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Thursday, 19 November 2015

7th CPC RECOMMENDATIONS FOR DEFENCE PENSIONERS


Demands Relating to Defence Pensioners
10.2.19 The Commission has received a number of demands relating to pensions for defence forces personnel through the Joint Services Memorandum (JSM) from the Services, Pensioners
Associations and Bodies including those dealing with the needs of special categories like war veterans, disability etc. The demands/representations received in the Commission have been
examined under the broad categories of Retiring Pension, Family Pension, Disability Pension and Ex-gratia lump sum compensation.
Demand Relating to Retiring Pension
10.2.20 The principal demands made before the Seventh CPC in respect of retiring pensions as applicable to the defence personnel were:
i. Minimum pension should be fixed at 75 percent of reckonable emoluments for JCOs/ Other Ranks or a compulsory early retirement compensation package or lump sum amount.
ii. Additional quantum of pension with advancing age should commence at the age of 70 years for JCOs/ Other Ranks instead of 80 years as prevails today.
iii. Pre 2006 Honorary Naib Subedar may be given pension of Naib Subedar.
iv. Defence Security Corps (DSC) personnel may be granted second pension on completion of 10 years of service at par with civilians.
v. The depression in pension for qualifying service between 15 and 20 years may be removed and complete earned pension may be made admissible to Territorial Army personnel.
Minimum Pension for JCOs/ ORs
10.2.21 The Services, in the JSM, have sought enhancement of the Service Pension to 75 percent of last drawn reckonable emoluments for JCOs and ORs. In case enhancement of pension to 75 percent of last drawn reckonable emoluments is not granted for JCOs/OR, the
Services have sought a compulsory early retirement compensation package or compulsory lateral absorption in government or PSU as an alternative.
Analysis and Recommendations
10.2.22 Service pension for all categories of employees has been fixed at 50 percent of the last pay drawn. The recommendations in relation to pay of both the civilian and defence forces personnel will lead to a significant increase in the pay drawn and therefore in the ‘last pay drawn’/‘reckonable emoluments.’ It is also to be noted that in the case of defence forces personnel, in particular all JCOs/ORs, the last pay drawn includes the element of Military Service Pay, which is also taken into account while reckoning pension. The Commission has Report of the Seventh CPC 402 Index also recommended an increase in Military Service Pay. The increase in pay and MSP will automatically and significantly raise the level of pension of JCOs/ORs, since pension is related to the last pay drawn/ reckonable emoluments. Therefore the Commission does not recommend any further increase in the rate of pension for JCOs/ORs.
Additional Quantum of Pension with Advancing Age
10.2.23 The Services have sought a modification in the existing old age pension scheme for JCOs/ ORs whereby the additional quantum of pension should commence at the age of 70 rather than the existing age of 80. The quantum of increase has also been sought to be raised upwards for various categories of old age pensioners.
Analysis and Recommendations
10.2.24 The scheme of additional pension and additional family pension with advancing age was introduced subsequent to recommendations of the VI CPC. The amount of pension for
existing pensioners will be revised upwards in accordance with the fitment formula that has been prescribed by the Commission. No further increase in the existing rate of additional pension and additional family pension with advancing age is therefore recommended by the Commission.
Pre-2006 Honorary Naib Subedar
10.2.25 The Services have sought that the provision of grant of pension of Naib Subedar to Havildars and equivalent who are given Honorary rank of Naib Subedar after retirement, currently applicable to post 01.01.2006 retirees only, should also be extended to pre 01.01.2006, retirees. The Services have contended that the current policy has resulted in creation of two classes of pensioner’s viz., pre and post 01.01.2006, which is undesirable.
Analysis and Recommendations
10.2.26 The Commission has examined the matter. It notes that the VI CPC had recommended that the pension of all Honorary rank Naib Subedar will be payable by taking this placement as a regular promotion to the higher grade and this would applicable “henceforth.” The VI CPC has been unambiguous as far as the date of effect of the benefit. This Commission does not find any merit in re-opening an issue that has been clearly settled. Therefore no change is being recommended in this regard.
Defence Security Corps (DSC) Personnel
10.2.27 The Services have sought reduction in the qualifying service for entitlement of second pension to Defence Security Corps (DSC) personnel from 15 to 10 years. To support their demand it has been contended that all employees taking up second employment in Central Government establishments earn their second pension after completing 10 years of service whereas for DSC personnel 15 years of service is mandatory.

10.1.69 Illustration on fixation of pension based on recommendations of the Seventh CPC.
Case II
10.1.71 Pensioner ‘B’ retired at last pay drawn of 4,000 on 31 January, 1989 under the IV CPC regime, having drawn 9 increments in the pay scale of 3000-100-3500-125-4500:

1). Basic Pension fixed in IV CPC 1,940
2). Basic Pension as revised in VI CPC 12,543
3). Initial Pension fixed under Seventh CPC (using a multiple of 2.57) 32,236 (Option 1)
4). Minimum of the corresponding pay level in 7 CPC 67,700
5). Notional Pay fixation based on 9 increments 88,400
6). 50 percent of the notional pay so arrived
44,200 (Option 2)
7). Pension amount admissible (higher of Option 1 and 2) 44,200
 

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