Some important dates & Raksha Mantri to remember as
you read the reply to RTI
7th November 2015
Shri
Manohar Parrikar Implementation Order
for OROP
14th December 2015
Shri
Manohar Parrikar Constitution of One
Man Judicial
Committee
Committee
26th October 2016
Shri
Manohar Parrikar Submission of
report by OMJC
19th July 2017
Shri Arun
Jaitley Constitution
of Internal Committee to
examine OMJC's recommendations
examine OMJC's recommendations
13th May 2019
Smt Nirmala
Sitharaman Decision to untag OMJC
from
Revision of OROP
Revision of OROP
* * * * * *
Caution: Hereinafter is a faithful typed copy of the information furnished by MoD (CPIO, DESW).
Please forgive spelling errors which are inadvertent.
Please forgive spelling errors which are inadvertent.
Reply of MoD
to RTI application by Sgt Biswas M
SPEED-POST/RTI MATTER
F No.
303/RTI/2014/D(P/P)
Ministry of Defence
Department of
Ex-Service Welfare
D (Pen/Policy)
New Delhi, dated
26.06.2019
To
Shri Mahananda Biswas
------
Kolkata - 700049
Subject: Seeking information under RTI Act, 2005 – reg.
Sir,
Please
refer to your online RTI application bearing Registration No.
DEXSW/R/2019/80175 dated 30.5.2019 received in this office on the subject
mentioned above.
2. In this regard, please find enclosed a set of copies of note
sheets consisting of 12 pages from File No. 1(1)/2019/D(P/P) & MoD ID No.
1(1)/2019/D (Pen/Pol) dated 28.03.2019.
3. Sh. A K
Agarwal, Dy Secretary, Room No. 226, B Wing, Sena Bhawan, New Delhi is the
first appellate authority.
Encl.: As Above
Yours faithfully,
Sd/-----------
26.06.19
(Ashok Kumar)
CPIO & Under
Secretary (Pen/Pol)
F No. 1(1_/2019/D
(Pen/Pol)
FR is a letter No. C/7206/VII
CPC/84/OROP dated 11th March 2019 of TRIPAS (Tri Services Pay Staff)
regarding re-fixation of pension under OROP. It has been mentioned that as per
para 3(v) of Govt letter No. 12(1)/2014/D(Pen/Pol)-Part II dated 7th
November 2015 [OROP order], the pension would be re-fixed every 5 years i.e.
first revision is due on 1st July 2019 as the benefit of OROP was
given w.e.f. 1.7.2014.
2. Further, it has been mentioned that on the basis of
calculation of pension as per OROP differs from the basis of calculation of
pension in 7th CPC. This may have resulted in lower fixation of
pension for post-2016 retirees than the one who retired prior to 1.1.2016.
TRIPAS has requested that during the revision of OROP in July 2019, pension
protection for post 2016 retirees be taken care of. In view of this and to
avoid similar situation in future, TRIPAS has requested that a timeline may be
promulgated to review the OROP. The data considered for formulating the revised
OROP 2019 for pensioners be shared with Service HQrs before finalising the
pension tables. Further, TRIPAS has mentioned that recommendations of OMJC be
declassified at the earliest as it may have an effect on the revision of
OROP.
3. The OROP was implemented from 1.7.2014 to all pre-1.7.2014
pensioners i.e. the pensioners retired between 1.7.2014 to 31.6.2019 will be
covered under OROP in next re-fixation which is due from 1.7.2019. In the
meantime, 7th CPC has been implemented for all pensioners i.e.
pensioners who had been granted the benefit of OROP and the pensioners who had
not been granted the benefit of OROP. The pension under 7th CPC was
revised w.e.f. 1.1.2016 on the Basic Pension as on 31.12.2015.
3.1. As per
recommendations of 7th CPC, pension was revised in following two
methods: -
(i) Notional pay fixation
method: revised pension/family pension of all Armed Forces personnel who
retired/died prior to 1.1.2016 be revised by notionally fixing their pay in the
pay matrix recommended by the 7th CPC in the level corresponding to
the pay in the pay scale/pay band and grade pay at which they retired/died.
This has been done by notional pay fixation under each intervening Pay Commission
based on the formula for revision of pay.
MoD has issued Concordance Table to implement this method of
pension w.e.f. 1.1.2016.
(ii) By multiplying Basic
Pension as on 31.12.2015 into 2.57: For existing pensioners, who have
retired/died before 1.1.2016, the revised pension/family pension with effect
from 1.1.2016 be determined by multiplying the Basic Pension (before
commutation) /Basic Family Pension
[exclusive of Dearness Relief] as had been drawn on 31.12.2015 by 2.57
to arrive at revised pension under 7th CPC
(iii) Pensioners
are entitled to the higher of the two
above.
3.2. Parity in the
pension of Defence Forces pensioners/family pensioners has almost been arrived
after implementation of 7th CPC on notional pay fixation method.
