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Pension

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                                                              Pension

 An Overview

The Department of Ex-Servicemen Welfare (Purav Senani Kalyan Vibhag) is a young department of the Ministry of Defence which came into existence on 22nd September, 2004 on a promise made in the National Common Minimum Programme.  The Department was created to give a focused and comprehensive attention to the problems of re-habilitation and welfare of ESM.  This is a small Department with two Divisions, the Resettlement Division and the Pension Division.

Pension Regulations

This Division administers   (i) Pension Regulations for the Army, 1961, raised as PRA, 2008 (ii) Pension Regulations for the Air Force, 1961, and (iii) Navy (Pension) Regulation, 1964.  It also deals with Entitlement Rules for Casualty Pensionary Awards, 1982.

All the above Pension Regulations are under revision in the light of changes brought out by various Pay Commissions/Committees, Court decisions etc.  Entitlement Rules for Casualty Pensionary Awards, 1982 have, however, been revised and circulated vide letter No. 1(3)/2002/Vol.III/D(Pension/Policy) dated 18th January, 2010.  These Rules are known as Entitlement Rules for Casualty Pension Awards, 2008.

Kinds of Pension

Pension Division deals with policy matters relating to pensionary matters of Armed Forces Personnel which includes:-

    Service Pension is granted @ 50% of emoluments last drawn or average of reckonable emoluments during the last 10 months, whichever is more beneficial.  The minimum qualifying service to earn pension is 20 years in case of Commissioned Officer and 15 years in the case Personnel Below Officer Rank.
    Ordinary Family Pension is granted @ 30% of reckonable emoluments last drawn subject to a minimum of Rs. 3,500/- p.m. (in case of natural death of the individual).
    Special Family Pension is granted at a uniform rate of 60% of reckonable emoluments last drawn by the deceased, subject to a minimum of Rs. 7,000/- p.m. (in case of death of a individual attributable to military service).
    Liberalized Family Pension is granted equal to the reckonable emoluments last drawn by the deceased(to the families of personnel killed in war or war like operations, counter-insurgency operations, encounter with terrorists etc.)
    Disability Pension is granted comprising of disability element @ 30% of emoluments last drawn subject to a minimum of Rs. 3100/- for 100% disability to be reduced proportionately for lesser degree of disablement.  Service Element will be @ 50% of the reckonable emoluments last drawn at the time of disablement.
    War Injury Pension The rates of War Injury Element for 100% disability for various rank shall be equal to the reckonable emoluments last drawn which would be proportionately reduced where disability is less than 100%.

Processing of appeal
An Armed Forces Personnel, who is boarded out on medical grounds or is discharged / released / retires in low medical categories has the right to appeal against the denial of disability pension within a period of six months from the date of rejection of his initial claim. He will submit his claim to his Record Office(PBOR) / Service Hqrs(Commissioned Officers), which, in turn, will forward the same to Service Hqrs, as the case may be, to place it before the Appellate Committee. Similarly, right of appeal is available to next of kin to Armed Forces Personnel, whose initial claim for special family pension has been rejected. This Committee comprises of:-

Chairman     :     DDG(PS)/equivalent rank in Air Force and Navy
  
Member       :    (a)    DDG(Pens),  Office of DGAFMS
                         (b)    DFA (Pension)
                         (c)    Dir PS-4 / equivalent rank in Air Force and Navy.

In case the individual is not satisfied with the decision of the Appellate Committee for First Appeal, he has right to make another appeal through his Record Office(PBOR)/Service Hqrs(Commissioned Officers), which, in turn , will forward the same AG/PS, Army Hqs or equivalent in Navy/Air Force alongwith all the records to place it before the Second Appellate Committee on Pension.  This committee comprises of:-

Chairman :       Vice Chief of Army Staff or equivalent in Navy/Air Force

Members
    Chief of Staff (Army/Navy/Air Force) or his representative not below the rank of Maj Gen and equivalent
    Joint Secretary or Addl. FA, MoD (Fin)
    DGAFMS
    JAG of the Service other than to which the appellant belongs.

After consideration of all relevant issues involved in the case, the Appellate Committee will give its decision by upholding or rejecting the appeal.

