Thursday, June 26, 2014

Controversy over pension of pre-2006 Central Staff & Ex-servicemen: The Asian Age News

It may be recalled that there were anomalies in the fixation of pension of pre-2006 Central government retirees with effect from January 1, 2006. The question was whether pension was to be calculated based on the minimum of each grade/rank within the newly-introduced pay-bands or on the minimum of the pay-band itself.

The said anomaly was resolved by way of judgments of the Central Administrative Tribunal (CAT) as well as Armed Forces Tribunal (AFT). The judgment of the CAT was challenged by the government before the Delhi high court. In the meantime, however, the government itself half-heartedly removed the anomaly by granting the benefits from September 24, 2012 rather than January 1, 2006, which was the date of the inception of the anomaly. The verdict of the AFT was challenged by the government before the Supreme Court.

Hence the exact controversy now stood narrowed down to whether the benefits of the correct pension were to flow from January 1, 2006 which was the date from which the 6th Central pay commission recommendations were implemented or from September 24, 2012 which was when the government had decided to remove the anomalies in the pension structure after the said pay commission.

The controversy was resolved by the Delhi high court, which directed that after removal of the anomaly, the pension arrears were to flow from January 1, 2006 and not from the future artificial date of September 24, 2012. Never to respect well-rounded judicial verdicts, the government challenged the decision of the high court before the Supreme Court. However, the Supreme Court was pleased to dismiss the SLP filed by the government in July 2013.

Bent upon prolonging the agony of military and civil pensioners, the government has filed a curative petition in the Supreme Court challenging grant of pensionary benefits from January 1, 2006. The curative petition is not an ordinary remedy and is usually meant to cure “gross miscarriage of justice”. Hence by filing such a petition, the capable and worthy officers of our Central government ironically and indeed contemptuously, insinuate that the grant of correct and legal pension to its military and civil pensioners is “miscarriage of justice”.

Legal eagle Major Navdeep Singh (retd) has brought out the facts, which prove how our officialdom has reached its nadir and what a mockery it has made of the system by making judicial verdicts get overridden by administrative egotism. “So sad is the situation that executive pride overtakes what is logical, prudent or just. And the political executive remains a rudderless rubber-stamp,” states Major Singh.

“Ego-fuelled highhandedness is what the system is known for. How could the courts hold the hands of old pensioners? The government is always right. Government policies are sacrosanct and sacred, or so the system believes,” commented Major Singh. And hence government went in for a review petition before the Supreme Court urging the top court to review its order dismissing the Union of India’s SLP.

Meanwhile, without properly disclosing the dismissal of the SLP, the government filed many more similar petitions before the Supreme Court and got them tagged with the military pensioners’ matters which dealt with the same subject. The Supreme Court was pleased to dismiss the review petition filed by the government against the pensioners.

In any democracy, this would have meant closure to the agony of litigating pensioners. But no, that is not how things work in our country. The Union of India/Central government then filed a curative petition against the same verdict. The curative petition came up for hearing before a 5 judge bench of the Hon’ble Supreme Court, which was pleased to dismiss the same.

“But would this be closure to their agony?”, asks Major Singh, who is well versed with the attitude and tendencies of our babus. Since this cynical question was asked by Major Singh before the unprecedented 2014 elections, which brought in the new BJP government, then those pensioners for whom this matter is applicable can now dare to hope for some light at the end of a long tunnel. Because not only does the BJP’s manifesto include implementation of One Rank One Pension, the matter is on its 100 days list too. The Pay Commission Cell of Army HQs is expected to make a presentation to the new defence minister shortly. Further good news following President Pranab Mukherjee’s recent address is that he praised the armed forces and promised that the new government would: 1. Expedite modernisation. 2. Fill up vacancies. 3. Institute a National Commission for Veterans. 4. Have a National War Memorial constructed. 5. Grant One Rank One Pension. 6. Have zero tolerance towards terrorism. It is also heartening to hear from media that the Prime Minister’s Office has directed the home and defence ministries to ensure that all strategic decisions, specially those relating to the uniformed forces, should be taken only after detailed consultations with their top officers. Meanwhile, medals for bravery and service surrendered by of 32,000 ex-servicemen and war-widows remain deposited-22,000 with Rahtrapati Bhavan and 10,000 with Indian Ex-Serviceemen’s Movement and will not be accepted back till proper implementation of One Rank One Pension. 

