Tuesday, 18 February 2025

Stating theTruth is Necessary

 

First, the Rajya Sabha Committee on Petitions aka Koshyari Committee was told that the 3rd CPC stopped One Rank One Pension (OROP) in 1973 after the Indian Armed Forces liberated Bangladesh. Then they fought legal battles without a shred of supporting evidence that it was indeed so. Now, the honourable Principal Bench of the Armed Forces Tribunal is being provided with the same mistruths. This piece does not deal with the alleged injustice by denial of OROP to those who left service on PMR but provides facts about the 3rd and 4th CPC and their recommendations for pensions for Armed Forces personnel.

 2.       To understand the context, please read the 87 pages long Order dated 31 Jan 25 of honourable AFT, PB in OA No 313 of 2022 with MA 415 of 2022 & MA 416 of 2022 and tagged OAs. Link to the Order is https://aftdelhi.nic.in/assets/judgement/2025/OA/OA%20191of%202025%20Arun%20Kumar.pdf    

 3.       The definition of One Rank One Pension (OROP) in the MoD letter No. 12(1)/2014/D(Pen/Pol) – Part II dated 07 Nov 2015 reads as follows: -

 “2.     It has now been decided to implement ‘One Rank One Pension’ (OROP) for Ex-Servicemen with effect from 1.07.2014. OROP implies that uniform pension be paid to the Defence Forces Personnel retiring in the same rank with the same length of service, regardless of their date if retirement, which implies bridging the gap between the rates of pension of current and past pensioners at periodic intervals.  

 4.       In Paras 5 and 12 of the Order of the AFT, PB it is recorded, inter alia “The applicants giving the background of the issue of ‘One Rank One Pension’ (OROP) stated that till 1973 Armed Forces personnel had the parity of pension irrespective of date of retirement in a particular rank with same length of service popularly known as ‘One Rank One Pension’ (OROP) but the same was discontinued from the 3rd Pay Commission from 1973 onwards….” (emphasis supplied).

 5.       This not borne out by recorded facts

 (a) Armed Forces pensioners drew Standard Rate of Pension and not One Rank One Pension as defined in the ibid letter dated 07 Nov 2015.  

 (b)     Para 6, Chapter 53, Volume III of the 3rd CPC’s report (available at https://indianculture.gov.in/reports-proceedings/report-third-central-pay-commission-1973-vol-iii) states “….Although there are some variations in the age of compulsory retirement and tenure of appointments in a rank among the different groups of officers belonging to the three Services, ……, the pension rates prescribed are uniform for all Service officers of the same rank. The standard rates of pension for officers of the three Services in force from time to time are given in the table below (emphasis supplied): - 

 

TABLE IV

(in rupees)

Rank

Between

1-6-53 and

16-4-56

Between

17-4-56 and 30-9-61

From 1-10-61

Post DCR Gratuity pension after 10-9-70

(1)

(2)

(3)

(4)

(5)

2nd Lt/Lieut

275

275

300

272

Captain

350

350

425

377

Major

475

475

550

482

Lt Colonel

625

625

675

587

Colonel

675

675

750

638

Brigadier

725

800

825

696

Maj General

800

875

875

735

Lt General

900

900

900 (975 from 12.10.1970)

819

General

1000

1000

1000

840

 

The amounts in columns (4) and (5) of the above table are current rates of pension; rates in column (4) pertain to the amount of pension admissible where no DCR Gratuity is payable and those in column (5) to pension admissible in conjunction with DCR Gratuity.

 

xxxx                                                           xxxx                                        xxxx

 (c)      In Para 13, the 3rd CPC report states, “13.       After much deliberation, we have reached the conclusion that the most appropriate method of providing a compensatory element in pension rates would be to add a certain number of years of service to the period of qualifying service prescribed for earning full pension for the various ranks and applying for each year of service the rate of 1/80 of the maximum pay fixed for that rank. In the context of our conclusion that the standard rate system for the pension of Service officers should be continued, the weightage of additional years cannot be added to the length of service actually rendered but it has to be added to the minimum period prescribed for earning pension of the rank. Our calculations show that the two benefits in combination, viz., (a) taking the maximum of pay of the rank and (b) adding a period of 5 years, subject to the total not exceeding 33 years, would provide a reasonable degree of compensation. This approach can be adopted only for officers retiring in the rank of Brigadier or below. Further, in the case of Lt Colonel, we have found it necessary to give additional weightage in order to maintain comparability in the order of increase proposed over the existing pension rates in the Armed Forces and on the civil side. Thus, we have added an extra year for officers in the rank of Major and two years for officers in the rank of Captain or below. It is to be noted, however, that the chances of a Service officer retiring below the rank of major on a normal pension are remote and these rates have relevance mainly for determining the amounts of disability and invalid pensions. For senior officers, the pension will have to be determined on the basis of reasonable differential because in their case the pay of the rank exceeds the maximum of the emoluments reckoned for pensions on the civil side” (emphasis supplied).   

 (d)     In Para 14, the 3rd CPC report states, inter alia,       “In accordance with the above principles, we recommend the following standard rates of pension for Service officers after provision of the DCR Gratuity (emphasis supplied): -

 

TABLE V

 

Rank

Minimum length of qualifying service

Proposed pension

(Rs p.m.)

Subaltern

20 years

325

Captain

20 years

500

Major

22 years

625

Lt Colonel

24 years

700

Colonel

26 years

850

Brigadier

28 years

1000

Maj General

30 years

1050

Lt General

30 years

1100

General

30 years

1150

 

 6.      Therefore, it is fair to understand that irrespective of whether an officer drew the minimum or the maximum of the scale for a rank, the Standard Rate of Pension was a fixed amount appropriate to his rank but was not termed One Rank, One Pension.

 Example: Pay scale for a Colonel was Rs 1550-1930. Whether one Col A with 26 years service drew Rs 1550 or Col B with 29 years service drew Rs 1930, both received the Standard Rate of pension of Rs 850 (as long as both completed 26 years of service).

 [Though not relevant to the OA, the 3rd CPC recommended as follows for PBoR: -

 “43.   After detailed consideration, we have reached the conclusion that the right course would be to adopt the same approach for determining the pensions of personnel below officer rank as we have commended in relation to Service officers, viz., adding a weightage of 5 years to the prescribed length of qualifying service, subject to the total length of service reckonable for pension not exceeding 33 years, and applying the formula of 1/80 of emoluments as on the civil side for calculating the pension amount in conjunction with DCR Gratuity. We also proposed that the maximum of the pay scale prescribed for various ranks should be taken into account for calculating the pension of the rank. The addition of 5 years in cases where the period of qualifying service prescribed for earning pension of the rank is less than 20 years is a substantial benefit, which, we feel, provides adequate compensation for the liability to recall and the problems occasioned by early release from the Services, such as the transition from military to civil life, and the attendant uncertainty about securing suitable civil employment. We would again emphasise that the Government’s efforts should be viewed as a whole, and the adequacy of the 5 years weightage should be judged in the light of the package of other measures for the resettlement of released personnel from the Armed Forces (emphasis supplied)].      

 7.       Reverting to the OA, further, the statement of the counsel for respondents at Para 36 of ibid Order that OROP is a new concept has been contested by the counsel(s) of the applicants in Para 41 in ibid Order. The definition on 07.11.2015 (re-produced in Para 2 above) above differs from definition of Standard Rate of Pension (para 4 above) that prevailed even in the 3rd CPC.

 8.       At Para 44, Page 48 of ibid Order it is stated that, “..The scheme was being implemented till 1973 when the Third Central Pay Commission took a decision to revoke it “is contrary to the Report of the 3rd CPC.

 9.       Standard Rate of Pension was not revoked by 3rd CPC but was superseded when Govt accepted the recommendation regarding a common method of calculation of pension by the 4th CPC in 1987 for all civilian Govt employees and Armed Forces personnel (Officers and PBoR).

