7th CPC - Revision of provisions regulating Pension/
Gratuity/ Commutation of Pension/ Family Pension
No. 17(02)/2016-D(Pen/Pol)
Government of India
Ministry of
Defence
Department of Ex-Servicemen
Welfare
New Delhi
Dated 4th September 2017
To
The Chief of the Army Staff
The Chief of the
Naval Staff
The Chief of the Air Staff
Sub:
Implementation of the Government decision on the
recommendations of the
Seventh Central Pay Commission - Revision of provisions
regulating
Pension/ Gratuity/ Commutation of Pension/ Family Pension
including
pensionary awards notified in terms of Casualty pensionary
awards in
respect of Commissioned Officers, Junior Commissioned
Officers Other
Ranks, Retiring or dying in harness on or after
1.1.2016.
Sir,
The
undersigned is directed to refer to the Government's
decisions on the
recommendations of the Seventh Central Pay Commission
notified vide
Government of India, Ministry of Defence, Department of Ex-
Servicemen
Welfare Resolution bearing No 17(l)/2014/D(Pension/Policy)
dated
30.9.2016, recommendations of National Anomaly Committee on
methodology
for calculation of disability element for Defence Forces and
Ministry of
Personnel, Public Grievances and Pension, Department of
Pension" and
Pensioners' Welfare Office Memorandum No. 38/37/2016 -
P&PW(A) (i)
dated 4.8.2016 as modified vide OM F No 42/14/2016-P&PW
(G) dated
24.10.2016. Sanction of the President is hereby accorded for
modification in the rules regulating Pension, Family pension,
Retirement/ Death/Service Gratuity, Commutation of pension,
pensionary
awards under casualty pensionary awards including Ex-gratia
lump sum
compensation in cases of invalidment etc., to the extent
specified in
this letter.
2. The provisions of the Pension Regulations, 2008 of
Army and various Services Regulations, Instructions and
Government
Orders issued by this Ministry from time to time, which are
not affected
by the provisions of this letter, shall remain unchanged.
3. DATE OF EFFECT
3.1
The revised provisions of this letter shall apply to the
Commissioned
Officers (including MNS and Territorial Army Officers),
Junior
Commissioned Officers and Other Ranks of the three Services,
Non-Combatants (Enrolled) in the Air Force, Defence Security
Corps and
the Territorial Army (hereinafter collectively referred to as
Armed
Forces Personnel) who retired/discharged! released/invalided
out or died
in harness on or after 1.1..2016. Separate orders have
already been
issued in respect of Armed Forces Personnel who retired/died
before
1.1.2016.
3.2 Where Pension! Family Pension/ Death Gratuity/
Retirement Gratuity/ Commuted Value of Pension or pensionary
awards
under casualty pensionary awards has already been sanctioned
provisionally, or otherwise, in cases of retirement/death
occurring on
or after 1.1.2016, the same shall be revised in terms of
these orders.
In cases where pension has been finally sanctioned under the
pre-revised
orders and if it happens to be more beneficial than the
pension
becoming due under these orders, the pension already
sanctioned shall
not be revised to the disadvantage of pensioner.
4.
RECKONABLE EMOLUMENTS
4.1
The term ' Reckonable Emoluments' for the purpose of
calculating
various-pensionary benefits other than various kinds of
Gratuities,
shall consist the following-
4.1.1
Commissioned Officers: Pay
in the Pay Matrix, Military Service Pay and Non Practicing
Allowance,
if any, last drawn by the officer (Refer - Army Officer Pay
Rules-2016,
Air Force Officer Pay Rules-2017, Navy Officer Pay
Regulations-2017 as
may be the case)
4.1.2
Junior Commissioned Officers & Other
Ranks: Pay
in the Pay Matrix, Military Service Pay, and 'X' Group Pay
&
Classification Allowance, if any, last drawn by the JCOs/ORs
"(Refer -
Army Pay Rules-2017, Air Force Pay Rules-2017, Navy Pay
Regulations-2017
as may be the case).
4.2 For calculation of all kinds of
gratuities, dearness allowance admissible on the date of
retirement/discharge/invalided out/death, shall continue to
be treated
as part of emoluments along with the emoluments as defined in
para 4.1
above.
