Wednesday, 14 March 2018
RTI Request No. DEXSW/R/2018/50005 - for File Notings and other Information relating to Para 3 of the MoD letter dated 07 Nov 2015 for One Rank One Pension - Additional Notes by Aerial View
A. The following information was not provided and hence could not be included in the posts:
1. Minutes of the 5 meetings of the Working Group chaired by the CGDA
2. The fourth option proposed by Services
3. The calculations desired by JS (PMO) for which the Secretary, ESW and JS (ESW) wrote several DO letters to the CGDA, Addl CGDA and Jt CGDA
B. The following have not been included in the posts as the information (about 150 pages) is available on the websites of the Hon’ble Courts/AFT and MoD or is not directly connected with OROP: -
1. Civil Appeals and SLPs mentioned
2. O A 100/2010 in the AFT, Chandigarh
3. MoD letters in the Maj Gen Vains (retd) case
4. Pension calculations for Maj Gen SPS Vains (retd) and co-petitioners
5. Press releases by the Govt
Sub: Approval of the assumptions for preparation of the OROP Tables
The principle of One Rank One Pension (OROP) for the Defence Forces personnel was announced by the then Finance Minister in his interim Budget 2014-15 speech. After the constitution of the 16th Lok Sabha, the same has been reiterated in the President’s Address to both the Houses of Parliamnet on 9.6.2014 and also by the Hon’ble Finance Minister in the regular budget speech of 2014-15 on 10.7.2014.
2. In order to finalise the modalities for implementation of OROP, MoD constituted a Working Group under the chairmanship of CGDA with the representatives of 3 Services, DESW and MoD (Finance). The working group met 5 times and deliberated on the OROP. The Working Group considered the following 3 options:
(i)Providing maximum of the fitment tables (ready reckoner showing pay fixation rank-wise in the 6th CPC Pay Bands to Commissioned Officers as followed in the case of JCOs/ORs).
(ii) Allowing notional increments on minimum of the fitment tables for rank last held
(iii) Calculation of pensions on the basis of average/mean amount of pension for current retirees.
3. A series of meetings were held in this Ministry for this purpose. After discussion, the following methodology has been considered as appropriate for implementation of OROP for Armed Forces:
(i) Weighted average of qualifying service for each rank shall be determined with reference to retirees pertaining to year 2013, which shall be taken as the representative qualifying service for that particular rank.
(ii) Taking maximum pension drawn in year 2013 for each rank and group in case of PBORs (Personnel below Officer Rank), on the weighted qualifying service, as the representative pension for all officers and PBORs of that rank and group.
(iii) The maximum pension shall be determined from the pension drawn in rank and group across the three Services. The pensioners drawing pension above the proposed pension, shall continue to draw the same. The protection in pension of post-2006 retiree shall also be allowed.
(iv) Linkage of disability element and family pension shall also be established with the revised pension.
(v) The effective date of implementation of the proposal shall be 1st April 2014.
(vi)The tentative financial implication has been assessed a Rs 8,298.48 crore per annum.
4. With the approval of the Hon’ble Raksha Mantri, the proposal was sent to the Ministry of Finance, Deptt of Expenditure who returned the proposal stating
“At the outset, we are committed to implementing OROP in letter and spirit of the decision announced in the Budget Speech 2014-15. For this purpose, we need to work out a formulation that is not only as per the announcement made therein but is also legally tenable. The formulation proposed by MoD is open ended from the expenditure angle and it is also fraught with legal complications. The formulation seeks to revise the pension of past pensioners on the basis of maximum pension drawn in the year 2013 for each rank with reference weighted qualifying service. Firstly, this formulation goes against the Budget speech mandated OROP by closing the gap between pre and post-2006 retirees, as even the pension of post-2006 retirees would be revised. Secondly, this formulation goes against the existing time and legally tested principle of pension being linked to the pay drawn by an officer, as pay drawn by someone else would be taken into account. This will create legal difficulties. Thirdly, the maximum pension in a particular rank might have been earned by an officer as a result of quicker merit based promotion. If this pension is made applicable to others not so meritorious, it would amount to rewarding an officer for someone else’s toil. This will create frustration in the hearts of meritorious officers and may spur them to seek legal Redressal. Fourthly, if the pension of an officer with lesser service become equal with that of another with more service in that rank because of weighted qualifying service, this will create equality between two unequals, leading to legal repercussions.
