Sunday, 12 March 2017


Indian Military Veterans
Dear JCOs & OR,
   All of you explaining how JCOs and OR have been paid various types of arrears from Jan 2006 to Nov 2016.
    Circular 547.  JCOs & OR got first arrears of pension because of Circular 547 from Jan 2006 to Jun 2009. This circular was issued on 03 Sep 2015 enhancing your pension as on Jan 2006. This is to rectify the anomaly of Minimum of pay band of PB -1 : Rs 5200 – 20,200. This has resulted in Sepoy Y Gp to Hav Y Gp with 15 years getting pension more or less. The difference if at all it is because of grade pay.  The same was done for JCOs in PB-2 too.
       The Govt of India based on judgment of hon’ble Supreme Court issued Circular 547 fixing pension at minimum of fitment table of SAI 1/S/2008 for each rank and not at minimum of pay band. This was subject fulfilling condition of 33 years rank weightage. This has enhanced pension of Sepoy Gp Y with 15 years’ service from Rs 3,748 + DR to Rs 3,883 + DR. Though the minimum of the fitment table is Rs 5,125 (50% of sum of Rs 6250 as pay in pay band plus Rs 2000 as grade pay plus Rs 2000 as MSP) due to this rule of 33 years, the Sepoy of Y Gp  with 15 years’ service was fixed  pension at Rs 3883 on pro-rata reduced scale. (Rs 5125*(15 years service + 10 years rank weightage)/33= Rs 3883). Of course this restriction of 33 years with rank weightage was removed by Circular 568 dt 13 Oct 2016).
The arrear by Circular 547 is therefore Rs 3883 – 3748 = Rs 135 + DR pm from Jan 2006 to Jun 2009.
Circular 568. The hon’ble Supreme Court ruled that once a soldier has served minimum pensionable period he should be given pension at minimum of Fitment Table and rule of 33 years should be delinked as it was done for post – 2006 pensioners. Therefore all pre – 2006 pensioners of all ranks (from Sepoy Y gp to Lt Gen HAG +) got arrears from Jan 2006 to Jun 2014. This benefits mostly Sepoys to Havildars as most of the JCOs complete 33 years’ service with rank weightage of 5 years. i.e. a JCO who puts in 28 years’ service with 5 years rank weightage got Minimum Guaranteed Pension hence not eligible for arrear under Circular 568 Same is the case officers who got Minimum Guaranteed pension.

      JCOs /OR were given higher pension w.e.f. Jul 2009 to 23 Sep 2012 vide Circular 430 and again pension was enhanced from 24 Sep 2012 to Jun 2014 vide Circular 501. Since pension fixed in Circular 568 was highest, all pre – 2006 JCOs and OR who did not put in 33 years with rank weightage got arrears in Dec 2016.
  Post – 2006 JCOs and OR are NOT eligible for this arrear as they do not have the restriction of 33 years with rank weightage.

OROP. The Pension of all pre – 2012 pensioners got enhanced by OROP vide Circular 555 w.e.f. Jul 2014. The arrears are paid in four equal six monthly instalments. Family pensioners and gallantry award winners were paid in one go. The first OROP instalment was paid in Mar 2016, second one in Sep 2016 and third one in Mar 2017. Last instalment will be paid in Sep 2017.

7thCPC Pension Arrears. All pre – 2016 pensioners were paid arrears once the new pensions in 7th CPC were approved w.e.f Jan 2016. The pension paid was OROP pension with DR while the 7th CPC pension was hiked to 2.57 x OROP with NO DR from Jan to Jun 2016 and with 2% DR from Jul to Nov 2016.
    Your banks paid these four arrears in two financial years i.e. 2015 – 16 and 2016-17. Your bank deducted Income Tax (IT) known as TDS. This is because banks assume arrears is your additional income in the fin years 2015 – 16 and 2016-17 where as the arrears belong to period from Jan 2006 to Nov 2016. You have to split the arrears financial year wise and get benefit of lower or NIL income tax during financial year 2015-16 and 2016-17.

  I hope now you are all clear about the number of arrears you got from Jan 2006 to Nov 2016 and how you can reduce your IT burden.

 warm regards,
Brig CS Vidyasagar (Rtd)
94931 91380     

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