HISTORY OF PENSION
Before 1-4-1927, the grant and audit of pension payments was the responsibility of respective pension sections of various Controllers of Military Accounts. From 1-4-1927, the pension work relating to Northern and Eastern Commands was centralised in the office of the Controller of Military Pension Accounts, Northern and Eastern Commands at Lahore. An office similar to the one at Lahore was also formed at Mhow a little later for dealing with all pension claims of Southern and Western Commands. With a view of securing uniformity of procedures. with regard to sanction and audit to pension, both the Central Pension Offices at Lahore and Mhow were subsequently amalgamated and located at Lahore only.
Controller of Navy Accounts, Bombay, Controller of Air force Accounts, Ambala and Controller of Army Factory Accounts, Calcutta were retained as separate Pension Sanctioning Authority with regard to their own establishment and also the establishment employed directly under their Audit Control.
The work relating to the grant and audit of pension of the personnel of Royal Indian Navy who were governed by Civil Service Regulations, was transferred to the Controller of Military Accounts (Pensions), Lahore w.e.f 1-11-1938. Similarly, the pension work relating to personnel of Military Accounts Department, serving in the office of Controller of Accounts, Air force, Dehradun was also transferred subsequently.
Due to the partition of the country on 15.8.1947, the office of the Controller of Military Accounts (Pensions), Lahore was also bifurcated and the pension work relating to Indian nationals was transferred to the office of the Controller of Military Accounts (Pensions), Allahabad in September 1947. The office commenced full-fledged functioning w.e.f 21.10.1947 under the administrative jurisdiction of the CGDA, New Delhi . The office was re-designated as CDA(P), Allahabad w.e.f. 8.9.1951.
The pension work relating to the establishment of CDA (Factories), Calcutta and also the Defence civilians employed in ordnance factories was transferred to the office of the CDA (P) Allahabad w.e.f. 17.1.52. Similarly, the pension work relating to the civilian personnel of Air force was also transferred in 1954.
The pension work relating to personnel of all the three wings of the armed forces and also the civilian employees serving in Defence establishments, was centralised at one place viz. Allahabad. This had been to secure uniformity in the application of rules and procedures regarding grant and audit of pension.
With a view to achieving promptness in settlement of pensionary entitlements of Naval and Air force personnel the work relating to grant of their pension was transferred to CDA (Navy), Mumbai and C.D.A. (Air force), New Delhi respectively w.e.f.1.11.85.
After undergoing a series of organisational changes, this office has been upgraded as the office of the Chief controller of Defence Accounts (pensions) w.e.f. 19.12.1988 and subsequently redesignated as the Principal Controller of Defence Accounts (Pensions), Allahabad w.e.f. 24.09.1999.
Various Type of Pensionary Awards
Retiring Pension
Retirement Gratuity
Disability Pension
Invalid Pension
Family Pension
War Injury Pension
Liberalised Pension
Commutation
Gallantary Awards
WHY ARE WE BEING PAID MINIMUM PENSION.
3500 IS THE MIN PENSION SCALE FOR ANY ONE AND WE AS PER GRADE ARE ALSO GIVEN THE MIN GUARANTEED PENSION WHY NOT AS PER FITMENT TO THE GRADE AND SERVICE WE HAVE RENDERED .
why minimum of the fitment table, it should be corresponding to the 5th CPC scale a Brig was actually drawing being fitted in in 6th CPC table as per SAI 2/S/2008. e.g. A pre 2006 Brig was drawing a Basic pay of 18050/= (max of scale) + 450/= (Stag Increment) a total of Rs 18,500/=. He will be fitted in the revised table at Rs 46,050/-. He will get a pension of 50% of ( 46,050 + 8900 (GP) + 6000 (MSP) Rs 60,950/= i.e. Rs 30,475/= In this case the retired Brig is getting Rs 1,330/= less of pension. (30,475/= - 29,145/= = Rs 1,330/=).
1. DEF PERS MUST KNOW THEIR PENSION ENTITLEMENT
We have made special efforts in hosting various details on Pensions for the Defence personnel i our blog site. We have covered following aspects in our blog;-
1. History of pension
2. Pension Officers and Arrears
3. Pension AMC/ADC/RVC Doctors and Arrears.
3. Pension JCOs and ORs - 6CPC Arrears
5 Check your Pension - Do it Yourself.
6. FAMILY PENSION
7. One Rank One Pesnion.
8. Commutaion of Pension.
9. Nomination
10.Endorsement of DOB of Spouse in PPO.
http://signals-parivaar.blogspot.in/2015/08/pension-premature-retirees.html
PENSION
PENSION ISSUES & RELATED ORDERS http://signals-parivaar.blogspot.in/2015/08/pension-issues-related-orders.html
FAMILY PENSION - DETAILED BRIEF http://signals-parivaar.blogspot.in/2015/08/recently-uploaded-articles.html
PENSION & ARREARS - JCOs & ORs http://signals-parivaar.blogspot.in/2015/05/pension.html
DEFENCE PENSION GUIDE 2007_complete - http://1drv.ms/1OirMSq
PENSION TABLES & ARREARS - JCOs & ORs - http://1drv.ms/1QwgWdQ
PENSION UNDER CONSTR -
PENSION - PREMATURE RETIREES http://signals-parivaar.blogspot.in/2015/08/pension-premature-retirees.html
CHECK FOR CORRECTNESS OF YOUR PENSION - "DO IT YOURSELF" SOLUTION. http://signals-parivaar.blogspot.in/2015/08/check-your-pension-and-arrears-all.html
O R O P - ONE RANK ONE PENSION http://signals-parivaar.blogspot.in/2015/01/one-rank-one-pension.html
OROP Judicial commission -- http://1drv.ms/1NlcYkb
6 सीपीसी के तहत जेसीओ और अन्य रैंकों के pesnion के बाद 10 अक्टूबर 90 से के रूप में XY और जेड समूहों के अंतर्गत वर्गीकृत किया गया था। पहले समूहों के तहत के रूप में फिर से संगठित कर रहे थे: - कॉलम के तहत के रूप में दिखाया 6 सीपीसी के दौरान पेंशन पीसीडीए (पी) परिपत्र संख्या 397 1 जनवरी 2006 से प्रभावी तहत refixed थे 'नीचे दिए गए चार्ट के बी "। इसलिए 30 जून 2009 से प्रभावी और के रूप में बढ़ाया गया तय पेंशन कॉलम के तहत दिखाया गया है' सी तैयार संदर्भ के रूप में 'ई' तालिका के। मूल पेंशन में अंतर कॉलम के तहत दिखाया गया है '। बकाया अंतर पेंशनरों को बैंकों द्वारा भुगतान किया गया साथ होने के कारण के रूप में।
PENSION COMMUTATION
Whenever any retiring officer approaches us for advice, invariably the question of whether or not to commute the pension comes up. This article deals with this issue so that all officers, retired or retiring, would be able to make up their mind more knowledgeably.