3.3. Regarding recommendation of One Man Judicial Committee, it is
stated that the Government had appointed One Member Judicial Committee (OMJC)
headed by Justice L Narasimha Reddy, retd Chief Justice of Patna High Court on
14.12.2015 to look into anomalies, if any arising out of implementation of
OROP. The Committee submitted its Report to the Government on 26.10.2016. An
Internal Committee has been constituted on 19.7.2017 to examine the
recommendations of OMJC with respect to the feasibility, impact of recommendations
on other existing provisions and financial aspects in implementation of the
recommendations. The issues involved in the recommendations of OMJC are quite
complex and required detailed analysis. The recommendations therefore are under
detailed examination in the Ministry.
-page 2-
4. We may, however, send a copy of TRIPAS letter to CGDA to
looking into the matter and start preparatory work for re-fixation of pension
under OROP, as per para 3 (v) of Govt letter No. 12(1)/2014/D (Pen/Pol)-Part II
dated 7th November 2015. Accordingly DFA please.
Submitted please
Sd/--------- 26.03.2019
Sr. AO (SM)(P/P) Sd/------
26.3.19
US (P/P) Sd/-----------
26.3.19
DS(P/P) Sd/------------
26.3.19
JS(ESW) As
slightly corrected Sd/-------------
27/3
DS (P/P) Sd/------------
27.3
US (P/P) Fair
copy of DFA please Sd/------27.3.2019
Sr AO (SM) (P/P)
Fair copy is placed opposite for sig pl Sd/----
27/3
Sr AO (SM) (P/P) Sd/----------
27.3.19
US (P/P) Please
issue Sd/----------
28.3.19
Sr AO (SM) (P/P) Sd/--------
-page 3-
FR
is CGDA UO No. 5699/AT-P/OROP-2/Vol-I dated 05.04.2019 regarding the fixation
of pension under OROP. A copy of TRIPAS (Tri Services Pay Staff) letter No.
C/7206/VII CPC/84/OROP dated 11.03.2019 was forwarded to CGDA for their
comments vide our ID dated 28.3.2019.
2. CGDA has pointed out that the copy of aforesaid TRIPAS
letter dated 11.3.2019 has not been found enclosed. A copy of the same has been
faxed to concerned dealing officer at CGDA office on 8.3.19 (12:11pm).
2.1. CGDA has
further mentioned the following:
2.1.2. Vide Para 3 of ibid ID Ministry has requested to start preparatory
work for re-fixation of pension under OROP as per para 3(v) of MoD letter dated
7.11.2015. In order to begin this work, CGDA has requested to clarify the
following points which are indicated below with our comments/status: -
(a) With reference to Para 3 of MoD letter dt. 07.11.2015, it may
be confirmed whether the same methodology is to be employed for calculating
OROP rated viz. average of minimum and maximum pension. If so, the year from
which data of current retirees is to be used may be specified.
Status: As per OROP order
dated 7.11.2015, Pension of the past pensioners were re-fixed on the basis of
pension of retirees of calendar year 2013 and the benefit will be effective
from 01.07.2014. Further, Pension was re-fixed for all pensioners on the basis
of the average of minimum and maximum pension of personnel retired in 2013 in
the same rank and with the same length of service. Corollary, the next re-fixation may be supposed to take year 2018 as
base year.
(b) OROP was implemented w.e.f. 01.07.2014. Similarly date of
effect of this next round of revisions may kindly be intimated.
Status: As per OROP order dated 7.11.2015, the pension would be
re-fixed every 5 years i.e. next
re-fixation will (be) due on 1.7.2017 as OROP was implemented w.e.f.1.7.2014.
(c) Several issued and anomalies regarding OROP implementation
had been raised earlier. Government had referred three (03) major categories of
these issue to a One Man Judicial Commission appointed vide 12(01)/2014-D
(Pen/Pol) dated 14.12.2015. Various ESM associations had also made reference to
this OMJC. The report of the OMJC is pending with the Ministry. It may be
clarified whether any of the recommendations of the OMJC are to be factored
into the new calculations.
Status: The One Member
Judicial Committee (OMJC) has submitted its Report to the Government on
26.10.2016. An Internal Committee has been constituted vide MoD order dated 19th
July 2017 to examine the recommendations of OMJC with respect to the
feasibility, impact of recommendations on other existing provisions and
financial aspects in implementation of the recommendations.
