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
* * * * * *
-25-
As advised by the
Secretary, ESW, I attended the meeting held by JS (PMO), Shri Anurag Jain on
15.5.2015 along with Ms Devika Raghuvanshi, JS
& Addl FA. Based on the discussions, draft DO letter addressed to
CGDA for the required information is placed below for approval.
Sd/-------
K Damayanthi
19/05/15
Secretary (ESW) Please send letter asking information as
required by JS (PMO).
Sd/--------
20/05/15
DO letter sent to Addl CGDA. Sd/------------
20/5/15
K Damayanthi
Joint Secretary (ESW) Government
of India
Tele: 2301 1804 Ministry
of Defence
Department
of Ex-Servicemen Welfare New
Delhi – 110 011
D.O. No. 12 (1)/2015-D (Pen/Pol) Part II 20th May 2015
Dear Sir,
A meeting was held by
JS (PMO) with JS (ESW) on OROP. JS (PMO) desires to draw tables for pension
fixation by arriving at a notional pay of the pensioner as on 1.1.2006 for
pre-2006 pensioners as mentioned in SPS Vains case. You may like to work out
the same by using one of the two options given below:
Option I
By taking last drawn pay of the pensioner and pay scale from the PPO
to work out his pay over various pay commissions based on concordance tables
drawn for pay fixation.
Option II
By taking initial pension sanctioned to the pensioner, then work out
his last drawn pay by reversing the formula used at the time of his retirement
to work out his pension. Reverse calculation as per pay fixation tables to find
out how many increments he has earned in that pay scale or where he stands in
the concordance tables promulgated for pay fixation.
With regards
Yours sincerely,
Sd/---------
(K Damayanthi)
Shri A N Saxena
Addl CGDA
Office of the Controller General of
Defence Accounts,
Ulan Batar Road, Palam
New Delhi – 110010
* * * * *
Controller General of Defence Accounts
Ajay Mishra IDAS Ulan
Batar Road, Palam
Jt CGDA Delhi
Cantt – 110010
DO No. 5699/AT-P/OROP/Vol –IV
Dated 26th May 2015 (wrongly typed as 2014)
Dear Madam,
This is with
reference to your DO letter No. 12 (1)/2015-D (Pen/Pol) Part II dated 20th
May 2015 to draw tables for pension fixation by arriving at a notional pay of
the pensioner as on 1.1.2006 for pre-2006 pensioners as mentioned in SPS Vains
case.
2. The options provided
by JS (PMO) have been examined. It has been observed that in both the options,
methodology has been suggested to reach on pay last drawn by the Defence
personnel with reference to pension sanctioned. In this regard it is intimated
that prior to 1.1.2006, JCOs/ORs holding a rank for last 10 months preceding
retirement get their pension fixed on maximum of the pay scale of that
particular rank irrespective of the stage of pay being actually drawn in that
pay scale. There was no linkage of pay drawn and pension sanction for JCOs/ORs
who retire prior to 1.1.2006. Reverse calculation of pay from pension
sanctioned could only reach on maximum of prevalent pay scales. It is pertinent
to mention that in case of pre-2006 JCOs/ORs, pension has already been revised
on 50% of notional maximum of 6th CPC pay scales corresponding to
maximum of 5th CPC pay scales as per fitment tables with a linkage
to 33 years of service.
3. In case of
Commissioned officers retired prior to 1.1.2006, retiring pension was fixed
based on average of emoluments drawn during the last 10 months of service.
Hence, reverse calculation of pay from pension sanctioned would reach on
average emoluments drawn in last 10 months instead of last pay drawn. Further,
the concern in implementation of suggested methodology is that the officers
promoted to acting ranks get rank pay of higher rank with pay in pay scale of
substantive rank i.e. lower rank. However, if such officers get promoted to
acting rank after completion of minimum number of years of qualifying service
prescribed for promotion to substantive rank or complete prescribed service at
a later date, such officers get their pay fixed in the pay scale and rank pay
of higher acting rank actually held. It is pertinent to mention here that
acting rank promotions are very frequent in Armed Forces especially in field
areas. It is also intimated that officers were allowed weightage in years of
qualifying service. It ranges between 9 years for Lieutenant to 3 years for
General officers i.e. higher rank gets less weightage. There was also a
provision that pension of an officer should not be less than the pension that
would be admissible to him had he not been promoted to higher rank. Thus, in
lot of cases where an officer get promoted to higher ranks, his pension has
been sanctioned for lower rank being emoluments and rank weightage of lower
rank beneficial.
4. In view of the
foregoing, it is submitted for consideration of the Ministry that methodology suggested
for fixation of pay would not be appropriate to implement in the judgment of
SPS Vains case as the same could lead to lot of anomalies and representations
by aggrieved pensioners.