Before we take a call on the same, a few connected issues need to be understood clearly:- Basic Pension is exactly half of your last drawn Basic Salary. And Basic Salary for the purposes of pension calculations is Basic + Grade Pay + Rank Pay. Whenever commutation is done, only the Basic Pension gets commuted, never the DA received. Thus, after commutation also, the DA is received on full value of Basic Pension. Commutation can be done of any value from 0% to 50%. However, generally almost all the officers get 50% commutation done, if they go in for it. Commutation is done based on a factor of commutation set by the Government which depends on the years of service that you’ve put in. To put it more simply, it is the time adjusted Present Value of your future pension. Pension is restored exactly 15 years after first commuted pension is received by you. Though not confirmed, probably commutation can still be done within one year of retirement, if the officer has not done commutation and wishes to change his decision. Now, let us understand the difference between a commuted pension and an uncommuted pension. We’ll understand it by an example.
Case Study
The officer is a Col who has Rs 60,000 of Basic Pay, 8700 of Grade Pay and 6000 of Rank Pay, making it a total of Rs 74,700 of Basic Pay while serving. He will commute 50% of his pension, if he does so. He is in a dilemma what to do. A commutation factor of 8.08 is applicable to him. The DA is 119% at present.
His Basic Pension is = Rs 74,700 / 2 = Rs 37,350.
If he does not commute the pension:- Monthly Pension received by him = Rs 37,350 + (119% of 37,350) = Rs 81,800.
If he commutes the pension: Monthly Pension received by him = Rs 18,675 (ie, 37,350/2) + 44,446 (ie, 119% of 37,350) = Rs 63,121.
In addition, he will receive, a bulk commuted pension amount of Rs 19.9 Lakhs (ie, 18,675 X 12 months X 8.88 factor).
Analysis of Commutation Vs Non-commutation:
If you see the calculations above, the difference between commuted and non-commuted monthly pension is about Rs 18,680, which is not much of an additional amount to be received every month. And, he also gets a big sum of Rs 19.9 Lakhs in bulk. He would be able to generate long term returns of anything from 6% - 12% per annum net of tax, depending on where he invests his commuted amount. If he takes up re-employment or corporate job after retirement, for a few years, this small additional monthly amount will anyway not matter much to him.
Thus, commutation seems better than non-commutation due to following three reasons:- Difference between 50% commuted (maximum allowed) and uncommuted pension is not much on a per month basis. As such, for this officer and his wife, living in their own house, Rs 63,000 per month of commuted pension is normally quite adequate. The bulk amount is quite large. Apart from providing a big financial security, it can be prudently invested to generate the gap amount (between commuted and uncommuted monthly pension) while still retaining the bulk money with you in your kitty. In case something untoward happens to the officer, the Government pays the same pension to the family of commuted and uncommuted cases, thus effectively ‘forgetting’ the commuted pension bulk amount given to the officer. This is a large welfare measure by the Govt. If the Officer retires after 01 Jan 2016, ie 7th CPC applicable to him:
It is assumed that the 7th pay commission will increase his serving basic pay by 20%. Thus his serving Basic Pay will be Rs 89,640 and hence, Pension Basic Rs 44,820.
If he does not commute the pension, he gets a Pension of Rs 98,156.
If he commutes pension by 50%, his pension will be Rs 75,746. And he gets a commuted amount of Rs 23.88 Lakhs.
Again, even after pay commission effect, the gap between maximum commuted and non-commuted pension is only Rs 22,410 while the officer gets Rs 23.88 Lakhs as bulk if he commutes by 50%.
Our Recommendations
We strongly recommend that all officers should commute their pension to the maximum allowed 50%. If the officers are also able to invest their commuted pension bulk amount wisely and carefully, there is not likely to be any difference (or a minor difference) in their take-home pension even after commutation while still having this large commuted bulk amount with them as a big security.
Insurance.. Not charged from FP
Before 1-4-1927, the grant and audit of pension payments was the responsibility of respective pension sections of various Controllers of Military Accounts. From 1-4-1927, the pension work relating to Northern and Eastern Commands was centralised in the office of the Controller of Military Pension Accounts, Northern and Eastern Commands at Lahore. An office similar to the one at Lahore was also formed at Mhow a little later for dealing with all pension claims of Southern and Western Commands. With a view of securing uniformity of procedures. with regard to sanction and audit to pension, both the Central Pension Offices at Lahore and Mhow were subsequently amalgamated and located at Lahore only.
