ESM due to COVID-19

• Grant of SFP in case of disability or death due to a particular infection / disease already exists.
• This is equally applicable in the case of COVID-19 infections.

No. 2(3)/2022/D (Pen/Pol)
Government of India
Ministry of Defence
Department of Ex-Servicemen Welfare

Sena Bhawan, New Delhi,
Dated, the 16th August, 2022

To

The Chief of Defence Staff
The Chief of Army Staff
The Chief of Naval Staff
The Chief of Air Staff

Subject: Grant of Disability Pension/ Element/ Special Family Pension in case of death of ESM due to COVID-19 – clarification thereon.

Sir,

The undersigned is directed to say that references have been received from all the three services for want of clarification regarding grant of Disability Pension/ Special Family Pension in cases of disability / death of ESM due to COVID-19. The three Services have reported that during processing of such cases, Principal Integrated Financial Advisor (PIFA) of the concerned services have desired clarification from this Ministry on grant of SFP in case of death due to COVID-19.

2. The matter has been examined in this Ministry in consultation with its stakeholders. The competent authority has decided to clarify the following in this regard:

• (i) All cases of infection due to any cause do not get attributability as per existing rules and regulations, as every case is different and the rules and regulations are robust. Similarly, all cases of disability / death due to COVID-19 will not qualify for award of attributability as being explained by the Release Medical Boards or the competent medical or the competent medical authorities.
• (ii) It will be difficult to bring out such a direct causal connection between the Government Service and the disease (COVID-19) since contraction of infection from other sources beyond office hours cannot be ruled out, except in cases of frontline workers where Government has made other provisions.
• (iii) For award of Disability Pension / Element / Special Family pension, a causal connection between disability or death and Military Service has to be established by appropriate authority. Thus, policy for grant of SFP in case of disability or death due to a particular infection / disease already exists. But the concerned competent authority has to establish causal connection between infection / disease and Military Service. This is equally applicable in the case of COVID-19 infections.

3. This issues with the concurrence of Finance Division of this Ministry vide their ID Note No. 10(04)/2022/ FIN/PEN dated 16.06.2022.

4, Hindi version will follow.

Yours faithfully,
Sd/-
(Ajay Kumar Agrawal)
Deputy Secretary to the Govt. of India

Download Grant of Disability Pension / Special Family Pension in case of death of ESM due to COVID-19 MOD Order PDF

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LOK SABHA
UNSTARRED QUESTION NO. 2288
TO BE ANSWERED ON 29th July, 2022

ONE RANK ONE PENSION SCHEME

2288. SHRI RAJMOHAN UNNITHAN:
Will the Minister of DEFENCE be pleased to state:

(a) the current status of implementation of the One Rank One Pension (OROP) scheme;

(b) whether the army veterans have been demanding revision in OROP scheme for a long time and if so, the details thereof;

(c) whether the Supreme Court on March 22 this year has instructed the Government to revise the pension of ex-servicemen within three months; and

(d) if so, the response of the Government thereto?

ANSWER

MINISTER OF STATE (SHRI AJAY BHATT)
IN THE MINISTRY OF DEFENCE

(a): The Government has implemented One Rank One Pension (OROP) vide MoD letter no. 12(1)/2014/D (Pen/Pol) – Part-II dated 07.11.2015 and tables for fixation of pension were issued vide MoD letter no. 12(1)/2014/D (Pen/Policy)-Part-II dated 03.02.2016.

(b) to (d): Hon’ble Supreme Court vide its order dated 16.03.2022 directed that in terms of the communication dated 7th November 2015, a re-fixation exercise shall be carried out from 1st July 2019, upon the expiry of five years. Revision of pension under OROP with effect from 01.07.2019 is under process.

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HAND BOOK
DEFENCE PENSION
FOR
COMMISSIONED OFFICERS
(ICOs)
Year – 2021

Hand Book on Defence Pension for ICOs

Preface

New Pension Code came into force w.e.f 01.06.1953 vide A.I 1/S/53. Since then tremendous changes have taken place in pensionary awards of the Armed Forces Personnel and their families due to the recommendation of the successive Central Pay Commission. These changes are scattered over a number of Govt. letters, memoranda etc. issued from time to time.

