Rank Pay: Supreme Court Ruling of 3 months is too short a time for babus to deliver

Important Draft orders: Rank Pay Arrears Fourth pay Commission
Dear Sir,
It is brought to your kind notice that a draft letter on the likely notification to be issued in the IV CPC Rank pay case covering all aspects and the re- fixation tables from IV CPC to 6CPC in case of each rank from Capt to Brig is in circulation on email. The authenticity of this letter is questionable.
Such mails will only add confusion and chaos and put the cart before the horse in the instant case. It may also give food for thought to the sputniks who may not be keen to give us our desired dues.
It is requested that this information be put on "Report my Signals' so that further circulation and speculation stops. Please accord Priority.
Thanking you
With regards
Secy RDOA
Comment:
Some veterans are acting in a very irresponsible manner and spreading rumours regarding Govt letter having been issued regarding the Rank Pay case. There is NO TRUTH in such emails.
The fact is that the draft instruction on Rank Pay case is yet to finalised by the three Services Headquarters. After the draft is finalised, it will be sent to MoD. The MoD will take its own sweet time and do its usual amendments to the draft before it is issued as a letter to the three Services Headquarters. CDA (O) in the meanwhile is assessing the final outgo of funds on account of the Rank Pay Ruling by Supreme Court of 04 Sep 2012. This is an ongoing bureaucratic winding process under the umbrella of the Supreme Court Orders. The 3 month time criteria is no guarantee that our babus will deliver.

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

Rank Pay: Mark of Honour- Maj AK Dhanapalan

ARMY PENSION: (Rank Pay)
A mark of honour By Rekha Dixit
Story Dated: Tuesday, September 18, 2012 11:43 hrs IST
Defence officers win an epic battle over rank pay

Major A.K. Dhana-palan (retd) at his home in Alappuzha - Photo by Jackson Arattukulam
It was 1987. General K. Sundarji was in Pune, briefing senior Southern Command officers on the Fourth Pay Commission, when a lowly captain asked an uncomfortable question. He wanted to know why his basic had actually gone down, after the rank pay was introduced. There was a buzz in the room. The chief told the captain to meet him separately, he would explain the issue.
“I didn't seek private audience later. I was too junior,” chuckles Major A.K. Dhanapalan (retd). “I actually had no business rubbing shoulders with senior officers that day, except that I was operating the computer for the conference. But I hadn't got it wrong. I was right, bang on.” The Engineers officer chanced upon the anomaly when he was asked to work on preparing the pay fixation of defence civilian setups, like Military Engineering Service, on the Fourth Pay Commission template.
“That year, the commission introduced a rank pay for defence officers between the ranks of captain to brigadier, which was Rs 200 at captain rank. But what it actually did was deduct the same amount from the basic pay and give it as rank pay. Since all emoluments are linked to basic, not only was there no net gain, we were actually losing out,” Dhanapalan explains. He redid his calculations several times till he was convinced the government had tricked the defence officers.
“I wanted to take the matter to court, but I was in Pune and the High Court in Mumbai. Then, I got posted to Udhampur, and the High Court was in Jammu. Next, I was transferred to Port Blair....” Dhanapalan finally got his opportunity on being posted to Kochi in 1995. His office was close to the Kerala High Court; it was time to make that move.
His colleagues were shocked at his daring. His advocate, too, was not convinced. The court, however, understood and ruled that the Union of India should pay the rank pay arrears and an interest of 6 per cent. The matter went on appeal and a division bench of the court upheld the judgment. The government took the matter to the Supreme Court but had to eat humble pie when, in 2006, the court rejected its plea.
He did not stop there. The arrears, while welcome, were not his goal. His aim was to alert defence personnel not to be lulled into complacency by the “you are being looked after” attitude of the establishment. So he photocopied the verdict and posted them to officers and clubs he had addresses of. “That itself cost me a bomb,” he recalls. One such letter reached Colonel B.K. Sharma.

