AFT – 30: Incorrect method of pension fixation by Notional Pay Method for Pre – 2016 Armed Forces JCOs /ORs and Family pensioners - Indian Military Veterans



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             Pensioners of the Armed Forces  are different from  pensioners of  other departments of the Government of India. Some rules and regulations apply to public services. In order to sensitize them about the various rules, regulations, government programs related to ex-servicemen and the various social assistance programs for families of ex-servicemen, we refer to the government instructions on this subject. , published information on related topics. Here, we will discuss SPARSH, CSD, ECHS, OROPfamily pension, disability pension, Service pension, re-employment with life certificate and other welfare activities  to increase the awareness of beneficiaries. 

Regards,
KS RAMASWAMY 
Editor

Nov 11, 2017

AFT – 30: Incorrect method of pension fixation by Notional Pay Method for Pre – 2016 Armed Forces JCOs /ORs and Family pensioners

Dear JCO and OR veterans

Sir,
1. As promised I am sending this mail to sensitize you how you have been cheated of your legitimate pension by the incorrect method of Notional Pay Fixation of Pension of Pre – 2016 Pensioners. Once you go through this long mail and see the calculations you will realize how much pension you will lose. You have to fight to get your correct pension. If you cannot understand this mail then do not hesitate to speak to me.

2. The Govt of India approved pension to all pre – 2016 Armed Forces Pensioners w.e.f Jan 2016 in 7thCPC by two methods as under;- (a) Method 1. Notional Pay Method. (b) Method 2. 2.57 Method

3.    2.57 Method
All pre – 2016 pensioners have been revised pension of Dec 2015 and multiplying it with 2.57. Suppose you are a Havildar, Group Y with 24 years of service and retired in 2005, your OROP pension as on Jul 2014 is Rs 7808 pm + DR at that time. Your pension in Jan 2016 is Rs 7808 x 2.57 = Rs 20,067 pm + DR @ 5% as on today. You are drawing this pension minus commutation if you have not yet completed 15 years of repayment.

4. Notional Pay Method.
Whenever a pensioner retired, the basic pay with stagnation increments if any is to be brought to the minimum of pay in the next CPC and finally arrive at notional pay as on Jan 2006. Multiply it by 2.57 and see the figure closest to it in Defence Pay Matrix for the rank. That is the Notional pay and add MSP of Rs 5200 for JCOs /OR + X group pay of Rs 6,200 if diploma is recognized by AICTE ( All India Council of Technical Education) or Rs 3600 if diploma is not recognized by AICTE. 50% of (Notional pay + MSP of Rs 5200 + Tech pay of Rs 6200 or 3600) is the pension as on Jan 2016 by this Notional Pay Method.

5. Pension Fixation as on Jan 2016.
Govt of India approved fixation of pension as on Jan 2016 by the method which gives higher pension out of 2.57 method or Notional Pay Method. Govt of India, Min of Def gave a policy letter on this method vide their letter No: 17(01)/2017/(02)ID(Pension/Policy) dated 05 Sep 2017.
You can see four illustrations how pension of pre – 2016 JCOs and OR (Naik of 3rd CPC, Hav of 4thCPC, Nb Sub of 5th CPC and Sub of 6th CPC) have been arrived at by Notional pay method. The letter says this method is not beneficial for pre – 2013 pensioners. Only Subedar Sahib who retired in 30 Sep 2013 is benefitted by Notional pay method. Disagreement of Stand of Govt of India on Notional Pay Method for Pre – 2016 Armed Forces Pensioners.

6. All Armed Forces pensioners are sanctioned OROP as in Calendar year 2013. It simply means whenever you retired (1976 or 1986 or 1996 or pre – 2013) you are deemed to have retired in calendar year 2013 and your pension is same as average of Maximum and Minimum of JCOs / OR of your rank, your length of service and your group X or Y and your classification allowance.
The tables of pension in OROP have been given in Circular 555 of PCDA (Pensions) Allahabad.

7. Therefore your pension by notional pay method is to be worked out not from Jan 2006 as was done by Min of Def but from Jul 2014 in OROP.

For example the pension of Havildar with 24 years of service of Y Group has pension in OROP of Rs 7808 pm (Circular 555 of PCDA (Pensions) Allahabad where as it is only Rs 4,684 as on Jan 2006 (vide Govt of India, Ministry of Defence letter No: 1(04)/2015(II) – D(pen/policy) dated 03 Sep 2015.

Notional pay as on Jul 2014 = Pay in Pay Band + Grade Pay + MSP Pension = 0.50 x (Pay in Pay Band + Grade Pay + MSP)

Pay in pay band + Grade pay = (2 x pension) – MSP of Rs 2000 For Havildar, Y Group with 24 years of service = Rs 2 x 7808 – 2000 = Rs 13,616
Notional Pay in Jan 2016 = Rs 13616 x 2.57 = Rs 34,993
Notional pay in Def Pay Matrix = Rs 35,900
Total Notional pay with MSP of Rs 5200 = Rs 35900 + 5200 = Rs 41,100
Pension by Notional Pay Method = 0.50 x (41100) = Rs 20,550
Pension by 2.57 Method = Rs 7808 x 2.57 = Rs 20,067

Gain by Notional Pay Method = Rs 20550 – 20067 = Rs 508 + DR @ 5%

8.    I projected this case to Brig SKS Rana, VSM, President, Legal Division of TSEWA. He consulted two advocates of TSEWA and today he informed me that both the advocates of TSEWA have confirmed that the case is fit for filing in AFT Delhi. 9. Detailed Calculations.I have worked out the pension by Notional pay method for all JCOs /OR and found that this method gives higher pension than 2.57 method. The calculations are given in the attachment. I as Brig with 32 years’ service gains only by Rs 390 In Jan 2016.