Controller of Navy Accounts, Bombay, Controller of Air force Accounts, Ambala and Controller of Army Factory Accounts, Calcutta were retained as separate Pension Sanctioning Authority with regard to their own establishment and also the establishment employed directly under their Audit Control.
The work relating to the grant and audit of pension of the personnel of Royal Indian Navy who were governed by Civil Service Regulations, was transferred to the Controller of Military Accounts (Pensions), Lahore w.e.f 1-11-1938. Similarly, the pension work relating to personnel of Military Accounts Department, serving in the office of Controller of Accounts, Air force, Dehradun was also transferred subsequently.
Due to the partition of the country on 15.8.1947, the office of the Controller of Military Accounts (Pensions), Lahore was also bifurcated and the pension work relating to Indian nationals was transferred to the office of the Controller of Military Accounts (Pensions), Allahabad in September 1947. The office commenced full-fledged functioning w.e.f 21.10.1947 under the administrative jurisdiction of the CGDA, New Delhi . The office was re-designated as CDA(P), Allahabad w.e.f. 8.9.1951.
The pension work relating to the establishment of CDA (Factories), Calcutta and also the Defence civilians employed in ordnance factories was transferred to the office of the CDA (P) Allahabad w.e.f. 17.1.52. Similarly, the pension work relating to the civilian personnel of Air force was also transferred in 1954.
The pension work relating to personnel of all the three wings of the armed forces and also the civilian employees serving in Defence establishments, was centralised at one place viz. Allahabad. This had been to secure uniformity in the application of rules and procedures regarding grant and audit of pension.
With a view to achieving promptness in settlement of pensionary entitlements of Naval and Air force personnel the work relating to grant of their pension was transferred to CDA (Navy), Mumbai and C.D.A. (Air force), New Delhi respectively w.e.f.1.11.85.
After undergoing a series of organisational changes, this office has been upgraded as the office of the Chief controller of Defence Accounts (pensions) w.e.f. 19.12.1988 and subsequently redesignated as the Principal Controller of Defence Accounts (Pensions), Allahabad w.e.f. 24.09.1999.
Various Type of Pensionary Awards
Retiring Pension
Retirement Gratuity
Disability Pension
Invalid Pension
Family Pension
War Injury Pension
Liberalised Pension
Commutation
Gallantary Awards
WHY ARE WE BEING PAID MINIMUM PENSION.
3500 IS THE MIN PENSION SCALE FOR ANY ONE AND WE AS PER GRADE ARE ALSO GIVEN THE MIN GUARANTEED PENSION WHY NOT AS PER FITMENT TO THE GRADE AND SERVICE WE HAVE RENDERED .
why minimum of the fitment table, it should be corresponding to the 5th CPC scale a Brig was actually drawing being fitted in in 6th CPC table as per SAI 2/S/2008. e.g. A pre 2006 Brig was drawing a Basic pay of 18050/= (max of scale) + 450/= (Stag Increment) a total of Rs 18,500/=. He will be fitted in the revised table at Rs 46,050/-. He will get a pension of 50% of ( 46,050 + 8900 (GP) + 6000 (MSP) Rs 60,950/= i.e. Rs 30,475/= In this case the retired Brig is getting Rs 1,330/= less of pension. (30,475/= - 29,145/= = Rs 1,330/=).
1. DEF PERS MUST KNOW THEIR PENSION ENTITLEMENT
We have made special efforts in hosting various details on Pensions for the Defence personnel i our blog site. We have covered following aspects in our blog;-
1. History of pension
2. Pension Officers and Arrears
3. Pension AMC/ADC/RVC Doctors and Arrears.
3. Pension JCOs and ORs - 6CPC Arrears
5 Check your Pension - Do it Yourself.
6. FAMILY PENSION
7. One Rank One Pesnion.
8. Commutaion of Pension.
9. Nomination
10.Endorsement of DOB of Spouse in PPO.
http://signals-parivaar.blogspot.in/2015/08/pension-premature-retirees.html
PENSION
PENSION ISSUES & RELATED ORDERS http://signals-parivaar.blogspot.in/2015/08/pension-issues-related-orders.html
FAMILY PENSION - DETAILED BRIEF http://signals-parivaar.blogspot.in/2015/08/recently-uploaded-articles.html
PENSION & ARREARS - JCOs & ORs http://signals-parivaar.blogspot.in/2015/05/pension.html
DEFENCE PENSION GUIDE 2007_complete - http://1drv.ms/1OirMSq
PENSION TABLES & ARREARS - JCOs & ORs - http://1drv.ms/1QwgWdQ
PENSION UNDER CONSTR -
PENSION - PREMATURE RETIREES http://signals-parivaar.blogspot.in/2015/08/pension-premature-retirees.html
CHECK FOR CORRECTNESS OF YOUR PENSION - "DO IT YOURSELF" SOLUTION. http://signals-parivaar.blogspot.in/2015/08/check-your-pension-and-arrears-all.html
O R O P - ONE RANK ONE PENSION http://signals-parivaar.blogspot.in/2015/01/one-rank-one-pension.html
OROP Judicial commission -- http://1drv.ms/1NlcYkb
6 सीपीसी के तहत जेसीओ और अन्य रैंकों के pesnion के बाद 10 अक्टूबर 90 से के रूप में XY और जेड समूहों के अंतर्गत वर्गीकृत किया गया था। पहले समूहों के तहत के रूप में फिर से संगठित कर रहे थे: - कॉलम के तहत के रूप में दिखाया 6 सीपीसी के दौरान पेंशन पीसीडीए (पी) परिपत्र संख्या 397 1 जनवरी 2006 से प्रभावी तहत refixed थे 'नीचे दिए गए चार्ट के बी "। इसलिए 30 जून 2009 से प्रभावी और के रूप में बढ़ाया गया तय पेंशन कॉलम के तहत दिखाया गया है' सी तैयार संदर्भ के रूप में 'ई' तालिका के। मूल पेंशन में अंतर कॉलम के तहत दिखाया गया है '। बकाया अंतर पेंशनरों को बैंकों द्वारा भुगतान किया गया साथ होने के कारण के रूप में।
PENSION COMMUTATION
Whenever any retiring officer approaches us for advice, invariably the question of whether or not to commute the pension comes up. This article deals with this issue so that all officers, retired or retiring, would be able to make up their mind more knowledgeably.
