Rank Pay: CDA (O) twists in a New Format

Sunday, 28 October 2012 6:01 PM
PCDA (O) has changed the FORM today
Dear Friends,
Brig PT Gangadharan has been keeping a close watch on our Rank Pay case and the various requirements we are required to send down to CDA(O). This is latest from him. Do collect the necessary data from your service records ( I searched for it today and found that it contains a lot of info) Do pull yours out and see what you can lay your hands on.
Rgds
Niranjan Malik
From: ptgangadharan Date: 28 October 2012 16:04
Subject: PCDA (O) has changed the FORM today
Dear Sir,
PCDA (O) has again changed the FORM again today; fresh details wanted; if you go to the CDA website you will find.
I am enclosing the same New Format: Click here.
Till now this information is required by CDA(O) changes affected every day and once MOD letter comes something more will happen or required.
MOD Letter is still awaited.
Please collate your DATA and keep it ready. Maximum details are in Your Record of Service recd from AGs Branch after your retirement.
PS:- Most of you may not have all the required information. Hence try and give max available information. Archives will have all information. IN & IAF offrs may take similar action with their pay offices.
Regards,
ptgangadharan
New CDA (0) Format
New Format: Click here- Supreme Court Verdict regarding Rank Pay and related matters 09/10/2012)
Address New Completed Form to:
Senior AO. Pay Revision Cell (superscribed "Information: Hon'ble Supreme Court Judgement dated 04/09/2012")
PRINCIPAL CONTROLLER OF DEFENCE ACCOUNTS (OFFICERS)
Golibar Maidan, Pune 411 001

Rank Pay: Unwinding the Bureaucratic Tangle

09 Oct 12
Dear Veterans,
Jai Hind.
I have received some important emails from Head of Pension Division of IESM. The emails are appended below for your information.
On behalf of you all I thank IESM in general and Pension Division of IESM in particular, for putting in all out efforts for the welfare of the veterans. Keep it up Gp Capt SS Phatak and all members of the Pension Division.
Regards
Chander Kamboj
MY third visit to CDA(O) Pune
From: Suhas Phatak
Dear All,
I visited office of CDA(O) Pune this afternoon to find out progress or otherwise on following pending issues:
1 Rank pay arrears after SC judgement
2 GOI letter dated 24 Sep 12 about further clarification on AI2/S/98.(Major's revised minimum guaranteed pension)
3 Enhancement of pension for officers.
Addl CDA(O) Pune was on leave today. I met Mr Agashe, Dy CDA and discussed Rank Pay case. As per him office of CDA(O) Pune is working out financial effect(burden) from whatever data is available which will be transmitted to higher authorities. By all estimates Govt will ask for some more time beyond three months.
Once Govt orders are issued CDA(O) will remit all arrears including gratuity, encashment leave salary difference if any directly to officers account submitted by him.
Action on point no 2 above will be taken suo moto by PCDA Allahabad by issue of Corr PPO.
Similarly PCDA Allahabad will action point no 3 by issue of Corr PPO.
It is now important that IESM Gov Body members at Delhi must find out about the progress on issue of Govt letters in question either from MOD or Law ministry etc. I am sending Form No 10E of Income Tax Act: Click here for submission as and when arrears are credited. Please examine this in detail and submit when you get arrears.
Regards,
Gp Capt Suhas Phatak(retd)

From: Suhas Phatak
Sent: 09 October 2012 18:20
To: cda-albd@nic.in
Cc: CGDA New Delhi-10
Subject: Govt letter dated 24 Sep 12
Dear Sir,
I have attached govt letter dated 24 Sep 12 which is now revising pension of Majors and equivalent ranks from IAF and Indian Navy authorizing them minimum guaranteed pension of Rs 25,700.00 wef 01 Jan 2006 in Pay Band -4. I was told by officers at CDA (O) Pune that your office will take suo moto action on this letter and issue Corr PPO in respect of all officers affected thus. This letter has not reached office of CAD(O) Pune as yet.
You are requested to confirm this and time frame for completion of this task. Second Addressee:- You are requested to clarify whether all those officers who have completed 15 years before 31 Dec 2005 in absorbed PSU/ Govt Dept / Ministry and who had opted for 100% commutation while joining such organization , will now be paid pension as per VIth Pay Commission at par with other officers of same rank and QS. This question has assumed importance with this letter and also decision of the Govt to enhance officers pension as per GOM's recommendations.