Processing of Pension claims

The process for grant of pension is initiated by the Unit where the individual is posted, 18 months ahead of discharge/retirement.  Personnel Below Officer Rank(PBOR)  is attached with the concerned Record Office(RO) for completion of pension documents one month prior to discharge/retirement. Pension claim is initiated by the concerned RO in the case of PBOR and by Service Hqrs in case of Commissioned Officers and is forwarded to the respective Pension Sanctioning Authorities for notifying the Pension Payment Order(PPO).  PPO is notified by Pr. Controller of Defence Accounts (Pen),  Allahabad, in the case of Army personnel, Pr. Controller of Defence Accounts(Navy), Mumbai in the case of Naval personnel and Controller of Defence Accounts(Air Force), New Delhi  in respect of Air Force personnel.  A pensioner can approach his Pension Disbursement Agency on any working day after the date of retirement for getting his pensionary dues.

Defence Pensioners and disbursement agencies

There are 22.50 lakhs Defence pensioners and 55,000 to 60,000 are added every year.  The pension is disbursed across the country by approximately 45000 branches of the Public sector branches, 640 Treasury offices of the various State Govts, 61 Defence Pension Disbursing offices, two Post offices, Five Pay Account Offices and the three Pension Payment Offices of Indian Embassy, Nepal. PCDA (P) Allahabad is centrally responsible for accounting and audit of such pension payments, which amounts to approximately Rs 39,000 crores during the year 2012-13.

Defence Pension Adalat

A large community of Ex-servicemen specially Personnel Below Officers Rank (PBOR) and their families are settled in the interiors as also remote areas. The lack of awareness at the ground level both at the end of the pensioners as well as amongst the local authorities specially the disbursing agencies leads to generation of grievances either on delays in disbursement or on incorrect payments.  Defence Pension Adalats provide a credible forum for redressal of grievances of the defence pensioners near to their place of residence/work. Reforms in disbursement of pension is a continuous process.  The whole idea is to make the life of the defence pensioners dignified and hassle free so that they can get their due entitlement promptly without running from pillar to post.

Since representatives of concerned organisations are present in the Adalat, it is possible to take appropriate decisions on the spot to the extant possible. The Adalat disseminates latest information, order circulars, procedures, forms and formats not only to the pensioners but also to various local authorities like Banks and Treasury offices etc besides providing clarification of doubts on pension provisions and procedures. Six such Adalats are held in a year.

Pension Grievances Cell

The cell receives on an average representations around 600 to 1000 in a month.  These are examined in the Cell by the concerned Dealing Hand and referred to the concerned agencies for redressal manually with a copy to the individual so that he should know as to where his case has been referred.  The Department has initiated a project for computerized Grievance Redressal to National Informatic Centre Services Inc. (NICSI), which is likely to be completed in the current financial year.  States have also been requested to set up grievance redressal mechanism for the ex-servicemen.  

Process for disposal of Court cases
The Legal Notices and Writ Petitions/Original Petitions, relating to pensionary matters, filed in various Courts are forwarded to the respective Service Hqrs for defending the case on behalf of Union of India and others and to take necessary action for filing counter reply, briefing the Govt. Counsel and attending the Court’s hearings.  Powers for implementation of other wise of the Court cases have been delegated to the Service Hqrs, who, in turn, have redelegated the powers to lower formations like line directorate/Record Offices, etc.  Special Leave Petition (SLP) in the Supreme Court is, however, processed by them with Ministry of Law to Department of Ex-Servicemen Welfare.  DP&PW is also consulted wherever necessary.  DP&PW is also consulted, wherever necessary.