Before we take a call on the same, a few connected issues need to be understood clearly:- Basic Pension is exactly half of your last drawn Basic Salary. And Basic Salary for the purposes of pension calculations is Basic + Grade Pay + Rank Pay. Whenever commutation is done, only the Basic Pension gets commuted, never the DA received. Thus, after commutation also, the DA is received on full value of Basic Pension. Commutation can be done of any value from 0% to 50%. However, generally almost all the officers get 50% commutation done, if they go in for it. Commutation is done based on a factor of commutation set by the Government which depends on the years of service that you’ve put in. To put it more simply, it is the time adjusted Present Value of your future pension. Pension is restored exactly 15 years after first commuted pension is received by you. Though not confirmed, probably commutation can still be done within one year of retirement, if the officer has not done commutation and wishes to change his decision. Now, let us understand the difference between a commuted pension and an uncommuted pension. We’ll understand it by an example.
Case Study
The officer is a Col who has Rs 60,000 of Basic Pay, 8700 of Grade Pay and 6000 of Rank Pay, making it a total of Rs 74,700 of Basic Pay while serving. He will commute 50% of his pension, if he does so. He is in a dilemma what to do. A commutation factor of 8.08 is applicable to him. The DA is 119% at present.
His Basic Pension is = Rs 74,700 / 2 = Rs 37,350.
If he does not commute the pension:- Monthly Pension received by him = Rs 37,350 + (119% of 37,350) = Rs 81,800.
If he commutes the pension: Monthly Pension received by him = Rs 18,675 (ie, 37,350/2) + 44,446 (ie, 119% of 37,350) = Rs 63,121.
In addition, he will receive, a bulk commuted pension amount of Rs 19.9 Lakhs (ie, 18,675 X 12 months X 8.88 factor).
Analysis of Commutation Vs Non-commutation:
If you see the calculations above, the difference between commuted and non-commuted monthly pension is about Rs 18,680, which is not much of an additional amount to be received every month. And, he also gets a big sum of Rs 19.9 Lakhs in bulk. He would be able to generate long term returns of anything from 6% - 12% per annum net of tax, depending on where he invests his commuted amount. If he takes up re-employment or corporate job after retirement, for a few years, this small additional monthly amount will anyway not matter much to him.
Thus, commutation seems better than non-commutation due to following three reasons:- Difference between 50% commuted (maximum allowed) and uncommuted pension is not much on a per month basis. As such, for this officer and his wife, living in their own house, Rs 63,000 per month of commuted pension is normally quite adequate. The bulk amount is quite large. Apart from providing a big financial security, it can be prudently invested to generate the gap amount (between commuted and uncommuted monthly pension) while still retaining the bulk money with you in your kitty. In case something untoward happens to the officer, the Government pays the same pension to the family of commuted and uncommuted cases, thus effectively ‘forgetting’ the commuted pension bulk amount given to the officer. This is a large welfare measure by the Govt. If the Officer retires after 01 Jan 2016, ie 7th CPC applicable to him:
It is assumed that the 7th pay commission will increase his serving basic pay by 20%. Thus his serving Basic Pay will be Rs 89,640 and hence, Pension Basic Rs 44,820.
If he does not commute the pension, he gets a Pension of Rs 98,156.
If he commutes pension by 50%, his pension will be Rs 75,746. And he gets a commuted amount of Rs 23.88 Lakhs.
Again, even after pay commission effect, the gap between maximum commuted and non-commuted pension is only Rs 22,410 while the officer gets Rs 23.88 Lakhs as bulk if he commutes by 50%.
Our Recommendations
We strongly recommend that all officers should commute their pension to the maximum allowed 50%. If the officers are also able to invest their commuted pension bulk amount wisely and carefully, there is not likely to be any difference (or a minor difference) in their take-home pension even after commutation while still having this large commuted bulk amount with them as a big security.
Insurance.. Not charged from FP
REGROUPING OF PBOR RANKS
Groups for all ranks of PBOR have been introduced w.e.f. 01.06.1953. there were 8 groups initially i.e. A, B, C, D, E, F, G and H. These pay groups were regrouped in 5 (i.e. A, B, C, D, E) w.e.f. 01.01.1973 which further regrouped in 3 groups (X, Y & Z) w.e.f. 10.10.1997. Similarly, groups of Air Force, Navy are also given below for Pre-73 to Post 10.10.1997 and Pre 01.01.1996 to 10.10.1997. The groups have now been regrouped as follows-
ARMY
Basis : LIC (94-96) Ultimate Tables and 8.00% imterest.
Service Pension : Regular Army/Air Force/Navy/DSC
Definition:
Service Pension is a pension, which is sanctioned to a P.B.O.R. on Completion of his terms of engagement for the qualifying service Rendered by him in the Armed Forces.
Condition:
Minimum qualifying service without weightage to earn a Service pension is 15 years (20 years in case of NC (E))
Linkage of full pension with 33 years of Q.S. is dispensed with from 01.01.2006.
Now pension of PBOR will be calculated at rate of 50% of emoluments last drawn
or average of reckonable emoluments drawn during last 10 months which is more beneficial.