With regards
Yours sincerely,
Sd/----------
Ms K Damayanthi, IAS
Joint Secretary
Government of India
Ministry of Defence
Department of Ex-Servicemen Welfare
South Block, New Delhi – 110011
* * * * *
K Damayanthi
Joint Secretary (ESW) Government
of India
Tele: 2301 1804 Ministry
of Defence
Department
of Ex-Servicemen Welfare New
Delhi – 110 011
D.O. No. 12 (1)/2015-D (Pen/Pol) Part II 29.5. 2015
Dear Shri Ajay Mukharji,
I invite your
attention to your DO No. 5699/AT-P/OROP/Vol-IV dated 26.5.2015 regarding
preparation of tables for pension fixation by arriving at a notional pay of the
pensioner as on 1.1.2006 as mentioned in SPS Vains case.
2. As far as Para 2 is
concerned, as this Department understands, in case of JCOs/ORs, maximum of pay
scale of that particular rank irrespective of the stage of the pay being
actually drawn in that pay scale is already given to JCOs/ORs in the past and
with the implementation of CSC 12 maximum of the fitment table across three
Services has been granted. Hence, JCOs/ORs are already given more than what they
would be getting if notional pay fixation as per methodology given in SPS Vains
case is done except linkage with 33 years of service. The same may kindly be
confirmed.
3. With regard to the
Commissioned Officers, this Department appreciates the problem. However, it may
kindly be informed whether the problem explained in para 3 of your ibid letter
is applicable to all ranks or is limited to certain ranks only. It is
understood that while implementing Hon’ble Supreme Court judgment in Dhanapalan
case, CGDA has already done the exercise for re-fixation of pay of all officers
who were serving as on 1.1.1986. It is understood that this exercise is
completed, in that notional pay fixation and subsequent pension fixation for
officers as per the methodology given in SPS Vains case should be possible.
Ministry would like to have the rank-wise strength of pre-2006 officers
(Pensioners).
4. Reply may kindly be
sent by 1.6.2015 as PMO is pressing for the same.
With regards
Yours sincerely,
Sd/----------------------
K Damayanthi
Joint Secretary (ESW)
Shri Ajay Mukharji
Jt CGDA
CGDA, Ulan Batar Road, Palam
New Delhi – 110 010
* * * * *
Ajay Mishra IDAS Controller
General of Defence Accounts
Jt CGDA Ulan
Batar Road, Palam
New
Delhi -110 010
DO No. 5699/AT-P/OROP/Vol-IV
Dated 29th May 2015
Dear Madam,
This is with
reference to your DO letter No. 12 (1)/2015-D (Pen/Pol) – Part II dated 29th
May 2015 regarding preparation of tables for pension fixation by arriving at a
notional pay of the pensioner as on 1.1.2006 for pre-2006 pensioners as
mentioned in SPS Vains case.
2. The methodology/new
proposals suggested vide para 2 of ibid DO letter dated 29.5.2015 has been
examined. It is intimated that our comments were with reference to the methodology
suggested for reverse calculation of pay from pension fixed. It is, however,
confirmed that if linkage of service with 33 years is removed under existing
formulation for determining pension of pre-2006 JCO/OR pensioners, they will
get benefited to what they would be getting if notional pay fixation as per
methodology given in SPS Vains case is done. Ministry is, however, intimated
that due to suggested methodology all JCO/OR pensioners retiring in the same
rank and group would get same pension irrespective of their qualifying service.
Similar relaxation have to be allowed for post-2006 retirees as their pension
in terms of MoD’s letter dated 18.8.2009 (to determine pension of notional
maximum pay) also have linkage of pension with 33 years of service including
rank weightages.
3. In case of
Commissioned Officers it is confirmed that constraints mentioned in reverse
calculation are equally applicable for all ranks. However, it is confirmed that
in implementation of Hon’ble Supreme Court judgment in Dhanapalan case, pay for
officers in the rank of Captain to Brigadiers who were in service as on
1.1.1986 and got retired thereafter have been recomputed. Some of these
officers might have continued in service
after 1.1.2006. Hence, only those officers who get retired prior to
1.1.2006 could be readily available for re-fixation of notional pay as on
1.1.2006. Further, data in respect of pre-1996 retiree Major General officers
could also be utilised as their pay as on 1.1.1996 have been fixed in terms of
MoD letter dated 15.7.2009 issued in implementation of Hon’ble Supreme Court
judgment in Major General SPS Vains case. It is, however, pertinent to mention
here that out of a total of 45,243 identified strength of officers serving as
on 1.1.1986, 6315 cases are yet to be finalised for want of certain
information/records. Ministry may, however, be intimated that the officers who
get retired prior to 1.1.1986, and the officers who get retired with the rank
not covered by Dhanapalan judgement or are pending for implementation, will
take some time as special efforts have to be made for retrieving
records/information in such cases.
4. A statement indicating
strength of pre-2006 as well as post 2006 retirees pensioners for all ranks is enclosed herewith.
