Demands Relating to Defence Pensioners : 7th CPC Report

Demands Relating to Defence Pensioners: 7th CPC Report

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 7th 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.

 Source: 7thpaycommissionnews.in

7th Pay Commission Recommendation will be issued after the completion of State Assembly Election 2016

7th Pay Commission Recommendation will be issued after the completion of State Assembly Election 2016

The notification to put into effect the 7th pay commission recommendation will be issued after the completion of states assemblies’ poll process as the model code of conduct is currently in place, sources of Finance Ministry said on Wednesday.

The assemblies’ election of Tamil Nadu, West Bengal, Assam, Kerala and Puducherry states, which will be held from April 4 to May 16 and the counting of votes in the states will take place on May 19 but the model code of conduct will remain in place till May 21.

So, it is believed that the government will announce 7th pay commission award after the end of model code of conduct of states assemblies election.

The government doesn’t want to give any chance to the Opposition to deter its image in the polls and hence, sources, said that the announcement of the dates of the the model code of conduct of states polls seems to be the cut-off point for notification of the 7th pay commission award.

The 7th pay commission recommendations will benefit 48 lakh central government employees and 52 lakh pensioners including dependents.

“The BJP led central government decided execution time of the pay commission’s proposals in April but the Empowered Committee of Secretaries headed by cabinet Secretary can’t sort out some anomalies of 7th pay commission recommendations like scrapping of advances, allowances and minimum pay before declaration of states Assemblies polls,” sources said.

Sources also said the Implementation cell of the Empowered Committee of Secretaries for the 7th pay commission recommendation in Finance Ministry works hard to send a summary of the pay commission implementation to PMO for its nod. After PMO’s nod, it would be placed before the cabinet for its nod through cabinet secretary.

Sources said the 7th Pay Commission recommendations implementation notification will be issued in June, after cabinet nod.

The 7th Pay Commission was set up by the UPA government in February 2014, The Commission headed by Justice A K Mathur submitted its 900-page final report to Finance Minister Arun Jaitley on February 19, recommending 23.55 per cent hike in salaries and allowances of Central government employees and pensioners.

The panel recommended a 14.27 per cent increase in basic pay, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike, which the government doubled while implementing it in 2008.

The 7th pay commission recommended fixing the highest basic salary at Rs 250,000 and the lowest at Rs 18,000and its increased the pay gap between the minimum and maximum from existing 1:12 to 1: 13.8
The government constitutes the Pay Commission almost every 10 years to revise the pay scale of its employees and pensioners, often these are adopted by states after some modifications. However, the 7th Pay Commission suggested to discontinue the practice of appointing pay commissions in future.

Via Central Government News

Court orders against Government of India instructions on service matters-consultation with Ministry of Law and Department of Personnel and Training on question of filing appeals.

F.No.28027/1/2016-Estt.A-III
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel & Training
Establishment Division

North Block, New Delhi-110001
Dated: 16th March, 2016.

OFFICE MEMORANDUM

Subject: Court orders against Government of India instructions on service matters-consultation with Ministry of Law and Department of Personnel and Training on question of filing appeals.

The undersigned is directed to refer to this Department’s 0.M.No.28027/9/99- Estt.(A) dated 1st May, 2000 on the above subject ( copy enclosed) and to say that the Department of Personnel and Training is the nodal Department that formulates policies on service matters and issues instructions from time to time. These instructions are to be followed by the Ministries/Departments of the Central Government scrupulously. All the Court cases filed by employees have to be defended on the basis of the facts available with the Administrative Ministry/Department concerned, keeping in view the instructions issued on the subject by this Department.

2. Reference is also invited to the Cabinet Secretariats D.O letter No. 6/1/1/94- Cab dated 25.02.1994 and the Department of Expenditure’s O.M. No. 7(8)/2012-E-II(A) dated 16.05.2012 inter-alia provide that (i) a common counter reply should be filed before a Court of Law on behalf of the Union of India by the concerned administrative Department/Ministry where the petitioner is serving or has last served; and (ii) a unified stand should be adopted instead of bringing out each Department’s/Ministry’s point of view in the said reply. It further provides that it is primarily the responsibility of the Administrative Ministry to ensure that timely action is taken at each stage a Court case goes through and that a unified stand is adopted on behalf of Government of India at every such stage. In no case should the litigation be allowed to prolong to the extent that it results in contempt proceedings.

3. However, it is noticed that the Ministries/Departments are making several references to this Department seeking interpretation of the guidelines without exercising due diligence. The Ministries/Departments are advised not to make any references to this Department unless there are difficulties relating to interpretation/application of these guidelines or any relaxation in Rules/instructions is warranted to mitigate a genuine hardship faced the Government servant.

