Demands Relating to Defence Pensioners : 7th CPC Report

Demands Relating to Defence Pensioners : 7th CPC Report

Demands Relating to Defence Pensioners

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 : 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 : 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: 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.

Comments on the above recommendations:

AK JAYARAJAN says on 17.3.2016…

This regarding the demand of pension of defence personnel particularly JCOs OR and equvalents of Air Force and Navy. Pay commission alysis is that JCOs OR entitled for MSP in addition to 50% of the last pay drawn.

Take the case of a civilian counter part in the grade pay group of 4800. His pay matrix starts for 1 to 40 years. Starting pay as per matrix is 47600 and the next increment stage is 49000 difference is 1400.

Maximum is 151100. Pay at the stage of 39 years is 146700. difference is 4400.Now take the case of JCO particulerly the Rank of Sub Maj in the grade pay group of 4800.Minimum pay in the pay matrix of Sub Maj is 47600.

As per the Govt rules, he is compelled to retire from service after assuming the rank of 4 years or 54 years or 34 years of Service.

He can earn only three increments in the rank of Sub Maj. In that case he can draw pay at the time of retirement at the stage 52000. He is entitled for MSP@ 5200.

So his net pay for calculation of pension will be 57200. Minimum pension admissible is 28600. Actual additional benefit of MSP is 2600. Maximum benefit of MSP will be only two increment.

A civilian counter part can reach maximum of the stage of 151100 and half of that is 75550. In the case of minimum of a promottee with 10 years in that grade may reach more than 62200. His pension will be minimum 31100.

It will be very clear that the benefit of MSP for a Sub Maj retiring at the age between 45 to 48 is equal to an additional increment.

The high power committee may go through the details shown above with the analysis of Pay Commission in the discrimination in the pension entitlement between civilian staff and that of Military rank.