Sixth Pay Commission Pension Arrears

I tend to disagree with the figures for revised pension with effect from 01 Jan 96 at Pension Arrears Table. A Table has been given in Annexure 5.1.1 of Pay Commission Report, which shows revised pension figures with respect to old pension plus Dearness pension. Para 5.1.47, however, mentions that: The fixation of pension as per the Table will be subject to the provision that revised pension, in no case, shall be lower than fifty per cent of the sum of minimum of the pay in pay band and the Grade pay thereon corresponding to pre- revised pay scale from which the pensioner had retired. To this extent, a change would need to be allowed from the fitment shown in the Table.

Pension Table
I am not clear whether minimum of pay bands are to be taken as 15600 (from Lt to Brigadier) and 39200 (Maj Gen and Lt Gen) of their respective pay bands 15600-39100 and 39200-67000, or the pay which corresponds to minimum of the pay band of their ranks at which serving officers pay is being fitted. For example, a serving Major General whose pre- revised pay is Rs 18400 will have his revised pay as Rs 43280 + Grade pay of Rs 9000, total of 52280, in the pay band 39200- 67000 (Table 2.31 pages 89-92). In the Table below, Column 5, Alternate 1 gives revised pension based on minimum of pay bands 15600-39100 and 39200-67000. Column 6, Alternate 2, gives pension based on basic pay, Grade pay and Military Service Pay, which is being given to serving officers at the minimum of the pre- revised scales.

If Alternate 1 is to be followed pension for Capt, Maj and officers of the rank of Maj Gen and above shall get pension as per Column 5, while others will get as per column 4. If Alternate 2 is to be followed, all officers will get pension as per Column 6. Base year for calculation of DA has been recommended by Pay Commission to be revised to 2006 and frequently thereafter. If Government revises base year before implementing Pay Commission recommendations, DA may be payable at lower rates than 5%, 11%, 17% and 23% paid so far wef 01 July 06, o1 Jan 07, 01 Jul 07 and 01 Jan 08 respectively. Amount of arrears may come down accordingly.

AVM RP Mishra

Comments: Interpretation of pension arrears have perplexed many of the financial pundits. Ultimately CDA Pensions are the true authority who will credit arrears into our Bank Accounts, when the SCPC recommendations are approved for implementation. My gut feeling is that the pension and arrears will be further vetted and maybe even pruned due to budget constraints. Pensioners till then need to be patient and not dream of getting a handsome bounty for a big party! Be prudent and living within one's means makes good sense. Wiser to reduce intake of alcohol from CSD Canteens and not be tempted by the liquor quota. Reducing quota must be the mantra.