 10.     4th CPC’s report, Part II, Chapter 13 titled Recommendations for Non-Effective Benefits for Armed Forces states, inter alia,

“…..13.10. The Services Headquarters have suggested that the quantum of pension for each rank should be calculated at a flat rate of 50 per cent of the maximum pay (including rank pay). We have recommended improved pay scales for armed forces personnel in Part I of our report. The time span of many of the scales for personnel below officer rank has been further improved by government at the time of implementation of our recommendations. We have recommended in chapter 5 that pension which confers a long term benefit should be related to basic pay only and that instead of the slab system, it should be calculated at 50 per cent of pay drawn during the last ten months of service. We recommend that for armed forces personnel also pension should be worked out on a similar basis with rank pay added to basic pay (emphasis supplied).  

           We have recommended ceiling of Rs 4500/- per mensem on basic pension in Chapter 5. This will apply to armed forces personnel also.

 11.     In Chapter 5, at Para 5.19 the 4th CPC Report states,  “– Pension Fixation: - The existing pay slabs in the pension formula are related to the pre-revised pay structure. These would need modification in the light of the revised pay structure recommended by us in Part I of the report. The Parliament has in a recent enactment, namely the High Court and Supreme Court Judges (Conditions of Service) Amendment Act, 1986 fixed a pension of Rs 4500/- per mensem for Judges of the Supreme Court on salary of Rs 9000/- per mensem and a pension of Rs 4000/- for judged of the High Court on salary of Rs 8000/- per mensem. The pension thus payable works out to 50 per cent of the salary. Keeping this in view and to simplify and rationalise matters, we recommend that pension may be calculated at 50 per cent of pay for all categories of Central Government employees” (emphasis supplied).

 Report available at this link http://www.cgspublicationindia.com/Pdf/Pay%20Commissions/Fourth%20Pay%20Commission/4th%20CPC%20(Report,%20Part-2).pdf) 

 12.     The problem/complication in applying the 4th CPC formula is that not every Armed Forces officer of a certain Course/batch and rank (Colonel A) or another of the same Course/batch and rank (Colonels B, C or D) though they might have the same years of service (28 years) will draw the same total emoluments on the date of retirement. This is because Col A might be promoted earlier and Cols B, C and D promoted later subject to merit/vacancies.

 13.     Therefore,

 (a)     Officers of the same rank with the same number of years of service will draw different amounts as total emoluments on the date of retirement, thereby their pensions will be different.

 (b)     The protection for those earning higher pensions than OROP.   

 (c)      The definition of One Rank One Pension dated 07 Nov 2015 cannot assure that all officers of the same rank with same number of years of service will draw the same amount as pension.  

                                 *        *        *        *        *        *        *

Monday, 17 February 2025

Being better prepared for 8 CPC

 

On Being better prepared for the

Eighth Central Pay Commission

  

Govt has announced the formation of the 8th CPC. Should we learn lessons from the recommendations and the subsequent events of the 6th and 7th CPCs?

6th CPC and Armed Forces

 

2.                  In 2008, after the report of the 6th CPC was made public, the Govt allowed the Armed Forces to express their reservations with the recommendations of the 6th CPC. Dr Manmohan Singh, the then Prime Minister (may his soul rest in peace), appointed a Group of Ministers (GoM) with then Minister of External Affairs, Shri Pranab Mukherjee (RIP) as its’ Chairman with Shri P Chidambaram, Finance Minister and Shri A K Antony, Defence Ministers as members. The GoM, wrote in a DO to the PM (Ref No. 13787/EAM/2008 dated 19th December 2008) enclosing the Report that

 

“3.       The Central Pay Commissions (CPCs) are meant to suggest revision in pay for a broad category of government employees. The CPCs, by no stretch of imagination, are meant to do the cadre management or improve the service prospects of individual service groups. The CPCs have somehow been turned into instruments for dealing with inter se cadre management problems by various services. The questions relating to inter se parity, seniority etc have to be dealt with by the respective cadre controlling authorities“(emphasis supplied).

 

3.         The GoM recommended that “The pay revision of the armed forces should be delinked from the civilian pay revisions. Separate Board or Commission should be set up to recommend the pay scales of the Armed Forces in future. You may like to approve these recommendations for implementation.” This was approved by the PM vide PMO ID No. 1176973/PMO/2008 dated 27.12.2008 (emphasis supplied).

 

4.         It appears that when the GoM of December 2008 could not resolve the dissatisfaction in the Armed Forces, the then PM constituted two Cabinet Secretary headed Committees (CSC) one in June 2009 and the second in July 2012 to examine the recommendations of the GoM in greater detail and resolve other issues. Sadly, neither of the CSCs had representation from the affected party, the Armed Forces. The CSCs quoted the GoM Report innumerable times, and using the GoM report as “precedent” to deny, dilute or delay resolution. Subsequently, the Ministries of Defence, Finance and the Controller General of Defence Accounts (CGDA) quoted the GoM or CSCs or all three as frequently to deny, dilute or delay resolution.  

 

Extracts

Recommendations of the GoM of December 2008

 

xxxx                                                                xxxx                                                    xxxx

 

6.         To sum up, the following recommendations are for approval/implementation:

 

(i)         The pensionary benefits of all PBORs may be given without disadvantage to any category and an Anomaly Committee may be set up immediately to address any such cases.

 

(ii)        Lt Cols, who are in their parent service in combat or ready to combat jobs may be placed in PB-4. Those Lt Col level officers who are on deputation would be entitled to PN-4 only when they return to parent service.

 

(iii)       The Grade Pay for Lt Cols who are in their parent service in combat of ready for combat jobs may be fixed at Rs 8000/- as against the Grade Pay of Rs 8700/- for Colonels/Directors. Those Lt Col level officers who are on deputation would be entitled to the above grade pay only when they return to parent service.

 

(iv)       A High Powered Committee may be set up to resolve the issues relating to command and control functions/status of Armed Forces vis-à-vis Paramilitary Forces and Civilians.

 

(v)        The Pay revision of the Armed Forces should be delinked from civilian pay revisions. Separate Board or Commission should be set up to recommend the pay scales of the Armed Forces in future.

 

7.         If so desired, Prime Minister may convene a final meeting with Finance Minister, Raksha Mantri and myself, before announcing these decisions.

Sd/------------------

(Pranab Mukherjee)

External Affairs Minister

Prime Minister

                       

Recommendations of the CSC 2009

xxxx                                                                xxxx                                                    xxxx               

 

SUMMARY OF RECOMMENDATIONS           

 

8.         To sum up, the following recommendations are made by the Committee: -

 

Personnel below Officer Ranks

 

(i)         The proposal of Ministry of defence to bring pre 10.10.1997 PBOR pensioners on par with post 10.10.1997 PBOR pensioners may be agreed to. Since this is a new concession aimed at improving the pension of PBORs, the benefit will be given prospectively and no arrears are to be given. The financial implications for the proposal would be Rs 470.66 crore per annum.

 

(ii)        The proposal of the Ministry of Defence to reckon the enhanced rate of classification allowance w.e.f.1.1.2006 on notional basis for the purpose of calculation of pension (as in the case of reckoning MSP for determination of pension) may be agreed to. This recommendation would benefit around 88, 000 PBORs who retired between 1.1.2006 and 31.8.2008. The average increase in pension of these PBORs is estimated to be Rs 60 p.m. in Basic Pension. The financial implications for this proposal will be Rs 7.73 crore per annum. This proposal emanates from Sixth CPC’s recommendations and may be implemented w.e.f 1.1.2006. Accordingly, arrears will be paid.  

 

(iii)       In order to reduce the gap between the pensions of pre and post 1.1.2006 PBOR pensioners, its is proposed to follow the principle of the Award of GOM of 2006 in the following manner: -

 

(a)        To reckon the pension of all pre 1.1.2006 PBOR pensioners with reference to a notional maximum in the post 1.1.2006 revised pay structure corresponding to the maximum of pre-Sixth Pay Commission pay scales as per fitment table of each rank.   

 

(b)        Also to continue with enhanced weightage awarded by the GOM.

 

This dispensation, which will be applicable to service pension as in the case of GOM award of 2006, will result in average monthly increase in pension of pre 1.1.2006 PBORs in the range of Rs 800 to Rs 1400 for Group Y depending on the rank and years of service. This will benefit approximately 12 lakh pre-1.1.2006 PBOR pensioners. The financial implications on account of this proposal would be Rs 1636 crore per annum. Since this is a new concession aimed at improving the pension of PBORs, the benefit will be given prospectively and no arrears are to be given.

