Implementation of Government’s decision on the recommendations of the 7th Central Pay Commission (CPC) – Revision of pension of pro-1.1.2016 Defence Forces pensioners/ family pensioners etc

7th CPC Revision of Pension of Pre-2016 Defence forces Pensioners/family Pensioners: DESW Order 04.09.2017 in view of NAC decision

No. 17(01)/2017(01)/D(Pension/Policy)

Government of India
Ministry of Defence
Department of Ex-Servicemen Welfare
New Delhi, Dated 4th September, 2017

To

The Chief of the Army Staff
The Chief of the Naval Staff
The Chief of the Air Staff

Subject : Implementation of Government’s decision on the recommendations of the 7th Central Pay Commission (CPC) – Revision of pension of pro-1.1.2016 Defence Forces pensioners/ family pensioners etc.

Sir,

The undersigned is directed to refer to this Ministry’s letter No. 17(01)/2016 D(Pen/Pol) dated 29th October 2016 for revision of pension of pre-2016 Defence Forces pensioners/ family pensioners in implementation of the Government decisions on the recommendations of the 7th CPC. As per para 9 of this Ministry’s said order dated 29th October 2016 the revision of disability element of disability pension was held in abeyance pending decision of National Anomaly Committee to whom matter was referred by MoD to decide methodology for calculation of disability element of disability pension under 7th CPC. The National Anomaly Committee has recommended that parity with Civilians for grant of Disability element which was granted to Defence Forces under 6th CPC, shall be maintained.

2. The recommendations of the National Anomaly Committee have been considered by the Government. In partial modification of Ministry’s order dated 29th October 2016, the President is now pleased to decide that Disability element of disability pension for Defence Forces Pensioners shall also be revised by multiplying the existing rate of disability element as had been drawn on 31.12.2015 by factor of 2.57 to arrive at revised rate of disability element as on 1.1.2016. The amount of revised disability element so arrived shall be round-ed off to next higher rupee.

3. Para 13 of this Ministry’s above quoted letter dated 29.10.2016 regarding “Ex-gratia awards to Cadets in cases of disablement” shall be replaced with the following:

13. EX-GRATIA AWARDS TO CADET (DIRECT) The ex-gratia award payable to Cadet (Direct)/ NoKs in cases of disablement / death shall be payable subject to the same conditions as hitherto in force in the event of invalidment on medical ground / death of a Cadet (Direct) due to causes attributable to or aggravated by military training

(i) Monthly Ex-gratia amount of Rs 9,000/- per month

(ii) In cases of disablement, Ex-gratia disability award @ Rs 16,200/- per month shall be payable in addition for 100% of disability during period of disablement subject to prorata reduction in case the degree of disablement is less than 100%. “No ex-gratia disability award shall be payable in cases where the degree of disablement is less than 20%.”

4. The dearness relief sanctioned by the Government from 1.1.2016 and thereafter, shall also be paid on rates of disability element and monthly ex-gratia award to Cadet(Direct), revised in accordance with the provision of this letter.

5. Vide para 10(ii) of MOD order dated 29.10.2016, it was ordered to pay the Constant Attendance Allowance(CAA) at the existing rate since matter regarding grant of Allowances was under examination by the Committee on Allowances (CoA). in this regard, Ministry of Finance vide Resolution dated 6th July 2017 (Appendix II item 37 has accepted the recommendation of 7th CPC to enhance the existing Constant Attendance Allowance @ 4500/ p.m. by 50%. DoP&PW vide O.M No. 1/4/2017-P&PW(F) dated 2.8.2017 has issued orders in this-regard for civilian pensioners. Accordingly, for Armed Forces personnel the Constant Attendant Allowance shall continue to be admissible under the condition as hitherto fore at the existing rate from 1.1.2016 to 30.06.2017. However, it shall now be admissible at the enhanced uniform rate of Rs. 6750/- per month, irrespective of the rank with effect from 1.7.2017.

6. With reference to the provisions contained in Para 5.4 of this Ministry’s letter dated 29th October, 2016, it is further clarified that the maximum ceiling shall be applicable only in the case of Service/Retiring Pension, Service element of Disability/ liberalized disability /War Injury Pension and Ordinary family Pension. The said ceiling is not applicable in the cases of Disability/ Liberalised Disability/ War injury element. Special Family/ Liberalized Family Pension etc. applicable under casualty pensionary awards.

7. The provisions of this Ministry’s letter dated 29th October 2016, which are not affected by the provisions of this letter, shall remain unchanged.

8. The provisions of this letter shall take effect from 1.1.2016

9. This issues with the concurrence of Finance Division of this Ministry their U.O. No. Part File (1) to (30)(01)/2016/Fin/Pen dated 14th August 2017.

10. Hindi version will follow.

Yours faithfully,

(Manoj Sinha)
Under Secretary to the Government of India