Saturday, 26 May 2018

Calculations of Pensions based on Notional Pay in the Maj Gen Vains & Others case - for information


Calculation of Pension based on Notional Pay
Statements of O/o CGDA in the Major General S P S Vains & Others Case

Pre 1.1.96 retiree Maj Gen
Pension of pre 1.1.96 retiree fixed after 1.1.96 i.e. 5th CPC
Pension of pre 1.1.96 retiree fixed as per Supreme Court order dated 9.9.2008
Pension of pre 1.1.96 retiree fixed after 1.1.2006 i.e. 6th CPC recommendations
While pay of the Brig after the 4th CPC was fixed at Rs 5100/- + Rank Pay Rs 1200/-, the pay of Major General was fixed at Rs 6700/-.

Maj Gen SPS Vains (IC 12548)

DoC: 11.06.1961
DoR: 31.10.1995
QS: 34 y 04 m 20 days
(Restricted to 33 years)
Last pay Rs 6700/-
Ten months average emoluments Rs 6900/-
(In this case officer had drawn pay of Rs 6700/- and stagnation increment of Rs 200/- during last 10 months. As such average remained Rs 6900/-.)

CALCULATION OF PENSION AT THE TIME OF RETIREMENT

In case of officers retired after 1.1.1986, pension is to be calculated in terms of GoI letter dated 30.10.1987. As per Para 6.1, the retiring pension is calculated at 50% of average emoluments. For lesser QS the amount will be proportionately reduced. In this case the emoluments were Rs 6900/-     

Therefore, Retiring Pension =
QS x average emoluments for 10 months
2x 33

= 33 x 6900  = Rs 3450
      2 x 33

The above amount was sanctioned by PPO No. xxxx/164/95
Revision of pension under V CPC by Consolidation

In case of officer retired before 1.1.1996 the existing pension as on 31.12.1995 was to be consolidated in terms of GoI letter dated 24.11.1997 with effect from 1.1.1996 by adding together
(i) the existing pension/family pension
(ii) Dearness relief up to CPI 1510 i.e. @ 148%, 111% and 96% of basic pension as admissible on 1.1.1996 vide DP & PW OM No. 42/8/96 – P & PW (G) dated 20.3.1996 
(iii) Interim relief I
(iv) Interim Relief II
(v) Fitment weightage @ 40% of the existing pension/family pension

The working consolidated pension in this case as per above formula is as given hereunder:
(i) Existing pension: Rs 3450
(ii) Dearness relief @ 96% subject to a minimum of Rs 3330) = Rs 3330
(iii) Interim relief I = Rs 345
(iv) Interim Relief II = Rs 50
(v) Fitment weightage = Rs 1380
Total     = Rs 8555

Revision of pension under V CPC under MODIFIED PARITY  as per GoI letter dated 7.6.1999

Pension is calculated as 50% of the minimum of revised pay scale of pay introduced w.e.f. 1.1.1996 for the rank last held by the commissioned officer at the time of his/her retirement. In case of less than maximum required service for full pension, Pension is reduced pro rata. The scale for Maj Gen under V CPC – Rs 18400-22400

Minimum of scale = Rs 18400

Pension = QS x Pay
                     2 x 33 
               = 33 x 18400
                        2 x 33
              = Rs 9200

But as per note given under Para 6.1. of GoI letter dated 30.10.1997 the retiring pension of an officer in the rank of Maj Gen shall not be lesser than the pension which would have been admissible to him/her had he/she not been promoted to higher rank.
The scale of Brig under V CPC = Rs 16700-400-18050
Rank Pay = Rs 2400
Minimum of scale = Rs 16700 + 2400 = Rs 19100

Pension = QS x Pay
                       2 x 33
               = 33 x 19100
                       2 x 33
= Rs 9550 (pension of Brigadier)

Therefore the pension of Maj Gen stepped up to Rs 9550 under GoI MoD letter dated 7.6.1999 vide PPO No. M/MODP/xxxxx/99  
Revision of pension under 5th CPC under Govt letter dated 15.7.2009 issued in implementation of Supreme Court order dated 9.9.2009