Authority : G.O.I. letter no 17(4)/2008 (2)/D(Pen/Pol) dated 12/11/2008.
The above calculated service pension shall in no case less than 50% of notional pay in the post – 01.01.2006 revised pay structure corresponding to the maximum of Fifth CPC pay scales including whole of classification allowance last drawn in the rank and group held of the time of discharge / invalidment. The amount so determined will be the pension for 33 years of reckonable qualifying service including improved weightage (except TA personnel) as given below at point IV. For lesser period of reckonable qualifying service this amount will be proportionately reduced.
After 01.01.06 with the implementation of the order on “Improvement in the Pension of PBOR” the weightage in respect of Sepoy, Naik and Havildar has been raised to 10 years, 8 years and 6 years respectively (for all past and future retirees.) subject to a restriction of 30 years as maximum qualifying service. The benefit would be given only in respect of Service Pension.
The amount of pension finally arrived at will be subject to a minimum of Rs. 3500/- per month.
Authority : G.O.I. letter no 14(3)/2004-D(Pen/Sers)/Vol.III dated 01/02/2006 and 02/05/2006. The service pension in respect of PBOR for 33 years of qualifying service is calculated at 50% of the maximum of the scale of pay, including 50% of the highest classification allowance, if any, of the rank/pay group actually held continuously for 10 months (or maximum period of 10 months) before the date of discharge subject to minimum of Rs.1275/- p.m.(Rs.1913/- pm after merger of DP)
RULE OF 33 FOR FULL PENSION TO GO Shri MO Inasu, an Ex-Servicemen was re-employed in Central Govt Services in Kerala. He retired prior to Jan 2006. He challenged the rule of 33 years in CAT Ernakulam and pleaded that since this rule is NA for post-6 retirees as such as per judgment of hon’ble Supreme Court in Maj Gen SPS Vains Vs UOI, the same benefit should have been extended to pre-06 pensioners. CAT Ernakulam ruled that rule of 33 years pre–2006 being violative of Art 14 and 16 Constitution should be abrogated. After a long legal battle, finally in 2015 hon’ble Supreme Court upheld judgment of CAT Ernakulam. Therefore all Sepoys who serve upto 15 years (extended by two years), Naiks and Havildars who cannot serve for 33 years including rank weightage (Sepoy = 12 years; Naik = 10 years; Havildar = 8 years) and those officers / JCOs who take premature retirement would benefit substantially in pension. Ministry of Personnel, Pensions and Public Grievances is in the process of obtaining Govt sanction to remove this restriction of 33 years to all pre–06 retirees. Once that is received, then all Central Govt ministries will have to issue order to benefit their affected pensioners. The same has been covered in the SCOVA meeting held on 13 Oct 2015.
Payment of life-time arrears of pension (LTA)
LTA is the Pension for the period it was not drawn during the life time of a pensioner .According to Arrears of Pension (Nomination) Rules, 1983, pensioners are required to nominate another person, during his/her lifetime to receive the arrears of pension, due to the pensioner on his/her death. This is paid to the nominee, and if there is no nominee, lifetime arrears can be claimed by the legal heirs and settled. However, time barred claims will be settled by sanction of the concerned Pension Sanctioning Authority.
All pensioners & family pensioner are entitled to any increase in pension. they get arrears in due course. however if the pensioner/family pensioner passes away before receiving his/her arrears, these become "Life time Arrears (LTA)". Their arrears like Pension arrears of any category, the 7th CPC arrears or the OROP arrears which are entitled to them if not received during life time become LTA after death of the pensioner. Specially when a pensioner/family pensioner passes away before receipt of his/her pension arrears, the same can only be paid only to the nominee if so nominated during his/her life time by submitting Form "A" .
Bank will not automatically pass on such arrears due to veteran officer to the family pensioner unless she had been nominated as nominee in Form A duly submitted to the PDA. One copy of the same must be retained as an acknowledgement.
In case the PDA refuses to pay LTA to the heirs like son or daughter of the pensioner who unfortunately did not nominate a nominee for the LTA. The claimant has to approach First Class Judicial Magistrate and plead that out of ignorance her husband/father/mother did not sign Form "A" and he/she being the legally heir is entitled to receive the LTA. Based on ruling from 1st Class Judicial magistrate, the bank will release the LTA of their deceased parent. This is a tedious process and will take mush time as for any legal process.
What is LTA?
A1. The single lady gets her family pension when her pensioner husband passes away. But whatever dues he would have got had he was alive are not pension hence wife does not automatically becomes a beneficiary. The husband while in service is to nominate one of his NOK i.e. his wife or daughter or son to be the nominee to receive all his arrears like Pension arrears etc. For example if a person passes away on say 21 Dec 2015, his wife will get her family pension from 22 Dec 2015. But pension of her husband from 01 to 21 Dec is arrears which can only be claimed by nominee.
PENSION TABLES & ARREARS - JCOs & ORs - http://1drv.ms/1QwgWdQ OROP
Judicial commission -- http://1drv.ms/1NlcYkb
DEFENCE PENSION GUIDE PCDA (P)http://www.pcdapension.nic.in/dpti/DEFENCE%20PENSION%20GUIDE%202007_complete.pdf
Sunday, September 13, 2015 From Maj Navdeep Singh’s Blog
Irresponsible Chain Mails on pensions of Jawans and JCOs
Though the instant post was not ideally required, but I feel compelled to throw light on a subject, which, since the last few days has led to a massive disinformation campaign fuelled by irresponsible chain-mails regarding pensionary benefits of ranks other than Commissioned Officers.
