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Friday, September 30, 2016

7th Central Pay Commission notification for defence pensioners issued: Some Good News, Some Bad News- good on OROP fitment, very bad for rates of disability pension

The Ministry of Defence has today issued the notification for grant of pensionary awards based on the recommendations of the 7th Central Pay Commission. The same can be downloaded and accessed by clicking here.

While there is good news for regular pensioners in the sense that the Government has decided to grant a fitment of 2.57 on the pension drawn by pensioners as on 31 Dec 2015, which includes 'One Rank One Pension' (OROP) pension drawn on the said date, the notification very regressively has reduced the amount of disability benefits admissible to disability pensioners. They have relegated the rates to the ‘slab system’ as was prevalent prior to the 6th Central Pay Commission thereby placing defence disability pensioners at a sharp disadvantage as compared to civil disability pensioners.

My analysis on each entry in the notification:

1.    Revision of Pension of pre-7th CPC retirees: A good move. Both options accepted. The first option of notional pension based on fitment as per service in the pay level in which the person had retired has been accepted subject to feasibility study. The second option of multiplication fitment of 2.57 of the pension as on 31 Dec 2015 has been implemented with immediate effect. This translates into OROP X 2.57. One must congratulate the Defence Services Headquarters, especially the Adjutant General of the Army, for ensuring the judicious implementation of this aspect. This also puts an end to the needless rumour-mongering that OROP shall not be configured with the new pay commission modalities. 

2.    No comments required.

3.    No comments required.

4.  Pre-2006 Honorary Naib Subedars: The stated position of the 7th CPC that this ‘closed matter’ may not be reopened has been accepted by the Government. This is clearly not in order. It may be recalled that while post-2006 retiree Honorary Naib Subedars were paid the pension of a Regular Naib Subedar, the same was refused to pre-2006 retirees. This statement of the 7th CPC and its acceptance is legally not in order since there already is in force judicial dicta, upheld till the Supreme Court, providing that pensions of pre-2006 Honorary Naib Subedars are also to be calculated based upon the pay of a regular Naib Subedar. The non-acceptance of this issue means that litigation on the subject shall continue since the anomaly has not been addressed.

5.    No comments required.

6.    Pension of Territorial Army personnel: This issue has also been addressed by way of judicial verdicts and should have been resolved by the 7th CPC.

7.    No comments required.

8.   Disability pension rates: This is the single most condemnable recommendation by the 7th CPC which has strangely been accepted by the Government. Frankly, I never thought that this regressive recommendation would ever be accepted. While recommending this aspect, the 7th CPC had made unfounded and uncharitable remarks against disabled soldiers by casting aspersions on those who have incurred disabilities while in service. I had discussed the issue in detail earlier on this blog post dated 21 Nov 2015. While the heading of this entry is “Enhancement in rate of disability pension”, it has actually resulted in a massive decrease resulting in a payout even lower than 6th CPC rates. The 6th CPC had removed an anomaly wherein disability pension was being earlier calculated based on percentage of pay for civilians but on slabs for defence personnel. This (the slab system) was leading to an enormous discrimination between civilians and defence personnel except at lower ranks where defence personnel were getting a slightly better deal. The 6th CPC hence equated civilians and defence personnel after which in both cases the disability pension was directed to be calculated on percentage basis (30% of emoluments for 100% disability). A protection clause was further introduced so that the lower ranks did not face any disadvantage due to the percentage system. All anomalies were therefore addressed for all ranks and all sections of employees. The 7th CPC, based on totally vague and unsubstantiated grounds, which should have been actually expunged from the report itself, recommended the reversion to the slab system. This is totally uncalled for and should be strongly contested by the Defence Services HQ by requesting the Raksha Mantri to immediately review these orders. The arbitrariness of this decision becomes evident from the following chart:

(100% Disability)
Rates under the 6th CPC as on 31 Dec 2015
Rates applicable after the 7th CPC as on 01 Jan 2016
Lt Gen
Rs 52,560
Rs 27,000
Head of Central Armed Police Force
Rs 52,560
Rs 67,500

9.  Broad-banding of disability pension: The Government has accepted broad-banding of disability pension for cases other than invalidation, that is, all cases irrespective of manner of exit. But the catch is that this has only been made applicable from 01 Jan 2016 whereas the anomaly arose from 01 Jan 1996 which the Supreme Court adjudicated. Hence, regrettably there would be no change or reduction in litigation for claims of broad-banding from 01 Jan 1996 till 31 Dec 2015 as mandated by Supreme Court orders. Practically this helps only those who retire on or after 01 Jan 2016 while for the rest the legal position for claiming benefits remains the same.