2. A need was, therefore, felt to review and update. The same with reference to latest Govt. letters, ruling and clarifications issued over a past these years and to summaries them in a precise manures.

3. Keeping the above facts in view, the efforts have been made to put the important changes made upto 2020 in fundamental principle in pension structure of various kinds of pensionary awards precisely in the form of a Hand Book.

4. I, hope, this Hand Book will be a useful guide to all the dealing staff and officers of this office who are employed on the sanction of various kinds of pensionary awards in their day to day working.

5. For facility, illustrations based on the Seventh CPC are given showing calculation of pension.  Appendices showing changes in rates of the pension etc. with relevant authority have also been given. The Govt. letters mentioned in the Hand Book have also been listed with Group Order No. for necessary check as and when required.

6. The Hand Book has been prepared separately for PBORs and Commissioned Officers.

7. Any suggestion to improve this Hand Book would be gratefully acknowledged.

Rajiv Ranjan, IDAS
Principal Controller of Defence Accounts (Pension)
Prayagraj

HAND BOOK ON DEFENCE PENSION FOR ICOs

PENSIONARY AWARDS IN RESPECT OF COMMISSIONED OFFICER

INDEX

Sl. No. – Subject

1. Qualifying service for earning Retiring Pension
2. Periods of service qualifying for pension
3. Determination of amount of pension
4. Retirement Gratuity
5. Commutation of Pension
6. Restoration of commuted portion of pension
7. Disability pension
8. Categorisation of disability
9. Procedure for adjudication of Disability Pension claim
   1. Injury cases
   2. Disease cases
10. Disability pension on invalidment
11. Disability element on retirement
12. Rates of Disability Element
13. Constant Attendance Allowance
14. Lump sum compensation in lieu of Disability Element
15. Invalid Pension
16. War Injury Pension on invalidment
17. War injury Pension on retention in service
18. Lump sum compensation in lieu of war injury pension in service
19. War injury element on subsequent retirement
20. Liberalized disability pension
21. Ex-gratia awards to cadets (direct) in case of disablement
22. Appeal
23. Ordinary Family Pension
24. Eligible members of family for Ordinary Family Pension
25. Ordinary Family Pension in case of missing personnel/pensioners
26. Rates of Ordinary Family Pension
    1. Normal Rate
    2. Enhanced Rate
27. Special Family Pension
28. Eligible members for Special Family Pension
29. Special Family Pension on re-marriage widow
30. Dependent pension to Parents and Brothers/Sisters
31. Liberalized Family Pension
32. Dependent Pension (Liberalized)
33. Ex-gratia lump sum compensation who die in harness
34. Death Gratuity
35. Monetary allowances attached to Gallantry Awards
36. Pensionary awards in respect of Non-regulars Commissioned Officers (SSC/TC/EC/SSRC)
37. Counting of Past service
38. Condonation of break in service
39. Pro-rata pension
40. Appendices – Rates of
    1. Retiring Pension
    2. Retirement Gratuity
    3. Disability Element
    4. Ordinary family pension-prior to 01.06.53 and after 01.06.53
    5. Special Family Pension-Prior to 01.06.53 and after 01.06.53
    6. Monetary allowances attached to gallantry decorations
    7. Evaluation of Pensionary structure prior to 01.06.53 and thereafter and also important changes due to successive CPC recommendations.
    8. List of Govt. letters referred to in the Hand Book with Group Order No. under which reproduced

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Ministry of Defence

Clarification in respect of non-disbursement of pension to Armed Forces personnel for April 2022

Posted On: 04 MAY 2022

There have been concerns raised in sections of media and social media regarding the non-disbursement of pension to defence pensioners for the month of April 2022. The following clarification is being hereby issued for kind information of all concerned.

