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Delay in payment of pension to Defence Pensioners / Family Pensioners by agency banks

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Delay in payment of pension to Defence Pensioners / Family Pensioners by agency banks

Circular No. 165
Audit/Tech./070-XXI
O/o the Pr.CDA (P), Allahabad

Dated: 22 .02.2013.

To,
The CMD
1. All Public Sector banks
2. Private Sector Banks (i.e. ICICI, HDFC and AXIS Banks)

Sub: Delay in payment of pension to Defence Pensioners / Family Pensioners by agency banks.

The payment of pension to defence (including defence civilian) pensioners/family pensioners is disbursed by banks as per instructions contained in scheme for payment of pension of defence pensioners by Public Sector Banks.
Any other order issued by Government affecting entitlement of basic pension, increased dearness relief or other benefits are also supplied to the banks through circulars for timely & correct implementation.
However, this office as well as CGDA/Ministry of Defence is regularly receiving complaints from defence pensioners/family pensioners regarding delay in payment, payment at incorrect rate etc. The number of complaints from pensioners/family pensioners is increasing regularly, which has been viewed seriously by higher authorities.

Though, the remedial measures on various natures of complaints received from pensioners/family pensioners are already provided in the above mentioned scheme/circulars issued from time to time by this office, however, the same are again reiterated as under.

1. Release of withheld amount of gratuity/DCRG:- Of late it is reported by pensioner/family pensioner that bank is not releasing the withheld amount of Gratuity/DCRG after expiry of six months from date of retirement (three month after date of death of Personnel in the case of family pension).

Necessary instructions to release automatically the withheld amount of Gratuity/DCRG i.e. without any instruction from Pension Sanctioning Authority, after expiry of six months/three months (in the case of family pension) is either mentioned on back side of the PPO itself or enclosed/attached separately with the Pension Payment Order concerned. Therefore, there is only a need to establish a mechanism for release of the withheld amount of Gratuity/DCRG automatically after expiry of six months / three months as the case may be, if nothing is heard from concerned Pension Sanctioning Authority in this regard during the above period.

2.Restoration of Commuted Portion of Pension after 15 years of retirement:-

Representations against non restoration of commuted portion of pension even after completion of 15 years are also received in a large numbers. To avoid such representation following guidelines, though already circulated under this office circular No.83 dt. 24.11.2000, are reproduced.

(i ) Where the commutation of pension is/was simultaneous with the retirement, the commuted portion of pension shall be restored after expiry of 15 years with effect from the date of retirement, if payment of commuted value of pension is made during the first month of retirement leading to appropriate reduction on account of commutation in first pension itself.
(ii) Where commutation of pension is applied and notified after the date of commencement of pension and commuted portion leads to a reduction in pension in second or subsequent month, the 15 year period for restoration of commuted portion will be reckoned from the date of payment of commuted value i.e. from the date on which reduction in pension on account of commutation become effective.
(iii) Further, where the commuted value is paid in more than one stages, the reduction in amount of pension in such cases shall be made from the respective date of payment and commuted portion of pension of such pensioners will also be restored in stages by pension disbursing authorities on completion of 15 years from the date of reduction in pension.
A mechanism to restore the commuted portion of pension automatically after expiry of 15 years as clarified above also needs to be established.