 

Commissioned Officers

 

(iv)       The proposal to remove the linkage of full pension with 33 years of qualifying service w.e.f 1.1.2006 instead of 1.9.2008 in the case of Commissioned Officers may be agreed to. A similar dispensation will have to be extended to civilians who have retired between 1.1.2006 and 31.8.2008. This recommendation would benefit around 1100 Officers (Army) whose pension would increase by about Rs 3000 p.m. In the case of civilians, this dispensation will benefit only those who have taken voluntary retirement after rendering 20 to 28 years of service. The number of such personnel is not likely to be significant. The financial implications for this proposal will be Rs 4.83 crore per annum. This proposal emanates from Sixth CPC’s recommendations and may be implemented w.e.f 1.1.2006. Accordingly, arrears will be paid. 

 

(v)        In order to address the issue of disparity in the pension of pre and post 1.1.2006 pensioners at the level of Lt General/equivalent/Additional Secretary & equivalent civilian categories, a separate pay scale starting at Rs 67000 and going up to Rs 79000 may be created and all officers of the level of Lt General/Additional Secretaries/equivalents may be fixed in this scale. As a result of this, the pension of pre 1.1.2006 Lt Generals will get fixed at Rs 36500 and those of Additional Secretaries at Rs 33500. This will benefit roughly 4000 officers. The financial implication for this proposal will be Rs 25 crore per annum. The proposal emanates from Sixth CPC’s recommendations and may be implemented w.e.f 1.1.2006. Accordingly, arrears will be paid.   

 

All Defence Pensioners

 

(vi)       It is proposed to agree to broad-banding of percentages of disability/war injury pension for pre-1.1.1996 disability/war injury pensioners. The financial implications of the proposal will be collated by Department of Expenditure from Department of Ex-Servicemen Welfare, Department of Pensions and Ministry of Home Affairs.

 

(vii)      It is proposed to remove the cap on war injury element of pension in the case of disabled pensioners belonging to Category E. This will also be applicable to civilian personnel, including those belonging to Central Para Military Forces. The financial implications of the proposal will be collated by Department of Expenditure from Department of Ex-Servicemen Welfare, Department of Pensions and Ministry of Home Affairs. 

 

9.         The financial implications of the above proposals from (i) to (v) at a glance are as under: -

 

Sl No.

Proposal

Annual Implications

(crore)

(a)

Inclusion of classification allowance for PBORs from 1.1.2006

7.73

(b)

Removal of linkage of full pension with 33 years from 1.1.2006

4.83

(c)

Revision of Lt General pension after carving out a separate pay scale for them

25

(d)

Bringing parity between pension of pre and post 10.10.1997 PBOR pensioners

470.66

(e)

Further improving PBOR pensions based on award of GOM 2006

1636

Total

2144.22

 

Financial implication on account of arrears of (a), (b) and (c) = Rs 164.5 crore

 

Recommendations of CSC 2012

xxxx                                                                xxxx                                                                xxxx

SUMMARY OF RECOMMENDATIONS

33.             To sum up, the following recommendations are made by the Committee:-

Issues relating to ex-servicemen and consisting of pension related anomalies

(a) One Rank One Pension

(1) JCOs/ORs: -

 

The 2009 Committee had bridged the gap between pre and post 1.1.06 JCO/OR pensioners to a large extent. The difference between pre and post 1.1.06 JCO/OR pensioners presently exists due to the (a) change in pension formula to 50% of last pay drawn/10 months’ average and higher pension drawn by post 1.1.06 retirees on account of increments earned after 1.1.06 and (b) use of the maximum pay of rank and group across the three Services for determination of the notional maximum of the pay scale in the method allowed as an option.

In order to bridge the gap between pre and post 1.1.06 JCO/OR pensioners and as a measure of improvement in the pension of JCOs/ORs, the Committee recommends the following:

(a)              The gap in the pension of pre 1.1.06 JCO/OR retirees and post 1.1.06 retirees may be bridged by determining the pension of pre 1.1.06 JCO/OR pensioners also on the basis of notional maximum for the ranks and group across the three Services as in the case of post retirees. It will, however, not be feasible to grant a pensionary benefit in comparison with the serving JCOs/ORs who earn increments after 1.1.06 and opt for calculation of pension at 50% of last pay drawn/10 months’ average. 

(b)              Further, the current weightage in qualifying service of 10 years, 8 years and 6 years in the ranks of Sepoy, Naik and Havildar may be increased by two years to 12 years, 10 years and 8 years, respectively for pre-01.01.06 retirees. This would also need to be applied to post retirees for the purpose of calculation of pension based on the notional maximum of the pay scale across the three Services.

(2)              Commissioned Officers

At present, the pension of pre 1.1.06 Commissioned Officers is stepped up with reference to the minimum of the pay band + grade pay + Military Service Pay. The Committee recommends that stepping up of the pension of pre 1.1.06 Commissioned Officers may be done with reference to the minimum of the fitment table for the rank instead of the minimum of the pay band. This would also be applicable to Honorary Commissioned Officers.

 

(b)               Enhancement of Family Pension

The Committee recommends the following measures in regard to family pension:-

(i)                 The pension of pre 1.1.06 family pensioners (Commissioned Officers, Honorary Commissioned Officers, JCOs/ORs) may be stepped up based on the minimum of the fitment table instead of the minimum of the pay band.

(ii)              Further, the Committee has made recommendations on the manner in which the pension of pre 1.1.06 JCO/OR pensioners will be revised, Establishing a linkage of the family pension with the pension of JCOs/ORs in those cases where the death takes place after the retirement of the JCO/OR since such a JCO/OR drew a pension based on the maximum of the pay scales, the Committee recommends that 60% of the pension applicable to JCO/OR pensioners may be granted to the family pensioner in case of normal family pension calculated at 30% of last pay drawn. Accordingly, based on the rank, group and length of service of the deceased JCO/OR pensioner, his pension based on this Committee’s recommendation on the revision of pension of JCOs/ORs would first be determined on notional basis. In cases where death of JCO/OR took place after retirement, the family pensioners in receipt of normal family pension would become entitled to 60% of the said pension determined on notional basis and those in receipt of enhanced family pension will be entitled to 100% of this pension. Similar entitlements would be determined in the case of special family pension.

(iii)            The family pensioner of the JCO/OR may be granted family pension arrived at on the basis of the family pension worked out as per the formulation at (ii) above or the pension on the basis of stepping up with reference to the minimum of the fitment table, whichever is beneficial. Further, the linkage of family pension with retiring pension would need to be applied in the case of post 1.1.06 family pensioners of JCOs/ORs also.

(c)               Dual Family Pension

As per present provisions, a pensioner who gets second employment in the Government after military employment is entitled to draw two pensions. Upon his death, however, the family is entitled to only one family pension. The Committee recommends that dual family pension may be allowed in present and future cases where the pensioner drew, is drawing or may draw pension for military service as well as for civil employment.

 

(d)               Family pension to mentally/physically challenged children of armed forces personnel on marriage

Under the present provisions, the family pension granted to mentally/ physically challenged children stops on their marriage. Considering the demand made in this regard sympathetically, the Committee recommends the continued grant of family pension to mentally/physically challenged children who drew, are drawing or may draw family pension, even after their marriage.

(e)               The recommendations made for pension and family pension of Commissioned Officers, dual family pension and continuance of family pension to mentally/physically challenged children on marriage may also be extended to civilian pensioners in view of the similarity of the present provisions.

(f)                 The above recommendations made on pensions may be implemented from a prospective date and payment made accordingly.

Issues relating to serving defence personnel

39.              The Committee deliberated at length on the pay related issues raised by the Defence Forces. It was noted that the pay related issues are complex and have ramifications across the Government, including on para-military personnel. The proposals made by the Defence Forces in many cases are at variance with some of the principles followed by the Sixth Pay Commission. Some of the proposals have already been considered subsequent to the Sixth Pay Commission.

