Showing posts with label pay commission. Show all posts
Showing posts with label pay commission. Show all posts

7 CPC Concordance Tables And Their Effect On Pay Parity Status: Lt Col


(Updated): This has been elaborated upon in very many blog posts, on this blog and else where. The following annotations made on the 7CPC concordance table for Lt Col are an attempt to illustrate how the absence of a direct co-relation between Notional Pay and QS makes an equitable parity impossible between pensions of older retirees and pensions of those retiring after 01 Jan 2016. This is particularly significant for ranks that are attained on time-bound basis viz., Lt to Col (TS) at present.

{Edit: These issues have become even more relevant now in view of some documents, obtained through RTI by an eminent blogger and posted by him online, in which an assertion has been made by CGDA that with the implementation of 7CPC, to quote the document, "The notional pay formula brings all past pensioners to current rates, almost as if they were serving under VIIth CPC". In the case of Officer veterans, who retired before 31 Dec 2004, in ranks which are nowadays time-bound, the veracity of such assertions does need a circumspect examination. They may well have just grounds to "clamour for" a relook at the whole matter of pension fixations under OROP and now 7CPC}

 Essentially, why the method of using formulas for notional pay between successive pay commissions can’t deliver on principle of “equal remuneration for equal work” is that it does not normalise notional pay across CPCs by not keeping in view how fast, in terms of QS, a Lt Col serving or retiring past 01 Jan 2016 reaches an increment stage in the 7CPC matrix compared to a pre December 2004 Lt Col retiree.

This becomes very clear in the case of Lt Col(TS) retiree of pre 16 Dec 2004 era and Lt Col of VI CPC and Lt Col of VII CPC. All the three are time-bound ranks. What the concordance table implies, in effect, is that if an Officer retired in rank of Lt Col(TS) after serving for around 30 years in regime of 4 CPC, or about 25 years during regime of V CPC, then the notional pay of those Lt Col veterans would be equal to pay of a Lt Col with about 16 years of service, now also a time-bound rank, during regimes of VI and VII CPC.

In other words, with the Concordance Tables, an Officer who retired during period of 5 CPC as Lt Col (TS) in November 2004 or earlier with a service of 28 to 29 years, would have his 7 CPC notional pay fixed from 01 Jan 2016 equivalent to the pay of a Lt Col in January 2016 having a qualifying service of approximately 16 to 17 years, in spite of both being time-bound ranks.

The concordance table and notional pay method do not even begin to touch upon the issue of how notional pay of a Lt Col of IV and V CPC with more than 26 years of service, based on parity and equity principles cited in VII CPC reportwould in fact need to have his “notional pay” fixed at par with a Col (TS) of VI and VII CPC with equal service. {Edit: But in light of very recent legal developments, it may be in order to stop seeking pension parity with pension of a specific "rank". Ranks, as mentioned previously, are not a "constant" construct. They alone can't provide a true measure of entitlement of a deferred wage or provide a basis of parity for time-bound ranks. Parity of pension for Officers of a specific type of commission who retired in time-bound ranks of their era of service has to be based on broad principles cited in the pay commission report itself and on constant, defining measures of service rendered by such veteran officers in the past viz., the type of their commission and their QS in their time-bound rank}

In the present case, parity is not maintained even in the same rank based on years of service.




Formulas applied from one pay commission to the next one can lead to a reasonably rational fixation of the 7 CPC notional pay for most cases. But in the case of armed forces veteran officers who had retired prior to 31 Dec 2004, unless another formula is applied for the pay-rank-QS combination existing prior to 16 Dec 2004 and the same combination post that date, this notional pay fixed by this manner of merely using formulas for pay from one pay commission to the next will always fall well short of what an equitable notional progression would have brought about as suggested in (please click to access —->) this table.


A Few Queries On Concordance Tables For Pensioners In Rank Of Major

It has been nearly 21 months since some issues were raised in the previous blog-post, with the example of the rank of Lt Col, as to how the concept of notional pay would need to be applied for those who had retired prior to 01 Jan 2006, especially many of those armed forces officers who had retired prior to implementation date of phase-I recommendations of AV Singh Committee. 

True to expectations, the Concordance Tables, that were finally released about four months ago, raised a few doubts as to whether the tables had approached the matter from point of view of resolving existing anomalies and that of ensuring parities between pensions of older and current pensioners, a principle that was strongly endorsed by VII CPC itself. Aspects of fairness and equity thus continue to remain an issue. 

What may appear to be infirmities or incongruities, leading to possible apprehensions of an award not being fully equitable, can best be examined in concordance tables applicable to pensioners in armed forces officer ranks which are now time-bound. The most significant example would be Concordance Tables for the ranks of Major, Lt Col(TS) and Lt Col. An extract of Concordance Table for the rank of Major is placed as follows: {The full set of tables is viewable on DESW PCDA web-site through this link }



The first example is the Concordance Table for the rank of Major. 


