7th Pay Commission Anomaly Committee - Agenda Item relates to Disability Pension
Agenda for 1st Anomaly Committee of 7th CPC is given below:
AGENDA FOR DISCUSSION IN THE ANOMALY COMMITTEE MEETING TO BE
HELD AT 11.00 A.M. ON 01.12.2016 UNDER THE CHAIRMANSHIP OF SECRETARY,
DoPT)
The Agenda for discussion pertains to the issue of demand of Defence
Forces Personnel for restoration of the percentage-based methodology for
the calculation of Disability Pension to the Defence Forces Personnel.
The 7th CPC has recommended a slab-based methodology for calculation of
Disability Pension for them. As per their demand, while the 7th CPC has
recommended slab-based system for calculation of Disability Pension for
the Defence Forces Personnel, it has not made any recommendation for the
civilians which continues to be percentage-based. Therefore, their
contention is that the proposed slab-based Disability Pension system
will lead to an anomaly between the Civilian side and the Defence Forces
Personnel.
It has been decided to refer the matter for urgent consideration before the National Anomaly
Committee.
2. The recommendations of the 7th CPC on this issue is contained in para no. 10.2.55 which is
at
Annexure-I.
3. The justification for the recommendation given by the 7th CPC in paras 10.2.49 to 10.2.51
are at
Annexure-II, III & IV.
4. The representatives from the Defence Forces Personnel in a meeting held on 11.11.2016 have
inter alia contended that:
a) That the 7th CPC-recommended slab-based Disability Pension System will, if implemented,
lead to an
anomaly
between the civilian side and the Defence Forces Personnel because the
civilian side will continue to be governed under a percentage- based
system.
b) The basis of the 7th CPC recommendations for introduction of the
slab-based system for the Defence Forces Personnel, viz. that the
percentage of officers retiring with disability element has increased,
is erroneous. According to their contention between 5th & 6th CPC,
the number of retirement cases with disability element has, in fact,
fallen as below:
| Rank |
5th CPC Regime Range (Slab Based) |
6th CPC Regime Range (Percentage Based) |
| Lt. Col. |
12% to 38% |
7.5% to 21.2% |
| Col. |
4.8% to 24.9% |
3.3% to 23.3% |
| Brig. |
4% to 17% |
2.7% to 21.6% |
| Maj. Gen. |
4% to 17.5% |
0% to 16.5% |
| Lt. Gen. |
10% to 50% |
0% to 15.4% |
c) 7th CPC has erroneously assumed that the slab-based system would
benefit the lower ranks by narrowing down the gap between the maximum
and the minimum. As per their conclusion, except for benefitting a
miniscule number of Defence Forces Personnel who would get invalidated
out in the lower ranks of service, the slab- based system would be
detrimental to most ranks in all superannuation cases.
5. Point-wise inputs on the contention received from the D/o Ex-Servicemen Welfare at
Annexure-V are briefly as under:
a) 7th Pay Commission has recommended slab-based system for
disability element of disability pension for Defence Forces Pensioners.
However, the 7th CPC has not made any recommendation for the civilians.
The existing system of disability on percentage-based system would,
therefore, continue in civil side. This has led to an anomalous
situation.
b) A comparative statement indicating the percentage of retirees with
disability during 5th CPC era when slab-system was prevalent vis-a-vis
retirees with disability during 6th CPC when percentage system was
placed, is as under:
| Ranks |
Percentage of retirees with disability during 1996 to 2005 (5th CPC)
|
Percentage of retirees with disability during 2006 to 2015 (6th CPC)
|
| Lt. Col/Equivalent |
2.04%-18.3% |
7.5%-21.2%
|
| Colonel / Equivalent |
1.56%-17.38% |
3.3%-23.3%
|
| Brigadier / Equivalent |
2.08%-17.42% |
2.7%-21.6%
|
Major
General / Equivalent |
0.0%-11.27% |
0.0%-l 6.5%
|
| Lt. General/Equivalent |
0.0%-21.88% |
0.0%-15.4%
|
It could be seen from the data given by CGDA office that percentage
of retirees for commissioned officers have increased in 6th CPC regime
vis-a-vis 5th CPC.
c) Pre 2016 retirees
The comparison between slab and percentage system of disability
element for pre-1.1.2016 retiree pensioners have been made with
reference to pay last drawn by migrating the same in 7th CPC pay
structure and also by working out the disability element by linking the
same with revised sendee pension under 7th CPC. The statements
indicating rank wise, qualifying sendee wise status in both the said
scenario are attached as
Annexure- V('D' and 'C')
respectively. The statement indicates that all commissioned officers are
at disadvantage in case the slab recommended by 7th CPC is implemented.