Sharma was the first officer to do motorcycle daredevilry in the Republic Day parade in 1978. Post-retirement, he realised it was daredevilry time again, this time to take on the government for which he had once fought. He circulated copies of the judgment in canteens and clubs. Knowing there was strength in numbers, some retired officers got together and registered Retired Defence Officers' Association (RDOA) and filed a writ petition in the Supreme Court in 2007. Meanwhile, across India, officers were litigating for the same demand, and all the cases were finally clubbed together before a division bench of Justices Markandey Katju and R.M. Lodha.
“We had not bargained for the level of resistance from the government. Instead of conceding gracefully, they tried repeatedly to stonewall us,” says Sharma. When in 2010, the bench ruled that it agreed with the reasoning of the Kerala High Court that rank pay be paid retrospectively, with 6 per cent interest, the government filed a transfer petition before a bench of three judges. The three service chiefs recommended to the solicitor general to withdraw the litigation and honour the judgment. The defence ministry, however, pressured the chiefs to withdraw their written communique. In a rare show of defiance, the chiefs stood their ground. The RDOA had to file an RTI to confirm the service chiefs' stance on the matter.
“They used every tactic, from pleading inability to meet the financial burden to the solicitor general not appearing in court, due to which proceedings would get postponed,” recalls Sharma. “This summer, when the court fixed the last hearing day on September 4, we actually wrote to the law ministry that so many officers had already died in the last 26 years. Delaying justice was not fair, so either they withdraw the special leave petition or ensure the solicitor general be present in court on September 4, 2012.”
The final hearing was a marathon session. The government made a last ditch plea that interest be paid only to litigants. The court refused. However, it reduced the date of calculation of interest from 1986 to 2006 at 6 per cent, ordering that it be paid within 12 weeks. “This is a big victory,” says RDOA advocate Aishwarya Bhati. “It gives a shot in the arm to all other cases that the defence personnel have been fighting.”
According to RDOA, over 45,000 officers, retired and serving, will benefit, and it will also impact pensions and widow pensions. The amounts, Sharma calculates, will range from around 06 to 01 lakh, depending on length of service and rank held. The government claims it is a burden of 01,600 crore.
“It isn't about money. We fought on principle and we have won our prestige,” says Sharma, but admits being flooded with congratulatory calls, all of them with the suffix, “Mujhe kitna milega? (How much will I get?)”
How did only Dhanapalan get wise to the anomaly? “Faujis are great at protocol, discipline and a hundred other virtues. Studying payslips isn't among those, unfortunately. They usually don't question what goes to the bank, or do the sums themselves,” says Dhanapalan.
There are many other issues with defence pay and entitlements, but defence personnel say the government is changing tactics. Instead of risking its decisions being challenged in court, it now procrastinates. The Sixth Pay Commission anomalies are an example. Last heard, a four-member committee headed by the cabinet secretary was appointed to look into the issue. Then Navy chief Nirmal Verma had expressed anguish at no defence representative being on the committee.
Meanwhile, the man who ignited the spark sits back with a smile. “The government paid arrears only till 1996. I decided not to contest it, as by then, RDOA took up the fight.” There are fears the government might give arrears only till 1996 to others, too. “My mission is accomplished. No longer will faujis take at face value what is given to them. They have learnt to read between lines, ask, and fight for their dues,” says Dhanapalan, getting ready to go to the temple.
Defence officers win an epic battle over rank pay
PVSM?
Doesn’t the defence fraternity of both the retired and the serving strongly feel that Major Dhanapalan and Col BK Sharma should be honoured with PVSM? What Major Dhanapalan has done for the rights of the defence personnel, no one else even of the rank of General has done. Both of them really performed Param Vashisht Seva i.e. the service of the highest order that too after his retirement.