3. Payment of Fixed Medical Allowance:-

(A)Defence Pensioners/Family Pensioner:-
(i ) Consequent on introduction of new Medicare Scheme w.e.f. 1.4.2003, all Ex servicemen who retired on or after 1.4.2003, have to become member of ECHS compulsory and are not eligible to draw Fixed Medical Allowance. All pre 01.4.2003 retirees have the option of either joining the scheme after depositing the requisite lump sum amount for the purpose or drawing Fixed Medical Allowance as per extent rates. Such pensioners/family pensioner who join this scheme will thereby not be entitled to Fixed Medical Allowance.
(ii) Payment of Fixed Medical Allowance in r/o all pre-01.04.2003 pensioners/family pensioners who do not join the scheme will be regulated as under.
(a) All defence pensioners/family pensioners in whose cases pension payment orders were issued by this office till 31.10.98, have been become entitled to the payment of Fixed Medical Allowance w.e.f. 01.12.97 or the date of commencement of their pension whichever is later provided that they opt for medical allowance and submit an undertaking to the bank to the effect that they are entitled to medical facilities under Armed Forces Hospital/MI Room but are residing in the areas where no such outdoor facilities are available. On the basis of this undertaking bank was requested to make an entry in regard to grant of medical allowance in the PPO, Payment Register and pension certificate and to authorized payment of Fixed Medical Allowance.
(b) The grant of Fixed Medical Allowance in r/o pensioners / family pensioners whose pension payment order is issued after 31.10.98 had to be notified in the PPO itself.
(c) Such an undertaking shall be obtained by the bank every year along with the certificate, the pensioner is required it furnish to continue the payment of Fixed Medical Allowance.
(d) Only one change in option, in the life time of pensioners/family pensioners shall be allowed.
(e) The Fixed Medical Allowance has been enhanced from Rs.100/= p.m. to Rs. 300/= p.m. w.e.f. 01.09.2008.
Note:- (i) If any pensioner or family pensioner receives two pensions, only single Medical Allowance as per the extant rules is admissible if he/she does not avail of the medical facilities provided by the respective organizations.
(ii) Re-employed pensioners/Employed family pensioners are not entitled to medical allowance as medical facilities are provided by his/her organization

(B) Defence Civilian Pensioners / Family Pensioner:-
(i ) All defence civilian pensioners/family pensioners in whose cases pension payment orders were issued by this office till 30.4.98, have been become entitled to the payment of Fixed Medical Allowance w.e.f. 01.12.97 or the date of commencement of their pension whichever is later provided that they opt for medical allowance and submit an undertaking to the bank to the effect that they are entitled to medical facilities under CGHS or similar Health scheme administrated by the Central Government but are residing in the areas where no such outdoor facilities are available. On the basis of this undertaking bank was requested to make an entry in regard to grant of medical allowance in the PPO, Payment Register and pension certificate and to authorized payment of Fixed Medical Allowance.
(ii) The grant of Fixed Medical Allowance in r/o pensioners / family pensioners whose pension payment order is issued after 30.04.98 had to be notified in the PPO itself.
(iii) After exercising above option and furnishing undertaking, if pensioners residential address is changed from CGHS covered area to a non CGHS covered area and vice-versa, only one change in option in the life time of a pensioner shall be allowed to avoid hardship to the pensioner as well as bank.
(iv) Such an undertaking shall be obtained by the bank every year alongwith the certificate, the pensioner is required to furnish to continue the payment of Fixed Medical Allowance.
Note:- (i) If any pensioner or family pensioner receives two pensions, only single Medical Allowance as per the extant rules is admissible if he/she does not avail of the medical facilities provided by the respective organizations.
(ii) Re-employed pensioners/Employed family pensioners are not entitled to medical allowance as medical facilities are provided by his/her organization.

4. Payment of Enhanced Rate of Ordinary Family Pension:-

Enhanced rate of ordinary family pension is payable for 7 years from the date of death of service personnel/pensioner or till attaining the age of 67 years whichever is earlier.
In all cases, where family pension is notified either jointly (i.e. Joint Notification) or separately the period of grant of enhanced rate as well as normal rate is also notified in the PPO itself.
Consequent upon implementation of 6th CPC recommendations, the enhanced rate of ordinary family pension is payable for a period of ten years, without any upper age limit from the date of death of the personnel to the family of a personnel who dies in service. This period of grant is also notified in the PPO itself. However, often it has come to the notice of this office as well as HQrs. Office/MOD that bank is making the payment of family pension at normal rate though the period/condition mentioned in the PPO for payment of enhanced rate has not expired.