40.              In this context, the Committee also noted that the next Pay Commission’s recommendations would be likely to be implemented w.e.f. 1.1.2016. If the Thirteenth Finance Commission’s recommendation that structural shocks such as arrears arising out of Pay Commission awards should be avoided by making the pay award commence from the date it is accepted is implemented, the next Pay Commission would need to be set up in the second half of 2013 or in early 2014.

41.               In the circumstances, the Committee recommends that the pay related issues may be specifically referred to the next Pay Commission for its consideration as the Pay Commission is the expert body set up for this purpose which can examine these issues in a holistic manner (emphasis supplied).

 

Financial Implications

42.              The total financial implication of the proposals in regard to pension is broadly estimated at around Rs 2300 crore per annum.

 It is expected that the recommendations made by this Committee on the issues of One Rank One Pension, Enhancement of Family Pension, Dual Family Pension and continuation of family pension to the mentally/physically challenged children of Armed Forces personnel after the marriage of such children, would largely meet

 

Adverse consequences of not having Representation for Armed Forces

 

5.         However, as subsequent events proved, Services HQ did not learn from the experience. When it was speculated that the Govt of the day would announce formation of the 7th CPC, the Armed Forces lost an opportunity to have a separate Pay Commission/Committee for then Chairman, CoSC wrote to MoD in September 2013, that Armed Forces do not want a separate Pay Board or Commission. Addl Secy in MoD opined, “Regarding the demand of the Services to be part of the Central Pay Commission with full representation from Services, it is observed that convincing grounds have not been brought forward by the Services to warrant any change in the decision which was taken by PM in Dec 2008 in consultation with RM and then EAM thereby approving setting up a separate Board or Commission for the pay revision of the armed forces. “ However, the then Raksha Mantri (Shri A K Antony), who was also a member of the aforestated GoM, directed that the Chairman, CoSC’s letter declining a separate Pay Board/Commission be forwarded to the PMO “without expressing any view” (Note 117 on File No. PC-1(13/2009/D (Pay/Services). So the unconvincing grounds for not having a separate Board disappeared from consideration. It was evident that the GoM could not, and the CSCs would not resolve the anomalies (please see summary of recommendations in Annexure IV). Thereafter, CSC 2012 projected the same issues to the 7th CPC, stating that the CPC is “…. an Expert body, which would take a holistic view” notwithstanding the opinion of the GoM in 2008.

 

7th CPC and Armed Forces

 

6.         The Chairman, CoSC demitted office and was on an assignment as Ambassador to Norway from Sep 14 to Aug 16 at the time the 7th CPC considered a Joint Services Memorandum (of which more later) and submitted its report (15 Nov 15). Despite the incumbent Chairman CoSC apprising the RM of the core concerns, Govt approved the report leaving an a Empowered Committee of Secretaries (ECoS) in which the Armed Forces were again left out to resolve the concerns. Results are described in the subsequent paragraphs. 

 

7.         Maybe, just maybe, all the issues that the GoM and two CSCs could not resolve would have found satisfactory solutions if there indeed was a separate Pay Commission/Board just as there were Departmental Committees alongside the First and Second Central Pay Commissions. At least the Armed Forces would have had an opportunity to place their recommendations directly to the Union Cabinet to decide.

 

8.         It should have been evident to all but the unwise, that lack of representation of Armed Forces by either a senior serving and knowledgeable or a similarly situated retired officer as a full time Member (like Mr Vivek Rae) or by a Joint Secretary equivalent in the Secretariat of the CPC is the reason that the issues continue to remain unresolved.

 

9.         The impact that the presence of a senior and knowledgeable Armed Forces officer/Veteran as Member would have ensured justice by placing as forceful a case as presented by Shri Vivek Rae, a retired IAS officer and Member of 7th CPC on behalf of the Indian Administrative Service’s (IAS) on reasons why the IAS must retain its “edge” of 2 increments over other All India Services (AIS). His strong defence at great length is available in the 7th CPC Report, Para 7.2.20, Pages 151 to page 158 and cites several judgments.  

 

10.       Though it is recorded that Prof Rathin Roy, the other Member, disagreed with the edge for IAS Officers (7th CPC Report, Para 7.2.21 followed by a discussion from Para 7.2.22 to 7.2.24), it is not recorded in the Report (of the 7th CPC) whether the fact that denial of Military Service Pay (MSP) to Maj Gen and above of the Armed Forces would result in their drawing lesser pay than juniors or that it would be a repeat of what happened in the 6th CPC dispensation, which was raised by the Implementation Cell of DoE, MoF when it vetted the Special Army Instruction No. SAI/2/S/2008.  

 

[Chapters 5.2, 6.1, 6.2 and 10.2 of the 7th CPC report may be referred to for more information].     

 

11.       Shri D K Rai, IDAS, whom the honourable Chairman, 7th CPC lauded as an “expert on Defence Pay matters” does not appear to have produced orders of the honourable Courts or file noting in favour of Armed Forces personnel in a manner that Shri Vivek Rae did on behalf of IAS quoting the many judgments.

 

12.       Therefore, the incumbent Chairman CoSC took up the matter of Core concerns of the Armed Forces with then RM in September 2016. File noting obtained through RTI is in subsequent paragraphs (in italics).

 

Core Concerns in 7th CPC

 

 F No. 7/6/2019-E.III(A) dated the 14 June 2019

xxxx                                                                xxxx                                                                xxxx               

Sub: Information sought under RTI Act, 2005, reg

 

Sir,

 

This is with reference to your online RTI application with registration No. DOEXP/R/2019/50802 dated 10.07.2019 seeking information including file notings, deliberations, etc in relation to the matter where the junior officers of the rank of Air Commodore (Brigadier) and Group Captain (Colonel) have been drawing higher total emoluments than Air Vice Marshal (Maj Gen), Air Marshal (Lt Gen) and Air Marshal in HAG Plus and AOC-in-C (Army Cdr) grades. In this context, the copy of relevant extracts of the noting is attached herewith for reference. The delay in the submission of the reply is deeply regretted.

 

Xxxx                                                               xxxx                                                                xxxx   

 

-Page 37-

 

This case relates to demands and implementation of 7th CPC recommendations in respect of Defence Forces personnel.

 

2. Defence Secretary vide his DO dated 14.11.2017 addressed to Secretary (Exp) intimated that Hon’ble Raksha Mantri has desired for a presentation on the manner in which the concerns/recommendations of the Defence Forces were addressed and the grounds of rejection of demands of Defence Forces by the MoD and the Ministry of Finance and requested for fixing a mutually convenient date for the meeting. He has enclosed a document dated 20.01.2016 of TRIPAS on Defence Forces concerns on 7th CPC report and copy of the proposed presentation on issues of Defence Forces.

 

3. The following core concerns of the Defence Forces relating to their demands have been mentioned in the proposed presentation received along with Defence Secretary’s DO dated 14.11.2017.

 

(A) PAY RELATED ISSUES. Out of six Core concerns, two have been resolved and following four concerns are remaining:

 

i. Military Service Pay (MSP) at higher rates for JCOs – MSP of (Rs) 10000 for JCO

 

ii. MSP as a separate element of pay for Maj General and above.

 

iii. Non Functional Upgradation (NFU)

 

iv. Correction in entry pays for 6 Ranks/Levels.

 

(B) PENSION RELATED ISSUES

 

i. Weightages to be restored to cater for truncated carrier (sic)

 

ii. One Rank One Pension

 

iii. Sharing of report of One Man Judicial Committee (OMJC).

 

(C) ALLOWANCES RELATED ISSUES

 

Out of 19 concerns, 11 issues relating to entitlement of Ration to Officers in Peace Areas, Dress Allowances, Reciprocity of Allowances, Technical Allowances, Sea Going Allowances, Flying/SF/MARCOS/Chariot Allowance, Correction in RH Matrix, Restoration of CILQ, Qualification Pay (Q-Pay), GCB/GS Pay (and) Classification Allowances and Travel Entitlement of Navy have been mentioned.

 

Similar issues were listed in the TRIPAS letter dated 20.01.2016 addressed to Hon’ble Raksha Mantri and Appendix A and B of this letter which have been summarised at F/A.

 

4. A copy of Defence Secretary DO has been forwarded to Deputy Secretary (EG) for necessary action in respect of Allowances, since the records related to deliberations of the Committee of Secretaries on Allowances headed by the former FS is available with them. The position with regard to issues pertaining to pay and pension is explained in subsequent paras.

