No. 1(13)12012/ D (Pen/Policy)

Government of India

Ministry of Defence

Department of Ex-Servicemen Welfare

New Delhi, Dated 17th January 2013

Subject: – Implementation of Government decision on the recommendations of the Committee of Secretaries 2012 on the issues related to Defence Service Personnel and Ex-Servicemen- Improvement in pension of JCO/OR retired/discharged/invalided out of service prior to 1.1.2006.

Sir,

The undersigned is directed to refer to this Ministry’s letter No. PC 10(1)12009-0 (Pen/Policy) dated 8.3.2010 according to which with effect from 1st July 2009, pension of all ranks of pre-1.1.2006 JCO/OR retiree in Army, Navy and Air Force (including DSC and TA) has been reckoned at 50% of notional pay in the post-1.1.2006 revised pay structure corresponding to the maximum of the pay scales applicable from 10.10.1997 of the rank and group continuously held for last 10months preceding retirement/discharge/invalidment. The amount of pension so determined has to be reduced pro-rata if the reckonable qualifying service including rank weightage (except TA personnel) is less than service required to earn full pension.

2 A Committee of Secretaries headed by Cabinet Secretary was constituted by the Government to consider various issues on pension of Armed Forces personnel and Ex-Servicemen, who have recommended the following to bridge the gap in pension between pre and post-1.1.2006 JCO/OR pensioners-

2.1 The pension of pre-1.1.2006 JCO/OR pensioners may be determined on the basis of notional maximum for the ranks and group across the three Services; and

2.2 Current weightage in qualifying service of Sepoy, Naik and Havildar may be increased by two years.

3. The above recommendations of the Committee has been accepted by the Government and the President is pleased to decide that with effect from 24th September 2012, the service pension, invalid pension, special pension, service element of disability pension and service element of war injury/liberalized disability pension (in release cases only) of all pre-41.1.2006 JCO/OR pensioners of Army, Navy and Air Force (including DSC & TA) shall be recomputed in terms of Para 2 of this Ministry’s above said letter dated 8.3.2010 after determining the highest of notional pay in the revised pay structure corresponding to maximum of pay scales of Fifth CPC across the three Services equivalent to the rank and group in which pensioned. Before determining highest of notional pay of equivalent ranks across three Services, 50% of highest classification allowance(rates effective from 1.9.2008) shall also be added in the notional pay of the ranks in Army, wherever applicable.

3.1 The President is also pleased to decide that for computation of pension in terms of this order, the rank weightage in qualifying service for the rank of Sepoy, Naik and Havildar (except for TA personnel) shall be taken as 12, 10 and 8 years subject to a maximum qualifying service of 32 years. However, in case an individual’s qualifying service works out to be more than 32 years with existing weightage, he would continue to get the benefit of that and there will be no enhancement of weightage in such cases.

3.2 The notional pay in the revised pay structure for pre-1.12006 JCO/OR granted Honorary Commission as Lieutenant and Captain shall also be worked out by adding pay in the revised pay band corresponding to the fixed pay of Fifth CPC (in terms of Para 9(a)(i) of SAI 1/S/2008 as amended and equivalent instructions for Navy & Air Force) plus the Grade pay and Military Service Pay introduced under Sixth CPC revised pay structure.

3.3 All other provisions contained in Para 2 and Para 3 to 3.4 of this Ministry above mentionedletter dated 8.3 201 0 which remain unchanged, shall continue to be followed.

4. The President is also pleased to decide that service element of war injury pension/liberalized disability pension in respect of JCO/OR invalided out of service prior to 1.1.2006 shall be reckoned as under-

4.1 For determining the notional pay last drawn in respect of JCO/OR invalided out of service prior to 10.10.1997, the provisions laid down in Para 4.1 of this Ministry above quoted letterdated 8.3.2010 shall be followed.

4.2. The notional Pay in the pay band of post-1.1.2006 revised pay structure corresponding to the notional pay determined in case of JCO/OR invalided out of service prior to 10.10.1997 vide Para

4.1 above and corresponding to last pay drawn in case of JCO/OR invalided out of service on or after 10.10.1997 but before 31.12.2005, shall be determined at the same number of stage in the fitment table attached to SAI 1/S/2008 or equivalent instructions for Navy & Air Force. For this purpose, the fitment table considered as having highest maximum of pay scales across the three Services for equivalent rank and group in which pensioned, as determined vide para 3 above, shall be taken into account.

4.3 The notional emoluments last drawn for rank and group shall consist notional pay in the pay band as determined vide Para 4.2 above plus Grade pay, Military Service pay and ‘X’ Group pay, where applicable of the rank and group held at the time of invalidment.

4.4. The service element of war injury pension/liberalized disability pension in respect of all PBOR invalided out of service prior to 11 2006 shall be notionally recomputed with effect from 24th September 2012 at 50% of the notional emoluments last drawn (determined as per 4.3 above) in the Post-1.1.2006 revised pay structure with reference to the qualifying service already admitted. The amount of service element so determined shall be the pension for 33 years of reckonable qualifying service including rank weightage (except for TA personnel). The provisions at Para 3 to 3.3 above shall equally apply for determining the amount of service element of war injury pension.

