Tuesday 5 December 2017

Part I - File Notings SAI No. 1/S/2008 and 2/S/2008




Part I of the disclosures vide Reply No. 35(2)/2017/D (Pay/Services) dated 29 Nov 2017 received on 04 Dec 2017 is in connection with SAI 1 & 2/S/2008 on F No. 1(43)/2008/D (P/S)

  

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          The proposal on this file is for issuance of Special Army Instructions (SAIs) for revision of pay structure and fixation of pay consequent on Government decisions on acceptance of VI CPC instructions in respect of Army Officers and PBORs.



2.      Copies of the “Resolutions” of Ministry of Defence on acceptance of VI CPC recommendations, both for officers and PBORs are placed opposite. The draft SAIs furnished by the AHQ are also placed opposite. Corrections have been suggested  in these drafts by way of slips pasted, wherever considered necessary. Corrections have also been made in the fitment tables annexed to the drafts.



3.       The major issues requiring attention in the draft SAIs were discussed with JS (Pers) and other officers of Ministry of Finance. The corrections suggested are in pursuance of those discussions. The salient points of which corrections have been made in the drafts are mentioned below:



Ø     Rank Pay, which was shown in the drafts as being part of basic pay, has been defined in accordance with the decision of the GOO, as accepted by the Cabinet. 



Ø     MSP was also shown in the draft as being part of basic pay. This has also been suitably redefined in accordance with the MoD Resolution on acceptance of CPC recommendations.



Ø     Under the decision to allow Army Commanders’ pay to those Lt Generals who are otherwise considered eligible but are not being promoted for want of requisite residual service of two years, in the draft proposed by AHQ, there was no reference to the limit of 6 Lt Generals being given the Army Commanders’ pay. This limit has been incorporated, as referred to the CoS note accepted by the Cabinet. 



Ø     The issue of change in the rates of higher initial pay to AMC/ADC/RVC officers consequent to revision in the increment rate from 2.5% to 3% is separately under reference to the MoF. The higher pay shown in the draft is based on increments @ 3%.



Ø     The VI CPC recommendations and MoD Resolution are silent on the pay to be allowed to Field Marshal. The existing pay of Field Marshal is Rs 30000/-. It is proposed that Field Marshal may be allowed the revised pay of Rs 90000/-



Ø     The fitment tables in respect of Colonels and Brigadiers were specifically discussed with Director (IC), MoF. On consideration of parity with civilian cadres, the initial pay proposed for Cols and Brigs is proposed to be granted at par with Gr A Officers.



Ø     MSP is admissible up to the rank of Brigadier. For grant of initial pay to Major Generals and Lt Generals, however, the benefit of MSP would be allowed by notionally including an amount equal to MSP in the initial pay with effect from 1.1.06. However, the actual financial benefit in terms of arrears would accrue only from 1.9.08.



Ø     In the pre VI CPC dispensation, pay fixation on grant of Time scale rank to Cols was done by allowing basic pay of Col with rank pay of Lt Col. In the VI CPC structure, rank pay no longer exists. This issue was also accordingly brought up in detail in the discussions with MoF and a view was taken to allow Band Pay and Grade Pay of PB-4 on grant of Time Scale rank of Col.



Ø     In pre VI CPC dispensation, pay fixation on grant of Acting Rank is done by allowing basic pay and rank pay of higher Acting Rank if the officer has completed the qualifying service for substantive promotion to such higher rank. In the event of acting rank being allowed before completion of qualifying service for substantive promotion, only the rank pay of higher acting rank is allowed with basic pay of substantive rank. In pursuance to the discussions held in MoF, it is proposed to continue with the same arrangement. 



Ø     In the proposed draft, there are references to HAG+ pay scale, Assured Career Progression Scheme for Officers and applicability of FR 22 to army officers. These references have been deleted as these are not of any direct relevance to the case.



Ø     Para 13 (h) of the draft refers to minimum levels of initial pay to be allowed to officers. This portion of the draft is proposed to be deleted as this is not in accordance with any stipulations either in MoF instructions or in MoD Resolution.



4.      The draft SAIs on revision of pay structure and pay fixation of PBORs have also been scrutinised. The issues requiring attention are as follows:



Ø     In the proposed draft, the elements of MSP, Group Pay and Classification Allowance have been shown as being part of basic pay. On the lines mentioned above for officers, it is proposed to clarify that while these elements would count for benefits like pension etc these would not be treated as basic pay for pay fixation in higher grades, computation of increments and determination of status equivalence.



Ø     In the proposed draft, Para 14 (d) refers to fixation of minimum pay of direct recruits, as per illustration shown in Appendix G annexed to the draft. This is proposed to be deleted as this is not in accordance with either the general instructions of MoF or with the Resolution of MoD. 



Ø     Para 9 (a) (i) of the draft refers to benefit of pay fixation consequent on merger of Group Z into Group Y. As the MoF instructions and MoD Resolution do not refer to such a benefit, the proposed provisions have been suitably modified.



