RTI Request No.
DEXSW/R/2018/50005
for File Notings and other
Information relating to Para 3 of the
MoD letter dated 07 Nov 2015
for One Rank One Pension
* * * * * *
Note: For brevity, information available on
other websites is not re-produced here but the name of the website is given in
the appropriate places viz. Hon’ble Supreme Court for orders pertaining to Case
numbers mentioned. Readers are requested to go to that/those website(s) for
necessary information.
* * * * * *
Reply of Department of
Ex-Servicemen Welfare
Reference No. 237/RTI/D
(P/P)/2014 dated 1st March 2018
* * * * * *
Office of the
Controller General of Defence
Accounts, Ulan Batar
Road, Palam
Delhi Cantt – 110 010
Subject: Assumptions for OROP for preparation of tables for
rates of pension
Attention
of Ministry is invited to this HQ office email dated 11.9.2015 under which
certain assumptions on which decision was required for preparation of tables
indicating revised rates of pension in terms of Government decision to
implement OROP for Defence pensioners was forwarded to MoD for decision. Matter
was also discussed during meetings held in RM’s room on 15.9.2015 and 28.10.15.
However, decision/response on the same is awaited from MoD. The same may please
be expedited so that preparation of tables for rates of revised pension could
be worked out accordingly.
2. The issues involved in formulating revised rates of pension
in terms of announcement made by the Government on 5.9.2015 for grant of One
Rank One Pension to Defence Pensioners are again explained as under: -
2.1. Determination of Pension based on Maximum
and Minimum across three Services
In
terms of recommendations of CSC-12, pensions of JCO/OR pensioners are
calculated on the highest notional pay across three Services. The pay
structures for Commissioned Officers across three Services were same, hence
such dispensation was not considered for them in the past. As revised pension
has to be re-fixed for all pensioners retiring in the same rank and with the
same length of service as average of minimum and maximum pension in 2013, the
revised pension shall be determined across the three Services both for JCO/OR
and Commissioned Officers.
2.2. Method of calculation of pension across the
three Services
There
are two methods for calculation of average pension. In first method, the
minimum and maximum pension for each rank and each qualifying service could be
identified across the three Services, and then average determined for that rank
and qualifying service. In the second method, average or highest pension may be considered
between the three averages of minimum and maximum pension determined separately
for three Services. The minimum and maximum pension for each rank and
qualifying service shall be identified across the three Services and then
average of minimum and maximum pension shall be worked out. It is proposed to adopt the second method
(emphasis added by Aerial View).
2.3. Method for Blank data of retiree in year
2013
In
some ranks or groups or qualifying service, there are no retirees in year 2013.
Therefore, the following methodology shall be adopted for determining revised
pension for these ranks/groups/qualifying services:
(i) For
blank data of a Rank: Where data in any particular rank is not available at
all, protection in pension shall be allowed with reference to lower rank(s).
(ii) For
blank data in ‘X’ Group: Where data in group ‘X’ for any particular rank is
not available at all, pension shall be determined by adding Rs 700 (50% of X
Group Pay) in Group Y pension subject to protection with rates of pension
determined for Group ‘X’ in lower ranks. No blank for Group ‘Y’.
(iii) For
blank data of retiree in lower qualifying service for a rank: Where data in
a rank is available but the same is not available for certain lower qualifying
service, pension for lower service shall be determined by allowing cut of 3%
(compounded) for each completed year to the first rate available for any
qualifying service in the particular rank/group. Such reduction will be subject
to protection with rates of pension determined for lower rank(s)/group(s).
Anomalies
2.4. Method where rates of
proposed pension at lower qualifying service is higher than rates for higher
qualifying service in the same rank/group
As
per past practice, such kind of anomalies had been removed by stepping up
pension of higher qualifying service up to the level of pension of same
rank/group with lower qualifying service. Therefore, same methodology shall be
adopted for removing such anomalies.
2.5. Method where rates of
proposed pension in higher ranks is lower than rates for lower Rank(s) with
same qualifying service
As
above the methodology adopted in past for removing such anomalies, pension of
higher rank/group with same qualifying service shall be stepped up to the level
of pension of lower rank(s) (with identical group) with same qualifying
service.
