Some Pertinent Questions Regarding Pensions of Veterans
My friends and comrades have, by now, read and re- read the Govt of India letter dated 11 Nov 08. They still turn to me for answers to a few very valid questions, which are not explicitly stated in the captioned letter.
Having granted the increased MSP to serving soldiers, and after having accepted it as a part of Basic Pay, the government realized that they could not (or would not like to) bear the burden of admitting this largess to past pensioners. A very ingenious process was then invented to admit it to the past pensioners, and yet contain the financial burden to a negligible amount. Here is how they have achieved it. The formula for revising pensions is as under:
The revised pension for all past pensioners is arrived at by multiplying the current Basic Pension by a factor of 2.26. This Basic Pension does not include the 50% DA merged as DP on 1.4.2004 (For those who retired after 1.04.2004, the Basic Pension must first be worked out by dividing the Pension given in their PPO by a factor of 1.5, since in their case the pension is inclusive of 50% DP)
The pension thus calculated is subjected to ‘the protection clause’ That is, if the pension worked out as above is less than 50% of the minimum of the Pay of the relevant Pay Band plus Grade Pay plus MSP, then the revised pension must be stepped up to the amount thus calculated. By coincidence (or design) the ‘protection clause’ results in a benefit to a small fraction of officers only. Officers of the rank of Lt Col and below as well as the entire gamut of PBOR gain nothing from this clause.
If, as a result of this stepping up, the revised pension of a given rank is found to be lower that that of his lower ranks, then the pension of the senior must be stepped up to become equal to the pension of the lower rank.
An Exception to the Above Rule. Army Commanders, Chiefs and their equivalents in the civil as also the ex-DGs of Police are an exception to the rule. They are on apex scale and have, therefore, been granted Rs 40,000 and Rs 45,000 respectively.
The Resultant Picture of this absolutely brilliant piece of villainy is as under:
Maj Gen Surjit Singh (Retd)
The above is only an exract. Please click on any link below for the complete magic of MSP vanishing into thin air. Bureaucrats are astounding magicians!
Scribd Doc: How the MSP of veterans' vanished into thin air?
Google Doc: How the MSP of veterans' vanished into thin air?