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Friday, November 25, 2011

Pension enhancement of widows likely. On Sonia’s intervention ?

People following the subject would be aware that while the service pensions of ranks from Sepoy till Subedar Major were enhanced by the Govt, no such orders were passed for family pensioners. The corresponding enhancement was not effectuated since the top brass at the MoD was briefed by the Pension wing of the Department of Ex-Servicemen Welfare that the Committee of Secretaries (CoS) which had examined pensionary anomalies, had made no recommendation on the subject of family pension. Ms Neelam Nath, the then Secretary ESW, was also convinced of the logic which actually emanated from Section Officer / Under Secretary level.

Prior to 01-01-2006 (6th CPC), pension in respect of ranks from Sepoy to Sub Maj was calculated based on the top-end (maximum) of the scales rather than the bottom as was applicable to Commissioned Officers and civilian retirees. After the 6th CPC, the service pension calculation formula for all ranks and services was changed to 50% of minimum of pay band + Grade Pay (GP) + Military Service Pay (MSP) + X Group Pay (where applicable) while the formula for family pension was 30% of the same above mentioned components.

The CoS examined the issue and came to the conclusion that the edge enjoyed by personnel other than Commissioned Officers needed to be restored and maintained. While it was not possible to grant pension by taking the maximum of 6th CPC figures since Pay Scales had been abolished and replaced by Pay bands and since the maximum was common for many ranks bunched together, it was decided that the pension of such personnel would be calculated by taking the 50% of notional maximum of 5th CPC scales within the 6th CPC pay bands + GP + MSP + X Group Pay (if applicable). The notional 6th CPC maximum of 5th CPC scales was calculated by using the universal formula of ‘Old 5th CPC maximum X 1.86’, the resultant figure was the fitment within the new 6th CPC scales. Though this definitely resulted in an enhancement of pensions of retired defence personnel themselves, but did not translate into higher family pensions. This new enhancement for service pensions was made applicable from 01-07-2009.

Hence in the net result, with effect from 01-07-2009, while the service pension was being calculated based on the notional maximum of 5th CPC scales within the 6th CPC pay bands, the family pension continued to be calculated on the basis of minimum of the 6th CPC pay bands. As mentioned above, whenever the said anomaly was projected to the MoD, the standard reply was that no such enhancement was recommended by the CoS while the truth was that no such proposal was even examined by the CoS, but naturally it was a logical outflow from the enhancement of service pensions and hence needed to be examined in that light. Since service pension is basically fixed at 50% of the pay and family pension at 30%, logic necessitated that after the enhancement of the fitment, the notional pay for both kinds of pensions had to be the same since both were conceptually similar except the percentage.

It is however learnt that in view of the fact that the Raksha Mantri was personally briefed about the entire issue and even Ms Sonia Gandhi was sounded on the subject, the Ministry is now open to enhancement of family pensions also on the same lines of ‘notional maximum’ as implemented for service pensions. Much credit goes to the IESM for continually keeping this very important subject in limelight. The Chairperson of IESM has been informed about the changes on the anvil personally by the Raksha Mantri. Though time would tell how things shape up finally, but this in-principle acceptance of the rectification of this very grave anomaly is a worthy substantial step in the right direction.

12 comments:

Exweltrust2006@yahoo.com said...

Dear Sir,

It is very good and encouraging news about the Enhanced Rate of family pension. Atleast they should have agreed for 50% on the Minimum of scale which itself is more than the Normal pension of Rs.3500/-.

Any way the matter has been repeatedly raised and now it has taken some shape. Let us hope to receive the instructions soon.

It is a pitiable that the eligible Enhanced Rate family pensioners may cross the Enhanced Rate period and the PDAs will not reopen their cases. Only people like us to go to Banks and take up their cases .

Let us hope for the best.

Thank you once again sir

Sgt.S.Kanthiah, Exwel Trust.

Anonymous said...

Dear Sir,

Many Congratulation. You have rightly said that "Much credit goes to the IESM for continually keeping this very important subject in limelight". In the same line if we constantly chase the GOI, we may one day succeed in getting our right demand of "one rank one pension" JAI HIND.

Harry said...

Thank God finally some good sense prevailed upon Ministry of Destitutes and Dushmans of ESM Welfare!!!

Kudos to IESM for relentlessly following the issue doggedly.

SATTY'S CORNER said...

At V CPC you got 50% of the last salary as pension.In 6 CPC you are getting 50% of 50% down to 30% This is how it works:Take case of PB4.Lt Col
Rightfully you should get 50% of max of pay band 67000 ie 33500.What you are getting is 50% of min of payband ie 50% of 37400.Your actual pension should be 33500 plus 50% of GP + 50% of MSP ie 40500 but you have been fixed at 25700.50% of (37400+8000+6000)This is how the boos fool!
Strong case for taking up.

PBOR said...

@Navdeep. Sir see if it is possible to provide a link to the table of service pension after taking in to account the 50% of notional maximum. Thanks.

Anonymous said...

Dear Navdeep,

Would it also affect the rules for Liberalised family pension?

sudeshkumarb said...

SIR Please note that not once THE IESM has taken up the pension cases of HONORARY OFFICERS.They want us to become members .Thats the reason more 5than 200 HON OFFICERS went to AFT Chandigarh and won the case for thier pension which has not been fixed as per the formula accepted by the Govt ie 1.86 X basic pay of Vth CPC last drawnPLUS 50%of GP+MSP.

Raghubir said...

Credit for engineering this change of heart in favour of the widows with regards to their pension goes entirely to the IESM.Instead of mere steadfastness -meeting the leadership could only overcome the stonewalling which has been the rule rather than the exception.

ranjay said...

kisi senior mein kahan dum hai....
IAS logon Ke bharose ab hum hai...
ab hamen kis cheez ka gum hai...
Ab to soniaji ki dham dham hai...
unke bina fauj ek, do,tham hai...
jai sonia....jai sonia...

Anonymous said...

should the pension for ESM retired before 1-1-06 NOT be fixed as 50% of total of MSP,Grade Pay and basic pay
( mid of the new pay band) ?
Yes ,of course that should be for 33 years of qualifying service and to be reduced / increased on pro-rata basis for lesser / more service.
I read some where about such orders being issued for civilian central employees.

Anonymous said...

Everybody wants credit, especially IESM. Till now nothing has happened regarding enhancement of family pension except IESM wanting credit.

Anonymous said...

Major Navdeep Singh, l realized after 15 years that I was being paid ordinary pension instead of special family pension. After writing to SBI, they sent me the arrears, and I had to give almost 30 percent in taxes. Am I not eligible for tax exemption? Moreover SBI has not paid me any interest at all. Please guide me in this regard. Do u think I am eligible for the interest as the RBI ruling of 2008. Is SBI not supposed to give it automatically. Please help.