2.1.2. CGDA has further mentioned that there have been several
developments since the issue of OROP orders in 2015-16. The most significant is
the implementation of the recommendations of the 7th CPC. The impact
of these recommendations with respect to revision of defence pension was not
factored into the OROP orders. As per the 7th CPC orders, pension
revision is to be undertaken by two methods and pension disbursed by the more
beneficial of the two. The first method required multiplication of pension as
on 31.12.2015 by a factor of 2.57. This has been done by PDAs. The other method
required notional revision of pay across subsequent Pay commission scales to
arrive at
-4-
a notional pay (and pension) under 7th CPC
scales. This revision has raised the following issues: -
(a) The notional pay formula brings all past pensioners to
current rates, almost as if they were serving under 7th CPC. This is
also the formula used in various Court judgments seeking to equate past
pensioners with current retirees. For example, Hon’ble Supreme Court judgment
in SPS Vains vs UoI (2008) case and in DS Nakara case. As such it is a matter for consideration as to whether any logic exists
to initiate the process of OROP revision once the pension of past and current
pensioners has been equated w.e.f. 01.01.2016.
(b) The notional pay based revision in respect of defence
pensioners has just commenced. The final pension of past pensioners (as on
1.1.2016) is not available until this is completed. Therefore, data for
comparing past pensioner with current pensioners is incomplete to that
extent.
(c) Ministry may also kindly refer to WO No. 419/2016 – Indian
Ex-Servicemen Movement and others vs. UoI. While preparing to brief Ld ASG,
Ministry has requested to compare pension under various Pay Commissions. The
result was forwarded to Ministry vide this HQ UO dated 23.08.2018 (copy
enclosed). The sample study indicated that application of multiplication factor
to OROP pension has created an anomaly where by past pensioners are drawing
higher pension than those who have retired between 1.7.2014 to 31.12.2015 and
post 1.1.2016 retirees. It may be recalled that Service HQrs have also
forwarded proposals citing this anomaly and seeking protection of pension of
current retirees with respect to OROP pension. If this anomaly turns out to be
widespread, the logic of revising pension of past retirees to bring them to the
level of current pensioners would not subsist.
Status: The matter in regards to WP No. 419/2016 – Indian
Ex-Servicemen Movement and others vs UoI
is presently sub-judice in Hon’ble Supreme Court.
2.3. CGDA has requested to give directions how to proceed further in
view of the points mentioned above.
3. With respect to Para 2.1. above, matter may be decided at
the level of Hon’ble Raksha Mantri. As regards the issues raised by CGDA
particularly in Para 2.1.2. above, requires deliberations in a meeting to be
attended by the expert from CGDA,PCDA (P) –Allahabad and MoD(Finance/Pension).
It is therefore suggested that a meeting under the chairmanship of Secretary (ESW)/JS
(ESW) may be called in this regards.
Submitted please
Sd/-------------- 12.04.2019
Sr AO (SM)/(P/P) Sd/----
12.04.19
US (P/P) Sd/-------
12.4.19
DS (P/P) Sd/----
12.4.19
JS (ESW) 24/4/19
in my chamber
11
am Sd/----
15/4
DS (P/P) Pl
issue meeting notice Sd/-------
15.4
US (P/P) SD/-----
15-4-19
Sr AO (SM) (P/P)
-5-
Reference:
Preceding note.
2. As per decision vide note p.4/N, draft meeting notice
addressing to PCDA (P)-Allahabad, Jt CGDA (Pen), JS & Addl FA (RK), MoD
(Finance/Pension) is placed opposite for approval please.
Submitted
Sd/---- 16.04.2019
Sr AO (SM)(P/P) Sd/------
16/4
US (P/P) May
kindly see before issue of Meeting Notice.
Sd/---- 16.4.19
DS (P/P) Pl
issue Sd/---
16.4.19
US (P/P) Sd/-----
16.4.19
St AO (SM) (P/P)
-6-
Department of
Ex-servicemen Welfare
D (Pension/Policy)
Ref
meetings held on 24.4.2019 in the chamber of JS (ESW), in which the
representatives of CGDA and PCDA (P)
were also present, to discuss the issued raised by CGDA with regard to
initiating the preparatory work for second round of revision of pension under
OROP.
2. In the meeting, among other things, it was noted that
PCDA(P) is in the process of fixation of pension of defence pensioners on
notional pay basis as per notional pay fixation formula (first formulation of 7th
CPC) and that suo-moto fixation is likely to be completed by the end of June
2019. The data for comparing past pensioners with the current pensioners will
only be available after completion of this exercise and this data will help
substantially to start the process of second round of revision of pension under
OROP.
3. It was also noted that draft comparative statement of
pension in respect of pensioners retired in post OROP (1.7.2014 to 31.12.2015)
and pensioners retired in post 7th CPC (1.1.2016 to March 2019)
submitted by the representative of PCDA (P) in the meeting requires
revalidation to arrive at a realistic picture.
4. In view of the above discussions, it is proposed that we may
request CGDA to get the above work accomplished in (a) time bound manner and
submit a status report to this Department for further action.
