No.
17(01)/2017/(02)ID(Pension/Policy)
Government of India
Ministry of Defence
Department of
Ex-Servicemen Welfare
New Delhi.
Dated 5thSeptember,
2017
To
The Chief of the Army
Staff
The Chief of the Naval
Staff
The Chief of the Air
Staff
Subject- Implementation
of Government's decision on the recommendations of the 7th Central Pay
Commission (CPC) - Revision of pension of pre-1.1. 2016 Defence Forces
pensionersl family pensioners etc.
Sir,
The undersigned is
directed to say that the Seventh Central Pay Commission (7th CPC), in its
Report, recommended two formulations for revision of pension of pre-2016 Armed
Forces pensioners.
A Resolution No 17(1
)/2014/D(Pension/Policy)dated 30.9.2016 was issued by this Ministry indicating
the decisions taken by the Government on the various recommendations of the ih
cpe on pensionary matters.
2. Based on the
decisions taken by the Government on the recommendationsof the ih CPC, orders
for revision of pension in respect of pre-1.1.2016 Armed Forces pensioners/
family pensioners in accordance with second formulation were issued vide this
Ministry's letter No 17(01 )/2016-D(Pen/Pol) dated 29.10.2016 and modified vide
letter No 17(01 )/2017(01)/ D(pen/Pol) dated 4th September 2017 for
revision of Pension/
Family pension. It was provided in the letter dated 29.10.2016 that the revised
pension/ family pension with effect from 1.1.2016 in respect of pre- 1.1.2016
Armed Forces pensioners/ family pensioners shall be. determined by multiplying
the pension/ family pension as had been drawn on 31.12.2015 by the factor of
2.57.
3. In accordance with
the decisions mentioned in this Ministry's Resolution No 17(1)/2014/D(Pension/Pol)
dated 30.9.2016 and letter No 17(01)/2016-D(Pen/ POL) dated 29.10.2016, the
feasibility of the first formulation recommended by the I CPC has been examined
by the Committee headed by Secretary, Department of Pension & Pensioners'
Welfare.
4. The aforesaid
Committee has submitted its report and the recommendations made by the
Committee have been considered by the Government. Accordingly, it has been
decided that revised pension/ family pension of all Armed Forces Personnel who
retired/ died prior to 1.1.2016, shall be revised by notionally fixing their
pay in the pay matrix recommended by the 7th CPC in the level corresponding to
the pay in the pay scale/ pay band and grade pay at which they retired/ died. This
will be done by notional pay fixation under each intervening Pay Commission based
on the formula for revision of pay. The revised rates of Military Service Pay, Non
Practicing Allowance, where applicable, and 'X' Group pay & Classification Allowance
for JCO/ORs, if applicable, notified in terms of 7th CPC orders, shall added to
the amount of pay notionally arrived at under the ih CPC pay
-2-
matrix and shall be
termed as notional reckonable emolument as on 1.1.2016. While fixing pay on
notional basis, the pay fixation formulae, approved by the Government and other
relevant instructions on the subject in force at the relevant time, shall be
strictly followed. Calculation of Pensionary benefits under first formulation
5. Subject to Para 9,
the rates of revised pension/ family pension in terms of these orders shall be
determined as follows :-
5.1 The revised
Retiring/ Service/ Special/ Invalid/ Ordinary/ Mustering out Pension, Service
element of Disability/ Liberalised Disability/ War Injury Pension shall be 50%
of the notional reckonable emoluments arrived at as per Para 4 above.
5.2 The revised
Disability element/Liberalized disability element of Disability/ Liberalized
Disability Pension shall be 30% of the notional reckonable emoluments arrived
at as per Para 4 above. The revised War Injury element of War Injury Pension
shall be 60% and 100% of the notional reckonable emoluments arrived at as per
Para 4 above in cases of release and invalided out cases respectively. The rates
so determined shall be for 100% disability and shall be reduced pro-rata subject
to degree of disability accepted and for the period notified in the PPO.
Note - The aggregate of
service element and liberalized disability element shall not be less than 80%
of the notional reckonable emoluments.
5.3 Where an Armed
Forces personnel was discharged/ retired under the circumstances mentioned in
Para 4.1 of this Ministry's letter No 1(2)/97/D(Pen-C) dated 31.1.2001 with
disability including cases covered under this Ministry's letter No
16(5)/200S/D(Pen/Policy) dated 29.9.2009 & dated 19.5.2017 and the disability/war
injury had already been accepted as 20% or more, the extent of disability or
functional incapacity shall now be determined in the manner prescribed in Para
7.2 of said letter dated 31.1.2001 for the purpose of computing disability/ war
injury element with effect from 1.1.2016. Rates for calculation of disability
where composite assessment is made due to existence of disability, as well as
war injury, shall be determined in terms of provision contained in Para 3(b) of
Ministry's letter No. 16(02)/2015-D(Pen/Pol) dated 8th August 2016.