(Source: The Asian Age - 26 Jun 14)

Wednesday, June 25, 2014

OROP (A little belated) Update: Meeting of 12 Jun 14

Tuesday, 24 June 2014


Definition of OROP approved by RM – Same rank, same years of service, same amount of pension as drawn by officers & Other Ranks after 1.1.2006 and also future enhancements in pension; please note there isn’t any distinction between groups in Other Ranks

Working Group approved by RM - comprising representatives of the Service HQ (Army, Navy, Air Force Pay Cells) and ESM where appropriate as determined by Service HQ  

CGDA

Ø              Entrusted to coordinate the discussions of the Working Group

Ø              Had asked the Service HQ to provide a Draft Government Letter (DGL) though it was the mandate of the CGDA to do so

Ø              Has estimated that taking pay in the pay band as on 31 Mar 2014 for paying OROP w.e.f. 01 Apr 2014, a sum of Rs 9100 crores would be the annual Cost to the Public Exchequer (CPE).

Back of the Envelope Calculations

Ø              Rs 9100 crore is possible only if: - 

§                 Even at Sepoy level, pension of 20 years would have to be paid though the Sepoy level personnel are discharged at 17, 15 and 15 years service from the Army, Navy, and Air Force respectively.

§                 That all officers retire with 30 years of qualifying service as indicated in PCDA (P) Circular 500 thereby inflating the estimated CPE   
         
§                 Not taking into consideration that ORs can opt to change from Gp Y to Gp X after 13 years of service and therefore weightage needs to be been given to this aspect

§                 Not considering that after AVSC, some officers (Majors to Brigadiers) will reach the top of the pay Band 4 (Rs 67000) and adding Grade Pay + MSP will draw more emoluments than an Army Cdr. Examples are available from amongst serving officers (Lt Cols to Brig).

·         Lt Col Rs 67000+GP 8000+ MSP 6000= Rs 81000

·          Col Rs 67000+GP 8700+MSP 6000 = Rs 81700

·            Brig Rs 67000+ GP 8900 + MSP 6000 = Rs 81900

·                 Pay of VCOAS/Army Cdr                   = Rs 80000 making a case for notional MSP for Maj Gens and above
 
Ø              Whether sums paid on the implementation of the following have been added to/subtracted from to arrive at a figure of Rs 9100 crores: -

§                 PCDA (P) Circular No. 453 - Revision of pension of pre-1.1.2006 Armed Forces Pensioners/Family Pensioners vide Annexure to MoD letter No. 17 (3)/2010-D (Pension/Policy) dated 15 Nov 2010

§                 PCDA(P) Circular No. 471 - Implementation of Govt decision on recommendations of the 6th CPC – Pension of PBOR discharged from service on or after 01 Jan 06

§                 PCDA (P) Circular No. 482 - Revised Pension Payments made due to OROP for certain categories of Other Ranks vide Appendix to MoD letter No. PC.10 (01)/2009-D(Pen/Pol)-Vol II dated 27 Mar 2012,

§                 PCDA (P) Circular No. 494 dated 19 Mar 2013– Enhanced Ordinary Family Pension of pre-2006 Armed Forces family pensioners vide MoD letter No. 2(1)/2012/D(Pen/Policy) dated 16 Jan 2013

§                  PCDA (P) Circular No. 500 Enhanced Minimum guaranteed Pension to pre-2006 Commissioned Officers/Family Pensioners vide Annexures A, B, C, D, E, F, G to MoD letter No. 1(11)/2012-D (Pension/Policy) dated 17 Jan 13,

§                 PCDA (P) Circular No. 502  - Enhancement of ordinary family pension in respect of pre-2006 LCOs/ORs Family Pensioners vide Appendix to MoD letter No. 1 (14)/2012/D (Pension/Policy) dated 17 Jan 2013,

§                 PCDA (P) Circular No. 503 dated 17 Jan 2013– Improvement in Casualty Pensionary Awards for Pre-2006 Armed Forces Officers, JCOs/ORs vide MoD letter No. 1(16)/2012/D (Pen/Policy) dated 17 Jan 2013 and

§                 Re-fixation of pay due consequent to Hon’ble Supreme Court order of 04 Sep 12 and Opinion of Ld Attorney General dated 03 Sep 13 in the Rank Pay case which will increase the pay due from 1996 to 2005, and arrears thereof

§                 Re-fixation of pay in the pay bands in the Sixth CPC consequent to payment of Rank Pay due to restoration of the deduction and arrears thereof

§                 Arrears due to Hon’ble Supreme Court dismissing the SLP (C) 23055 of 2013 and related cases, Review Petition (C) No. 2492 of 2013 and Curative Petition (C) No. 126 of 2014 in Hon’ble High Court of Delhi CWP No. 1535 of 2012 in PB CAT OA No. 655 of 2010 and tagged cases in Central Government SAG (S-29) Pensioners vs UoI for change of date of effect from 24 Sep 13 to 01 Jan 2006 for payment of pension and arrears.     

Conclusion: CGDA needs to take into confidence Service HQ to ensure speedy implementation of OROP as assured by this Government as recent as 23 Jun 14, as reported by NDTV 24x7.