Yet, I am joining the legal case to be filed in AFT Delhi as a matter of principle and to tell the Government of India dominated by babus of IDAS and IAS that even if get Re 1 less, I will drag them to the court of law. So do not just worry about the small amount of increase in your pension when we win the case in AFT Delhi. You do not know how it will affect your pension in Jul 2019 in next OROP.

10. Disclaimer.The details of gain in pension if we win the case in AFT Delhi is a one man job. Needless to say it is a very tedious job. I have done checking and rechecking. I am likely to have made some mistakes in my calculations. You are to check my calculations in the attachment. If you find any mistake in my calculations, do point them out. It is your responsibility to see what I have done is correct. Don’t blame me later.

11. The Notional Pay method is correct for Civilians as their pensions were not enhanced after Jan 2006. On the other hand the pension of faujis has been enhanced w.e.f. Jul 2014 by OROP. Therefore the method adopted for civilians cannot be applied to faujis.

12. Eligiblity (a) All pre – 2016 retired JCOs and OR (Sepoy to Sub Maj) irrespective date of retirement. (b) Wives of deceased Officers of the ranks of Sepoy to Sub Maj irrespective date of retirement.

13. Legal Fees. (a) Sepoy – Rs 2,000
(b) Naik & Hav – Rs 2,500
(c) JCOs (Nb Sub to Sub Maj) – Rs 3,000 (d) Wives of Deceased JCOs – Rs 1,000 (e) Wives of deceased Sepoys to Havildars – Nil (No legal fees. It will be paid by TSEWA from donations received as a welfare measure to these ladies who get very less pension)

14. Mode of Remittance of Legal Fees. Cheque or by NEFT or Internet Banking facility.

15. Details of our Account for Remittance of Legal Fees by Internet Banking / NEFT. (a) Account No: 35238730663
(b) Name of Account : TSEWA –AFT
(c) Name of Bank : SBI, Bhaskar Rao Nagar, Sainikpuri (PO), Secunderabad
(d) IFSC : SBIN 00015568

Note: All those interested to remit money through internet banking and NEFT are requested to intimate to Col Dr GB Sethi, General Secretary and
Lt Col G Parvathesam, Treasurer your transaction details including bank from where you did NEFT, your account no, your rank & name.

16. Nomenclature.This case is given No : AFT – 30: Incorrect method of pension fixation by Notional Pay Method for Pre – 2016 Armed Forces JCOs /OR and Family pensioners. All those who are likely to gain pension as on Jan 2016 by the Notional pay method are welcome to join the case soon to be filed in AFT Delhi. You are requested to contact Col Dr GB Sethi, General Secretary, TSEWA at gb_sethi@yahoo.co.in and mobile no : 9440859877 to join the legal case. He will send you legal documents like vakalatnamas and two undertakings by e-mail. You are requested to sign them and send them by post with a cheque for various amounts of legal fees mentioned in para 12 above in favour of TSEWA –AFT and dispatch your documents (hard copy) to the following address till we are able to find an All India Coordinator :-

Col Dr GB Sethi (Rtd) General Secretary, TSEWA 143, Vayupuri Park Link Road, Near 2nd Cross Road Sainikpuri (PO) Secunderabad – 500094

17. All India Coordinator. Lt Col KP Radhakrishnan form Bengaluru volunteerd on my request to be All India Coordiantor. His e-mail id is : radhakrishnan_kp@yahoo.com and his mobile no is : 94483 50925and land line no is 080-25830710 18.

Lead Petitioner.As per the requirement of AFT Delhi, one of the petitioners has to be a lead litigant in whose name the case is to be filed. For example Hvl AB Singh and 102 others Vs Union of India. He is to have a Delhi NCR address.

19. Humble Request.I humbly request petitioners to kindly take up the job of Lead petitioner. You have to attend AFT Delhi along with our advocate when the case comes up for hearing All expenditure you incur for postage or travel or telephone charges etc will be fully reimbursed. Unless we get a Lead petitioner, TSEWA may not be able to file the case. All of us will continue to suffer till eternity. I can assure the amount of goodwill you will get after the case is filed and when we win the case cannot measured by any amount of money.

20. Govt of India letter dated 05 Sep 2017 shows how you have been taken for right royal ride. Unless you wake up from deep slumber and fight for your right, you will continue to suffer financially.

21. Filing of Case in AFT Delhi. It may please be understood the legal fees is deliberately kept so low to make it affordable. We need to get 100 petitioners for this case to be economically viable. Do not therefore keep pestering us asking us to when we will file the case. It may take three months as lot of hard work goes in collecting legal documents, preparing legal brief and memo of parties, checking documents at five stages right from the time we receive the documents to filing them in AFT, Delhi.

22. Responsibilty of TSEWA. Our responsibility is limited to get you the judgment. Thereafter petitioners have to take up a case individually with their service HQ through Record Offices to get their dues. However TSEWA will render all possible help to get Corr PP enhancing your pension as on Jan 2016 but that be treated as bonus.

23. Instant Result. Some JCOs and ORs want the case to be filed tomorrow and get the judgment day after tomorrow. The advocates do not argue our case free. Unless we pay them decent sum, they will not take up our case. You cannot get judgment at Rs 1,000 to Rs 3000 and in a jiffy. So do not join our case if you want judgment on your lap like Maggie noodles in 2 mins.

Warm regards,
Brig CS Vidyasagar (Rtd)
President, TSEWA
11 Oct 2017

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