2.6. Treatment of personnel benefited under
MACP/ACP scheme
From
1.9.2008 onwards JCO/OR personnel are getting 3 financial upgradations in scale
of higher rank under MACP scheme. These upgradations are allowed after 8/16/24
years of service subject to screening. However, rank of the personnel doesn’t
get changed.
The
MACP scheme has been introduced for Defence personnel based on recommendations of
Sixth CPC. Three financial upgradations
have been ensured in entire service tenure of personnel to avoid
stagnation subject to fulfilment of prescribed conditions. The Defence
personnel are provided with MACP benefit at 8, 16 & 24 years of service.
Personnel who complete a prescribed length of service and qualify for financial
upgradations are given the benefit of next higher grade pay as per orders. The
conditions for earning MACP benefit include performance ratings, vigilance
clearance and willingness for financial upgradations.
As
per existing policy, comparison is made between substantive rank or ranks with
grade pay given under MACP benefit. Personnel who earn MACP benefit are
considered against/placed alongside those in the higher rank with similar grade
pay. Historically, pension benefits available to higher substantive rank or
those placed in pay scale/grade pay due to ACP/MACP are not afforded to
personnel in a particular rank who have not qualified for financial upgradation
under MACP scheme.
The status
of grant of MACP benefits to Defence personnel in the sample data on 2103
across three Services is as follows:-
|
Rank in Army &
corresponding ranks in Navy & Air Force
|
Total retirees in
rank
|
Retired with pay of
substantive rank without financial upgradation
|
Retired with
financial upgradation under MACP scheme
|
% of retirees
getting MACP benefits
|
|
Sepoy
|
8806
|
319
|
8487
|
96.4
|
|
Naik
|
8147
|
2256
|
5891
|
72.3
|
|
Havildar
|
21481
|
10965
|
10516
|
48.9
|
|
Art – III-I (Navy)
|
11
|
1
|
10
|
90.9
|
|
Naib Subedar
|
3158
|
3107
|
51
|
1.67
|
|
Subedar
|
7982
|
7806
|
176
|
2.2
|
|
Sub Major
|
986
|
984
|
2
|
0.2
|
|
Total
|
50571
|
25438
|
25133
|
49.7
|
It could be perused from the
above that MACP benefit is not mandatory even after completing minimum service
to earn the same conditions. If benefit with reference to substantive rank is
calculated without any reference to higher grade pay accrued because of MACP
benefits (i.e. personnel drawing higher grade pay due to MACP upgradations) for
determining average pensions of 2013 retirees the average increase in pension for
Sepoy, Naik and Havildar further increase from Rs 1076, 1232 and 1293 to Rs
1433, 1576 and 1977 respectively. The comparative status is as follows:
|
Rank
|
Average existing
pension
|
Average proposed
pension
|
Increase in Basic
Pension
|
||
|
As per Grade pay*
|
As per substantive
rank
|
As per grade pay*
|
As per substantive
rank
|
||
|
Sepoy
|
5575
|
6650
|
7008
|
1076
|
1433
|
|
Naik
|
5878
|
7110
|
7454
|
1232
|
1576
|
|
Havildar
|
6338
|
7631
|
8315
|
1293
|
1977
|
|
Nb Sub
|
8250
|
8878
|
9584
|
628
|
1334
|
|
Subedar
|
9704
|
11137
|
11300
|
1433
|
1596
|
|
Sub Major
|
10938
|
13307
|
13307
|
2369
|
2369
|
* Already included in the earlier financial implication
The financial liability earlier
projected to MoD for implementation of OROP shall further increase as follows:
|
|
Including PMR Cases (in Rs crores)
|
Excluding PMR cases (in Rs crores
|
||
|
|
Annual fin
implication
|
Arrears from
1.7.14.to 31.12.15
|
Annual fin
implications
|
Arrears from 1.7.14
to 31.12.15
|
|
Implications by comparing equal grade pay (without MACP
earlier projected)
|
7123.38
|
10392.35
|
4439.77
|
6477.12
|
|
Revised implications wrt substantive ranks (by including
benefit of MACP of higher rank)
|
9411.71
|
13731.03
|
5736.88
|
8369.70
|
Hence
JCO/OR pensioners granted financial upgradations under MACP scheme shall be
considered with higher ranks as per the grade pay of the rank. The data
available for 2013 retirees shall be segregated with reference to grade pay and
not with reference to substantive rank last held. The personnel retiring with
higher grade pay due to financial upgradation shall be considered with higher
rank for determining revised pension.
