Rank Pay: New Order by MoD for more monetary benefits

Rank Pay: New Order by MoD for more monetary benefits

 On the rank pay controversy the Attorney General had supported some of the issues raised by the Defence Services on which there was a difference of opinion with the Ministry of Defence on interpretation of the decision of the Supreme Court.

Taking into account the legal advice tendered by the then Attorney General, the Ministry has issued a fresh letter on the rank pay issue which is to be read in conjunction with the earlier letter.

The Ministry has also agreed that the reduction/deduction of rank pay from the fixation during 5th Central Pay Commission was also incorrect and that the fixation would be rectified for the period of 01st January 1996 and beyond too.

The contents of letter is reproduced below: The letter can be downloaded by Table by PCDA.

34(10/2013/D (Pay/Services)
Government of India
Ministry of Defence

New Delhi, Dated the 24th July 2014

To,
The Chief of the Army Staff
The Chief of the Naval Staff
The Chief of the Air Staff

CORRIGENDUM

 

Sub: Implementation of Hon’ble Supreme Court Order dt 4th September, 2012 in IA No. 9 of 2010 in Transfer Petition (C) No. 56 of 2007 Union of India and Others versus N. K. Nair & others, etc

Sir,
I am directed to refer to this Ministry Order No. 34 (6)/2012-D(Pay/Services) dt 27th December 2012 regarding implementation of subject Order of the Hon’ble Supreme Court and to state that as per legal opinion tendered by the Learned Attorney General of India, the sanction of the Government is hereby accorded to modify the provisions of this Ministry’s ibid order as under:

(i) The existing para 6 will be renumbered 6 (A) and would stand revised as under:

    In the twelfth line after the word ‘(integrated scale),’ the words “as on 1.1.1986” will be substituted by “w.e.f. 1.1.1986.”

(ii) A new para 6 (B) will be added as follows:

6(B) Sanction of the Government is hereby also communicated to modify certain provisions of Special Army Instructions No. 2/S/1998 dated 19th December 1997 and the corresponding Special Instructions pertaining to Navy and Air Force both bearing Nos. 2/S/1998 dated 19th December 1997, in so far as they relate to deduction of Rank Pay for fixation of revised pay of the concerned officers of  Army, Navy and Air Force in the revised scale w.e.f. 01.10.1996. The modifications/amendments in SAI 2/S/1998 and corresponding instructions for Air Force and Navy are as under:

(a) The existing para 5(a)(ii) would read as under:

(ii) After the existing emoluments have been so increased, there shall be no deduction of Rank Pay. Thereafter, the officer’s pay will be fixed in the revised scale at the stage next above the amount thus computed

(iii) A new para 6(C) will also be added in ibid MoD letter as follows:

6(C) The pay fixation formula w.e.f. 1.1.2006 as laid down in SAI 2/S/2008 and the corresponding Special Instructions applicable to the Air Force and Navy has also been examined in light of the legal opinion tendered by the Learned Attorney General. In the methodology of pay fixation of revised pay w.e.f. 1.1.2006, Rank Pay has not been deducted and has been taken into account along with Basic Pay in the pre-revised scale to arrive at the new, revised pay in the relevant pay band w.e.f. 1.1.2006 whereupon Grade Pay has also been given and an additional component of Military Service Pay (MSP) at Rs 6000 p.m. is also admissible to the Armed Forces upto the rank of Brigadier/eq. As such, the pay fixation formula w.e.f. 1.1.2006 for the relevant officers of the Armed Forces as laid down in the relevant instructions does not require any change.

(iv) Existing Para 7 will be replaced with the following:

7. Except to the extent of modifications as stated in MoD letter No. 34(6)/2012-D (Pay/Services) dated 27.12.2012 and as amended vide this letter, the aforesaid Army Instructions 1/S/87 dated 26.05.1987 and corresponding Navy and Air Force Instructions both bearing No 1/S/87 dated 11.06.1987 and 26.05.1987 respectively as amended from time to time and Special Army Instructions No. 2/S/98 of 19.12.1997 and the corresponding Special Instructions in case of Navy and Air Force both bearing No. 2/S/98 dated 19.12.1997 as amended from time to time, there shall be no change in the provisions of the aforesaid Special Army, Navy and Air Force Instructions of 1987 and 1997 pertaining to the implementation of the recommendations of the 4th and 5th Central Pay Commission.