From: IESM Suhas Phatak
Sent: 09 October 2012 21:18
To: IESM
Cc: GB IESM
Subject: Points for GB Meeting on 15 Oct 2012
Dear all,
I may add some points.
A) check from min of Defence or min of Law about issue of all letters after PIB announcement.
B) letter to CGDA asking him not to pass the responsibility of payment of Arrears to Banks(PDA).
C) Letter to PCDA to prioritize issue of PPOs for Pre 2006 retirees in the order suggested earlier in one my e mails.
D) All CDAs must carry out special review of all F and F/BC PPOs for correctness of payment to widows.
E) Consult experts and take up with CBDT or Min of Fin for exemption of income tax while paying arrears of Rank Pay. Govt has shifted it's responsibility of paying interest from 01 Jan 86 to 01 Jan 2006, ie 20 years.
Regards,
Gp Capt Suhas Phatak(retd)
Comment: Further delay in Payment of Arrears should entail payment of arrears with interest from 1986 and not 2006. We need to approach the court again for extended delays.

Rank Pay: CDA (O) Pune News Flash

Ref: CDA(O) Pune: News Flash

Supreme Court Verdict regarding Rank Pay and related matters and Undertaking (25/09/2012)
CDA (O) Pune Instructions and Undertaking- Click here

All reitred/ released Army officers who were in service in the rank of Capt to Brig as on 01/01/86, are requested to furnish their details in the appended format at the earliest to PCDA(O), Pune so that arrears on account of pay revision with effect from 01/01/86 in view of the order of Hon'ble Supreme Court may be credited in the bank account". (28/09/2012)
Click here for the Appended Format

Rank Pay: CDA Pune letter to all concerned Officers

Arrears of 4th CPC wef 1/1/1986: Rank Pay Supreme Court Ruling

click on image for clarity
CDA Original Letter- Click here
1.This is for information and action by all Serving and Pensioners (of any kind) Armed Forces officers who were in service on 1/1/1986.
2. The time bound SC judgement for payment of dues to affected officers is required to be implemented by MoD, GoI and as usual, there is utter confusion in the implementing agencies as to the modelities and methodologies to be adopted. As anticipated, the basic action first will lie with CDA(o) and equivalent paymasters in Navy and AF for calculating and preparing fresh LPCs. They will have to credit dues of the retired offrs pertaining to "while in service period" into pension accounts after DEDUCTING LEVY BY Chidambaram and party (30% ?) and intimate PCDA (P) Allahabad for post retirement calculations?
3. I am placing the pdf file as above which is a scanned copy of a CDA(o) Pune letter. 4. The veterans at Pune who have visited Pune office have confirmed the chaos prevailing in AOs. The communication is a confirmation of the same. 5. It is adviseable that all affected veterans must dig into their regulation pattern BLACK STEEL TRUNKS and retrieve as many PERSONAL ACCOUNTS files as they can especially those labelled by their earstwhile accounts and PRI clerks as " Statement of Account" and "Pay and Allownces" files. 6. The Navy and Air Force collegues will be better placed then Army veterans since their PAY MASTERS are better organised. As you can see, the CDA Pune has already shifted the onus on the officers to proove and provide evidence for their dues. Anyhow wish you all a happy hunting into your archived files. please do keep an Avil tablet and bronch dialaters near by if you are allergic to dust and mouldy decaying files lying in your boxes. I tried to retrieve and had to abandon due to a severe bout of sneezing.
Brig (Dr) C P Joshi

Is PAN necessary for senior citizens without taxable income?

Tax Forum: Questions & Answers
PAN: ordeal for taxpayers
QUESTION: I am writing this provoked by your answer titled “Is PAN necessary for senior citizens without taxable income?” in The Hindu, Kochi Edition dated September 27, 2010.

I shall elaborate with a live example. My mother, a widow, aged 82, is drawing a family pension averaging Rs.85,000 annually. Recently, due to pay revision based on one-rank-one-pension as per the rules of the Kerala State, she received arrears of pension in one lump sum in March 2010 covering past four years.