5.       In the light of the position stated above, the draft instructions on revision of pay structure and pay fixation of officers and PBORs of the Army have been suitably modified in consultation with Defence (Finance) and O/o CGDA. These may now be referred to Ministry of Finance for approval. On the basis of MoF’s approval to the proposed drafts, corresponding amendments would be made in the instructions for Navy and Air Force also. Before referring the file to Ministry of Finance, Def (Fin) may also kindly see for concurrence. 

Sd/----------------

(S C Bamma)

Director (AG)

04.10.2008

JS (E)

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          Although the draft Special Army Instructions have been formulated based on discussions with MoF, the different tables may be seen by MoF again especially with reference to the manner Rank Pay is to be taken into account for fitment purposes for all concerned ranks. 

         

          AS (M) may please see before we refer for concurrence of Def (Finance). We may thereafter show to Defence Secretary before referring to MoF.

Sd/------

4/10/08

AS (M)                 Sd/---------6/x



FA (DS)               Sd/--------6/10/08



Addl FA (S)

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Ministry of Defence (Finance)

Fin/AG



Ref preceding notes.



2.      Consequent on the Govt decisions on acceptance of VI CPC recommendations, AHQ have referred draft Army Instructions in revision of pay structure and fixation of pay of Army officers and PBORs. These drafts have already been examined in consultation with officers in DoD and O/o CGDA. Certain specific issues were also discussed with MoF, as mentioned in the preceding notes. 



3.       On the basis of joint consultations and discussions with MoF, modifications have been suggested, wherever considered necessary, as indicated in the drafts placed opposite and outlined in the preceding notes. The fitment tables annexed to the draft instructions were worked out by officers from CGDA’s office.



4.      At this atage, therefore, Def (Fin) have no objection in agreeing with the amended SAIs, as placed opposite. CGDA’s office are requested kindly to see and vet the two drafts placed opposite before they are referred to Ministry of Finance for final approval. The observations of JS (E) in the preceding notes regarding rank pay may also kindly be considered for specific comments.



5.       This would need to be given top priority as the instructions would need to issue well in time to allow disbursement of salaries for Oct 2008 on revised scales. 



6.                FA (DS) has been consulted.

Sd/---------------

(Shobhana Joshi)

Jt Secy & Addl FA

06.10.2008

Addl CGDA (Inspection)

O/o CGDA



-8-

Note missing



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Office of the Controller General of Defence Accounts

West Block –V, R K Puram, New Delhi – 110 066



          Ref: Preceding notes.



          The Draft Special Army Instruction for revision of pay based on the Government’s recommendation on 6th Central Pay Commission received in this office today at 1500 hrs has been examined. The amendments proposed in the Draft as indicated in Para 3 and 4 of Notings on Page 5 onwards have been seen and vetted with the following comments:



a.       Regarding specific comment on Rank Pay it is mentioned that the same has been found to have been correctly accounted for in the fitment tables. This HQs office has no objection to the amendments proposed to the definition of Rank Pay as included in para 1(a) of Draft SAI.



b.      On re-examination, it is suggested in Para 13(b) of the Draft Special Army Instruction be retained with the deletion of the words “Financial upgradation under Assured Career Progression and FR 22 (1) (a) (i).”



c.       The following may be added to the Note 7 below 7 (d) “the next increment after such stepping up of pay will be admissible on 1st July provided such stepping up of pay between 2nd July and 1st January of the previous year. However, if the stepping up of pay was between 2nd January and 30th June of a particular year, he shall get his next increment on 1st July of next year.  



2.      The under-mentioned issues will have to be addressed since their non-inclusion in the SAI 2/S/98 caused implementation problems and grievances:



          (i)      Pay fixation of NCC Officers



          (ii)    Pay fixation in respect of Re-employed Officers.



3.       The existing anomaly in pay on promotion to the rank of Col (TS) has not been resolved. Ministry of Defence / D (Pay/Services) ID No. 3(1)/2005/D (Pay/Services) dated 13.8.2008 refers. It is proposed that pay of such officers be fixed in PB-4 with Grade Pay of Rs 8700 as applicable to Colonel, with reference to the pay admissible in the rank of Colonel plus Stagnation Increment earned in the Grade of Lt Colonel. A revised pay fixation table has been prepared (for) such officers and placed opposite.



4.      Pay fixation tables in respect of PBORs of Group Z and Y have been revised keeping in view the illustration No. 4 (B) given in CCS RP Rules 2008.

Sd/----------------------

06/10/08

(Smt VEENA PRASAD)

Jt CGDA (Audit)

Smt Shobhana Joshi

Jt Secy and Addl FA



U.O. No. AT/1/1946/Vol-II dated 06.10.2008.



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(Aerial View: - Note number repeated in original file)



Ministry of Defence (Finance)

Fin/AG



          Ref preceding notes.



