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Thursday, November 11, 2010

Treatment of MSP on re-employment

A fresh clarification has been issued on the treatment of Military Service Pay on re-employment.

The same can be accessed by clicking here.

The operative part is as follows :

“It has been decided in consultation with the Department of Expenditure, that since the element of MSP is not reckoned in the pay fixation on re-employment, it need not be reduced from the pension either. Hence, In respect of all those Defence officers/personnel, whose pension contains an element of MSP, that need not be deducted from the pay fixed on re-employment.”


Anonymous said...

Navdeepji your comment on chatroll regarding some info in the anvil on DACP, in reply to fauzidoc, is such a welcome relief, for all doctors in the Armed Forces. Thank you, we will wait eagerly.

Lt Col V P Verma(Retd) said...

Dear Navdeep, I was re-employed earlier than 1.1.2006 upto 26.1.2008. CDA while calculating my arrears had deducted my pension from my refixed pay (MSP not incl in refixing)But the pension which they deducted included element of MSP.May I request you to let me know if this clarificatiopn will effect my entitlement.

Anonymous said...

what about DA on the MSP component - this way it would be denied

Anonymous said...

will welcome any inputs on MSP for service officers getting reabsorbed in DRDO ?

Anonymous said...


I am Subedar Kundan Singh got retirement from Army after complition of 28 Years. Sir pension fixed for the Rank of JCO in six pay commission is far less than those getting retired on or prior 1 Jan 2006. for example a Subedar has been awarded basic pension of Rs 11970/- and as per condition of 50% of last drawan Subedar got retired after 1 Jan 2006 are fixed from 9500 to 11500 as per last drawn. This creats a great discomfort only to retired pers but also thos in services. Second after 1 Sep 2008 commutation table has been revised with interest rate of Rs 8.5% where as prior commutation table was calculated on 3.5%. I have received a total of Rs 523000 as commutation amount after commutating my 50% of pension where as other pers who got retirement in same rank with same basic pension have received Rs 845000 as commutation amount. Sir I think that the issues of basic pension and revision of commutation tables requires to be addressed.

Thanks & Regards

Ex Subdar Kundan Singh