All
ranks who have not earned MACP cannot be provided benefit of higher grade pay
for calculation of pension at par with those who have earned/qualified for
MACP, since such benefit was not admissible to them in the pay drawn by them
while in service.
2.7. Establishing linkage of family pension with
service pension
In
various types of family pension awards, data for number of beneficiaries are
either not available in calendar year 2013 or data available is very less. As
per recommendations of CSC-2012, a linkage of rate of all kinds of family
pension with rates of service pension in respect of JCO/OR pensioners has
already been established.
The
methodology already adopted on the recommendation of CSC-2012 shall continue
for all kinds of family pension viz, Ordinary, Special, Liberalised family
pension, 2nd life awards in respect of JCO/OR pensioners. Same
dispensation shall also be adopted for rates of family pension in respect of
commissioned officers.
2.8. Establishing linkage of disability pension
with service pension
As
per orders applicable for post-2006 disabled cases, rates for disability/war
injury element is linked with last pay drawn which is reduced pro rata for
lesser percentage of disability.
Rates
of disability/war injury element shall be linked with rates of revised
retiring/service pension. The rates of disability element shall be 60% of
retiring/service pension in each qualifying service for 100% disability. The
rates of war injury element shall be 120% of retiring/service pension
(discharge cases) and 200% of retiring/service pension (invalidment cases) in
each qualifying service for 100% disability.
2.9. Pension tables up to 33 years of
service/Terms of engagement
As
per existing formulation applicable to pre-2006 retirees, pension is determined
up to maximum terms of engagement for JCO/OR and up to 33 years of service for
Commissioned Officers despite the fact whether they have rendered service beyond that limit.
As
per present dispensation applicable to pre-2006 pensioners, the rates of
pension shall be determined only up to terms of engagement for JCO/OR and 33
years in case of Commissioned Officers. The proposed maximum pension determined
for rank/group shall also be allowed for higher qualifying service.
However,
in case of officers of the rank of Major General and above which gets their
rank at higher qualifying service, first available rate of pension at
qualifying service with 33 years or more, shall be treated as rates for 33
years of service subject to pro rata reduction for lower qualifying service.
[Readers, please Note: no longer applicable as may be seen
from PCDA Circular 568.]
2.10. Treatment for out layers
While
reviewing the data of post-2006 retirees at different points of time in the
past, it has been observed by Ministry that out layers should be removed from
the data to determine revised pension.
Before
determining minimum-maximum pension of pensioners retired in 2013, the out
layers should be excluded by identifying cases getting benefit of higher
pensions due to various Court decisions, extra increments/out of turn
promotions earned by individuals, direct entry in higher ranks or cut in rates
pf pay/pension due to punishments. Pension sanctioning agencies shall identify
minimum/maximum cases for each rank/group/qualifying service from their data
base and get it confirmed from respective Record offices/Pay Account offices to
exclude these cases from relevant data.
2.11. Benefits of OROP in Pre-mature Retirement
cases
As
per announcement made by the Government for OROP, personnel retiring
voluntarily/on own request are to be excluded from these benefits. Hence, cases
of PMR/VR shall also be excluded from the data of 2013 before determining
revised pensions.
Ministry
may take a decision for inclusion of PMR/voluntary retirement/retire on own
request in the data of 2013 before determining revised pension and convey the
same for our further action.
2.12. OROP for PSU absorbees
Methodology
for revision of PSU absorbees who had opted for 100% commutation of pension as
policy for 100% commutation is withdrawn from April 1996 and no such retiree
exists in 2013. Full pension of such retirees may be revised with reference to
revised pension determined for regular ranks (if decision to cover cases of
PMR/VR in purview of OROP is taken). However, existing restored amount of
pension shall continue as the methodology for the same has been finalised with
reference to Hon’ble SC judgment.