The first thing for pre 2006 (I'll repeat here, 2006) Major retirees to note is that the maximum notional pay of Rs. 118100/- in the last column should, by all logic, correspond to the 7CPC pay of a Major with about 25 years of QS, even though no Officer with that QS would be in the rank of Major nowadays. 

That means the highest pay of 14850/-+975/- of a Major retiree in the period 01-01-1996 to 31 Dec 2005 corresponds to the equivalent 2016 notional pay of 101900/-, which when referring to the matrix should be the pay of a Major of 2016 having a QS of about 20 years. Now those Major retirees of the period 01-01-1996 to 31 Dec 2005 who were drawing a basic pay of 14850+975 at the time of retirement can compare their own QS at retirement with the figure of 19 ~ 20 years at which their fixed "notional pay" of 101900/- would be earned by someone serving/retiring as Major in 2016 or later.

The question arises whether or not first three columns of basic pay (01/01/86 to 31/12/95, 01/01/96 to 31/12/2005 and 01/01/2006 to 31/12/2015) as well as the fourth column for "pay range from 01/01/2006 to 31/12/2015, have attempted to take into cognizance the equivalence of qualifying service rendered by retirees in that time-bound rank in the three distinct time-frames mentioned above. At first glance, it does not appear to be the case. 

At all stages of the concordance table, has any consideration been applied to qualifying service of a Major who retired in the period 01/01/1996 to 31/12/2015 vis-a-vis the qualifying service of the Major drawing that so called "notional/equivalent" pay for the period 01/01/2006 to 31/12/2015? The table, with no reference to qualifying service, equates the starting pay of Major with a service of 11 years at the beginning of the scale for the period 01/01/96 to 31/12/2005 with the starting pay of Major with a service of approximately 6 years for the period 01/01/2006 to 31/12/2015.  

The table also does not appear to provide for the fact that a Major from the period 01/01/2006 to 31/Dec/2015 would be in the pay-band of Lt Col starting at a QS of app 13 years on time-bound basis and that the parity based equivalence of the older Maj Pensioner from the period 01/01/1996 to 31/12/1995 would be the corresponding pay of Lt Col with equivalent service in period 01/01/2006 to 31/12/2015.

Therefore the title  "Corresponding Level wef 01/01/2016" at top of the table is based on the rather ambiguous premise that any value in any particular column "corresponds" to juxtaposed values in the same rows in other columns. It is like saying 5 apples of 1996-2005 correspond to 8.6 oranges of 2006-2015.

The relevance of the argument for basing pension equivalence/parity, in the case of ranks which are time-bound, on rational notions, as against accountancy tables, can be discerned in logic advanced in this old blog post.

More to follow on tables applicable to Lt Col (TS) and Lt Col.




The Notional Pay Based VII CPC Pension Formulation : Lt Col And Equivalent Ranks

It is quite possible that theorizing on outcomes, based on bare assumptions, can lead to grossly inaccurate and misleading views on how re-formulation of VII CPC pensions would shape up.

The increment based formulation as recommended by VII CPC, now having been modified to a calculation based on notional pays in successive pay commissions, could resolve a lot of anomalies related to OROP provided it is implemented keeping firmly in view how OROP and the VII CPC matrix need to form part of a whole.

The scope of this blog post is restricted to the retirees in rank of Lt Col for the sake of simplicity. The intention is to illustrate how the qualifying service of a retiree, a concept central to OROP, needs to be taken into account during any exercise involving fixation of pensions in the VII CPC matrix.

Some key issues arise :

  • Notional pay of most VI CPC Lt Col retirees as determined by the notional pay method will, in all probability will be in order as no major changes have taken place between Vi and VII CPCs in terms of service such as service required for promotions, rank structure etc.  
  • Lt Cols who retired before 01 Jan 2006, especially those who retired prior to implementation of AV Singh Committee (Dec 2004), are likely to have more qualifying service than those who retired after 01 Jan 2006 and as a consequence have less pension for the same qualifying service applicable in the case of a Lt Col retiring after implementation of VII CPC. All affected know Lt Col rank became applicable on time-bound basis at a qualifying service of 13 years with effect from 16 Dec 2004.
  • For fixing the VII CPC notional pay of pre 01 Jan 06 Lt Col retirees, some mechanism may have to be found to make sure their VII CPC notional pay finally arrived at should not be less than the VII CPC notional pay of a VI CPC Lt Col retiree with equal qualifying service.
  • Then, there is the old issue of the need of parity of pensions of older Lt Col retirees with pensions of Col(TS) with equal qualifying service, if they had put in a service of 26 years or more.
Full clarity will emerge only when detailed instructions are issued on re-formulation of VII CPC pensions of armed forces veterans. The following table is meant to illustrate how the re-formulation should proceed :

{Update: With the recent release of orders for calculating "Notional Pay", a detailed revision of this blog-post has become necessary. An update will follow}




Some Notions Of Progression For Pension Fixation

Some time ago, I had come across a reference to "notional fixation" in pay-bands applicable to Major for determining the OROP pensions of older pensioners in Major rank, considering no one retires in Major rank anymore due to speedier time-bound promotions. Similar concerns apply in the case of fixation of 7 CPC pensions.