On availing benefit of spreadover under Sec. 89, her total income for the years did not exceed the income tax exemption limit. Since she did not have a PAN (Permanent Account Number) number, State Bank of India, through which her pension is being disbursed, promptly deducted income tax during the last week of March 2010. She had no time either for applying for PAN nor did she have any intimation to the effect that TDS was being deducted. By the time she obtained her PAN number, deduction was already made and the TAN return was submitted by the bank without inserting PAN. When she went to submit her income tax return before July 31, the income tax authorities declined to accept the return for want of PAN. Now after obtaining PAN, the return has been accepted. Since the bank had already furnished its return without the PAN number, in all probability, the refund claim will not get any matching entry with the income tax authorities. What will be the plight of these elderly citizens, who for no fault of theirs, are penalised due purely to the proverbial red tapism and ways of bureaucracy. There will be scores of such people whose little income like interest on deposits and their hard earned pension, have been subjected to such TDS without giving them sufficient time to get PAN number, which is practically of no utility for them other than avoiding TDS.

ANSWER: The ordeal of taxpayers relating to the requirement of PAN in the above letter is aired by the reader, Gerard K. John, retired Assistant General Manager of State Bank of India, Kochi, in respect of his mother's case.

The difficulties as stated above cannot possibly be avoided for one reason or the other, but the situation can be remedied by expediting refund by setting right AS 22 at the earliest opportunity on the basis of PAN details subsequently received.
S. RAJARATNAM
PAN: ordeal for taxpayers

"Pay arrears before Diwali", Antony’s gift to the Armed Forces

The Defence Minister, Shri A K Antony lighting the lamp to inaugurate the Defence Accounts Day 2009 function, in New Delhi on October 01, 2009. The Controller General of Defence Accounts, Smt Bulbul Ghosh and the Secretary (Defence Finance), Smt Indu Liberhan are also seen. Photo no CNR- 27862
Thursday, October 01, 2009
18:47 IST
The Defence Minister Shri AK Antony has stressed that all men in the Armed Forces must get all their pay arrears relating to the Sixth Central Pay Commission well in time before Diwali. Addressing the Defence Accounts Day function here today, Shri Antony commended the officials of the Controller General of Defence Accounts for adopting computerisation and speeding-up the salary computation systems.

“One of the major challenges before you all is to render prompt, efficient and hassle free pensionary services to nearly 2 million Ex-servicemen and other retired Defence Personnel”, Shri Antony said. The Defence Minister called upon the Defence Accounts officials to implement optimally the austerity measures announced recently by the Government. “The Prime Minister has underlined the importance of service delivery mechanisms”, he added. Samir/DM/PK/RAJ
“Pay arrears before Diwali”, Antony’s gift to the Armed Forces

More MoD Press Releases

Lieutenant General PC Bhardwaj, took over as Vice Army Chief today at South Block, New Delhi.

Air Marshal LK Malhotra, today took over as the Senior Air Staff Officer (SASO) at HQ Eastern Air Command, Shillong.

Air Marshal Paramjit Singh Bhangu, today took over as the new Air Officer Commanding-in-Chief (AOC-in-C), South Western Air Command (SWAC) at Gandhinagar, today.

IESM: Stupendous Service rendered by Pension Cell

Date: Thursday, 24 September, 2009, 5:14 PM
Dear Adm Barin,
This is real 'sharp' and smart follow up, indeed. I am most impressed and grateful. Have seen Gp Capt Phatak's outstanding contributions earlier also on the IESM blog. He is ever so positive, prompt and dedicated. My compliments and grateful thanks to him also.
We shall fall back on his support and expertise, as advised/ required. Having invoked your intervention, Barin, I was confident that we will get somewhere.
Thanks again.
Warm regards
Gen Yogi Sharma
Lt Gen YN Sharma, Former Army Commander