I have been given to understand that an SLP filed in the Supreme Court against an order of CAT to give effect to the modified parity in pension of pre-2006 in modification of the date of 24.9.2012 has recently been dismissed. This means approximately Rs 15, 000 crore will be given to Defence pensioners as arrears. This additional benefit, which is also towards OROP, needs to be taken into consideration while working out the modalities to implement OROP.
I would therefore, urge Ministry of Defence has been advised to work out the formulation for implementing OROP within the ambit of Budget speech in a manner legally sustainable.”
5. Accordingly, the issue was re-examined by this Ministry in consultation with all the stakeholders. In the meantime, the issue of One Rank One Pension (OROP) for the Defence Forces personnel received Nation’s attention due to the agitation of the Ex-Servicemen (ESM) Associations. Hon’ble Prime Minister has reiterated the Government’s commitment to OROP and assured that it would be announced soon during the Hon’ble Prime Minister’s address to the Nation on 15.8.2015. In view of the importance attached by the Government to fulfill the promise and keeping in view of the urgency to resolve the issue in the national interest, Hon’ble Raksha Mantri discussed with all the stakeholders and finalised the proposal. On 5.9.2015, Hon’ble RM announces (through Press conference) the modalities for implementation of OROP in the presence of Hon’ble RRM, Defence Secretary and 3 Services Chiefs i.e. Chief of Army, Navy and Air Force.
6. Accordingly, a Cabinet Note was submitted to the Hon’ble Prime Minister for approval under Rule 12 of the Transaction of the Business Rules vide this Department’s OM No. 12 (1)/2014/D (Pen/Pol) (Part II) dated 5.9.2015 to the Cabinet Sectt with the following proposal:
1. The benefit will be given from 1.7.2014.
2.Pension will be re-fixed for all pensioners retiring in the same rank and with the same length of service as the average of minimum and maximum pension drawn by the retirees in the year 2013. Those drawing above the average will be protected.
3.The benefit would also be extended to family pensioners including war widows and disabled pensioners.
4. Personnel who voluntarily retired/retired will not be covered under the OROP scheme.
5. Arrears will be paid in four half-yearly instalments. Widows will be paid arrears in one instalment.
6. In future the pension would be re-fixed every 5 years.
7. OROP is a complex issue. A thorough examination of interest to retirees of different periods and different ranks is needed. The inter-service matters of 3 Forces also require consideration. This is not an administrative matter alone. Therefore, it is proposed that a One Member Judicial Committee may be constituted, which will give its report in 6 months.
7. Cabinet Sectt vide its ID No. 144/1/1/2015-Cab dated 7.11.2015 has communicated the approval of the Hon’ble PM to the said proposals as contained in Para 7 with the following modifications:
7.4. Personnel who opt to get discharged henceforth on their own request under Rule 13 (3) (1) (i) (b), 13 (3) 1 (iv) or Rule 16B of the Army Rules 1954 or equivalent Navy or Air Force Rules will not be entitled to the benefits of OROP. It will be effective prospectively.
7.7. The proposal is for constituting One Member Judicial Committee; instead the approval is for Judicial Committee.
8. CGDA vide UO No. 5699/AT-P/OROP/Vol VIII dated 6.11.2015 has communicated that Annual financial implication on account of grant of OROP including PMR cases would be Rs 7123.38 crores. The financial implication on account of arrears w.e.f. 1.7.2014 to 31.12.2015 would be Rs 10392.35 crores. CGDA has also given the assumptions for preparation of the Tables for pension. Based on the approval of the Cabinet Note by the Hon’ble Prime Minister, OROP order has been issued vide MoD letter No. 12 (1)/2014/D (Pen/Pol) – Part II dated 7.11.2015.
Proposal of CGDA
Observations of DESW
Whether the proposed pension is to be determined with reference to entire data across 3 Services both for JCO/OR and Commissioned Officers or otherwise.
The revised pension shall be determined with reference to entire data across three Services both for JCO/OR and Commissioned Officers.
The existing policy for pre-2006 JCO/OR retirees viz. considering data across three Services may continue.
Further, data across three Services for Commissioned Officers should also be considered as the pre-revised and revised pay structure under 5th /6th CPC for Commissioned Officers across the three Services are identical. Hence proposal of CGDA is recommended for approval.