Sd/------ 26/4/2019
Sr AO (SM) (P/P) Sd/-----
26/4/19
US (P/P) Sd/---
26.04.19
DS (P/P) May
like to see before issue Sd/----
26.4.19
JS (ESW) Sd/-----
29/4
DS (P/P) Sd/-----
30.4.19
US (P/P) Fair
copy of letter please Sd/---
30.4.19
Sr AO (SM) (P/P) Pl
issue
-7-
TRIPAS (Tri Services Pay Staff)
vide their letter dated 11th March 2019 has mentioned that as per
para 3(v) of Govt letter No. 12 (1)/2014/D(Pen/Pol)-Part II dated 7th
November 2015 [OROP order], the pension under OROP would be re-fixed every 5
years i.e. first revision due on 1st July 2019 as the benefit of
OROP was given w.e.f. 1.7.2014.
2. Further, it has been stated by TRIPAS that basis of
calculation of pension as per OROP differs from the basis of calculation of
pension in 7th CPC. This may have resulted in lower fixation of
pension for post 2016 retirees than the one who retired prior to 1.1.2016.
TRIPAS has requested that during the revision of OROP in July 2019, pension
protection for post 2016 retirees be taken care of. In view of this and to
avoid similar situations in future, TRIPAS has requested that a timeline may be
promulgated to review the OROP. The data considered for formulating the revised
OROP 2019 for pensioners be shared with Service HQrs before finalising the
pension tables. Further, TRIPAS has mentioned that recommendations of OMJC be
declassified at the earliest as it may have an effect on the revision of OROP.
3. The OROP was implemented from 1.7.2014 to all pre 1.7.2014
pensioners i.e. the pensioners retired between 1.7.2014 to 31.6.2019 will be
covered under OROP in next re-fixation which is due from 1.7.2019. In the
meantime, 7th CPC has been implemented for all pensioners i.e. the
pensioners who had been granted the benefit of OROP and the pensioners who had
not been granted the benefit of OROP. The pension under 7th CPC was
revised w.e.f. 1.1.2016 on the Basic Pension as on 31.12.2015.
3.1. A copy of aforesaid letter of TRIPAS was referred to CGDA for
looking into the matter and start preparatory work for re-fixation of pension
under OROP within stipulated time as per para 3(v) of Govt letter No.
12(1)/2014-D (Pen/Pol)- Part II dated 7th November 2015.
3.2. CGDA vide their UO dated 05.04.2019 has stated that in order to
begin this work, the following points required to be clarified.
(a) With reference to Para 3 of MoD letter dt. 07.11.2015, it may
be confirmed whether the same methodology is to be employed for calculating
OROP rated viz. average of minimum and maximum pension. If so, the year from
which data of current retirees is to be used may be specified.
(b) OROP was implemented w.e.f. 01.07.2014. Similarly date of
effect of this next round of revisions may kindly be intimated.
(c) Several issued and anomalies regarding OROP implementation
had been raised earlier. Government had referred three (03) major categories of
these issue to a One Man Judicial Commission appointed vide 12(01)/2014-D
(Pen/Pol) dated 14.12.2015. Various ESM associations had also made reference to
this OMJC. The report of the OMJC is pending with the Ministry. It may be
clarified whether any of the recommendations of the OMJC are to be factored
into the new calculations.
3.2.1. CGDA has further mentioned that there have been several
developments since the issue of OROP orders in 2015-16. The most significant is
the implementation of the recommendations of the 7th CPC. The impact
of these recommendations with respect to revision of defence pension was not
-8-
factored into the OROP orders. As
per the 7th CPC orders, pension revision is to be undertaken by two
methods and pension disbursed by the more beneficial of the two. The first
method required multiplication of pension as on 31.12.2015 by a factor of 2.57.
This has been done by PDAs. The other method required notional revision of pay
across subsequent Pay commission scales to arrive at
a notional pay (and pension) under 7th CPC
scales. This revision has raised the following issues: -
(a) The notional pay formula brings all past pensioners to
current rates, almost as if they were serving under 7th CPC. This is
also the formula used in various Court judgments seeking to equate past
pensioners with current retirees. For example, Hon’ble Supreme Court judgment
in SPS Vains vs UoI (2008) case and in DS Nakara case. As such it is a matter for consideration as to whether any logic exists
to initiate the process of OROP revision once the pension of past and current
pensioners has been equated w.e.f. 01.01.2016.
(b) The notional pay based revision in respect of defence
pensioners has just commenced. The final pension of past pensioners (as on
1.1.2016) is not available until this is completed. Therefore, data for
comparing past pensioner with current pensioners is incomplete to that
extent.
(c) Ministry may also kindly refer to WO No. 419/2016 – Indian
Ex-Servicemen Movement and others vs. UoI. While preparing to brief Ld ASG,
Ministry has requested to compare pension under various Pay Commissions. The
result was forwarded to Ministry vide this HQ UO dated 23.08.2018 (copy
enclosed). The sample study indicated that application of multiplication factor
to OROP pension has created an anomaly where by past pensioners are drawing higher
pension than those who have retired between 1.7.2014 to 31.12.2015 and post
1.1.2016 retirees. It may be recalled that Service HQrs have also forwarded
proposals citing this anomaly and seeking protection of pension of current
retirees with respect to OROP pension. If this anomaly turns out to be
widespread, the logic of revising pension of past retirees to bring them to the
level of current pensioners would not subsist.