 

5. Demands of the Defence Forces already accepted: The under mentioned demands of Defence Forces in respect of pay and pension has been accepted by Government.

 

-38-

Continued from previous page

 

(I) Vide Cabinet approval dated 29.06.2016, the following exceptions in (the) Defence Pay Matrix were approved.

 

i. The IOR of Level 13A (Brigadier) in Defence Pay Matrix revised upwards from 2.57 to 2.67.

 

ii. Additional 3 stages in Levels 12A (Lt Col), 3 stages in Level 13 (Colonel) and 2 stages in Level 13A (Brigadier) added appropriately in the Defence Pay Matrix.

 

(II) The Defence Pay Matrix (except Military Nursing Service (MNS) which had 24 stages extended to 40 stages similar to Civilian Pay Matrix (Cabinet Approval May 2016).

 

(III) The Index of Rationalisation (IOR) of Levels 12A and 13 of Defence Pay Matrix enhanced from 2.57 to 2.67. The Defence Pay Matrix and Matrix of MNS have been accordingly revised. (Cabinet approval - May 2016).

 

(IV) Percentage based system for disability pension has been restored after the matter was referred/considered by National Anomaly Committee (Cabinet approval – May 2016).

 

(V) Demands for allowing broad-banding of disability pension for disability assessed at 20% and above and benefit of additional pension on attaining the age of 80 years and above applicable on disability element accepted (FM approval).

 

6. With respect to the manner in which the concerns/recommendations of the Defence Forces were addressed it is submitted that Defence Forces made a presentation before the Empowered Committee chaired by Cabinet Secretary on 11.03.2016 on their demands. Subsequently a series of meetings were held with nodal authorities involved in the implementation of the 7th CPC Report and all the issues raised by the Defence Forces have (been) extensively discussed in these meetings. Joint Secretary (IC) and Director (IC) from the then Implementation Cell participated in these meetings. Based on the outcome of these consultations, proposals have been processed for obtaining approval of Cabinet.

 

7. The concerns of the Defence Forces were also received vide their letter dated 18.07. 2016 addressed to Hon’ble PM and letter dated 08.09.2016 addressed to Hon’ble RM. The matter was discussed in the meeting taken by the then RM (on) 13.04.2017 and MoD vide their OM dated 19.04.2017 recommended three core concerns i.e. 40 stages in Defence Pay Matrix, revision pf IoR for Level 12A (Lt Col), and 13 (Col) and grant of Personal Pay in 7th CPC pay structure to address pay/pension anomalies between Col/Brig and Maj Gen and above rank(s). The first two issues related to Defence Pay Matrix have already been addressed and (the) third issue pertaining to grant of Personal Pay for Maj Gen and above, MoD advised to approach DoPT, the nodal Ministry concerned with pay fixation issues.

 

8. With respect to demands of the Defence Forces not accepted/grounds of rejection of demands, the position in respect of pay and pension issues is submitted as under:

 

-39-

Continued from previous page

 

(a) Military Service Pay (MSP) at higher rates for JCOs – MSP of (Rs) 10000 for JCO

 

Comments – The concept of MSP was introduced by 6th CPC (up to Brigadier rank) as an edge for the Army over civilian counterparts and it was treated as Pay for calculating DA, Pension, HRA, Composite Transfer Grant and Annual increment. MSP by the 7th CPC has been calculated by multiplying existing rate with 2.57 and subsequent rounding off. As the amount of MSP was Rs 2000/- for JCO/OR in 6th CPC period which has been increased to Rs 5200/- by 7th CPC, the demand for change in rates of MSP has not been accepted. Similarly, MSP for Serving Officers has been increased from Rs 6000/- to Rs 15500/-.

 

(b) MSP as a separate element of pay for Maj Gen and above

 

Comment – MSP is admissible to all ranks up to and inclusive of Brigadiers and their equivalents. In so far as higher ranks are concerned separate MSP is not admissible in 6th CPC also. However, MSP is subsumed under Pay on promotion from Brig to Maj Gen. The aspect to grant of MSP in the 6th CPC regime was considered and grant of Personal Pay to the officers of the ranks of Maj Gen and above was agreed by the DoPT. For similar dispensation in 7th CPC period, MoD vide this Department OM dated 05.09.2017 has been requested to take up the matter with the DoPT as this relates to fixation of pay related matter which comes under the purview of DoPT.

 

(c) Non Functional Upgradation (NFU)

 

Comments – The Commission has not been able to arrive as at consensus on extension of NFU, granted to organised Group ‘A’ services at the time of 6th CPC, to Defence Forces. The Chairman was of the view that the NFU should be allowed to continue and be extended to CAPFs and Defence Forces. Shri Vivek Rae and Dr Rathin Roy, Members were of the view that NFU be withdrawn from organised Group ‘A’ services. Since the Commission could not arrive at a consensus, the matter has been referred to Department of Personnel and Training for examination before a final view is taken. Therefore, it would not be appropriate to consider any fresh proposal at this stage. 

 

(d) Correction of Entry Level Pay for 6 Ranks based on Minimum Fitment Table

 

Comment – Defence Forces have demanded for correction in the Entry Pay for the ranks of Artificer (GP 3400), Captain (GP 6100), Major (GP 7600), Lt Col (GP 8000), Colonel (8700) and Maj Gen (10000) on the basis of Residency method. The 7th CPC recommended separate Pay Matrix for Defence Forces after due diligence and detailed stakeholder consultation. The 7th CPC noted there are a number of common strands in the Civil and Defence pay matrices, the principle and philosophy on which they are based are identical. The Commission in para 5.2.15 stated that these GPs are unique to Defence Forces personnel and minimum pay corresponding to each of these pay levels takes into account the normative residency period of the ranks of officers.

 

-40-

Continued from previous page

 

Although TRIPAS has mentioned about some difference in figure based on the correct application of residency period method, it is submitted that while devising Pay Matrix, the 7th CPC ensured that horizontal relativities are not disturbed as for example the entry pay of Brig based on residency period comes out to Rs 59, 100 which is much higher than entry pay (Rs 53000) equal to that of Joint Secretary.

 

9. With respect to pension related issues it is submitted that three issues listed i.e. weightages to be restored to cater for truncated career, One Rank One Pension (OROP) and sharing of report of One Man Judicial Committee (OMJC). About weightages issue, it is submitted MoD vide their OM dated 19.04.2017 recommended grant of 40 stages in the Defence Pay Matrix for JCOs/ORs subject to the caveat that maximum of the scale will not be counted towards calculation of pension and the approval of cabinet has been taken vide Cabinet note dated 01.05.2017. The other two issues about OROP and Report of OMJC relate to MoD.

 

10. Defence Forces have requested for issue of resolution of 7th CPC core concerns on pay, allowances and pension in a time bound manner and constitution of an Empowered Committee with representation of Defence Services for resolution of other anomalies of Defence Services. Although these issues have been raised by the Defence Forces in the past and decisions have been taken after taking into account the different aspects involved. The file is submitted for further consideration, please.

 

Sd/-------------

23/11/17

Dir (E.III.A)

 

The above note may kindly be seen in the context of the DO letter dt 14.11.2017 from Defence Secretary to Expenditure Secretary seeking latter’s convenience for a meeting to discuss the concerns of the Defence Forces personnel on the recommendation of the 7th CPC.

 

2. Attached herewith the aforesaid DO letter from Defence Secretary is a note of 20.1.2018 listing out issues raised by Defence Forces soon after the submission of the Report of the 7th CPC. However, during the processing of the Report of the 7th CPC is the erstwhile IC, a few concerns have already been addressed, as mentioned in para 7 of above note.

3. There is no indication from the note

 

-41-

From previous page

 

sent along with the DO letter from Defence Secy as to which issues still remain and if these were considered by MoD, what the stand taken have been, as well as the grounds on which these were not accepted.

 

4. Furthermore, and more importantly, these issues require proper consideration, but in the midst of the Budget exercise, it is difficult to spare proper attention to these issues.