5. Payment of Additional quantum of pension/family pension to pensioners/family pensioners of 80 years of age and above: -

(i ) The procedure for payment of additional quantum of pension/family pension to old pensioner/family pensioner has been provided in this office circulars No.57 dt. 27.9.2008, 68 dt. 28.7.2009, 72 dt. 24.9.2009, 75 dt. 25.11.2009, 83 dt. 12.10.2011, 397 dt. 18.11.2008, 417 dt. 02.09.2009, 441 dt. 01.10.2010 and 470 dt. 27.9.2011.
According to these, the additional quantum of pension/family pension on attaining the age of 80 years and above would be admissible at the below mentioned rates :-

Age of pensioners/family pensioners Additional quantum of pension/family pension
From 80 years to less than 85 years 20% of Basic Pension/family pension
From 85 years to less than 90 years 30% of Basic Pension /family pension
From 90 years to less than 95 years 40% of Basic Pension /family pension
From 95 years to less than 100 years 50% of Basic Pension /family pension
100 years or more 100% of Basic Pension /family pensio
(ii) In cases where exact date of birth of pensioner/family pensioner is available in the PPO, the additional quantum of pension/family pension on attaining the age of 80 years and above, would be payable at the above mentioned rates from the first day of the month in which his/her date of birth falls.
(iii) However, in case the exact date of birth is not available either in the PPO or in the office records, but an indication regarding the age of pensioner / family pensioner is available, the additional quantum of pension/family pension shall be paid from the 1st January of the year following the year in which the pensioner / family pensioner has completed the age of 80 years and above, based on the PPO/Office records. For example if the records show that the pensioner/family pensioner has already completed the age of 80 years/85 years as on 1 January 2008, he/she shall be allowed additional quantum of pension/family pension from 1 January 2008. No corrigendum PPO is required to be issued in such cases.
(iv) In case neither the exact date of birth nor the age is available either in the PPO or in the office records, the bank will request the pensioner / family pensioner to submit four copies of any of the following documents duly attested by a Gazetted officer/MLA to the bank.
(a) PAN Card
(b) Matriculation Certificate (containing the information regarding date of birth)
(c) Pass Port
(d) CGHS/ECHS Card
(e) Driving license (if it contains date of birth)
(f) Election ID Card
(g) Aadhaar Number UIDAI
A. If the document submitted by the pensioner / family pensioner contains the information regarding exact date of birth, the additional quantum of pension/family pension will be payable from the 1 day of the month in which his/her date of birth falls. However, in case the exact date of birth is not available on the documents submitted by the pensioner / family pensioner but an indication regarding the age of pensioner / family pensioner is available therein, the additional quantum of pension/family pension shall be paid from the 1st January of the year following the year in which the pensioner / family pensioner has completed the age of 80 years, 85 years etc. based on the documents submitted by the pensioner / family pensioner.
B. The bank will make the additional quantum of pension/family pension, on provisional basis, up to a period of six months from the month in which the proof of date of birth/age is submitted by the pensioner/family pensioner. In all such cases, the bank will immediately send one copy of each documents submitted by the pensioner / family pensioner to the Service HQrs / RO / HOO in r/o commissioned officers / PBOR / Defence Civilians respectively for verification and submission to concerned Pension Sanctioning Authorities for formal notification of date of birth/age through corrigendum PPO.
C. The bank will make payment of additional quantum of pension/family pension beyond a period of six months only on receipt of a corrigendum PPO notifying the date of birth/age of pensioner / family pensioner.
D. In case, the pensioner / family pensioner is unable to submit any of the documents mentioned in para 5(iv) above, but claims additional pension based on some other documentary evidence, such cases will be submitted by the bank to the Administrative Ministry through service HQrs(for Commissioned Officers)/Record Office (for PBOR)/HOO(for Defence Civilians) as the case may be. If Administrative Ministry is satisfied about the claim of the pensioner / family pensioner the same will be authorized through corrigendum PPO. No additional pension will be released by the bank until the corrigendum PPO is issued by the Pension Sanctioning Authorities.