With regards
Yours sincerely,
A Mishra
Ms K Damayanthi,
IAS
Joint Secretary
Government of
India
Ministry of
Defence
Department of
Ex-Servicemen Welfare
South Block, New
Delhi - 110011
Statistics for Commissioned Officers
Pensioners
|
Rank
for Army & equivalent ranks in Navy & Air Force
|
Number
of pre-2006 retirees as on 1.4.2014
|
Number
of post-2006 retirees as on 1.4.2014
|
Total
|
|
1
|
2
|
3
|
4
|
|
Major
|
1294
|
107
|
1401
|
|
Lt Col
|
12490
|
3751
|
16241
|
|
Colonel
|
9037
|
3300
|
12337
|
|
Brigadier
|
7891
|
1307
|
9198
|
|
Maj Gen
|
3428
|
613
|
4041
|
|
Lt General
|
1266
|
111
|
1377
|
|
Total
|
35406
|
9189
|
44595
|
Reply from CGDA is received and the same
was informed to JS, PMO (Shri Anurag Jain). He did not agree with the response
sent by CGDA. This was discussed with JS & Addl FA (DR) as JS, PMO has
asked for a reply in 2 or 3 days. Based on the discussions, CGDA has, once
again, been requested to re-examine the issue and send the reply by 1.6.2015.
Submitted for favour of information.
Sd/-------
(K Damayanthi)
29/5/2015
Secretary ESW Sd/-----
1/6/15
JS (ESW)
As the JS, PMO (Shri Anurag Jain) has called for information on the
financial implications and the number of ESM likely to get the benefit, DO
letter addressed to CGDA is placed below for approval.
Sd/-------- 2/6/15
Secretary ESW Sd/-----------------
2/6/15
JS (ESW)
* * * * *
Prabhu Dayal Meena Government
of India
Secretary Ministry
of Defence
Department of Ex-Servicemen Welfare
South Block, New Delhi – 110 011
June 2, 2015
Dear Shri Mohanty,
A meeting on One Rank
One Pension was held by the Principal Secretary to the Prime Minister on
01.06.2015. PMO has been seeking information on the financial implication of
the OROP using the methodology given by the Hon’ble Supreme Court in SPS Vains
case (judgment dated 9.9.2008 in 5566 of 2008 titled Union of India Vs SPS
Vains & Ors) if followed. Also the number of E-Servicemen rank wise likely
to get the benefit from this methodology is being asked by the PMO. The same
was reiterated during the discussion. The required information may kindly be
sent at the earliest.
With Best Wishes
Yours sincerely,
Sd/--------------
(Prabhu Dayal Meena)
02/6/15
Shri S S Mohanty
Controller General of Defence Accounts,
Ulan Batar Road,
Delhi Cantt - 110010
* * * * * *
K Damayanthi
Joint Secretary (ESW)
Tel: 23011804
D.O. No. 12 (1)/2014-D (P/P) Pt II Dated
the 11th June 2015
Dear
Kind attention is
invited to D.O letter dated 2nd June 2015 of secretary, ESW to the
CGDA wherein it was requested to provide the financial implication of OROP
using the methodology given by the Hon’ble Supreme Court in SPS Vains case as
desired by the PMO. Also, the number of Ex-Servicemen rank-wise likely to get
the benefit from this methodology has been asked by the PMO. The required
information is yet to be received.
2. As the PMO is likely
to call for the above information at any time, it is requested to kindly
furnish the above information at the earliest.
With regards
Yours sincerely,
Sd/--------------
(K Damayanthi)
Shri A N Saxena
Addl CGDA
Office of the Controller General of Defence Accounts
Ulan Batar Road, Palam
New Delhi – 110010.
* * * * * *
Office of the Controller General of Defence
Accounts, Ulan Batar Road, Palam
New Delhi 110 010
Sub: Financial Implication on the basis of Hon’ble SC judgment dated
09.09.2008 in SPS Vains case
Ref: DO letter dated 02.06.2015 to CGDA
Kindly refer above
cited DO letter of Secy (ESW) for financial implication of OROP on the basis of
implementation of Hon’ble SC judgment dated 09.09.2008 in UoI Vs SPS Vains
& Others.
2. The financial
implication has been worked out in consultation with PCDA (P) Allahabad on the
basis of 2003 retirees data. The increase in service pension in each rank has
been worked out from 2003 retirees data and divided by total number of
individuals retired in that rank to arrive at per capita increase in service
pension in each rank. The financial implication on the basis of the above
parameters in respect of service pension only,
is as follows: -
For commissioned
officers: Rs 258.31 crore per annum
For PBORs: Rs
561.57 crore per annum.
3. The details
calculation sheets along with analysis for beneficial & non-beneficial
cases and assumptions taken to work out financial implication are attached as
Annexure A to E.