Rank Pay: Landmark Judgement exposes MOD's immodesty

Unhelpful attitude against military
Tuesday, September 18, 2012, Chandigarh, India
Apex court comes to the aid of defence personnel
by Lt-Gen Harwant Singh (retd)
ON September 4, 2012 the Supreme Court gave a landmark judgment, which goes against the Ministry of Defence (MoD). The 4th Central Pay Commission (CPC) gave defence services’ officers up to the rank of brigadier rank pay in addition to the basic pay. The MoD, working in consultation with the CDA (O) and in a most arbitrary manner and without any authority, deducted the rank pay from the emoluments of thousands of the effected officers. That was in the year 1986. From then onwards all efforts to get the MoD to undo this gross injustice have been opposed by it. In this machination and subsequent cussedness have been involved the top bureaucrats in the MoD and successive Defence Ministers. From 1986 till now, a large number of defence services’ officers have died, some during the Kargil war, without getting their rightful dues.
A gutsy Major from the South fought it out in the Kerala High Court. Not willing to relent on its mischief, the MoD went in for a review petition, which too was rejected by the Supreme Court. It took the officer over a decade to get this injustice undone. This was followed by innumerable appeals in most high courts of the country by the officers who had been denied their rank pay. The Supreme Court in its wisdom ordered that all these be clubbed and brought before it. A spirited group called the Retired Defence Officers Association (RODA) obtained a favourable order from the Supreme Court on March 8, 2010. Thereafter, the MoD sought recall of the Supreme Court order. Then on subsequent 10 occasions the Solicitor-General of India sought adjournments, stretching the case to September 2012.
The Solicitor-General told the highest court of the land that the defence services headquarters too were opposed to giving back the rank pay to these officers. However, the defence headquarters gave in writing to the Attorney-General that they did not oppose the grant of rank pay and, on the other hand, fully supported the case of these officers. This letter from the defence headquarters falsified the position of the Solicitor-General and, in fact, he stands exposed for an act of perjury. Consequently, the MoD, throwing all norms of fair play to the winds and in a brazen manner, tried to “arm-twist” the defence services headquarters in asking it to withdraw this letter to the Solicitor-General, which the defence services headquaters declined to do.
The Solicitor-General, as a last ditch attempt, pleaded that the restoration of rank pay be ordered to only those officers whose cases are before the court. Ignoring this mischievous plea, the Supreme Court, on September 4, 2012, ordered that all the effected officers (their number is in thousands) should be paid their dues starting from 1986 to now and taking a lenient view of the MoD’s plea of financial constraints made by the Solicitor-General, reduced the period of interest, which starts from 2006 instead of 1986, and at 6 per cent interest.
The Fifth CPC took away the “running pay band,” which, on the hints of resignation by the three service chiefs, was granted by the Fourth CPC and was introduced to somewhat compensate for extremely limited promotions. In the case of the Sixth CPC, there are 39 anomalies that are still to be resolved. The grant of bounty of Non-Functional Advancement to all Central services officers by the Sixth CPC and denying the same to the defence services officers is not only scandalous but also blatant display of bias against them.
Instead of extending a supporting hand to the defence services, the MoD has in almost every case related to pay and allowances and the status of defence personnel been taking an adversial stance. In the case of the Second Central Pay Commission, (CPC), the MoD fielded the case of pay and allowances of defence personnel “as given”. In the case of the Third CPC, the defence services were not permitted to present their case before the Pay Commission on the specious grounds that the same will adversely effect their discipline! While the absurdity of this stance by the MoD is detestable, the fact that this arrangement was accepted by the services chiefs is equally distressing. In the subsequent CPCs, the defence services could get no support from the MoD and on the other hand its despicable act of illegally depriving the officers of their rank pay in the case of the fourth CPC needs no further elaboration.
The MoD’s stance has always been unhelpful to the military. Such a sustained attitude of the MoD has created deep fissures in its relationship with the military. There is palpable mistrust of the ministry among the armed forces. The adverse fallout of this relationship, at one level, relates to national security, and at another it impacts on the military’s commitment and motivation. The Ministry of Home Affairs fights tooth and nail to promote the interests of, say, the Central Police Organizations ( CPOs-inappropriately called para-military). As opposed to this, the MoD operates in a motivated manner against those of the military. This adversial stance of the MoD has become so visible in that the CPOs, in pay and allowances, are far better placed than the military. These policemen, unlike soldiers who retire at 35 years of age, retire at the age of 60 and further end up getting much higher pension, etc.
This attitude of the MoD towards the defence services has created a climate of mistrust, animosity and disharmony between these two major components of the government. This hiatus has had adverse effect on the pace of modernisation of the military as well.
The Supreme Court judgment of September 4, ordering the government to pay up the amount due to the affected officers starting with 1986, needs to be taken to its logical end by bringing to account all those officers who were responsible for this mischief, including those who have since retired, and ones who have continued to follow the same line. It is time some accountability was jacked into the government functioning, and those who function in an arbitrary and irresponsible manner are hauled over the coals
. The writer is a retired Deputy Chief of Army Staff.
Unhelpful attitude against military

Pay and Allowances: Serving Officers

FAQ's for Serving Officers
Replies to FAQs have been provided with reference to the extant orders on the subject and practice being followed regarding the same. Difference in interpretation of rules, if any, may be referred to the Army authorities through staff channels. In case you notice any difference between these FAQs and the PCDA (O) handbook, please write back to PCDA (o).
FAQ's for Serving Officers: Click here
Click here for ECHS FAQ's
ECHS compendium of Government Letters

Supreme Court Order on Rank Pay

Dear Veterans,
The gist of the Supreme Court Order issued on 04 Sep 12, regarding Rank Pay Case of Retired Defence Officers is reproduced below.
Those of you are keen to read the whole order may visit the URL Click here
Thank you
Chander Kamboj