All pensioners must complete annual identification in order to continue receipt of monthly pension, which is usually done in the month of November 2021 by all banks acting as Pension Disbursing Agencies. Due to the COVID situation, Government had extended the window for annual identification due on November 30, 2021 upto March 31, 2022.

Accordingly, SPARSH has been successfully disbursing monthly pension to over five lakh pensioners, including 4.47 lakh pensioners migrated from legacy system to SPARSH (post 01.01.2016 retirees) upto March 31, 2022.

However, during the processing of pension for the month of April 2022, it came to light that annual identification of around 3.3 lakh pensioners was not updated. A list was shared with all Pension Disbursing Banks to share updated identification data, if any, and as a result identification status of more than 2.65 lakh pensioners was updated on SPARSH by April 25, 2022 leading to successful processing of pension for all these pensioners.

However, banks (the previous Pension Disbursing Agency) could not confirm identification for 58,275 pensioners and neither was their identification received directly on SPARSH by the time of monthly closing. Hence, these pensioners were not paid their April pension by April 30, 2022.

In order to avoid hardship to such pensioners, a one-time special waiver has been accorded to these 58,275 pensioners to get their identification done by May 25, 2022.

The pension for the month of April 2022 has now been processed and pension is due to be credited by end-of-day on May 04, 2022. All such pensioners are being informed about pending annual identification through SMS and email.

For performing identification pensioners are requested to approach nearest CSC (findmycsc.nic.in/) and get their annual identification updated through Jeevan Pramaan using SPARSH PPO number and selecting PDA as SPARSH PCDA (P).

The Ministry of Defence, including the Defence Accounts Department, is undergoing a major transformation with an aim to bring transparency and efficiency in various processes and procedures. With the broader agenda of digitisation and modernisation of legacy systems, the System for Pension Administration (Raksha) (SPARSH) as an initiative of Ministry of Defence was envisaged to provide comprehensive solution to the administration of pension to the defence pensioners in line with the Government’s vision of Digital India, Direct Benefit Transfer (DBT) and Minimum Government, Maximum Governance.

The SPARSH Portal may be accessed at sparsh.defencepension.gov.in/.

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ADVISORY ON MIGRATION OF LEGACY PENSIONERS TO SPARSH 

1. It is brought to the kind notice of all esteemed Veteran Offrs & NoKs that PCDA (P), Allahabad has started the process of migration of legacy pensioners to SPARSH in phased In the first phase, all 7thCPC regime pensioners (i.e post 01 Jan 2016) are being migrated. To this effect 558 pensioners, who were drawing their pension from private banks have been migrated. All balance pensioners are likely to be migrated by 28 Feb 2022. Pre-2016 pensioners will be migrated in phases for which separate intimation will be given through this website on receipt from PCDA (P), Allahabad.

2. For ease of understanding & business, few salient features about SPARSH are described in succeeding paragraphs.

3. About SPARSH. System for Pension Administration – Raksha (SPARSH) is a comprehensive pension package (CPP), an end-to-end online system aimed at facilitating and easing every aspect of Defence Pensions from initiation to The project basically entails online submission of Pension Claims from Officers’ Record Office (ORO) to PCDA (P), Allahabad through PCDA (O), Pune, online verification & authentication of data and online disbursement of pension direct into account by PCDA (P) instead of Banks/CPPCs/DPDOs etc.

Website link – sparsh.defencepension.gov.in. 

4. Migration of Legacy Pensioners on SPARSH. Stepwise process of migration is given at Appx A.

5. Benefits/Advantages of SPARSH.

(a) Single point contact e PCDA (P), Allahabad for all pension and data related queries.

(b) No role of any DPDO/Bank & CPPC etc as the pension will be directly credited into pensioner’s account by PCDA (P) Allahabad through SPARSH & eKuber package of Reserve Bank of India (RBI).

(d) Pensioner will have the facility of login to access following services:-

(i) View & updated profile

(ii) Raise any kind of request post login like change/update of Mobile No, Email, Address & Bank details which would be straight way approved & updated.