Status of recommendations of 6th CPC

Govt. letters for revision of pension of Armed Forces pensioners were issued on 11.11.2008 for pre 1.1.2006 retirees and on 12.11.2008 for post 1.1.2006 retirees.  The pension of pre 1.1.2006 has to be revised as given in MOD’s letter dated 11.11.2008 first by consolidation, which has further to be adjusted in terms of Annexure-II(Modified Parity).  This letter is available on the websites www.cgda.nic.in , www.pcdapension.nic.in & www.mod.nic.in. When the pension of a pre 1.1.06 retiree works out to be less than what has been shown in Annexure-II, it has to be stepped up by Pension Disbursing Agencies (PDAs) to the level what has been shown in Annexure-II for Commissioned Officers and Annexure-III for PBOR.  The PDAs are required to know the details like rank of pensioners, qualifying service in the case of Commissioned Officers and also group of PBOR.  Thereafter, Annexure-IV of aforesaid letter is required to be completed by PDAs and to be sent to the Pension Sanctioning Authorities to check the correctness of entitlement of the pensioners.  Annexure-IV contains details like (a) (i) existing Basic Pension, (ii) Dearness Pension in case of pre 1.4.2004(retiree) (b) Basic Pension, (c) Dearness Relief @ 24% of pension as at (a) or (b), (d) consolidated pension/family pension, (e) revised pension under modified parity, (f) revised pension from 1.1.2006 (g) revised pension after deducting commuted portion.

            Other orders issued in implementation of 6th CPC are available in the website of PCDA (P).

Cabinet Secretary Committee

The Committee set up under the Chairmanship of the Cabinet Secretary also went into this demand and related issues and submitted its Report on 30.06.2009.  It did not agree to OROP but made seven recommendations aimed at narrowing the gap between earlier and current pensioners.  All the recommendations were accepted by the Govt. and orders implementing the recommendations were issued on 30.10.2009, 19.01.2010, 20.01.2010 and 08.03.2010.

The implementation of the recommendations of Cabinet Secy. Committee has also been advertised in the Newspapers on 12th March, 2010 for information of Ex-servicemen.

            Recently a fresh Committee has been set up in July, 2012 under the chairmanship of Cabinet Secretary to look into the pay and pension matters of relevance of defence service personnel and Ex-Servicemen.  It is also looking after the demand of OROP.  On receipt of its recommendations, Government will take appropriate decision.

Corr. PPOs

            As on 24.08.2012 4,50,756 has been sent to respective Record Offices by the PCDA(P), Allahabad for onward transmission to their disbursing agencies.

Role of Deptt. of Ex-Servicemen Welfare

Department of Ex-Servicemen Welfare plays a coordinating role in the process and accordingly took up the matter of tardy implementation of the recommendations of the 6th CPC with the Deptt. of Financial Services.  As a result, that Deptt. issued instructions to all Public Sector Banks in September, 2009 and December, 2009 to complete the task of revision of pension expeditiously and issue duly completed Annexure-IV to all the ex-servicemen pensioners.  A Joint Notice on behalf of the Deptt. of Financial Services and Deptt. of Ex-Servicemen Welfare was also published in the prominent newspapers in various languages on 21.12.2009.

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Order : DA wef 1.7.2013

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Prime Minister Approves the Constitution of Seventh Central Pay Commission

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FM: Prime Minister Approves the Constitution of Seventh Central Pay Commission; Recommendations are Likely to be implemented with effect from 1st January, 2016

   The Finance Minister Shri P.Chidambaram in a statement said here today that the Prime Minister has approved the constitution of the Seventh Central Pay Commission.

            The fourth, fifth and sixth Central Pay Commissions’ recommendations were implemented as follows:

 4th CPC                       1.1.1986

5th CPC                       1.1.1996

6th CPC                       1.1.2006

  The average time taken by a Pay Commission to submit its recommendations has been about two years.  Accordingly, allowing about two years for the 7th CPC to submit its report, the recommendations are likely to be implemented with effect from 1.1.2016.

The names of the Chairperson and members as well as the terms of reference (ToR) of the 7th Pay Commission will be finalised and announced shortly after consultation with major stakeholders.
*****
DSM/MJPS/KA

(Release ID :99644)

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Poll bonus: 7th pay panel ahead of time

, by indianmilitaryveterans




NEW DELHI: The government on Wednesday approved setting up of the 7th pay commission to review the salary and pension of more than 80 lakh central government employees and pensioners, in what is seen as a move to appease the sizeable chunk of government employees just ahead of crucial state polls and in the build-up to the 2014 Lok Sabha contest.

The announcement, timed to beat the code of conduct that will come into force after the announcement of state polls later this week, sparked off a war of words between the Congress and the main opposition BJP which said it had been brought forward with an eye on polls.