6. Payment of Dearness Relief on pension/family pension: -

(i ) Of late, it is represented by the defence pensioners / family pensioners that additional installment of dearness relief is not paid timely by the banks. Banks take the plea that they have not received any order/circulars in this regard from this office. In this context, attention is drawn to this office circular No. 3/1992 bearing file No. G1/C/0113/Vol. X/Tech dt 29 April 1992, wherein banks were requested to release the dearness relief to defence pensioners (including defence civilian) pensioners/family pensioners on the basis of Government Order on the subject received from the Ministry of personnel, PG&P (Deptt. of Pension and pensioners welfare) New Delhi without waiting any instruction from this office as they are authorized to do so by the Ministry itself.
(ii) This view has also been strengthened by RBI vide, item 2 of Master Circular on disbursement of Pension by Agency Banks conveyed to all agency Banks under RBI Master Circular RBI/2011-13/98 (Ref DGBA GAD No. H-1/31.05.001/2011-12 dt. July 1, 2011)

7. Payment of dearness relief during re-employment of pensioners / family pensioners:-

The payment of dearness relief during re-employment / employment / permanently absorption of pensioners / family pensioners under the Central or State Government or in a Statutory Corporation / Company / Body / Bank under them in India or abroad, is not being regulated correctly by various banks though the position on the subject is clearly stipulated in Ministry of Personnel, Public Grievances & Pensions, Deptt of P&PW letter No. 45/73/97-P&PW(G) dt. 2n July, 1999 and Ministry of Defence letter 79(1)/95/D (Pen/Services) dated 28t August 2000 and Deptt of P&PW UO No. 41/42/2007-P&PW(G) dt. 3-4-2008. For uniform implementation of above orders, position is re-clarified as under.
(a) In case of re-employed pensioners who hold Group ‘A’ post or posts of the ranks of commissioned officers at the time of their re-employment will not be entitled to any dearness relief on pension on the fact that:- (i) a certain portion of pension is taken into account and is not entirely ignored. (ii) the pay in the post of re-employment is not required to be fixed at the minimum of the scale in all cases, and (iii) dearness allowance at the rates applicable from time to time is also admissible on the pay fixed on re-employment.
(b)(i) The entire pension admissible is to be ignored in the case of civilian pensioner who held posts below Group ‘A’ and those ex-servicemen who held posts below the ranks of commissioned officers, at the time of their retirement. Their pay on re-employment is to be fixed at the minimum of the pay scale of the post in which they are re-employed. Such civilian pensioners will consequently be entitled to dearness relief on their pension at the rates applicable from time to time.
(b)(ii) The ex-servicemen (PBOR) who retired before attaining the age of 55 years and re-employed thereafter and their pay fixed at a higher stage because of advance increments and no protection of the last pay drawn is being given, the pay should be treated as fixed at a minimum only for the purpose of ignoring the entire pension and allowing dearness relief on pension.
(c) The disability element is part of disability pension, therefore position explained at a & b above will also apply for regulating dearness relief on disability element during re-employment of pensioner drawing disability pension.
(d) The family pension received by the eligible central Govt. employees/Armed Forces pensioners is, in any case, not taken into account in determining their pay on employment therefore, dearness relief at the rates applicable from time to time shall be admissible on their family pension.

8. Compensation by the Agency Banks for delay in crediting pension/family pension/arrear thereof:-

(i ) Delay in credit of pension/family pension/ arrears thereof by banks have always been cause of increase of representation from defence pensioners/family pensioners. Though, RBI has already issued the guidelines to all agency banks to put in place a mechanism to obtain immediately the copies of pension order from Pension Sanctioning Authorities directly and to make payments so that pensioners/family pensioners should get benefits announced by the Governments in the succeeding month’s pension payment itself. (ii)Non adhering by of above guidelines, thereby causing, increase of complaints from pensioners/family pensioners alleging inordinate delay in disbursing the revised pension/family pension and arrears therof has been reviewed by RBI. And in order to obviate the such unwarranted inordinate delay in payment of pension/defence pension and arrears thereof, RBI has further instructed vide item 34 of Master Circular on Disbursement of pension by Agency Banks issued by RBI under letter No. RBI/2013-13/103, DGBA.GAD.No.H- 4/31.05.001/2012-13 dated July 2, 2012 that pension paying banks should compensate the pensioner for delay in crediting the pension/family pension/ arrears thereof by paying compensation at a fixed interest rate of 8 percent for the delay after the due date and the compensation shall be credited to the pensioner’s/family pensioner’s account automatically without any claim from the pensioner/family pensioner on the same day when the bank affords credit for revised pension/family pension/ arrears thereof in respect of all delayed pension payments made since October 1, 2008.
In view of the positions explained above, it is requested that all paying branches/CPPC making/authorizing payment of Defence (including defence civilian) pension/family pension may be advised/instructed either to put in place a mechanism to revise/calculate the pension/family pension/ arrears thereof at earliest so that pensioner/family pensioner should get the benefits announced by the Government in the succeeding month’s pension payment itself or to compensate the pensioner/family pensioner at a fixed interest rate of 8 percent for the delay in crediting his/her pension/family pension or arrear thereof.

