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Tuesday, December 6, 2011

Clearing misconceptions related to the applicability of the CAT judgement on defence personnel

This blog had carried a report of a judgement pronounced by the Full Bench of the Central Administrative Tribunal (CAT) related to fixation of pension of pre-2006 retirees.

After the judgement, there have been chain mails circulating all around stating that the judgement shall result in enhancement of pension of all military ranks and that the Govt had decided not to challenge the judgement in the Supreme Court. I have also received a number of mails seeking clarification on the said orders.

With an attempt to clarify the issue, the following points are enumerated :

1. The CAT judgement has laid down nothing new for military pensioners and the same subject had last year been adjudicated upon by the Chandigarh and Principal Benches of the AFT for military pensioners on exactly similar lines. While the CAT has pronounced the judgement in Nov 2011, the same had been pronounced by the AFT in Sept and Nov 2010.

2. The CAT judgement has NO, repeat NO applicability on military pensioners since the CAT has jurisdiction over only civilian Central Govt employees / former employees.

3. The Govt has NOT, repeat NOT, taken any decision about challenging the judgement, and moreover, judgements of the CAT are challenged before a Division Bench of the High Court and not before the Supreme Court.

4. The Govt has already challenged before the Supreme Court the verdict in the Majors’ case on similar lines rendered by the AFT. The Supreme Court had issued a notice on the case but no stay has been granted on the AFT judgement.

5. In case the Govt does decide to implement the CAT decision or take a favourable decision on similar lines, then the same would automatically be extended to commissioned officers of the forces also since the interpretation involved is exactly the same.

6. The scope of the controversy regarding ‘minimum of pay within the pay band’ vs ‘minimum of the pay band itself’ has now become wider and directly affects all civil pensioners of the Central Govt and all Commissioned pensioners of the defence services. It does not affect lower ranks of the defence services since the calculation formula of Sepoy to Subedar Major is different than the formula used for commissioned officers or central civil govt retirees.


Exweltrust2006@yahoo.com said...

Dear Sir,

Thank you very much for the very useful message, As you have rightly said that our veterans are all eager to know wheter the CAT judgement is applical to Defence pensonals also.

Now you have cleared the Doubts in the air.

One again we thank you Sir.

Agt.S.kanthiah, Exwel Trust.

Anonymous said...

Maj Navdeep ,
Thanks for making the situation clear.
As of now, we can only pray and hope for favorable orders for pre 1-1-06 retirees / pensioners commissioned officers , sometimes in future; that could be a year or so.
Any orders on extending the benefit of broadbanding / rounding off the disability percentages for disability pension in respect of pre 1-1-06 retired/superannuated armed forces officers ?

Lt Col (retd) Dr G Kameswara Rao, Secunderabad said...

Could u kindly tell me what is the present position of the Major's pension case Appeal of UoI in the SC? I understand that Lt Cols, Cols and Brigs (retd) have also aapproached the AFT reg PB4 fixation of pension with ref to the minimum pay in the pay band. Could u kindly let me know the particulars of that case-- which bench of AFT, Case No. and Title and what is its present status in the AFT?
Thanx, in anticipation of your reply.
Lt Col (retd) Dr G Kameswara rao

Anonymous said...

"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."

rajawat said...

the above is interpretation of maj navdeep may be true may not be in the eyes of govt . am i correct . so pl use ur discretion . '


JB Singh said...

Dear Maj Navdeep,

Aren't defence pensioner's pensions now calculated taking into account the grade pay corresponding to earlier scales ?

On first reading of the CAT judgement in the case of civilian officers, pensions were being calculated without taking corresponding grade pay into account - which the CAT has adjudicated upon

Is it that we are dealing with two issues here (1) Including grade pay for pension calculation and (2) Minimum of pay rather than minimum of pay band ?

Request clarify
JB Singh

P.Vigneshwar Raju said...