(v) Existing para 8 will be replaced with the following:

8. As the aforesaid Order of the Hon’ble Supreme Court passed on 04.09.2012 read with their earlier order dated 08.03.2010 has upheld the order of the Hon’ble Kerala High Court passed on 05.10.1998 in case of Major A K Dhanapalan and as the said order of the Hon’ble Kerala High Court dated 05.10.1998 is for re-fixation of pay without deduction of Rank Pay w.e.f. 1.1.1986, and as this sanction is in compliance with these judicial pronouncements and the legal opinion of the Learned Attorney General on this issue, it is clarified that there shall be no change in respect of Special Army Instructions of Army, Navy and Air Force issued on 11.10.2008 (Army) and 18.10.2008 (Navy and Air Force) for implementation of the recommendations of the 6th Central Pay Commission, except to the extent of the need for the fixation of pay w.e.f. 01.01.2006 necessitated due to the fixation of pay w.e.f. 01.01.1986 and 01.01.1996 in terms of these orders.

(vi) All other provisions of the MoD letter No. 34(6)/2012-D(Pay/Services) dated 27.12.2012 remain unchanged.

2. This issues with the concurrence of Ministry of Defence (Finance) vide their UO No. 1(76)/2013-AG/PA (310-PA) dated 23.07.2014 and Ministry of Finance (Department of Expenditure vide their UO No. 94466/E.III (A)/2014 dated 09.07.2014

Yours faithfully,
(P.S. Walia)
Under Secretary to the Government of India

Source: http://www.indianmilitary.info

Clarification on TDS (Income-Tax) by PCDA - RANK PAY

Clarification on TDS (Income-Tax) by PCDA - RANK PAY
While disbursing the payments of Rank Pay Arrears I-Tax(TDS) @ 10% was deducted (where correct PAN No. is available) and IT @ 20% has been deducted (where PAN No. is not available). The amount has been credited to Income Tax (IT) head. The above deductions will be reflected in the 26AS return filed by this Office.

Source: https://pcdaopune.gov.in/

PCDA Advt - Rank Pay: For Special Attention of Retired Officer and NOKs/Legal heirs of deceased Officer

PCDA Advt - Rank Pay: For Special Attention of Retired Officer and NOKs/Legal heirs of deceased Officer

OFFICE OF THE CGDA
ULAN BATAR ROAD, PALAM
DELHI CANTI-10

Sub: For Special Attention of Retired Armed Forces Officers and NOKs/Legal Heirs of Deceased Officers

(In the mailer of Hon'ble Supreme Court Order of 04/09/2012 on Rank Pay)

According to MoD Letter No, 34(6)2012-D (Pay/Services) dated 27 December, 2012 in regard to implementation of Hon'ble Supreme Court Qrder dated 04th September, 2012, the pay of the officers of the Armed Forces holding the rank of Capt/Maj/Lt Col(TS)/Lt Col(Sel)/Col/Brig and equivalent ranks in Air Force and Navy serving as on 01/01/1986 is to be revised for payment of arrears of Pay.

2. Revision of pay of affected officers as per Hon'ble Supreme Court order is already in process. It has been noticed that in number of cases necessary Information/documents like IRLAs/Bank details/ required Undertakings of the affected officers are not available with their pay offices to enable them to release the payment of arrears of pay. List of such affected officers and requirement of information/documents therefrom are available on the following websites of concerned Pay Offices:

a) For Army Officers: PCDA (0), Golibar Maidan, Pune-411001 (https://pcdaopune.gov.in)

b) For Air Force Officers: Officer-in-Charge, Officer Pay Wing. Air Force Central Accounts Office, Subroto Park, Delhi Cantt-110010 (www.indianairforce.nic.in)

c) For Naval Officers: The Logistics Officer-in-Charge, Naval Pay Office, Shahid Bhagat Singh Road, Mumbai-400 023 (www.wnc-navpay@nic.in)

3. All the beneficiary officers or NOKs are requested to immediately send to respective Pay Offices required information/documents as mentioned on the above websites superscribing the envelope containing the documents as "Documents for Rank Pay Case".