Sd/-
(P.N. CHOPRA)
ACDA (P)

Source : PCDA

[http://www.pcdapension.nic.in/6cpc/Circular-165.pdf]

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Web Based Pensioner Portal to Facilitate Grievance Redressal of Pensioners

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Web Based Pensioner Portal to Facilitate Grievance Redressal of Pensioners, 17 Lakh Hits Received on the Portal 

 The Department of Pension & Pensioners` Welfare has developed a web-based `Pensioners` Portal`, under the National e-Governance Plan for dissemination of pension related information as well as registration of pensioners` grievances online. Addressing the media during the National Editors Conference in the Capital, Mr. V. Narayanasamy, Minister of State in the Ministry of Personnel, Public Grievances and Pension and Minister of State in the Prime Minister’s Office stated that welfare of pensioners and their families is of utmost concern for the Government. The department has on date received 56836  pension grievances and Redressed 38822 cases. More than 17 lakh hits have been received on the pensioner portal.  

The minister stated that welfare of the pensioners and their families was a top priority for the Government.  Mr.  Narayanasamy highlighted the steps taken by the government for pensioner’s welfare:

a)         Enhancement of minimum pension/family pension from Rs.1275/- to Rs. 3500/- per month (Post VIth CPC);

b)         Minimum increase of 40 percent of the pre-revised basic pension of pre-2006 pensioners/family pensioners;

c)         Grant of additional pension ranging from 20% to 100% to old pensioners/family pensioners of the age of 80 years and above;

d)         Grant of full pension on completion of 10 years of qualifying service (instead of 33 years of qualifying service);

e)         Raising of ceiling for gratuity from Rs. 3.5 lakhs to Rs.10 lakhs;

f)          Continuance of family pension to childless widow on remarriage;

g)         Period of enhanced family pension in the event of death of a Government servant while in service increased from 7 to 10 years.

h)         Ex-gratia lumpsum compensation to families of employees who lost their lives in the performance of duty, enhanced from Rs. 5 lakh/7.5 lakh to Rs. 10 lakh/15 lakh.

i)          Grant of Constant Attendant Allowance to 100 percent disabled pensioners who retired in accordance with the CCS (Extraordinary Pension) Rules.

j)          Grant of disability pension to Government servants who have rendered less than ten years of service and got disabled and boarded out of service.  Earlier such government servants were entitled to only service gratuity as the eligibility for disability pension was ten years of service

k)         Dependent disabled siblings (i.e. brothers/sisters) of a Government servant/ pensioner allowed family pension for life.

Mr. V Narayanasamy spoke about the new Initiatives taken by Govt. to help the pensioners which provide for Grant of family pension to disabled children after their marriage amongst other measures.

****

KSD/RC







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Revision of PPO of Pre-2006 Pensioners/Family Pensioners - (i) Even if age/date of birth of spouse is not available, (ii) model advertisement for use by Ministries/Departments.

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Special Allowance for child care for women with disability

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Sl. No. / Frequently asked Questions / Answer

1. Whether the women employees with disabilities are entitled for special allowance for child care at double the rates for multiple births at the time of first child birth?

No. In case of multiple births at the time of first child birth, the woman employee shall not be entitled to this allowance at double the rates for multiple births.

2. Whether the allowance would be admissible for the 3rd child in case either of the first two children i.e. first child or the 2nd child expires before the attaining the age of two years?

It is clarified that the grant of Special Allowance for the child care for women with disabilities is admissible for two years from the birth of the child so long as the woman employee does not have more than two surviving children.

