SCPC: IESM Advisory and Pension Anomalies

Respected Sir,
The advisory is a must. You have done a right thing at the right time. Come what may. We will stand to it. It is a great guidance to our PBORs who are running from pillar to post for the past 60 years for a Leader and good Leadership. Now we have got it, that is IESM, Lt Gen Raj Kadyan and its team. We will win. May God bless u all with good health to enjoy the fruits of victory.
Yours sincerely,
C Muthukrishnan (Ex Sgt)
Active Member IESM
Blog: indianexserviceman.blogspsot.com

ANAMOLY IN FIXING MINIMUM PENSION/ FAMILY PENSION
The consolidation of revised pension as per para 4 of MOD letter dt.11.11.08, enhances the minimum pension of Rs.1,275 to Rs 2883. However, the Commission was gracious enough to ignore the formula and fixed the minimum pension/family pension toall as Rs 3500/-. The Commission had added Rs 617 to the consolidated amount of Rs 2883 and fixed the minimum pension/family pension as Rs 3500/. But at the same time it had not allowed the addition of Rs 617 uniformly to all range of pensioners. While the pre- revised minimum pension of Rs 1275 can be equated to Rs 3500, then the pre- revised pension of Rs 1548 should be equated to Rs 4117 and not 3500 as given in the Table Annexure I. The consolidation formula failed to provide adequate increase in the revised pension and therefore the commission recommended the minimum pension to be Rs 3500. The same amount of addition of Rs 617 should have been given throughout the range of all the pensioners.

ANAMOLY IN REVISING THE DISABILITY PENSION
When a defence pensioner, say for example a Sepoy is said to be drawing Rs 1275 as service element and Rs 310 as (20%) disability element. Now while revising the pension, the Banks are adopting the most disadvantageous method. They add Rs 1275 and 310 and arrive at 1585 and they refer Annexure I to find out the revised pension equal to 1585 which is Rs 3583. On the other hand, if the revision is done separately for service element and disability element then the revised pension will become as follows:

The service element 1275 will fetch Rs 3500 and the disability element Rs 310 will fetch Rs 700 thereby a total of Rs 4200 will be his revised pension. Now find out the difference in the revised pension between the two methods. The difference is Rs 617. The beneficial methods should always be applied. The MOD should give specific instructions to all PDAs in this regard. If the consolidation is done separately for service element and disability element, the revised pension will be as under:-

Pre-revised pension 1275 will be revised to Rs 3500. Pre-revised 20% disability of 310 if consolidated Separately as per para 4.1 of MOD letter dt.11.11.08. Then the revised disability for the pre-revised 310 will be Rs 700. Total revised pension will be Rs 4200. DR @ 22% will be Rs 924. Total pension Rs 5124. Instead if it is consolidated by adding the pre-revised service element of Rs 1275 with the pre-revised disability element of Rs 310 together to 1585 and the referring Annexure 1 it will fetch Rs.3583. Now look at the difference in the revised pension in both methods.

By separate consolidation method Rs 4200

By adding together Rs 3583

Reduction in monthly pension Rs 617
The total reduction in the monthly pension from 1.1.06 to 31.3.09 For 39 months including DR Rs 26,141. The reduction in the monthly pension will be same for all ranks as shown above. Therefore all pensioners who are drawing disability pension are requested to verify that they are paid the following rates of disability pension w.e.f. 1.1.06 with DR calculated separately.
Disability
100% Rs 3500
90% Rs 3150
80% Rs 2800
70% Rs 2450
60% Rs 2100
50% Rs 1750
40% Rs 1400
30% Rs 1050
20% Rs 700