As was brought out in the last post on this blog, the Government has issued the sanction order implementing the Supreme Court decision on removal of a pensionary anomaly with effect from 01 Jan 2006, that is, the date of implementation of the 6th Central Pay Commission (6th CPC) recommendations. There have been mails floating around and queries raised that the benefit as granted to Commissioned Officers and Civilians on 24 Sept 2012 has now been applied from 01 Jan 2006 but similar benefit has not been extended to ranks other than Commissioned Officers. Some mails have been nauseatingly abusive towards the Government and some have raised needless irresponsible conspiracy theories.
Let me attempt to clarify this issue for the benefit of readers.
When the 6th CPC recommendations were implemented, the pensions of pre-2006 retirees were fixed at 50% of the minimum of the applicable pay band with effect from 01 Jan 2006 rather than the pay within the pay band for each rank according to fitment tables. This was implemented for all Central Govt pensioners, irrespective of rank or service. This was objected to by pensioners and led to massive litigation since as per pensioners, the pensions were to be based on minimum of pay within the pay band for each rank/grade and not the minimum of the pay band itself.
While this controversy was simmering, the Government introduced a new system of pension calculation for ranks other than Commissioned Officers wherein they scrapped the system of minimum of the pay band but initiated a system of calculation by taking the maximum of the 5thCPC scales fitted notionally into the new 6th CPC pay bands and alongwith enhanced weightages. This new system came into force on 01 July 2009. The weightages were further enhanced with effect from 24 Sept 2012. Hence, the controversy of minimum of pay band vis-a-vis minimum of pay for each rank/grade within the pay band became redundant for ranks other than Commissioned Officers with effect from 01 July 2009 but the said anomaly continued to hold field for Commissioned Officers and Civilians. Ranks other than Commissioned Officers who were now fixed on notional top of the 5th CPC scales w.e.f 01 June 2009 were however hit by the minimum of pay band vis-a-vis minimum of pay within the pay band anomaly from 01 Jan 2006 till 30 June 2009.
On the other hand, in the case of Commissioned Officers and Civilian retirees, the pension continued to be based on minimum of pay of the pay band itself and later the Government itself rectified the anomaly with effect from 24 Sept 2012 and provided that from Sept 2012 onwards the pension would be based on minimum of pay for each rank/grade within the pay band. The letter was issued in Jan 2013 with retrospective effect from Sept 2012. Various Tribunals and more importantly the Delhi High Court however ruled that the removal of the anomaly would have to be effectuated from 01 Jan 2006 rather than the future artificial cut-off date of 24 Sept 2012, and the said decision was ultimately affirmed by the Supreme Court.
In implementation of the decision of the Delhi High Court affirmed by the Supreme Court, the Government has issued the implementation instructions under question. For ranks other than Commissioned Officers, the instructions would apply from 01 Jan 2006 till 30 June 2009 since from 01 July 2009 onwards the anomaly stood removed and rendered redundant since all such personnel were as it is fixed on notional top of scales. For Commissioned Officers and Civilian pensioners, the instructions would apply from 01 Jan 2006 till 23 Sept 2012 since the anomaly was only removed on 23 Sept 2012.
Those who are cursing the Government and Commissioned Officers and Civilian pensioners must realize the contours of the controversy before jumping the gun based on half-baked information. It is for the information of all, that pre-2006 retiree ranks other than Commissioned Officers are granted pensions based on notional maximum while Commissioned Officers and Civilians are granted pensions based on notional minimum within the pay band. The Government letter rather protects the enhanced pensions of Jawans and JCOs from 01 July 2009/24 Sept 2012 and this should have brought joy to such pensioners, even if the arrears are not that massive, rather than disaffection.
Please do not go by chain-mails being circulated based on half baked information of self styled experts since reliance on such information leads to needless frustration based on non-existent controversies.
तालिका के स्तंभ 'डी' के तहत के रूप में खाया ये आगे सितम्बर 2012 को 24 से प्रभावी अधिकार प्राप्त समिति की रिपोर्ट पर refixed थे। पेंशन में अंतर भी 'एफ' कॉलम के तहत दिखाया गया है। इस वृद्धि के लिए अंतर का बकाया बैंकों द्वारा पेंशनरों को भुगतान किया गया। स्तंभ 'डी' के तहत के रूप में 24 सितंबर, 2012 पर तय रूप में पेंशन अब मूल पेंशन प्लस समय-समय पर लागू के रूप में महंगाई भत्ते की दरों में अंतर पर 1 जनवरी 2006 से प्रभावी देय हैं। सहित डीए तत्व गणना की कुल बकाया तालिका के स्तंभ 'जी' में दिए गए हैं। स्तंभ 'एच' परिवार पेंशनरों के लिए बकाया राशि देता है। नीचे दी गई तालिका Coloumn 'ए' के तहत वर्ष में सेवा में डाल द्वारा अर्जित पूरी पेंशन के लिए आंकड़े देता है। दिखाया पेंशन आंकड़े रैंक वेटेज जोड़ा प्लस में डाल सेवा के लिए कर रहे हैं। मामले में किसी भी जूनियर कमीशन अफसर या या वह यहाँ पर क्लिक करके पहुँचा जा सकता है जो हमारे विस्तृत टेबल पर आंकड़ों की जांच कर सकते वर्षों में कम सेवा में डाल दिया है।
Groups for all ranks of PBOR have been introduced w.e.f. 01.06.1953. there were 8 groups initially i.e. A, B, C, D, E, F, G and H. These pay groups were regrouped in 5 (i.e. A, B, C, D, E) w.e.f. 01.01.1973 which further regrouped in 3 groups (X, Y & Z) w.e.f. 10.10.1997. Similarly, groups of Air Force, Navy are also given below for Pre-73 to Post 10.10.1997 and Pre 01.01.1996 to 10.10.1997. The groups have now been regrouped as follows-
ARMY
Basis : LIC (94-96) Ultimate Tables and 8.00% imterest.