While seeking advice of this Department, instructions contained in this Department’s O.M. number 43011/9 /2014-Estt (D) dated 28.10.2015 may be followed.

4. The court cases may be further handled in the following manner:-

S.No.	Orders of Court	Action to be taken
1.	A decision/order has been quashed by Tribunal/Court on the ground that it is violative of the Rules/Government instructions, but Government’s policy has not come in for adverse comments.	The Administrative Department may implement the CAT Order/Judgement if it is in consonance with Government policy and the Government case has been lost due to Administrative infirmities.
2.	Where the policy of DoPT has not been quashed, but the judgment/order of the Tribunal/ High Court/ Supreme Court has gone in favour of Respondents/Applicants. (a) Where in above, the Administrative Ministry is in favour of implementing the judgement (b) Where in above, a decision to file Writ Petition/Special Leave Petition (as the case may be) has to be taken	The Administrative Ministry may take a decision in consultation with DoPT and DoLA The Administrative Department may take a decision to file Write  Petition/Special Leave Petition be) in (as the case may consultation with Department of Legal Affairs (DOLA) and DoP&T
3.	Where the judgment has gone in favour of  Applicant/Petitioner/Respondent and a scheme/guideline/OM outlining Government policy has been quashed.	The Administrative Department may take a decision to file WP/SLP (as the case may be) in consultation with DoPT and DOLA. The references to this Department should be sent at least one week in advance so that it can be properly examined in DoP&T.
4.	CAT or a Higher Court has upheld Government’s stand	DoPT may only be informed with all details.

(Mukesh Chaturvedi)
Director (E)
Tele: 2309 3176

DOPT Circular

Enhancement of the Rate of Disability Pension : 7th CPC Report

Enhancement of the Rate of Disability Pension : 7th CPC Report

Enhancement of the Rate of Disability Pension

The Services have sought enhancement of the rate of disability pension for 100 percent disability from the existing level of 30 percent of the last drawn reckonable emoluments to 50 percent. For lower percentages of disability, the amount of disability element is sought to be pro-rated.

Analysis and Recommendations : The regime of disability element for non-battle cases has moved from fixed slab rates to a percentage of reckonable emoluments. The rates of disability element for 100 percent disability as admissible over the years, is indicated in the table below:

The ratio of maximum to minimum disability pension for officers and ORs across various points in time is detailed below:

While the number of officers retiring with disability element has shown a significant increase at levels of Brigadier and above in recent years, it is notable that since 2010-11, no officer in these ranks has been invalided out.

The feature that stands out when the historical evolution of the regime relating to disability pension is studied is the shift from slab based system to a percentage based disability pension regime consequent to the implementation of the VI CPC’s recommendations. This move has been contrary to the tenets of equity insofar as treatment of disability element between Officers and JCOs/ORs is concerned borne out by the fact that the ratio of maximum to minimum quantum of compensation for disability across the ranks is now disproportionately high at 8.6. The Commission is therefore of the considered view that the regime implemented post VI CPC needs to be discontinued, and recommends a return to the slab based system. The slab rates for disability element for 100 percent disability would be as follows:

Central Government Officers Foreign Trips Cost Rs 1,500 Crore In Past 3 Years

Central Government Officers Foreign Trips Cost Rs 1,500 Crore In Past 3 Years

A whopping over Rs 1,500 crore was spent by various central government ministries on foreign travel during the last three years, the Lok Sabha was informed.

Of the total of Rs 1,537 crore spent by ministries, a total of Rs 509.91 crore was during 2014-15, Rs 434.94 crore in 2013-14 and Rs 593.09 crore during 2012-13, Minister of State for Personnel, Public Grievances and Pensions Jitendra Singh said in a written reply.

Among the 62 ministries which spent the amount, the highest of Rs 351.65 crore was spent alone by Ministry of Personnel in last fiscal and Rs 289.92 crore in 2013-14 and Rs 453.95 crore during 2012-13, he said.
The home ministry had spent Rs 30.24 crore in 2014-15 and Rs 14.13 crore during 2013-14.

Commerce ministry, and Civil Aviation and Tourism ministries spent Rs 6.95 crore and Rs 9.45 crore last fiscal on foreign travel, the Minister said.

Singh said as many as 15 officers were on foreign deputation last year. Of them, seven were from Ministry of External Affairs, five from Department of Economic Affairs and one each from Ministry of Overseas Indian Affairs (which is now under foreign ministry), Civil Aviation Ministry and Department of Commerce, he said.

As per the latest instructions issued by Department of Expenditure, not more than four official visits abroad in a calender year and such trips shall not exceed five working days.

The size of delegation has to be kept to the absolute minimum and participation of officials in international fairs, exhibitions, workshops and conference shall be discouraged, it said.

PTI