2.      The draft SAIs on revision of  pay structure and fixation of pay for Army Officers and PBORs were referred to O/o CGDA for vetting. Their comments in the preceding notes may kindly be seen. The O/o CGDA in Paras 2 and 3 of the preceding note would be attended to separately.



3.       FA (DS) may kindly see for concurrence before the file is returned to JS (E) for necessary further action to obtain approval of Ministry of Finance.



Sd/--------------

(Shobhana Joshi)

Jt Secy & Addl FA

FA (DS)      Concurred           Sd/---------------6/10/08



AS (M)                                             -9A-



          May please see for concurrence and vetting.

Sd/----------

7/x

JS (Pers) MoF





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Ministry of Finance

Department of Expenditure

(Implementation Cell)



          Ministry of Defence may please refer to the Draft Special Army Instruction for revised pay based on Government’s decision on the Report of Sixth Central Pay Commission for Commissioned Officers, including Officers of the Army Medical Corps, Army Dental Corps, Military Nursing Service and PBORs. The proposal has been examined and vetted subject to the following:  



For draft instructions regarding officers including officers of AMC and ADC:



i)       The table under paragraph 4 of the draft instructions containing the revised pay structure should have two distinct columns for indicating pre-revised pay scale and rank pay separately.  



          ii)      Para 4 (b) is repetitive and should be re-drafted.



iii)     Para 5 (e) relating to stipend to Gentlemen/Ladies cadets should in consonance with the recommendations of the 6th Central Pay Commission in this regard as contained in Para 4.10.96 of the Sixth CPC’s Report. However, if the existing provision is to allow the stipend for the entire duration, the same may continue.   



iv)     Under each fitment table, a note should be included with the formulation “Military Service Pay is to be paid with effect from 01/09/2008 and no arrears for MSP shall be drawn.”



v)      Fitment tables for MNS Officers should be issued separately after consultation with Army HQ, ensuring that the fitment as pn 1.1.06 for various stages in the pre-revised scales maintains the existing relativities between the pay of Armed Forces officers and MNS Officers of the rank of Colonel and above.



vi)     Fitment tables for Major/Lt Generals should indicate that once the element of MSP is merged with their basic pay, increments would be earned on the entire basic pay including the element of MSP merged. 



vii)    The calculation of DA on NPA for Doctors, Dental Surgeons, Veterinarians should be based on illustration 2 contained in CCS (RP) Rules 2008.



viii)   MoD may take a view whether in Para 10 (b), the maximum reached in PB-4 needs to include MSP as well, otherwise at the maximum of the Pay Band, in future Colonels and Brigadiers would draw more pay/pension than Lt Generals and Army Commanders i.e. pay of Rs 67000+8700+6000= Rs 81700/- in case of a Colonel and Rs 81900 in case of a Brigadier. 



ix)     Illustrations require amendments, which have been explained to officers of MoD/CGDA during discussions, and 


x)      Some corrections to the draft have been made in pencil, the same should be incorporated while finalising the instructions.



For draft instructions of PBORs:



I.       The fitment tables for ‘Z’ and Ý’ Groups should show the impact of bunching which has been allowed to civilian employees, and



II.      Some corrections to the draft have been made in pencil, the same should be incorporated while finalising the instructions.



2.      This issues with the approval of Secretary (E).

Sd/------------

11/x/08

(Alok Saxena)

Director (IC)

Ministry of Defence, Joint Secretary (E) Shri Ajay Tirkey

M/o Finance, D/o Expenditure U.O. No. 2674/JS (Per) dated 11.10.2008



Please issue today itself.                                    Sd/---------- 11/10/08



Dir AG

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The SAI for Officers and PBORs are placed below. We may issue after showing to Def Fin.

Sd/-------- 11/10/08

JS (E)



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Ministry of Defence

D (Pay/Services)



          Reference notes on pre-page.



          The Special Army Instructions in respect of Officers and PBORs have been corrected on the lines suggested by the Ministry of Finance in their note dated 11.10.2008. The corrected fair copy of these instructions have been shown to Shri Alok Saxena, Director (IC), Department of Expenditure and he has vetted the same.



Fair copies are placed below for signatures.

Sd/--------

(S.C. Sivaji Rao)

Under Secretary

11.10.2008

Dir (AG)

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JS (E)         Fair copies have been signed. AS (M) may also like to see.

Sd/------11/10/08

AS (M)

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The orders have been issued on 11.x. For kindnex-post facto approval.



Some issues have not been resolved viz: MNS pay, acting rank pay and anomalies in Col/Brig level pay. This is being taken up with MoF separately.

Sd/---------11/x

Defence Secretary

Sd/-------------

13.19.08

(Vijay Singh)

Defence Secretary

AS (M)    Sd/--------- 13/x



JS (E)    Sd/---------13/10/08



Dir (AG) in meeting



US (P/S)                      



Issued -------------Encl 14/A

Issued ------------ Encl 14/B



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