Sd/----------------
(A N Saxena)
Addl CGDA
Sh P D Meena, IAS
Secretary
Government of India
Ministry of Defence
Department of Ex-Servicemen Welfare
South Block, New Delhi – 110
011
No. 5699/AT-P/OROP/Vol-V
Dated 11th June 2015
Annexure A
|
FINANCIAL IMPLICATION ON THE BASIS OF
NOTIONAL FIXATION IN TERMS OF SAI 2/S/2008 CORRESPONDING TO PAY UNDER 5TH
CPC
|
||||||
|
Financial implication on grant of One
Rank One Pension to pre 1.1.2006 retirees Commissioned Officers (Armed
Forces)
|
||||||
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
|
Sl No
|
Rank of Army
|
Estimated number of Pre-2006 retirees
|
Average increase in pension
|
DR @ 113% applicable from 1.1.2015 of
column 4
|
Per Capita increase in Pension (Col 4+5)
|
Financial effect per year including DR
|
|
1
|
Major
|
1294
|
1531
|
1731
|
3262
|
50652336
|
|
2
|
Lt Col
|
12490
|
2844
|
3214
|
6058
|
907973040
|
|
3
|
Colonel
|
9037
|
2845
|
3215
|
6060
|
657170640
|
|
4
|
Brigadier
|
7891
|
2479
|
2802
|
5281
|
500068452
|
|
5
|
Maj Gen
|
3428
|
4262
|
4817
|
9079
|
373473744
|
|
6
|
Lt Gen
|
1266
|
2900
|
3277
|
6177
|
93840984
|
|
Total
|
|
35406
|
|
|
|
2583179196
|
TOTAL
Rs 258.31 crores
1. Revised pension has
been calculated on the basis of notional pay fixation as on 1.1.2006 as per
fitment table attached with SAI 2/S/2008 corresponding to pay under 5th
CPC.
2. The notional pay
varies from individual to individual. Therefore financial implication has been
calculated on the basis of data of officers retired in year 2003.
3. Average of per capita
increase in pension in each rank has been calculated and multiplied by
estimated number of pre-2006 pensioners in that rank.
Annexure B
|
Financial implication on notional
fixation of pay w.e.f. 1.1.2006 in r/o PBORs (Army)
|
||||||
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
|
Sl No
|
Rank of Army
|
Estimated number of Pre-2006 retirees
|
Average increase in pension
|
DR @ 113% applicable from 1.1.2015 of
column 4
|
Per Capita increase in Pension (Col 4+5)
|
Financial effect per year including DR
|
|
1
|
Sepoy
|
67161
|
298.13
|
337
|
635.13
|
511871591.16
|
|
2
|
Naik
|
500805
|
217.01
|
246
|
463.01
|
2782532676.60
|
|
3
|
Havildar
|
481891
|
169.47
|
192
|
361.47
|
2090269677.24
|
|
4
|
Nb Sub
|
70093
|
103.77
|
118
|
221.77
|
186534295.32
|
|
5
|
Sub
|
128101
|
11.48
|
13
|
24.48
|
37630949.76
|
|
6
|
Sub Maj
|
16177
|
16.35
|
19
|
35.35
|
6862283.40
|
|
Total
|
|
|
|
|
|
5615701473
|
Total Rs
561.57 crore
1. Revised pension has
been calculated on the basis of notional pay fixation as on 1.1.2006.
2. Revised rate of
pension varies from individual to individual. Financial implication has been
calculated from the data of 2003.
3. Per capita increase in
pension in each rank has been calculated and multiplied by all pre-2006
pensioners in that rank.
Annexure C
Analysis of beneficial &
non-beneficial cases if methodology of SPS Vains case is applied for revision
of pension based on notional pay as on 01.01.2006 to retirees Permanent Regular
Commissioned Officers (retired in year 2003)
|
S No.
|
Rank
|
Non-beneficial
cases
|
Beneficial
cases
|
Total no. of
retirees in 2003
|
Percentage
beneficial cases
|
Percentage
non-beneficial cases
|
Per Capita
increase in pension
|
Total No. of
pre-2006 retirees
|
Total
beneficial cases
|
|
1
|
Maj
|
4
|
154
|
158
|
97.47
|
2.53
|
1531
|
1294
|
1261
|
|
2
|
Lt Col/Lt Col
(TS)
|
15
|
701
|
716
|
97.91
|
2.09
|
2844
|
12490
|
12228
|
|
3
|
Col
|
4
|
199
|
203
|
98.03
|
1.97
|
2845
|
9037
|
8859
|
|
4
|
Brig
|
0
|
121
|
121
|
100
|
0
|
2479
|
7891
|
7891
|
|
5
|
Maj Gen
|
0
|
44
|
44
|
100
|
0
|
4262
|
3428
|
3428
|
|
6
|
Lt Gen
|
0
|
20
|
20
|
100
|
0
|
2900
|
1266
|
1266
|
|
|
|
|
|
|
|
|
|
35406
|
34934
|
Note: In case of Major, Lt Col and Col as shown above pension will
remain same as these officers were getting pay of minimum of the scale.