The concept of "notional fixation" was excellent but the rider about restricting the "progression" to a Major's pay-band didn't appeal so much. I had given my opinion, for what it was worth, in a previous blog-post.

To repeat myself, when it comes to time-bound ranks, pension parity needs to be based firstly on the nature of enrolment/commission and the cadre, then on "time" i.e. qualifying service and only after that on the "rank" which is not a constant measure of service rendered in the case of time-bound ranks. Attributes of time bound ranks have changed over the years. In their case, the true measure of service rendered is, well, the service rendered, in number of years. Here's a link to this concept. Again, it applies to 7 CPC as much as OROP.

While working on the co-relationship of qualifying service with stage and level numbers of the 7 CPC Matrix in the previous blog post, it became apparent that the "notional progression" can't be a uni-directional one, leading vertically downwards in the same pay-band.

Such a "notion" budgets for imaginary increments but not the enhancements in grade pay that automatically come with time in reality. So, for a correct "notional progression", the progression has to be downwards and sideways based on what actually happens to those currently serving.

The following example indicates the manner of progression of pay for time-bound ranks which provides a rational basis for fixing 7 CPC pensions of older pensioners.

A critical and basic requirement for the validity of such a downward-sideways progression is, if the older pensioner had been in service after 16 Dec 2004, would he or would he not have been eligible, based on the QS in the extreme left column, for time-based progression to the next higher level shown in the progression path in the table. If the answer to that is in the affirmative, then fixing his pension in the lower pay-band would be a straight-forward case of discrimination.

Even though implementation of 7 CPC pay fixation is reportedly being held in abeyance, the principles of pension parity, as illustrated in the following table, would still be valid regardless of any enhancements in pay levels that might come about):


{Edit}: A little clarification appears in order. The notional progression as suggested in the table needs to be governed by some constraints. 

Notional pay, hence pension, of an older retiree in a certain rank must progress to the level suggested in the table provided currently serving Officers in the older retirees' cadre and with the same type of commission progress on basis of time, i.e. length of service alone, to the higher level as shown.

The progression would, by and large, be applicable up to the rank of Major in most types of commission. But progression to the notional level of current level of Lt Col at service of 13 years may exclude those types of commissions with which Officers do not currently progress automatically to rank of Lt Col at a service of 13 years.

Similarly, notional progression to pay, hence pension, of Col(TS) at a QS of 26 years, as suggested in the table, would be justified for those types of commission with which Officers currently get the rank of Col(TS) after completing a service of 26 years.

A Straight Forward Set Of Pension Parity "Equations" For 7 CPC : Maj, Lt Col, Col(TS) Pensions {Pre Dec 2004 Retirees}

{Matrix Figures Updated}
At the present moment, there is no sign of any movement on implementation of 7 CPC recommendations regarding pensions of armed forces veterans.  {Edit: The 7 CPC recommendations were subsequently implemented using a inter-CPC formula based "notional pay" method instead of using increments, which too did not attempt to normalise fixation of "notional pay" based on qualifying service.}

If and when some orders are issued, these are likely to be only for fixing pensions by multiplying either VI CPC or OROP pensions by 2.57. Multiplying VI CPC pensions by 2.57 is likely to yield January 2016 pensions nearly equal to or less than OROP combined with the January 2016 DR.

In a scenario like that, with OROP anomalies still not sorted out, it may be hoping for the impossible to expect rationalization of the good old 20 years Major and 26 Years Lt Col pension anomalies.

Enough has been posted about that. Here is a brief summing up, as a kind of "impossible to realize wish-list", in the form of two "equations":

PL11;i(8--->20) = PL12A;i(1--->13) for older ( pre Dec 2004) Maj pensioners.

PL11;i(21--->28) PL12A;i(14--->20) = PL13;i(12--->18) for older ( pre Dec 2004) Maj and Lt Col pensioners with PCs.


P ---> Pension corresponding to a specific increment-stage cum matrix-level combination.
L ---> 7 CPC Matrix Level.
i ---->7 CPC Matrix index number increment stage for level.

As an example, the first equation states pension calculated for level 11 increment stage 9 should equal the one for Level 12A index increment stage 2, but won't.

