Thursday, September 10, 2009

Restoration of Commutation: Officers employed in PSU's

Dear Brig Kamboj,
An officer from the Pay Cell has sent to me the attached documents through which the commuted portion of the pension of officers who went on deputation to PSUs has been restored.
You had referred the case of Brig Rao to me two months ago. This mail has come to me in response to the case which I sent to them.
I think this should cheer up our colleagues who took the 'plunge' many years ago!
With best wishes,
Maj Gen Surjit Singh (Retd)

Riders yet to be debugged
Unfortunately, the letter does not deal with restoration of commuted portion per se.
The orders for restoration of commuted portion were issued way back, but in certain cases the pension as per the pre-revised scales' commuted value was turning out to be more than the pension as per the revised scales. Hence the govt vide orders dated 27 May 2009 (enclosed herewith) for civil employees had merely directed that the affected personnel may continue drawing the pre-revised scales till the time the revised scales turn out to be more beneficial. Now vide this new letter dated 21 Aug 2009, the MoD has just accepted the govt letter for civil employees mutatis mutandis for such affected retirees from the armed forces. The only difference in commutation is (as was the case earlier too) that in case of civil employees, the commuted portion is 33% while for faujis it is 43% for Offrs and 45% for PBOR.

The letter dated 21 Aug 2009 is hence not a resolution of any separate anomaly for the armed forces and is not a restoration of full pension for PSU absorbees that has been an old (and correct) demand.

Just to remind the readers, while such absorbees are granted 100% pension commutation on joining PSUs / other autonomous bodies, the restoration of pension is only granted @33% (civilians) / 43% (Defence Offrs) / 45% (PBOR) after the prescribed period is over and the entire (100%) pension is not restored, now this is an anomaly which requires rectification and on which a logical decision has not been taken till date.
Maj Navdeep Singh
Advocate High Court

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