3.2.2. CGDA has requested to give directions how to proceed further in
view of the points mentioned above.
4. To discuss the issues raised by CGDA, a meeting was held on
24.4.2019 in the chamber of JS (ESW), in which the representatives of CGDA,
PCDA (P) and JS & Addl FA (RK) were present. Record of the discussion is as
under: -
4.1. After
deliberations, following emerged: -
(a) Principle behind sanctioning OROP for
Defence Forces personnel is to bring past pensioners at par with current
pensioners. The Notional pay formula brings all past pensioners to current
rates i.e. pension of past and current pensioners has been equated w.e.f.
1.1.2016, which is akin to OROP.
(b) The Notional pay based revision in
respect of defence pensioners has just commenced. PCDA (P) has further stated
that fixation of pension as per notional pay fixation formula (first
formulation of 7th CPC) are being done in two methods i.e. (i) suo
moto by Pension Sanctioning Authorities; and (ii) on receipt of claims/data
from Record Offices. In first cases, the revision work has been initiated and
it is likely to be completed by June 2019. This may be substantial number of
pensioners and data for
-9-
comparing past pensioners may be
available after this exercise is completed. This realistic data may be required
to start the process for revision of pension under OROP.
(c) Principle behind sanctioning OROP for
Defence Forces personnel is to bring past pensioners at par with current
pensioners. CGDA informed that in substantial number of cases particularly in
respect of PBOR, application of multiplication factor to OROP has created an
anomaly whereby past pensioners are drawing higher pension than the current
pensioners. In this situation, it was felt that table based revision/live data
of 2018 may not serve the purpose of next revision of pension under OROP.
(d) In view of the above, next revision of
pension under OROP may be possible only after at least suo moto revision of
pension is completed by PCDA (P) Allahabad by June 2019. Further, previous
methodology adopted for revision of pension under OROP may not work fully for
next revision of pension under OROP in view of the fact that in substantial
number of cases particularly in respect of PBOR, application of multiplication
factor to OROP has created an anomaly whereby past pensioners are drawing
higher pension than current pensioners.
(e) One solution to the above anomaly may be
that data of entire retirees in the rank, services and qualifying services as
on 1.1.2016 may be taken for next revision of pension under OROP.
(f) Any change in methodology may require
the approval of the Cabinet.
4.3. A copy (of)
the record of the meeting may also bee seen at p.53/c.
5. In view of the above discussion, CGDA has been requested to
get the notional fixation of pay of pensioners completed in a time bound manner
and submit a status report to this Ministry for further action.
6. It may be
stated that vide order dated 24.04.2014, a Working Group was constituted under
the Chairpersonship of CGDA to finalise the modalities of implementation of
OROP. The composition of Working Group is as under: -
CGDA :
Chairperson
Joint Secretary (ESW) : Member
Joint
Secretary (E) : Member Addl FA
Defence (Finance) :
Member
Representative
of three Services :
Member
Addl CGDA :
Member
PCDA (P)
Allahabad :
Member
7. The issue was discussed with Secretary (ESW) in the presence
of JS (ESW) on 1.5.2019. It emerged that Revision of pension under OROP is to
be taken every five years whereas revision of pension is taken every 10 years.
Following two options are suggested in this case:
A. For implementation of next revision of
pension under OROP i.e. with effect from 01.07.2019, CGDA may be asked to take
action as under:
i. Methodology for next revision of
pension under OROP may be the same as it was adopted for implementation of OROP
w.e.f. 01.07.2014.
ii. For implementation of OROP from
01.07.2014, data of 2013 was taken. Similarly, data of 2018 of current retirees
may be used for the next revision of pension under OROP.
-11-
iii. OMJC report may not be tagged with the
next revision of pension under OROP.
iv. CGDA may examine the issue pertaining to
less pension of current retirees vis-à-vis past retirees after completion of
notional fixation of pension under 7th CPC and thereafter submit a
proposal with specific recommendation to this department.
B. CGDA may be asked to get the notional
fixation of pay of pensioners completed in (a) time bound manner at least suo
moto revision of pension by May 2019 and submit status report to this Ministry
for further action. After completion of this revision, actual picture may
emerge in respect of anomaly whereby past pensioners are drawing higher pension
than the current pensioners.