Source : www.persmin.nic.in

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Central D.A hike from January'13 to be announced in coming week

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The cabinet will approve 8% D.A. hike for Central Govt. employees and pensioners in it's next meeting in the coming week and subsequently announcement will be made. The next date of cabinet meeting is not yet decided. Usually the hike of January installment of Dearness Allowance is approved within March but due to recent political turmoil and P.M's foreign visit, the cabinet could not meet on the last week of March.
The exact date of D.A. announcement will be stated in this blog as soon as possible.

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DA details from Jan 2006 to date

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Dearness Relief (DR) Rates for Pensioners - 6th CPC

Date
From which Payable
Rate
Download order
1st July 2012
 72%
http://www.pensionersportal.gov.in/img/pdf.gif
1st Jan 2012
 65%
http://www.pensionersportal.gov.in/img/pdf.gif
1st July 2011
 58%
http://www.pensionersportal.gov.in/img/pdf.gif
1st Jan 2011
 51%
http://www.pensionersportal.gov.in/img/pdf.gif
1st Jul 2010
 45%
http://www.pensionersportal.gov.in/img/pdf.gif
1st Jan 2010
 35%
http://www.pensionersportal.gov.in/img/pdf.gif
1st Jul 2009
 27%
http://www.pensionersportal.gov.in/img/pdf.gif
1st Jan 2009
 22%
http://www.pensionersportal.gov.in/img/pdf.gif
1st Jul 2008
 16%
http://www.pensionersportal.gov.in/img/pdf.gif
1st Jan 2008
 12%
http://www.pensionersportal.gov.in/img/pdf.gif
1st Jul 2007
 9%
http://www.pensionersportal.gov.in/img/pdf.gif
1st Jan 2007
 6%
http://www.pensionersportal.gov.in/img/pdf.gif
1st Jul 2006
 2%
http://www.pensionersportal.gov.in/img/pdf.gif
1st Jan 2006
 -
http://www.pensionersportal.gov.in/img/pdf.gif


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The Report of the Parlimentary Committee

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DISABILITY PENSIONERS TO KNOW:

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Disability pension   orders will be  denoted by :
 D/  012/ year,     D/RA/  012/ year     DE/ corr/ 012/ year.

D  means  disability pension sanctioned  for a particular period say 5,  10 years. After this period, the pensioner has to re appear for Re assessment of Medical board, then the percentage  of Disability element may increase, may remain the same  or it may be reduced  .   Here the PPO  will be denoted as     D/ RA/ 012/ year  for life.     The same is now modified
 as DE / 012/ year  for life .

In earlier times the Rate of percentage was, 20%, 30%, 40% , 50% and so on  up to 100%.
Now it is sanctioned as 50% minimum.

Those who retired prior to 1996 and after 1996  up to 31-12-2005  with Disability pension with the reason for :

Invalided out,        Medically boarded  out , not fit for further military service etc.  Under Clause  13-(iii)

These clause of veterans can apply for Broad banding i.e Rounding of  Disability element.  That is their exiting percentage will be enhanced to :

20 %  to 49%        ……….as 50%
50   to   75%         ………  as 75 %
76%  to 100 %............... as 100 %

The Veterans have to send Annexure as per CDA cir 429 duly filled  and signed by the PDA to their Record Office, . After verifying the records, the RO will send the annexure to CDA and the CDA will send the revised PPO enhancing the  Rate of Disability element.   It may take 3 to 4 months time.

Previously the rate of Disability pension was fixed  for Ranks:

Sepoy  to  Havidar…………..100%  disability ….3510.00
Nb.Sub to Sub.Major……… 100%  disability…………  4300.00
Comm.Officers  and
Hony. Comm.officers……..  100%  disability….       5880.00    

Now as per the latest circular  456, the Disability pension is calculated on the Emolument last drawn by the pensioner. That is 30% of the emolument will  100% disability.

For example:
A sepoy of say   X group…  Minimum fitment as per cir 501-         12240/-
100 % disability   will    30% of the emolument   i.e… 12240 X 30%= 3672.

Say   if the Sepoy was sanctioned with say 20% disability  then  it will be  20% of 3672=   735.
Previously it was= fixed rate of 3510 X 20%= 702.    So There is Difference .