(iii) Raise request for amendment of names or Date of Birth (DOB) of family members duly uploading necessary supporting documents which would be visible to the dealing staff of ORO (MP-5B) for vetting and The updated data/details would be found reflected in SPARSH system post final approval of PCDA (P). No corrigendum PPO will be issued until there is a change in pensionary benefits. No hardcopies of documents are reqd to be sent.

(iv) Queries/Requests related to pension anomalies.

(v) Interactive grievance mgt as per designed modules/subjects therein.

(vi) View/Download monthly pension details/pension slip.

(vii) Income tax forms including Investment declarations to save the tax.

(viii) Track Claim.

(ix) Information about Re-employment.

6. Identifications/Submission of Life Cert. Identifications/Submission of Life Cert process is explained in detail given at Appx B.

7. Service Centres for Assistance of Pensioners. There are 938 Service centres across the Nearest service centre can be located by visiting the SPARSH website or by using direct link https://sparsh.defencepension.gov.in serviceCentreLocator’ on civil internet. Locate Service Centre, Put state/distt/pin code and click Search.

8. Pensioner’s Death/Missing Intimation by NoK. The process is given at Appx C.

9. Online Submission of Family Pension or Corr Case by ORO (MP-5B). The pensioners may process any data correction case for issue of corrigendum PPO or start of Family Pension either through SPARSH as explained above or through existing method e RODRA, email, by post etc. On receipt of requisite document, ORO (MP- 5B) will raise the “Data Correction” case online through SPARSH if pensioners have been migrated to SPARSH otherwise through legacy system. However, to avoid duplicacy, pensioners are advised to use only one medium at a time. Manual cases of migrated pensioners will no longer be accepted by PCDA (P), Allahabad.

10. All pensioners are advised to visit the SPARSH website ‘sparsh.defencepension.gov.in’ and specially the ‘FAQ’ link to acquaint themselves with the features and facilities.

 Appx ‘A’

MIGRATION PROCESS

Step 1. Imdtly on migration, an SMS and email is sent to the pensioner’s latest Mobile No & email ID registered with Bank for e-banking or SMS facility etc.

OR

Step 2. A pensioner can check his status by visiting the website ‘Sparsh PPO’ on civil internet.

Step 3. Select the mode by which you want to search ; the Old e-PPO No or IC No or Bank Account No and then type the same in the box given.

Step 4. Type the given Captcha and click on ‘Submit’ button. New PPO No would be reflected on screen.

OR

Step 5. Migrated pensioners may find their new PPO No under link ‘Various Functions – DAK/SPARSH migration status’ after login into RODRA also which is updated as per the list received from PCDA(P) by ORO.

OR

Step 6. If any pensioner is shown as migrated to SPARSH but he couldn’t get his user ID & password through SMS/email due to any reason, he may contact PCDA (P), Allahabad on 18001805325 or TCS on 011-20893782/83/84/85 or may try to directly login as per fwg method on SPARSH Website ‘sparsh.defencepension.gov.in’ Login page :-

Step 7. In case the officer is still unable to get his details or successfully login, he may contact ORO (MP-5B) to update his Mobile No & email ID on 8130591689 & 8368051743 (whatsapp only), through email offr.record@gov.in or RODRA grievance module.

Note :- No soft or hard copy of new PPO is being generated or issued and only a new PPO No is issued. Details of service, family, pension & other benefit are reflected under profile post login into SPARSH. If the pensioner wishes, he may keep a printout of the same for his ref as the SPARSH PPOs are just a statement with pension dtls and no longer serve as an authority for payment of pension by any agency like DPDO/Bank etc. Accordingly, the PPOs of current retirees are also issued with following Note:-

‘This document is for record of pensioner only and does not serve as authority for payment at any Pension Disbursing Agency, Payment of pension will be done centrally by SPARSH’.