6 comments:

  1. Sir, in a scenario full of unknowns, the critical inputs, presently missing, for a full understanding of which way these issues may be headed, are as follows:

    *The current status of the SOCs on Rank Pay.
    *The current status of the contempt petition on Rank Pay implementation.
    *The current status of the matter associated with dismissal of curative petition.
    *The actual status re DGL on OROP which was required to be furnished by services HQs as sought by CGDA.

    With the post election stabilisation being over, and the summer vacation in Hon'ble Supreme Court now drawing to a close, some news could be expected to trickle in from various agencies involved, for the benefit of the large no. of stakeholders.

    This update is a most welcome first step and a big relief in a prolonged famine of information.
    Reply
    Replies
    1. As per information available

      Rank Pay Corrigendum: - (awaiting authentication by reply to RTI application dated 10 Jun 14) in the Rank Pay case is that the file has been re-submitted soon after MoF/DoE/E.III.A reply dated 06 Jun 14 that MoD withdrew the file before any action by MoF;

      Contempt Petition: Impleadment of present Def Secy and CGDA filed on 18 Apr 14 and next date will probably be given when Apex Court reconvenes;

      SAG-29 (Pensioners) Vs UoI; PB CAT in Contempt Petition No. 158 of 2012 heard after the Apex Court dismissed Curative Petition (C) No. 126 of 2014, had given UoI three months to implement the order;

      OROP: DGL is to be prepared by CGDA and it appears that information projected in post above was what was told to Defence Minister who directed the Chairperson (the CGDA) of the Jt Working Group to convene a meeting and resolve the differences in the amounts as projected by Service HQ which is about 60% of the CGDA/PCDA (P) estimate; CGDA is yet to convene the meeting and hopefully it would be before the Chiefs meet the Defence Minister and later the Prime Minister, which would be taking place shortly.
    2. Reply
  2. Dear Sir,

    An extract of Rajya Sabha Petition Committee Report is appended below:

    "Deposition of Department of Expenditure (M/o Finance) (15th July & 1st August, 2011)
    7. The Secretary (Expenditure) submitted that the figure relating to defence
    personnel’s pension was being maintained in the Office of Controller General of Defence Accounts, which was under the administrative control of Ministry of Defence. He submitted that the figure, as available in the Office of Controller General of Defence Accounts, had been procured by the Ministry of Finance in accordance of which 1,300 crore approximately would be an immediate additional burden on Union Government in case ‘one rank one pension’ is given to ex-servicemen only prior to 01-01-2006. Mentioning break-up of 1,300 crores, he said that 1,065 crores would be given to the retirees belonging to the Posts Below Officer Rank (PBOR) and 235 Crores would be given to the retired Commissioned Officers. The said total figure would be increasing taking into account minimum 10% annual increase which would go to 1,430 crores in 2012-13, 1573 crores in 2013-14, 1,730 crores in 2014-15, 1,903 crores in 2015-16."

    While implementing Modified Parity of Pension wef 24/09/2012, there was a propaganda of expenditure of 2300 crores which also appeared to be wrong in view of the estimates of this report. The amount on modified parity of pension has been paid after submission of Rajya Sabha Petition Committee Report and as such that expenditure should be reduced from the estimates of the report.

    CGDA is certainly inflating the likely expenditure on account of OROP.
    Reply
    Replies
    1. It does not matter because the observation of PB CAT in OA No. 655 of 2010 in para 29 (d): -

      "..........but the said proposal was turned down by the officer of the Department of Expenditure on the ground of financial implications. Once the Central Government has accepted the principle of modified parity, the benefit cannot be denied on the ground of financial constraints and cannot be said to be a valid reason......"
    2. Reply
  3. Sir,
    The base date is now given as 1.1.2006 , is it not a disadvantage since we were expecting 31.3.3014 to be the date for calculation of pension?
    Regards
    Reply
    Replies
    1. Better to wait and see.

      There have been many enhancements and modified parities after 1.1.2006 - references of which have been given in the post above.

      There is also the change that will have to be made after adding Rank Pay to the 5th CPC scales and then multilying that by 1.86 to get the 6th CPC pay band etc.

      Increases may also need to be factored in on favourable ruling by the Apex Court on minimum of pay for each rank and increase to the extent of the deducted rank pay at the top of the integrated pay scale.
    2. (Source-Aerial View blog)

Monday, June 23, 2014

Pension Tables - Other Ranks

(Posted by AERIAL VIEW _ Tuesday, 17 June 2014)


Pension Tables – Other Ranks

Tables subject to verification & For Reference Only
Not to be quoted for official purposes

Assumptions: Age at enrolment: 17 years

Minimum pensionable Tenure of years of service: 20 years
                   
Retirement age 57 years

Minimum pensionable service – Army & Navy - 15 years;

Air Force - 20 years

Not factored: Weightage and PCDA (P) Circular No. 471

Notes: - 1.                  Column A is common and only indicates years of service in the particular rank.

