FAX MESSAGE/EMAIL
Office of the
Controller General of Defence Accounts
Ulan Batar Road, Palam,
Delhi Cantt – 110010
Subject: Financial Implications on OROP – reg
Kindly refer to telephonic discussion
o date regarding financial implications on account of grant of One Rank One
Pension (OROP) and in continuation to details forwarded earlier (though mail)
on the subject matter.
2. As desired, the financial implications
on account of grant of One Rank One Pension including PMR cases are forwarded
herewith in the enclosed Annexure. The statement indicates 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 please.
Sd/----------
[Rozy Agarwal]
Joint CGDA (Pen)
Ms K Damayanthi, IAS
Joint Secretary,
Government of India
Ministry of Defence
Deptt of Ex-Servicemen
Welfare
South Block New Delhi 110
011
UO No. 5699/AT-P/OROP/Vol
VIII
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
|
|
Category of Pensioners
|
Nature of Pension
|
Annual Financial Implication
|
Arrears w.e.f.1.7.2014 to 31.12.2015
|
|
On the basis of MID POINT of pension for 2013
retirees
|
Arrears
Financial Implication
|
||
|
JCO/OR
|
Service pension
|
4148.46
|
6052.31
|
|
Disability pension
|
244.28
|
356.39
|
|
|
Family pension
|
483.19
|
704.81
|
|
|
Total Financial implication
|
4875.93
|
7113.51
|
|
|
Financial implication for post-2006 (23.26% of the
above
|
1133.65
|
1653.89
|
|
|
Commissioned Officers
|
(x) TOTAL
|
6009.58
|
8767.41
|
|
Service pension
|
723.77
|
1055.92
|
|
|
Disability pension
|
35.13
|
51.25
|
|
|
Family pension
|
183.09
|
267.10
|
|
|
Total Financial implication
|
941.98
|
1374.27
|
|
|
Financial implication for post-2006 (18.24% of the
above
|
171.82
|
250.67
|
|
|
(y) TOTAL
|
1113.80
|
1624.94
|
|
|
|
Grand Total (x + y)
|
7123.38
|
10392.35
|
Statement indicating
approximate increase in pension (individual cases)
|
Rank
|
QS (years(
|
Existing pension
|
Proposed pension wrt grade pay (cases without MACP)
|
Proposed pension wrt substantive rank (including
MACP)
|
Per capita increase in pension (Col 4-3)
|
Per capita increase in basic pension
|
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
|
Sepoy
|
17
|
5480
|
6593
|
7040
|
1113
|
1560
|
|
Naik
|
19
|
5981
|
7140
|
7463
|
1159
|
1482
|
|
Havildar
|
21
|
6684
|
7585
|
8273
|
901
|
1589
|
* * * * * *
From: K Damayanthi
<jsesw&nic.in>
Date: 10 Nov 2015 1830
Subject: Request for
tentative and final tables – Instructions of PMO –re
Dear Madam,
Principal Secretary to Prime
Minister has given instructions that Govt letter alongwith the Tables is to be
issued by 15.12.2015 and disbursements to be commenced immediately.
Secondly, Principal Secretary to PM
desired to have tentative Tables indicating the pension amount of each rank
with the length of service and the additional amount likely to be paid for
placing it in the social media network.
In view of the above, it is
requested to kindly indicate the time frame required for the preparation of the
tentative tables indicating the likely pension amount of each rank with the same
length of service and the additional amount that is likely to be paid for
placing it in the social media.
It is also requested to kindly
arrange to furnish the tables within the time frame given by the PMO.
I shall be grateful if you could
arrange to provided the required information at the earliest.
I take this opportunity to wish you
and all your family members a Happy Diwali.
With
regards
Yours
sincerely
K
Damayanthi
JS,
ESW
* * * * * * *
MoD ID No. 12(01/2014/D (Pen/Pol) (Part II)
Ministry of Defence
Department of Ex-Servicemen Welfare
D (Pension/Policy)
New Delhi, dated 1st January 2016
To,
Shri Rozy Agarwal, Jt CGDA
(Pen)
O/o CGDA, Ulan Batar Road
Palam, Delhi Cantt – 110
010
Subject: Assumption for preparation of the OROP
table - reg
Assumptions for preparation of the
OROP tables given vide CGDA UO No. 5699/AT-P/OROP/Vol-VIII dated 6th
November 2015 were examined in this department. The file was referred to
Department of Expenditure through MoD (Finance/Pension) for approval of proposed
assumption for implementation of OROP.