4.3 SPECIAL PROVISIONS FOR THOSE WHO OPTED TO
CONTINUE T.O DRAW PAY IN THE PRE-REVISED SCALE OF
PAY
4.3.1
Those who have elected to continue to draw pay in the pre-
revised scale
of pay and have retired/ discharged/ invalided out of
service on or
after 1.1.2016, “their pension and gratuity, as applicable,
shall be
calculated under the rules in force immediately before coming
into
effect of these-orders".
4.3.2 The term 'Reckonable Emoluments'
for the purpose of pensionary benefits under this Para 4.3.1
shall be
the same as defined in para 3.1 of this Ministry's letter No
17(4)/2008(2)/ D(Pen/Pol) dated 12.11.2008 and shall also
include
Dearness Allowance notified under Sixth CPC Pay structure.
4.3.3
Entitlement of gratuity shall be determined, under the order
in
force-immediately before coming into effect of these orders
subject to
the maximum ceiling as prescribed in Para 8 of this
Ministry's letter
No. 17(4)/2008(2)/D (Pen/Pol) dated 12.11.2008.
4.3.4 Family Pension shall also be allowed in accordance with
orders applicable prior to the issue of these orders.
4.4
In the case of Commissioned Officers and JCOs/ORs who have
opted for
the revised pay structure and have retired/discharged within
10 months
from the date of coming over to the revised pay structure,
the average
emoluments for 10 months period preceding
retirement/discharge will be
calculated by taking into account pay as follows:-
(a) For the period during which pay is drawn in the
revised pay
|
Pay
drawn in the prescribed Pay Matrix plus structure Military
Service Pay,
'X' Group pay and whole of Classification Allowance (where
applicable
in case of JCOs/ORs) and Non Practicing Allowance, if
any.
|
(b) For the period during which pay was drawn in the
pre-revised pay scales
|
Pay
determined after applying multiplying factor of 2.57 to the
sum of
existing pay in the Pay Band, Grade Pay, Military Service
Pay, 'X' Group
Pay (in case of JCOs/ORs) and NPA, if any, drawn during the
relevant
period plus whole of classification allowance, if an ,drawn
by JCOs/OR.
|
5. QUALIFYING SERVICE
5.1
The minimum period of qualifying service prescribed for
earning various
kind of pension and gratuity by Defence Forces personnel,
shall
continue as hithertofore. There shall also be no change in
the
provisions for determining reckonable qualifying service for
calculating
pension and gratuity.-
6.
PENSION
6.1
Subject to para 6.2, there shall be no change in the
provisions
regulating the amount of pensions including pension
determined under
casualty pensionary awards. However, the provisions for
determining
pension based on, notional maximum of pre-revised pay scale
in respect
of JCOs/OR, shall be discontinued.
6.2 The amount of pension shall
be subject to a minimum of Rs 9,000/- and the maximum
pension would be
50% of highest pay in the Government (the highest pay in the
Government
is Rs 2,50,000/- with effect from 1.1.2016). However, the
maximum
ceiling'shall be applicable only in the case of
Service/Retiring
Pension, Service element of Disability/ Liberalized
disability/ War
Injury Pension and Ordinary Family Pension. The said ceiling
is not
applicable in the cases of Disability/ Liberalized
Disability/ War
injury element, being authorized under casualty pensionary
awards.
6.3
The quantum of additional pension/family pension available
to the old
pensioners/family pensioners shall be continue to be as
follows-
Age of pensioner / family pensioner
|
Additional quantum of pension
|
From 80 years to less than 85 years
|
20% of revised basic pension/ family pension
|
From 85 years to less than 90 years
|
30% of revised basic pension /family pension
|
From 90 years to less than 95 years
|
40% of revised basic pension / family pension
|
From 95 years to less than 100 years
|
50% of revised basic pension / family pension
|
100 years or more
|
100% of revised basic pension/ family pension
|
The
Pension Sanctioning Authorities should ensure that the date
of birth
and the age of a pensioner! family pensioner, are invariably
indicated
in the Pension Payment Order to facilitate payment of
additional pension
by the Pension Disbursing Agencies as soon as it becomes
due. Dearness
relief shall also be admissible on the additional pension
available to
old pensioners/family pensioners.