Sd/-----------
(Rozy Agarwal)
JT CGDA (Pension)
Smt K Damayanthi
Joint Secretary (ESW)
MoD, Deptt of ESW
South Block, New Delhi
No. 5699/AT-P/OROP/Vol-VIII
Dated 6th November 2015
Copy to:
Smt Devika Raghuvanshi
Addl FA (DR) & JS
MoD (Finance)
South Block, New Delhi – for information and action as above
* * * * * *
F No. 12 (01)/2014/D
(P/P)/Part II
-34-
Sub: Assumptions for OROP for preparation of
tables for rates of pension
Ref: CGDA I.D. No. 5699/AT-P/OROP/Vol-VIII dated
06.11.2015
Reference
preceding note which contains brief history of the case and I.D. No.
5699/AT-P/OROP/Vol VIII dated 06.11.2015 received from CGDA in respect of
Assumptions for OROP for preparation of tables for rates of pension.
2. CGDA vide UO No. 5699/AT-P/OROP/Vol-VIII dated 07.11.2015
had communicated that annual financial implication on account of grant of OROP
including PMR cases would be Rs 7123.38 crores. The financial implication on
account of arrears w.e.f. 01.07.2014 to 31.12.2015 would be Rs 10392.35 crores.
On obtaining the concurrence of FA (DS) in MoD (Fin) and approval of RM, the
order on One Rank One Pension (OROP) to Defence Forces personnel has been
issued on 07.11.2015 with the modifications as per Cabinet Secretariat I. D.
Note No. 144/1/1/2015-Cab dated 7.11.2015.
3. Assumption on which decision was required for preparation of
tables indicating revised rates of pension in terms of Government decision to
implement OROP for Defence Pensioners has been forwarded to MoD by CGDA vide UO
No. 5699/AT-P/OROP/Vol-VIII dated 06.11.2015.
The issues raised by CGDA in formulating revised rates of pension in
terms of announcement made by the Government for grant of OROP to Defence
Pensioners is explained as under: -
3.1. Determination of Pension based on Maximum
and Minimum across three Services
In
terms of recommendations of CSC-12, pensions of JCO/OR pensioners are
calculated on the highest notional pay across three Services. The pay
structures for Commissioned Officers across three Services were same, hence
such dispensation was not considered for them in the past. As revised pension
has to be re-fixed for all pensioners retiring in the same rank and with the
same length of service as average of minimum and maximum pension in 2013, the
revised pension shall be determined across the three Services both for JCO/OR
and Commissioned Officers.
3.2. Method of calculation of pension across the
three Services
There
are two methods for calculation of average pension. In first method, the
minimum and maximum pension for each rank and each qualifying service could be
identified across the three Services, and then average determined for that rank
and qualifying service. In the second method,
average or highest pension may be considered between the three averages
of minimum and maximum pension determined separately for three Services. The
minimum and maximum pension for each rank and qualifying service shall be
identified across the three Services and then average of minimum and maximum
pension shall be worked out. It is
proposed to adopt the second method (emphasis added by Aerial View).
3.3. Method for Blank data of retiree in year
2013
In
some ranks or groups or qualifying service, there are no retirees in year 2013.
Therefore, the following methodology shall be adopted for determining revised
pension for these ranks/groups/qualifying services:
(i) For
blank data of a Rank: Where data in any particular rank is not available at
all, protection in pension shall be allowed with reference to lower rank(s).
(ii) For
blank data in ‘X’ Group: Where data in group ‘X’ for any particular rank is
not available at all, pension shall be determined by adding Rs 700 (50% of X
Group Pay) in Group Y pension subject to protection with rates of pension
determined for Group ‘X’ in lower ranks. No blank for Group ‘Y’.
(iii) For
blank data of retiree in lower qualifying service for a rank: Where data in
a rank is available but the same is not available for certain lower qualifying
service, pension for lower service shall be determined by allowing cut of 3%
(compounded) for each completed year to the first rate available for any
qualifying service in the particular rank/group. Such reduction will be subject
to protection with rates of pension determined for lower rank(s)/group(s).
3.4. Method where rates of
proposed pension at lower qualifying service is higher than rates for higher
qualifying service in the same rank/group
As
per past practice, such kind of anomalies had been removed by stepping up
pension of higher qualifying service up to the level of pension of same rank/group
with lower qualifying service. Therefore, same methodology shall be adopted for
removing such anomalies.