For any clarification contact Director MP 5 & 6 at 011-26106329 or AAG MP 5 & 6 at 011-26195669 or PCDA(O), Pune at 020-26401138/26401111/26401356 (For Army);
011-256960334919650591865 (For Air Force) and at
022-22751052/22751057/22751058 (For Navy)

PCDA's Advertisement for banker details : Rank Pay Arrear

PCDA's Advertisement for banker details : Rank Pay Arrear

Implementation of Hon'ble Supreme Court (RANK PAY CASE) Judgement dated 04/09/2012

ADVERTISEMENT

a. Army officer's who were in receipt of Rank Pay in 01/01/1986 are entitled for arrears of Pay as per Hon'ble Supreme Court Judgement.

b. PCDA(O) Pune has not yet received bank details from some of the officer's. In some cases officer's promotion details are not available with PCDA(O).

c. Officer's can download from website the formats on which bank details have to be forwarded to Pay Revision Cell, O/o Pr. CDA(O), Golibar Maidan, Pune —411001.

d. Officer's may contact PCDA(O) on the following Numbers on Working Hours

Shri. N. R. Deshpande -02026401138 Mobile No. 9561770266
PRO - 02026401111
PRO – 02026401356

Format BANK DETAILS FORM -1

To be filled by the officer himself
 

Personal Number
Rank (as on 01/01/1986)
Name
CDA A/C Number
Date of Commission
Date of Retirement/Release/ Invalidment/Desertion etc
PAN
PPO Number and Date
Permanent Address
Postal Address
Email
Name of Bank
Address of Bank
Bank A/c Number
IFSC Code

          I hereby undertake that any excess payment that may be found to have been made as a result of incorrect fixation of pay or any excess payment detected in the light of discrepancies noticed subsequently will be refunded by me to the Government either by adjustment against future payments due to me or otherwise through MRO deposited into Treasury in favor of PCDA (O), Pune.

I am enclosing the following documents (mandatory)-
(a) Copy of PPO (Self attested)
(b) Copy of PAN Card (Self attested)
(c) Cancelled Cheque issued by the bank mentioned above

Signature of Officer

Place:
Date:



Bank details Form -2

To be filled by the NOK (if officer is not alive)

Officer's Details
Personal Number
Rank (as on 01/01/1986)
Name
CDA A/C Number
Date of Commission
Date of Retirement/Release/ Invalidment/Desertion Death etc
Officer's Details
Name
Relation with Officer
PAN
PPO** Number and Date
Permanent Address
Postal Address
Email
Name of Bank
Address of Bank
Bank A/c Number
IFSC Code

             I hereby undertake that nay excess payment that may be found to have been made as a result of incorrect fixation of pay or any excess payment detected in the light of discrepancies noticed subsequently will be refunded by me to the Government either by adjustment against future payments due to me or otherwise through MRO deposited into Treasury in favor of PCDA (O), Pune.

              I am enclosing the following documents (mandatory) -
(a) Copy of PPO (Self-attested)
(b) Copy of PAN Card (Self-attested)
(c) Cancelled Cheque issued by the bank mentioned above

Signature of NOK

** In case the NOK is not in receipt of pension, he/she should give the details of the NOK certificate and attach Self-attested Copy of the certificate in lieu of copy of PPO.

In addition to above PCDA has been published following important information related to Rank Pay Arrear on their website:

Payment released (cases in which data is received from Army Headquarter)

    Payment made in Rank Pay Cases into (Nos /16937). Please check into with bankers.
    Payment made in Rank Pay Cases into (Nos /3224). Please check into with bankers.

Payment yet to be released for the want of Bankers or Undertaking (cases in which data is received from Army Headquarter)

    List of cases where undertaking not received as per GOVT OF INDIA, MOD LR DT : 27/12/12 on Rank Pay Case officers are requested to forward the same immediately to PAY REVISION CELL PCDA.
    Veteran Officers as per following link are requested to forward their Bank details in Rank Pay Case
    Army officers as per the list may please send their bank details

Payment yet to be released for the want of complete information from AHqr. (cases are sent to Army Headquarter for fulfillment of data)

Data received from Army HQrs with incomplete details.