10. Enhancement of old age pension for disability and war injury pensioners: The strangest part of this entry is the fact that the Defence Services had indeed asked for this, and the commission actually rejected it and the Ministry of Defence has accepted that rejection. I say it is strange because the Government had already clarified way back in 2010 that additional old age pension very much applies to disability and war injury pensioners. Hence the Defence Services HQ had demanded and the 7th CPC and the Ministry of Defence rejected something that stood granted and clarified way back in 2010 by the Government which becomes clear from this letter issued in 2010 which can be accessed by clicking here. This single instance should be an indicator enough of the expertise and institutional memory available at various echelons of our systems. Unfortunate, to say the least!

11. Disability Pension to “Neither Attributable to, Nor Aggravated by Military Service” Cases: The recommendation of the 7th CPC is redundant in this aspect since the Supreme Court and various High Courts have already ruled that in case a person is fit at the time of enrollment, then any disability arising during service is deemed to have a connection with service thereby entitling a him/her to disability pension.

12. No comments required.

13. No comments required.

14. No comments required. 


Unknown said...

Sir,a very serious question,,those officers who are already drawing more disability pension than what 7 CPC recommended,by virtue of orop,can it be reduced?I mean orop dp+da

Anonymous said...

Sincerely thank you sir.
Very well explained about the Resolution.

Sgt.S.Kanthiah, veteran
Exwel trust.

Anonymous said...

Thanks for the information.
Hope to see PCDA(P) circular soon on the subject.
Disabilty element of pension MUST be fought by services HQs to be at apr with civil employees i.e. @ 30% of notional pay for 100% disability.
Also broad-banding of disability percentages MUST be applicable for superannuation cases also .
All ESM associations MUST take up these matters with Honourable Defence Minister
on URGENT basis; otherwise we are going to be at a great loss.

Col B Bareth said...

The reason cited by 7CPC to revert back to slab system casts aspersions on the character of Defence officers specially Gen rank of officers. Doesn't here lie a case for criminal defamation.Cant a PIL be filed or even better a criminal case of defamation against Justice Mathur. Does any law grants immunity to the ill informed Justice Mathur for making such imputations which lowers the reputation of Defence officers. If you don't want to give don't give but don't malign us.

AKJ said...

As Lt Colonel(Time Scale) , retired prior to 1-1-2006, with more than 33 years service
and with 40% disability ; I am drawing disability element @ Rs 8344 pm + 10430 ( DR @ 125%)Total Rs 18774.
With the resolution , I will be getting only 40% of 27000 = 10800 as disability element wef 1-1-2016.
Straightaway REDUCTION of Rs 7974 pm .
Hope people sitting at positions of authority will take note of the anomaly created
AND get it rectified at the earliest.
Rate as applicable for civil employees should also be applied to ARMED FORCES pensioners.

Unknown said...

Any update on waiving of 33 yrs service for full pension for Def Services.For Def viva already paid in Aug 16.

RK said...

The disability pension being paid by PDAs as of today is as per a table issued alongwith orop tables. This orop disability table is in consonance with above table i.e. max 27000/- for 100% disability worked all way for all QS and all ranks.

However, 125% DA is also being paid on the basic disability pension. This is on ground situation in the orop regime.

What happens to that 125% DA Now?

Unknown said...

Shall we also start a pettition against reduction of ammount to 27000 from 30% of last pay drawn for disabled milatary personels

Wg Cdr K M Vijayan said...

Great news indeed. Congrats to all. Kudos to the Govt. Thank you Maj Navdeep for your ellaborare update,

Wg Cdr (Veteran) Dr K M Vijayan

Indranil said...

So, when will will we receive the new pension?

AS said...

" Disability pension rates: This is the single most condemnable recommendation by the 7th CPC which has strangely been accepted by the Government. Frankly, I never thought that this regressive recommendation would ever be accepted."

This was one of the four Core Anomalies projected by the Chiefs for resolution,pending
which they were to withhold implementation of 7CPC orders.Since it is equally applicable to the serving (on retirement) ,wonder what is the current status on this.Have the Chiefs
accepted non resolution of this anomaly ? or is the issue still pending ?

Since the Dis Pen is being REDUCED (instead of being increased by x 2.57 ) by almost 50% from the current level,is it not a fit case for seeking legal remedy by the affected pers by going to AFT/Courts.Can the Service HQs go to the courts against GOI on the issue.

Sahana R said...

When the notification clearly confirms "Pension as has been fixed vide 05th CPC " and not the award of OROP.
How are you imagining this 2.57 multiplication will be on OROP when the 7CPC could not have been aware of its/OROP's very implementation in Feb 2016 .

Anonymous said...

while the broad banding of disability has been granted wef 01 Jan 2016, wont it mutatis mutandis apply to previous orders, similar to dispensing the 33 yr qualifying service rule for pre-2006 pensioners?

Unknown said...

Can the actual credit be expected before this month end ??

Rahul said...

Thanks Maj Navdeep for the information and rightful evaluation. As you mentioned broad banding of disability pension would be applicable only to those retiring on or after 01 Jan 2016, what would that be for this discriminatory slab system of disability pension. Will it be applicable to those retiring after 01 Jan 2016 or also to old retires of pre Jan 16. Also broad banding is applicable to those getting above 20% of disability pension. That means those getting exact 20% are left out of it.

