Commissioned Officers in Defence Services - Pension related information

Brief on Pension related information for Commissioned officers in India Defence Services – Retiring Pension, Retirement Gratuity, Disability Pension, Commutation etc

Retiring Pension

Definition of Pension

Pension shall include gratuity except when the term pension is used in contradistinction to gratuity but does not include dearness relief.

Authy: Based on Rule 3(O) of C.C.S (P) Rules & DP & P.W. notification no.42 (30) P&PW/89/E dt. 22.1.91

Grant of Pension is Subject to Good Conduct

Future good conduct shall be an implied condition for every kind of grant of pension.

Retiring Pension

The minimum qualifying service required to earn retiring pension in case of permanent regular commission officer is 20 Years and 15 Years in the case of late entrants and in respect of EC/S.S.C. officers granted commission from ranks is 12 years (including rank service).

Authy: Govt. of India MOD letter no. 17(4)/2008(2)/D(Pen/Pol) dt. 12.11.2008

Definition of Late Entrants

A late entrant is an officer who is retired on reaching the prescribed age limit for compulsory retirement with at least 15 Years service qualifying for pension but whose actual qualifying service is less than 20 Years.

Authy: Rule 15 P.R.A. modified.

Qualifying Service for Pension

The minimum period of qualifying service for earning retiring pension shall be 20 years (15 years in the case of late entrants).

Linkage of full pension with 33 years of qualifying service has been dispensed with w.e.f 01/01/2006.

A fraction of a year equal to 3 months and above but less than 6 months shall be treated as a completed ½ year. Similarly, nine months or more but less than one year shall be treated as a competed one year and reckoned as qualifying service.

This shall, however, not be applicable for completing minimum qualifying service for pensionary award.

Periods of Service Qualifying Service for Pension

1. Service as a permanent regular Commissioned Officer

2. Service rendered before attaining the age of 17 years.

3. Embodied or called out service as an officer of TA or Auxiliary Air Force subject to refund of gratuity, if any.

4. Service in the rank if followed by permanent regular Commissioned service without a break subject to refund of gratuity, if any.

5. All leave including study leave with pay.

6. Period of suspension from duty when the officer is not brought on trial or court martial with result favour-able to the officer.

7. Service under an Office /Department/Ministry of the Central Government.

8. Any period of Civil service under Central Government. if followed by military service subject to refund of gratuity, if any.

9. Service rendered in the autonomous bodies

10. The period of ante-date of commission and the period of Secondment subject to the following maxima:-

Ante-date of commission –18 months
Secondment -12 months
when both ante- date and Secondment granted – 24 months

11. Service rendered in aid of civil administration.

Reckonable Emoluments for Retiring Pension

The reckonable emoluments for retiring pension shall comprise of pay in pay band,grade pay, military service pay and NPA, if any, last drawn.

Calculation of Retiring Pension

The retiring pension of commissioned officers retiring / invalided out on or after 1.1.06 is calculated at 50% of emoluments last drawn or average of reckonable emoluments drawn during last 10 months, whichever is more beneficial.

Minimum Pension

W.E.F.1-1-2006, minimum retiring pension is Rs. 3500/- PM

Maximum Pension

W.E.F 1.1.06, Maximum Retiring pension is Rs. 45000/- P.M. For example a General getting Rs. 90000/- pay will be entitled for Rs. 45000/- P.M. pension.

Retirement Gratuity

An officer who has completed 5 years qualifying service (actual) and is eligible for retiring /invalid/ special pension or gratuity of any type will be granted retirement gratuity equal to ¼th of the reckonable emoluments for each completed six monthly period of qualifying service subject to the maximum of 16 ½ times of the Reckonable emoluments which will be restricted to Rs. 10 lakhs.

The term “reckonable emoluments “ include pay in pay band, grade pay, military service pay, NPA, if any , plus dearness allowance admissible on the date of retirement / invalidment.

Retiring Pension to Permanent Absorbees

The officers who had drawn lump sum payment on absorption in a PSU/Autonomous body are entitled to restoration of @ 43% commuted portion of pension after 15 Years from the date of commutation or 1-4-85 which ever is later. Along with the restoration of pension all other attendant benefits as admissible to central Govt. pensioners are also admissible.

Note: The Dearness Relief is admissible on full pension from the date of restoration, instead of Dearness Relief on only the restored amount.

Authy: Min. of P.P Grievances & Pension, Dept. Of Pension and Pensioners Welfare No. 4/29/99/P&PW/D Dt. 12-7-2000.

