Friday, August 6, 2010

Pension Anomaly JCOs(Equivalents)/Commissioned Officers

Ref GOI, MOD letter No PC10(1)/2009-D(Pen/Pol) dated 08 Mar 2010. As per this letter the revised pension wef 01 Jul 2009 in respect of an MWO of X Gp retired before 31 Dec 2005 is Rs.13,590/- for 28 years of service and above. Accordingly those MWO of the same Group who retired after 01 Jan 2006 are also required to be given the pension at par for the same length of service to avoid pension anomaly. By doing so, if the same MWO gets the Hony Commissioned Rank of Flying Officer, he is eligible for a pension of Rs.15,890/- (an increase of Rs.600/- on Grade Pay and Rs.4,000/- on MSP i.e., Rs.4,600/-, 50% of pension on this is Rs.2,300/- which is to be added to Rs.13,590/-).

After implementation of 6th CPC report, Commissioned/Hony Commissioned Officers of the Rank of Lt and Capt(Equivalent) are getting a pension of Rs.13,500/- and Rs.13,850/- for 28 years of service and above, respectively, which is to be revised to Rs.15,890/- for Lts(Equivalents) and to Rs.16,240/- for Capts(Equivalents) to bring parity and to avoid pension anomaly.

Due to substantial increment in pension to PBOR with effect from 01 Jul 2009, who are retired prior to 01 Jan 2006 and Commissioned Officers of the Rank of Lt Cols(Equivalents), who are now placed in Pay Band-4 (the starting salary of Pay Band-4 is much higher compared to Pay Band-3), the leftover officers of the rank of Lt, Capt and Maj(Equivalents), who are in Pay Band-3, are getting less pension as their pension is fixed at 50% of the min of the Scale including Grade Pay and MSP, which is required to be raised through Govt Orders.

Readers are welcome to give feedback or suggestions on this subject.


Capt. N. Chidananda Poojary (Retd.) said...

Hello Friends,
These are some of the answers to the queries that have been raised to me by my fellow blog users. I hope it will benefit all Ex-servicemen.
(a) Is there any increase in the pension of pre-2006 Family Pensioners (Widow/NOK – pensioners) – (query from Dalbir Singh)
“As per Para 5.2 of Govt. of India letter referred to in my blog, the order is not applicable to family pensioners. In normal cases, the family pension is 60% of the late pensioners’ basic pension. At present the minimum family pension is Rs 3500/- pm. Hence those who were drawing pension up to Rs 5834/- pm, the family pension will remain at minimum level of Rs 3500/- pm.”
(b) Is there any latest orders on increase of pension of Lts, Capts and Majors (Army) – (Query from Capt Gurdas Singh)
“Lts, Capts (including Hony Commissioned Officers) and Majors are placed in Pay Band – 3, which is for Group A Officers that is, commissioned officers and equally applicable to all the three services. The Govt. had earlier assured to increase the pension of JCOs/ORs (equivalents – PBOR) up to 70%, that has now been implemented. Due to increase in the pension of PBOR, which is overlapping the pension of commissioned officers pension, Govt. may take action to set right the anomaly. Such orders are yet to be issued as per my information.”
(c) Not only the MWOs of post-2006 retirees, the JWOs and WOs of post-2006 are also getting less pension than the pre-2006 pensioners (Query from P Kumar)
“For post-2006 pensioners the pension will be derived @ 50% of the pay last drawn (i.e. Basic Pay + Grade Pay + MSP + X Group pay (as applicable). As per the 6th CPC fitment formula, the basic pay of the soldier is to be multiplied by 1.86% and the Grade pay, MSP and X Group pay (as applicable) is to be added and then rounded off to Rs 10. As per the new pension scales w.e.f 01 Jul 2009 for pre-2006 pensioners - (PBOR), their 5th CPC highest pay scale has been taken into account and then the Grade Pay, MSP and X Group Pay (as applicable) of new pay scale has been added which was then multiplied by the number of years of service including weightage and divided by 66 (e.g. the X Group MWOs highest pay scale as per 5th CPC Rs 10200 is multiplied by 1.86 = 18972 + 4800 Grade Pay + 2000 MSP + 1400 X Group Pay = 27172 and rounded off to 27180/-. 50% pension derived is Rs.13590/- for 28 years and above). As per Para 1 and 2 of Govt. letter referred to in my blog, the highest pay scale for each rank as per 5th CPC has to be taken into account notionally for post-2006 retirees to arrive the pension at par with pre-2006 retirees. Pension Disbursing Authorities (mainly Banks) may not do this, but pension sanctioning authorities will revise the PPO of such individuals, which may take some time.”

HFO I g ravindran said...

Poojari, sir, Thank u 4 u r efforts 2 inform the correct is very disapointing 2 be placed bellow an MWO on pension. I retired as HFO.

Hfo ravindran said...

Sir,It seems the Govt is not aware of the pension anomaly u have rightly menctioned .other wise how can D Minister make a statement in Parliament that all 12 lakhs Ex service men(PBOR)have been benifited by modified pension order . As 4 Hony Offrs , part of them ,Viceroy commissioned hony offrs, r given improved pension. All were in the same Pension scales. Thank u Sir.

Hfo ravindran said...

Sir, your calculation of pension 4 Hony commisioned offrs seems 2 be not correct. Based on the calculation of pension 4 X gp MWOs(50% OF 18972 (10200X1.86)+2000+4800+1400=13586, Hony Fg offr should get pension as per the following calculation-50%OF (10500x1.86)=19530+6000(msp)+5400(Gp)+1400(xGpay)= Rs16165.Thank u .

Capt. N. Chidananda Poojary (Retd.) said...

I appreciate your eagerness to know the pension calculations. Honorary Commissioned Officers are considered as equal to Commissioned Officers as far as Pay Band is concerned in the 6th CPC. X Gp Pay is not applicable to Honorary Commissioned Officers, it is only upto the Rank of MWO (Equivalents). You can understand this from your existing pension of Rs. 13,500/- which is half of the minimum salary of Flying Officer as per 6th CPC (Pay Band 3 = 15600 Basic Pay + 5400 Grade Pay + 6000 MSP = 27,000 half of this for 28 years and above service = 13,500). I hope you may be clear now.