Note: The
additional pension payable to old pensioners/ family
pensioners of 80
years of age and above shall also be applicable to old
pensioners/
family pensioners of 80 years of age and above in receipt of
War injury
pension! Disability pension/ Liberalized family pension!
Special family
pension.
7.
GRATUITY
7.1 The maximum limit
of all kinds of Gratuity is. Retiring/ Retirement /Service
Invalid/
Special/ Terminal/ Death Gratuity shall be Rs. 20 lakhs. This
ceiling on
gratuity shall be increased by 25% whenever the Dearness
Allowance
rises by 50% of the basic pay.
7.2 DEATH GRATUITY
The rates for payment of death gratuity shall be as under:
Length of qualifying service
|
Rate of Death Gratuity
|
Less than One year
|
2 times of monthly emoluments
|
One Year or more but less than 5 years
|
6 times of monthly emoluments
|
5 years or more but less than 11 years
|
12 times of monthly emoluments
|
11 years or more but less than 20
years
|
20 times of monthly emoluments
|
20 years or more
|
Half month's emoluments for every six monthly period of
qualifying service subject to a maximum of 33 times of
emoluments.
|
8.FAMILY PENSION
8.1
Subject to para 8.2, there shall be no change in the
provisions
regulating the amount of various kinds of family pensions
including
family pension determined under casualty pensionary awards
and
additional family pension applicable to old family
pensioners.
8.2
. The amount of all kind of family pension shall be subject
to a
minimum of Rs 9,000/-. The maximum amount of normal rate and
enhanced
rate of ordinary family pension shall be 30% and 50%
respectively of
highest pay in the Government which is Rs 250,000/- with
effect from
1.1.2016. The maximum ceiling is, however, not applicable in
the cases
of Special Family! Liberalized Family Pension etc.,
applicable under
casualty pensionary awards.
8.3 The dependency criteria for the
purpose of family pension shall continue to be the minimum
family
pension along with Dearness Relief thereon.
9. Ex-GRATIA LUMP SUM COMPENSATION IN CASES OF
INVALIDMENT
9.1
- The Ex-gratia lump Sum compensation to Defence Service
personnel who
are boarded but of service on account of disability/ war
injury
attributable to or aggravated by military service, shall be
paid @ Rs 20
lakh for 100% disability subject to provisions as stipulated
in this
Ministry's letter No. 2(2)/2011/D(Pea/Pol) dated 26.12.2011.
For
disability/ war injury less than 100% but not less than 20%,
the amount
of Ex-gratia compensation shall be proportionately reduced.
No Ex-gratia
lump sum compensation shall be payable for disability/ war
injury less
than 20%. The proportionate compensation would be based on
actual
percentage of disability as certified by the Invaliding
Medical-Board,
without applying broad banding provisions as contained in
Para 7.2 of
this Ministry's letter No 1(2)!97/D(Pen-C) dated
31.01.2001.
10.
BROAD-BANDING OF PERCENTAGE OF DISABILITY/WAR
INJURY ON DISCHARGE
10.1
Where an Armed Forces personnel is discharged/retired under
the
circumstances mentioned in Para 4.1 of this Ministry's letter
No
l(2)/97/D(Pen-C) dated 311.2001 with disability including
cases covered
under this Ministry's letter “No 16(5)/2008/D(Pen/Policy)
dated
29.9.2009 and the disability/ war injury has been accepted as
20% and
more, the extent of disability or functional incapacity shall
be
determined in the manner prescribed in Para 7.2 of said
letter dated
31.1.2001 for the purpose of computing disability/war
injury.
10.2
Rates for calculation of disability where composite
assessment is made
due to existence of disability, as well as war injury, shall
be
determined in terms of provision contained in Para 3(b) of
Ministry's
letter No. 16(02)/2015-D(Pen/Pol) dated 8th August 2016.
11.
EX-GRATIA AWARDS TO CADET (DIRECT)
11.1
In cases of disablement ! death, following Ex-gratia award
shall be
payable subject to the same conditions as hitherto in force
in the event
of invalidment on medical ground / death of a Cadet (Direct)
due to
causes attributable to or aggravated by military training.
11.1.1 Monthly Ex-gratia amount of Rs 9,000/- per
month.