But the news was greeted with joy by thousands of government employees and pensioners who expect a handsome payout when the panel submits its report: something which seemed to validate the reason that the sop will go down well with the influential constituency of government workers in Delhi and other poll-bound states.

A pay commission is set up every 10 years to review the salary of central government employees to take into account the impact of inflation and cost of living.

The finance ministry said the average time taken by a pay commission has been about two years and taking this into account, the recommendations of the panel are likely to be implemented from January 2016.

The decision came a day after the petroleum minister put off a hike in diesel prices and was seen as an indication that the government, now firmly in poll mode, may soft-pedal on tough decisions until the Lok Sabha polls. It was par for course with another decision taken on Tuesday: Cabinet's approval for an ordinance meant to allow convicted MPs and MLAs to hold on to their seats. The measure seemed tailor made to buffer RJD chief Lalu Prasad against a possible adverse verdict in a trial court in Ranchi on September 30.

The clearance of the ordinance is being seen as Congress's desire to keep open its options for tie-ups in Bihar.

A finance ministry statement quoted finance minister P Chidambaram as saying that Prime Minister Manmohan Singh had approved the setting up of the 7th pay commission.

Congress general secretary in charge for communication Ajay Maken's lauded the announcement in his tweets, saying pay panel recommendations help government attract the best talent.

He justified the move. "Seventh pay commission of govt employees announced. Except for 6th pay commission, all pay commissions are set up in third year of a decade... The government should attract best of talent as its employees. Pay commissions help in attracting and also retaining best available talents," Maken said in his posts.

The announcement has ensured that 2016 will be a tough year not just for the Centre but for governments across the country. Implemetation of sixth pay commission recommendations in January 2006, which marked increase of up to 30% in some salary brackets, imposed a huge burden on public finances.

The implementation of the recommendations of a pay commission often sparks off demand from state government employees and workers in other government run entities which also takes a huge toll on the public finances of these governments.

Economists said that the panel's recommendations, whenever they are implemented, would pose a huge challenge to the government which is battling to restore the health of public finances against the backdrop of slowing economic growth.

The names of the chairperson and members as well as the terms of reference of the seventh pay commission will be finalized and announced shortly after consultation with major stakeholders.

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7th Pay panel formed, retirement age may go up 62 yrs

, by indianmilitaryveterans



7th Pay panel formed, retirement age may go up 62 yrs The award of the seventh pay commission will be implemented from the beginning of 2016 and will benefit nearly 3 million pensioners. But since state governments generally match central wages, the actual beneficiary list stands at over 11 million employees and pensioners.
Siddharth Zarabi

The national capital, home to a vast majority of central government employees, is headed for elections this November. And so are four other states, followed by the general elections sometime early next year. This, more than anything else, explains the central government's hurry to promise its employees higher wages. The award of the seventh pay commission will be implemented from the beginning of 2016 and will benefit nearly 3 million pensioners. But since state governments generally match central wages, the actual beneficiary list stands at over 11 million employees and pensioners. The fact that this award is one more in a long list of expenditure-heavy pre-election programmes, will mean several consequences for India's finances. Back of envelope calculations suggest that even if the increments in the 6th pay commission were to be matched, the centre's wage bill could rise by up to Rs 1 lakh crore in 2016. But on the other hand, this payout will spark a surge in consumption starting that year. Why? The sixth pay commission award amounted to around 0.5 percent of GDP and a tidy sum was handed out as arrears in the start of 2008. That extra spending power meant that the ensuing slowdown was mitigated to some extent. This could play out again in 2016. Meanwhile, CNBC TV18 learns that the proposal to extend the retirement age of central government employees by two years has received fresh impetus. A decision on this could be taken within a week or two, and would be the second major populist decision by the UPA to woo the urban middle class and the powerful government employee mass in Indian society.

Read more at: http://www.moneycontrol.com/news/business/7th-pay-panel-formed-retirement-age-may-go62-yrs_956487.html?utm_source=ref_article

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Centre constitutes 7th Pay Commission

, by indianmilitaryveterans

Centre constitutes 7th Pay Commission 
* To be implemented from Jan 1, 2016 * No separate panel for forces
Ajay Banerjee/TNS

New Delhi, September 25
The Central Government today set up the Seventh Pay Commission for its employees. However, the promised separate pay commission for the armed forces has not been declared, so far, possibly following inputs from the services against having such a provision.