Service Pension : Regular Army/Air Force/Navy/DSC
Definition:
Service Pension is a pension, which is sanctioned to a P.B.O.R. on Completion of his terms of engagement for the qualifying service Rendered by him in the Armed Forces.
Condition:
Minimum qualifying service without weightage to earn a Service pension is 15 years (20 years in case of NC (E))
Linkage of full pension with 33 years of Q.S. is dispensed with from 01.01.2006.
Now pension of PBOR will be calculated at rate of 50% of emoluments last drawn
or average of reckonable emoluments drawn during last 10 months which is more beneficial.
Authority : G.O.I. letter no 17(4)/2008 (2)/D(Pen/Pol) dated 12/11/2008.
The above calculated service pension shall in no case less than 50% of notional pay in the post – 01.01.2006 revised pay structure corresponding to the maximum of Fifth CPC pay scales including whole of classification allowance last drawn in the rank and group held of the time of discharge / invalidment. The amount so determined will be the pension for 33 years of reckonable qualifying service including improved weightage (except TA personnel) as given below at point IV. For lesser period of reckonable qualifying service this amount will be proportionately reduced.
After 01.01.06 with the implementation of the order on “Improvement in the Pension of PBOR” the weightage in respect of Sepoy, Naik and Havildar has been raised to 10 years, 8 years and 6 years respectively (for all past and future retirees.) subject to a restriction of 30 years as maximum qualifying service. The benefit would be given only in respect of Service Pension.
The amount of pension finally arrived at will be subject to a minimum of Rs. 3500/- per month.
Authority : G.O.I. letter no 14(3)/2004-D(Pen/Sers)/Vol.III dated 01/02/2006 and 02/05/2006. The service pension in respect of PBOR for 33 years of qualifying service is calculated at 50% of the maximum of the scale of pay, including 50% of the highest classification allowance, if any, of the rank/pay group actually held continuously for 10 months (or maximum period of 10 months) before the date of discharge subject to minimum of Rs.1275/- p.m.(Rs.1913/- pm after merger of DP)
RULE OF 33 FOR FULL PENSION TO GO Shri MO Inasu, an Ex-Servicemen was re-employed in Central Govt Services in Kerala. He retired prior to Jan 2006. He challenged the rule of 33 years in CAT Ernakulam and pleaded that since this rule is NA for post-6 retirees as such as per judgment of hon’ble Supreme Court in Maj Gen SPS Vains Vs UOI, the same benefit should have been extended to pre-06 pensioners. CAT Ernakulam ruled that rule of 33 years pre–2006 being violative of Art 14 and 16 Constitution should be abrogated. After a long legal battle, finally in 2015 hon’ble Supreme Court upheld judgment of CAT Ernakulam. Therefore all Sepoys who serve upto 15 years (extended by two years), Naiks and Havildars who cannot serve for 33 years including rank weightage (Sepoy = 12 years; Naik = 10 years; Havildar = 8 years) and those officers / JCOs who take premature retirement would benefit substantially in pension. Ministry of Personnel, Pensions and Public Grievances is in the process of obtaining Govt sanction to remove this restriction of 33 years to all pre–06 retirees. Once that is received, then all Central Govt ministries will have to issue order to benefit their affected pensioners. The same has been covered in the SCOVA meeting held on 13 Oct 2015.
Payment of life-time arrears of pension (LTA)
LTA is the Pension for the period it was not drawn during the life time of a pensioner .According to Arrears of Pension (Nomination) Rules, 1983, pensioners are required to nominate another person, during his/her lifetime to receive the arrears of pension, due to the pensioner on his/her death. This is paid to the nominee, and if there is no nominee, lifetime arrears can be claimed by the legal heirs and settled. However, time barred claims will be settled by sanction of the concerned Pension Sanctioning Authority.
All pensioners & family pensioner are entitled to any increase in pension. they get arrears in due course. however if the pensioner/family pensioner passes away before receiving his/her arrears, these become "Life time Arrears (LTA)". Their arrears like Pension arrears of any category, the 7th CPC arrears or the OROP arrears which are entitled to them if not received during life time become LTA after death of the pensioner. Specially when a pensioner/family pensioner passes away before receipt of his/her pension arrears, the same can only be paid only to the nominee if so nominated during his/her life time by submitting Form "A" .
Bank will not automatically pass on such arrears due to veteran officer to the family pensioner unless she had been nominated as nominee in Form A duly submitted to the PDA. One copy of the same must be retained as an acknowledgement.
In case the PDA refuses to pay LTA to the heirs like son or daughter of the pensioner who unfortunately did not nominate a nominee for the LTA. The claimant has to approach First Class Judicial Magistrate and plead that out of ignorance her husband/father/mother did not sign Form "A" and he/she being the legally heir is entitled to receive the LTA. Based on ruling from 1st Class Judicial magistrate, the bank will release the LTA of their deceased parent. This is a tedious process and will take mush time as for any legal process.
What is LTA?
A1. The single lady gets her family pension when her pensioner husband passes away. But whatever dues he would have got had he was alive are not pension hence wife does not automatically becomes a beneficiary. The husband while in service is to nominate one of his NOK i.e. his wife or daughter or son to be the nominee to receive all his arrears like Pension arrears etc. For example if a person passes away on say 21 Dec 2015, his wife will get her family pension from 22 Dec 2015. But pension of her husband from 01 to 21 Dec is arrears which can only be claimed by nominee.