However, in case of JCO/ORs, lower ranks are getting benefited under
slab rates.
Further the details of 1,09,988 JCO/OR retirees have also been
analyzed on actual basis as data for these pensioners were readily
available. It could be seen from the outcome tabulated as
Annexure-V('D'),
that lower ranks of JCO/OR are getting benefited especially Sepoy, Naik
& Naib Subedar. Out of 1,09,988 records of JCO/OR processed, 85,640
(77.86%) pensioners would get benefited under slab rates. It is also
intimated to the Ministry that pension for all pre-1.7.2014 retirees
have been revised under OROP orders. It has been observed/analyzed that
the pension of JCO/OR pensioners who are drawing pension on OROP rates
(pre-2006 retirees and post-2006 retirees who retired upto 2009-10), are
getting benefitted under slab rates of disability pension.
Post 2016 retirees
For post-1.1.2016 retirees, no comparison has been made as
notification relating to pay entitlement are not yet finalized. However,
based on the recommendations of 7th CPC, it could be visualized that
future progression in new pay structure percentage-based system would
definitely be beneficial for post-7th CPC retirees in all ranks.
6. The matter is placed before the National Anomaly Committee for consideration.
Annexure-'I'
Para No. 10.2.55
The feature that stands out when the historical evolution of the regime
relating to disability pension is studied is the shift from slab-based
system to a percentage based disability pension regime consequent to the
implementation of the 6th CPC's recommendations. This move has been
contrary to the tenets of equity insofar as treatment of disability
element between Officers and JCOs/ORs is concerned borne out by the fact
that the ratio of maximum to minimum quantum of compensation for
disability across the ranks is now disproportionately high at 8.6. The
Commission is, therefore, of the considered view that the regime
implemented post 6th CPC needs to be discontinued, and recommends a
return to the slab-based system. The slab rates for disability element
for 100 percent disability would be as follows:
| Rank |
Levels
|
Rates (in Rs. per month)
|
| Service Officers |
10 and above
|
27,000
|
| Honorary Commissioned Officers |
| Subedar Major/Equivalent |
6 to 9
|
17,000
|
| Subedar/Equivalent |
| Naib Subedar/Equivalents |
| Havildar / Equivalents |
5 and below
|
12,000
|
| Naik/Equivalents |
| Sepoy Equivalents |
Annexure-'II'
10.2.49: The notable facts about the disability payout regime are:
a) There was a gradual rationalization in the number of slabs from eight, prior to 3rd CPC to
three after the 4th CPC.
b) The ratio of maximum to minimum quantum of compensation for
disability across the ranks witnessed a decline from 4.85 prior to the
3rd CPC to 1.67 post 5th CPC. As a consequence of the implementation of
the recommendations of the percentage based system based on the 6th CPC
Report the ratio of the maximum to minimum was reversed and now stands
at 8.60.
c) Implementation of the 6th CPC recommendations resulted in a
substantial increase in tire disability element. For 100 percent
disability, at the minimum level, i.e., for ORs, it went up from Rs.
1,550 to Rs. 3,138, i.e., a little over double and at highest level
amongst officers from Rs. 2,600 to Rs. 27,000, i.e., by 10.38 times.
d) Disability pension consists of two elements viz., service element
and disability element. While the service element was linked with the
qualifying service, disability element was not. Therefore, for the same
level of disability, the service officer invalided out and one who
served on and retired in due course, got the same quantum of disability
element.
Annexure-'III'
10.2.50 To examine the recent
trends in disability cases, the Commission sought data and further
clarifications with regard to all cases of pensioners with disability
element. The total number of pensioners superannuating with disability
element, each year, from 2007-08 to 2013-14, as provided by the
Controller General of Defence Accounts (CGDA) is tabulated below:
| Financial Year |
JCOs/ ORs |
Commissioned Officers |
Total |
Total JCO/OR Retirees |
Total Officer Retirees |
| 2007-08 |
9,355
|
285
|
9,640 |
49396
|
2096
|
(18.9)
|
(13.6)
|
(18.7) |
| 2008-09 |
6,908
|
318
|
7,226 |
50913
|
2118
|
(13.6)
|
(15.0)
|
(13.6) |
| 2009-10 |
2,644
|
284
|
2,928 |
39133
|
1712
|
(6.8)
|
(16.6)
|
(7.2) |
| 2010-11 |
1,840
|
316
|
2,156 |
38209
|
1678
|
(4.8)
|
(18.8)
|
(5.3) |
| 2011-12 |
4,765
|
321
|
5086 |
48201
|
1626
|
(9.9)
|
(19.7)
|
(10.2) |
| 2012-13 |
5,837
|
327
|
6,164 |
53446
|
1643
|
(10.9)
|
(19.9)
|
(11.2) |
| 2013-14 |
4,037
|
318
|
4,355 |
55901
|
1606
|
(7.2)
|
(19.8)
|
(7.6) |
Annexure-IV
10.2.51:- The following trends are discernible:
a. As a percentage of the total officer retirees, the
number of officers retiring with disability has increased in 2013-14, as
compared to 2007-08 (13.6 percent to 19.8 percent).