O R D E R
I. A. No. 9 in T.P. (C) No. 56 of 2007:
We have heard Mr. R.F. Nariman, learned Solicitor General of India and Mr. Mahabir Singh, learned senior counsel for the respondents.
2. On thoughtful consideration of the entire matter, we are satisfied that the order dated March 8, 2010 does not require any modification or variation save and except the interest part.
3. As regards interest, on totality of the circumstances including the circumstance that Special Leave Petition arising from the judgment dated July 4, 2003 in the matter of Major A.K. Dhanapalan was dismissed by this Court in August, 2005 and the Kerala High Court had not ordered payment of interest on the arrears of pay, we direct that the interest shall be paid by the petitioners to the respondent @ 6% p.a. from January 1, 2006 instead of January 1, 1986. It is clarified that this order shall govern all similarly situated officers who have not approached the court and also those who have filed Writ Petitions which are pending before various High Courts/Armed Forces Tribunal.
4. We record and accept the statement of the learned Solicitor General that arrears of pay with interest, as directed above, shall be paid to the concerned officers expeditiously and positively within twelve week from today.
5. I.A. No. 9 of 2010 stands disposed of accordingly.
W.P. (C) Nos. 268/2010, 192/2012, and I.A. No. 1 of 2011 in W.P. (C) 34/2009 and T.C. (C) Nos. 11/2010, 14-19/2010, 31/2010, 32/2010, 33/2010 and 35/2010:
The above matters and pending I.As. therein, if any, stand disposed of in terms of the above order passed in I.A. No. 9 of 2010 in T.P. (C) No. 56 of 2007.

.....................J.
(R.M. LODHA)

.....................J
(T.S. THAKUR)

.....................J.
(ANIL R. DAVE)
Supreme Court Order on Rank Pay

RBI cracks the whip on erring banks who delay Pension Payments

My Dear Pensioners Friends,
Appended below is a letter written by RBI to all banks on Payment of Pension, use this if required, since certralised pension payment is normally delayed. MM

RBI ON PENSION PAYMENT- Interesting letter from RBI
The bank is paid Rs 60.00 per month to credit your pension every month- thus 60x12 = Rs 720.00 per year is the earning by the bank to pay you pension. I suppose arrears crediting must be over and above this. So no bank is doing you a favour. The circular below says they should pay you 2% interest if there is delay. Claim it !!
RBI clamps down on banks delaying pension payout
April 22, 2010 08:07 PM | Sucheta Dalal with Sanket Dhanorkar

Central bank wakes up to inordinate delays in payments faced by government pensioners; reprimands bankers and directs them to make good the dues immediately, along with penal interest

In what could be a major victory for government pensioners awaiting pension payments, the country’s central bank, the Reserve Bank of India (RBI), has taken bankers to task for ‘inordinate delays’ in disbursing revised pension and arrears.

Taking a serious view of the matter, the RBI has issued a circular (dated 9 April 2010) to various banks with an exasperated tone, directing the concerned banks to ensure that all entitled pensioners are paid their revised pension or arrears within 15 days from receipt of the circular. Additionally, it has also advised the banks to make a penal interest payment of 2% for any delay beyond the due date.

The RBI was forced to take this tough stand after receiving several complaints from pensioners, especially State government pensioners, alleging inordinate delay in disbursing the revised pension and arrears. Under the 6th Pay Commission recommendations, RBI had advised pension-paying banks to put in place a suitable mechanism so that pensioners could get the benefits announced by the government in the succeeding month’s pension payment itself. The controlling offices or head offices of agency banks were also advised to closely monitor and supervise the timely and accurate disbursement of pension to the pensioners.

An RBI review of the pension payment systems in various agency banks revealed the true story behind the picture. The circular highlights RBI’s findings as follows:
“Even though Pension Relief Orders were issued by the respective State Governments, there is inordinate delay ranging from one month to 18 months at the Agency Bank level in disbursing the revised pension as also the pension arrears. The delay was more pronounced in the case of those State Govt pensioners residing outside their States drawing pension from Agency Bank branches. To be specific, non-State resident pensioners have not received adequate attention and timely receipt of the revised pension/arrears for months together.”

The circular goes on to highlight the discrepancies of banks in administering the pension payouts. “Our experience was that customer service on pension payment matters was not effective at the branch level where customers normally interface with the front office,” said the central bank’s communiqué.

The RBI also makes note of the lack of coordination between the branches and the Central Pension Processing Centres, as also the absence of transparency in the calculation of the revised pension or arrears.

In a tone that is vividly indignant, the RBI questions the concerned banks’ indiscretions. “Pension payment is an agency function entrusted to you for a commission @ Rs60 per transaction and an amount of Rs487 crore has been paid to Agency Banks on account of pension disbursements alone during the year 2008-09. Although this is a significant income generating activity, it appears that it is still not given the due importance that it deserves.”

In view of the above, the RBI has advised banks to undertake review of the system of attending to customer service and have a pension accounts guide at all branches to assist the pensioners in all their dealings with the bank. Additionally, RBI has demanded that suitable arrangements be made, to place on the bank website details about the pension calculations, and made available to the pensioners at periodic intervals with sufficient advertisements to that effect.

With the RBI finally wisening up to the reality and putting its foot down squarely on the Agency banks, they will have to take a deeper look at their archaic systems and make life easier for pensioners. As the RBI rightly puts it, “Pension is the lifeline of the pensioners and any delay in affording their legitimate dues will rob them of the dignity of life to which they are entitled to”.