Date: Thursday, 24 September, 2009, 6:07 PM
Dear All,
I visited my bank located at Shankarshet Road, Pune on invitation by the Branch Manager to check whether the arrears chart received from HO of Bank of Maharashtra is correct. It was to my surprise (horror) that I found that in cases of 7 defence pensioners at my branch, BOM HO has once again made a mistake by authorising 60% arrears on the basis of GOI letter dated 1 Sep 08 which was issued for civilian pensioners and not for Armed Forces. Earlier BOM had made similar mistake while paying initial instalment of arrears and I had promptly brought this to their notice. This is obviously universal mistake committed in all cases of Armed Forces pensioners getting pension through BOM in a typical EDP environment. I am visiting HO of BOM tomorrow to get this rectified immediately. In the meantime I have asked my bank to credit whatever is authorised as interim payment.
This is to be published widely because many Officers/widows/PBORs will be affected at the hands of BOM.
Gp Capt SS Phatak(retd)
(Keep the up the good work Gp Capt Pathak of IESM Pension Cell. We all are proud of you - Chander Kamboj)

Date: Tuesday, 22 September, 2009, 9:44 PM
Dear Sir,
I visited Central Pension Processing Cell(CPPC) of SBI this morning, located in Tower2, 6th Floor at CBD Belapur Rly station complex, dealing with the cases from Maharashtra and GOA. It is headed by Mrs Tanuja Indi as Chief Manager and assisted by AGM Mr Bhosale and other staff of 25 officers and junior staff. The procedure followed by CPPC is as follows:-

Mail is received by the dak clerk

It is divided in two lots (a)for unactioned PPOs, (b)Corr PPOs.

All letters then are handed over to 6 officers designated for each type depending on work load.

Each junior officer scrutinises each letter and then internal payment proforma is raised calculating fixation of pension and arrears thereon upto 31 Aug 08.

Once authorised by respective six officers, data is fed to computer (core banking) and amount credited.

Post 01 Sep 08 arrears are then calculated automatically which amounts to release of 60% authorised now.

While talking to Mrs Indi she insisted that she acts upon any GOI/PCDA letters if received from her HO and not from other agencies like ours. While talking to few officers I found that they are not aware of the concept of pro- rata pension when quilifying service is less than 33 years. The confusion about TS and S still remains in respect of Lt Cols and equivalent ranks. PPOs issued by DCDA (AF) are defective to that extent.

Following basic documents are a must from pension coming through his pension paying branch(PDA):-

Copy of PPO fixing pension as on 1 Jan 1996

Proof of qualifying service- ie date of commision and date of retirement

proof of age for additional pension,if applicable

Pension account no

Branch code and address.

If everything is in order credit is given instantaneously by feeding relevant data and cross checked for correctness. I had carried about 12 cases and except for one all other cases credit was given immediately. In short, attested documentary evidence for every claim is very essential. I returned this evening fully satisfied and conveyed to each one of them their respective arrears figures.
regards,
Gp Capt SS Phatak (Retd), Pension Cell IESM

SCPC: Payment of Arrears- 2nd Installment

Good News For all. Ministry of Finance today issued office memorandum no F.No.l/l/2008-IC dated 25.08.2009 wide which it has been notified that second installment of 60% arrears of sixth pay commission be paid to Govt employees immediately. Further it is notified that in case of entrants after 01.01.2004 in Govt, arrears may be released only after individual application forms for registration to the New Pension Scheme have been obtained by the DDO/PAO from the concerned Government servant.

Payment of Second installment of arrears on account of implementation of Sixth Central Pay Commission's recommendation(Dated 25th August 2009)- Click me

Implementation of New Pension Scheme-Pre-condition for release of 2nd installment of arrears of 6th CPC recommendations(Dated 19th August, 2009)- click me

