700
211600


3
138500
148100
153000
193300
217900


4
142700
152500
157600
199100
224400


5
147000
157100
162300
205100



6
151400
161800
167200
211300



7
155900
166700
172200
217600



8
160600
171700
177400
224100



9
165400
176900
182700




10
170400
182200
188200


2
Basic Pay in the revised pay structure: 187700
11
175500
187700
193800


3
Promoted to Major General in Level 14; Pay in Level 13A after promotion increment: 193300
12
180800
193300
199600


4
MSP: 15500
13
186200
199100
205600


5
Adding S No. 4 and 5
208800
14
191800
205100
211800


6
Pay fixed in Level 14: 211800
15
197600
211300
218200


7

16
203500
217600





17
209600






18
215900





32.    The astonishing result is that all serving Air Marshals of Flying branch have been upgraded to Level 16. (CGDA UO No. AN/XIV/14114/RTI/Vol XI dated 21st August 2015 and Note 10 below Rule 7 of CCS (RP) Rules 2008 also refers)

In Conclusion

33.     The illogical part of this paper is the hope that someone will learn from history of the 6th and 7th CPC and the subsequent Govt approvals that: -

          (a)     There must be one or more Armed Forces representatives as Members of the CPC. They should be conversant with prevailing promotion policies, procedures and rules. Expertise in accounts and audit should be mandatory.

(b)     Rank/seniority/designation should not determine who these Armed Forces Members should be.

          (c)     Arithmetic of every proposal and recommendation must be run through a pre-audit procedure to determine if the arithmetic is correct and what the consequences would be. 

(d)     Illogically, but not disappointingly, CPCs’ are definitely not expert bodies, who use technology and available software to assist them to take a holistic view of something as abstract as pay, allowances and pensions of Armed Forces personnel. Why else would 7th CPC recommend a Special Duty Allowance, i.e. additional 30% of Basic Pay, for All India Services (and 10% for all other Central Govt employees) to serve in Ladakh and North Eastern States, which are part of India? It has been reduced to 10% of Basic Pay for all Central Govt employees vide MoF No. 11/1/2017-E.II(B) dated 18th July 2017, which also states that separate orders will be issued by MoD for Armed Forces.

Or will future Pay Commissions, without qualified Member(s) from the Armed Forces, prove how right H L Mencken was when he said, “For every complex problem there is an answer that is clear, simple, and wrong.”

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3 comments:

  1. Bravo Zulu Sir! Read it like a gripping story from beginning to end. Fact or fiction......it is a fact the our pay matters have always like treated like fiction by IDAS. If your analysis has, in any manner, reached the MOD, it will take them a few months to finalise the concordance tables. I am willing to wait till the cows come home-:)

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  2. Thank you. Just one bit of correction - everything is fact supported by cross-references for those who wish to check authenticity or those who wish to debunk History, Truth and Facts (not necessarily in that order!).

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  3. SIR,
    REALLY NICE WAY OF GETTING THINGS CORRECT.. BUT CAN V CORRECT OURSELVES AS SOCIETY IS THE QUESTION REMAINS.. OWN TURF WARS WILL BLEED THIS SHIP TOO ..
    REGARDS RAJA

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