3.5. Method where rates of
proposed pension in higher ranks is lower than rates for lower Rank(s) with
same qualifying service
As
above the methodology adopted in past for removing such anomalies, pension of
higher rank/group with same qualifying service shall be stepped up to the level
of pension of lower rank(s) (with identical group) with same qualifying
service.
3.6. Treatment of personnel benefited under
MACP/ACP scheme
From
1.9.2008 onwards JCO/OR personnel are getting 3 financial upgradations in scale
of higher rank under MACP scheme. These upgradations are allowed after 8/16/24
years of service subject to screening. However, rank of the personnel doesn’t
get changed.
The
MACP scheme has been introduced for Defence personnel based on recommendations
of Sixth CPC. Three financial upgradations
have been ensured in entire service tenure of personnel to avoid
stagnation subject to fulfilment of prescribed conditions. The Defence
personnel are provided with MACP benefit at 8, 16 & 24 years of service.
Personnel who complete a prescribed length of service and qualify for financial
upgradations are given the benefit of next higher grade pay as per orders. The
conditions for earning MACP benefit include performance ratings, vigilance
clearance and willingness for financial upgradations.
As
per existing policy, comparison is made between substantive rank or ranks with
grade pay given under MACP benefit. Personnel who earn MACP benefit are
considered against/placed alongside those in the higher rank with similar grade
pay. Historically, pension benefits available to higher substantive rank or
those placed in pay scale/grade pay due to ACP/MACP are not afforded to
personnel in a particular rank who have not qualified for financial upgradation
under MACP scheme.
The status
of grant of MACP benefits to Defence personnel in the sample data on 2103
across three Services is as follows:-
|
Rank in Army &
corresponding ranks in Navy & Air Force
|
Total retirees in
rank
|
Retired with pay of
substantive rank without financial upgradation
|
Retired with
financial upgradation under MACP scheme
|
% of retirees
getting MACP benefits
|
|
Sepoy
|
8806
|
319
|
8487
|
96.4
|
|
Naik
|
8147
|
2256
|
5891
|
72.3
|
|
Havildar
|
21481
|
10965
|
10516
|
48.9
|
|
Art – III-I (Navy)
|
11
|
1
|
10
|
90.9
|
|
Naib Subedar
|
3158
|
3107
|
51
|
1.67
|
|
Subedar
|
7982
|
7806
|
176
|
2.2
|
|
Sub Major
|
986
|
984
|
2
|
0.2
|
|
Total
|
50571
|
25438
|
25133
|
49.7
|
It could be perused from the
above that MACP benefit is not mandatory even after completing minimum service
to earn the same conditions. If benefit with reference to substantive rank is
calculated without any reference to higher grade pay accrued because of MACP
benefits (i.e. personnel drawing higher grade pay due to MACP upgradations) for
determining average pensions of 2013 retirees the average increase in pension
for Sepoy, Naik and Havildar further increase from Rs 1076, 1232 and 1293 to Rs
1433, 1576 and 1977 respectively. The comparative status is as follows:
|
Rank
|
Average existing
pension
|
Average proposed
pension
|
Increase in Basic
Pension
|
||
|
As per Grade pay*
|
As per substantive
rank
|
As per grade pay*
|
As per substantive
rank
|
||
|
Sepoy
|
5575
|
6650
|
7008
|
1076
|
1433
|
|
Naik
|
5878
|
7110
|
7454
|
1232
|
1576
|
|
Havildar
|
6338
|
7631
|
8315
|
1293
|
1977
|
|
Nb Sub
|
8250
|
8878
|
9584
|
628
|
1334
|
|
Subedar
|
9704
|
11137
|
11300
|
1433
|
1596
|
|
Sub Major
|
10938
|
13307
|
13307
|
2369
|
2369
|
* Already included in the earlier financial implication
The financial liability earlier
projected to MoD for implementation of OROP shall further increase as follows:
|
|
Including PMR Cases (in Rs crores)
|
Excluding PMR cases (in Rs crores
|
||
|
|
Annual fin
implication
|
Arrears from
1.7.14.to 31.12.15
|
Annual fin
implications
|
Arrears from 1.7.14
to 31.12.15
|
|
Implications by comparing equal grade pay (without MACP
earlier projected)
|
7123.38
|
10392.35
|
4439.77
|
6477.12
|
|
Revised implications wrt substantive ranks (by including
benefit of MACP of higher rank)
|
9411.71
|
13731.03
|
5736.88
|
8369.70
|
Hence
JCO/OR pensioners granted financial upgradations under MACP scheme shall be
considered with higher ranks as per the grade pay of the rank. The data
available for 2013 retirees shall be segregated with reference to grade pay and
not with reference to substantive rank last held. The personnel retiring with
higher grade pay due to financial upgradation shall be considered with higher
rank for determining revised pension.