As per the order, the pay of all pensioners in the rank of Maj Gen and its equivalent in the two other Wings of the Defence Services be notionally fixed at the rate given to similar officers of the rank after revision of pay scales w.e.f. 1.1.1996 and thereafter to compute their pensionary benefits on such basis with prospective effect from the date of filing of the writ petition

Pay re-fixed in terms of GoI MoD letter dated 15.7.2009 = Rs 20000

Pension = QS x Pay
                      2 x 33 
              = 33 x 20000
                     2 x 33
              = Rs 10000/-

The above amount of pension was revised vide PPO/M/MODP/xxx/2009
Revision of pension under 6th CPC (by consolidation)

In case of officers retired before 1.1.2006, pension is to be consolidated in terms of Govt letter dated 11.11.2008 with effect from 1.1.2006 by adding together

(i) The existing pension/family pension
(ii) Dearness Pension, if any, as applicable to those retired/died prior to 1.4.2004
(iii) Dearness relief up to CPI 536 i.e. @ 24% of basic pension/family pension plus dearness pension
(iv) Fitment weightage @ 40% of the existing pension/family pension

The working of consolidated pension in this case as per above formula is as given hereunder:

(i) Existing pension = Rs 10000
(ii) Dearness Pension = Rs 5000
(iii) Dearness relief @ 24% = Rs 3600
(iv) Fitment weightage = Rs 4000

Total = Rs 22600  
Revision of pension under CI CPC (Under Modified Parity)

The consolidation of pension will further be subject to provision in terms of Para 5 of letter of 11.11.2008 that the consolidated pension in no case shall be lower than 50% of the minimum of the pay in pay band plus grade pay corresponding to the pre-revised scale from which the pensioner had retired. The pension so calculated will be reduced pro-rata in case of less than maximum required service to earn full pension. The scale of Maj Gen under VI CPC
(a) Pay Band PB-4 = 37400-67000
(b) Grade Pay = Rs 10000
(c) MSP (Notional) = Rs 6000

(d) Minimum of scale = Rs 37400+10000+6000 = Rs 53400

Pension = QS x Pay
                     2x 33
              = 33 x 53400
                       2 x 33
             = Rs 26700
Therefore, the pension w.e.f 1.1.2006 under modified parity is beneficial compared to pension calculated under consolidation formula.
Therefore, revised pension w.e.f. = Rs 26700/-
Chart II
POST 1.1.1996 RETIRED MAJOR GENERAL (Retd 30.6.1996) PRE-2006 CASE 5th CPC CASE
POST 1.1.1996 RETIRED MAJOR GENERAL (retd on 30.6.1996) – Calculation of pension at the time of retirement   5th CPC Case
POST 1.1.1996 RETIRED MAJOR GENERAL (retd on 30.6.1996 – Pre-2006 case – calculation of pension under 6th CPC
Major General Trilochan Singh
DoC: 11.6.1961
DoR: 30.6.1996
QS: 35 years 20 days restricted to 33 years

From
To
No of months
Basic Pay
Stag
Personal Pay
Total
Total
A
B
C
D
E
F
G
G x C
1.9.95
31.2.95
4
13610
200
-
13810
55240
1.1.96
31.1.96
1
19900

100
19900
19900
1.2.96
22.2.96
22/29
19900

100
19900
15096.55
23.2.96
29.2.96
7/29
20900


20900
5055.83
1.3.96
30.6.96
4
20900


20900
83600

Total of ten months emoluments = Rs 178881.93
Average of ten months emoluments = Rs 17888.14
Calculation of Pension at the time of retirement

In case of officers retired after 1.1.1996, pension is to be calculated in terms of GoI letter dated 3.2.1998. Retiring pension is calculated @ 50% of average emoluments. For lesser QS the amount will be proportionately reduced.

Note the retiring pension of an officer of the rank of Maj Gen shall not be less than the pension which would have been admissible to him/her had he/she not been promoted to the higher rank.