4. MoD (Finance/Pension) has stated that
Department of Expenditure vide their ID Note No. 1(6)/EV/2015 dated 31.12.2025
(copy enclosed) has intimated their no objection to the proposed assumptions
for implementation of OROP. However, Department of Expenditure, Ministry of
Finance has desired to ensure that these assumptions are within the existing
instructions regulating pension, as modified by OROP letter dated 7.11.2015.
5.
In view of the
above, it is requested to ensure the compliance of instructions of Department
of Expenditure, Ministry of Finance before issue of OROP tables.
Sd/--------------------------
(K Damayanthi)
Joint Secretary (ESW)
* * * * * *
Office of the Principal Controller of Defence
Accounts (Pensions)
Draupadi Ghat, Allahabad – 211014
No. Gts/Tech/0180-V Dated:
04.01.2016
To,
Shri Rozy Agarwal
JT CGDA (Pension)
O/o the CGDA
Ulan Batar Road
Palam, Delhi Cantt – 110010
Sub: Preparation of OROP
Tables - reg
Ref:
HQ Office letter No. 5699/AT-P/OROP/Vol VIII dated 01st January 2016
and even number dated 30th December 2015.
Please refer ro HQ Office letter
cited above. Matter has been examined in light of the MoD ID No. 12
(01)/2014/D(Pen/Policy) Part II dated 01.01.2016 and Department of Expenditure
ID Note No. 1(6)/EV/2015 dated 31.12.2015 received under HQ Office letter cited
under reference. In terms of Govt Notification dated 07.11.2015 on One Rank One
Pension (OROP), pension will be 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 qualifying service. The methodology and the
various related aspects taken into account for preparation of pension tables
have been provided by HQ office vide their letter No. 5699/AT-P/OROP/Vol-VII
dated 13.10.2015. Confirmation is now sought that the revised pension tables
which have been prepared based on the methodology contained in HQ Office letter
dated 13.10.2015 ibid are within the existing instruction regulating defence
pension as modified by the notification issued by MoD on OROP vide letter dated
07.11.2015. The matter has been examined and the point-wise comments are as
under: -
i) Highest notional
pay across the three services – both for JCOs/ORs and Commissioned Officers:
In terms of recommendations of
CSC-12 for Pre-2006 JCOs/ORs retirees, pension has been worked out with
reference to highest notional pay across the three services. Therefore, the
highest notional pay across the three services stands included within extant
Govt orders/policies. However, for Commissioned Officers, no such provision had
existed in the past. Therefore, extending the benefit of highest notional pay
across the three services to Commissioned Officers would require policy
decision at appropriate level.
ii) Average of minimum and maximum
pension is to be determined with reference to entire data of three services:
In terms of recommendations of
CSC-2012 for Pre-2006 JCOs/ORs retirees, pension has been worked out with
reference to highest notional pay across the three services. Therefore,
extending this provision to the Commissioned Officers would require policy
decision.
iii)
Methodology to be adopted for determining proposed pension for those
ranks/groups where there are no retirees in calendar year 2013:
The proposed methodology (allowing
protection with reference to lower rank and adding 50% of Group Pay for Group
‘X’ categories of pensioners) adopted for operationalisation of of Govt
Notification on OROP and to work out OROP table, is considered within the ambit
of existing fundamental regulations and procedures for pension calculation, and
no undue or unintended pensionary benefit would accrue to the beneficiary.
iv)
Where retirees for any rank/group is not available for lower qualifying
service but available after certain length of qualifying service:
The proposed methodology (allowing
3% cut for every year for lower qualifying service) adopted for
operationalisation of Govt Notification on OROP and to work out OROP tables is
considered reasonable and within ambit of existing basic principles of 3%
increment, though no express provision for such adjustment exists in any
earlier Govt order.
