Pension Anomaly Resulting From AVS-I {Updated 18 January 2013}

{NOTE: Contents of this blog post have been updated to reflect the current situation as on 18 Jan 2013, following implementation of Committee Of Secretaries Recommendations}

 
Now that we're awaiting the recommendations of the panel on anomalies affecting pay and pensions of armed forces have been implemented, there are expectations, that some of the less prominent existing anomalies would be rectified and similar aberrations would be prevented in future when the complex processes of introduction of NFFU and modified parity are approached by the powers that be, have not been met fully.

In this context, an existing anomaly, affecting a portion of the armed forces veterans fraternity, requires to be highlighted as it's closely linked to the issue of parity of pensions. It may be added at the outset, any views, comments or corrections in respect of what follows would be very welcome.

• While fixing pensions for Armed Forces Officers who had retired prior to 01 Jan 2006, VI CPC had, initially, not placed retirees in the ranks of Lt Col and Lt Col(TS) in pay band IV. This was done subsequently.
• Even then, no consideration was applied to the issue of parity of pensions of retirees who had retired prior to implementation of Phase-I recommendations of AV Singh Committee with pensions of retirees with equal service who retired after the implementation of AVS-I.
• This led to Officers, holding the same type of commission and with the same qualifying service, being fixed in different pension-tables post VI CPC depending on which side of the AVS-I implementation date they retired on.
• Upto a service tenure of 26 years, the pension of a pre AVS-I Lt Col and Lt Col(TS) would not be an issue. But for a qualifying service of 26 years or more, a retiree with a PC would have automatically been fitted in the pension table for Col/Col(TS) at a pension of Rs.26050/- 27795/- if he had retired after implementation of AVS-I.
• A pre AVS-I Officer retiree, in the rank of Lt Col, also with the same qualifying service of 26 years is now fitted in the column for Lt Cols at a monthly pension of 25700/- 26265/-, and a pre AVS-I Lt Col(TS) at a monthly pension of Rs.24143/- 24674/-.
• {Edit}: These amounts reflect revisions following the implementation of recommendations of the COS Committee and the difference between pre and post AVS-I retirees has become even more glaring.

• {Edit 2}:    A similar anomaly existing for Major retirees with more than 21 years of service was recently rationalised albeit on different grounds but reflecting on principles very similar to those sought to be highlighted in this blog post. More details on that rationalisation can be accessed through this link.

At a time when a weighty subject like One Rank One Pension is hanging fire over the entire veteran community, surely this anomaly ought to strike some people as being an issue. It requires to be understood that this pre/post AVS-I issue would also impinge on pensions of Major, Capt and Lt, though different conditions might apply.

This also does not exactly amount to yet another outburst as to why the AVS-I recommendations were not implemented retrospectively. Here the issue is an award of VI CPC, not AVS-I, which treats two identical tenures of service differently while fixing pension merely on account of the intervention of the implementation of AVS-I.

All service people would know there is no select rank involved here. If an Officer retiring post AVS-I after 26 years of service automatically gets Rs. 26050/- 27795/- as pension without getting the next select rank, it stands to reason the pay-commission should have fixed the pension at the same level in the case of all other Officers, with the same type of commission and with the same qualifying service, who retired without picking up the next equivalent select rank prior to AVS-I.

This line of reasoning ought to have been given due consideration at the time of implementing the anomalies-panel recommendations. The subject of the blog post relates merely to the parity of one set of armed forces pensioners. When fitment into bands takes place after introduction of NFFU, these concerns could assume even greater importance and complexity.

The following table aims to bring out the rationale for refixing the pensions of pre AVS-I Lt Col/Lt Col(TS) retirees (with qualifying service of 26 years and more) to equal those fixed for post AVS-I Col/Col(TS), with equal service,  as shown in the area shaded yellow.

Qualifying Service	PENSIONS OF PRE 01-01-2006 PENSIONERS VIDE ANNEXURE-A to MOD LETTER 1(11)/2012-D(Pension/Policy) 17-01-2013 {All figures subject to verification}			PENSIONS REQUIRED FOR OBTAINING PRE/POST AVS-I PARITY
	LT COL(TS)	LT COL	COL/COL(TS)	LT COL(TS)	LT COL
				{FOR THOSE WHO, IF THEY HAD NOT RETIRED BEFORE AVS-I, WOULD HAVE BEEN ELIGIBLE POST AVS-I FOR COL[TS] RANK ON COMPLETION OF 26 YEARS OF SERVICE MENTIONED IN FIRST COLUMN}
20	19898	21490	22742	19898	21490
20.5	20296	21888	23163	20296	21888
21	20694	22286	23584	20694	22286
21.5	21092	22684	24005	21092	22684
22	21490	23082	24426	21490	23082
22.5	21888	23480	24848	21888	23480
23	22286	23878	25269	22286	23878
23.5	22684	24276	25690	22684	24276
24	23082	24674	26111	23082	24674
24.5	23480	25072	26532	23480	25072
25	23878	25470	26953	23878	25470
25.5	24276	25868	27374	24276	25868
26	24674	26265	27795	27795	27795
26.5	25072	26265	27795	27795	27795
27	25470	26265	27795	27795	27795
27.5	25868	26265	27795	27795	27795
28	26265	26265	27795	27795	27795
28.5	26265	26265	27795	27795	27795
29	26265	26265	27795	27795	27795
29.5	26265	26265	27795	27795	27795
30	26265	26265	27795	27795	27795