Thursday, November 25, 2010

Computation of pension -Post-2006 JCOs and below

Computation of pension -Post-2006 JCOs and below

No.17 (40/08/(2)/D(Pen/Policy)
Government of India
Ministry of Defence
Department of Ex-Servicemen Welfare
New Delhi, Dated 18.08.10
To
The Chief of the Army Staff
The Chief of the Naval Staff
The Chief of the Air Staff

Subject: Implementation of the Government decision on the recommendations of the 
Sixth Central Pay Commission - Pension of Personal Below Officer Rank 
( PBOR) discharged from service on or after 1.1.2006.

Sir,
The undersigned is directed to state that in terms of Para 5.1.3 of this Ministry's letter No. 17(4)/2008(2)/D(Pen/Policy) dated 12.11.2008 issued in implementation of the decision taken on the recommendation of the Sixth Central Pay Commission, the benefit of adding year of qualifying service for the purpose of computation of pension has been withdrawn in respect of PBOR discharged/invalided out from service with effect from 1.1.2006. The Ex-Servicemen Association have been demanding restoration of weightage in qualifying service in respect of PBOR admissible to them prior to 1.1.2006 till the recommendation of the 6th
CPC vide Chapter 2.4 of its Report regarding Lateral movement of Defence Forces personal to CPOs/Defence Civilian organization, are implemented by the Government. It has also been apprehended by the Service HQrs that in certain cases, Post - 1.1.2006 discharged/invalided out PBOR may draw less pension then their Pre - 1.1.2006 counterparts.

2. The above issues have been under consideration of the Government and the President is now pleased to decide that with effect from 1.1.2006 Service pension for all ranks of post - 1.1.2006 POBR retirees in Army, Navy and Air Force (including DSC and TA) determined under the provisions contained in para 6.2 of this Ministry's above said letter dated 12.11.2008 shall in no case be less then 50% of the notional pay in the post - 1.1.2006 revised pay structure corresponding to the maximum of Fifth
CPC pay scales including whole of classification allowance last drawn in the rank and group held at the time of discharge/invaliding. The amount so determined will be the pension for 33 year of reckonable qualifying service including rank weightage (except TA personnel) as admissible under the Ministry's letter No. 1(6)/98/D(Pension/Services) dated 3.2.1998 and enhanced vide Ministry's letter No. 14(3)/2008/D(Pen/Sers)/Vol.III dated 1.2.2006. For lesser period of reckonable qualifying service, this amount will be proportionately reduced. The amount of pension finally arrived at will be subject to a minimum of Rs. 3,500/- per month.

3. Following will be taken into account per Para 2 above:-
(i) The notional pay in the revised pay structure corresponding to the maximum of the pay scales of the rank and group held at the time of discharged/invalidment, will be determined as per the fitment tables attached to
SAI 1/S/2008 and corresponding as pay in the Navy & Air Force, for each rank and group and will consist of pay in the pay band plus Grade pay plus 'X' Group pay (where applicable) plus Military Service pay plus whole of the classification allowance last drawn, where admissible;
(ii) Since common pay class scales under revised pay structure have been introduced for PBOR of the three Services, the highest of such maximum for rank and group in which discharged/invalided out, will be reckoned across the three Services for computation of pension;
(iii) In addition to service pension determined as per Para 3(i) & (ii) above,
Havildars who are granted honorary rank of Naib Subedars on retirement, will also be allowed additional pension equal to the amount of per-revised rate of additional pension as consolidated under fitment formula prescribed vide Para 4.1 of this Ministry's letter No.
17(4)/2008/(1)/D(Pen/Policy) dated' 11.11.2008;
(iv) National pay in the revised pay structure in respect of PBOR granted pay
of higher rank Assured Career Progression Scheme (ACPS)/ Modified Assured Career Progression Scheme (MACPS) will be determined with reference to the rank which ACPS/MACPS has been granted and the pay drawn at the time of discharged/invaildment.
(v) The service pension under there order will be determined an the basis of the rank/group last held by the individual and the pre-revised/revised pay scales connected thereto, even if the rank/group was held for less than 10 months before discharged/invalidment.

4. The service pension in respect of PBOR who have already got discharged/invalidment out on or after 01.01.2006 and in whose case pensionary benefits have already been notified under the provision contained in Para 6.2 of Ministry's letter dated 12.11.2008, the pension Sanotioning Authorities (PSAs) concerned will recalculated pension in terms of these orders and will suo-moto issue corrigendum PPOs if the recalculated pension in terms of these order, are found benefits. Further implementation instructions to all concerned will be issued by PCDA (Pension),
Allahabad on receipt of these order.
5. These order take effect from 1.1.2006.
6. This issues with the concurrence of finance Division of this Ministry vide their U.O.No.2518/Fin/Pen dated 16.08.10.
Hindi version will follow.


Yours faithfully,

Sd/-
Malathi Narayanan
Under Secretary (Pen/Pol)
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