v) Where rates of
proposed pension at lower qualifying service is higher than the rates for
higher qualifying service in same rank/group:
This methodology has already been
adopted in CSC-2009 & CSC-2012 for removing such anomalies for both PBORs
and ICOs. Therefore, this assumption is in line with the methodology adopted
earlier.
vi)
Where rate of the proposed pension in higher ranks is lower than the
rate for lower rank with same qualifying service:
This methodology has
already been adopted in CSC-2009 & CSC-2012 for removing such anomalies for
both PBORs and ICOs. Therefore, this assumption is in line with the methodology
adopted earlier.
vii)
From 01.09.2008 onwards, JCO/OR personnel are getting 3 financial
upgradations in scale of higher rank under MACP scheme. These upgradations are
allowed after 8/16/24 years, however, rank of the personnel does not get
changed. Confirmation (is) required whether data of these pensioners is to be considered
with reference to rank held or the same is to be taken with reference to the
grade pay drawn after financial upgradation:
Tables have been prepared with
reference to grade pay as already exists under MACP scheme for which next
higher grade pay is to be allowed. Therefore, this assumption is based on
existing provision.
viii) Methodology to
be adopted for certain types of pension viz. Liberalised family pension/2nd
life awards, where cases are not available in calendar year 2013 of data
available is very less:
In terms of recommendations of
CSC-2012 for Pre-2006 JCOs/ORs retirees, all finds of family pensions have been
linked with rates of service pension in r/o JCOs/ORs. Therefore, this
assumption is based on already existing Govt provisions for PBORs. However, no
such provision exists in respect of Commissioned Officers.
ix)
Rates of disability/war injury element may also be linked with rates of
revised retiring/service pension:
Disability/War injury pension for
Pre-s006 retirees was not linked with service pension in r/o JCOs/ORs, but for
Post-2006 disability pensioners cases, rates of disability/war injury have been
linked with the pay last drawn, therefore, rates of disability element has been
worked out @ 30% of last pay drawn and the rate of disability element shall be
60% of Retiring/Service Pension in each qualifying service for 100% disability.
The rates of War injury element shall be 120% of Retiring/Service Pension
(discharged cases) and 200% of Retiring/Service Pension (invalidment cases) in
each qualifying service for 100% disability. Therefore, this assumption is in
line with the methodology adopted earlier.
x)
Rates of pension may be determined only up to the terms of engagement:
As per existing formulation
applicable to Pre-2006 retirees under CSC-2009 & CSC-2012, pension has been
determined up to maximum terms of engagement for JCOs/ORs and upto 33 years of
service for Commissioned Officers. Therefore, this assumption is in line with
the methodology adopted earlier.
xi)
Outliers should be removed from the data to determine revised pension:
Outlier cases such as those getting
the benefit of higher pension due to various court decisions, cut in rate of
pay/pension due to punishments, direct entry in higher rank have been excluded
while preparing tables.
Cases of additional
increments/out-of-turn promotions earned by the individuals are not possible to
be identified at this end. However, Service HQ and PCDA (O) for Commissioned
Officers and respective ROs/PAOs for PBOR have been approached for furnishing
requisite information, if any, at their end. 16 ROs/PAOs have responded so far and
information provided by them has been incorporated suitably. No such
information has been received from Service HQ/PCDA (O) and remaining
ROs/PAOs….. A reminder to other ROs have been issued vide this office letter
No. even dated 21.12.2015 and 30.12.2015. Further, the tables were prepared
based on information received from PCDA (N) and JCDA (AF) in respect of Navy
and Air Force respectively. It is not known to this office whether they could
identify such cases pf additional increment/out-of-turn promotions and exclude
such cases from the data forwarded by them. It is also pointed out that pension
for given length of qualifying service in equivalent ranks amongst the three
services was higher in respect of Air Force personnel.
xii)
Data for retirees who get discharged on their own request may not be
considered while determining revised pension:
As per Govt Notification on OROP
dated 07.11.2015 personnel who opt to get discharged at their own request under
Rule 13(3)1(i)(b), 13(3)1(iv) or Rule 16B of the Army Rules 1954 of equivalent
Navy or Air Force Rules will not be entitled to the benefits of OROP.