Pension Anomaly removed but Lt Col Family Pension remains Jinxed

As per the current stipulation in vogue, the minimum guaranteed pension of personnel of some junior ranks was more than pension of senior ranks with the same length of service. This happened since the admissible weightage of junior ranks at places was more than senior ranks.

The said anomaly has been addressed and the MoD has issued a new letter rectifying the problem. Consequently, fresh amended annexures (i.e, Annexures II, IIA and III) replacing the ones appended with the earlier issued MoD letter dated 11 Nov 2008, have been promulgated for officers as well as JCOs and OR.

The said letter, alongwith another letter on medical boards, may be accessed by clicking here. It may however be noted that the family pension of a Lt Col has been mentioned incorrectly in the fresh letter as Rs 8760 per month in this letter whereas it actually is Rs 15420 (30% of minimum of Pay Band-4 + Grade Pay + Military Service Pay). The MoD has by mistake printed the family pension for the rank of Lt Col as per the old (Pay Band-3) scale.
Posted by Navdeep / Maj Navdeep Singh at 5:08 AM
More pension to juniors than seniors : Anomaly redressed

CDA Hand Book for Officers

Dear Brig,
Please find attached CDA(O)'s Hand Book. I have been thru it and find it relevant to the extent that SAIs post 5th and 6th Pay commission, as also DA rates from post 5th Pay commission till last year have been given. Veterans may find this info handy as and when a favourable decision is available on Rank Pay case. Soft copy of TA/DA rules is available and is not attached as it really has no relevance once one has superannuated
Regards
Vijay Raheja
CDA(O) Hand Book Pay and Allowances

Kerala HC summons Union Defence Secretary for payment of disability Pension

Wed, Jul 7 08:30 PM
Kochi, Jul 7 (PTI) The Kerala High Court today summoned Union Defence Secretary Vijay Singh and other top officers of Defence Accounts to be present in court on July 26 in a contempt of court case. The order in this regard was issued by Justice S Sirijagan on a contempt petition filed by discharged military official P Madhusudanan of Thiruvananthapuram on non-payment of disability pension.

In June 2009, the High Court had directed payment of disability pension to the petitioner within three months. Following non-compliance of the order, Madhusudanan moved the contempt petition.

When the petition came up for hearing today, Justice Sirijagan ordered personal appearance of the Defence Secretary, Director General Controller of Defence Accounts Neetha Kapoor and Colonel J S Jaswal, senior records officer artillery research signal, Nasik.
Kerala HC summons Union Defence Secretary

Pension Slips to Defence Personnel

Is this true?
Relevant portion of RBI circular regarding issue of pension slip by Banks is reproduced below for your information. Please ensure you get these every month. This is separate from Annexure IV.
Para 20: Disbursement of Central Government Pension through Public Sector Banks-Issue of Pension Slips to Defence Pensioners: Master Circular- Disbursement of Pension by Agency Banks(Ref. DGBA.GAD. H-17663/45.05.031/ 2006-07 dated June 12, 2007)

It has been decided in consultation with the Office of Chief Controller of Defence Accounts and the Department of Ex-Servicemen welfare, Ministry of Defence to issue pension slip to Armed Forces Personnel/ Defence Civilian pensioners including family pensioners on par with the existing system as applicable to Central Government Pensioners (Civil). All the agency banks were advised to issue suitable instructions to their pension paying branches.
Deepak Verma, Veteran

Important RBI circulars

Master Circular- Disbursement of Pension by Agency Banks

Collection of account payee cheque – Prohibition on crediting proceeds to third party account

Grievance Redressal Mechanism - Display of Contact Details of Officials

GUARANTEES, CO-ACCEPTANCES & LETTERS OF CREDIT

Reconciliation of transactions at ATMs failure – Time limit

Special Family Pension not paid to widows- examples

Smt Subbulakshmi, M/O (Late) Gnr Krishnan is receiving the arrears calculation sheet for Rs.3,84,000 from Sgt S Kandiah (Retd)
Special Family Pension is sanctioned to a widow only when the death of a soldier is aggravated by military service which is determined by the competent authorities. Therefore, a higher rate of pension is sanctioned to the widow. Normally this aspect in the PPO Number is identified by a Prefix ‘F’, or ‘BC’. The PDAs are not aware of this basic rule as a result, the higher rate of pension payable to the widow is denied forever.