Anonymous said...

It is understood that 7 CPC in its report has casted aspersions against disabled soldiers and made some degrading and uncharitable comments. If such is the case then there is a case for filing a case in the H'ble Apex Court against 7CPC.

Mahesh said...

Sir, under the pension calculation farmula of 7th cpc, there seems one anomally what i have worked out is a anomally in pension of a cpl who have served 20 years 5years as lac and 15 years as cpl retired as a Cpl, and a a sgt who have joined together worked as 05 years as Lac 09 years as cpl and 6 years as SGT.

The pension of a cpl (total service 20 years)wil be giving 15 increments as cpl Rs. 39800(min with 15 increments of cpl)+5200MSP=45000/2=22500
pension of a Sgt (total service 20 years)who have served 6 years as SGT pension will be 34900(min of Sgt plus 06 increments)+5200 MSP=40100/2=20050.

experts please look into if i am wrong.

With Thanks
Mahesh Dhaka
Ex Sgt

Unknown said...

Dear Sir,

Will the War injury element be covered under the same slab as disability pension?


Capt JD Sandhu (Retd)

Kalra said...

Dear Navdeep
Pension of a Brigadier(OROP)will be 37570 on 31.12.2005
On 1.1.2006 it will be 37570*2.57=96550
Pension of a Maj Gen retiring after 1.1.2006 will be 144200/2=72100

Unknown said...

Hi Maj Navdeep Singh
Thanks for an informative post on 30 Sep 2016 on 7th Pay commission Notification specially serial 11 on disability pension cases.

Could you kindly give me ref of Supreme Court directions with details regarding the 'Non Attributable Non Aggavated cases'. Recently I have been denied disability Pension on account of Insulin dependant Diabetes which I acquired during Military service in Peace station.
This will help me & other pensioners to file an Appeal to Appeal medical Board.
Thanks once again
Colonel Pradeep Joshi (Retd)

Rajeev said...

Dear Maj Navdeep,
Is the disability pension part under review or this has become Gods word? Can this be challenged in court?

Best Regards

Shankar said...

Sir, What do you say for the BJP Govt message to all newspapers that disability pension has not been reduced. Let me state my case. I was getting Rs 7555 for 40% disability + 125% DA which comes to Rs 16999. As per new 7the CPC I will get only Rs 10800. Is this a joke on us disabled soldiers.

Unknown said...

Dear Major Navdeep Singh,

Notification for pre 1 Jan 2006 Defence pensioners has been issued by MOD Govt of India on 30 Sep 2016. But issue of circular by PCDA PENSIONS ALLAHABAD is on held. Rumors are in the air that Govt is mulling on disability pension and also the enhancing of calculation formula from 2.57 to 2.86. could you please put some light.

Your Sincerely,

Anonymous said...


There are some SL officers who have more than 33 years of QS but retired between 02 Jul 2014 to 31 Dec 2015 and not considered by OROP .This has resulted into juniors having 33 yrs and above QS and retired due to age factor before 01 Jul 2014 are getting more pension in OROP the same lot will get another jump in 7CPC.

For example
Retirement age of a SL officers is 57 years and their pre commissioned service are
also counted for QS

Offrs A and Offr B are SL Officers and commissioned together in the year 1994
Offr A's age at the date commissioning was 39 years and Offr B's age was 36 years
Offr A retired at the age of 57 in 2012 with a total QS of 37 years whereas offr B retired in 2015 with a QS of 39 years.
After OROP ,Offr A got a basic pension of Rs 34765 but offr B's basic pension is only 31630 since he retired after 01 Jul 2014.
Offr A will get another jump wef 01 Jan 2016 when OROP is multiplied by 2.57 where as Offr B even though same date of commissioning and served three more years than Offr A will get only pension as on 31 Dec 2015 x 2.57 in 7CPC
Pension of other junior officers who are retired after 01 Jan 2016 are also protected by the 7CPC.

How to sort out this anomaly ????

Anonymous said...

Sir, Your kind guidance is required :
1. Whether the pension fixation in accordance with PCDA Circular No 568 dated 13.10.2016 for pre 1.1.2006 defence pensioners, who hold their Rank
last held for less than 7 months is to be done as per Rank Last Held or Rank for Pension or the scale from which the pensioner had retired.
2. Whether the pension fixation in accordance with PCDA Circular No 570 dated 31.10.2016 for pre 1.1.2006 defence pensioners, who hold their Rank
last held for less than 7 months is to be done as per Rank Last Held or Rank for Pension or the scale from which the pensioner had retired.
Ex JWO Rohit

Unknown said...

Both circulars are silent about fixation pension whether last rank held was less than or more than seven months. Circular 568 gives the brake down of service served and 7th CPC is as per multiplication by 2.57.