Annexure D
Analysis of beneficial and non-beneficial
cases if methodology of SPS Vains judgment is applied for revision of pension
based on notional pay as on 01.01.2006 for retiree PBORs retired in year 2003
|
S No.
|
Rank
|
Non-beneficial
cases
|
Beneficial
cases
|
Total no. of
retirees in 2003
|
Percentage
beneficial cases
|
Percentage
non-beneficial cases
|
Per Capita
increase in pension
|
Total No. of
pre-2006 retirees
|
Total
beneficial cases
|
|
1
|
Sep
|
182
|
2482
|
2664
|
93.17
|
6.83
|
298.13
|
67161
|
62573
|
|
2
|
Nk
|
4590
|
6668
|
11258
|
59.23
|
40.77
|
217.01
|
500805
|
296622
|
|
3
|
Hav
|
9656
|
6263
|
15919
|
39.34
|
60.66
|
169.47
|
481891
|
189590
|
|
4
|
N Sub
|
1182
|
225
|
1407
|
15,99
|
84.01
|
103.77
|
70093
|
11209
|
|
5
|
Sub
|
4321
|
65
|
4386
|
1.48
|
98.52
|
11.48
|
128101
|
1898
|
|
6
|
Sub Maj
|
389
|
7
|
396
|
1.77
|
98.23
|
16.35
|
16177
|
286
|
|
|
|
|
|
36030
|
|
|
|
1264228
|
562178
|
Annexure E
ASSUMPTIONS TAKEN TO WORK OUT FINANCIAL
IMPLICATIONS BASED ON METHODOLOGY IN SPS VAINS CASE AS PER HON’BLE SUPREME
COURT ORDER
(Calculation of Pension based on notional
Pay as on 01.01.2006 corresponding to pay under 6th CPC as per SAI
1/S/2008 and SAI 2/S/2008)
1. As per Hon’ble Supreme
Court order in SPS Vains case (Judgment dated 09.09.2008), the pay of affected
officers of ranks of Major General was to be fixed/re-fixed notionally as on
01.01.1996 by Pay Accounting Authority (PCDA (O) Pune) and on the basis of this
notional pay, pension was to be revised. Similarly, Pay Accounting Authority
had to fix the pay as on 01.01.2006 under 6th CPC.
2. In case the above
methodology is applied under 6th CPC, then notional pay in respect
of pre-96 retirees fixed as on 01.01.96 would be required for notional pay
fixation w.e.f. 01.01.2006.
Basis and Assumptions taken
for calculations of Financial Implication
ICOs
1. The notional pay as on
1.1.1996 is not available at this end for all ranks except Major General.
Further, pay drawn by the officers in same rank are different, therefore,
notional pay fixed as on 01.01.1996 would also be different and required to be
fixed in each case by Pay Accounting Authority.
2. Since notional pay as
on 01.01.1996 in case of officers, except Major General, is not available,
actual pay drawn by Permanent Regular Commissioned Officers retiring in the
year 2003 have been taken into account and their notional pay as on 01.01.2006
has been taken as pay shown in fitment table annexed with SAI 2/S/2008
corresponding to pay under V CPC for that rank.
3. There are 11 cases
where basic pay under 5th CPC is not matching with pay in stages in
respective scale due to acting rank and Major granted pay of Lt Col on
completion of 21 years of service. These cases have not been taken into account
to work out financial implementation.
4. 50% of above notional
pay has been taken as pension and difference of this pension and existing
pension as on 24.9.2012 has been obtained. The average of difference of pension
so obtained for each rank has been worked out and taken as average increase in
pension for that rank.
5. Notional pension fixed
as above has been deducted from existing pension of ICOs as on 24.09.2012 and
sum of the difference is taken as total increase in pension amount in
respective ranks.
6. The sum difference has
been divided by total number of ICOs retired in that rank and per capita
increase in pension has been worked out calculation of financial implication.
7. Financial implication
has been calculated by multiplying total number of pre-2006 retirees with per
capita increase in pension along with existing Dearness Relief i.e. 113% and
per annum financial implication has been worked out by multiplying the same
with 12 months.
PBOR
1. Data of 2003 retirees
has been taken from data base of this office.
2. Financial implication
in r/o PBORs has been prepared taking into consideration each rank and Group of
Sepoy, Naik, Havildar, Naib Subedar, Subedar, and Subedar Major excluding Naik
– TS, Hony Hav, Hony Nb Sub, Hony Lt and Hony Capt.
3. Out of total 63260
PBOR retirees )retired between 01.01.2003 and 31.12.2003) 36030 PBOR cases have
been analysed.
4. Notional pay for each
rank has been fixed according to fitment tables attached with SAI 1/S/2208.
5. Service pension has
been worked out at 50% of notional pay as mentioned above (4) without reducing
qualifying service i.e. pension for lesser qualifying service has not been
reduced proportionately.
6. Notional pension fixed
as above has been deducted from existing pension of PBORs (w.e.f. 24.9.2012)
and sum of the difference is taken as total increase in pension amount in
respective ranks.
7. The sum of difference
has been divided by total number of PBORs retired in that rank and per capita
increase in pension has been worked out for calculation of financial
implication.
8. Financial implication
has been calculated by multiplying total number of pre-2006 retirees with per
capita increase in pension along with Dearness relief i.e. 113% and per annum
financial implication has been worked out by multiplying the same with 12
months.