Case study One
Sep No 8799083 Maruthiah Thevar died while on active service on 19.10.1971. His wife Smt Muthammal was sanctioned Special Family Pension wef 20.10.1971 under PPO No.F/5280/1974. She was drawing her family pension from Canara Bank, Veera Keralampudur Branch of Tirunelveli District, Tamil Nadu. There have been 4 pay commissions after 1971. The pension has undergone revision in three pay commissions. There is distinct difference in Ordinary family pension and Spl Family pension. The 5th and the 6th CPCs doubled the minimum ordinary family pension for the Special Family pensioners. Now the question is, did the the increase in pension sanctioned by the successive pay commissions reach the family pensioners? Answer is No.

Case study two
Smt Muthammal, a special family pensioner was eligible for a monthly basic pension of Rs 2550 from 1.1.96 to 31.12.2005 but was paid only Rs 1275 during that period. Similarly from 1.1.2006 she was eligible for Rs 7000 as per 6th CPC, but was paid Rs 3500 only. The actual position from 1971 to 1995 is not traceable. In the meantime she died on 15.5.2009. When the Exwel Trust’s Chief Liaison Officer, Sgt S Kandiah (Retd) visited the Bank for arranging the payment of the Life Time Arrears to her legal heirs, he was surprised to see that the widow has been paid just minimum ordinary family pension from 1971 till date. The status of her special family pension was not at all effected in her monthly pension for the 33 years. None of the Bank’s auditors, Accountant General’s Auditors, the Reserve Bank’s pension auditors did notice this short payment to this widow for the past 33 years. what a pity! The poor widow could not enjoy her legitimate pension for the past 33 years. Now arrears amounting to Rs 4 lacs has to be claimed with lot of legal implications.

Case study three
There is similar case with the Canara Bank, Tenkasi of Tirunelveli District. Ex Gnr No 128413 Krishnan died while in service on 06.2.1979. His mother Smt Subbulakshmi was sanctioned a Special family pension under PPO No.F/2237/80 wef 7.2.79. This poor mother of a soldier is also being paid simply ordinary family pension instead of Special family pension from 1979 onwards. Fortunately, in this case, she is alive. Her another son Ex Hav S Sankaran came to know about the Exwel Trust’s services to the pensioner. He visited the Trust’s office with her mother’s pension papers. The short payment of about Rs.3,84,000 has been worked out and presented to the bank for immediate payment to Smt Subbulakshmi.
Posted by Muthukrishnan

Congratulations
Keep up the excellent work. ESM organisations should emulate extending similar services to NOK, spouses and widows of our veteran brothers who are no more.

SBI launches product for army personnel

Concessional loans, free ATM cards, credit cards
Our Bureau: hindubusinessline
New Delhi, May 31 State Bank of India has launched a new product – ‘Defence Salary Package – Army’ – that offers a bundle of free/concessional banking services to the officers and jawans of the Indian Army.

This product offering, which has already undergone a pilot run in three cantonments, includes concessional loans, free drafts, free cheque books, free fund transfer to the State Bank Group’s network of 15,000 branches besides free ATM cards, the SBI Chairman, Mr O.P. Bhatt, said here on Friday.

“Defence salary package is a gift wrapped with love from SBI employees to the Army,” Mr Bhatt said at the launch function for this new product. The Chief of Army Staff, Gen Deepak Kapoor, was present on the occasion. Mr Bhatt also said that the bank was looking at a new loan product to help jawans purchase two-wheelers by availing themselves of loans at concessional interest rates. SBI would also provide home, auto and personal loans to Army personnel at 25 basis points lower than floor rate. Also on the anvil is a SBI credit card tailor made for the armed forces.

This Defence Salary Package initiative would benefit many jawans and senior personnel of the Indian army who are posted in far-flung areas of the country and could not hitherto get good banking facilities. Once this product is rolled out to the entire army network, SBI will get about 12 lakh customers within its fold.

The Army is also at present undergoing a pilot project with the Controller General of Defence Accounts (CGDA) to convert its current cash system into a monthly salary payment system through bank accounts. The project includes a complete computerisation of salary records which are being maintained manually. Currently, the salary of personnel below officers rank (PBOR) of the army is paid on the “acquittance roll system” by which only their monthly requirement is paid to them in cash and the rest accumulates with the Government, usually until retirement.