Appx ‘B’

IDENTIFICATION PROCESS : EXPLAINED

1. Pensioners/NoKs may use any of the following methods for initial/yearly identification or submission of Life Cert:-

(a) Method/ Option 1. DLC (Digital Life Cert) may be submitted after login into SPARSH on a Computer connected to Biometric fingerprint/iris scanner device for Aadhaar Authentication as per following process :-

Step 1. Click on Identification tab from menu on left bar.

Step 2. Click on “Perform Identification” button shown below personal particulars. A new page will open.

Step 3. Click on small circle shown against Aadhar and follow the onscreen process.

(b) Method/ Option Generate Manual Life Cert (MLC) with Token No post login into SPARSH.

Step 1 & 2. Same as above.

Step 3. Click on small circle shown against Manual Life Cert (MLC) and click on Generate MLC Number.

Step 3. Click on Initiate Request. A Certificate will be be generated, save or take a print, get it signed from any gazetted officer and upload the same in SPARSH as image/pdf through your Mobile/Tab/PC/Laptop etc after login.

(c) Method/ Option 3. Submit DLC through Govt “Jeevan Praman Portal”. Download the app on PC/Tab/Mobile. Better is to download and install the app on mobile which facilitates face recognisation authentication of Aadhaar and no biometric finger print/iris scanner device is For further details, visit FAQ section on website https://jeevanpramaan.gov.in.

(d) Method/ Option 4. Visit any nearby CSC (Citizen/Common Service Centre) which are also called as e-Mitra etc. There are approximate 4 lakh CSCs across the country located at every 5-10 
Website link- Locator CSC Cloud or Jeevan Pramaan Locator

Note 2. While submitting DLC/MLC other than through SPARSH, Pensioner must select or write “SPARSH PCDA (P) Allahabad” as their Pension Disbursing Authority in the other portals like ‘Jeevan Praman’ etc.

2. The pensioners who have already been migrated to SPARSH are advised to login and see whether their Identification is shown “Pending” or “Verified”. Though a pensioner might have given his MLC to his paying branch, but if the branch has not updated it on their Server, his identification will be shown as “Pending”. In such a case, the pensioners must submit their fresh Life Cert as per any of the methods mentioned in Para 6(a) to (d) above.

Appx ‘C’

PENSIONER’S DEATH/MISSING INTIMATION BY NOK : EXPLAINED

1. If a pensioner has died post retirement and the NoK is not aware of the SPARSH ID & password, she may use following methods for intimation of death and start of Family Pension:-

Step 1. Go to ‘sparsh.defencepension.gov.in’

Step 2. Click on Services and then on For Family and then Report Event.

Step 3. Click on Death/ Missing/ Conviction/ Initiate Family Pension (as applicable) or use any of the direct applicable link

sparsh.defencepension.gov.in – death or
sparsh.defencepension.gov.in – missing or
sparsh.defencepension.gov.in – conviction or
sparsh.defencepension.gov.in initiate family pension

2. On submissioin of above, intimation will be recd by ORO (MP-5B) to process/initiate the Family Pension claim.

3. In case of difficulty the widow/ entitled NoK may approach this office (MP-5B) also on 8130591689 & 8368051743 (whatsapp only) on all working days (Monday to Friday) between 0900 AM to 0500 PM

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As per 15th Finance Commission Report, the MoD has been examining various possibilities of reforms in defence pension, as deliberated by relevant Parliamentary Committee.  The extract of Para 11.66 is reproduced below:-

11.66 The MoD has been examining various possibilities of reforms in defence pension, as deliberated by relevant Parliamentary Committees. These are:

• i. bringing service personnel currently under the old pension scheme into the New Pension Scheme (NPS) or a separate NPS for the armed forces;
• ii. increasing the retirement age of personnel below officer ranks to a reasonable level;
• iii. transfer of retired personnel to other services, like the paramilitary forces, after active service of a certain duration; and
• iv. resettlement of ex-servicemen through skill development courses.

