No.
17(01)/2017/(02)ID(Pension/Policy) Government of India Ministry of Defence
Department of Ex-Servicemen Welfare New Delhi. Dated 5thSeptember, 2017
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
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.
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/ invalidment/death.
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.
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