GOVERNMENT OF INDIA
MINISTRY OF DEFENCE
RAJYA SABHA
QUESTION NO 2382
ANSWERED ON 15.07.2019

Re fixation of pension under OROP

2382 Shri Rajeev Chandrasekhar

Will the Minister of DEFENCE be pleased to state :-

(a) whether Government is aware of the letter from Controller General of Defence Accounts (CGDA) dated 5th April, 2019 that seeks clarification on Notification 12(1)2014/D(Pen/Pol)-Part II dated 7th November, 2015 on re-fixation of pension under One Rank One Pension (OROP);

(b) steps taken by Government on the queries raised in the letter from CGDA; and

(c) whether Government will implement re-fixation of pension under OROP on 1st July, 2019 as per notification dated 7th November, 2015?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF DEFENCE
SHRI SHRIPAD NAIK

(a) Yes, Sir.

(b) & (c): Ministry of Defence, Department of Ex-Servicemen Welfare vide Order No.1(1)2019/D(Pen/Pol) dated 14.06.2019 has constituted a Committee under the Chairmanship of Controller General of Defence Accounts (CGDA) to work out the modalities & methodology of implementation of next revision of pension under One Rank One Pension (OROP). The composition of the Committee is as under:-

(i) CGDA : Chairperson
(ii) Joint Secretary (ESW) : Member
(iii) Addl FA, Defence (Finance) : Member
(iv) Representative of three Services: Member
(v) Addl CGDA : Member
(vi) PCDA (P), Allahabad : Member
(vii) Joint CGDA (Pension) : Member & Convener

*****

Source: Rajyasabha

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“The fixation of pension/ family pension of retired Medical officers of AMC/ADC/RVC in the above manner, shall be further subject to the condition that emoluments (i.e. Basic Pay MSP + NPA) to be reckoned for pension do not exceed Rs. 2,37,500/- (Rupees two lakh thirty seven thousand and five hundred only). Amount of Gratuity and CVP which has already been notified, shall remain unchanged. ”

No.1(7)/2014/D(Pen/Policy)
Government of India
Ministry of Defence
Department of Ex-Servicemen Welfare

New Delhi, 24th May, 2018

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

Sub: Implementation of Government’s decision on the recommendations of the Seventh Central Pay Commission on revision of provisions regulating Pension/Gratuity/Commutation of Pension/Family Pension including pensionary awards notified in terms of casualty pensionary awards Fixation of Pension of Commissioned Officers of Army Medical Corps/Army Dental Corps/Remount & Veterinary Corps retired during 1.1.2016 to 30.6.2017.

Sir,

The undersigned is directed to refer to this Ministry’s letter No.17(02)/2016/D(Pen/Pol) dated 4th September, 2017. In accordance with Para 4.1.1 of said letter, the emoluments reckoned for calculation of pension include Non Practicing Allowance (NPA) granted to Medical officers of Army Medical Corps /Army Dental Corps / Remount & Veterinary Corps.

2. For Medical Officers of Armed Forces who have retired from 1.1.2016 to 30.6.2017, their pension is based on emoluments which included NPA @ 25% of the pre-revised pay. Orders have been issued by Ministry of Defence vide letter No. 4(10)/2017/D(Med) dated 28th September, 2017 for grant of NPA to serving medical officers @ 20% of basic pay w.e.f. 1.7.2017. Accordingly, the medical officers retired/retiring on or after 1.7.2017 are entitled to pension based on emoluments which include NPA at the rate of 20% of the revised basic pay.

3. The matter regarding revision of pension the Medical Officers of Armed Forces who retired during 1.1.2016 to 30.6.2017 based on revised rate of NPA has been examined by the Government. It has been decided that all kind of pension/family pension in respect of Medical officers of Armed Forces who retired/died during 1.12016 to 30.6.2017 and were drawing NPA at old rates on the date of retirement/death, shall be further revised w.e.f. 1.7.2017 by adding NPA @ 20% to the basic pay on the date of retirement. The fixation of pension/ family pension of retired Medical officers of AMC/ADC/RVC in the above manner, shall be further subject to the condition that emoluments (i.e. Basic Pay MSP + NPA) to be reckoned for pension do not exceed Rs. 2,37,500/- (Rupees two lakh thirty seven thousand and five hundred only). Amount of Gratuity and CVP which has already been notified, shall remain unchanged.

4. This issues with the concurrence of Ministry of Defence(F1nance/Pension) vide their ID No. 10(8)/2018/Fin.Pen dated 11.05.2018.

5. Hindi version will follow.

Yours faithfully,
Sd/-
(Manoj Sinha)
Under Secretary to the Government of India

Source: www.desw.gov.in

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In implementation of Government’s decision on the recommendation of the Seventh Central Pay Commission (7th CPC), orders have been issued vide Department of Pension & Pensioners’ Welfare O.M. No. 38/37/16-P&PW(A) (i) dated 04.08.2016 for revision of provisions regulating pension/gratuity/ commutation of pension/family pension/disability pension/ex-gratia lump-sum compensation, etc. in respect of the employees retiring on or after 01.01.2016.v For revision of pension of pre-2016 civil pensioners, the 7th CPC recommended the following two formulations:

(i) Notional Pay of employees who retired prior to 01.01.2016 may be fixed in the Pay Matrix on the basis of the Pay Band and Grade Pay at which they retired, by adding the number of increments he/ she had earned in that level while in service, to the minimum of the corresponding level in the matrix. Fifty percent of the total amount so arrived at shall be the revised pension.