Pension to EC/SSC Officers

Serving JCOs/Ors including corresponding ranks of the NAVY & AIR FORCE granted EC/SSC will be eligible for retiring pension after 12 years of qualifying service actually rendered.

Authy : Govt. of India, Min. of Defence letter no. 17(4)/2008(2)/D/(Pen/ Pol) dt. 12/11/2008.

Officers Cashiered, Dismissed, Removed or Called Upon to Retire

An officer, who has to his credit the minimum period of qualifying service required to earn a pension is cashiered or dismissed or removed from the service under the provisions of Army Act, his/her pension, may, at the discreation; of the President, be either forfeited or be granted pension/gratuity at the rate not exceeding that for which he/she would have otherwise qualified, had he/she been retired on the same date in the normal manner.

Authy : Regn. 16 (a) of PRA Part-I 1961 Edn.

Initiation of Pension Claim

C.D.A (O) Pune being nodal agency is responsible to collect various information/documents mentioned below and forward the same to the office of Principal C.D.A.(P), Allahabad, for grant of pension along with the documents as mentioned below including LPC (which is prepared by the C.D.A. (O)):-

Retirement notification issued by AHQ.
Certificate to the effect whether disciplinary case is pending against him or not issued from AHQrs.
Unit Part II orders showing the date of S.O.S.
Release Medical Examination Report / Release Medical Board Proceedings from AHQrs.
Family Details from the Army HQrs./ Officer.
Pension application showing the name of any nationalised bank with Bank A/C Number submitted by the officer.
Commutation application given by the officer.
Declaration for commutation
Nomination of LTA
Joint photograph duly attested submitted by officer.
L.P.C. Cum data sheet.
Full pay commissioned service certificate.
Outstanding demand, if any, or a no demand certificate.

Disability Pension

When an officer is invalidated out on account of a disability and the same is attributable to or aggravated by Military service and is assessed and accepted at 20% or more, he is granted Disability Pension.

Disability Pension consists of two elements viz. Service Element and Disability Element. Service element is equal to the retiring pension determined.

Disability Element for 100% disability for various rank is 30% of emoluments last drawn subject to minimum or Rs. 3510/- per month. For disability less than 100%, it shall be reduced proportionally.

Service Element

It is admissible equal to retiring pension as determined vide Para 6 of Govt. of India, Min. of Defence letter no. 17(4)/2008(2)/D(Pen/Pol) dt 12/11/2008 subject to minimum of Rs. 3500/- PM w.e.f 1-1-2006.

Disability Element

Existing rates of disability element are as under:Disability Element for 100% disability for various rank is 30% of emoluments last drawn subject to minimum or Rs. 3510/- PM. For disability less than 100%, it shall be reduced proportionally.

For determining the Pensionary benefits the circumstances to decide the attributability/ aggravation have been categorised as under :-

Category “A”

Death or disability due to natural causes neither attributable to nor aggravated by military service determined by competent medical authority, chronic ailments like heart and renal diseases, Prolonged illness, accident while not on duty.

Category “B”

Death or disability due to causes which are accepted as attributable to or aggravated by military service such as diseases contracted because of continued exposure to hostile work environment subject to extreme weather conditions or occupational hazards.

Category “C”

Death or disability due to accidents while performing duty, such as,

Accidents while travelling on duty in Government/public /private vehicles or during air journey or mishap at sea.
Electrocution while on duty.
Accidents during participation in organized sports events/ adventures activities/expeditions/ training

Category “D”

Death or disability due to acts of violence/attack by terrorist, anti-social elements, whether on duty or even when not on duty. Bomb blasts in public places or transport, indiscriminate shooting incidents in public, etc.would be covered under this category, besides death / disability occuring while employed in aid in civil power in dealing with natural calamities.

Category “E”

Death or disability arising as a result of :-

1. enemy action in international war, action during peace keeping mission abroad, border skirmishes.

2. during laying/clearance of mines including enemy mines as also mine sweeping operations

3. On account of accidental explosions of mines

4. War like situations, including cases which are attributable to / aggravated by:-

Extremist acts, exploding mines, etc while on way to operational area.
battle inoculation training exercises, or demonstration with live ammunition.
kidnapping by extremist while on operational duty.

5. An act of violence/attack by extremists and antisocial elements etc. while on operational duty.

6. Action against extremists, antisocial, element, etc Death / disability while employed in the aid of civil power in quelling agitation, riots or revolt by demonstrators will be covered under this category.

7. operations specially notified by Government from time to time.

