Thursday 20 September 2018

Notional Pay based pension vis-a-vis OROP

  
I am providing information obtained through RTI from the concerned Public Authority, which is DESW of MoD in this case of Notional Pay based draft Concordance Tables for all ranks.    

The manner in which the Notional Pay based pension would impact OROP is for many experts who have expressed their opinions on their blogs/twitter/other social media.

As I understand, Notional Pay is based on the reckonable emoluments one was drawing at the time of retirement or death for family pensioners. It was Basic Pay (later Pay in the Pay Band), Rank Pay (later Military Service Pay) plus Grade Pay (6th CPC), and where applicable NPA, Classification Allowance and Group X Pay (6th CPC). 

6th CPC also introduced Modified Assured Career Progression for PBOR which is one Grade Pay and one rank higher with associated PIPB in year 8 (Sepoy to Naik), 16 (Naik to Havildar) and 24 (Havildar to N/Sub) of service.

In the 7th CPC it is Basic Pay plus MSP + where applicable NPA, Classification Allowance + Gp X Pay.

Notional Pay at time of retirement/death would mean, in my understanding, that Pay would vary for the same number of years of total qualifying service and same rank, if every one in that particular rank superannuated at the same age. The reason will be some one who would have been promoted earlier than others (even in the calendar year as there were two time periods for increments in Jan and Jul till 31.12.2015), thereby earning more number of increments, whereas those promoted later would earn lesser number of increments. Therefore, there will not be an uniform pension for same rank & qualifying years of total service.

The principle of OROP of Same Rank, Same Years, Uniform amount of Pension was tinkered with calculate the average of 50% of the maximum and minimum reckonable emoluments with protection for higher emoluments (and pension) and raising the pensions lower than the average. 

So, there may be pensioners drawing more pension than given in the OROP tables (Circular 555) because of the ibid protection.

Further, in a recent Supreme Court order (Civil Appeal No. 10005 of 2010, order dated 11 Jul 2018), PBOR of the Submarine arm who retired in the 3rd CPC dispensation are entitled to have Submarine Pay included in the Reckonable Emoluments.  

It is anticipated that, quoting Nakara and Vains that there cannot be a cut off date, PBOR (and may be Officers) of the Submarine Arm will seek judicial remedy. Seeking legal remedy may also be exercised by personnel of Army Aviation, Naval Aviation and Flying Branch of Air Force.



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