We recommend that the MoD take appropriate reform measures, without losing much time, on these lines or any other innovative approach, in order to ensure the growth of defence pensions are at para with non-defence pensions.

Para 3.81 of 15th Finance Commission Report is stating about the Defence Expenditure

3.81 Expenditure on defence services, on both revenue (excluding defence services pension) and capital accounts, as a proportion of GDP, has steadily decreased from 2 per cent in 2011-12 to 1.5 per cent in 2018-19 (Table 3.11). In 2020-21 (BE), such expenditure on revenue and capital accounts, again as ratios of GDP, are estimated at 0.9 per cent and 0.5 per cent, respectively. The defence revenue expenditure in 2016-17 increased by 13.3 per cent and in 2017-18 by 12.5 per cent mainly on account of higher outgo on salaries with implementation of the revised pay scales of the three defence services. During 2018-19, it increased by a further 5.1 per cent. Between 2011-12 and 2018-19, defence revenue expenditure grew faster (10 per cent) than the increase in defence capital outlay (4.7 per cent), and resulted in a reduction of the share of defence capital outlay in total defence services expenditure (excluding defence pension) from 40 per cent in 2011-12 to 33 per cent in 2018-19.

3.82 The total defence services expenditure (including defence services pension), as a ratio of GDP, declined from 2.4 per cent in 2011-12 to 2.1 per cent in 2018-19. It is budgeted to go down to 2 per cent in 2020-21 (BE). This decline has taken place even as defence services pension, again as a ratio of GDP, increased from 0.43 per cent in 2011-12 to 0.48 per cent in 2014-15 and further to 0.57 per cent in 2016-17 due to the implementation of revised pay scales and one rank one pension (OROP). It is expected to be at the level of 0.6 per cent in 2020-21 (BE). In 2020-21 (BE), the defence services salary and pension constitute around 59 per cent of the total expenditure of the Ministry of Defence, followed by capital outlay (24 per cent) and stores, adminstration of the defence services, construction of roads and bridges and the Coast Guard organisation accounting for the balance.

3.83 The capital outlay on defence services increased at the rate of 4.7 per cent a year from 2011-12 to 2018-19. During this period, the highest annual growth of 12.2 per cent was registered in 2013-14 and the lowest (-) 2.4 per cent in 2015-16. Capital outlay as a proportion of GDP has decreased from 0.8 per cent in 2011-12 to 0.5 per cent in 2020-21 (BE). Similarly, capital outlay as a proportion of total defence services expenditure (including defence pension) has declined from 32.6 per cent to 24.9 per cent during the same period.

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Ministry of Personnel, Public Grievances & Pensions

All serving employees to get “Disability Compensation” , if they get disabled in the line of duty: Dr Jitendra Singh

Order to provide a huge relief to young Central Armed Police Force (CAPF) personnel

01 JAN 2021 6:12PM

In a significant New Year announcement, Union Minister of State (Independent Charge) Development of North Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances, Pensions, Atomic Energy and Space, Dr. Jitendra Singh today informed of the government decision to extend “Disability Compensation” for all serving employees, if they get disabled in the line of duty while performing their service and are retained in service in spite of such disablement.

Today’s order will particularly provide a huge relief to young Central Armed Police Force (CAPF) personnel like CRPF, BSF, CISF, etc since disability in performance of duties is generally reported in their case due to constraints of job requirement as well as hostile or difficult work – environment.

Pertinent to mention that this new order will remove an anomaly in service rules, considering the hardship faced by the employees, since as per the earlier OM dated 5/5/2009, the provisions of disability benefits under Central Civil Services(CCS) (EOP) Rules did not provide such compensation to those government servants who were appointed on or after 1.1.2004 and covered under National Pension System (NPS). However, with the new order issued by the Department of Pensions in the Ministry of Personnel, the employees covered under NPS will also get benefits under Rule (9) of Extra Ordinary Pension (EOP).

In other words, if a government servant gets disabled while performing his duties and this disablement is attributed to government service, in that case if he is still retained in the service in spite of disablement, a lump sum compensation will be paid to him by arriving at the capitalized value of the disability element, with reference to the Commutation Table in force from time to time.