SCPC: Pension Arrears Delayed By Banks

Dear sir,
I share the views of your readers and your concern regarding the delay caused by all Public Sector banks in disbursing the Pension arrears. While the individual pensioner's loss may not be considerable due to this delay, Banks/ Govt stand to benefit a lot by delaying this payment.
A small calculation
Let's assume SBI, Mumbai region has about 10000 Lt col Pensioners with an average arrears due as Rs 1 Lac. That is a conservative assumption, i guess. By delaying this payment even for a month, there is Rs 10000 x 1 lac= Rs 100 crores in the kitty which @ a nominal 8% interest fetches Rs 66 Lac per month. If we include arrears due to PBOR and other officers ranks which remain unpaid and consider it at all India Level, the amount gained by the banks by this unethical practice of delaying payment shall be phenomenal. No wonder the banks don't respond and with the kind of governance we have, the pensioners woes are only multiplying.
The solution for this lies probably in getting a firm directions issued to all the banks that should there be a delay in credit of arrears beyond a reasonable period (say 1 month from the date of promulgation of govt orders), the banks should pay a penal interest of say 12% on the uncredited arrears for the period of delay. This will make the banks scramble for fast clearance and credit of dues to Pensioner's accounts, and the pensioners can relax knowing that should there be a delay at all in getting their dues, there is a decent interest coming alongwith it. Of course, we do have some thick skinned banks who will still not respond, but at least the pensioners interests are protected through courts.
This suggestion may be considered for what it is worth.
Regards,
Col Rajaraman (Retd)
Blog link to main post: click me

SCPC: Pension Arrears- Delay caused by all the Public Sector Banks

29 Jun 09.
Dear Friends,
I have been receiving very large number of similar complaints from officers. I met a few PBOR in last one month, who had the same complaint. Collecting data of PBOR by "Report My Signal" (RMS) is very difficult, because they are not available directly on email, we can get it through the Ex PBOR organisations."Sample Data" of officers can be directly connected by RMS. Data so collected can be sent to Ex Servicemen Department of MoD. We can list say about 200 or more names of ESM with their bank details and PAOR details, which will cover probably names of all banks and PAOR, who are authorised to disburse pension.

We should also collect data of PBOR through Col Bhardwaj and others who have ground contact with PBOR. If approved by the Steering Committee, Admiral Ghose or Gen Surjit or both be requested to look into the problem.

For collection of sample data RMS is at your service. Gen Renjen may kindly initiate an email as to what data is required. That email will be sent to all members of RMS email service and will also be placed on the net by all the websites, including RMS website and IESM website.

I request early action on this issue as I find much unrest among the ESM on this issues. Some of the emails have even stated - " ... please help us in getting what has already been sanctioned by the Government ..... "
Regards to all,
Chander Kamboj

Sample Appeals
Dear all,
I have tried all but to no avail. I have met the Branch Manager on innumerable occasions. I have sent online complaints to SBI and to PCDA all to no avail. The problem with SBI is that they have centralised the issue of pension to one branch in the state HQ's and they are overloaded and do not respond to telephones. Canara Bank dealing officers in Bangalore blame it on their computer section to who we have no access.
My father in law aged 89 and mother aged 84 are fed up with making their rounds to the bank and have given up trying to get the additional pension for old age.
In my case (post 2006) PCDA has finally relented and issued the corrigendum to PPO, and my bank ICICI has obliged me by overpaying me by giving me the new pension but deducting the old commuted amount and not the new 50% thereby overpaying to the tune of 1.5 lakhs for the moment!!!
Regards,
Col Deepak Gopinath

Dear Sir
I am afraid you will have to take up with the Branch manager and follow up with their headquarters. This is what i said after the Kolhapur visit. The banks are taking us for a ride and centrally we need to take this up on a war footing. Just imagine the money the banks make with everyday delay.
Regards,
R W Pathak

Dear Sirs,
Canara Bank Bangalore and State Bank of India Coimbatore have not paid the PB-4 scales with pay for Jun. Nor have they paid the additional amount for aged over 80 years.
Regards,
Col Deepak Gopinath

Date: Monday, 29 June, 2009, 1:58 PM
This is one amongst at least over 50 similar complaints from ESM that I have read over time. Only officers!!!
It is a very serious problem and needs our immediate attention. The decision of the GoI not to issue fresh PPOs and make do with instructions alone to the Secy Banking etc, has caused an enormous confusion amongst the PDAs (banks) in pension disbursal. They are genuinely flummoxed. Too many different instructions, lack of understanding of the system and pressure of work on the banks!
An equally disturbing complaint has been of the aged veterans of 80 and more. They are not getting enhanced pensions as their ages are not reflected on their PPOs. Most would die without getting any benefit.
Problems of PBOR & widows are far worse.
A letter from Gen Kadyan in the least to RM, MoS (Defence), Secy ESW would be in order.
Best regards,
Maj Gen (Retd) PK Renjen, AVSM