b. The percentage of JCOs/ORs retiring with disability is, on the other hand, decreasing (18.9
percent to 7.2 percent).
c. The percentage of officers retiring with disability is considerably higher than JCO/ORs
retiring with disability.
ANNEXURE-V
Government of India
Ministry of Defence
Department of Ex-Servicemen Welfare
D(Pension/Policy)
Subject: 1st Anomaly Committee Meeting to be held on
1/12/2016 under the Chairmanship of Secretary(P) on calculation of
Disability Pension for Defence Forces personnel as per the
recommendations of the 7th Central Pay Commission.
The undersigned is directed to refer to Department of Personnel &
Training OM No. 11/2/2016-JCA(Pt) dated 15th November 2016 on the above
subject.
2. Point-wise inputs for the agenda note on the issues raised by the
representatives from the Defence Force Personnel raised in the meeting
held on 11.11.2016 are as under:
(a) 7th Pay Commission has recommended slab based system for
disability element of disability pension for Defence Forces Pensioners.
However the 7th CPC has not made any recommendation for the civilians.
The existing system of disability on percentage based system would
therefore continue in civil side. This has led to an anomalous
situation.
(b) A comparative statement indicating the percentage of retirees
with disability during 5th CPC era when slab system was prevalent
vis-a-vis retirees with disability during 6th CPC when percentage system
was placed , is as under:
| Ranks |
Percentage of retirees with disability during 1996 to 2005(5th CPC) |
Range of retirees with disability during 2006 to 2015(6th CPC) |
| Lt. Col/ Equivaqlent |
2.04%-18.3%
|
7.5%-21.2%
|
| Colonel/ Equivalent |
1.56%-17.38%
|
3.3%-23.3%
|
| Brigadier/ Equivalent |
2.08%-17.42%
|
2.7%-21.6%
|
| Major General/ Equivalent |
0.0%-11.27%
|
0.0%-16.5%
|
| Lt. General/ Equivalent |
0.0%-21.88%
|
0.0%-15.4%
|
It could be seen from the data given by CGDA office that
percentage of retirees for commissioned officers have increased in 6th
CPC regime vis-a-vis 5th CPC.
(c)
Pre 2016 retirees
The comparison between slab and percentage system of disability
element for pre- 1.1.2016 retiree pensioners have been made with
reference to pay last drawn by migrating the same in 7th CPC pay
structure and also by working out the disability element by linking the
same with revised service pension under- 7th CPC. The statements
indicating rank wise, qualifying service wise status in both the said
scenario are attached as Annexure – B & C respectively.
The
statement indicates that all commissioned officers are at disadvantage
in case the slab recommended by Seventh CPC is implemented. However in
case of JCO/ORs, lower ranks are getting benefitted under slab rates.
Further the details of 1,09,988 JCO/OR retirees have also been
analysed-on actual basis as data for these pensioners were readily
available. It could be seen from the outcome tabulated as Annexure - D,
that lower ranks of JCO/OR are getting benefitted especially Sepoy, Naik
& Naib Subedar. Out of 1,09,988 records of JCO/OR processed, 85,640
(77.86/0) pensioners would get benefitted under slab rates. It is also
intimated to the Ministry that pension for all pre-1.7.2014 retirees
have been revised under OROP orders.
It has been observed/
analysed that the pension of JCO/OR pensioners who are drawing pension
on OROP rates (pre-2006 retirees and post- 2006 retirees who retiree
upto 2009-10), are getting benefited under slab rates of disability
pension.
Post 2016 retirees
For post-1.1.2016 retirees, no comparison has been made as
notification relating to pay entitlements are not yet finalized.
However, based on the recommendations of 7th CPC,
it could be
visualized that future progression in new pay structure percentage based
system would definitely be beneficial for post-7th CPC retirees in all
ranks.
(Manoj Sinha)
Under Secretary (Pen/Policy)
Shri D K Sengupta
Deputy Secretary
DoPT, North Block, New Delhi
MoD ID 3840/D(Pen/Pol)/2016 dated 22 November 2016
