Rs.2300 crore Approved to meet the demands of Ex-servicemen Pensioners
The Union Cabinet has approved the recommendations of the Committee headed by Cabinet Secretary for benefits to ex-servicemen on four issues. The financial implications of the improvements made as per the Cabinet decision on the four items are broadly estimated at Rs.2300 crore per annum. The details are as follows:
I. One Rank One Pension:
On One Rank One Pension, the demand of the Defence Forces and Ex-Servicemen Associations is that uniform pension be paid to the Defence Forces personnel retiring in the same rank with the same length of service irrespective of their date of retirement and any future enhancement in the rates of pension be automatically passed on to the past pensioners.
The difference in the pension of present and past pensioners in the same rank occurs on account of the number of increments earned by the defence personnel in that rank. There is also a difference between the pension of pre 1.1.06 and post 1.1.06 retirees belonging to a particular rank. The UPA Government on two previous occasions has taken decisions to narrow the gap between the present and past pensioners, particularly those belonging to the ranks of JCOs and Other Ranks.
On the issue of One Rank One Pension, the following have been approved by the Cabinet:
(i) Bridging of the gap in the pension of pre 1.1.06 and post 1.1.06 JCO/OR retirees by determining the pension of pre 1.1.06 retirees on the basis of notional maximum for ranks and groups across the three Services as in the case of post 1.1.06 retirees. In addition, the weightage of qualifying service in the ranks of Sepoys, Naik and Havaldar would be increased by two years for both pre and post 1.1.06 retirees.
(ii) The pension of pre 1.1.06 Commissioned Officer pensioners would be stepped up with reference to the minimum of fitment table for the ranks instead of the minimum of pay band.
(ii) The pension of pre 1.1.06 Commissioned Officer pensioners would be stepped up with reference to the minimum of fitment table for the ranks instead of the minimum of pay band.
These are expected to largely meet the demands of the defence pensioners on one rank one pension.
II. Enhancement of Family Pension :
(i) The pension of pre – 1.1.2006 family pensioners(Commissioned Officers, Honorary Commissioned Officers, JCOs/ORs ) be stepped up based on the minimum of the fitment table instead of the minimum of the Pay Band;
(i) Establishing linkage of the family pension with the pension of JCOs/ORs, in those cases where the death takes place after the retirement of the JCO/OR since such a JCO/OR drew a pension based on the maximum of the pay scales, 60% of the pension applicable to JCO/OR pensioners would be granted to the family pensioner in case of normal family pension calculated a 30% of last pay drawn. Accordingly, based on the rank, group and length of service of the deceased JCO/OR pensioner, his pension would first be determined on notional basis. In cases where death of JCO/OR took place after retirement, the family pensioners in receipt of normal family pension would become entitled to 60% of the said pension determined on notional basis and those in receipt of enhanced family pension will be entitled to 100% of this pension. Similar entitlements would be determined in the case of Special Family Pension; and
(ii) The family pensioner of the JCO/OR would be granted pension arrived at on the basis of the family pension worked out as per the formulation at (i) above or the pension on the basis of stepping up with reference to the minimum of the fitment table, whichever is beneficial. Further, the linkage of family pension with retiring pension be applied in the case of post 1.1.2006 family pensioners of JCOs/ORs also.
III. Dual Family Pension:
Dual family pension would be allowed in the present and future cases where the pensioner drew, is drawing or may draw pension for military service as well as for civil employment.
IV. Family pension to mentally / physically challenged children of armed forces personnel on marriage:
Grant of family pension to mentally/physically challenged children who drew, are drawing or may draw family pension would continue even after their marriage.
The above recommendations made by the Committee on pension issues of Ex-Servicemen may be implemented from a prospective date and payment made accordingly.
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Ex-servicemen reject hike in pension, say it is ‘misleading’
Ajay Banerjee
Tribune News Service
New Delhi, September 25
As the fine print of the Cabinet’s decision on additional pension for ex-servicemen emerges, it is clear that the government stopped short of accepting the ‘one rank, one pension’ (OROP) formula but there will be an across the board increase in pension for all those who retired before January 1 2006.
Depending on which side you stand, opinions are sharply divided on the hike and the last word on the matter is yet to be spoken with ex-servicemen groups rejecting the additional pension benefits.
The basic pension of all officers who retired before January 1, 2006 will increase between Rs 1,800 and Rs 3,600. The existing 65 per cent of dearness allowance will also be admissible over the increased amount. However, this is not as per the OROP formula.
Despite the increase, officers who retired after January 1, 2006 will get pensions that are way ahead of those who retired before January 1, 2006. The other measures on dual family pension and family pension for physically and mentally handicapped children after marriage have been welcomed.
Sources said as per calculations made so far, the following will be the tentative hike in basic pension for officers who retired before January 1, 2006: Captain Rs 13,850 (existing) to Rs 15,350 (after hike); Major Rs 14,100 to Rs 18,205; Lt Col Rs 25,700 to Rs 26,262; Colonel Rs 26,050 to Rs 27,795; Brigadier Rs 26,150 to Rs 29,145 and Major General Rs 26,700 to 30,350. These figures could be more, depending upon several other factors. This DA would be paid as per prevailing rates. Other payments of military service pay and grade pay factored into the pension calculation formula remain unchanged.
Maj General Satbir Singh (retd), vice-chairman of the Indian Ex-Servicemen Movement, rejected the announcement terming it as “misleading”. “What has been given, albeit grudgingly, does not even meet provisions of the Armed Forces Tribunal (AFT) judgments on the matter,” he said in letters shot-off to the Prime Minister with copies to Defence Minister AK Antony and the three Service Chiefs. Two summers ago, the General had led a march to Rashtrapati Bhawan where hundreds of retired personnel returned their medals.
Gurdaspur MP Partap Singh Bajwa and Rohtak MP Deepender Singh Hooda have welcomed the decision. Bajwa said the remaining demands of serving officers should be met immediately, while Hooda praised Sonia Gandhi for the move.
Explaining the intricacies of OROP, Maj General Singh said, “OROP means that defence personnel with the same rank and same length of service must draw the same pension irrespective of the date of retirement and any future enhancement would be automatically granted to them. What has been announced is not OROP.” The hike has come about after a change in calculations. Till now, the pension for ex-servicemen retiring before January 1, 2006 was calculated as per the lowest pay in the existing pay band.
http://www.tribuneindia.com/2012/20120926/main7.htm
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