 

5. Thus we may suggest that MoD may schedule this meeting after presentation of the Union Budget. A draft DO letter is, accordingly, placed below for approval of Expenditure Secretary.

 

Sd/--------------

27.11.17

JS (Pers)

 

As we are very pre-occupied with the Budget exercise, it may be difficult to devote so much time on this exercise. Also, the Concerns of the Defence Services on 7th CPC Report is dated 20/01/16. Some issues have already been addressed, as brought out in the note of US/RG. MoD may, in the meantime, prepare an updated document. For approval on the issue.

Sd/---------------

27/11/17

 

Secy (Exp) Sd/------------ 28/11/17

JS (Pers) On tour

Dir (E.III.A) Sd /-----------291.11.17

US (RG) Sd/-----------

SO (E.III.A)

 

DO letter from Expenditure Secretary

Ajay Narayan Jha

 

D.O. No. 20-1/11(1)/2016-IC (Vol-II)                                            29th November 2017

 

Dear Sanjay,

 

Please refer to your D.O. letter No. 1(2)/2016-D (Pay/Services)/137/Def Secy/2017 dated 14.11.2017 regarding a meeting proposed to be held to discuss the concerns of the Defence Forces personnel in the context of the recommendations of the 7th Central Pay Commission.

 

2. We intend to accord our sincere consideration to the genuine concerns of the Defence Forces personnel. This requires full attention on our part. However, in the midst of the current Budget exercise, it is difficult for us to apply ourselves to this important consideration in a manner we deem it appropriate. I would, therefore, suggest that a meeting in this behalf may be scheduled after the presentation of the Union Budget.

 

3. I would also request that prior to the meeting, a brief note may be sent to us, bringing our the issues raised by the Defence Forces after the submission of the Report of the 7th CPC, the issues which have been sorted out based on the Government decisions and the grounds on which the remaining issues have not been accepted.

 

With best regards

 

Your sincerely

Sd/-------------

(A N Jja)

Shri Sanjay Mitra

Defence Secretary

Ministry of Defence

South Block

New Delhi

 

Issued 29/11/17

 

Please note: Meeting has not taken place till formation of 8th CPC was announced.

 

Bureaucratic Armoury

 

“All animals are born equal but some are more equal than others.”

                                                                                                - George Orwell

 

13.       A few years ago, in reply to a RTI application, Dept of Expenditure, MoF (the Nodal Department for CPCs) had stated that it does not have a copy of the proceedings of the Post War Pay Committee 1946-47 or the Armed Forces Pension Review Committee 1949-51, the Raghuramiah Committee or the Kamath Committee, though the documents are either mentioned or quoted in every subsequent CPC. It is nowhere on public record, even in voluminous reports of Central Pay Commissions (CPCs) on why the Govt of India decided that Pay, Pensions and Allowances of Armed Forces personnel should be considered by a CPC without a representative(s) of the Armed Forces. However, MoD set up an Expert Cell in August 1970 comprising representatives of MoD and MoF and 3 Armed Forces officers of the rank of Maj Gen. MoD and MoF withdrew their representatives and suggested to 3rd CPC in June 1971 (while the rest of the country was dealing with the influx of refugees and the impending war of liberation of Bangladesh) that the report be treated as the views of the Services Experts (per Para 7, Chapter 48, of Report of 3rd CPC).     

 

14.       Bureaucrats conflate the reasons for denial of benefits of pay and allowances by quoting that every CPC is chaired by a retired Judge of the Supreme Court. If that stand fails then they quote Fundamental Rules. When even that fails, the ultimate weapon is that the benefit has not been approved by the Cabinet. Nowhere is it stated that natural justice has been denied because Armed Forces are not represented in the CPC, the Committee of Secretaries or that there is an exception in the Fundamental Rules. Subsequent paragraphs attempt to draw attention to these adversarial issues.

 

Quoting Recommendations of the CPC

 

15.       Every CPC is chaired by a retired Judge of the Supreme Court. File noting show that bureaucrats hide behind the robes of the retired Judges. There isn’t any application of the bureaucratic mind that some recommendations may be incorrect and could adversely impact Armed Forces personnel or even that Judges are habituated to deciding matters on the evidence presented to them. They do not inquire into the issues for that is what the lawyers of opposite sides are for. However, as the draft Report is seldom, if at all, shared with the Armed Forces, one side remains unrepresented.     

 

16.       The Chairman of the 6th CPC was retired Justice B N Srikrishna. The 6th CPC had a Joint Secretary level officer of the Indian Defence Accounts Service (IDAS) in its Secretariat.  As a member of the IDAS, the officer may have been aware that there was a serious anomaly in the recommendation of restricting Military Service Pay (MSP) for officers up to the rank of Brigadier and equivalent would result in Maj Gen and above drawing lesser pay and pension than their juniors.

 

17.       However, when this anomaly was not noticed at the root, then Director, Implementation Cell (IC), Deptt of Expenditure (DoE), MoF, when vetting MoD’s draft Special Army/Navy/Air Forces Instructions 2/S/2008, pointed out to MoD in 2008 [M/o Finance, D/o Expenditure U.O. No. 2674/JS (Per) dated 11.10.2008 refers] whether this (Pay + Grade Pay + MSP) would result in Cols and Brigs & equivalents earning more than Maj Gen and Lt Gen. He queried whether MSP should not be delinked from emoluments.

 

18.       MoD – D (Pay/Services) referred the query to MoD (Fin), which sought the opinion of the O/o Controller General of Defence Accounts (CGDA).  O/o CGDA stated that even with addition of stagnation increments and MSP, the total emoluments of Col and Brig would not exceed that of Maj Gen vide Note 22 and 23 on O/o CGDA File No. AT/I/1596-II, UO Note AT/I/1496-II dated 20th October 2008 and Tabulations at Page Nos. 231 to 235 [obtained as a reply to RTI application CGDFA/R/2017/50707] because the Cols and Brigs would either be promoted or would have retired.

 

19.       The apprehension of Director, IC, DoE, MoF referred to above has proved to be correct by subsequent events. Principal Controllers of Defence Accounts (PCDA) of Army, Navy and Joint Controller of Defence Accounts of Air Force (JCDA AF) stated that there were, as on the last day of the 6th CPC, viz. 31 Dec 2015, 

 

(i)        124 Cols, 36 Captains (IN) and 13 Group Captains drawing emoluments of PIPB Rs 67000+ GP Rs 8700+MSP Rs 6000 = Rs 81700 and

 

(ii)       113 Brigs, and 25 Commodores IN), and 24 Air Commodores drawing emoluments of PIPB Rs 67000 + GP Rs 8900 +MSP Rs 6000 = Rs 81900 respectively

 

[References: PCDA (O) No. LW/SS/AT/RTI/45/Vol V) dated 10.09.2017; PCDA (N) No. AN/I/LC/RTI/Corr/Vol-XXIV dated 25.09.2017 and Air HQ/23401/204/4/12206/E/PS dated 20.9. 2017].

 

20.       Therefore, it is established that a CPC, an Expert body, which would take a holistic view, just because it has a retired Judge of the Supreme Court as its Chairman was unaware than a solitary Director, IC, DoE, MoF that Cols & Brigs (and equivalents) earned more than Maj Gen (Rs 67000+GP Rs 10000= Rs 77000), Lt Gen (HAG) [Rs 67000+ GP Rs 12000 = Rs 79000), Lt Gen (HAG+) [Rs 79500-80000) and Army Commanders & equivalents [Rs 80000 (Fixed)].

 

Confusing Relativity with Parity

 

21.       Use of these two words eventually blunts the ‘Edge’ for the Armed Forces, especially at the higher ranks (equivalent to Senior Administrative Grade level and above for the civilian employees).

 

22.       Every dictionary defines Parity as the state or condition of being equal, especially as regards status or pay (this is the word used by Director and JS (IC), DoE, MoF to turn down Personal Pay approved by RM-cum-FM Shri Arun Jaitley in 2017).