Reason for Notional Pay
Fixation beneficial in PBOR cases: -
The methodology of notional pay fixation is beneficial in lower ranks
having less qualifying service and ‘X’ Group holders. This is due to the reason
that the existing pension has been worked out @ 50% of notional maximum of the
fitment tables of ranks and groups across three Services for 33 years
qualifying service. However, for lesser qualifying service, the amount of
pension had been reduced pro rata. In the cases of lower ranked PBOR retirees
having lesser qualifying service, notional pay fixation is beneficial due to
the reason that pro rata method has not been taken into consideration while
preparing notional pension fixation. Therefore, in case of allowing the benefit
of 33 years qualifying service to each rank irrespective of actual qualifying
service in most of the cases, notional pay fixation will not be
beneficial.
Reasons for Notional Pay
fixation – Beneficial in ICOs cases
As the existing pension of ICos as on 24.9.2012 has been determined on
the basis of minimum of the fitment table, therefore, notional pay/pension is
beneficial in almost all pre-2006 cases.
F No. 12 (1)/2014 – D (P/P) Part II
-27-
As desired by JS to
PM on 1.6.2015, financial implication of OROP using the methodology given by
Hon’ble Supreme Court in SPS Vains case for 2003 retirees has been received
from CGDA and the same has been sent to JS to PM. He desired to have 50 cases
of PBORs & Officers (randomly taken) for each period (i.e. pre-1986 cases,
1986-1997 cases, post 1996 cases( be taken up and financial implications be worked
out. Accordingly, a draft DO letter addressed to CGDA is placed below for
favour of approval.
Sd/---------------
(K Damayanthi)
Joint Secretary (ESW)
15.6.2015
Secretary (ESW) Sd/---------
23/6/15
JS (ESW) Sd/---------
23/6/2015
* * * * * *
Prabhu Dayal Meena Government
of India
Secretary Ministry
of Defence
Department
of Ex-Servicemen Welfare
South
Block, New Delhi – 110 010
D.O. No. 12 (1)/2014- D (P/P)/Part II 23rd
June 2015
Dear Shri Mohanty,
In invite your attention
to the D.O. letter No. 5699/80-P/OROP/Vol-V dated 11.2.2015 of Additional CGDA
regarding the financial implication of OROP on the basis of the methodology
given by Hon’ble Supreme Court‘s judgment dated 9.9.2008 in SPS Vains case and
along with the analysis and the same has been sent to the PMO. Regarding
additional information asked by PMO has been informed by JS (ESW) to the Addl
CGDA on 15.06.2015 followed by email dated 22.06.2015.
2. As per this, PMO
desires to have an analysis of beneficial and non-beneficial cases given in
Annexure A to D for the 50 cases taken randomly for the various Pay Commission
periods for JCOs/ORs and officers each for pre-1985 cases, 1986 to 1995 cases,
1995 to 2003 cases.
3. I request you to
kindly arrange to provide the above information at the earliest.
With Best Wishes
Yours sincerely,
Sd/---------------
Shri S S Mohanty
Controller General of Defence Accounts
Ulan Batar Road, Delhi Cantt
New Delhi – 110010
-29-
Ministry of Defence
(Department of Ex-Servicemen Welfare)
D (Pension/Policy)
Subject: Implementation of One Rank One
Pension - Draft Note for the Cabinet
The Ex-Servicemen
Associations have been demanding for several years the same pension which is
granted to new pensioners with same rank and with same length of service. This
is popularly known as ‘one rank one pension.’ The acceptance of the principle
of One Rank One Pension for the Defence Forces personnel has been announced by
the Government. One Rank One Pension implies that uniform pension be paid to
the Armed Forces personnel retiring in the same rank with the same length of
service irrespective of their date of retirement and any future enhancement in
the rates of pension to be automatically passed on to the past pensioners. This
implies bridging the gap between the rate of pension of the current pensioners
and the past pensioners and also future enhancements in the rate of pension to
be automatically passed on to past pensioners.
2. Defence Secretary has
directed to submit a note on OROP for consideration and approval of the Cabinet
under Rule 12 of Government of India (Allocation of Business) Rules, 1961.
Accordingly, a Note for the Cabinet has been prepared and placed opposite.
Inter-Departmental consultations, including with Ministry of Finance could not
be done due to extreme urgency and paucity of time. Rule 11-12 provide as
under: -
“11. To meet a situation of extreme
urgency or unforeseen contingency in any particular case, Rule 12 of the
Government of India (Allocation of Business) Rules 1961 empowers the Prime
Minister to permit or condone a departure from these rules, to the extent
deemed necessary.
12. In
such situations also, the process of examination and inter-ministerial
consultations would need to be followed. All cases under Rule 12 are
mandatorily required to be routed through the Cabinet Secretary and should, in
no case, be sent directly to the Prime Minister.”
3. In view of the fact
that the principle of OROP is accepted by the present Government, it has been
decided that the proposal for implementation of OROP may be submitted urgently.