Sources said a large section of top officers in the Army, the Navy and the IAF were not keen on having a separate pay commission for forces as de-linking the forces from the main pay commission would cause more anomalies and there would be no relevant benchmarks to follow.

“In the end, the recommendations of a separate pay commission will also have to go through the Finance Ministry,” sources said. IAF Chief Air Chief Marshall NAK Browne, after consultations with the chiefs of the Navy and the Army, wrote to Defence Minister AK Antony saying the forces should from part of the main central pay commission, sources confirmed.

Finance Minister P Chidambaram said in a statement today that the Prime Minister had approved the constitution of the Seventh Central Pay Commission. The fourth, fifth and sixth Central Pay Commissions’ recommendations were implemented in 1986, 1996 and 2006, respectively.

However, there was no mention of a separate pay commission for the forces in the statement of the Finance Minister. Sources in the Ministry of Defence said there was no instruction, so far, to have a separate pay commission for the forces.
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Armed forces oppose Govt's 7th Central Pay Commission

, by indianmilitaryveterans

NAK Browne


Armed forces oppose Govt's 7th Central Pay Commission

In a development which has left the government red-faced and tongue-tied, the announcement of the Seventh Central Pay Commission (CPC) has directly pitted the armed forces against the Prime Minister.

On the day PM approved the formation of the 7th CPC, it was hit by a guided missile by the armed forces, represented by from none less than the Air Chief NAK Browne, the Chairman of the Chief of Staff Committee (COSC). This has left the Government red-faced and tongue-tied.

It all began with a directive by the Prime Minister, issued on December 27, 2008 which stated that, "In future, pay revision of the armed forces should be de-linked from that of civilians and separate board or commission should be set up for pay revision of the armed forces." Along with that, the PM had also announced the formation of a High Powered Committee to 'resolve issues relating to command and control functions/status of armed forces vis a vis paramilitary and civilians,' something which still hasn't taken place, as per the letter.

Standing up, in complete contradiction to that, on September 13, 2013, Air Chief NAK Browne, representing not just the air force but also the army and the navy, requested Defence Minister AK Antony's 'active support and consideration' to 'press for the justified demand of the services' and sought 'representation in pay commission'. The three page letter, significantly titled, 'Common VII Central Pay Commission', revisited the past when the armed forces emoluments were revised not by a common pay commission but by departmental committees.

ACM Browne mentioned, "Analysis of the experience of departmental committees vis a vis central pay commissions indicates that a separate pay commission may not necessarily benefit the services as anomalies are invariably bound to arise in both cases." Air Chief went on to say that it was the non-resolution of anomalies or ex parte resolution of anomalies which was the cause for dissatisfaction, leading the government to infer that the armed forces should have a separate pay commission. In the fifth paragraph of his letter, the Air Chief admitted, "central pay commissions to a large extent have been judicious and fair in their dispensation towards armed forces".

How stung the government is can be gauged by the fact that prior to this revelation, within the MoD, the move of creating a separate military pay commission was being seen as a 'historic one' to rectify the problems flagged by the armed forces. Speaking to this correspondent, a Ministry of Defence (MoD) official aware of the case said, "Armed forces were being ceremoniously duped and what the Air Chief has said makes sense so that his men get a better share of the pay commission pie."

In fact, the current stand off is reminiscent of the face-off between the government and the armed forces during the Sixth CPC.
Three services had already created special cells and trained their manpower to join the seventh CPC.
Armed Forces conducted a study at the College of Defence Management (CDM), Securdarabad which involved the rank and file of the three services, to understand whether the armed forces wanted to be a part of the central pay commission or not. The response was overwhelmingly in favour of the former PM announced today that the 7th CPC will be effective from 1/1/16 and a two-year window has been given to formalize the recommendations of the same.
The name of the chairperson and its terms of reference are yet to be finalised.


Read more at: http://indiatoday.intoday.in/story/military-and-centre-face-off-over-seventh-central-pay-commission/1/311744.html

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