(ii) The pension, as had been fixed at the time of implementation of the 6th CPC recommendations, may be multiplied by 2.57 to arrive at an alternate value for the revised pension.

7th CPC recommended that the pensioners may be given the option of choosing the formulation which is more beneficial to them. Orders were issued for revision of pension as per Formulation (ii) above vide Department of Pension & Pensioners’ Welfare O.M. No. 38/37/16-P&PW(A) (ii) dated 04.08.2016 and the pension disbursing authorities were advised to make payment of revised pension accordingly without waiting for the revised pension payment authority. A Committee under the chairmanship of Secretary, Department of Pension & Pensioners’ Welfare was constituted to examine the feasibility of Formulation (i). The Committee observed that Formulation (i) as recommended by the 7th CPC might be difficult to implement in a large number of cases and this method may also cause anomalies.

In implementation of the recommendations of the aforesaid Committee, orders have been issued vide Department of Pension & Pensioners’ Welfare O.M. No. 38/37/16-P&PW(A) dated 12.05.2017. It has been provided that the revised pension/family pension w.e.f. 01.01.2016 in respect of all Central civil pensioners/family pensioners may be revised by notionally fixing their pay in the pay matrix recommended by the 7th CPC in the level corresponding to the pay in the pay scale/pay band and grade pay at which they retired/died by notional pay fixation under each intervening Pay Commission based on the Formula for revision of pay. 50% of the notional pay as on 01.01.2016 shall be the revised pension and 30% of this notional pay shall be the revised family pension w.e.f. 1.1.2016. Higher of the two Formulations i.e. the pension/family pension already revised in accordance with this Department’s OM dated 04.08.2016 or the revised pension/family pension as worked out by notional pay fixation method, shall be the revised pension/family pension w.e.f. 01.01.2016.

There were around 55.51 lakh pensioners/family pensioners (including defence pensioners/family pensioners) as on 31.03.2016. All Pension Sanctioning Authorities have been advised to accord top priority to the work of revision of pension and issue revised Pension Payment Authority in implementation of the above orders expeditiously.

There is no proposal for creation of any other organisation for pension related issues.

This was stated by the Minister of State for Personnel, Public Grievances and Pensions and Minister of State for Prime Minister’s Office, Dr Jitendra Singh in a written reply to question by Adv. Narendra Keshav Sawaikar and Shri P. Nagarajan in the Lok Sabha today.

PIB

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Cabinet accepts both two options for fixation of 7th CPC Revised Pension

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RAGHUNATHAN
Retired Central Govt Officer

FIXATION OF REVISED PENSION as per Para 10.1.67 , Sub para (i) of 7th CPC Report : Pre-2016 RETIREES
Shall First be fixed in the Pay Matrix on the basis of Pay Band and Grade Pay at which they Retired at the minimum of the Corresponding Level in the MATRIX..This amount shall be raised, to arrive at the Notional Pay of the Retiree, by adding th.e number of Increments he/she had earned in that Level while in Service, at the rate of 3 %. Fifty percent of the Total Amount so arrived at shall be the REVISED PENSION.

To arrive at the Notional Pay, the Number of Increments earned by the Retiree in the PAY SCALE AT THE TIME OF HIS RETIREMENT is to be DETERMINED based on the LAST BASIC PAY drawn in this PAY SCALE.

Hence, the Number of STAGES in the PAY SCALE at the time of Retirement from the STARTING PAY of the Pay Scale UPTO the .LAST BASIC PAY drawn DETERMINES the Number of Increments Earned (GAINED) by the Retiree.

Illustration on Fixation of Pension in Case 2 of Para 10.1.71 is RELEVANT.

In the above Illustration, it is mentioned that Pensioner retired at LAST PAY drawn of Rs.4000/- having drawn 9 Increments in the RETIRING PAY SCALE of Rs.3000-100-3500-125-4500. The Number of STAGES in this PAY SCALE from the STARTING PAY ( Rs.3000/-) UPTO the LAST BASIC PAY (Rs..4000/-) drawn is obviously 9 (NINE) which is Indicative of the Number of Increments Earned (GAINED) by the Retiree.

In View of the above Explanation, THE NUMBER OF STAGES IN THE RETIRING PAY SCALE FROM THE STARTING PAY OF THE PAY SCALE
UPTO THE LAST PAY DRAWN SHOULD BE TREATED AS THE NUMBER OF INCREMENTS EARNED (GAINED) BY THE RETIREE in the Retiring Pay Scale..This is for the Purpose of Fixation of Pension as per the Formulation shown in Para 10.1.67, Sub Para (i) of the 7th CPC Report.

Otherwise, Junior Pensioners will get MORE REVISED PENSION THAN SENIOR PENSIONERS resulting in Disparity and Injustice.

This may please given wide Circulation and brought to the Notice of Implementation Committee. I am THANKFUL AND GRATEFUL to You Sirs,
for Your Needful action.

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