Limitation of PCDA Circular No 547 - BY Brig CS Vidyasagar (Retd)

Indian Military Veterans

Dear Sir,

1. I have put in red colour important aspect of pension fixation as given in para 3 of Circular 547 of PCDA(Pensions) Allahabad. Even for JCOs and OR the pension fixation now being adopted as per Circular 547 is fixing notional pay in 6th CPC corresponding to the pre-revised scale from which the pensioner has retired in 5th CPC scale of pay. Then arrive at pension which is 50% of notional pay. This clearly tells no two Havildars of say 24 total years’ service will get the same pension as it depends upon how many increments these Havs drew in the rank of Hav. The Hav who got his promotion earlier and drew more increments will draw higher last drawn emoluments and hence higher pension.

2. Method of Pension Fixation. The method of pension fixation adopted so far for JCOs and OR is based on three parameters (a) Rank (b) Group X or Y and (c) No of years of total service. All Havs of Group X or Y with say 24 years’ service used to get the same pension.
But the method now adopted by Min of Def (ESW) vide their letter No: 1(04)/2015(II)D(Pen/Pol) dated 03 Sep 2015 which is reproduced in Circular 547 is to change it to fixing notional pay in revised scale of pay i.e. 6th CPC corresponding to pre revised scale of pay i.e. 5th CPC at the time of retirement of JCO & OR. Now you will realise all Havs of same service in the same group will not get the same pension. That Hav who has earned more increments in the rank of Hav and who has drawn more pay in service will get higher pension on his retirement.

3. Let us analyse fitment table for JCOs and OR as given in SAI 1/S/2008. We will take the case of Hav as nowadays all post – 2006 Sepoys retire with pay and pension of Hav due to Assured Career Progression (ACP i.e after 8 years Sep gets pay of Nk and after 16 years he gets pay of Hav and retires with pension of Hav).

Extract of Circular 547 of PCDA(Pensions) Allahabad

Para 3. After issue of GOI, Ministry of Personnel, PG & Pensioners, Department of
Pension & Pensioners’ Welfare letter No. 38/37/08-P & PW (A) dated 30.07.2015, it has
been decided that with effect from 01.01.2006 pension/family pension of Pre-2006
JCOs/ORs pensioners/Family pensioners shall be determined as fifty and thirty percent
respectively of the minimum of the fitment table for the Rank in the revised Pay
Band as indicated under fitment tables annexed with 1/S/2008 as amended and
equivalent instructions for Navy and Air Force, plus Grade Pay corresponding to the
pre-revised scale from which the pensioner had retired/discharged/invalided out/died including Military Service Pay and X group pay.

4. So far Circular 501 which fixed pensions of pre – 2006 JCOs and OR as per the number of years of total service, group and rank. The number of increments earned in the last rank i.e. Hav was not taken into consideration. So two Havs of same Group Y with total service of 24 years used to get Rs 7,375 per month as pension. The number of increments earned by him in his last rank have no bearing on his pension.

5. But with Circular 547, this has been replaced by what was his scale of pay in 5th CPC and his pension is fixed by taking notional pay in 6th CPC corresponding to his pre – revised pay i.e. 5th CPC pay and then his pension is fixed at 50% of that total notional pay in 6th CPC.

6. For example as per SAI 1/S/2008, if a Hav was drawing a pay of say Rs 4,000 in 5th CPC, then his notional pay in 6th CPC is Rs 12,290 and his pension is Rs 6,145. Whereas the Circular 501 which fixes pension so far for pre – 2006 Havs has higher. So with Circular 547 JCOs and OR will now get less pension.

7. Since method of pension fixation has undergone a sea change it is not easy to find out how much is loss in pension. You have to see PPO of Hav and then find out what is his pension firstly by notional pay fixation corresponding to his basis pay in pre- revised (5th CPC) scale and then see the total pay in 6th CPC and then half it to get the pension.

Regards,
Brig CS Vidyasagar (Retd)
9493191380