CAG Report on Defence Pensions

https://cag.gov.in/sites/default/files/audit_report_files/Report_No.26_of_2017_-_Performance_audit_Union_Government_Disbursement_of_Defence_Pension_Reports_of_Defence_Services.pdf

Latest as on 01 Oct 2020 last file noting on OROP-2 with MoD/DESW

Update OROP DESW 00771

Online RTI Request Form Details
RTI Request Details:-
RTI Request Registration number DEXSW/R/E/20/00771

Public Authority Department of Ex-Servicemen Welfare

Personal Details of RTI Applicant:-

Name Air Mshl S Y Savur PVSM AVSM retd

Description of Information Sought

Sir,
Please provide information as defined in Sec 2(f) of the RTI Act, 2005 by way of photocopies of file notings, OM, ID Notes, correspondence, memos, emails, minutes of meetings, tables, drafts or any other record between DESW and O/o CGDA regarding revision of OROP on completion of 5 years from year 2014 subsequent to CGDA reply no. 5699/AT-P/OROP-2/Vol-II dated 31.7.2019 and as on date of this application viz. 23.8.2020

2. Please enable online payment of additional fees. If convenient to the CPIO the information may also be provided online.

Reply dated 21 Aug 20
File No. 1(1)/2019/D(Pen/Pol)

Department of Ex-Servicemen Welfare
D (Pension/Policy)

FR – CGDA letter dated 31.07.2019 regarding fixation of pension under OROP

   With the approval pf Hon’ble Raksha Mantri vide note on page 17/ante, a Committee under the Chairmanship of CGDA was constituted to work out the modalities & methodology of implementation of next revision of pension under OROP, vide MoD order dated 14.6.2019 (page 24/cor).

2.   In the above context, CGDA vide letter dated 31.7.2019 had stated that various Ex-Servicemen Associations and individuals are approaching CGDA office with issues and suggestions related to revision of pension under OROP. CGDA has further mentioned that as per terms & conditions laid down in MoD order dated 14.6.2019. it is observed that the Committee has not been mandated to invite or examine suggestions from the public. Further the time period of one month to submit the report is not adequate for the committee to examine these representations. Therefore, CGDA has submitted that present representations and others to be received would be examined separately by the Department if these would be part of deliberations of the committee. 

3.   It is submitted that as per MoD order dated 14.6.2019, the above mentioned Committee to submit its report to this Ministry within a month. The Committee has haled two meetings on 25.6.2019 and 10.7.2019. However, in their letter dated 24.7.2019, CGDA has requested this Ministry to grant additional time of at least three months for submission of the report. However, in our reply vide letter dated 31.7.2019 we have requested CGDA to make efforts to conclude the deliberations in the next meeting of the committee and submit the report within the shortest time without seeking extension/additional time. It is also submitted that the deliberations with Ex-Servicemen Associations and individuals are not part of terms & conditions of the committee.   

4. With regard to current reference dated 31.7.2019 of CGDA, file is submitted for kind perusal/further orders please.

Sd/-------13.8.19

DS (P/P) Sd/------- 13/8/19

JS (ESW) Sd/------ 13/8/19

DS PP   Sd/-------------13/8

US PP   Sd/-------------- 13/8

Refresher RTI Application to CGDA (CGDFA/01973 dated 21.9.2020)
 
Please refer to O/o CGDA letter No. 5699/AT-P/OROP-2/Vol III dated 24.7.2019 requesting for an additional time of 3 months for submission of report qua OROP-2 and GoI, MoD, DESW reply dated 31.7.2019 not agreeing to additional period but requesting O/o CGDA to submit the report within the shortest time by concluding the deliberations at the next meeting (after the already concluded meeting held on 10.7.2019) and not seeking additional time. (Please see supporting document).

2. Therefore, the following information is requested: -

2.1. The date the meeting subsequent to 31.7.2019 was held.

2.2. The status of the report i.e.

(i) is the report completed ,

(ii) if the report is completed then the date on which it was submitted to MoD, DESW,

(iii) if not completed photocopies of the file notings, OM/ID Note/UO/minutes of intra-departmental meetings including record of deliberations on the inability for completing the report.