Therefore, data of such category of pensioners have not been included while
determining revised pension and preparing OROP tables.
xiii)
Methodology of revision of PSU absorbees:
Full pension of PSU absorbees is
presently revised with reference to revised pension determined for regular
ranks with reference to Hon’ble SC judgment. Therefore, this assumption is in
line with the methodology adopted earlier.
In order to
avoid litigation/court cases in future on the implementation of OROP, it is
suggested that the principle and methodology being followed for preparation of
tables should be incorporated as an Annexure to the Govt letter.
This issues with the approval of
PCDA (P).
Sd/---------------
J P Pandey
CDA (P)
* * * * * *
CONFIDENTIAL
OROP Matter
Office of the
Controller General of Defence Accounts,
Ulan Batar Road, Palam,
Delhi Cantt-110010
No. 5699/AT-P/OROP/Vol-VIII
Dated; 5th January 2016
To
Dr G D Pungle IDAS
Principal Controller
Office of the Pr CDA (P)
Allahabad- 211014
Subject: Implementation of
One Rank One Pension for Defence pensioners – Forwarding of draft Government
letter and pension tables - reg
Reference:
Pr CDA(P) Allahabad letter No. Gts/Tech/0180-IV dated 4.12.2015 and No.
Gts/Tech/0180-V dated 18.12.2015
Subsequent to submission of tables
and DGL for implementation of OROP by your office taking inputs from PCDA (Navy
and JCDA (AF), a screening committee was formed in this HQ office to review,
screen and verify the data after further consultation with all the concerned
agencies. The discrepancies and anomalies noticed during the screening process
were referred to PCDA (Navy) and JCDA (AF) and also communicated through mail to
the committee in your office from time to time. The discrepancies largely
pertained to incorrect transcription of figures to tables, typical errors,
non-verification of figures with personal profiles of retirees etc.
2. The assumptions projected by this HQ
office for working out tables on OROP have been confirmed by the MoD/GoI, which
has already been conveyed to your office vide letter dated 1.1.2016 with a
request to further confirm that the principles on which the tables have been
worked out are in line with existing pension regulations and in accordance with
pension notification dated 7.11.2015. Now with the confirmation on assumptions
by the MoD, the final versions of tables and DGL alongwith implementation
matrix have to be submitted to the MoD/GoI on utmost priority.
3. Accordingly, after scrutiny of the
tables, certain discrepancies and anomalies have been noticed by the committee,
details of which are mentioned below for review and rectifications, wherever
required:
A. Discrepancies and anomalies in
figures rendered by the PCDA (P)
1) The pension tables for Non-Combatants
(Enrolled) and for pre-1953 retirees have not been found prepared.
2)
With reference to data of minimum and maximum pension of different category of
pensioners retired during 2013 as received vide Pr CDA (P) letter dated
4.12.2015, it is observed that while transcribing the data in comparative
statements, following errors have been noticed: -
(a)
The rates are either left over in comparative statements of have been wrongly
cast from main data provided for three services separately.
(b) In
some cases, the data is not available in the base data provided but the values
have been found included in comparative statements.
(c) All
such errors have been summarised and are attached as Annexure A for commissioned officers and Annexure B for JCOs/ORs.
(d) While
preparing the final tables after applying the assumptions, certain
discrepancies/errors have also been noticed. The difference noticed in final
rates of tables has been summarised and is enclosed herewith as Annexure
C to this letter. Although all out efforts
have been made to identify such errors, however, the discrepancies which are
repetitive in nature have not been indicated in the above Annexure. While
finalising tables it may please be ensured that such nature of discrepancies do
not exist in other tables.
(e) The
tables regarding family pension awards and disability pension awards which are
linked with final rates of service pension may also be got updated/reviewed after
correcting tables of service pension.
(f) It
has also been observed that where the rates of pension in certain
category/ranks are not available, rates of pension for pre-2006 retirees both
for commissioned officers and JCOs/ORs have been included in the tables. In
this regard, it is intimated that after implementation of MoD letter dated
3.9.2015, pension of pre-s006 retiree commissioned officers is determined with
reference to minimum pay as per fitment tables of the rank. This protection is,
however, not available to post-2006 retiree commissioned officers. Further, the
rates of classification allowances is taken only if the same is actually drawn
while determining the minimum guaranteed pension for post-2006 JCOs/ORs
pensioners in terms of MoD letter dated 18.8.2010. It is, therefore, requested
to review the issue and examine whether allowing the rates of pension for
pre-2006 pension would give only additional benefit to post-2006 retirees for
which they are otherwise not eligible. Remedial measures in this regard may
also be suggested for consideration.