5.4 The revised
enhanced rate and normal rate of Ordinary Family pension shall be 50% and 30%
respectively, of the notional reckonable emoluments arrived at as per Para 4
above for the applicable period of grant.
5.5 The revised Special
Family pension shall be 60% of the notional reckonable emoluments arrived at as
per Para 4 above for the applicable period of grant.
5.6 The revised
Liberalized Family pension shall be equal to the notional reckonable emoluments
arrived at as per Para 4 above for the applicable period of grant.
5.7 For child/children
of Armed Forces personnel in receipt of Liberalized Family pension, the revised
Liberalized Family pension shall be 60% of the notional reckonable emoluments
arrived at as per Para 4 above for the applicable period of grant.
5.8 The revised Dependent
Pension (Special) shall be 50% of notional Special Family pension arrived at in
terms of provisions as at Para 5.5 above. The Liberalized Dependent
Pension (Liberalized) shall be 75% (in case both parents are alive) and 60% (in
case of single parent/dependent brother/sister) of notional Liberalized Family
pension arrived at in terms of provisions as at Para 5.6 above.
5.9 The revised Second
Life award of Special Family pension in case of JCO/OR including NCs(E) shall
be 50% of notional Special Family pension arrived at in terms of provisions as
at Para 5.5 above. The revised Second Life award of Liberalized Family pension
in case of JCO/ORs including NCs(E) shall be 60% of notional Liberalized Family
pension arrived at in terms of provisions as at Para 5.6 above.
Note -1 : The amount of
revised pension/family pension arrived at in terms of this para, shall be
rounded off to the next higher rupee.
Note - 2: In cases
where the family pension has been divided amongst more than one beneficiary,
the revised family pension for beneficiaries al/ together shall not exceed the
applicable rate of family pension indicated above.
6. It has also been
decided that higher of the two formulations i.e. the pension/ family pension
already revised in accordance with this Ministry's letter No 17(01)/2016- O(pen/Pol)
dated 29.10.2016 and modified vide letter No 17(01)/2017(01 )/D(Pen/Policy) dated
4th September 2017 or the revised pension/ family pension as worked out in accordance
with Para 5 above, shall be granted to pre-1.1.2016 Armed Forces pensioners as
revised pension/ family pension with effect from 1.1.2016. In cases where pension/
family pension being paid with effect from 1.1.2016 in accordance with this Ministry's
letter No. 17(01)/2016-0(Pen/Pol) dated 29.10.2016 happens to be more than pension/family
pension as worked out in accordance with Para 5 above, the pension/ family
pension already being paid shall be treated as revised pension/ family pension with
effect from 1.1.2016.
7. Instructions were
issued vide this Ministry's letter No. 1(3)/98/0(Pen/ Ser) dated 27.5.1998 for
revision of pension/ family pension in respect of Commissioned Officers who
retired or died prior to 1.1.1986, by notional fixation of their pay in the
scale of pay introduced with effect from 1.1.1986. The notional pay so worked
out' as on 1.1.1986 was treated as average emoluments/ last pay for the purpose
of calculation of notional pension/ family pension as on 1.1.1986. The notional
pension/ family pension so arrived at was further revised with effect from
1.1.1996 and was paid in accordance with the instructions issued for revision
of pension/ family pension in implementation of the recommendations of the 5th
CPC. However, in the case of Pre-1.1.1986 JCOs/ORs, no such notional fixation
of pay was prescribed and revision of their pension was based on pension tables
provided in this Ministry's letter No 1(2)/98/D(Pen/Ser) dated 14.7.1998.
8. Accordingly, for the
purpose of calculation of notional pay with effect from 1.1.2016 of those
Commissioned Officers who retired or died before 1.1.1986, the pay scale and
the notional pay as on 1.1.1986, as arrived at in terms of the instructions issued
vide this Ministry's letter No. 1(3)/98/0(Pen/ Ser) dated 27.5.1998, shall be treated
as the pay scale and the pay of the concerned Commissioned Officer as on 1.1.1986.
In the case of those Commissioned Officers who retired or died on or after 1.1.1986
but before 1.1.2016, including all pre-1.1.2016 JCOs/ORs, the actual pay and the
pay scale from which they retired or died would be taken into consideration for
the purpose of calculation of the notional pay as on 1.1.2016 in accordance
with Para 4 above.
-3-
9. The ceiling of
minimum and maximum pension from 1.1.2016, prescribed under Para 5.4 of this
Ministry's letter No 17(01)/2016-D(Pen/Pol) dated 29.10.2016 and further
clarified vide Para 6 of letter No 17(01)/2017(01 )/D(Pen/Pol) dated 4th
September 2017 shall continue to be applied on the revised pension/ family
pension determined under this order.
