Defence Pension has evolved a period of time upto VI CPC

Grant of Defence Pension and related benefits has evolved over the years towards liberalized pension system. It has been the endeavour of the Government of India to broaden the pension base and address the anomalies arising from implementation of different Pay Commissions and reduce the gaps. How Defence Pension has evolved over a period of time upto Sixth CPC is given below for information.

After implementation of New Pension Code from 1.6.1953, pension to Armed Forces pensioners was granted with reference to rank last held for 24 months preceding retirement. This was subsequently reduced to 10 months or average of last 10 months with effect from 1.4.1979 and as per latest orders, pension is straightway granted as 50% of emoluments last drawn or average of last ten month emoluments, whichever is beneficial.

Scheme for Death cum Retirement Gratuity was introduced for Armed Forces personnel with effect from 10.9.1970. Full dearness relief was also considered as reckonable emoluments for computation of Gratuity with effect from 1.1.1996 subject to maximum ceiling laid down from time to time.

With effect from 1.1.1973, a regular scheme for grant of relief on pension / family pension was introduced for compensating pensioners towards erosion in the real value of pension due to increase in price. Initially this was not applicable to re-employed pensioners which has been subsequently allowed with effect from 18.7.1997 subject to fulfillment of certain conditions.

With effect from 1.1.1972, a scheme for payment of monetary allowances attached to various Gallantry decorations was introduced.

With effect from 1.4.1985, the concept of restoration of commuted portion of pension was introduced, laying down that commuted portion of pension will be restored after 15 years.
The concept of War Injury Pension / Liberalized family pension was introduced with effect from 1.2.1972 to all war injured / deceased personnel who were/are invalidated out of service/die in an international war/war like operations/Border skirmishes since 1947-48. The cap on maximum war injury pension i.e not to exceed emoluments last drawn has also been removed with effect from 1.7.2009.

A concept of broad banding of percentage of disability was introduced for those Armed Forces Personnel who were invalidated out of service on or after 1.1.1996. The benefit is now extended with effect from 1.7.2009 to all pre-1996 invalidated out personnel, who are in receipt of pension.

A scheme for payment of lump sum ex-gratia has been introduced with effect from 1.8.1997 for the families of Armed Forces Personnel who died in harness in performance of actual bonafide official duty.

Scheme for Ordinary family pension was introduced in 1964. Benefit of this scheme was extended to all pre-1964 cases with effect from 22.9.1977 onwards. Subsequently, handicapped children, parents, widowed/divorced/unmarried daughters are covered under this scheme and allowed pension without any maximum age limit subject to certain conditions.

With effect from 1.1.2006, a provision for grant of additional pension to aged pensioners of 80 years of age and above has been introduced for all pensioners /family pensioners.

From 1.12.1997, a scheme for payment of fixed medical allowance @Rs.100/-pm to Armed Forces pensioners/family pensioners was introduced. With effect from 1.4.2003, another scheme named 'Ex-servicemen Contributory Health Scheme' was introduced. Later on, War widows/war disabled and all pre-1996 retirees were allowed to become member of this scheme without making any contribution.