Friday, December 04, 2015

Increments Earned, Pensions And OROP

In the matter of VI CPC pensions fixed for pre 01 Jan 2006 retirees, circular 397 issued by PCDA states at para 6.1, "The consolidation of pension will further be subject to the provision that the consolidated pension, in no case shall be lower than 50% of the minimum of the pay in the pay band plus the grade pay, military service pay (MSP) and ‘X’ Group pay (where applicable) introduced from 01.01.2006 corresponding to the pre revised scale from which the pensioner had retired/discharged for 33 years qualifying service and for lesser qualifying service (including admissible weightage) it will be proportionately reduced".

This circular was amended vide Circular 500 subsequently to clarify, "...the minimum guaranteed pension and ordinary family pension in respect of Pre-2006 Commissioned officers, pensioners/ family pensioners has been determined as 50% (fifty) and 30% (thirty) percent respectively, of the pay in the pay band corresponding to minimum of prerevised pay scale as indicated under fitment tables annexed with SAI 2/S/2008 as amended and equivalent instructions for Navy & Air Force and SAI 4/S/2008, plus Grade pay corresponding to the pre-revised scale from which the pensioner had retired/ discharged/invalided out/died including Military Service Pay, wherever applicable. date of fixation of pensions (01 Jan 2006 as against the original..."


or as the accompanying MOD letter had stated,

"..minimum of the fitment table for the rank in the revised pay band as indicated under fitment tables annexed with SAI 2/S/2008 as amended and equivalent instructions for navy and Air Force and SAI 4/S/2008 plus the Grade pay corresponding to the pre-revised scale from which the pensioner had retired ...... including Military Service Pay..... ".

The Circular had fixed this minimum guaranteed pension wef 24 Sep 2012.

The date was subsequently changed to 01 Jan 2006 very recently.

In this season of talk of increments based pension fixation, fuelled by the new matrix put out by 7 CPC, it has come to light on the web that some stalwarts seem to suggest that fixation of the minimum guaranteed pension wef 01 Jan 2006 needs to take into account the increments actually earned in the "pre-revised pay-scales" by pre 01 Jan 2006 retirees. It is understood this is based on some judicial ruling applicable to retirees with Maj Gen rank in which increments earned are said to have been made a basis for determining the pensions of these affected Officers.

As details have not been shared, it can not be said with any certainty whether or not the context of litigation involving the Maj Gen retirees would also apply to other pensioners.

But it is an interesting development.

There would be a need to study where in the fitment tables would a particular pensioner stand after considering the increments he had earned in the pre-revised scale (pre 01 Jan 2006 pay-scale).

Then there would be the calculation and payment of arrears from 01 jan 2006.

But would that not affect the calculation methodology for OROP? It may become necessary for OROP calculation to be based on number of increments required to reach a certain number of years of service for a pay-band for a specific rank rather than on the "average of minimum and maximum pension in 2013", whatever that means.

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