Expressing his satisfaction on today’s order, Dr. Jitendra Singh said, the Modi Government is making all efforts to simplify the rules and to do away with discriminatory clauses. The ultimate objective of all these new initiatives is to provide ease of living for the Government servants even after they have superannuated and become pensioners or family pensioners or elder citizens, he said.

Grant of disability pension, comprising service element and disability clement to pre-2006 disability pensioners of Govt service

In another employee-friendly decision, the Ministry of Personnel recently did away with minimum qualifying service of 10 years for pension, if a government servant is incapacitated due to bodily or medical infirmity and retired from government service. Accordingly, Rule 38 of CCS (Pension) Rules was amended to provide Invalid Pension at 50% of the last pay, even if the employee had not completed minimum qualifying service of 10 years.

In addition to above, in yet another reform in the Pension Rules, a decision was also taken to amend the rule and provide pension at enhanced rate to the family of an employee who died during service before completing the requisite service of minimum 7 years. As a result, now the family pension of 50% of the last pay is also admissible to the family of employees who die even before completing 7 years of service.

PIB

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Ministry of Defence

Five years of historic decision to implement OROP; Over Rs. 42740 Crore disbursed to 20,60,220 Defence Forces Pensioners / Family Pensioners

06 NOV 2020

Government of India took the historic decision to implement One Rank One Pension, OROP by issuing an order on 7.11.2015, benefit effective from 01.07.2014, despite huge financial burden demonstrating its commitment to the welfare of ex-servicemen. Armed Forces Personnel retired upto 30.06.2014 were covered under this Order.  Keeping in view the magnitude and complexity of Defence pension, extensive consultations were held with experts and ex-Servicemen before issue of Government order on implementation of OROP.

Ex-Servicemen had been agitating for implementation of OROP nearly for the 45 years, but the same was not implemented before 2015.

OROP implies that uniform pension be paid to the Armed Forces Personnel retiring in the same rank with the same length of service regardless of their date of retirement.  Thus, OROP implies bridging the gap between the rate of pension of current and past retirees at periodic intervals.

A sum of Rs. 10795.4 crore has been disbursed to 20,60,220 Defence Forces Pensioners/ Family Pensioners as arrears on account of implementation of OROP.  The yearly recurring expenditure on account of OROP is about Rs.7123.38 crores and for about six years starting from 01.07.2014, the total recurring expenditure worked out to approximately Rs. 42740.28 crore.

Demands of Defence Ex-servicemen on OROP requiring immediate action

OROP beneficiaries also got the benefit of fixation of pension under 7^th CPC while calculating the pension by multiplication factor of 2.57.

State-wise figures of amount released on account of OROP arrears as on 11.10.2019 are as under.

• Above mentioned nation-wide payment details did not include the details of Nepali pensioners.

Defence Bonus 2020 – Payment of PLB to Civilian Employees of Defence Production Establishments 2019-2020

Source: PIB

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The Union budget for the 2020-21 financial year, presented to Parliament on February 01, 2020 by Finance Minister Smt Nirmala Sitharaman, envisaged a total outlay of Rs 30,42,230 crore. Rs 3,37,553 crore (excluding Defence Pension) has been allocated for Defence. A amount of Rs 1,33,825 crore was provided for Defence Pension in Budget Estimates 2020-21.

There is an increase in total Defence allocations (Rs 4,71,378 crore) of Rs 40,367.21 crore including Defence Pension over the 2019-20 fiscal year. Total defence budget accounts for 15.49 per cent of total central government spending for the 2020-21 fiscal year.

The allocation of Rs 4,71,378 crore reflects a 9.37 per cent increase over Budget Estimates (Rs 4,31,010,79 crore) for the 2019-20 financial year.