NON- APPLICABILITY

5. The provision of these orders do not apply to the family pensioners of PBOR and Commissioned Officers and their family. These orders also do not apply to UK/HKSRA/KCIOs pensioners and Pakistan/Burma pensioners. The following elements shall continue to be paid as separate elements in addition to the pension revised under these orders-

5.1 Monetary allowance aftached to gallantry awards viz. Param Vir Chakra etc.

5.2 Constant Attendance Allowance, where admissible.

6. The provisions of this order shall be effective from 24th September 2012. No arrears on account of revision of pension based on notional fixation of pay shall be admissible for the past period. However, ft a pensioner to whom the benefits under these orders accrues has died / dies before receiving the payment on account of arrears, the life time arrears (LTA) will be disposed off as per the extant orders contained in Para 12 of this Ministry above said letter dated 8.3.2010

METHODOLOGY FOR IMPLEMENTATION

7. All Pension Disbursing Agencies handling disbursement of pension to Defence pensioners are hereby authorized to carry out revision of service pension/special pension/ invalid pension/service element of disability pension with effect from 24th September 2012 to the affected pensioners drawing pension with 15 years or more qualifying service in terms of these orders without calling for any applications from the pensioners and without any further authorization from the concerned Pension Sanctioning Authorities and pay the arrears on account of such revision.

8. In order to quicken the processes of revision of service pension, special pension, invalid pension, service element of disability pension with 15 years or more qualifying service, total 25 tables indicating revised pension payable with effect from 24th September 2012, have been prepared for PBOR of Regular Army, Navy, Air Force and DSC who retired/discharged/invalided out from service prior to 1.1.2006 and drawing pension as on 24th September 2012, and are enclosed as Appendix to this letter. The appended tables indicate the existing pension as on 1,72009 and revised pension payable with effect from 24th September 2012. Pension Disbursing Agencies shall revise the pension with reference to applicable Table for the rank and group in which the JCO/OR as pensioned. The revised rate of pension indicated against each qualifying service in the pension tables appended to this letter is inclusive of rank weightage applicable for various ranks, Pension Disbursing Authority shall refer the actual qualifying service as shown in Column-41 for carrying out revision subject to maximum term of engagement for each rank as applicable from time to time. in addition, dearness relief sanctioned by the Government from time to time and applicable quantum of additional pension for pensioners of 80 years of age and above, is also payable.

9. The initial Pension Payment Order (PPO) or its Corrigendum PPO (Corr PPO) indicates rank, group and qualifying service for which the individual has been pensioned. This information is available with Pension Disbursing Agencies as they have revised pension of all such pensioners in the recent past in terms of various Government orders. In case, however, any information regarding qualifying service, rank, group etc., is not available with Pension Disbursing Agencies, such cases may be referred to Pension Sanctioning Authority concerned on the proforma enclosed as Annexure-A. The Pension Sanctioning Authorities concerned will provide the requisite information from the available records within 30 days of the receipt of request from the Pension Disbursing Agencies.

CASES REQUIRING REVISION FROM PSAs

10. Pension of PBOR pensioners who are in receipt of Special Pension, Invalid Pension and service element of Disability Pension for less than 15 years of qualifying service would also need to be revised in terms of these orders. Specific Tables for the purpose have not been prepared for the reason that each of such cases will be unique one as rank, group and qualifying service will differ from case to case and hence standard Tables cannot be prepared. Pension Disbursing Agencies shall refer such cases directly to the Pension Sanctioning Authorities concerned in the format enclosed as Annexure-B to this letter.

11. Specific tables for revision of pension in respect of pre-1.1.2006 Territorial Army pensioners have also not been prepared as Pension Disbursing Agencies could not revise such cases due to non-applicability of weightage in qualifying service and provision for reduction in pension in respect of TA pensioners who have completed 15 years or more but less than 20 years of aggregate embodied service. Such cases may also be referred by Pension Disbursing Agencies directly to the Pension Sanctioning Authorities concerned in the format enclosed as Annexure-B to this letter.

12 Similarly, revision of service element of war injury pension/liberalized disability pension in all cases of PBOR irrespective of the qualifying service shall also required to be done by the Pension Sanctioning Authorities concerned for the reason that the crucial information relating to last pay drawn and the maximum terms of engagement to the specific rank for which pension would need to be verified with reference to the original records are held by the Pension Sanctioning Authorities.  Such cases shall also be forwarded by the Pension Disbursing Agencies to the Pension Sanctioning Authorities concerned through respective Record Office in the prescribed proforma enclosed as Annexure-C to this leffer.

METHODOLOGY FOR REPORTING

13. An intimation regarding disbursement of revised pension shall be sent by the Pension Disbursing Agencies to the Office of the PCDA(P) Allahabal on monthly basis in the format prescribed as Annexure-O to these orders a copy of which shall also be provided by the Pension Disbursing Agencies to the pensioners concerned for their information. Those Public Sector Banks who are disbursIng Defence pension through Central Pension Processing Centers (CPPC), the monthly progress report may be furnished by the CPPC of the bank directly to the office of the PCDA (Pensions) Allahabad.

14. This issues with the concurrence of Finance Division of this Ministry vide their I D No 10(11)/2012/FIN/PEN dated 10.1 2013.

Hindi version will follow.

Yours faithfully

Sd/-

(Malathi Narayanan)

Under Secretary to the Government of India