Average of min. and max.pension is to be deter-mined separately for 3 Services and then highest/ average among the three Services to be allowed,Or Average of minimum and maximum pension is to be determined with reference to entire data of three Services.
The minimum and maximum pension for each rank & qualifying service shall be identified in entire data of three Services and then average of minimum and maximum pension shall be worked out.
With reference to comments as at item (1) above, proposal of CGDA is recommended for approval.
Methodology to be adopted for determining proposed pension for those ranks/groups where there are no retirees in calendar year 2013.
(i) Where data in any particular rank is not available at all, protection in pension may be allowed with reference to lower rank(s).
(ii) Where data in group X for any particular rank is not available at all, pension may be determined by adding Rs 700 (50% of X Group pay) in Group Y pension subject to protection with rates of pension determined for Group X in lower rank(s).
(iii) As Rank/Group is not available for lower qualifying service but available after certain length of qualifying service, pension for lower service will be determined by allowing cut of 3% (compounded) for each completed year to the first rate available for any qualifying service in the particular rank/group subject to protection with lower rank/group.
(i) By applying the universal formula for removal of this anomaly of a senior rank vis-à-vis his junior, proposal of CGDA is recommended for approval.
(ii) Since the pay element viz. Pay in pay band, grade pay and MSP for post-2006 JCOs/ORs in Group X draw X Group Pay as additional element, proposal of CGDA is recommended for approval.
(iii) Keeping in view the rate of increment in pay (i.e. 3%) for completing one year of service, proposal of CGDA is recommended for approval.
Protection of pension in higher rank with lower rank(s) and higher qualifying service with lower qualifying service(s).
As per past practice, such kind of anomalies had been removed by stepping up pension of higher qualifying service up to the level of pension of same rank/group with lower qualifying service and higher rank/group with same qualifying service with pension of lower rank(s) (with identical group) with same qualifying service. Therefore, same methodology shall be adopted for removing such anomalies.
Keeping in view the similar methodology adopted for removal of anomaly in MoD’s orders issued for implementation of recommendations of 6th CPC, CSC-2009 and CSC-2012, proposal of CGDA is recommended for approval.
Treatment of personnel benefited under MACP/ACP scheme.
JCO/OR pensioners retired in 2013 and granted financial upgradation under MACP scheme, shall be considered with higher ranks as per grade pay drawn at the time of retirement and not with reference to substantive rank last held. The personnel retiring with higher grade pay due to financial upgradation shall be considered with higher rank for determining pension.
The ACP scheme was introduced for Defence Forces in 2003 followed by MACP scheme in 2008 based on recommendations of 5th and 6thCPC respectively. Based on statistics provided by CGDA, there are retirees in various ranks of JCO/OR who are not earning the benefit under MACP scheme even after completing prescribed length of service due to non-fulfilment of required conditions. Hence, no rational benefit to allow benefit of MACP to who have not earned the same during service. In view of the same, the proposal of CGDA is recommended for approval.
Establishing linkage of disability pension with service pension
Since number of retirees drawing disability pension are less, rates of disability/war/injury element shall be linked with rates of revised retiring/service pension.
The rates of disability element shall be 60% of retiring/service pension in each qualifying service for 100% disability.
The rates of war injury element shall be 120% of retiring/service pension (discharge cases) and 200% of retiring/service pension (invalidment cases) in each qualifying service for 100% disability.
As per orders applicable for post-2006 disabled cases, rates for disability/war injury element is linked with pay last drawn which is reduced pro rata for lesser percentage of disability. However, under the OROP scheme announced vide (12 (1)/2014/D (Pen/Pol) Part II dated 7.11.2015, service pension/retiring pension is not linked to pay last drawn. Hence disability/war injury pension can no more be calculated based on pay last drawn. Therefore, on the lines of CSC-2012 recommendations where such linkage is already available for pre-2006 retirees for calculation of family pension (sentence incomplete in original). Hence same methodology can be adopted for calculation of disability/war injury pension. Hence proposal of CGDA is recommended for approval.
Pension tables up to 33 years of service/Terms of engagement.
Rates of pension shall be determined only up to the terms of engagement for JCO/OR and 33 years in case of Commissioned Officers.