I differ on the subject that this judgment is not applicable for 'JCOs & ORs'. The concept of minimum pension and the clarification given by the CAT on the same is squarely applicable to Defense pensioners also. What ever the concept mentioned in Civilian pension resolution, the same is exactly mentioned in Defense resolution. In fact the principle was laid down by 5th Pay Commission itself but to our bad luck the so called Babus have neglected it and there was no awareness at that point of time. If we move to AFT I hope definitely we are going to succeed.

Navdeep / Maj Navdeep Singh said...

P Raju,

Kindly understand that the pensions of JCOs/OR are NOT determined at the minimum of scales but at the notional maximum of scales.

Your contention flows from little knowledge on the issue and to know more about how pensions of JCOs/OR are calculated, you may want to check the post on widows' pensions, a link to which has already provided in the instant blogpost.

If you impose the formula of minimum on JCOs/OR, it would result in massive reduction of the pensions that they are already receiving.

All adm Job said...

Dear MAjor Navdeep Singh,

With Due regards to you and your knowledge I would like to support Mr. P Raju, hoping Mr. Raju is not able to clarify in full.

You are 100% true if we simply apply Min of corresponding Pay band, the pension of JCOs & ORs will reduce what they are getting as on date as per Circular 430 w.e.f 01 Jul 2009.

However, if clause of 50%(basic of Pay Band corresponding to his previous scale) is implemented irrespective to length of service as it is in the case of the pensioners retiring on or after 01 Jan 2006 then most of the ORs will be benefited.

Since in the initial letter issued by the Ministry for pension was stating 50% pension for all and there was no rider of length of service however, added later on by the so called super BABUs siting in Min.

I would like to say this is second biggest anomaly in pension for pre-2006 is 33 yrs clause though it was recommended by the 6th CPC (para 5.1.47) & Para (11.33 & 35) and accepted by Govt under point no. 12 at page no. 8 & 9 in their notification No. 305 dated 29th August 2008.

Rajeev Behal

Anonymous said...

Dear Major Sir,

If Govt is willing to implement the CAT judgment, even the JCOs and ORs will be benifitted. For example at present a Naib Subaidar retired in 1996 will get only Rs6780 as his basic pension as per the COSs committe reccomendation. if the CAT judgement is implemtented, the NK Subaidar will get Rs 7750/- as basic pension. The minimum pay in the NB Subar in 2006 Jan 1st is 15500/- and 50% of this amount will be eligible for NK Subaidar. As the length of service is not considered for caluclating pension.

Let us hope all will be benifieted and Govt will not go for appeal as the end benifiecery is Babus.

Jai Hind

Jose Mathew

Anonymous said...

Dear Major sir,

The 6th CPC report clearely says the pension should not be less than 50% of the minimum pay of the( BP+Rank Pay+Gradepay+X pay)same rank in service. if CAT judgement is implemented the 6th CPC formula will superseed the modified parity given by COS in 2009 as the pay commission report accepted by govt clearely says which ever is benificial to the pensionar will be paid. for some the modified parity is benifited( with morethan 20 years of service) others with 15 year service, th3 CAT judgment is benifited.

The VI CPC while rejecting the OROP, it has clearely said the minimum parity given to civilians will also will applicable to sevice pensionrs.

Only thing our dear beloved Babus has cheated both civilian and service pensioners by making a new formula which is not mentioed in the CPC report. The ampount reached as 50% has again apportioede by dividing by 33 years of servivce.

for example: JCO with 15 years service retired on 31 Dec 2005 supposed to get 7750 as basic pension. Babus five only 4900 as basic pension beccuase they have linked this amount to 33years of service.

let us hope for the best

Jose Mathew

pawan said...

minimum pension in 1988 375/-rs
minimum pension in 1997 1275/-rs
minimu pension in 2006 3500/-rs

minimum pension = 1275/375= 3.4
= 1275*3.4= 4335/
how can benifit in under 6cpc there is ratio = 3500/1275=2.74