 

Relativity is defined as the absence of standards of absolute and universal application. Relativity is the word used by all Central Pay Commissions (CPC) while the word parity is rarely used, if at all. Director and also JS (IC), DoE, MoD on the need to maintain “parity in future also” did not bear in mind the introduction of Non-Functional (Financial) Upgradation (NFU) and its universal application

 

23.       Consequently, the MoF’s urge to maintain relativity between SAG and above on the Civil side with Maj Gen and above on the Military side on 28 May 2017 appears to have been, in hind sight, a ploy to deny the right to correct and higher pay for Maj Gen and above. The following would elucidate this. Notes on file by then Director (Implementation Cell) Deptt of Expenditure, MoF and then JS (IC), DoE, MoF on file No. 30-1-/11(i)/2016-IC/Pt dated 26.4.2017 which were approved by then Finance Secretary on 01.5.2017 (information obtained in reply to DOEXP/R/2019/50322 dated 19.3.2019) state, inter alia,

 

It is observed that benefit of Personal Pay universally to all officer (sic) of the rank of Major General and above will be against the principle of Personal Pay as defined in FR 9 (23).

 

It may also be mentioned that since 3rd CPC, there has been a complete parity in pay structure of Major General and above on the Defence side and SAG and above on the Civil side which needs to be maintained in future also.”

 

24.       The above bureaucratic stand is in complete contradiction to the Personal Pay called Non-Functional (Financial) Upgradation (NFU) being given universally to all officers of Organised Group ‘A’ Services, the IPS and Para-Military forces. Witness this:

 

25.       It means that all officers who become eligible for NFU will be granted NFU vide O.M. No. AB.14017/64/2008-Estt.(RR), Government of India, Ministry of Personnel, Public Grievances and Pensions, Department of Personnel and Training, New Delhi, dated the 24th April, 2009, which states, inter alia, as follows:

 

(i) Whenever an Indian Administrative Services Officer of the State of Joint Cadre is posted at the Centre to a particular grade carrying a specific grade pay in Pay band 3 or Pay Band 4, the officers belong to batches of Organised Group A Services that are senior by two years or more and have not so far been promoted to that particular grade would be granted the same grade on non-functional basis from the date of posting of the Indian Administrative Service Officers in that particular grade at the Centre (emphasis supplied).

 

(ii) Grant of higher scale would be governed by the terms and conditions given in Annex-I.

 

2. The up-gradation granted under these orders will be a purely non- functional up-gradation, personal to the officer and it would not bestow any right to the officer to claim promotion or deputation benefits based on non-functional up-gradation in such a manner.

xxxx                                                                xxxx                                                                xxxx   

 

7. (i) Pay fixation under on grant of non-functional upgradation under these orders will be done as per the provisions of CCS (RP) Rules, 2008 i.e. the officers will be granted one increment at the rate of 3% of basic pay and the difference of grade pay will be added to their basic pay. (Annexe I of ibid OM refers) 

 

26.       It is further clarified vide O M No. AB.14017/64/2008-Estt.(RR) Government of India, Ministry of Personnel, Public Grievances and Pensions, Department of Personnel and Training, New Delhi, the 25th September, 2009 issued, inter alia the following also:

 

2. The new HAG scale of Rs. 67,000-79000 has been introduced in replacement of the pre-revised S-30 scale. It is clarified that consequent upon the carving out of the new HAG scale, non-functional upgradation under the scheme will be available to particular Grade Pays in PB-3 and PB-4 and also to the HAG scale. SAG officers can be allowed Non- functional upgradation to the HAG Grade only where there is such a Grade in the Service (emphasis supplied).

 

[Please note that the issue of NF(F)U for the Armed Forces personnel was also stalled by a single word, ‘Wait’ by the then Raksha Mantri, Shri A K Antony at Note 76 dated 20 Aug 2013 on MoD file No. 22/4/2012-D (Pay/Services)].

 

27.       NF(F)U is not available to the Defence Forces as on date (the next hearing in the honourable Supreme Court was scheduled for 20 Nov 2024). Therefore, it is evident that all Civilian SAG officers (Grade Pay Rs 10000) who becomes entitled to NF(F)U will no longer have pay parity with a Maj Gen (SAG equivalent officer of the Defence Forces) because the Civilian will draw an increment and also the next higher scale of Grade Pay i.e. HAG Grade Pay of Rs 12000 or into the Pay Matrix of the next higher level.

 

28.       Mathematically (with apologies to Charles Seife) a Civilian SAG Officer will be paid Pay in Pay Band Rs 62680 + Grade Pay Rs 10000, Total emoluments Rs 72680. After NFU he will draw Rs 62680+ increment Rs 2180 + 10000 + difference of (HAG & SAG) Grade pay Rs 2000 = Rs 76680. But an equivalent Maj Gen is stuck at Pay in Pay Band Rs 62680 + GP Rs 10000, Total Rs 72680

 

Penalising Merit

 

29.       The mathematical deception could not have been better stated than in Para 6.2.114 of the report of the 7th CPC (retired Supreme Court Justice A K Mathur as Chairman) on Applicability of MSP: A demand has also been made that MSP be granted to all officers. Currently MSP is paid up to the level of Brigadiers. The IV, V and VI CPCs, on examination of the issue, granted Rank Pay/Military Service Pay up to the level of Brigadier. Superannuation of personnel at a relatively younger age is one of the important considerations being laid down by this Commission for the grant of MSP. Major General and equivalent officers and those above them retire at 58 or beyond, thus serve for periods comparable, with their civilian counterparts. Having regard to all these factors the Commission is of the view that the existing application of MSP up to the level of Brigadier is appropriate and does not call for a review” (emphasis in the original).   

 

30.       Does one understand that working harder and earning promotions to rise from the rank of Brigadier & equivalents (796 in Army + 200 in Navy & 152 in Air Force) to Maj Gen & equivalents (196 + 38 + 48) and then Lt Gen & equivalents (57 + 24 + 23) does not deserve higher emoluments for exercising higher responsibilities and accountability in Service and consequently higher pension on retirement? 

 

31.       Isn’t that in contradiction to 7th CPC’s assertion in 5.2.8 Rationalisation: An ‘index of rationalisation’ has been applied…...Recognising the significantly higher degree of responsibility and accountability at levels corresponding to Senior Administrative Grade, the entry pay is recommended for enhancement by a multiple of 2.72. The same multiple is also being applied at the HAG and HAG+ levels. At the apex level the index applied is 2.81 and for the Service Chiefs/Cabinet Secretary the index has been fixed at 2.78”? 

 

32.       The IDSA’s study commissioned by 7th CPC has this at Table 66 in Annexure 3 (of the IDSA Study) reproduced the following from the report of UK’s Senior Salaries Review Body: -

 

4.51 The Civil Service grades and equivalent Armed Forces ranks of the senior posts are shown in the following table:

Table No 66

 

Senior Civil Service Pay

Band (SCS PB)

SCS PB 4 (OF-9)****

 

SCS PB 3 (OF-8)***

SCS PB 2 (OF-7)**

 

Army

General

Lt General

Maj Gen

Navy

Admiral

Vice Admiral

Rear Admiral

Air Force

Air Chief Marshal

Air Marshal

Air Vice Marshal

The Civil services pay bands and the equivalent Armed Forces ranks table is

based on Organograms and Data Sets published by MOD

 

4.52 The comparative pay scales for 2014 are given below. While the Civil servants pay scales have 10 stages, the Pay scale of Defence officers’ pay scales have six stages.

 

Level

OF 9 ****

Pay Scale 4

OF 8 ***

Pay Scale 3

OF 7 **

Pay Scale 2

 

 

 

144895

 

107464

 

84184

Minimum

 

 

148652

 

110191

 

85951

2

 

 

152409

 

112918

 

87719

3

 

 

156166

 

115645

 

89486

4

1

168606

159923

128526

118372

110463

91254

5

2

172821

163681

134826

121099

112621

93021

6

3

177142

167438

141441

123826

114824

94789

7

4

181571

171195

146998

126553

117070

96556

8

5

185202

174952

151332

129280

119361

98324

9

6

188906

178709

155797

132007

121697

100091

Maximum

 

Source: ibid IDSA Study

 

33.       The IDSA study commissioned by 7th CPC has this at Table 67 in Annexure 3 (of the IDSA Study). Look at the salary amounts for the Armed Forces officers and Civilian equivalents in United Kingdom.