8. To look into the above two options and the issues raised by
CGDA in their letter dated 05.04.2019, a committee may be constituted under the
Chairmanship of CGDA to finalise the modalities of implementation of next
revision of pension under OROP. The Committee may submit the report to MoD with
specific recommendation on implementation of next revision of pension under
OROP. The composition of the Committee may be as under:
CGDA :
Chairperson
Joint Secretary (ESW) : Member
Joint
Secretary (E) : Member
Addl FA
Defence (Finance) :
Member
Representative
of three Services :
Member
Addl CGDA :
Member
PCDA (P)
Allahabad :
Member
9. Kind
approval of Hon’ble RM may be obtained on para 7 & 8 above.
Sd/--- 9.5.2019
Sr AO (SM) (P/P) Sd/--- 9.5.19
US (P/P) Sd/-----
09.05.19
DS (P/P) on leave
DS (P/L) Link officer Sd-------09.5.2019
JS (ESW) For kind approval of Hon’ble RM Sd/--- 9/5
Secy /ESW Sd/----- 10/5
Pl process.
As discussed in the meeting with Hon’ble RM today wherein FA/DS, CGDA, Jt CGDA,
DS/DEW were present. Sd/------13/5
DS/Pension Sd/---- 14/5
US (P/P) Sd/---- 14.5
-11-
Reference
from previous page.
2. The matter was discussed in the meeting held with Hon’ble RM
on 13.05.2019 in which FA (DS), CGDA, Jt CGDA (Pension) and DS (Pen/Pol) were
present. In the first instance we may refer the file to MoD (F/P) for their
opinion on para 7 of note at page 9-10/ante.
Sd/----- 14/4/19
Sr AO (SM) (P/P) Sd/-----
14/5
US (P/P) Sd/-------
14.05.19
DS (P/P) Sd/----
14.5.19
JS (ESW) Sd/----
15/5
DS (P/P) Pl
send it to MoD (Fin/Pen). Sd/--- 15.5.19
US (P/P) on leave
D (P/P)
MoD (F/P)
-12-
Ministry of Defence
Finance (Pension)
Ref: - Preceding Note
It
is felt that before proceeding further it would be appropriate to substantially
complete the pension revision exercise on ‘notional pay fixation’ and finalise
report by the Group of Officers on OMJC Report.
2. Further, some more detailed exercise on anomalies of pension
between OROP beneficiaries and fresh retirees needs to be done by PCDA (P) as
this would have impact on methodology for new round of OROP. Taking data of
2018 and method adopted in 2014 may not be correct in view of anomalies as
pointed out by PCDA (P) and TRIPAS.
3. This has the
approval of Secretary (Defence/Finance).
Sd/-------------
(Shrinath Chauhan)
AFA (P)
US (Pension/Policy), Department of ESW
MoD (Finance/Pension) No. 10(01)/2019/Fin/Pen dated
29/05/2019
Sd/----- 31.05.19
Sr AO (SM) (P/P) Sd/-----
Jitendra
Ministry
of Defence
Department
of Ex-Servicemen Welfare
D(Pen/Policy)
Room
No. 222, B Wing
Sena
Bhawan, New Delhi – 11
Subject:
Re-fixation of pension under OROP - reg
Please find enclosed a copy of
TRIPAS letter Bo. C/7026/VII CPC/84/OROP dated 11th March 2019 of
TRIPAS (Tri Services Pay Staff) regarding re-fixation of pension under OROP. It
has been mentioned that as per para 3 (v) of Govt letter No. 12(1)/2014/D
(Pen/Pol) – Part II dated 7th November 2013 (OROP order), the
pension would be re-fixed every 5 years i.e. the first revision is due on 1st
July 2019 as the benefit of OROP was given w.e.f. 1.7.2014.
2. Regarding implementation of 7th CPC pension was
revised in following two methods:
(i) Notional
pay fixation method: revised pension/family pension of all Armed Forces personnel who retired/died prior
to 1.1.2016 be revised by notionally fixing their pay in the pay matrix
recommended by the 7th CPC in the level corresponding to the pay in
the pay scale/pay band and grade pay at which they retired/died. This has been
done by notional pay fixation under each intervening Pay Commission based on
the formula for revision of pay.
MoD
has issued Concordance Table to implement this method of pension revision
w.e.f. 1.1.2016.
(ii) By
multiplying Basic Pension as on 31.12.2015 into 2.57: For existing
pensioners, who have retired/died before 1.1.2016, the revised pension/family
pension with effect from 1.1.2016 be determined by multiplying the Basic
Pension (before commutation)/Basic Family Pension (exclusive of Dearness
Relief) as had been drawn as on 31.12.2015 by 2.57 to arrive at revised pension
under 7th CPC.
(iii) Pensioners are entitled to the higher of the two above.
3. CGDA Hqrs is requested to look into the
matter and start preparatory work for re-fixation of pension under OROP within
stipulated time, as per para 3 (v) of Govt letter No. 12 (1)/2014/D(Pen/Pol)-Part
II dated 7th November 2015 (copy enclosed).