(g) Further,
the confirmation on out-layers with reference to service profile of the 2013
retirees with the concerned Record Offices has also not been confirmed fully,
which would ensure that the effect of higher or lower pension in account of
special dispensation or circumstances does not flow into the final tables.
B. Discrepancies found in data
rendered by PCDA (Navy) and JCDA (AF)
1) An
exercise was separately carried out with Pr CDA (Navy) and Jt CDA (AF) to
verify and confirm the correctness of their pension rates with reference to
out-layers and other specific cases in consultation with the respective Record
Offices.
2) After
review, Jt CDA (AF) have now rendered corrections and revision in the rates of
pension (of) Air Force personnel, which are at variance to figures earlier
provided to Pr CDA (P) for preparation of final tables. A copy of the revised
rates of pension at different ranks and qualifying service wherever effected is
also attached herewith as Annexure D which may be got incorporated and updated in the data before preparing
final tables to ensure the benefits are worked out with reference to minimum
and maximum pension across three services. Similar data of Naval personnel is
under process with Pr CDA (Navy) and will be provided separately as Annexure
E.
4. Keeping
in view the observations and discrepancies as noticed and brought out in Para 3
above, the following course of action is requested on priority:
(a) To
review the data and figures as forwarded herewith with reference to
discrepancies pointed out and update/revise the figures wherever applicable,
draw and render revised tables duly indicating pension rates of all categories,
ranks and qualifying service in line with OROP notification.
(b) As
already conveyed, the out layers as defined and now confirmed by the MoD/GoI
have to be excluded from the data base. Accordingly, follow up action may
please be taken with respective Record Offices/Service HQ to expedite the
desired inputs by adopting all possible means including email/tele
conversations. In case of any lack of response, the matter may please be
referred to this HQ office for taking up the matter with MoD for further
necessary action in the matter. It may be doubly ensured that the profile of
out-layers is duly corroborated with the concerned Record Offices/Service HQ
and effect transcribed in the final tables ensuring that only affected retirees
of each rank and qualifying service figure in the tables in line with MoD/GoI
directives.
(c) The
effect of minimum and maximum across three services be duly accounted for in
the revised tables after verifying the data rendered by PCDA (Navy), JCDA (AF)
and that of Army developed by PCDA (P).
5. The
Draft Govt Letter (DGL) forwarded by the PCDA (P) is also being re-worked
before submission to MoD, a copy of which will be provided to Pr CDA (P)
Allahabad for review and for working out implementation circulars accordingly.
6. Since
all approvals and notification on the subject have been conveyed by the
government, the matter now rests with the department to finalise tables and
implementation matrix on war footing. It is, therefore, requested that the
revised tables be drawn up with reference to the figures and observations being
communicated herewith and rendered to this HQ office without fail by 8th
January 2015 (?) for further scrutiny and
submission to MoD/GoI on priority. Wherever required, the PCDA (Navy) and JCDA
(AF) may be consulted on priority to ensure full correctness of the data being
revised. It is also reiterated that while working out the revised and final
tables, it may be ensured and confirmation rendered that the tables have been
worked out in line with existing pension regulations and strictly in accordance
with the contents of OROP notification of 7th November 2015. The
revised tables and explanatory notes wherever deemed fit be submitted alongwith
the certificate of the Committee appointed for the purpose and duly approved by
PCDA (P).
7. Kindly acknowledge receipt and confirm
action,
This issues with the approval of the CGDA.
Sd/--------------------
(Rozy Agarwal)
Jt CGDA (Pen)
Copy
for information and necessary action to:
(1) Shri Rakesh Sehgal IDAS, PCDA (Navy),
Mumbai
(2) Shri R N Dash IDAS, CDA (AF), New Delhi
(3) Shri Amit Gupta IDAS, JCDA (AF), New Delhi
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