Retiring pension

QS x average emoluments for last 10 months
   2/33
= 33 x 178814
          2 x 33
= Rs 8945

The above amount has been sanctioned vide PPO No. M /Corr/xxxxxx/98

Revision of Pension Under V CPC Under Modified Parity

As per GoI/MoD letter dated 7.6.1999 pension is calculated as 50% of the minimum of revised pay scale of pay introduced w.e.f. 1.1.1996 for the rank last held by the commissioned officer at the time of his/her retirement. In case of less than maximum required service for full pension, the pension is reduced pro-rata.
The scale of Maj Gen under V CPC  Rs 18400-22400
Minimum of scale = Rs 18400

Pension = QS x Pay
                       2x 33
               = 33 x 18400
                        2 x 33
             = Rs 9200
But as per note given under Para 6.1. of GoI letter dated 30.10.1997 the retiring pension of an officer in the rank of Maj Gen shall not be lesser than the pension which would have been admissible to him/her had he/she not been promoted to higher rank.
The scale of Brig under V CPC = Rs 16700-400-18050
Rank Pay = Rs 2400
Minimum of scale = Rs 16700 + 2400 = Rs 19100

Pension = QS x Pay
                       2 x 33
               = 33 x 19100
                       2 x 33
= Rs 9550 (pension of Brigadier)

Therefore the pension of Maj Gen stepped up to Rs 9550 under GoI MoD letter dated 7.6.1999 vide PPO No. M/MODP/xxxxx/99

Revision of pension under V CPC under GoI letter dated 31.3.2000 (under fitment formula)
As per this Govt letter the total emoluments for the number of months (i) the existing pension/family pension
(ii) Dearness relief up to CPI 1510 i.e. @ 148%, 111% and 96% of basic pension as admissible on 1.1.1996 vide DP & PW OM No. 42/8/96 – P & PW (G) dated 20.3.1996 
(iii) Interim relief I
(iv) Interim Relief II
(v) notional increase of basic pay including rank pay  fitment weightage @ 40% of the existing pension/family pension

Total of 10 months emoluments is Rs 192081.37
Average of 10 months emoluments is Rs 19208.14

Retiring pension =
QS x average emoluments for 10 months
2 x 33
= 33 x 19208.14
          2 x 33
 = Rs 9604.07 rounded off to Rs 9605 per month
Revision of pension under VI CPC (by consolidation)

In case of officer retired before 1.1.2006. pension is to be consolidated in terms of para 4 of GoI letter dated 11.11.2008. Existing pension as on 31.12.2005 is to be consolidated in terms of GOI letter dated 11.11.2008 with effect from 1.1.2006 by adding together
(i) the existing pension/family pension
(ii) Dearness pension, if any, as applicable to those retired/died prior to 1.4.2004
(iii) Dearness relief up to CPI 536 i.e. @ 24% of the basic pension/family pension
(iv) Fitment weightage @ 40% of the existing pension/family pension.

The working of consolidated pension in this case as per above formula is given hereunder 

Pension = 9606

Dearness Pension = 4803
Dearness relief @ 24%                 = 3458
Fitment weightage =
                          3842
Total   = 21708

Revision of Pension under VI CPC (under modified parity)
The consolidation of pension will further be subject to provision in terms of para 5 of letter of 11.11.2008 that the consolidated pension in no case shall be lower than 50% of the minimum of   pay in pay band plus grade pay corresponding to the pre-revised scale from which the pensioner had retired. The pension so calculated will be reduced pro-rata in case of less than maximum required service to earn full pension. The scale of Maj Gen under VI CPC
(a) Pay Band PB-4 = 37400-67000
(b) Grade Pay = Rs 10000
(c) MSP (Notional) = Rs 6000

(d) Minimum of scale = Rs 37400+10000+6000 = Rs 53400

Pension = QS x Pay
                     2x 33
              = 33 x 53400
                       2 x 33
             = Rs 26700
Therefore, the pension w.e.f 1.1.2006 under modified parity is beneficial compared to pension calculated under consolidation formula.
Therefore, revised pension w.e.f. = Rs 26700/-