Sd/--------------
28.3.2019
(Ashok
Kumar)
Under
Secretary to the Govt of India
Telefax:
23012973
e-mail:
us-pen-pol@desw.gov.in
Jt CGDA (Pension), O/o CGDA,
Ulan Batar Road, Palam, Delhi Cantt
MoD ID No.
1(1)/2019/D(Pen/Pol) dated 28.3.2019.
* * * * *
1.OROP is being deliberately confused. 2. 7th CPC has nothing to do with OROP 3. 7th CPC is for all Central Government Employees every implemented wef 1.1.2016 4. OROP was implemented for Defense forces wef 1.7.2014 5. So, Babus (CGDA, PCDA-P, MOD) stop confusing and start implementing OROP-2 we 1.7.2019.
ReplyDelete(1) How? (2) Any document that says so? (3) Then how are serving personnel being paid 7 CPC pay & MSP? (4) OROP to bring up past pensioners at par with current pensioners. Notional pay (which includes increments if you have been paid) might increase your pension instead of getting average pension.
DeleteOrop defence force only
Delete1. OROP is for Defense Personal only, (Pension Equalization to be done every 5-years), next due 1.7.2019 2.In between if 7th CPC came on 1.1.2016, it's GOOD LUCK to Defense Pensioners as God has listened to their prayers of "Early Equilisation', if not Yearly.
ReplyDeleteUnknown can't mean 'unknowing'. Before dancing with joy about pensioners' "Good Luck", do some more homework on how much less you'll get than you should.
DeleteSir, item 2.1.2(a) on page 4 of notings, apparently initiated by Sr AO (SM)/(P/P), mentions, "...brings all past pensioners to current rates, almost as if they were serving under 7th CPC...".
ReplyDeleteThis may need further study because, based on data available, significant gaps appear between pay of Officers currently serving/retiring and the pension-equivalent pay of those from earlier times presently drawing 2.57xOROP, if the QS is factored in.
Charts, including a graph for rank of Wg Cdr retirees, for the QS-pay combinations that were mentioned by you, in the previous post on your blog, are now placed here http://bit.ly/2O7EVpM.
Sir, where is the proposal for "from earlier times" factoring in QS? With Notional Pay based pension, it will be what was your rank, what was the pay including increments x 2.57 and 50% of that as pension.
DeleteSir, that is why there is a need to apply some consideration to rationalising the notional pay method. In VI CPC, the min of pay in payband was the basis for equalising pay for the same QS. In OROP, a common QS was used to fix OROP in a rank.
DeleteIf a proposal, such as the one used for making Concordance Tables, equates the pension of a Wg Cdr retiree in regimes of IV and V CPCs, say with 29 years of service, with the pension of a Wg Cdr retiring in regime of VII CPC with a service of 24 years, then such a proposal needs to be rectified, because it neither meets the principle of "equal remuneration for equal work" or that of, and I quote again from VII CPC recommendations, "inter temporal equity".
If we look at it from another angle, would the VI pay of a Wg Cdr with 25 years of service actually transiting from V CPC to VI CPC have been fixed with effect from 01 Jan 2006 using the same concordance table? I have my doubts. In reality, his pay would probably have been higher.
The gaps in tables and graph I have shared are in fact intended to be a means to try and assess if the actual method of notional pay fixation introduces disparities and serves to discriminate.
1. What about the modified parity of 1.1.2006, improvements consequent to CSC 9 and CSC 12?
ReplyDelete2. Where does it state that pension of Wg Cdr with 29 years of service of 4 & 5 CPC would be equated with pension of Wg Cdr with 24 years of service in 7 CPC?
3. How much higher when transitioning from V CPC to VI CPC? Basis for the statement?
4. Please match the BP of 4 CPC of Civilians of equivalent pay in the Civ Concordance tables and see if they are same for Def Pers because Def Pers get BP + RP in 4 CPC. Looking at Defence Concordance tables will not give a full picture.
Sir, all improvements have been taken into account. The data is based on circulars 500, 555, 608 and the VII CPC Matrix. This is data that applies in the here and now after all improvements and re-fixations have been taken into account.
DeleteActual data for pay of Officers transiting from VI to VII CPC would take time to collect. But some parallels with past fixations would appear to make the scenario plausible, the one I had outlined of Officers getting their pay fixed above the levels determined by inter-CPC formulas. Still, this data could also be collected in the near future. But for underlining the QS based disparity, it may not be that critical.
Of course, it does not specifically state in any Govt order that retirees from all CPC regimes with equal QS in the same rank will have equal pension in 7 CPC. If orders stated as much why would there have been gaps in pensions of retirees with equal QS and the same rank depending on which CPC regime they had retired in.
It is an anomaly in view of the strong thrust in the VII CPC recommendations for ensuring parity in pensions of older and current retirees. It is just that the notional pay method does ensure parity in theory for Officer retirees in regime of VI CPC but most probably not for those who retired prior to 01 Jan 2006 (esp those who retired prior to 16 Dec 2004).