However, in case of officers of the rank of Major General and above which get their rank at higher qualifying service, first available rate of pension at qualifying service of 33 years or more shall be treated as rates for 33 years of service subject to pro rata reduction for lower qualifying service.
As per present dispensation applicable for pre-2006 pensioners, the proposal of CGDA is recommended for approval.
[Note: the pro-rata reduction has been nullified and communicated vide PCDA (P) Circular No. 568 dated 13.10.2016.]
Treatment of Out Layers
Before determining minimum-maximum pension of pensioners retired in 2013, the out layers should be excluded by identifying cases getting benefit of higher pensions due to various Court decisions, extra increments/out of turn promotions earned by individuals, direct entry in higher ranks or cut in rates pf pay/pension due to punishments. Pension sanctioning agencies shall identify minimum/maximum cases for each rank/group/qualifying service from their data base and get it confirmed from respective Record offices/Pay Account offices to exclude these cases from relevant data.
The proposal of CGDA is (sic) seems to be appropriate and is recommended for approval.
Benefits of OROP in Pre-Mature Retirement cases
Ministry may take a decision for inclusion of PMR/Voluntary retirement/retire on own request.
MoD vide notification dated 7.11.2015 has amply clarified the issue hence no further decision is required.
OROP to PSU absorbees
Full pension n of such retirees may be revised with reference to revised pension determined for regular ranks. However, existing restored amount of pension shall continue as the methodology for the same has been finalised with reference to Hon’ble SC judgment.
Keeping in view the comments offered as at item (10) above, proposal of CGDA is recommended for approval.
9. The file was referred to MoD (Fin) for concurrence. MoD (Finance/ Pension) vide its ID No. PC I to 10 (11)/2012/FIN/PEN dated 01.12. 2015 has given its concurrence and recommended for obtaining the views of DOP & PW, being the Nodal Deptt. Now the file is submitted to the Hon’ble RM for approval of the above assumptions before referring the same to DoP &PW & Deptt of Expenditure, Ministry of Finance.
Joint Secretary, ESW
Secretary, ESW Sd/------------ 2/12/15
R M Sd/------------ 3/12
JS (ESW) File is referred to the Deptt of P & PW for views. Sd/------- 3/12/2015
Deptt of P & PW (Smt Vandana Sharma) Sd/-------4/12
DS (PP) Sd/------ 7/12
DEPARTMENT OF PENSION & PENSIONERS’ WELFARE
Ref Ministry of Defence notes from page 29/n.
2. The matter has been examined in this Department. In this connection the following observations have been made:
(i) DOP&PW is the nodal department for policy/rules relating to fixation/revision of pension of Central Government Civil Employees/Pensioners.
(ii) Never in the past, DoP&PW was consulted for laying down any rules/policy for fixation/revision of pension of Defence personnel/pensioners.
(iii)The orders for revision of pension of only civilian pensioners were issued by DoP&PW in implementation of the decision taken by the Government on the recommendations of the 6th Central Pay Commission. DOP&PW was not consulted by Ministry of Defence before issuing the orders for revision of pension in respect of Defence Forces Personnel after 6th CPC.
(iv)In fact, DoP&PW is not aware of the finer details of provisions of the pension fixation in respect of the Defence Forces Personnel.
(v) During the whole process of the decision to implement OROP scheme for Defence Forces personnel, DoP&PW was never consulted. DoP&PW is therefore, not aware of the fine details of OROP scheme apart from what has been stated in Paras 6 & 7 of the note on page 46/n.
3. In view of the above and in the absence of any previous knowledge about the rules applicable to defence personnel, it may not be desirable/appropriate for DoP&PW to comment on the various issues which have been raised in the note from page 44/n. This Department is, however, of the view that since the scheme of OROP has been approved by the Government, all the instructions/rules for implementation of that scheme would necessarily have to be within the four corners of that scheme and any modification/deviation from that scheme would need prior approval of the Government.
4. Since Department of Expenditure has been involved all through in the implementation of OROP scheme, Department of Ex-Servicemen Welfare may consult Department of Expenditure on the issues raised on page 47-51/n.