All
ranks who have not earned MACP cannot be provided benefit of higher grade pay
for calculation of pension at par with those who have earned/qualified for
MACP, since such benefit was not admissible to them in the pay drawn by them
while in service.
3.7. Establishing linkage of family pension with
service pension
In
various types of family pension awards, data for number of beneficiaries are
either not available in calendar year 2013 or data available is very less. As
per recommendations of CSC-2012, a linkage of rate of all kinds of family
pension with rates of service pension in respect of JCO/OR pensioners has
already been established.
The
methodology already adopted on the recommendation of CSC-2012 shall continue
for all kinds of family pension viz, Ordinary, Special, Liberalised family
pension, 2nd life awards in respect of JCO/OR pensioners. Same
dispensation shall also be adopted for rates of family pension in respect of
commissioned officers.
3.8. Establishing linkage of disability pension
with service pension
As
per orders applicable for post-2006 disabled cases, rates for disability/war
injury element is linked with last pay drawn which is reduced pro rata for
lesser percentage of disability.
Rates
of disability/war injury element shall be linked with rates of revised
retiring/service pension. The rates of disability element shall be 60% of
retiring/service pension in each qualifying service for 100% disability. The
rates of war injury element shall be 120% of retiring/service pension
(discharge cases) and 200% of retiring/service pension (invalidment cases) in
each qualifying service for 100% disability.
3.9. Pension tables up to 33 years of
service/Terms of engagement
As
per existing formulation applicable to pre-2006 retirees, pension is determined
up to maximum terms of engagement for JCO/OR and up to 33 years of service for
Commissioned Officers despite the fact whether they have rendered service beyond that limit.
As
per present dispensation applicable to pre-2006 pensioners, the rates of
pension shall be determined only up to terms of engagement for JCO/OR and 33
years in case of Commissioned Officers. The proposed maximum pension determined
for rank/group shall also be allowed for higher qualifying service.
However,
in case of officers of the rank of Major General and above which gets their
rank at higher qualifying service, first available rate of pension at
qualifying service with 33 years or more, shall be treated as rates for 33
years of service subject to pro rata reduction for lower qualifying service.
[Readers, please Note: no longer applicable as may be seen
from PCDA Circular 568.]
3.10. Treatment for out layers
While
reviewing the data of post-2006 retirees at different points of time in the
past, it has been observed by Ministry that out layers should be removed from
the data to determine revised pension.
Before
determining minimum-maximum pension of pensioners retired in 2013, the out
layers should be excluded by identifying cases getting benefit of higher
pensions due to various Court decisions, extra increments/out of turn
promotions earned by individuals, direct entry in higher ranks or cut in rates
pf pay/pension due to punishments. Pension sanctioning agencies shall identify
minimum/maximum cases for each rank/group/qualifying service from their data
base and get it confirmed from respective Record offices/Pay Account offices to
exclude these cases from relevant data.
3.11. OROP for PSU absorbees
Methodology
for revision of PSU absorbees who had opted for 100% commutation of pension as
policy for 100% commutation is withdrawn from April 1996 and no such retiree
exists in 2013. Full pension of such retirees may be revised with reference to
revised pension determined for regular ranks (if decision to cover cases of
PMR/VR in purview of OROP is taken). However, existing restored amount of
pension shall continue as the methodology for the same has been finalised with
reference to Hon’ble SC judgment.
4. The Table 3 in Para 3.6 (reference para 2.6 of CGDA ID Note
dated 06.11.2015) has been modified in view of the Government’s announcement
regarding PMR cases and para 2.11 of the same has not been incorporated in
foregoing notes. The assumptions and financial implications as explained by
CGDA brought out in foregoing paragraphs are submitted for kind consideration
and soliciting concurrence of MoD (Fin) before submitting the file to the
Hon’ble RM for approval to refer the matter to Ministry of Finance.