The Concordance Tables and the notional pay formula are based on that anomalous concept of ignoring QS altogether.
If there is to be no such parity, why have OROP or the thrust on "inter temporal equity" in the VII CPC report at all? Why are those notings in files trying to assert that, ".."...brings all past pensioners to current rates, almost as if they were serving under 7th CPC..."?
At present the gaps caused by just the mis-match in QS is being discussed. There is an even bigger mis-match based on the variation in matrix levels based on QS (the QS>20 yrs for Maj and QS>26 years anomaly for Lt Col issue).
These "QS vis-a-vis timebound rank-based parity" anomalies applied to VI CPC and OROP and are presently part of ongoing litigation.
For the time-being, the aim is to just try to understand with tabulated data if there is a discriminatory award based on what the policy states and/or does not state.
Sir, your query, "3. How much higher when transitioning from V CPC to VI CPC? Basis for the statement?" came to mind while working on likely explanations for Notional Pay under-performing even 2.57XOROP.
DeleteOther than the QS and increments mismatch, where the Notional Pay appears to deviate, from Pay of an officer actually transiting from one CPC to the next, is in the matter of fitment into payband of the next CPC that a serving Officer woul be benefited by. There is no compensation for DA/DP earned by the older retiree in fixing his Notional Pay for the next CPC.
The basis for this impression is this graph based on actual data. This is in case it may be relevant to RTI initiatives in this regard bit.ly/2K8fCjs
Incorrect Sir. Take the first figure in Lt Col - 45400. Deduct GP 8000 and we get a BP of Rs 37400 transiting from 5 to 6 CPC. Divide that by 1.84 and we get Es 20326.
DeleteNow check the BP in same row for 5 CPC. It is 13500. Add 50% Dearness Pay (DP)= 6750. Therefore, total is Rs 20250. X 1.84 is Rs 37261. So there is compensation for DP.
There is no compensation for DA because RE is taken as BP/PIPB+GP+MSP x 2.57 (catering for 119% DA as on 31.12.2015. Please relevant Para 5.1.27 "....This fitment factor of 2.57 is being proposed to be applied uniformly for all employees. It includes a factor of 2.25 on account of DA neutralisation, assuming that the rate of Dearness Allowance would be 125 percent at the time of implementation of the new pay."
Sir, You have mentioned DA neutralisation in the 2.57X factor which applies in the transit from VI to VII CPC. The graph in my previous reply has already taken that into account. I have even highlighted some of the text there. The gaps shown in the graph have their origin in the fixing of pay in transit from V to VI CPC.
ReplyDeleteHowever, in the transit from V to VI CPC to VI CPC, though the VI CPC pay band starts at the level of 37400/- and with 8000/- added to it we get 45400 as shown in the concordance table, the doubt arises because if we take the basic pay of 13500/- of an Officer actually transiting from V to VI CPC, wouldn't his basic pay have been fitted in PB4 with the VI CPC formula at the next higher stage in PB4 to 45900/-, the grade pay not being part of it?
You may consider that GP does not appear to be a part of the basic pay calculated by the VI CPC formula used for fixing pay in the payband. This table is an attempt to clarify contents of the graph I had linked to bit.ly/2KgGdcV.
Sir, I stand corrected.
DeleteThe Concordance Table for Wg Cdr does have DA neutralisation for transit from V to VI CPC with the 1.86x multiplier. If the multiplier is used, DP and DA are not to be added (again) to the last basic pay of V CPC before using the multiplier.
I have put appropriate labels on the related graph and table accordingly.
The only obvious reason for the notional pay disparity in pay of current retiree and notional pay of an older retiree now appears to be the mismatch between number of increments as well as QS that I had mentioned previously.
Disparity is because of the one time exception in 5 CPC dispensation where Maj with 21 years QS being given the BP of Lt Col while those before did not.
DeleteSir, that would certainly be true for the rank of Sqn Ldr.
DeleteIt appears the sub transit zone of AVS-I, within the transit zone of V CPC itself, has created these mis-matches for almost all Officer ranks, especially ranks upto Wg Cdr level, and it casts a shadow on the whole "notional pay" concept.
I don't know if Officers serving beyond 16 Dec 2004 had received extra increments for the period from 16 Dec 2004 to 31 December 2005 or whether their pay had been stepped up after AVS-I, even if they had not moved to the next higher time-bound rank (e.g. Wg Cdr at 25 years of service or one at more than 26 years of service but not given Gp Capt(TS) rank).
If so, that ought to have been a consideration other than just the 1.86x and 2.57x formulas and fitment in payband/Matrix while working out the Notional Pay of pre 15 Dec 2004 veterans.
That is why it may not be possible to replace 2.57xOROP with concordance tables till such time these issues get rationalised. IMHO.
http://bit.ly/2yCfmCM