SBI launches product for army personnel

SCPC: CDA spins Banks for Pension Payments of ESM and Widows

Non receipt of proper amount of pension is a disturbing matter for the Defence Personnel. But, not so, for the powers that be in the administration! The country first "CEASED TO BE GOVERNED" Now it has "CEASED TO BE ADMINISTERED". The UN- civil Babus have found a new way to taunt the defence personnel. For the first time in Independent India, the CDA has decided NOT TO ISSUE FRESH PPO AS WAS BEING DONE HITHERTO AFTER EVERY PAY REVISION. It has asked Banks to fix the pension and pay off, without causing extra work for them... they are on S N O O Z E. The banks say they do not know how to fix pension. I spoke to Mr Harbans Singh in the Ministry of Defence. The ministry appeared to be whole heartedly enjoying the humiliation of the soldiers. I have been advised to knock at the doors of the disbursing bank. If the branch does not act, I should approach higher bank authorities. The Banks want you to make an application for revision of your pension, giving all service details (forget that these are already held by them!!!) and a copy of earlier PPO. You must state your date of birth, date of joining service, date of retirement and total service rendered. Then your case will be studied by the banks. So, after usage of millions of papers, envelopes and postage payment to the postal department by two million ESM and dependants, you can hope to have your pension revised. GOD HELP THOSE WHO CANNOT WRITE . THEY WILL SUFFER ENDLESSLY.
Gp Capt KP Sharma
20 Mar 2009
An Introduction to One-Rank-One-Pension (OROP) by Maj Gen Surjit Singh

Armed forces still await enhanced pay

New Delhi, March 18
The long wait of the 13 lakh strong armed force for better salary and status continues as no orders have been issued, so far, to implement the decision that was taken on certain issues of the forces.

Four core issues still remain unresolved despite directions of the Prime Ministers Office (PMO) in this regard.

Since the Ministry of Defence (MoD) has not issued directions, the central defence accounts (CDA) cannot implement any hike or change that was cleared by the PMO, resulting no change at the ground level.

The Armed forces had raised four core issue after the Sixth Pay Commission submitted its report.

Prime Minister Manmohan Singh formed a three-member ministerial committee headed by Pranab Mukherjee, which submitted its report in the last week of December. Subsequently, Chief of Staffs Committee Admiral Sureesh Mehta took up the matter.

A Joint Secretary in the Ministry of Defence issued a letter some time in the last week of January, clarifying that Lieutenant Colonels, with a few exceptions of those who are on deputation to public sector units, will be placed under the enhanced pay-band IV structure.

That was the last written word on the subject. In a normal course, instructions are issued and conveyed to the CDA informing it that Lt Cols and their equivalents in the IAF and the Navy, are now placed in pay-band IV and not pay-band III as suggested by the pay commission.
Armed forces still await enhanced pay

IESM: Jaswant takes up case of ex-armymen in RS

Mail Today, Wednesday, February 18, 2009
FEW DAYS after former soldiers, including three- star generals, returned their gallantry medals to President Pratibha Patil to press for a one rank- one pension system, the issue resurfaced in the Rajya Sabha on Tuesday. Speaking on the motion of thanks to the President’s address to Parliament, the leader of Opposition in the House, Jaswant Singh, said the government’s failure to meet the demand went against the izzat (honour) of the ex- servicemen. The BJP leader said it was a “complex” issue but the government should have addressed it.
“It is unfortunate a Lt Colonel retiring today gets a pension equal to a Lt General who retired a few years ago,” he said. Jaswant compared the “shortcoming” with the “equal pension system” applicable to the MPs irrespective of the term during which he was a member. Jaswant also said there was “confusion” galore because the pension system of former soldiers was open to “a variety of interpretations” by the CDA, the pay and pension disbursement authority for the armed forces. He also pointed out the misuse of the uniform by civilians, especially security agencies.
Jaswant takes up case of ex-armymen in RS

Comment: Rampant misuse of non- pattern Uniforms by Security Agencies poses an Internal security threat. Security Agencies employing ESM are exploiting them with shabby and fancy uniforms and dishonouring their status, rank with meagre wages.

SCPC: Payment of Pensions

Dear James,
Officers are being paid pensions thru banks, who are working out the entitlements of arrears etc based on directives from the MOD. A number of banks are invloved taking in to account that veteran officers are living all over India. Different banks are likely to interpret and authorise varied pension entitlements for offcers of same rank or authorise incorrect amounts. WHO IN THE GOVERNMENT IS SUPPOSED TO CHECK AND ENSURE THAT ALL VETERAN OFFICERS GET CORRECT AMOUNT OF PENSION!!

As far as I know, after a Pay Commission, the CDA should issue PPO to each officer and the bank concerned. Officers will then know their entiltements and check that they are getting the dues correctly.

Some veterans living in Delhi may kindly check with the Army HQ the procedure being adopted. The same can be communicated thru this Blog.

Best wishes.
Lt Gen Harbhajan Singh


Dear General Harbhajan,
Thanks. I checked with IOB (my bankers) and really what they have is copy of the 95 paged Pension Table. In fact I helped the Pension clerk to interpret and cross check the the amounts from the table. The bank has the original PPO copy which indicates the Pension, Commutation and number of years of service. The current PPO's as you have indicated would be the correct one. This is required to be updated periodically by CDA Pensions and issued to bankers. What I believe now, is that Pensions are outsourced to the bankers for implementation. Each bank has a software that works out all the arrears as on Sep 2008 once the basic pay as on 01 Jan 2006 and number of years service is fed as input. I am yet to get the print out of my arrears as a bank statement. I need to get the latest PPO from CDA.