Likewise the disability pension will vary for each veteran  according to their Ranks and their emolument.
Note: the disability pension is calculated for the Rank held at the time of discharge.

The affected ESM has to approach the PDA  and get the revised Disability pension or they have to write to their respective Record Office.

Source : Exwell Trust

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PENSION -Not a burden on the Government

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                                        PENSION                                                                                                                

Not a burden on the Government
                               
             Pension is described in section 60 of the CPC and section 11 of the Pension Act There are three important features of ‘pension’. Firstly, pension is a compensation for past service. Secondly, it owes its original to a past employer-employee or master-servant relationship. Thirdly, it is paid on the basis of earlier relationship of an agreement of service as opposed to an agreement for service. This relationship terminates only on the death of the concerned employee. Scheme of payment of pension was introduced: as it was greatly advantageous to the government.
          (i)Government saved thousands of million by stopping matching contribution to provident fund.
       
          (ii)One third the commuted part of pension was permanently retained by the government, till 1986 . Even after 1986 in restoring the commuted portion after 15years, Govt. retains the substantial balance with itself ( As per calculations the amount commuted would be got back by the government in  ten years)
       
          (iii)Due to delayed payment of arrears Govt. retains millions of rupees on a/c of death of pensioners/family pensioners during the intervening period. Thus enormous amount of money has been with the government for very long period. Had the government created a corpus out of these savings by proper investment, today pension would not have been a burden.
          Friends ,  Inspite of clear ruling of Honorable S.C. on more than one occasion,
(i)that pension is not a largesse instead; the concerned employee by the dint of his hard work has earned it.
(ii)That Pension is legally enforceable right in terms of proviso to Article 309 clause 5 and Article 146 ;of the constitution of India.  Government has been crying about increasing financial load of pension, forgetting all the time that during the service time of present pensioners.,
(i) Had to forego the matching contribution by the government to the Provident fund on account of which Govt. saved thousands of million  Rupees.
(ii) Were paid less than their non pensionable counterparts.
          Whenever parity of wages, was demanded on the principal of equal work equal pay., Government declined it on the reason that, Pensionable Government employees were entitled to pension after retirement, thus their salary could not be at par with similarly placed non pensionable counterparts .
          In the studies got done by Central Pay Commissions it has clearly come out that the pay scales of pensionable govt. employees are kept low by design.
          Each pay commission before recommending new grades took into account all the benefits/allowances and perks including the post retirement pension and other benefits.
That means present pensioners were paid less salary than entitled to based on equal work equal pay as compared to non pensionable  workers! Because they were to be paid pension. Pensioner during his/her service life directly or indirectly always contributed towards pension to be paid after retirement
(i) By forgoing government’s matching contribution to the provident fund
(ii) By accepting lower salaries for equal work as compared to their non pensionable counterparts
(iii) By giving prime years of their lives to the government. Thus Pensioners are being paid pension out of their  own money which was otherwise due to them. Then why this hue &cry about pension burden .Why I. Tax  on Pension?.
          Why not even once, not evens the opposition, ever talk about, ever increasing load of pension , perks & Security of politicians.
Introduction of NPS is conspiracy to deprive the employees of Financial & Social security in their old age as it does not guaranty payment of single penny & is subjected to market risks
          The present Finance Minister Sri P.Chidamram had once stated in his ealier tenure that commitment of old pension scheme would very soon develop into an unbearable liability of the Government .      
           We therefore, have to be alert about the nightmarish thinking of those in power. Lest some fine morning, they may through an ordinance stop Pension of existing Pensioners .
         Over the decades, the strength of employees is consistently coming down. In Railways alone, inspite of increase in network, increase in freight/passenger movement and consequent increased work load we have now 14 lakhs employees against 18 lakhs earlier. Considering that pension amount is only half the basic pay, HRA,CCA etc are not paid to Pensioners, it can easily be seen that governments liabilities are much reduced & not increased . Had the Government taken care  of the savings as brought out in foregoing paras, there perhaps would not have been any burden of pension.
          We pensioners have therefore to take up on ourselves to establish the voice of reason & justice to protect our wellbeing and to an honorable existence as senior Citizens in free India.



S.C. Maheshwari
Secretary General BPS      

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