2.                 Column A does NOT indicate TOTAL Qualifying SERVICE. Numerical Example: - Y4 is 4th year of service in the rank. It is NOT 4th year of service in the Army or Navy or Air Force.

3.       Years in column A for each rank for reference purposes only. 


LAC
Cpl
Sgt
Sgt Diploma
Component
s
@100%
@50%
@100%
@50%
@100%
@50%
@100%
@50%
Basic Pay
5200
9200
13600
13600
Grade Pay
2000
2400
2800
2800
Military Service Pay
2000
2000
2000
2000
Total
9200
13600
18400
18400
Annual Increment
3%
3%
3%
3%
 Year in the rank








A
B
C
D
E
F
G
H
J
Y1
9200
4600
13600
6800
18400
9200
18400
9200
Y2
9420
4710
13950
6975
18900
9450
18900
9450
Y3
9650
4825
14310
7155
19410
9705
19410
9705
Y4
9880
4940
14680
7340
19940
9970
19940
9970
Y5
10120
5060
15070
7535
20480
10240
20480
10240
Y6
10370
5185
15470
7735
21040
10520
21040
10520
Y7
10630
5315
15880
7940
21620
10810
21620
10810
Y8
10890
5445
16300
8150
22210
11105
22210
11105
Y9
11160
5580
16730
8365
22820
11410
22820
11410
Y10
11440
5720
17180
8590
23450
11725
23450
11725
Y11
11730
5865
17640
8820
24100
12050
24100
12050
Y12
12030
6015
18110
9055
24770
12385
24770
12385
Y13
12340
6170
18600
9300
25460
12730
25460
12730
Y14
12660
6330
19100
9550
26170
13085
26170
13085
Y15
12980
6490
19620
9810
26900
13450
26900
13450
Y16
13310
6655
20150
10075
27650
13825
27650
13825
Y17
13650
6825
20700
10350
28420
14210
28420
14210
Y18
14000
7000
21270
10635
29220
14610
29220
14610
Y19
14360
7180
21850
10925
30040
15020
30040
15020
Y20
14740
7370
22450
11225
30890
15445
30890
15445
Y21
15130
7565
23070
11535
31760
15880
31760
15880
Y22
15530
7765
23710
11855
32660
16330
32660
16330
Y23
15940
7970
24370
12185
33580
16790
33580
16790
Y24
16360
8180
25050
12525
34530
17265
34530
17265
Y25
16800
8400
25750
12875
35510
17755
35510
17755
Y26
17250
8625
26470
13235
36520
18260
36520
18260
Y27
17710
8855
27210
13605
37560
18780
37560
18780
Y28
18190
9095
27970
13985
38630
19315
38630
19315
Y29
18680
9340
28750
14375
39730
19865
39730
19865
Y30
19190
9595
29560
14780
40870
20435
40870
20435




JWO
WO
MWO
Components
@100%
@50%
@100%
@50%
@100%
@50%
Basic Pay
18400
24600
31200
Grade Pay
4200
4600
4800
Military Service Pay
2000
2000
2000
Total
24600
31200
38000
Annual increment
3%
3%
3%
 Year in the rank
K
L
M
N
O
P
Y1
24600
12300
31200
15600
38000
19000
Y2
25280
12640
32080
16040
39080
19540
Y3
25980
12990
32990
16495
40200
20100
Y4
26700
13350
33920
16960
41350
20675
Y5
27450
13725
34880
17440
42540
21270
Y6
28220
14110
35870
17935
43760
21880
Y7
29010
14505
36890
18445
45020
22510
Y8
29830
14915
37940
18970
46320
23160
Y9
30670
15335
39020
19510
47650
23825
Y10
31540
15770
40140
20070
49020
24510
Y11
32430
16215
41290
20645
50440
25220
Y12
33350
16675
42470
21235
51900
25950
Y13
34300
17150
43690
21845
53400
26700
Y14
35270
17635
44950
22475
54950
27475
Y15
36270
18135
46240
23120
56540
28270
Y16
37300
18650
47570
23785
58180
29090
Y17
38360
19180
48940
24470
59870
29935
Y18
39460
19730
50350
25175
61610
30805
Y19
40590
20295
51810
25905
63400
31700
Y20
41750
20875
53310
26655
65250
32625
Y21
42950
21475
54850
27425
67150
33575
Y22
44180
22090
56440
28220
69110
34555
Y23
45450
22725
58080
29040
71130
35565
Y24
46760
23380
59770
29885
73210
36605
Y25
48110
24055
61510
30755
75350
37675
Y26
49500
24750
63300
31650
77560
38780
Y27
50930
25465
65140
32570
79830
39915
Y28
52400
26200
67040
33520
82170
41085
Y29
53920
26960
69000
34500
84580
42290
Y30
55480
27740
71010
35505
87060
43530