5. This has the approval of Secretary (Pension).
(S K Makkar)
Under Secretary (A)
Department of Ex-Servicemen Welfare [Ms K Damayanthi, Joint Secretary, ESW]Sena Bhawan, New Delhi
DoP&PW ID No. 38/40/12-P & PW (A) dated 9.12.2015
File No. 12 (01)/2014-D (P/P)/Part II
The file was referred to Department of Pension & Pensioners’ Welfare with the concurrence of MoD (Finance/Pension) vide its ID No. PC I to 10 (11)/2012/FIN/PEN dated 01.12.2015 and approval of Hon’ble RM for obtaining the views of DoP&PW being the Nodal Deptt on the assumption for preparation of OROP tables given by the CGDA along with recommendations of ESW. Now the file has been received back from DoP&PW with their observations on page 53N. We may now refer the file to Department of Expenditure, Ministry of Finance through MoD (Finance) for their approval.
Kind approval of Secretary, ESW may be solicited.
Under Secretary (Pen/Pol)
DS (Pension) Sd/---- 11/12/15
JS (ESW) Sd/-------- 11/12/2015
Secretary, ESW Urgent Sd/--------- 11/12/15
MoD (Finance) Sd/------ 11/12
Ministry of Finance
Department of Expenditure
Ministry of Defence (Finance) may please refer to their note on page 15/n seeking approval of this Ministry on the 10 assumptions/ methods proposed by CGDA and as examined by MoD and agreed to by MoD (Finance) as per note 44 of their file No. 12 (1)/2014/D (P/P)/Pt II.
2. It is seen that these assumptions/methods have been worked out by MoD in order to implement the OROP as contained in their letter dated 7.11.2015.
3. It is seen that this Ministry was not consulted before finalising the said letter dated 7.11.2015. However, this Ministry has no objection to the proposed assumptions as agreed to by MoD (Finance). MoD (Finance) would no doubt ensure that these assumptions are within the existing instructions regulating pension, as modified by the OROP letter dated 7.11.2015.
4. This issues with the approval of Finance Minister.
Under Secretary to the Govt of India
Ms Devika Raghuvanshi, Addl FA & JS, Ministry of Defence (Finance)
Room No. 131-E, South Block, New Delhi – 11
DoE ID Note No. 1 (6)/EV/2015 dated 31.12.2015
MoD ID No. 12 (01)/2014/D (Pen/Pol) (Part-II)
Ministry of Defence
Department of Ex-Servicemen Welfare
New Delhi, dated 1st January 2016
Shri Rozy Agarwal, JT CGDA (P)
O/o CGDA, Ulan Batar Road,
Palam, Delhi Cantt – 110 010
Subject-Assumption for preparation of the OROP tables - reg
Assumptions for preparation of the OROP tables given vide CGDA U.O. No. 5699/AT-P/OROP/Vol-VIII dated 6th November 2015 were examined in this Department. The file was referred to Department of Expenditure through MoD (Finance/Pension) for approval of proposed assumption for implementation of OROP.
2. MoD (Finance/Pension) has stated that Department of Expenditure vide their ID Note No. 1 (6)/EV/2015 dated 31.12.2015 (copy enclosed) has intimated their no objection to the proposed assumptions for implementation of OROP. However, Department of Expenditure, Ministry of Finance has desired to ensure that these assumptions are within the existing instructions regulating pension, as modified by the OROP letter dated 7.11.2015.
3. In view of the above, it is requested to ensure the compliance of instructions of Department of Expenditure, Ministry of Finance before issue of OROP tables.
Joint Secretary (ESW)
File No. 12 (01)/2014-D (P/P)/Part II
Extract from shadow file
JS (ESW) desired to (know) keeping in view of extreme urgency, CGDA may be requested to issue detailed instructions relating to implementation of OROP along with tables indicating revised pension for each rank and each category latest by 15.1.2016.
2. Assumptions for preparation of the OROP tables given vide CGDA UO No. 5699/AT-P/OROP/Vol VIII dated 6th Nov 2015 were examined in this Department in consultation with Department of Expenditure (DoE). DOE have given their no objection to the proposed assumptions to ensure that they are within the existing instructions regarding pension, as modified by the OROP order dated 7.11.2015. The same has already been conveyed to CGDA vide our letter dated 1.1.2016.
3. We may send a letter to CGDA from Secretary (ESW) on the above lines. Accordingly a draft DO letter is attempted and place opposite for approval please.