PENSION TABLES & ARREARS - JCOs & ORs - http://1drv.ms/1QwgWdQ OROP
Judicial commission -- http://1drv.ms/1NlcYkb
DEFENCE PENSION GUIDE PCDA (P)http://www.pcdapension.nic.in/dpti/DEFENCE%20PENSION%20GUIDE%202007_complete.pdf
Sunday, September 13, 2015 From Maj Navdeep Singh’s Blog
Irresponsible Chain Mails on pensions of Jawans and JCOs
Though the instant post was not ideally required, but I feel compelled to throw light on a subject, which, since the last few days has led to a massive disinformation campaign fuelled by irresponsible chain-mails regarding pensionary benefits of ranks other than Commissioned Officers.
As was brought out in the last post on this blog, the Government has issued the sanction order implementing the Supreme Court decision on removal of a pensionary anomaly with effect from 01 Jan 2006, that is, the date of implementation of the 6th Central Pay Commission (6th CPC) recommendations. There have been mails floating around and queries raised that the benefit as granted to Commissioned Officers and Civilians on 24 Sept 2012 has now been applied from 01 Jan 2006 but similar benefit has not been extended to ranks other than Commissioned Officers. Some mails have been nauseatingly abusive towards the Government and some have raised needless irresponsible conspiracy theories.
Let me attempt to clarify this issue for the benefit of readers.
When the 6th CPC recommendations were implemented, the pensions of pre-2006 retirees were fixed at 50% of the minimum of the applicable pay band with effect from 01 Jan 2006 rather than the pay within the pay band for each rank according to fitment tables. This was implemented for all Central Govt pensioners, irrespective of rank or service. This was objected to by pensioners and led to massive litigation since as per pensioners, the pensions were to be based on minimum of pay within the pay band for each rank/grade and not the minimum of the pay band itself.
While this controversy was simmering, the Government introduced a new system of pension calculation for ranks other than Commissioned Officers wherein they scrapped the system of minimum of the pay band but initiated a system of calculation by taking the maximum of the 5thCPC scales fitted notionally into the new 6th CPC pay bands and alongwith enhanced weightages. This new system came into force on 01 July 2009. The weightages were further enhanced with effect from 24 Sept 2012. Hence, the controversy of minimum of pay band vis-a-vis minimum of pay for each rank/grade within the pay band became redundant for ranks other than Commissioned Officers with effect from 01 July 2009 but the said anomaly continued to hold field for Commissioned Officers and Civilians. Ranks other than Commissioned Officers who were now fixed on notional top of the 5th CPC scales w.e.f 01 June 2009 were however hit by the minimum of pay band vis-a-vis minimum of pay within the pay band anomaly from 01 Jan 2006 till 30 June 2009.
On the other hand, in the case of Commissioned Officers and Civilian retirees, the pension continued to be based on minimum of pay of the pay band itself and later the Government itself rectified the anomaly with effect from 24 Sept 2012 and provided that from Sept 2012 onwards the pension would be based on minimum of pay for each rank/grade within the pay band. The letter was issued in Jan 2013 with retrospective effect from Sept 2012. Various Tribunals and more importantly the Delhi High Court however ruled that the removal of the anomaly would have to be effectuated from 01 Jan 2006 rather than the future artificial cut-off date of 24 Sept 2012, and the said decision was ultimately affirmed by the Supreme Court.
In implementation of the decision of the Delhi High Court affirmed by the Supreme Court, the Government has issued the implementation instructions under question. For ranks other than Commissioned Officers, the instructions would apply from 01 Jan 2006 till 30 June 2009 since from 01 July 2009 onwards the anomaly stood removed and rendered redundant since all such personnel were as it is fixed on notional top of scales. For Commissioned Officers and Civilian pensioners, the instructions would apply from 01 Jan 2006 till 23 Sept 2012 since the anomaly was only removed on 23 Sept 2012.
Those who are cursing the Government and Commissioned Officers and Civilian pensioners must realize the contours of the controversy before jumping the gun based on half-baked information. It is for the information of all, that pre-2006 retiree ranks other than Commissioned Officers are granted pensions based on notional maximum while Commissioned Officers and Civilians are granted pensions based on notional minimum within the pay band. The Government letter rather protects the enhanced pensions of Jawans and JCOs from 01 July 2009/24 Sept 2012 and this should have brought joy to such pensioners, even if the arrears are not that massive, rather than disaffection.
Please do not go by chain-mails being circulated based on half baked information of self styled experts since reliance on such information leads to needless frustration based on non-existent controversies.
तालिका के स्तंभ 'डी' के तहत के रूप में खाया ये आगे सितम्बर 2012 को 24 से प्रभावी अधिकार प्राप्त समिति की रिपोर्ट पर refixed थे। पेंशन में अंतर भी 'एफ' कॉलम के तहत दिखाया गया है। इस वृद्धि के लिए अंतर का बकाया बैंकों द्वारा पेंशनरों को भुगतान किया गया। स्तंभ 'डी' के तहत के रूप में 24 सितंबर, 2012 पर तय रूप में पेंशन अब मूल पेंशन प्लस समय-समय पर लागू के रूप में महंगाई भत्ते की दरों में अंतर पर 1 जनवरी 2006 से प्रभावी देय हैं। सहित डीए तत्व गणना की कुल बकाया तालिका के स्तंभ 'जी' में दिए गए हैं। स्तंभ 'एच' परिवार पेंशनरों के लिए बकाया राशि देता है। नीचे दी गई तालिका Coloumn 'ए' के तहत वर्ष में सेवा में डाल द्वारा अर्जित पूरी पेंशन के लिए आंकड़े देता है। दिखाया पेंशन आंकड़े रैंक वेटेज जोड़ा प्लस में डाल सेवा के लिए कर रहे हैं। मामले में किसी भी जूनियर कमीशन अफसर या या वह यहाँ पर क्लिक करके पहुँचा जा सकता है जो हमारे विस्तृत टेबल पर आंकड़ों की जांच कर सकते वर्षों में कम सेवा में डाल दिया है।
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