SO (P/P) Sd/----------
Veena 16.11.15
US (P/P) Sd/----------
16/11
DS (Pen) Sd/----------
16/11
JS (ESW) The
issue was discussed in detail with CGDA team. Based on discussions note is
continued on next page. Sd/-----------
23/11/15
-39-
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Sl No.
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Issue involved
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Proposal of CGDA
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Observations of DESW
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1
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Whether the proposed pension is
to be determined with reference to entire data across three Services both for
JCO/OR and Commissioned Officers or otherwise.
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The revised pension shall be
determined with reference to entire data across three Services both for
JCO/OR and Commissioned Officers.
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The existing policy for
pre-2006 JCO/OR retirees viz. considering data across three Services may
continue.
Further, data across three
Services for Commissioned Officers should also be considered as the
pre-revised and revised pay structure under 5th /6th
CPC for Commissioned Officers across the three Services are identical. Hence
proposal of CGDA is recommended for approval.
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2
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Average of minimum and maximum
pension is to be determined separately for three Services and then
highest/average among the three Services to be allowed,
Or
Average of minimum and maximum pension
is to be determined with reference to entire data of three Services.
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The minimum and maximum pension
for each rank & qualifying service shall be identified in entire data of
three Services and then average of minimum and maximum pension shall be worked
out.
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With reference to comments as
at item (1) above, proposal of CGDA is recommended for approval.
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3
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Methodology to be adopted for
determining proposed pension for those ranks/groups where there are no
retirees in calendar year 2013.
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(i) Where data in any
particular rank is not available at all, protection in pension may be allowed
with reference to lower rank(s).
(ii) Where data in group X for
any particular rank is not available at all, pension may be determined by
adding Rs 700 (50% of X Group pay) in Group Y pension subject to protection
with rates of pension determined for Group X in lower rank(s).
(iii) As Rank/Group is not
available for lower qualifying service but available after certain length of
qualifying service, pension for lower service will be determined by allowing
cut of 3% (compounded) for each completed year to the first rate available
for any qualifying service in the particular rank/group subject to protection
with lower rank/group.
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(i) By applying the universal
formula for removal of this anomaly of a senior rank vis-Ã -vis his junior,
proposal of CGDA is recommended for approval.
(ii) Since the pay element viz.
Pay in pay band, grade pay and MSP for post-2006 JCOs/ORs in Group X draw X
Group Pay as additional element, proposal of CGDA is recommended for
approval.
(iii) Keeping in view the rate
of increment in pay (i.e. 3%) for completing one year of service, proposal of
CGDA is recommended for approval.
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4
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Protection of pension in higher
rank with lower rank(s) and higher qualifying service with lower qualifying
service(s).
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As per past practice, such kind
of anomalies had been removed by stepping up pension of higher qualifying
service up to the level of pension of same rank/group with lower qualifying
service and higher rank/group with same qualifying service with pension of
lower rank(s) (with identical group) with same qualifying service. Therefore,
same methodology shall be adopted for removing such anomalies.
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Keeping in view the similar
methodology adopted for removal of anomaly in MoD’s orders issued for
implementation of recommendations of 6th CPC, CSC-2009 and
CSC-2012, proposal of CGDA is recommended for approval.
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5
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Treatment of personnel
benefited under MACP/ACP scheme.
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JCO/OR pensioners retired in
2013 and granted financial upgradation under MACP scheme, shall be considered
with higher ranks as per grade pay drawn at the time of retirement and not
with reference to substantive rank last held. The personnel retiring with
higher grade pay due to financial upgradation shall be considered with higher
rank for determining pension.
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The ACP scheme was introduced
for Defence Forces in 2003 followed by MACP scheme in 2008 based on
recommendations of 5th and 6th CPC respectively. Based
on statistics provided by CGDA, there are retirees in various ranks of JCO/OR
who are not earning the benefit under MACP scheme even after completing
prescribed length of service due to non-fulfilment of required conditions.
Hence, no rational benefit to allow benefit of MACP to who have not earned
the same during service. In view of the same, the proposal of CGDA is
recommended for approval.