Accordingly, it is proposed that the draft Note for the Cabinet placed opposite
may be submitted for kind approval of Hon’ble RM, as given in para 4 hereunder,
for onward submission of the same to the Hon’ble Prime Minister through Cabinet
Secretary, under Rule 11 and 12 of Government of India (Transaction of
Business) Rules, 1961.
4. OROP PROPOSAL
4.1. The present Government
has accepted the One Rank One Pension (OROP) in true spirit. This was mentioned
in the President’s address to both Houses of Parliament on 9.6.2014 after
constitution of 16th Lok Sabha and an allocation of Rs 1000 crore
was provided in the Budget 2014-15 for implementation of OROP.
4.2. In pursuance of the
Government’s decision to implement the principle of OROP for Defence Forces, a
series of meetings were held in this Ministry for the purpose. Government
extensively consulted the experts and the Ex-Servicemen. OROP implies that
uniform pension be paid to Armed Forces personnel retiring in the same rank
with the same length of service irrespective of their date of retirement. Any
future enhancements in the rates of pension would be automatically passed on to
past pensioners. This implies bridging the gap between
the rate of pension of the current pensioners and the past pensioners at
certain interval. Under this definition, it has been decided that the gap
between rate of pension of current pensioners and past pensioners will be
bridged every five years (emphasis added by Aerial View as it differs
from Para 1).
4.3. Under the OROP Scheme:
4.3.1. The
benefit will be given from 1st July, 2014.
4.3.2. Pension
will be re-fixed for all pensioners retiring in the same rank and with the same
length of service as the average of minimum and maximum
pension drawn by retirees in the year 2013. Those drawing pensions above
the average will be protected.
4.3.3. The
benefit would also be extended to family pensioners including war widows and
disabled pensioners.
4.3.4. Personnel
who voluntarily retired/retire will not be covered under the OROP scheme.
4.3.5. Arrears
will be paid in four half-yearly instalments. Widows will be paid arrears in
one instalment.
4.3.6. In future, the pension will be re-fixed every
5 years.
4.3.7. OROP
is a complex issue. A thorough examination of interests of retirees of
different periods and different ranks is needed. The inter-service matters of
the three Forces also require consideration. This is not an administrative
matter alone. Therefore, it is proposed that a One Member Judicial Committee
may be constituted which will give its report in six months.
4.3.8. The
tentative financial implication for payment of arrears would be Rs 10, 000 to
Rs 12, 000 crores and annual financial implication for the above proposal would
be Rs 8000 to Rs 10000 crores.
The draft Cabinet Note is placed below for favour of approval.
Sd/--------------------
(K Damayanthi) JS (ESW)
JS & Addl FA (DR) Discussed with FA (DS). Proposal is concurred.
Secy (ESW) The draft Cabinet
note is place below for kind approval. Sd/------------05/9/15
Hon’ble RM Sd/---------5/09
Secy (ESW) Sd/--------05/9/15
JS (ESW) Draft OM addressed to Director, Cabinet Secretariat is placed
below for approval.
Sd/-----------
Secy (ESW) Sd/-------5/9/15
JS (ESW) OM issued and
delivered personally to Director, Cabinet Sectt Sd/-------- 5/9/15
(Readers, please Note: The 26 page Cabinet
Note has not been typed as the notes immediately above and below this message convey
the proposal and the modified approval. The MoD assured the Cabinet in
its Statement on Major Milestones and Target Dates at Appendix III that
relevant orders would be issued within two months.)
-32-
Subject: Implementation of One
Rank One Pension
Ref: Cabinet Secretariat
I.D. No. 144/1/1/2015-Cab dated 07.11.2015
Reference preceding
note and I.D. No. 144/1/1/2015-Cab dated 07.11.2015 received from the Cabinet
Secretariat communicating approval of Hon’ble PM to the Cabinet Note submitted
vide this Department O.M No. 12 (01)/2014/D (Pen/Pol) (Part II) dated
05.09.2015. The Cabinet Note was submitted with the approval of RM for approval
of Hon’ble PM under Rule 12 of the Government of India (Transaction of
Business) Rules, 1961.
2. The Cabinet Note was
submitted with the following proposal:
(i) The benefit will be given with effect
from 1st July 2014.
(ii) Pension
will be re-fixed for all pensioners retiring in the same rank and with the same
length of service as the average of minimum and maximum pension drawn by the
retirees in the year 2013. Those drawing pensions above the average will be
protected.
(iii) The
benefit would also be extended to family pensioners including war widows and
disabled pensioners.
(iv) Personnel
who have voluntarily retired/retire will not be covered under the OROP scheme.
(v) Arrears
will be paid in four half-yearly instalments. Widows will be paid arrears in
one instalment.
(vi) In future the pension will be re-fixed
every 5 years.
(vii) OROP
is a complex issue. A thorough examination of interests of retirees of
different periods and different ranks is needed. The inter-service matters of
the three Forces also require consideration. This is not an administrative
matter alone. Therefore, it is proposed that a One Member Judicial Committee
may be constituted which will give its report in six months.