 

 Table 1.1: Recommended annual scales for Officers up to and including Commodore, Brigadier and Air Commodore

 

Rank

Military Salary

 

Level

01 Apr 2013

01 Apr 2014

OF-6

Commodore (Royal Navy)

Brigadier Royal Marines)

Brigadier (Army)

Air Commodore (Royal Air Force)

Level 5

102,145

103,167

Level 4

101,145

102,156

Level 3

100,157

101,158

Level 2

99,165

100, 156

Level 1

98, 172

99,154

 

Source: https://assets.publishing.service.gov.uk/media/5a7c1d30ed915d1c30daaa65/AFPRB_Report_43rd_2014.pdf

 

34.       Now look at the UK’s Senior Salaries Review Body recommendations of pay scales, including ‘X’ factor, applicable for 2 - star and 3-star officers with effect from 1 April 2014 in £ : -

 

2 Star

2013-14

2014-15

3 Star

2013-14

2014-15

6

120, 492

121, 697

6

154, 254

155, 797

5

118, 179

119, 361

5

149, 834

151, 332

4

115, 911

117, 070

4

145, 542

146, 998

3

113, 687

114, 824

3

140, 041

141, 441

2

111, 506

112, 621

2

133, 491

134, 826

1

109, 369

110, 463

1

127, 253

128, 526

 

Source:  https://assets.publishing.service.gov.uk/media/5a7cdfdce5274a2c9a484a49/37334_Senior_Salaries_Print_Ready.pdf 

 

 

Justifications and Result of denial of MSP to higher ranks

 

35.       A perusal of the IDSA study and the 7th CPC’s reports gives rise to the following unanswered questions: -

 

(a)        Did the 7th CPC, chaired by a retired Judge of the Supreme Court, peruse the IDSA’s study that it commissioned?

 

(b)       Were the findings shared with the Services HQ?

 

(c)        Why wasn’t the anomaly that higher ranked officers of the Armed Forces would draw the same amount of pay/pension as their civilian equivalents but lesser than lower ranked Armed Forces officers mentioned in the Report?

 

(d)       When higher grade (SAG and above) civilian officers draw more emoluments and consequently pension for life than their lower feeder grade officers, how was denying MSP to Maj Gen and above justified only because Maj Gen and above would draw higher emoluments for 2 years (Maj Gen - 56 years to 58 years) or 4 years (Lt Gen – 56 years to 60 years) than lower ranked feeder ranks of Col and Brig (see paras 25 and 27 above)?

 

Fundamental Rules (FR)

 

36.       The oft quoted FR 9 (23) states, inter alia that “Personal Pay is additional pay granted to Govt servant to same him/her from loss of substantive pay, and (b) in exceptional circumstances, on other personal consideration.”

 

37.       Personal Pay to all Maj Gen and above to bring their pay or pension at par with the pay or pension of Brigs is denied quoting FR 9(23) (MoF, DoE ID No. 30-1/11(i)/2016-IC/Pt dated 28 Apr 2017 (provided by reply No. F No. 7/6/2019-E.III (A) (RTI-315/19 dated 25 Apr 2019 to RTI request No. DOEXP/R/2019/50322 dated 19 Mar 2019.

 

38.       However, none of the files, either of MoD/DMA or MoF/DoE mentions FR 3 which states, “These rules do not apply to Govt servants whose conditions of service are governed by Army or Marine Regulations” (emphasis supplied).

 

Cabinet Approval

 

39.       The OROP-2023 table No.1 promulgated in MoD, DESW No.1(2)/2023/D(Pen/Pol) dated 04 Sep 24 has demolished the illogic of denial of MSP or Personal Pay or imposition of ceiling amounts (as pensions are 50% of the last pay drawn) specified by the now late CDS and mentioned repeatedly by Shri Amar Nath Singh retd Director now Consultant to E.III.A, DoE, MoF in ID No. 03-05/2016/E.III.A dated 22 Feb 23 and communicated by E.III.A to MoD (Fin) vide its ID No. 03-05/2016-E.III.A dated 19 May 2023 as well as the MoD/DMA letter, ironically, captioned Pay Protection vide No. 1(6)/2013/D (Pay/Services) dated 12 Jun 2023 that Rs 2,25,000 would be the ceiling for Maj Gen, which anyway were not recommended by the 7th CPC or approved by the Cabinet, as per file notings provided by Dept of Ex-Servicemen Welfare, MoD  

 

The MoD/DESW letter dated 04 Sep 24 grants Rs 1, 16, 550 as pension for officers of the ranks of Brigadier, Maj Gen, Lt Gen (HAG/HAG+, Apex) in levels of 14 to 17!

 

40.       However, the information provided by letter F No. 12(6)/2014/D(P/P) dated 13.11.2024 is incomplete in that

 

(a) Though it includes MoD/DESW Proposal in Para 3 of Draft Cabinet Notes (DCN) and subsequent Cabinet approval of Para 9 of the DCN vide Case No. 02/16/2024 dated 03.7.2024 for revision of OROP from 01.7.2024, the information provided does not contain basis by which MoD/DESW recommended that retirees of ranks of Brigs and above with 33 years or more of service to be granted the an identical amount of pension viz. Rs 116550.

 

(b) Information provided by Def Finance vide F No. 29(02)/2016/Fin/Pen dated 17.10.2024 which approved the DGL also does not contain mention of the same or in file noting for concurrence of the DGL and/or tables with same maximum pension amount of Rs 116550 for Levels 13A to 17.

 

(c) The submission to the Cabinet for approval of OROP 2023 states that OROP revision w.e.f 01.7.2024 is on the same principles adopted in MoD letter of 07.11.2015 viz. pension of past pensioners will be re-fixed on the basis of average of minimum and maximum pension of Defence Forces retirees of calendar year 2023 for same rank and same length of service. However, Para 3 of Proposal for approval of Cabinet in DCN for pension revision w.e.f 01.7.2024 does not mention identical amount of Rs 166550 as pension for levels 13A to 17 with more than 33 years of service.

 

(d) Information on the live data provided by O/o PCDA (P) states that the maximum pension in the calendar year 2023 as Rs 116550 for Brig/Level 13A, Rs 113400 for Maj Gen/Level 14, Rs 112050 for Lt Gen/Level 15, Rs 112200 for Lt Gen/Level 16 and Rs 112500 for Lt Gen/Level 17 (Apex).

 

Conclusion

 

41.       Hopefully the next CAPC (Chairman, Army Pay Commission Cell) and his counterparts in the other Services study reports (not read a synopsis) of the previous CPCs, the CSCs of 2009 and 2012 as well as the GoM of 2008  before writing (another 441 page Joint Service Memorandum (JSM). It would in the fairness of things if there are consultations with knowledgeable Veterans after all there is much in the media how Armed Forces are grateful and acknowledge the traditions, sacrifices, precedents and services.        

 

42.       A detailed perusal of deliberations of the 6th and 7th CPCs, that were published as voluminous reports (658 and 899 pages respectively), will justify the belief cited by the Fifth Central Pay Commission (5th CPC) in Volume I, Chapter 1 that the honourable Courts held that CPC is an expert body but also that, “But that is not to say that the Court has no jurisdiction and the aggrieved employees have no remedy if they are unjustly treated by arbitrary state action or inaction”  

 

43.       The IDAS Officers in the secretariat of 7th CPC were either unaware of, or, did not bring on record, for the attention of the Justice Mathur or the Full time members the judgments in (1) SPS Vains Vs UoI (2008) SCC OnLine P&H 551: ILR (2006) 1 (P&H) 80 and later (2008) 9 SCC 125, (2) Er Gurcharan Singh Grewal vs Punjab State Electricity Board (2009) 3 SCC 94,( 3) UoI Vs P Jagdish (1997) 3 SCC 176, and (4) ML Jain Vs UoI (1988) 4 SCC 121 to name just a few orders of the honourable Court that seniors should not be paid less than their juniors.

 

43.             Hopefully, the Chief of Defence Staff, the Chiefs of Army Staff, Navy Staff and Air Staff, the Principal Personnel Officers Committee and Chairs of the next Pay Commission Cells of the three Services will ensure that both Orwell and Charles Seife are proved wrong.  

 

Thank you for your patient reading and understanding.

SySavur