Therefore the pension with effect from 1.1.2006 under modified parity is beneficial to the pensioner. Revised pension payable is Rs 26700/- w.e.f. 1.1.2006
Chart III
POST 96 RETIRED MAJOR GENERAL CASE (Retd on 31/10/2005) Pre-2006 case
Revision of pension under VI CPC by consolidation

In case of an officer retired before 1.1.2006, pension is to be consolidated in terms of para 4 of GoI letter dated 11.11.2008, with effect from 1.1.2006 by adding together
(i) the existing pension/family pension
(ii) Dearness Pension, if any, as applicable to those retired/died prior to 1.4.2004
(iii) Dearness relief upto CPI 536 i.e. 24% of basic pension/family pension plus dearness pension
(iv) Fitment weightage@ 40% of the existing pension/family pension.

The working of consolidated pension in this case as per above formula is as given hereunder: -

(i) The existing pension with DP =
                                                      16838
(ii) Dearness relief @ 24% =       4041
(iii) Fitment weightage       =       4491
Total                                       =   25370 

Revision of pension under VI CPC (under modified parity)
The consolidation of pension will further be subject to provision in term of para 5 of letter dated 11.11.2008 that the consolidated pension in no case shall be lower than 50% of the minimum of the pay in pay band plus the grade pay corresponding to the pre-revised scale from which the petitioner has retired. The pension so calculated will be reduced pro-rara in case of less than maximum service required to earn full pension. Annexure II of Govt letter dated 11.11.2008 refers.

The scale of Maj Gen under VI CPC:
Pay Band PB-4                 37400-67000
Grade Pay                                     10000
Military Service Pay (notional)    6000

Minimum of scale = 37400+10000+6000 = 53400
Pension =  Qualifying service x 33
                               2 x 33 
                =  33 x 53400
                           2 x 33
                 = Ra 26700

Therefore the pension w.e.f 1.1.2006 under modified parity is beneficial to pension calculated under consolidation formula. Therefore. Revised pension w.e.f. 1.1.2006 is Rs 26700/-
Major General Rakesh Das (IC17267L)
DoC: 25.12.1960
DoR: 31.10.2005
QS: 38 years 7 months (Restricted to 33 years)

From
To
No of months
Basic Pay
SI
DP
Total
D to F
Total
G x C
A
B
C
D
E
F
G
H
1.1.2005
30.9.2005
9
22400
0
11200
33600
302400
1.10.1995
31.10.1995
1
22400
500
11450
34350
34350

Total of ten months emoluments = 336750
Average of ten months emoluments= 33675

Retiring pension:
QS x average emoluments for last 10 months
                                     2x 33
= 33 x 33675
           2 x 33
= Rs 16837.50 rounded up to Rs 16838/- per month w.e.f. 1.11.2005 for life







Chart IV
Post 2006 retiree Major General case (retired on 31.1.2006)

Name; Maj Gen G R Ford 9IC23983M)
DoC: 21.12.1969
DoR   31.01.2006
QS: 36 Y 01 M 11D

Pay details

From
To
No. of months
Basic Pay
Rank Pay/Grade Pay
SI
A
B
C
D
E
F
1.4.05
31.05.05
2
18050
2400
450
1.6.05
14.06.05
14/30
18050
2400
450
15.6.05
30.06.05
16/30
21400


1.7.05
31.12.05
6
21400


1.1.06
31.01.06
1
54870
10000


Calculation of Pension: In case of officers retired on or after 1.1.2006, linkage of full pension with 33 years of qualifying service has been dispensed with. The pension is calculated at 50% of the emoluments last drawn or average of reckonable emoluments drawn during last 10 months, whichever is more beneficial.

In the above case ten months average will not be beneficial

Last pay drawn = Rs 54870 + 10000 = 64870. Therefore pension calculated at 50% of emoluments last drawn Rs 64870 = 32345 per month w.e.f. 1.2.2006.
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