2.3. If the report has been submitted, then a photocopy of the same.

3. It is known that the working of O/o CGDA would have been affected by the lock down which was ordered by GoI on 24 Mar 2020 viz. more than 6 months after the MoD/DESW requested expediting the report.

4. Please enable online payment of additional fees, if any.

[RTI Online: Request/Appeal Form Details https://rtionline.gov.in/request/regdetails.php?regId=4qFA3isuUsA82...
1 of 2 21/09/2020, 17:10]

Reply dated 28.9.2020 from O/o CGDA

Controller General of Defence Accounts
Ulan Batar Road, Palam, Delhi Cantt – 110 010

No. 5699/AT-P/OROP-2/Vol – III                     25.9.2020

To,

Subject: Information under RTI Act – 2005
Reference: Your RTI registration No. CGDFA/R/E/20/01973 dated 21.9.2020

Please refer to your online application dated 21/09/2020. The point-wise reply is as under:

Point 2.1.

   No meeting has been held after 31.7.2019.

Point 2.2.to 2.3

   Not applicable as per information provided in Para 2.1. above. Since no meeting was held after 10.7.2019, there is no information on these points at this stage.

3.   In terms of Section 19 (i) of RTI Act 2005, first appellate authority is as under:

   Name: Shri Mohit Sharma, IDAS
   Rank: ACGDA (Pension)
   Address: O/o CGDA, Ulan Batar Road, Palam, Delhi Cantt - 110010

    Sd/----------
   Awadesh Kumar Srivastav
   Account Officer  (AT-P)
    CPIO

 

Online RTI Appeal Form Details

 

RTI Appeal Details:-
 

RTI Appeal Registration number CGDFA/A/E/20/00312
Public Authority Controller General of Defence Accounts (CGDA)
Personal Details of Appellant:-
Request Registration Number CGDFA/R/E/20/01973
Request Registration Date 21/09/2020
Name S Y Savur
Appeal Details :-

Ground For Appeal Provided Incomplete,Misleading or False Information
 

CPIO of Public Authority approached AT (PENSION) c AWADESH KUMAR SRIVASTAVA

CPIO's Order/Decision Number Details not provided

CPIO's Order/Decision Date
(Description of Information sought (upto 500 characters)

Prayer or Relief Sought

Reference is made to reply of CPIO which is incomplete (please see supporting document). Hence this first appeal.

2. O/o CGDA requested MoD/DESW for an extension of 3 months or more which was declined by MoD/DESW which requested the O/o CGDA to conclude the matter at the next meeting.

3. While the CPIO states that no meeting was held after 31.7.2019, the CPIO has not provided complete information requested in Para 2.2. (iii) which was that if the report was not completed, then photocopies of the file notings, OM/ID Note/UO/minutes of intra-departmental meetings including record of deliberations giving information on the inability of O/o CGDA to hold the meeting and for completing the report as required by Ministry.

*   *   *   *   *

Revision of OROP after 5 years aka OROP-2019 vs Notional Pay Based Pension

I have relied on the following documents before writing this post: -

(a) Relevant portions of Para 6 of the 142nd Report of the Rajya Sabha Committee on Petitions aka Koshyari Committee report re-produced below, specifically the submissions by representatives of the Army, Air Force and not relevant submissions of Navy on periodicity: 

"6.4 He (Army Representative) further submitted that there is administrative difficulty on the part of the Ministry that pensioners cannot be given increment every year. So, perpetually they will never be at par with current retirees. As a way out, he suggested fixing a period of five years or every Pay Commission to Pay Commission, for bringing all pensioners at par. He suggested a similar exercise for the family pensioners also.

6.5 The representative of the Air Force submitted that to bridge this gap the suggestion regarding fixation of pay in five-year period or Pay Commission to Pay Commission was a good one and informed the Committee that the long pending issue may be sorted out this way.
 

