Saturday, September 10, 2016

PENSIONS : Anticipating 7 CPC Armed Forces Pension Formulations Based On Example Of Civilian Pensioners

September 9, 2016
Recommendations of 7 CPC contain very clear-cut instructions on how OROP will be achieved for all by defining a process of fitment by “levels” and index numbers based on increments drawn by pensioners in the pay-band in which they had retired, though in the case of some classes of armed forces pensioners, such as older officer pensioners with time bound ranks, it could create anomalies & disparities. The recommendations also include an alternate and less sophisticated manner of fixing 7 CPC pensions as a stop-gap measure, viz., the 2.57x multiplier.
Instructions on pensions for armed forces pensioners certainly seem to be some time away. Some impressions can be formed from the example of the “Resolution” on civilian pensions. The Resolution dated 04 Aug 2016 for civilians has restricted their pension fixation to the 2.57x calculation, leaving the index based fitments to a committee as per item 11 of annexure to the resolution.
There are two examples of older civilian pensioners cited in an Office Memorandum, also dated 04 Aug 2016. These too are based on just the 2.57x calculation and throw no light on the manner in which the 7 CPC matrix index number based pension fitments will take place, except in a passing reference at para 11 of the O.M. to the committee to be formed for the purpose.
Unfortunately, unlike for civilian pensioners, in the case of armed forces, the 7 CPC report itself did not have any examples from a CPC regime earlier than VI CPC. In their case, matching the QS of older pensioners with index numbers of the matrix can prove to be a truly mind-bending exercise. On-going articulation of points of view amongst the online veteran community doesn’t reassure that the negative implications, of settling for just the 2.57x calculation, have been fully grasped. The most recent example of the QS vis-a-vis index number issue does appear to indicate armed forces pensioners will be sold short if a clear-cut way is not defined for matching present matrix index numbers with QS of older pensioners.
In many cases, especially for time-bound rank pensioners, some unambiguous and formal delineation of principles also seems to be called for in the matter of defining appropriate higher matrix levels for older pensioners who had retired in lower time-bound ranks in-spite of having rendered as much, or more, service than current pensioners who retire in the higher levels nowadays due to faster time-based promotions, e.g. Level 12-A being assigned to older Major pensioners who had retired with 20 yrs or more of service.
These additional complexities in the case of armed forces pensioners call for greater vigilance lest 7 CPC anomalies get added to the ones still unresolved from VI, V and probably even IV CPC. OROP anomalies are an additional consideration.
(Source : )


  1. I expect nothing good from present dispensation.

  2. Sir...after OROP every rank fixed their basic pension. So firstly release 7th CPC pensions by multiple with 2.57 and arrears accordingly. There after any alterations may done and difference amount to be paid lateron. By doing this every body happy

    1. I feel the services HQs have taken right decision to wait for the anomalies to be resolved first. If we accept it now the babus at the MOD and MOF will get wrong messages, Remember that if the anomalies left unresolved these will meet the same fate as for the anomalies came to light after 6 C PC. Some of the ESM may be financial hardship but please have faith in the organisation in which we have served.My request to blogger is that you have done very good service to the ESM community by providing us lots of valuable info but please edit the replies or the comments of some of the readers. These comments are based on lack of knowledge of system on their part and divisive and damaging in nature . The babus at Delhi may be having a hearty laugh at us. So pl dont publish such comments.

    1.The recommendation regarding payment of full pension on completion of 20 years of qualifying service will take effect only prospectively for all Government employees other than PBORs in Defence Forces from the date it is accepted by the Government (6.5.3.)

    2 All past pensioners should be allowed fitment benefit equal to 40% of the pension excluding the effect of merger of 50% dearness allowance/dearness relief as pension (in respect of pensioners retiring on or after 1/4/2004) and dearness pension (for other pensioners) respectively. The increase will be allowed by subsuming the effect of conversion of 50% of dearness relief/dearness allowance as dearness pension/dearness pay. Consequently, dearness relief at the rate of 74% on pension (excluding the effect of merger) has been taken for the purposes of computing revised pension as on 1/1/2006. This is consistent with the fitment benefit being allowed in case of the existing employees. The fixation of pension will be subject to the provision that the revised pension, in no case, shall be lower than fifty percent of the sum of the minimum of the pay in the pay band and the grade pay thereon, corresponding to the pre- revised pay scale from which the pensioner had retired. (5.1.47)

    Accepted with the modification that fixation of pension shall be based on a multiplication factor of 1.86, i.e. basic pension + Dearness Pension(wherever applicable) + dearness relief of 24% as on 1.1.2006, instead of 1.74
    In the above notification"The fixation of pension will be subject to the provision that the revised pension, in no case, shall be lower than fifty percent of the sum of the minimum of the pay in the pay band and the grade pay thereon, corresponding to the pre- revised pay scale from which the pensioner had retired. (5.1.47)" is called the OROP.The 7th CPC has given this paragraph in the form of a table.A am I right or wrong?

  4. As for as to my opinion and knowledge even if the revised 7 cpc pension fixed multiplying by 2.57 after OROP implementation it will not be correct. Because my basic pension as Hav Clerk should have been fixed adding more of RS 1500/_ if the correct implementation of orop was carried out. Since there is a dilution still exist with regard to OROP, whatever formula they adopt that will not bring anything favourable to us but the ultimatum is anxiety.

  5. Why can't the salaries and pensions of armed forces be based on ratio based. There should be a ratio fixed for the ranks of a General to Sepoy. This will do away with any anomaly for ever. The major issue will be the ratio, which can be decided once for all by the representatives of officers, pbor and beaurocrats.

  6. आप लोग नया पे कमिसन लागू होने देंगे की नहीं मुह बंद रखो भाई ? क्योंकि आप लोगो का पेंशन ज्यादा है आप लोग तो बड़े आदमी हो भाई थोड़ा जवानो के बारो मे सोचो ! आप लोगो का फायेदा जवानो को परेसानी कोई अंडा; के लिए ब्रेड के लिए, चिकेन के लिए , दूध के पैकेट के लिए मतलब फ्री राशन के लिए लड़ाई लड़ी जा रही है ! जावनों के बारे मे बताओ तो लिखिए जबाब मई दूंगा! जैसे सेना मे जवानो को टार्चर किया जाता था वही अब सरकार कर रही है

  7. Commission में जवानो और penssioner को क्या फ़ायदा कृपाकर बताएन्गे.जो मिलरहा हे कम से कम मिलने तो दीजिए.