10. The pension/ family pension as worked
out in accordance with provisions of Para 5 and 6 above shall be treated as
'Basic Pension' with effect from 1.1.2016. The revised pension/ family pension
includes dearness relief sanctioned from 1.1.2016 and shall qualify for grant
of Dearness Relief sanctioned thereafter.
11. The existing
instructions regarding regulation of dearness relief to employed/ reemployed pensioners/
family pensioners, as contained in this Ministry's letter No 7(1)/95/D(Pen/Services)
dated 28.8.2000 and Department of Pension & Pensioners Welfare OM No
45/73/97 -P&PW(G) dated 2.7.1999, as amended from time to time, shall
continue to apply.
12. The pension of the
pensioners who are drawing monthly pension from the Defence Forces on permanent
absorption in Public Sector Undertakings/ Autonomous Bodies shall also be
revised in accordance with these orders. However, separate orders will be
issued for revision of pension of those pensioners who had earlier drawn one time
lump sum terminal benefits on absorption in Public Sector Undertakings etc.,
and are drawing 43% / 45% restored pension in case of Commissioned Officers and
JCOs/ORs respectively as per the instructions issued by this Ministry from time
to time.
13. In cases where, on
permanent absorption in Public Sector Undertakings/ Autonomous Bodies, the
terms of absorption and/ or the rules permit grant of family pension under the
orders issued by this Ministry, the family pension being drawn by the family
pensioners or already sanctioned in her favour shall also be updated inaccordance
with these orders.
14. The quantum of
age-related pension/family pension available to the old pensioners/ family
pensioners shall continue to be as follows:-
Age of pensioner/family pensioner
Additional quantum of pension
From 80 years to less
than 85 years 20% of revised basic pension/ family pension
From 85 years to less
than 90 years 30% of revised basic pension /family pension
From 90 years to less
than 95 years 40% of revised basic pension /family pension
From 95 years to less
than 100 years 50% of revised basic pension /family pension
100 years or more 100%
of revised basic pension /family pension
The amount of
additional pension shall be shown distinctly in the pension paymentorder. For
example, in case, where a pensioner is more than 80 years of age and his/her
revised pension is Rs10,000 pm, the pension shall be shown as (i) Basic pension
=Rs.IO,OOOand (ii) Additional pension = Rs 2,000 pm. The pension on his/ her
attainingthe age of 85 years shall be shown as (i) Basic Pension = Rs 10,000
and (ii) additionalpension = Rs.3,000 pm. Dearness Relief will be admissible on the
additional pensionavailable to the old pensioners also.
Note:- The additional
pension/ family pension available to pensioners of 80 years of age and above shall be
applicable in the case of disability! war injury element! Liberalized Disability
element of disability !Iiberalized Disability! War Injury Pension also.
15. A few examples of
calculation of pension!family pension in the manner prescribed above are given
in Annexure-I to this letter.
MISCELLANEOUS
INSTRUCTIONS
16. No arrears on
account of revision of Pension! Family pension on notional fixation of pay
shall be admissible for the period prior to 1.1.2016. The arrears on account of
revision of pension! family pension in terms of these orders would be
admissible with effect from 1.1.2016. For calculation of arrears becoming due
on the revision of pension! family pension on the basis of this letter, the
arrears of pension and the revised pension! family pension already paid on
revision of pension! family pension in accordance with the instructions
contained in this Ministry's letter No 17(01)!2016-D(Pen!Pol) dated 29.10.2016
shall be adjusted. Any overpayment of pension coming to the notice or under
process of recovery shall be adjusted in full by the Pension Disbursing
Agencies against arrears becoming due on revision of pension on the basis of
these orders. In case of a pensioner to whom the benefit accrues under the
provisions of this letter has died!dies before receiving the payment of
arrears, the Life Time Arrears of pension (LTA) shall also be paid as per
extant orders.
17. No commutation of
pension will be admissible on amount of pension accruing as a result of
revision of pension under these orders. However, the existing amount of pension,
if any, that has been commuted will continue to be deducted from the revised pension
while making disbursement till the applicable period of deduction. Notional fixation
of pay in terms of these orders will also not affect the entitlement of retirement
gratuity already determined and paid with reference to rules in force at the
time of discharge! invalidmentldeath.
18. It shall be the
responsibility of the concerned Record Offices and attached Pay Account Offices
in case of JCOs! ORs of the three Services and ,PCDA(O) Pune! AFCAO New Delhi!
Naval Pay Office, Mumbai in case of Commissioned Officers of Army! Air Force!