6.6 The representative of the Indian Navy apprised the Committee about the unique life and difficulties which were experienced by a man in uniform. He stated that the family as well as the men in uniform was living in such a difficult conditions and they had to sacrifice so much in their life that special recognition should be given to boost the morale of the Armed Forces. He also added that even after retirement, a man in uniform cannot pursue any other business and they have a very limited job opportunity after retirement.

(b) Para 3 of the MoD letter 12(1)/2014/D(Pen/Pol) - Part II on OROP dated 07.11.2015: -

  ...ii. 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 same length of service.

iii. Pension for those drawing above the average will be protected.

 ....v. In future the pension would be re-fixed every 5 years.

(c) Tables of OROP vide PCDA (P) Circular No. 555 which is 50% of the average of the minimum and maximum reckonable (for pension) emoluments drawn by a similarly situated officer retiring in 2013. It must be borne in mind that this amount is not 50% of the minimum of, say, the Pay Band-4 of Rs 37400 and maximum of the same pay band Rs 67000 + Grade Pay as appropriate.

Illustratively, the OROP amount for same rank and same years of service on date of retirement would vary because 

(i) those promoted earlier to say Col would have earned more number of increments whilst 

(ii) those promoted later would have earned lesser number of increments, and 

(iii) the average would be somewhere in between, with

(iv) protection for those in (i) as by law, their pension cannot be reduced.

(d) Recommendations of the 7th CPC for more beneficial of (i) pension as drawn on 31.12.2015 multiplied by 2.57 as an interim measure, or (ii) 50% of the Notional Pay drawn on date of retirement as the final pension. Accordingly, tables were provided in PCDA (P) Circular No. 608 dated 17.10.2018.

2. Revision of Pensions: Pensions were revised w.e.f. 1.1.2016 as an interim measure at d(i) above and now the concerned PSA is in the process of issuing e-PPOs in compliance with d (ii) above.

3. CGDA has sought advice from MoD before actioning the clamour for revision of pension in Jul 2019 stating: -

(a) Revision of pension vide Para 1 (d) (i) above w.e.f. 1.1.2016 meets the criteria for enhancement of pension within the 5 year period, and is in consonance with the Army and Air Force reps submission that pension be revised every 5 years or from Pay Commission to Pay Commission

(b) PSAs' are actioning the GoI/MoD order dated 17.10.2018 for Notional Pay based pension vide issue of e-PPOs and that these take into consideration increments earned by those promoted to a certai rank earlier than others but all retire with the same number of years of service.

(c) What are the modalities for revision in Jul 2019 i.e. OROP 2014 was based on pension drawn by personnel retiring in a particular rank with same years of service now that pension of the average amount indicated in Circular 555 and also higher as protected by MoD letter of 07.11.2015 of has been revised w.e.f. 1.1.2016.

(d) ACAS (Accts) as Chairman PARC has stated that there are cases of personnel retired in 2015 and 2016 drawing lesser pension as compared to those drawing OROP w.e.f. July 2014,   

4. In my personal opinion OROP is RIP because of the Notional Pay based pension because personnel of the same batch/course are promoted to higher ranks at different time frames (eg. Army has 0 year for Combat Arms, +1year for Combat Support and +2 years for Services as per Command Exit Policy), thereby earning more increments which results in higher reckonable emoluments on date of retirement than those promoted later. 

For instance, in Cir 555, Table 1, if a Col's pension value of Rs 36130 is taken, the pay (multiplied by 2) would be Rs 72260 and pension as on 1.1.2016 as per Option (i) of 7th CPC would be Rs 92854.  

However, on page 196 of Cir 608, for Col drawing Rs 72260 (OROP Rs 36130), there is a pay range of Rs 70360 - 72450 (i.e. OROP of Rs 35180 to Rs 36225) for which the notional pay in 7th CPC is shown as Rs 186200; so pension as per Option (ii) in 7 CPC would be Rs 93100.

P.S: A fresh RTI has been filed on 28.8.2020 requesting for the latest file notings on OROP - 2.