Disability Pension on Invalidment

The amount of service element and disability element of disability pension in case of invalidment are determined as under:-

1. Service element – The amount of service element shall be equal to the retiring pension determined as per Para 6 of the MOD letter No. 17(4)/2008(2)/D(Pen/Pol) dt 12-11-2008 above.

There shall be no condition of minimum qualifying service for earning this element.

2. Disability element – The amount of disability element depends on the assessed degree of disablement by Invaliding Medical Board and rank of the officer. Disability lower than 100% shall be rounded with reference to percentage as laid down in clause (iii) below.

3. Provided that where permanent disability is not less than 60% the disability pension (i.e. service element plus Disability element) shall not be less than 60% of the reckonable emoluments last drawn.

Percentage of Disability as finally accepted	Percentage to be reckoned for computing of Disability Element
1 to 49	50
50 and 75	75
76 and 100	100

Note 1: Rounding off benefit is not admissible where disability is assessed at Nil percent by the Invaliding Medical Board.

Constant Attendance Allowance

Constant Attendance Allowance is sanctioned to an officer for 100% disablement, if in the opinion of IMB/RSMB subject to acceptance by the pension sanctioning authority; he needs the services of a Constant Attendant for at least a period of 3 months subject to the condition that the pensioner actually employs a paid attendant to look after him.

The Constant Attendance Allowance will not be payable for:

any period during which the pensioner was an inmate or inpatient of a Government institution or Hospital.
any period for which a constant and paid attendant was not actually employed to look after him
for the period of re-employment of the pensioner

Rate of Constant Attendance Allowance

Constant Attendance Allowance shall be admissible @ Rs. 3000/- p.m. irrespective of the rank w.e.f. 1.1.06. This rate be increased by 25% every time the dearness allowance payable on revised pay band goes up to 50%.

Lump-Sum Compensation in lieu of Disability Pension

In case a service officer is found to have a disability which is sustained under the circumstances mentioned in category ‘B’ and ‘C’ , and is assessed at 20% or above for life but is retained in service despite such disability, he shall be paid a compensation in lump sum (in lieu of disability element) equal to the capitalized value of disability element on the basis of disability actually assessed

Note: Provision of rounding off benefit shall not apply.

For the above purpose, the age next birth day will be reckoned with reference to the date of onset of disability with loading of age, if any, recommended by the Disability Compensation Medical Board.

Once compensation has been paid in lieu of disability element, there shall be no further entitlement to the disability element for the same disability. Such disability shall also not qualify for grant of any Pensionary benefits or relief subsequently.

The payment of compensation in lieu of disability element will be made through IRLA on the basis of payment authority issued by Pension Sanction Authority.

Invalid Pension

When on officer is invalided out of service on account of a disability which is neither attributable to nor aggravated by military service, he will be entitled to invalid pension, if service actually rendered is 10 years or more and invalid gratuity, if it is less than 10 years.

The amount of invalid pension will be equal to the service element of disability pension that would have been admissible in case the causes were attributable to or aggravated by military service. Ranks for assessment of qualifying service reckonable towards invalid pension will be the same as for assessment of retiring pension.

The invalid pension will be subject to the minimum of Rs. 3500/-PM w.e.f 1-1-06.

Invalid Gratuity

The amount of Invalid Gratuity shall be calculated at half a month’s Reckonable Emoluments i.e. pay in pay band, grade pay, Military service pay, NPA, if any, last drawn and dearness allowance, for each completed six monthly, period of qualifying service. The Maximum limit of Invalid Gratuity is Rs. 10 lac.

War Injury Pension on Invalidment

Where an officer is invalided out of service on account of disability sustained under circumstances mentioned in category “E” , he shall be entitled to War injury Pension consisting of Service Element and War Injury Element as follows :-

(i) Service Element- Equal to Retiring Pension determined as per Para 6 of Military letter No. 17(4)/2008(2)/D(Pen/Pol) dt 12/11/2008 subject to Min. of Rs. 3500/-PM. There shall be no condition of minimum qualifying service for earning this element.

(ii) War Injury Element- equal to reckonable emoluments last drawn for 100% disablement. For lower percentage of disablement, war injury element shall be reduced proportionality. The cap on War injury pension w.r.t. emoluments last drawn in case or disabled pensioners belonging to category E has been removed w.e.f 1-07-2009.

War Injury Pension on Retention in Service

An officer who is retained in service despite the disability due to war injury sustained under circumstances mentioned in category ‘E’ and retire subsequently shall have on option as follows.

(a) to draw lump sum compensation in lieu of war injury element foregoing war injury element at the time of subsequent retirement.

(b) to draw war injury element at the time of retirement in addition to retiring pension admissible on retirement, foregoing lump sum compensation.

