Saturday 22 September 2018

Notional Pay Fixation Formulae

For a more informed reading of the draft Concordance tables, one needs to see and understand the following: -

(a) PCDA Circular No. 585

(b) The original PPO at the time of retirement which gives you your pension.

2. If you retired on or before Third CPC (1973) or up to 1.1.1985, you were paid a Standard Rate of Pension dependent on the Rank. It did not vary with years of service as long as you served the minimum qualifying service (QS) for each rank.

3. Your 3rd CPC pay was revised for 4th CPC as follows: -

     (a) Basic Pay i n existing scale + (b) Dearness Pay + (c) Additional DA + (d) Adhoc DA at index of 608 + (e) Instalment I and II of Interim Relief.

Authy: Chapter 30 of 4 CPC Report refers
 
4. Your 4th CPC Pay was revised for 5 CPC as follows:    

   (a) Fitment factor of 40% of 3 CPC Pay with at least one increment in the revised scale for 3 increments in the pre-revised scale. 

Authy: GoI Resolutions 50 (1)/IC/97

5. Your 5th CPC Pay was revised for 6 CPC as follows:

     (a) Existing 5th CPC Pay multiplied by a factor of 1.86 rounded off the the next multiple of Rs 10; total of Pay in Pay Band (PIPB) will be revised Basic Pay w.e.f. 1.1.2006

Authy: Para 1 (iv) of GoI Resolution 1/1/2008-IC dated 29 Aug 2008.
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5 comments:

  1. This comment has been removed by the author.

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  2. Sir, there is only a faint glimmer of hope in the part of para 4 of PCDA Circular 585 which states, “While fixing pay on notional basis, the pay fixation formulae (as per Para-4 of MoD letter dated 05.09.2017), approved by the Government and other relevant instructions on the subject in force at the relevant time, shall be strictly followed”.

    The other relevant instructions, whatever these be, might offer a resolution. Otherwise, the “notional” pay method as described would come nowhere near the “inter temporal equity” that the 7CPC report was aiming for.

    As for the formulas used in various CPCs, these were always subjected to fitment procedures before pension tables related to qualifying service were prepared.

    In the present case, if the “notional” pay yields a pension for an older retiree at par with a current retiree in the same rank with much less qualifying service, then the most important thing to understand would be that applying formulas in a way that lead to fallacious end results calls for a review of assumptions on which application of formulae is based.

    Also, in context of para 1(b) of the blog post, in the case of most Officer retirees, perhaps the pension calculated / basic pay fixed after finalisation of the rank pay matter would be the one required to be used and not the one in the original PPO.

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  3. Dear Sir,
    Please throw some light on revision of pay & pension of JCOs for all 3 forces in the scale of Gazetted Officers Class B , as result of recent restoration. Will there be any revision w.r.t these ranks as per this dvelopment?

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    1. Sir, Please give a few days to obtain and peruse the document before I can give a reasonable reply. Off hand, I am not sure where the proposals for revisions by AFHQ are and what has happened to them. Thank you

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