My experience with IOB Chennai
Indian Overseas Bank is a shade ahead of other Public Sector Banks for crediting Sixth Central Pay Commission Arrears. Though some coaxing and effort was involved, I have been able to get all my arrears including Lt Col PB4 arrears calculated by IOB Head Office and then credited by the Branch Office. The software is excellent but basic inputs need to be correctly fed in. This is where personal liaison is required as the clerical staff dealing with Defence Pensions are clueless about age, and whether Selection Grade or Time Scale. One needs to hand over photo copy proof from our own records. Otherwise the staff do not take any initiative if they do not have the basic input data or if some doubts arise they keep the the whole issue pending. This is the bane of bureaucracy!
Lt Col James Kanagaraj (Retd)

Sixth Pay Commission Pension and Arrears

I have been receiving very large number of requests for many types of problems related to 6 CPC Report- pension of widows, premature retirement cases, disability cases and many other similar problems.
Seeing the vastness of the problem I tried to find a solution which could in 'one go' solve most of these problems.
Luckily I did find such a solution, which can apply universally to many type of questions (but not all).
You can now very easily help all your friends in finding answers to the questions related to 6 CPC Report.

The interesting thing is that the formulae worked out apply equally to all universally- whether prematurely retired person or with full pension, a or widow/ widower of service person, from officer grade, PBOR, from any Central Government Service, any grade, whether the person knows his/ her basic pension or not. All that a person needs to know, what is his/ her full pension as in November 2007.

Before I give your those universal formulae, I wish to tell you something more. While the figures given vide my previous emails to you for the new pension as on 1-1-2006 and as on date are correct, the arrears calculated by me and intimated to you, need some correction. The arrears would be somewhat less then what was worked out by me earlier. In my calculations I had taken the figures of the Old Pension little less than the actual figures what we have been receiving. Therefore, obviously the arrears figures are more than the actual. Fresh table of arrears are given below. ALSO, please note that the formulae and tables given below are applicable only to those persons who retired before 1-1-2006.

The Universal Formulae to Calculate 6 CPC Related Pension and Arrears

As mentioned earlier, for answering questions of your friends on the above subject all you need to know from him/ her is the full pension of as received by the person in November 2007.
Full pension here means- The pension received in bank + the commuted amount if any.
Let us abbreviate Full Pension of November 2007 as FPN07.
Now the universal formulae to calculate the various amounts are as under:

1. New Pension as on 1-1-2006 FPN07 x 1.1737

2. New Pension as on 1-1-2008 FPN07 x 1.385

3. Arrears of 2006 FPN07 x 3.600

4. Arrears of 2007 FPN07 x 3.8892

5. Arrears per month in 2008 till implementation 6 CPC or till next DA added, which ever is earlier FPN07 x 0.3424

6. Arrears from Jan to Mar 2008 FPN07 x 1.0273

7. Total Arrears from Jan 2006 to Mar 2008 FPN07 x 8.5168

Note: FPN07= Full Pension in November 2007= Pension received in bank plus commuted amount if any.

The table given below applies to only those who earned full pension of the rank, and those who retired before 1-1-2006.

I once again reiterate that the pension of persons who retired before 1-1-2006 has been de- linked from the currently serving personnel. Even if the pay and allowances of Defence Officers and PBOR given in 6 CPC get revised, the pension of those who retired before 1-1-2006 will not be affected. So stop thinking of MSP etc.

Please do give wide publicity to the Universal Formulae given above.
If you are not sure of those formulae, try them out on your own pension details and do backward and forward calculations to verify the formulae. You may find a difference of few rupees here and there, because of the formulae being truncated to just 3 or 4 places of decimal, while actual formulae go upto 8 or 9 places of decimal.

A large number of questions received by me are still pending. I will try my best to find answers to those questions, if feasible.

Please appreciate that all this information I am sending to you is being handled by me single handed and not by a team, as some of you seem to be carrying the impression. So, kindly bear with me the delay in answering your questions.

With Compliments from "Report My Signal".

Brig CS Kamboj, VSM (Retd)

We are truly indebted to Brig CS Kamboj for giving us a easy to understand universal formulae for calculation of Pension and Pension Arrears.