Navy to initiate cases for revision of pension! family pension of pre- 1.1.2016
pensioners! family pensioner with effect from 1.1.2016 in accordance with these
orders for issue of revised Pension Payment Order (PPO) for every pensioner! family
pensioner. The Pension Sanctioning Authority would impress upon the concerned Record
Office! PCDA(O) Pune ! AFCAO New Delhi ! Naval Pay Office, Mumbai for fixation
of pay on notional basis based on extant orders and will issue revised Pension Payment
Authority at the earliest. Detailed instructions for initiation of revision
cases shall be issued by PCDA(P) Allahabad to all concerned immediately after
issue of this order. The revised PPO shall be issued by the Pension Sanctioning
Authorities directly to concerned Pension Disbursing Authority for effecting
prompt payments as a special measure. The remaining copies of PPOs shall be
dispatched by PSAs in usual manner.
19. These orders shall
apply to all Pre-1.1.2016 Armed Forces pensioners! Family pensioners drawing
pension! family pension under the corresponding Pension Regulations and various
Government orders issued from time to time. A pensioner! family pensioner, who
became entitled to pension! family pension with effect from 1.1.2016 consequent
upon retirementldeath of Armed Forces personnel on 31.12.2015, would also be
covered by these orders. These orders shall, however, do not apply to UKlHKSRA
pensioners, Pakistan & Burma Army pensioners and pensioners in receipt of
monthly Ex-gratia payments.
20. This issues with
the concurrence of Ministry of Defence (Fin/Pension) vide their Part file (1)
to (30)(01)/2016/Fin/Pen dated 14thAugust 2017.
21. Hindi version will
follow.
Yours faiIthfully
(Manoj Sinha)
Under Secretary to the
Government of India
Copy to:
As per Standard List.
ANNEXURE-I
EXAMPLES: (JCOs/ORs)
(Reference - Para 15 of
MoD letter No 17(01)/2017(02)/D(Pen/Policy) dated s" September 2017)
No. Description
1"
Case 2nd Case 3'd Case 4th Case
1. Rank Naik Hav Nb Sub Subedar
2. Group 'c’
'D' 'y'
'y'
3. Date of Retirement 31.12.1984 31.01.1989 30.06.1999 30.09.2013
(3rdCPC) (4thCPC) (5th CPC) (6th CPC)
4. Qualifying Service 20 18.5 26 30
5. Scale of Pay 980-20-1140 1050-25-1300- 5620-140-8140
930034800
(or Pay Band & G.P) 25-1315 30-1450
GP- 4600
at the time of retirement MSP-
2000
OR Notional pay
scale as on
1.1.1986 for those retired
before 1.1.1986.
6. Pay on retirement OR 1140+40 (CA) 1175+30 (CA) 6320 15030 (BP)
Notional pay as on 1.1.1986 =1205 4600 (GP)
for those retired
before 1.1.1986 2000
(MSP)
21630
7. Pension as on 01.01.2016 7170 7693 10405 12690
before revision
8. Family pension as on 4302 4616 6243 7614
01.01.2016 before revision
9. Family pension at enhanced NA NA NA 12690
rate as on 01.01.2016
before revision (if applicable) ,
10. Revised pension by
multiplying pre-revised 18427 19772 26741 32614
pension by 2.57
11. Revised family pension by
multiplying pre-revised 11057 11864 16045 19568
family pension by 2.57
12. Revised family pension at
enhanced rate by multiplying NA NA NA
32614
pre-revised enhanced family
pension by 2.57
13. Pay fixed on notional basis 3500+80 (CA) 3680+80 (CA) NA NA
on 1.1.1996 (3150-70- 4200) (3600-85-4875
)
14. Pay fixed on notional basis 3510+100(CA) 3700+100(CA) NA NA
on 10.10.1997 (3425-85- (3600-100-5100)
4700)
15. Pay fixed on notional basis 6840 (BP) 7050 (BP) 11760 (BP) NA
on 1.1.2006 2400
(GP) 2800 (GP) 4200(GP)
2000 (MSP) 2000 (MSP) + 2000 (M5P)
+ 200 (CA) 12050
17960
11440 (PB-I,
GP-2800) (PB-II, GP- 4200)
(PB-I, GP-2400)
16. Pay fixed on notional basis 25500 29200 41100 50500
on 1.1.2016 +5200
+5200 +5200 +5200
30700 34400 46300 55700
(Level- 4) (Level-
5) (Level-
6) (Level-
7)
17. Revised pension w.eJ. 1.1.2016
as per first formulation. 15350 17200 23150 27850
18. Revised family pension
w.eJ. 1.1.2016 as per first 9200 10320 13890 16710
formulation.
19. Revised family pension at
enhanced rate w.eJ. 1.1.2016 NA NA NA 27850
as per first formulation.
20. Revised pension payable
(Higher of Sl,No. 10
and 17) 18427 19772 26741 32614
21. Revised family pension
payable (Higher of Sl.No. 11 11057 11864 16045 19568
and 18)
22. Revised family pension at
enhanced rate payable NA NA NA 32614
(Higher of 51.No. 12 and 19)
Exp:56%
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