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Missing
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Incomplete/missing
(Note:
In preceding notes, the point about establishing linkage of family pension
with service pension precedes establishing linkage of disability pension with
service pension).
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…officers, shall be linked with
rates of Service pension as has been done for JCO/OR pensioners only in terms
of recommendations of CSC-2012
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….CGDA is recommended for
approval
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7
Corrected as 6
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Establishing linkage of
disability pension with service pension
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Since number of retirees
drawing disability pension are less, rates of disability/war/injury element
shall be linked with rates of revised retiring/service pension.
The rates of disability element
shall be 60% of retiring/service pension in each qualifying service for 100%
disability.
The rates of war injury element
shall be 120% of retiring/service pension (discharge cases) and 200% of
retiring/service pension (invalidment cases) in each qualifying service for
100% disability.
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As per orders applicable for
post-2006 disabled cases, rates for disability/war injury element is linked
with pay last drawn which is reduced pro rata for lesser percentage of
disability. However, under the OROP scheme announced vide (12 (1)/2014/D
(Pen/Pol) Part II dated 7.11.2015, service pension/retiring pension is not
linked to pay last drawn. Hence disability/war injury pension can no more be
calculated based on pay last drawn. Therefore, on the lines of CSC-2012 recommendations
where such linkage is already available for pre-2006 retirees for calculation
of family pension (sentence incomplete in original). Hence same
methodology can be adopted for calculation of disability/war injury pension.
Hence proposal of CGDA is recommended for approval.
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8
Corrected as 7
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Pension tables up to 33 years
of service/Terms of engagement.
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Rates of pension shall be
determined only up to the terms of engagement for JCO/OR and 33 years in case
of Commissioned Officers.
However, in case of officers of
the rank of Major General and above which get their rank at higher qualifying
service, first available rate of pension at qualifying service of 33 years or
more shall be treated as rates for 33 years of service subject to pro rata
reduction for lower qualifying service.
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As per present dispensation
applicable for pre-2006 pensioners, the proposal of CGDA is recommended for
approval.
[Note:
the pro-rata reduction has been nullified and communicated vide PCDA (P)
Circular No. 568 dated 13.10.2016.]
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9
Corrected as 8
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Treatment of Out Layers
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Before determining minimum-maximum pension
of pensioners retired in 2013, the out layers should be excluded by
identifying cases getting benefit of higher pensions due to various Court
decisions, extra increments/out of turn promotions earned by individuals,
direct entry in higher ranks or cut in rates pf pay/pension due to
punishments. Pension sanctioning agencies shall identify minimum/maximum
cases for each rank/group/qualifying service from their data base and get it
confirmed from respective Record offices/Pay Account offices to exclude these
cases from relevant data.
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The proposal of CGDA is (sic)
seems to be appropriate and is recommended for approval.
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10 corrected as 9
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Benefits of OROP in Pre-Mature
Retirement cases
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Ministry may take a decision
for inclusion of PMR/Voluntary retirement/retire on own request.
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MoD vide notification dated
7.11.2015 has amply clarified the issue hence no further decision is
required.
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11
Corrected as 10
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OROP to PSU absorbees
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Full pension n of such retirees
may be revised with reference to revised pension determined for regular
ranks. However, existing restored amount of pension shall continue as the
methodology for the same has been finalised with reference to Hon’ble SC judgment.
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Keeping in view the comments
offered as at item (10) above, proposal of CGDA is recommended for approval.
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The file is
submitted for approval of the above assumptions for the reasons mentioned in
the statement.
Sd/---------------------
(K Damayanthi)
Joint Secretary (ESW)
23.11.2015
Secretary, ESW Sd/--------------
24/11
MoD Finance JS & Addl FA (DR) – examine and put up.
-43-
Ministry of
Defence
Finance (Pension)
Ref
preceding notes.
Methods for
calculation of pension for implementation of One Rank One Pension proposed by
CGDA and recommended by D/o ESW has been concurred i. However, Department of
ESW is requested to obtain the views of DOP & PW being nodal Department.
2. This has the
approval of FA(DS).
Sd/-------------
(Virendra Kumar)
DFA (P)
Smt K Damayanthi IAS
JS (ESW)
MoD (Finance/Pension) ID No. PC I to 10 (11)/2012/FIN/PEN
dated 01/12/2015
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