11.1.2
In cases of disablement, Ex-gratia disability award @ Rs
16,200/- per
month shall be payable in addition for 100% of disability
during period
of disablement subject to prorata reduction in case the
degree of
disablement is less than 100%. No disability award shall be
payable in
cases where the degree of disablement is less than 20%.
11.1.3 In cases of death, Ex-gratia amount of Rs 12.5
Iakhs.
11.1.4
The Ex-gratia awards to Cadets (Direct)! NoK, shall be
sanctioned
purely on ex-gratia basis and the same shall not be treated
as pension
for any purpose.
However, dearness relief at applicable rates shall be granted
on monthly ex-gratia as well as ex-gratia disability
award.
12.
CONSTANT ATTENDANT ALLOWANCE (CAA)
12.1 "Constant Attendant Allowance shall continue to be
admissible under the
condition as hitherto fore at the existing rate from
1.1.2016 to
30.06.2017. However, it shall be admissible at the uniform
rate of Rs.
6750!- per month, irrespective of the rank with effect from
1.7.2017."
13.
COMMUTATION OF PENSION:
13.1
There shall be no change in the provisions relating to
commutation
values, the limit upto that the pension can be commuted or
the period
after which the commuted pension is to be restored.
13.2 The
pensioners who have retired between 1.1.2016 and date of
issue of orders
for revised pay/ pension based on the recommendations of the
7th CPC,
shall have an option, in relaxation of provisions of relevant
Pension
Regulations, not to commute the pension which has become
additionally
commutable on retrospective revision of pay / pension on
implementation
of recommendations of the 7th CPC, Option form to be used for
this
purpose shall be prescribed by the PCDA (Pension), Allahabad
along with
their implementation instructions.
13.3 The option may be invited
only from those who Want to commute their pension which has
become
additionally commutable as per Para 13.2 above and no
commutation shall
be allowed as a default. In such cases, RO/HOO/PSAs will
finalize the
cases without waiting for Option for commutation of
additional pension
and such option, if any, received later on (within four
months from the
date of issue of this letter) may be processed separately for
additional
commutation. Option for additional commutation on the basis
of revised
pension once exercised would be final and in no case it would
be
entertained at a later stage. Service Hqrs may be deputed as
Nodal
agencies to carry out such exercise with the respective ROs
for the
speedy implementation of work and forward such cases to
PSAs.
GENERAL INSTRUCTIONS
14.
The amount of various pensionary awards admissible in terms
of this
order, shall be round-ed off to the next higher rupee by the
Pension
Sanctioning Authorities.
15.If the amount of any monthly pension!
family pension admissible under the provisions of this letter
works out
to be less than Rs 9,000/- per month, it shall be stepped up
to Rs
9,000!- per month and authorized for payment at this rate.
16.The
pension/ family pension notified in terms of these orders
from 1.1.2016
or thereafter, shall qualify for dearness relief sanctioned
by the
Government from time to time in accordance with the relevant
rules!
instructions.
PROCEDURE FOR SANCTION OF'REVISED PENSION TO THOSE
WHO HAVE ALREADY RETIRED
17.
For revision of pensionary awards as per provisions of this
letter in
respect of Armed Forces personnel who have already retired/
discharged/
invalided out/ died on or after 1.1.2016 and in whose cases,
pensionary
benefits at pre-revised rates have already been notified, the
Record
Offices concerned in case of JCOs/ORs and PCDA(O) Pune/ Naval
Pay Office
Mumbai/ AFCAO, New Delhi, as the case may be in respect of
commissioned
officers, will initiate and forward revised LPC-cum-Data
Sheet as
prescribed by PCDA(Pensions), Allahabad, to their respective
Pension
Sanctioning Authorities (PSAs) for issue of Corrigendum PPOs
notifying
the revised pensionary awards. Further, implementation
instructions to
all concerned, shall be issued by PCDA (Pensions), Allahabad
immediately
on receipt of these orders.
18. Pension Regulations of the three Services, shall be
amended in due course.
19.
This issues with the concurrence of the Finance Division of
this
Ministry vide their ID Note No.10(03)/2017/Fin/Pen dated
30.08.2017.
20.Hindi version will follow.
Yours faithfully
S/d,
(Manoj Sinha)
Under Secretary to the
Government of India.