Rank Pay Matter: Antony expect Attorney General’s opinion on issue of rank pay fixation

Antony seeks AG’s opinion on issue of rank pay fixation
Wants clarification on interpretation of apex court order

Tribune News Service

New Delhi, June 14

Faced with differing interpretations of a Supreme Court order on correct fixation of “rank pay” of armed forces officers, Defence Minister AK Antony today decided to seek opinion of the Attorney General (AG).

The “rank pay” issue is popularly known as the Major AK Dhanapalan case. The Supreme Court, in a verdict last September, ordered fixation of “rank pay” since January 1, 1986, for the Fourth Pay Commission.

Antony, at a high-level meeting today, made it clear that the apex court verdict had to be implemented. The forces and the MoD are in disagreement over interpretation of the SC order. The MoD interpretation is that the order may be implemented for personnel impacted by the Fourth Pay Commission “as on January 1, 1986”. The interpretation of the forces is that it means “with effect from January 1, 1986”.

This would mean that the anomaly in the subsequent pay commissions (the fifth and the sixth) should also be corrected. Rank pay, when calculated with the basic, will enhance pension of thousands of retired officers.

Going by the MoD interpretation, officers affected by the Fourth Pay Commission would benefit, while there would be no hike for those covered under the later pay commissions.

Antony said the Services would give their interpretation and submit to the Attorney General directly while the MoD would take up the matter with the Ministry of Finance that fixed the pays and salaries of all government employees.

According to official sources, Antony wants the matter to be sorted out soon. The MoD will also give its interpretation to the AG.

The Supreme Court had directed the government to re-fix the pay scale of Army officers affected by the Fourth Pay Commission and this would entail an additional burden of Rs 1,600 crore on the exchequer.

The orders benefited officers in the rank of Captain to Brigadier in the Army and equivalent ranks in the Air Force and the Navy, between January 1, 1986, and January 1, 2006.

The apex court also directed the Centre to pay 6 per cent interest from January 1, 2006, to all officers, whether or not they have filed any petition before any of the high courts or the Benches of Armed Forces Tribunal, within 12 weeks from today.

Major AK Dhanapalan was the first officer to challenge the fixation before the Kerala High Court which, in October 1998, directed the government to re-fix the pay without deducting the rank pay.

Read more at: http://www.tribuneindia.com

Arrears & Rank Pay Revision : Example & Table by PCDA

Arrears & Rank Pay Revision : Example & Table by PCDA

Implementation of Hon'ble SC Judgment dated 04/09/2012

How pay has been revised on 1/1/86

A. Existing emoluments as on 1/1/86 ie Basic Pay, DA, ADA, Adhoc DA, Interim Relief I and II are added
B. 20 % of Basic pay is added to it
C. Pay is now fixed at next stage above total emoluments so arrived
Earlier the rank pay was deducted from sum of A and B above before fixing the pay in next above stage. This time Rank Pay has not been deducted.

Example 1
Pay of Capt A in the integrated pay scale (2300 —100 —3900-150-5100) on 1/1/86

Basic Pay	1450
DA/ADA/Adhoc DA	1450
IR-I&II	215
20% of BP	290
Total	3405

Earlier pay was fixed at Rs 3300, which is next stage above 3205 (3405 minus 200)
Now Pay fixed at Rs 3500, which is next stage above 3405.

Example 2
Pay of Capt B in the integrated pay scale (2300 -100 -3900-150-5100) on 1/1/86

Basic Pay	1400
DA/ADA/Adhoc DA	1450
IR-I&II	210
20% of BP	280
Total	3340

Earlier pay was fixed at Rs 3200, which is next stage above 3140 (3340 minus 200).
Now Pay fixed at Rs 3400, which is next stage above 3340.

Example 3
Pay of Maj C as on 111/86

Basic Pay	1550
DA/ADA/Adhoc DA	1470
IR-I&II	225
20% of BP	310
Total	3555

Earlier pay was fixed at Rs 3400 (minimum prescribed for a Major), despite the fact that the next stage above 2955 ( 3555 minus 600) was 3000.

Now Pay fixed at Rs 3600, which is next stage above 3555.

How arrears have been calculated

Example 1
Capt A - Pay fixed as on 1/1/86 at Rs 3500/-

Date		BP Drawn	Revised BP	Rank Pay
1/1/86	Pay Revision	3300	3500	200
1/12/86	INCR	3400	3600	200
05/12/87	Prom to Masi	3400 *	3600*	600
1/12/87	INCR	3500	3700	600
1/12/88	INCR	3600	3800	600
1/12/89	INCR	3700	3900	600
1/12/90	INCR	3800	4050	600
1/12/91	INCR	3900	4200	600
1/12/92	INCR	4050	4350	600
1/12/93	INCR	4200	4500	600
1/12/94	INCR	4350	4650	600
06/12/94	Prom to Lt Col	4350*	4650*	800
1/12/95	INCR	4500	4800	800
1/1196	INCR	13900	14300	1600
1112/96	INCR	14300	14700	1600
1/12/97	INCR	14700	15100	1600
1/05/98	Prom to Col	15100	15100$	2000

* Minimum Pay prescribed for the ranks of Maj and Lt Col was Rs 3400/- and Rs 3900/- respectively. Officer already in receipt of same or more pay on the date of promotion, therefore Basic Pay didn't change on these dates.

5th CPC Orders - At the time of promotion, Basic Pay is fixed in the pay scale of higher rank and Rank Pay of higher rank is admitted.

Pay scale of Lt Col 13500 - 400 - 17100
Pay scale of Col 15100 - 450 - 17350

As the starting pay in the scale for Col was 15100, no change in Pay on the date of promotion.
In this case arrears will accrue from 01/01/86 till 01/05/98 only, as the pay drawn and pay due is same after 01/05/98.

Example 2
Capt B - Pay fixed as on 1/1/86 at Rs3400/-

Date		BP Drawn	BP due	RankPay
1/1/86	Revised Pay	3200	3400	200
1/08/86	INCR	3300	3500	200
1/08/87	INCR	3400	3600	200
20/04/88	Prom to Maj	3400*	3600*	600
1/08/88	INCR	3500	3700	600
1/08/89	INCR	3600	3800	600
1/08/90	1NCR	3700	3900	600
1/08/91	INCR	3800	4050	600
1/08/92	1NCR	3900	4200	600
1/08/93	INCR	4050	4350	600
1/08/94	INCR	4200	4500	600
18/06/95	Prom to Lt Col	4200*	4500*	800
1/0895	INCR	4350	4650	800
1/1/96	INCR	13900$	139005	1600

*  Minimum Pay prescribed for the ranks of Maj and Lt Col was Rs 3400/- and Rs 3900/- respectively, Officer already in receipt of same or more pay on the date of promotion, therefore Basic Pay didn't change on these dates.
As per 5th CPC Pay fixation Charts, BP of Lt Cols drawing Basic Pay Rs 4350, 4500 and 4650 gets bunched at Rs 13900.
In this ease an-ears will accrue from 01/01/86 to 01/01/96 only, as the pay drawn and pay due is same from 01/01/96.

Example 3
Maj C - Pay fixed as on 1/1/86 at Rs3600/

Date		BP Drawn	BP due	Rank Pay
1/1/86	Revised Pay	3400	3600	600
1/12/86	INCR	3500	3700	600
1/12/87	INCR	3600	3800	600
1/12/88	INCR	3700	3900	600
1/12/89	INCR	3800	4050	600
1/12/90	INCR	3900	4200	600
1/12/91	INCR	4050	4350	600
1/12/92	INCR	4200	4500	600
16/08/93	Prom to Lt Col	4200	4500	800
1/12/93	INCR	4350	4650	800
1/12/94	INCR	4500	4800	800
1/12/95	INCR	4650	4950	800
1/1/96	Pay Fixation 5CPC	13900	14300	1600
05/05/96	Prom to Col	15100 $	15100 $	2000

As per 5th CPC Pay fixation Charts, BP of Lt Cols drawing Basic Pay Rs 4350, 4500 and 4650 gets bunched at Rs 13900.

In this case arrears will accrue from 01/01/86 to 05/05/96 only, as the pay drawn and pay due is same from 01/01/96.

Source: https://pcdaopune.gov.in
[https://pcdaopune.gov.in/Downloads/HOWPAYREV.PDF]