Under Secretary (Pension/Policy)
DS (Pen) OL (On Leave)
JS (ESW) Sd/--------- 7/1/16
Secretary ESW Sd/------ 7/1/2016
JS (ESW) Pl put up the draft Cabinet Note for approval of Hon’ble RM. It has to be confirmed to the Cabinet. Sd/----- 7/1
DS (P/P) - OL
F No. 12 (01)/2014/D (Pen/Pol)/Part II
Subject: Implementation of One Rank One Pension – Draft Note for the Cabinet
Noting from pages 29/ante refers.
2. The principle of OROP has been accepted by the Government and an announcement was made by the Government on 5.9.2015 on the modalities for its implementation. Since the Cabinet was not likely to meet immediately there was an extreme urgency for approval of the OROP proposal. Accordingly, Cabinet Note dated 5.9.2015 on implementation of OROP proposal was sent to the Cabinet Secretariat to solicit the approval of the Hon’ble Prime Minister under Rule 12 of the Government of India (Transaction of Business) Rules, 1961.
3. The Cabinet Secretariat conveyed approval of Hon’ble Prime Minister on 7.11.2015 to the OROP proposal of Ex-Servicemen Welfare as contained in Para 7 of the Cabinet Note dated 5.9.2015 under Rule 12 of the Government of India (Transaction of Business) Rules, 1961 with the following modifications:
Proposal at Paragraph 7.4. of the Note dated 5.9.2015 modified as: ‘Personnel who opt to get discharged henceforth on their own request under Rule 13 (3) 1 (i) (b), Rule 13 (3) 1 (iv) or Rule 16B of the Army Rules 1954 or equivalent Navy or Air Force Rules will not be entitled to the benefits of OROP. It will be effective prospectively.’
Proposal at Paragraph 7.7 of the Note dated 5.9.2015 modified as ‘The proposal is for constituting one member Judicial Committee; instead the approval is for Judicial Committee.’
4. The Cabinet Secretariat also conveyed that Department of Ex-Servicemen Welfare may seek ex-post-facto approval of the Cabinet to the proposal in the next meeting.
5. In pursuance of the Prime Minister’s approval, the Government order for implementation of OROP to the Defence Forces Personnel was issued on 7.11.2015.
6. In pursuance of the decision for constitution of the Judicial Committee conveyed by the Cabinet Secretariat on 7.11.2015, a proposal for constitution of Judicial Committee headed by Justice L Narasimha Reddy, Retd Chief Justice of the Patna High Court was sent to the Cabinet Secretariat on 2.12.2015. The Cabinet Secretariat conveyed approval of the competent authority to the proposal on 10.12.2015. Notification for appointment of the Judicial Committee was issued on 14.12.2015.
7. The Department of Pension & Pensioners’ Welfare and Department of Expenditure have been consulted in the matter.
8. DoP & PW have expressed their view that since the scheme of OROP has been approved by the Government, all instructions/rules for implementation of that scheme would necessarily have to be within the four corners of that scheme and any modification/deviation from that scheme would need prior approval of the Government.
9. Department of Expenditure has stated that they were not consulted before finalising the Govt order dated 7.11.2015 on OROP. However, they have given their no objection to the proposed assumptions to ensure that they are within the existing instructions regulating pension, as modified by the OROP order dated 7.11.2015.
10. Based on the above developments, draft Cabinet Note is placed on file for kind approval of Hon’ble Raksha Mantri for sending to Cabinet Secretariat for seeking ex-post facto approval of the Cabinet.
Under Secretary (Pension/Policy)
DS (Pen) – On leave
JS (ESW) Sd/----------------- 8/1/16
Secretary, ESW Draft Cabinet Note is placed below for kind approval. Sd/------------
Hon’ble RM Sd/-------8/01
JS (ESW) Pl put up the OM for seeking the comments of MoF and DoP&PW on DCN Sd/---12/1
DS (Pen) Sd/----- 14/1/16
2. As desired, draft OM for seeking the comments of DoE, MoF and DoP&PW on draft Cabinet Note on OROP is placed opposite for approval/signature please.
Sr AO Sd/----
US (P/P) – One leave
DS (Pen) Sd/------ 15/116
JS (ESW) Approved. Please issue to DoP&PW and DoE & FA(DS)
(Source : Aerial View blog)
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