3. The Cabinet
Secretariat vide I.D. No. 144/1/1/2015-Cab dated 07.11.2015 has communicated
the approval of Hon’ble PM to the said proposal as contained in para 7 with the
following modifications:
Paragraph 7.4: Personnel who opt to get discharged henceforth on their own request under Rule 13 (3) 1(i)(b), 13 (3) 1(iv) or
Rule 16B of the Army Rule 1954 or equivalent Navy or Air Force Rules will not
be entitled to the benefits of OROP. It will be effective prospectively.
Paragraph 7.7: The proposal is for constituting one member Judicial Committee;
instead the approval is for Judicial Committee.
4. CGDA vide UO No.
5699/AT-P/OROP/Vol-VIII dated 07.11.2015 has 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.
5. Now the file may be
referred to MoD (Fin) for concurrence to the draft letter addressed to the
Chief of the Army/Navy/Air Staff. The draft order has been shown to the JS
(Pers), Deptt of Expenditure, MoF. Notification for constitution of the
Judicial Committee may be issued subsequently.
6. On obtaining the
concurrence of MoD (Fin), the file will be submitted to the Hon’ble RM for
approval.
Sd/-------------------
(K Damayanthi)
Joint Secretary (ESW)
07.11.2015
Secretary, ESW-OL
Additional Secretary (R) – LO Sd/------
7/11/15
FA (DS) Sd/--------7/xi/15
Def Secy Sd/--------------
7/xi/15
RM Sd/-------------7/11
Def Secy Please issue Sd/--------7/xi/15
JS (ESW) Letter is
issued and sent to DG (PR). Please issue letters to all concerned immediately. Sd/-------------7/11/15
DS (P) On leave
US (P/P)
FAX MESSAGE/EMAIL
Office of the Controller General of Defence
Accounts, Ulan Batar Road, Palam,
Delhi Cantt – 110 010
Subject: Financial implications on OROP - reg
Kindly refer to
telephonic discussion of date regarding financial implications on account of
grant of One Rank One Pension (OROP) and in continuation of details forwarded
earlier (through mail) on the subject matter.
2. As desired, the
financial implications on account of grant of One Rank One Pension including
PMR are forwarded herewith in the enclosed Annexure. The statement indicated
the recurring impact as well as arrears involved with effect from 01.07.2014.
3. This is for favour of
kind information and necessary action.
Sd/--------------
(Rozy Agarwal)
Joint CGDA (Pen)
Ms K Damayanthi, IAS
Joint Secretary
Government of India
Ministry of Defence
Department of Ex-Servicemen Welfare
South Block, New Delhi - 110011
UO No. 5699/AT-P/OROP/Vol-III
Dated 7th November 2015.
Annexure
|
FINANCIAL IMPLICATION ON GRANT OF ONE
RANK ONE PENSION
|
|||
|
|
|
Including PMR cases
|
|
|
|
|
Summary (Rs in
crores)
|
Summary (Rs in
crores)
|
|
Categories of
Pensioners
|
Nature of
pension
|
Annual
Financial implication
|
Arrears wef
1.7.2014 to 31.12.2015
|
|
On the basis of
MID POINT of pension for 2013 retirees JCOs/ORs
|
Arrears
Financial implication
|
||
|
JCO/OR
|
(i) Service
Pension
|
4148.46
|
6052.31
|
|
(ii) Disability
Pension
|
244.28
|
356.39
|
|
|
(iii) Family
Pension
|
483.19
|
704.81
|
|
|
(a) Total
financial implication for pre-2006 pensioners
|
4875.93
|
7113.51
|
|
|
(b) Financial
implication for post-2006 (23.26% of (a) above)
|
1133.65
|
1653.89
|
|
|
Total (a) + (b)
|
6009.58
|
8767.41
|
|
|
Commissioned
officers
|
(i) Service
pension
|
723.77
|
1055.92
|
|
|
(ii) Disability
pension
|
35.13
|
51.25
|
|
|
(iii) Family
pension
|
183.09
|
267.10
|
|
|
(a) Total fin imp for pre-2006 pensioners (i) +
(ii) + (iii)
|
941.98
|
1374.27
|
|
|
(b) Financial
implication for post-2006 [18.24% of (a) above]
|
171.82
|
250.67
|
|
|
Total
|
1113.80
|
1624.94
|
|
|
Grand Total
|
7123.38
|
10392.35
|
* * * * *
Dear Sirs
ReplyDeleteAs to why the ranks of commissioned Lt and Capt has not mentioned any where ?. For example Finance Implications TABLE regarding the above ranks was not considered. Are the above commissioned officers not the part of officers fraternity. Shameful.
Sir, please refer to Circular 555 which are the tables for OROP. You will find Lt and Capt ranks and qualifying service mentioned there.
ReplyDeleteSecondly, the noting state that Regular Commissioned Officers of the ranks mentioned did not retire in the datum year 2013. Hence the methodology to determine the OROP would be as given in the assumptions.