Of the Rs 3,37,553 crore allocated for the 2020-21 financial year, Rs 2,18,998 crore is for revenue (Net) expenditure and Rs 1,18,555 crore is for capital expenditure for Defence Services and Ministry of Defense organizations / departments. The total of Rs 1,18,555 crore allocated for capital spending includes expenditure related to modernisation.

Input from PIB

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Pensionary Benefits

Introduction
Based on the recommendations of the Vth Pay Commission, the Government has abolished the standard pension of the rank. The normal retiring pension is purely based on two factors i.e. Qualifying Service and Average Monthly Emoluments.

Type of Benefits
If the minimum qualifying service required has been completed officers are eligible for

• Retiring Pension
• Retirement Gratuity

Minimum Qualifying Service
In case officers have not rendered the minimum qualifying service for pension, then they are entitled to

• Retiring Gratuity
• Retirement Gratuity

4. Qualifying Service
It shall mean the actual qualifying service rendered plus a weightage (in years) appropriate to the last rank held (as given subsequently below). The minimum qualifying service (without weightage) to be eligible for retiring pension is 20 years (15 years in case of a late entrant). The maximum qualifying service including weightage reckonable for pensionary benefits is 33 years.

5. Counting of Other Service
Full pre-commissioned service rendered under the Central Government whether in a Civil Department or in the Armed Forces shall be taken in account while working out the Qualifying service for pensionary benefits and determining the minimum Qualifying service for retiring pension.

6. Calculation of Fraction of Year for Qualifying Service
To calculate the length of the Qualifying service, fraction of a year equal to 3 months and above but less than 6 months shall be treated as a completed one half year and reckoned as Qualifying service.

7. Weightage
The object of the weightage for calculating the Retiring Pension is to give the benefit of entitlement to Retiring pension as close as possible to 50% of reckonable emoluments which is the maximum admissible after 33 years of service. The weightage allowed is as follows

8. Reckonable Emoluments
For the purpose of working out the Retiring Pension the term Reckonable Emoluments means the average of the Pay. Dearness Pay, Non-practising Allowance and the Rank pay and Stagnation Pay, if any, drawn during the 10 months immediately preceding the date of retirement.

9. Quantum of Retiring Pension

• The retiring pension is calculated at 50% of average emoluments. The amount so determined is the retiring pension for 33 years of reckonable qualifying service. For lesser period of reckonable qualifying service, this amount is proportionately reduced. The minimum pension shall not be less than Rupee 1,275/- per month wef 01 Jan 1996.
• Further with effect from 01 Apr 2004, since 50% of Dearness Allowance converted into Dearness Pay is counted for retirement benefits, pension/family pension shall be calculated at 50% and 30% respectively of the pay plus Dearness Pay subject to minimum of Rupee 1,913/- and maximum of 50% and 30% respectively of the highest pay plus Dearness Pay in the Government. The highest pay in the Govt wef 01 Jan 96 is Rupee 30,000/-. The highest pension, as of now, comes to Rupee 22,500/- (i.e. basic pension Rupee 15,000/- + dearness pay Rupee 7,500/- = total pension Rupee 22,500/-).

10. Protection of Retiring Pension
Retiring Pension in the rank of Cdr, Commodore (Captain with 3 years and 10 months , or more service) and Rear Admiral shall in NO CASE be less than the pension admissible to the officer as a Lt Cdr, Captain (with less than 3 years and 10 months service) or as a Commodore, as the case may be, had the officer not been promoted to the higher rank.

11. Retirement/Retiring Gratuity
Please see the details in Chapter IV on Gratuity.

12. Pension Disbursing Authorities
The officers may claim the pension through Govt. Treasury/Pension Payment Masters/ Defence Pension Disbursing Officers. They may also draw the pension through Public Sector Banks, if they so desire. With effect from 09 Jul 05, pensioners can operate the joint account of pension with his/her spouse.

13. Illustration
An illustration showing the procedure for calculation of Retiring Pension is given at appendix H. For a near exact amount of pension and gratuity, officers are advised to browse the NPO website https://www.navpay.gov.in

Source: Indian Navy

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