The rate of war injury element for 100% disability on retirement / discharge from service shall be 30% of emolument last drawn subject to minimum of Rs. 3510/- PM for 100% disability. for disability less than 100% pension shall be reduced proportionally.

Lump-Sum Compensation in lieu of War Injury Pension

In case an officer is found to have a disability which is sustained under the circumstances mentioned in category E of Disability which is assessed at 20% or more for life but the officer is retained in service despite such disability and opts for lump sum compensation, he shall be paid the lump sum compensation in lieu of war injury element.

The rate of war injury element for 100% disability on retirement / discharge from service shall be 30% of emolument last drawn subject to minimum of Rs. 3510/- PM for 100% disability. For disability due to war injury less than 100%, the rates shall be proportionately reduced.

The one time compensation in lump sum in lieu of war injury element will be equal to the capitalized value of war injury element.

Age next birth day will be reckoned with reference to the date of onset of disability with loading to age, if any, recommended by the Competent Medical Board.

Once the compensation in lieu of war injury element due to disability for life has been paid, there shall be no further entitlement on account of such a disability at the time of retirement form Armed Forces. Since this is one time payment of compensation, no restoration will be permitted.

War Injury Element on Subsequent Retirement

Where an officer is retained in service despite injury/disability sustained under the circumstances mentioned in Category ‘E’ and does not opt for lump sum compensation in lieu of war injury, he shall be entitled to the payment of war injury element on a monthly basis at the rate prescribed in above Para above on subsequent retirement.

For disabilities less than 100 %, the above rate shall be proportionately reduced. No war injury shall be payable for disabilities less than 20 %.

Liberalised Disability Pension

An officer sustaining disability under the circumstances mentioned in category ‘D’ shall be entitled to same benefits as admissible to war injury cases on invalidment/ retirement including lump sum compensation. However, on invalidment, they shall be entitled to disability element instead of war injury element in addition to service element.

There shall be no condition of minimum qualifying service for earning this element.

The amount of service element is equal to retiring / service pension determined as per Para 6 of MOD letter No. 17(4)/2008(2)/D(Pen/Pol) dt 12-11-2008.

The rate of disability element for 100% disability for various rank is 30% of emolument last drawn subject to minimum of Rs. 3510/-. For disabilities less than 100 % the above rate shall be proportionately reduced.

Ex-gratia Award to Cadets (Direct in case of Disablement)

Ex- gratia awards (except service entry) in respect of Cadets in the event of disablement due to cause attributable to or aggravated by conditions of military training shall be admissible @ Rs. 3500/- p.m. with effect from 1.1.06 for life.

In addition, a disability award on ex-gratia basis shall also be admissible to the ex-cadets @ Rs. 6300/- p.m. with effect from 1.1.06 for 100% disability during the period of disability. The amount of disability award shall be proportionately reduced when the degree of disablement is less than 100% No disability award shall be payable whose degree of disablement is less than 20%.

Constant Attendance Allowance @ Rs. 3000/- p.m. with effect from 1.1.06 shall also be admissible.

Note: The benefit of monthly Ex gratia payment as mentioned above shall also be admissible to Pre 1.1.06 cases as well with financial effect from 1.9.08

Appeal

An officer may submit two appeals against rejection of disability pension. He may prefer first appeal to the Service HQrs (Director PS-4 ) within six months from the date on which decision on the entitlement is communicated to him.

The officer can make a second appeal within six months from the date of rejection of Service HQrs. The second appeal is considered by the Defence Ministry Appellate Committee headed by Raksha Mantri /Rajya Raksha Mantri.

Commutation of War injury Pension

50% of War injury pension is commutable provided disability is of permanent nature for life.

Liberalised Family Pension

In case of an officer under the circumstances mentioned in category ‘D’ or ‘E’ eligible members of the family shall be entitled to liberalised family pension equal to Reckonable emoluments last drawn.

Reckonable emoluments includes pay in pay band, grade pay, MSP and NPA, if any, last drawn.

Liberalised Family Pension shall be granted to the widow until death or disqualification. If the officer is not survived by the widow but is survived by child/ children only, all children together shall be eligible for Liberalised Family Pension at the rate equal to Special Family Pension. Liberalised Family Pension shall be payable to child/ children for the period during which they would have been eligible as in the case of Special Family Pension. It shall be paid to the senior most eligible child at a time. On his/her death/ disqualification, it will pass on to the next eligible child.

Liberalised Family Pension on Re-marriage of Widow

(i) If widow has children

(a) If she continues to support children after re-marriage

(b) If she does not support children after re-marriage

Full Liberalised Family Pension continue to widow

Ordinary family pension equal to 30% to widow

Special Family Pension @ 60% to eligible children.

