HAND BOOK
DEFENCE PENSION
FOR
PERSONNEL BELOW OFFICERS RANKS (PBORs)
2021

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 recommendations of the successive Central Pay Commissions. 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 manners.

3. Keeping the above facts in view, the efforts have been made to put the important changes made upto 12/2020 in fundamental principles 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, a few illustrations based on the Seventh CPC are given showing calculation of pension.

6. 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.

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

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

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

PENSIONARY AWARDS IN RESPECT OF PERSONNEL BELOW OFFICERS RANKS

INDEX

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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 1.12016 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 1.12016 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 1.12016 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 : DESW

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