Pensions corresponding to appropriate cells can be calculated based on the pay in the matrix as follows and then checked for the requisite but eternally elusive parity as per equations above (even though implementation of 7 CPC pay fixation is reportedly being held in abeyance, the of principles of pension parity, as illustrated in the following tables, would still be valid regardless of any enhancements in pay levels that might come about):

{Update: With recent, May 2017, amendments to IOR (multiplication factors), the figures displayed in different “levels” may changed and will be are now updated in a subsequent this blog-post. as and when amended Matrix is made available. The suggested manner of parities for pre 2016 retirees in time bound ranks still remains relevant}


Pay Band à
15600-39100
37400-67000
Grade Pay -à
6600
8000
8800
Level –>
11
12A
13
1
69400
121200
130600
2
71500
124800
134500
3
73600
128500
138500
4
75800
132400
142700
5
78100
136400
147000
6
80400
140500
151400
7
82800
144700
155900
8
85300
149000
160600
9
87900
153500
165400
10
90500
158100
170400
11
93200
162800
175500
12
96000
167700
180800
13
98900
172700
186200
14
101900
177900
191800
15
105000
183200
197600
16
108200
188700
203500
17
111400
194400
209600
18
114700
200200
215900
19
118100
206200
20
121600
212400
125200
129000
132900
136900



Even though such charts have been prepared and shared in dozens of other formats, based on the above considerations a rough indicator of the manner in which 7 CPC pensions need to be calculated is as follows:

Pay Band
15600-39100
37400-67000
Grade Pay
6600
8000
8700
Entry Pay (EP)
25980
45400
48900
Level
11
12A
13
Qualifying Service
Increment
Stage
Increment StageIncrement
Stage
6
1
69400





7
2
71500
8
3
73600
9
4
75800
10
5
78100
11
6
80400
12
7
82800
13
8
85300 (Pay of level 12A should apply for calculating 7 CPC Pensions)
1
121200 ✓  
14
9
87900 (Pay of level 12A should apply for calculating 7 CPC Pensions)
2
124800 ✓ 
15
10
90500 (Pay of level 12A should apply for calculating 7 CPC Pensions)
3
128500 ✓ 
1
130600
16
11
93200 (Pay of level 12A should apply for calculating 7 CPC Pensions)
4
132400 ✓ 
2
134500
17
12
96000 (Pay of level 12A should apply for calculating 7 CPC Pensions)
5
136400 ✓ 
3
138500
18
13
98900 (Pay of level 12A should apply for calculating 7 CPC Pensions)
6
140500 ✓ 
4
142700
19
14
101900 (Pay of level 12A should apply for calculating 7 CPC Pensions)
7
144700 ✓ 
5
147000
20
15
105000 (Pay of level 12A should apply for calculating 7 CPC Pensions)
8
149000 ✓ 
6
151400
21
16
108200 (Pay of level 12A should apply for calculating 7 CPC Pensions)
9
153500 ✓ 
7
155900
22
17
111400 (Pay of level 12A should apply for calculating 7 CPC Pensions)
10
158100 ✓ 
8
160600
23
18
114700 (Pay of level 12A should apply for calculating 7 CPC Pensions)
11
162800 ✓ 
9
165400
24
19
118100 (Pay of level 12A should apply for calculating 7 CPC Pensions)
12
167700 ✓ 
10
170400
25
20
121600 (Pay of level 12A should apply for calculating 7 CPC Pensions)
13
172700 ✓ 
11
175500
26
21
125200 (Pay of level 13 should apply for calculating 7 CPC Pensions)
14
177900(Pay of level 13 should apply for calculating 7 CPC Pensions)
12
180800 ✓ 
27
22
129000 (Pay of level 13 should apply for calculating 7 CPC Pensions)
15
183200 (Pay of level 13 should apply for calculating 7 CPC Pensions)
13
186200 ✓ 
28
23
132900 (Pay of level 13 should apply for calculating 7 CPC Pensions)
16
188700 (Pay of level 13 should apply for calculating 7 CPC Pensions)
14
191800 ✓ 
29
24
136900 (Pay of level 13 should apply for calculating 7 CPC Pensions)
17
194400 (Pay of level 13 should apply for calculating 7 CPC Pensions)
15
197600 ✓ 
30

141000(Pay of level 13 should apply for calculating 7 CPC Pensions)
18
200200 (Pay of level 13 should apply for calculating 7 CPC Pensions)
16
203500 ✓ 
31

145200(Pay of level 13 should apply for calculating 7 CPC Pensions)
19
206200 (Pay of level 13 should apply for calculating 7 CPC Pensions)
17
209600✓ 
32

149600(Pay of level 13 should apply for calculating 7 CPC Pensions)
20
212400(Pay of level 13 should apply for calculating 7 CPC Pensions)
18
215900 ✓ 
33



19