I think the MOD needs to do a lot more to set right the chaos created by the banks. I am amazed by the callous way the Pensions of ESM are treated. We need to get to know who is really responsible for this state, the CDA, MOD or the Bankers. To me it appears like it is chugging the typical bureaucracy roller coaster. However the flip side is that the arrears have been credited and Pension enhanced by approx 35% in my case. Certainly we will post all details regarding Pension in the blog as and when we get inputs.

Regards and best wishes,
Lt Col James Kanagaraj

Ex Servicemen are invited to send in their observations/ suggestions for effective mechanism to ensure that Pension Arrears and Fixation of Pension and ultimate credit in their accounts. The issues related to PBOR is more complex especially for pre- 1996 retirees. In the absence of date of birth, grade or rank equivalent (some grades merged) the correct fixation is held up in many cases. However banks are cooperative in that arrears and fixation of Pension is effected temporarily. We like to hear more from you.......

Procedure For Drawal Of Pension While Residing Ex-India

CDA (Pensions) Allahabad
Pensioners who are living abroad and have changed their Nationality are required to follow the procedure as indicated below:
1. Open a non-resident Bank account in any scheduled Bank.
2. Execute a Power of Attorney in duplicate on Indian non-judicial Stamp paper of Appropriate value or where non-Judicial Stamp paper is not available, on plain paper affixed with adhesive Indian Stamp of Appropriate value. The value of the stamp will be determined with reference to practice as obtained in the place where the Power of Attorney is executed. The Power of Attorney will be executed before Notary public or Indian Mission abroad. It must be signed in the presence of an Indian Official of Indian Embassy/Mission abroad who should attest the signature of the pensioner.
3. If the Power of Attorney is executed on a plain paper and not affixed with the adhesive Indian Stamp, the pensioner may be requested to write to his agent in India advising him take the same to the Collector within 3 months of its receipt for getting it stamped according to Indian Stamp Act.
4. Submit an arrear claim on IAF (CDA)-651, if the pension has not been drawn for more than one year.
5. Submit Pension Claim on IAFA-380(a).
6. Submit Life Certificate duly attested by an authorized official of an Embassy/ High Commission of India or Consuls of Indian Consulates or a Notary Public or Officers of an Indian Public Sector Banks attached to a Branch in the Country where the pensioner is residing, once in a year in November each year.
7. Furnish a Nationality Certificate on the following lines:-
Certified that the Pensioner was an Indian National at the time of his retirement and has changed his Nationality thereafter and became a naturalized citizen of a foreign state.
8. To forward an attested copy of pensioner’s Pass-Port.
The above documents along with pensioner’s Pension certificate are to be forwarded to pensioner’s agent in India. ie Pension Disbursing Authority for onward transmission to Chief C D A (Pension), Allahabad.

The Life and Nationality certificates referred to at item 1 and 2 above to be submitted initially with the first claim and thereafter once in a year along with the claim for the month of April each year. In addition a declaration certifying the Act/deed done by the pensioner’s Attorney shall also be submitted in April each year. Those documents may be sent to the Attorney well in time by the pensioner so as to enable him to submit them with the claim for the month of April. It may be noted that the pension will not be paid beyond the date on which the next Life Certificate, Nationality Certificate rectification deed is due.

Lt Col Pritam Singh Jauhal (Retd) World War II Veteran
Founding President Indian Ex-Servicemen Society British Columbia
We thank Col Pritam Singh for the useful information
For more information click link below:
Principal Controller of Defence Accounts (Pensions)

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.

Defence Officers Pension Table

Based on a letter of CDA Pension, which I received in 1996, I have worked out a table which gives the pension amount of All Defence Officers (Navy and Air Force Officers have to consider their equivalent ranks of Army).
Your pension is given in the table below:

PENSION TABLE BASED ON SIXTH PAY COMMISSION REPORT
I have taken care in working out the figures in above table. However, if you still find some errors, please bear with it. Please Note

That the pension has been de- linked by 6th Pay Commission from the pay and allowances of serving personnel. Therefore, whether the pay and allowances of the serving Defence Personnel get revised further or not, your pension will remain unaffected.

The anomaly in the pension of Maj Gens continues as before.

Brig CS Kamboj, VSM (Retd)

Comments: We sincerely thank Brig CS Kamboj for unravelling the Pension entitlements and giving us a working formulae for Pension calculation and a ready reckoner pension table. One realizes the amount of time and effort that goes into deciphering the voluminous 650 paged Sixth Central Pay Commission Report. Each and every blog reader will surely appreciate the dedicated work involved in getting to us a easily digestible Pension Matrix.