(ii) If widow has no children

Full Liberalised Family Pension to continue to widow

Commutation of Pension

An officer is entitled to commute for a lump sum payment a fraction not exceeding 50% of his/her pension which is sanctioned for life.

Commutation of pension if applied after one year of retirement/invalidment is to be submitted through pension disbursing authority. In such cases, commutation is to be done after medical examination only.

Calculation of Commuted value of Pension

The commutation of pension is calculated as under:-

Portion of monthly pension to be commuted x 12 x purchase value applicable to the age next birthday.

Note : The table of commutation of pension is given in MOD letter No. 17(4)/2008(2)/D(Pen/ Pol) dt 12.11.2008.

Restoration of Commutation portion of Pension

The pensioners who have commuted a portion of their pension and on 1.4.1985 or thereafter have completed 15 years or will complete from the respective dates of retirement or from the date on which reduction in pension on account of commutation becomes effective will have their commuted portion restored.

Restoration of Commuted Portion of Pension in case of Absorption

The officers who had drawn lump-sum payment on absorption and have become entitled to restoration of 43% commuted portion of pension shall, apart from payment of revised restored amount of 43% commuted portion of pension, be also entitled to dearness relief on notionally revised full pension from the date of restoration. However, the officers who have opted for lump sum commuted value of their total pro-rata pension may get their pension restored to the extent of 43% after 15 years.

Monetary Allowances Attached to Gallantry Awards

The scheme of Gallantry Awards for Armed forces Personnel can be broadly divided into two categories i.e. Pre-Independence Gallantry Awards and Post-Independence Gallantry Awards. The Pre-Independence Gallantry Awards include Indian order of Merit, Military Cross, etc After independence different series of Gallantry Awards were introduced. The Vir Chakra series of awards are given for acts of conspicuous bravery/gallantry in the presence of the enemy and the Ashok Chakra series for bravery other than in the face of the enemy.

These awards carry a monetary allowance with them which is payable for two lives.

Rates of Monetary Allowance Attached to Gallantary Decorations (Post Independence)

Authority : GOI, mod LETTER no. 7(119)/2008-D(AG) dated 30-3-2011 circulated vide this office Important Circular No. 9 dated 10.06.2011

(i)	Param Vir Chakra	Rs. 10,000/- p.m.
(ii)	Ashok Chakra	Rs. 6,000/- p.m.
(iii)	Mahavir Chakra	Rs. 5,000/- p.m.
(iv)	Kriti Chakra	Rs. 4,500/- p.m.
(v)	Vir Chakra	Rs. 3,500/- p.m.
(vi)	Shaurya Chakra	Rs. 3,000/- p.m.
(vii)	Sena Medal	Rs. 1,000/- p.m.

Note 1. The award at the above rates is applicable w.e.f. 30-03-2011.

Note 2. The Monetary allowance will not be taken into account for computing dearness relief.

Monetary Allowance attached to the Pre-Independence Gallantry Awards

Authority : GOI, mod LETTER no. 7(119)/2008-D(AG) dated 30-3-2011 circulated vide this office Important Circular No. 9 dated 10.06.2011.

Rate for all rank
(a)	Distinguish Service Order	Rs.4000/- p.m.
Each Bar	Rs.4000/- p.m.
(b)	Indian Order of Merit	Rs.4000/- p.m.
Each Bar	Rs.4000/- p.m.
(c)	Indian Distinguished Service Medal	Rs.4000/- p.m.
Each Bar	Rs.4000/- p.m.
(d)	Distinguished Service Cross	Rs.2800/- p.m.
Each Bar	Rs.2800/- p.m.
(e)	Military Cross	Rs.2800/- p.m.
Each Bar	Rs.2800/- p.m.
(f)	Distinguished Flying Cross	Rs.2800/- p.m.
Each Bar	Rs.2800/- p.m.
(g)	Distinguish Service Medal	Rs.2800/- p.m.
Each Bar	Rs.2800/- p.m.
(h)	Military Medal	Rs.2800/- p.m.
Each Bar	Rs.2800/- p.m.
(i)	Distinguished Flying Medal	Rs.2800/- p.m.
Each Bar	Rs.2800/- p.m.

Lump-sum Monetary Awards to Nepalese Gorkhas recipient of Indian Gallantry Decorations

Gorkhas of Nepalese domicile who are awarded the gallantry decoration will get special lump sum monetary awards w.e.f. 1.8.2003 as per the scale given below: