Feel free to contribute on burning issues concerning the armed forces. Contributions would be acknowledged - Use the 'Comments' tab or email navdeepsingh.india[at]gmail.com. No operational/business/commercial matters to be discussed please. Legal advice/litigation related issues would strictly NOT be published or discussed or entertained. Information on this blog is opinion based and is neither official nor in the form of an advice. This is a pro bono online journal in public service related to issues, policies and benefits, and the idea behind it is to educate and not to create controversy or to incite. Be soft in your language, respect Copyrights.

Wednesday, February 11, 2009

Principal Controller of Defence Accounts (Pensions) finally takes on the ruckus being created by banks

The PCDA(P), Allahabad, has finally taken banks to task in respect of pensions of Pre-06 pensioners.

As we all know, there are two methods of calculating pension :

Old Basic Pension X 2.26


50% of Minimum of New Pay Band + Grade Pay + Military Service Pay

Pensioners have an option of selecting the one of the above which is more beneficial. The first option is represented by Annexure-I of MoD Letter dated 11 Nov 08 while the second one is represented by Annexure-II (Annexure-III for PBOR). Banks were however not understanding some rudimentary stipulations of the MoD letter and were simply using Annexure-I for calculation of pensions. The office of PCDA(P) has now issued detailed instructions to all concerned banks to take remedial measures – the same can be viewed and downloaded by clicking here. The PCDA(P) has also pointed out that such actions of banks are affecting the morale of veterans. Detailed instructions on pension consolidation have also been conveyed to the banks. It has also been communicated that Lt Generals who have retired as Army Commanders / Vice-Chiefs are to be granted a higher pension. This was important since most banks are unaware of the difference in status, pay and pension between Lt Generals and those Lt Generals who have retired as Army Commanders / Vice-Chiefs or equivalent. Confusion about Groups of PBOR has also been clarified.

Officers of the rank of Lt Col have sent many emails stating therein that this particular circular is still showing their pensions in accordance with Pay Band-3. I would urge all such officers to relax since the SAI for serving officers has not yet been issued and retirement benefits would only be notified after the necessary promulgation is undertaken for serving Lt Cols. In any case, officers are bound to receive their arrears w.e.f 01 Jan 2006 hence there is nothing to lose. It is just a wait for a few weeks more and that’s about it. There is no conspiracy theory at play as some would like others to believe.


Anonymous said...

Hullo Navdeep,
Rather than leave it to the banks to calculate and pay, it would have been better if the CDA/PCDA staff themselves calculate and inform the banks. since it is an ardous task, the CDA/PCDA can ask the banks to tentatively pay a particular amount( as they did in the case of arrears).This can be a near approximation. And later after finalisation, readjust accordingly.
This way the banks can be relieved of any unnecessary tension.After all the paymaster is the CDA/PCDA and banks only are the facilitators.
Nowadays with easy computerisation it should be easy for CDA/PCDA to calculate.
it is difficult to expect banks to undesatand the nuances of Service Ranks. The COAS has been refered to as Major General by the media in many cases.
As such it is better if CDA/PCDA does the job themselves fully.
I hope you can convince the CGDA accordingly.

Navdeep / Maj Navdeep Singh said...


Sir, a good proposal but impractical to implement.

PCDA(P) cannot possible handle such a large number of pensioners. Since times immemorial, this job is being handled by DPDOs, Treasury Offices and Post Offices (and now Banks). These agencies are now infact PDAs (Pension Disbursing Agencies) and hence representatives of the PCDA(P) as far as pensioners are concerned.

The answer to this would be training of bank and PDA staff by way of short trg capsules by the staff of CDA.

Anonymous said...


Does this post apply to "Family Pensioners" too ?

Thanks for keeping everyone informed.

Anonymous said...

Dear Navdeep Sir,
The Govt. orders on pre2006 defence pensioners, the tables, annexures I, II and III were prepared by MOD in consultation with PCDA(P). The matters containing in these orders are highly technical, a Bank staff normally find it difficult to read and understand any circulars of this nature. Therefore we cannot expect correct revision of defence pension and arrears from the Banks. However all efforts are being made by the individual Bank's Headquarters to centralise the pension payment with modern IT facilities.

It is understood that major banks like SBI and Indian Bank have out sourced (the arrears calculation) to develop a software for the purpose. But unfortunately the software was developed without correct basic data about the pensioner that had resulted in erroneous calculation of arrears and revision of pension. The SBI, which is the major share holder in this job is finding it difficult now to update the basic data of the defence pensioners. It is not possible to ensure correct pension payment without up-todate data. Moreover, most of the Banks have centralised the pension payment for their convenience.

In view of the present environment, it is suggested that the MOD and the PCDA(P) may develop one common uniform software for all the three services to be followed by all the banks. The required data can be filled by the centralised pension payment cells of the Banks which will only ensure a smooth payment.Necessary training may be given to the limited staff working at the Centralised Offices.

C.Muthukrishnan (Ex.Sgt)
Retd. Bank Employee.
Author of Pension Guide Book in Tamil named "Pension Ungal Nanban" and former Gen.Secy.Tirunelveli Dt.Exsm. Welfare Association.
Tirunelveli, Tamilnadu 627 002.

Anonymous said...

Dear Maj Navdeep,

Thanks a ton for the clarification

Lt Col (Retd) Sandeep Pandit

Anonymous said...

Hullo Navdeep,
I agree with you. I do not know if the bank staff get any additional payment for this.I hope they do.lets hope things work out ok. I have found that in course of time matters do get settled.maybe takes a while.
As you said , one will get all dues accordingly.The problem is in cases where personell especially PBORS are not clear about their dues.
I hope PCDA can conduct some sort of awareness courses for the zilla sainik welfare personell so that they can disseminate the correct info.

Anonymous said...

CDA(P) should have created a web site where all ranks/banks could have calculations.
Actually this request/direction should have come from the Defence ministry/Service HQs
I have helped many people to get their correct pension in Bangalore (Canara Bank) since I could contact their concerned official.
How ever every one is not so lucky.
Even though there was a training capsule,many bank officials are still clueless

Web site calculation is the way to go at least for the straight forward cases (as is the case with majority)

Anonymous said...

Will someone be nice to clarify following position.
The pension of Lt Col (Selection) drawing masimum pension of Rs.7550/- (50% of 15100) is fixed at 17063/-(7550 x 2.26) as on 1-1-2006. This being higher than the minimum of the scale he has no choice other than accepting this. But no one can deny him the MSP @ Rs.3000/- (50% of 6000) from September 2008. His net emoluments from Sepember should be Rs.17,063 + 3000 = 20063+ 16% of 20063 . ie.,
20062+ 3210 = Rs.23,273/- But the Bank that to State Bank of India says that they are now aware of MSP and does not give the MSP.

Anonymous said...

hullo navdeep,i would like that you inform all pensioners who have accounts in sbi for pensions to put the pension account in some other bank after their arrears are cleared as sbi has centralized all pension account at chandni chauk which is creating lot of problem for pensioner no document is available with the local branch in which you have opened account if you go for any query they will send it to chandni chauk which will take lot of time or you go to delhi to sort out the matter.the old pensioner will face lot of problem going to delhi is not easy

Golu said...

Hello Navdeep,
You are doing a wonderful job. We are all thankful to you.
This is regarding premature retirement cases - a little clarification from your expert view would be welcome. Refer the existing Annexure-II table laying out various pensions at different years of service.

For a voluntary prematurely retired Lt. Col. (S) with 20.5 years service -which is the reference row - pension shown at 20.5 years or pension shown at 27.5 years ( 20.5 years + weightage of 7 years as per pension rules). As far as I understand, Annex-II is a protector ensuring minimum pension at so many years of service.

In my understanding for such a case,
as per Annexure1 - Basic Pension * 2.26 OR
Annexure2 - Pension at 27.5 years whichever is higher would be the correct calculation.
Of course this would change IF and WHEN Pb4 becomes applicable for pensioners.

Thank you,

Anonymous said...

--- Hi Friends,

Just came accross an excellent article about the Indian Armed Forces. Felt like sharing with you all.

The Valiant
Amid all eccentricities, the Indian soldier lives to serve, dies serving
by R. Prasannan

Name the only national leader who had some experience of war. The name would surprise many. Mahatma Gandhi. He was an ambulance assistant in the Boer War.

Gandhi is associated with peace, non-violence, non-aggression and passive resistance.
But few know that days before independent India's first war broke out over Kashmir, Gandhi, fed up by Pakistan's aggressive postures, observed at one of his prayer meetings: "At this rate, I think we would have to go to war with Pakistan."
Indeed, the Father of the Nation was not advocating war. All the same, he was not a woolly-eyed pacifist as often made out to be when compared with his more 'pragmatist' contemporaries. On the other hand, even as he denounced violence, Gandhi acknowledged, rather hailed, soldierly courage, soldierly bondage and soldierly determination. Said Gandhi in another context: "A small body of determined spirits, fired by an unshakeable faith in their mission, can alter the course of history." Was he talking of the Indian soldier?
The first shots for free India were fired by Lieutenant Colonel Ranjit Rai, within days of Gandhi's 'war talk'. The long forgotten commanding officer of 1 Sikh was the first to jump ahead with a firearm into hostile territory after India became independent.
Once the dithering Maharaj Hari Singh of Kashmir acceded to India, the Indian Army was asked to repulse the Pakistani raiders who had overrun most of Kashmir and were threatening Srinagar. Rai's 1 Sikh was then deployed in Gurgaon for internal security duties. Rai flew with his unit to Srinagar, and was the first to land there on the morning of October 27, 1947. He then led his Sikhs to a position outside Baramulla, and fired the first shots for free India. Far outnumbered, he withdrew his men to a defensive ground closer to Srinagar. There, while evacuating his own wounded soldiers, Rai fell to enemy bullets.
Major Somnath Sharma could have reported sick. In fact, his medical officer had advised rest. He had a fall while doing gymnastics and his left arm was plastered. But when his unit, 4 Kumaon, was asked to fly to Srinagar, his argument was: "Only I know my men." Thus with one arm in plaster, he led his men from Srinagar to Badgam, was outnumbered seven to one, still cheered his men, and filled their magazines with his right arm. "The enemy are only 50 yards from us," read his last message to headquarters. "We are heavily outnumbered. We are under devastating fire. I shall not withdraw an inch but will fight to the last man and the last round."
He kept his word. He fell to enemy bullets to claim the first Param Vir Chakra. Had he withdrawn, Srinagar airfield would have fallen to the enemy, and the Indian Army would not have been able to send reinforcements to recapture the lost valley of Kashmir. His Kumaonis' fighting spirit could be guessed from a dry statistic. They lost 22; they killed 300.
The unsung Ranjit Rai and the much-toasted Somnath Sharma epitomise one quality that has made the Indian Army the envy of the world-an army of officers who lead from the front.
Only those who lead from the front can inspire the kind of lunatic loyalty to namak (salt, meaning paymaster), naam (good name or honour) and nishan (colours or unit) that still inspires the ranks. A loyalty that makes the jawan offer his own life for his buddy, his CO, his paltan (Hindustani for battalion), his regiment, his army, his country. Yes, the loyalty is in that order, and that is why battle honours awarded by the British while fighting Indian native rulers are still preserved. It was the same loyalty that inspired Rifleman Sanjay Kumar to volunteer to be the leading scout of the attacking column on Flat Top in Kargil, bayonet-charge into an enemy sangar, pick up the enemy's machine-gun and kill them all to claim a Param Vir Chakra.
The lead-from-the-front ethos exists even today. When the media started calling MiG-21s 'flying coffins', a 60-year-old air chief, Anil Yashwant Tipnis, flew them into supersonic manoeuvres almost every weekend to reassure his pilots and convince the world. One of the little known World War II stories is about the living legend of the Air Force, Arjan Singh. He flew a low-level sortie over the house of his corporal in Kerala to kill the latter's boredom and motivate him. In the process, the future one-and-only Marshal of the Air Force nearly got himself court-martialled. Later, the genial Arjan would tell one of his biographers: "You cannot be an aggressive fighter pilot unless you have done some unauthorised low flying."
Who can forget the handsome Capt. M.N. Mulla of the sinking Khukri who threw the last life-jacket to a sailor, sat in the captain's chair with a burning Dunhill between his lips and went down with his ship and his men trapped in the engine room. Or Flying Officer Nirmal Singh Sekhon who, instead of taking shelter when six enemy Sabre jets were bombing Srinagar airfield, took off on his Gnat and shot three of them down. His last message to his pal in another Gnat was: "I think, I have been hit. Ghumman, come, get them."
On this Republic Day, when the ceremonially-attired contingents march down Rajpath saluting a lady supreme commander, stories of Albert Ekka, Hoshiar Singh, Piru Singh, Bana Singh and others will be recounted. The marchers will be sporting on every square-inch of their ceremonial uniform a snatch of history-valiant and trivial. As trivial as the stories of the maroon cap of paras gifted by novelist Daphne du Maurier, the reversed shoulder strap of Third Cavalry whose commanding officer came to parade a hundred years ago wearing his shoulder strap the wrong way, the silver trumpets gifted by Sir Eyre Coote, or the lanyard knot on Rajaputhana Rifles officers' uniform decreed by Gen. Cariappa after giving a sumptuous dinner to Field Marshal William Slim. Incidentally, only officers from erstwhile 'royal' regiments and those specially honoured by the President are still allowed to wear the lanyard on the right shoulder.
It is this colourful mixture of the sombre and the trivial that makes military life what it is. They crack the most ribald jokes (your face will cringe if you listen to some of them recounted at the passing-out parade at the Indian Military Academy, Dehra Dun), yet are gallantly gentlemanly in front of ladies. They drink double Patialas at night and take split-second decisions while engaging 'enemy warjets' in exercises at supersonic speed the next morning. They dance to ear-splitting music at night and yet pick out the engine noise of a diesel submarine from the sea-clutter created by fast-patrol boats racing around overhead.
The armed forces are perhaps the only institution where social justice and secularism are practised without the so-called positive intervention from the state or its policy-implementing institutions. Despite there being no reservation in recruitment, the depressed classes are taken in and promoted on merit. Caste regiments, introduced by Lord Roberts in the 19th century, exist, but caste hierarchy is horizontalised into ethnic regiments. As an old story goes, a cavalry officer spotted a 'toilet object' on the road outside his lines and sent for the sweeper. After carefully examining the object, he declared, "Saab, it does not belong to my regiment."
Horizontalisation of caste hierarchy got institutionalised when Cariappa recruited a company of Bengalis into his own Rajput regiment. In the Air Force it is as un-secular, and against regulations, to sport a saffron tilak on your forehead as it is to sport a (non-Sikh) religious beard. Mountain spirits are as much worshipped by Muslims and Christians as by Hindus. Muslim pirs are reverentially thought of as defending airfields as are Hanuman shrines. Spirits of ships are worshipped, and even reincarnated as INS Delhi has been.
The soldier is drawn from the very same India that the rest of us are. Yet he is different. He generally keeps aloof in his cantonment. On railway platforms, he keeps to his 'trunked-out' perimeters which he would defend against civilian encroachers just as he would defend every square-inch of his motherland. He would allow no civilian encroacher into his military compartment in the train, yet dip into his rations to supply food to the flood-hit. He would rush to the quake-hit, rescue them, feed them with his rations, clothe them with his clothes, house them in his tents, yet allow 'bleeding-heart NGOs' to hog the credit.
He does not just kill enemy. He gives life, too. Rifleman Vijay Singh had a head injury in a road accident recently, and was lying brain dead in Army Hospital, Delhi. On the initiative of his grandfather, an ex-serviceman, Singh's eyes were donated to two blind persons, liver was transplanted on a 15-year-old boy suffering from liver cirrhosis, one kidney given to the mother of a serving soldier, and the other to an organ bank. In less than two years, the Army Hospital has carried out 18 liver transplants, the highest in a single institution in the country.
Such ironies are a dime a burst fire. The officers who eat with mess silver on dinner nights, where the band changes the tune to indicate the next course to be served, can also be seen literally living off the land-eating dust-covered biscuits after an artillery firing practice, or drinking tots of rum in iron mugs with the jawans at bada khanas. In fact, the personality of soldier changes with his uniform. In his ceremonial, he can be the stiff upper lipped, tut-tut-tutting, clipped Englishing Victorian; in his office uniform he can be the workaholic file-pusher, in the parade outfit he can be the tyrant of men, on lines he can be the genial father-figure, in mess uniform he can be the merry-maker. And mind you, he has about a dozen uniforms (office summer, office winter, ceremonial summer, ceremonial winter, mess, parade, battle fatigues summer, battle fatigues winter...) for different occasions, yet he readily went to the rescue of the tsunami-hit in the Andamans in his pajamas and vest. Who knows? Like Third Cavalry's reversed shoulder belt, they could invent some pajamas-and-vest tradition.
It is the same irony that we have about our own nation and its heroes. We are supposed to be a peace-loving country, founded by a man of non-violence. In fact, Pakistani generals used to scoff at Indian military as one of 'lalas' (traders). But it was these lalas who fought in the deserts of Longewala, bombed Karachi harbour, precision-bombed Dhaka and blasted away insurgents from the formidable Kargil heights. Incidentally, Pakistanis used to scoff at Gandhi, too, as a lala

Anonymous said...

Dear Navdeep,
Thanks for all you do...We owe you..BIG TIME...!!
I am not a pensioner but thats one rank we all will get if we survive..wont we..??!!
Hence the suggetion..
Option 1: Instead of waiting and hoping that someone else will calculate our pension for us, why dont the ex servicemen volunteer to help out the banks in calculating the same... i am sure our senior retiree offrs can work out something without me having to go into details..
Option 2: Why not do it officially. the service HQ , i am sure, can earmark a couple of offrs and staff in every div/corps to ensure banks pay correctly calculated pension. If we can spare them for AWWA activties, i am sure we can handle this too...!!

Anonymous said...

Dear Maj Navdeep,
For calculating pension, will 50% of NPA also be taken in to account along with 50% of minimum of new pay band + GP+ MSP?

Anonymous said...

Dear Maj Navdeep,
Is something there pertaining to Colonel (TS) being reduced to 22 years?

Anonymous said...

Dear Navdeep,
There is so much confusion in the minds regarding MSP and calculation of pension for pre- 2006 and applicability of Annex 2.
Will the MSP portion be added to find out the arrears..or is it to be added post 9/2008?
Can you please work out and post a notional example for a rank..say Lt Col ( sel) described in a post above.
Eg BP pre 2006 w/o DP 6743
BP pre 2006 with DP 10115
Qualifying service 20.5 yrs
Weightage 7 years

Anonymous said...

Dear Sir,
sir, first of all , please accept my regards for a wonderful service you are doing for us by this blog. sir, i would like to know that is technical allowance ans submarine pay exempted from I tax, If so then what are the relevant sections

Anonymous said...

This problem can be solved easily if the PCDA(P) issues standard pension and arrears for colonels and above who are affected as the others are covered by Annex I which is easy to refer to.A vast majority of officers retire after completing minimum pensionable service hence draw the same pension.Therefore, all that is required is to work out the standard pension and arrears from Jan 06 to Dec 08 on the basis of figures given Annex II and convey to each bank and ask them to pay accordingly.Cases of premature retirements can be dealt with seperately.

lets change said...

Dear Navdeep,

Pls keep the good work going. Keep it up. God Bless

Unknown said...

I ex sgt P.Jagannathan what to say it is simply a lie that pension is to be calculated with basic pay multiplied by 2.26.I have helped in Banks for making 6 cpc pension.The annexture of CDA no where states such calculation and only a ready reckoner on which what was drawn and an equivalent of 6 cpc.
So, with wrong informations should not misguide any one.

Navdeep / Maj Navdeep Singh said...


Oh thanks a lot for your sermon.

Now go buy a calculator and post another post. It's a rough reckoner for the uninitiated, dear Sgt.


Unknown said...

By going through all comments it is to be agreed that pay commission order is to be implemented for PBOR only if OM-350 of cda is implemented with effect from 01/01/06.
There are many whose pension is not revised as per OM_350 cda order.
So,if cda is doing a right thing , it should give a software to bank taking Rank,service,Group and age.basing on this if they make software available to banks then only justice will be done to all PBORs

Anonymous said...

Dear pensioners,
PCDA circulars are available in plenty. As someone has already suggested take a pen and paper and calculate your own pension.In the process all your queries will be cleared. TRY IT.
As always, great job by 'NAV'deep

ashwathi said...

Alright the banks have been given clear instructions by PCDA on pension calculation respect of Officers. What about the PBOR's pension. How will the banks work out thier pension with so many different catagories. The PCDA and the Mod, Dep Ex Servicemen Welfare could have made out a ready reckoner Table in accordance with the latest amendment to enable banks to disburse correct pension to the retired PBORs

Anonymous said...

Some guidelines to PDAs revising Disability Pension.
Guidelines to PDAs while revising the pension of a Defence pensioner who is drawing Service Element and Disability Element.

Refer Ministry of Defence letter No.17(4)/2008(1)/D (Pen/Policy) Department of Exservicemen Welfare, New Delhi 110 011 dt.11/11/2008 para 9 and 9.1.

It has been reported by many pensioners(Specially PBORs) who are drawing Service Element and Disability Element, that their pension has been revised in a non-beneficial manner by the PDAs. Also they are unable to convince the Bankers, therefore the incorrect revision of pension continues. Here I am trying to explain in simple terms so that the readers of this Blog will be able to help the needy and if possible convince the PDAs.

For Example if a Sepoy is drawing in the pre-revised scale as follows:-

Service element of pension.. ... .... ... Rs.1,275 (without D.P.)
Disability element @ 20% .. ... ..... ... Rs. 310 (without D.P.)

His pension will have to be revised as follows:-

As per Annexure I B.P from 1275 to 1548 .. .. = 3500

Any pre-revised pension drawn between 1275 to 1548 is to be revised to Rs.3,500/-

The Disability drawn in isolation should be added to the pre-revised cut off figure for Rs.3,500 i.e. Rs.1,548. Therefore, the 20% disability at the pre-revised rate of Rs.310 is to be added with Rs.1548 and a new revised pension is to be arrived as an interim measure as per the Govt. letter. This is the correct method to be followed for revising the pension.

Whereas some PDAs have added Rs.310 with Rs.1275 and arrived at Rs.1585 as prevised basic pension and revised the pension to Rs.3583 instead of adding the 310 with 1548 for a pre-revised pension of Rs.1858 and revised pension of Rs.4,200/-.

The method adopted by the PDAs resulted in a revised pension of Rs.3583 instead of Rs.4,200 which is incorrect and resulted in a reduction in the revised basic pension by Rs.617 and Rs.715 when D.R. is added.

As per para 9.1 of the said government order, the revised disability pension (interim) for 100% disability is Rs.3,500 accordingly, the revision will be Rs.3,500 for Rs.1275 and Rs.700 for Rs.310 thus the total will be 3500 + 700 = Rs.4200 and not Rs.3583 as done by most of the Centralised Pension Processing Cells of the Banks.

The readers of this Blog may kindly take note and help the concerned pensioners accordingly. This clarification is given following a number of complaints against the Pension Disbursing Agencies who have adopted non-beneficial method of revision.

Unknown said...

Dear Navdeep,

Thank you immensely for the clarifications.



Anonymous said...

Oh Heck...now I have to calculate my pension...I thought some one was ensuring this........shoot.....isint there a calculator on the net for this?

Is the calculator here good for Service pensions ?

hamidshahul said...

Dear Navdeep,
Some of us who had commuted the entire pension on joining the PSU were granted relief as per the directive of the Supreme Court and the pension was fixed accordingly after completing 15 years of Service. Some anamolies are also being sorted out.
So far as the Sixth Pay Commission recommendations are concerned, I gather that the fixation of pension to fully commuted cases is with the Government. Is there any help possible from the PCDA? to clarify our position. The banks are awaiting orders from the Government. Regards.
Air Vice Marshal Hamid Shahul,
Former Chairman,
Airports Authority of India.

Unknown said...

Hello Navdeep,
What has happened LtCols? The table still shows pb-3 pay structure. how did they say they have been brought to PB-4?My bank says it has no lnformation. Can you thrw some light?

CDR P lakshman

Anonymous said...

PCDA has no control/auth over SBI/Banks and hence the interpretation and execution of Sixth pay comn /Govt orders are not being correctly implemented, even till today.Intention of the Originator[Govt][as stated in the letter/ Ch II Notes] is not understood by the Executioners[Banks/PSUs].