PENSION POLICIES
1. Important Govt orders pertaining to pension benefits are appended below: -
Ref (I): Authority - MOD dept of ESW, ID No 1/4/2007-D (Pension/Policy) dated 04th Dec 07.
Sub: Revision of Restored 43% and 45% commuted portion of pension after 15 years from the date of commutation of Armed Forces absorbees who had drawn lump sum payment on absorption in Public Sector Undertakings/ Autonomous bodies- Implementation of Hon’ble Supreme Court Judgement dated 24.7.07 in Review Petition No. 643 of 2007.
The Public Sector Undertakings (PSUs)/ Autonomous body’s absorbees belonging to Armed Forces may apply for revision of their restored pension on a prescribed format appended below through their Pension Disbursing Agency (PDAs) who, in turn, will forward the same to the Pension Sanctioning Authorities (PSAs) concerned. All applications received from the officers and Personnel Below Officers Rank (PBOR) of all three services will be forwarded to Principal Controller of Defence Accounts( Pensions), Allahabad except in case of Naval officers and PBORs absorbed on or after 1.11.85, whose applications will be forwarded to their respective PSAs ie. PCDA (N) Mumbai. On receipt of the applications from the PDAs, the PSAs concerned will audit the claim with reference to original records held in their office and revise the restored 43% and 45% of pension, as the case may be through a corrigendum PPO and forward the same to the PDA/ Bank of the applicant through usual channel, for further necessary action under intimation to the applicant.
2. Ref (II) Govt of India , Ministry of Personnel, Public Grievances and Pensions( Department of Pension & Pensioners Welfare) letter no 4/79/2006-P&FW(D) dated 06 Sep 2007.
Sub: Restoration of 1/3rd commuted portion of pension in respect of Govt servants who had drawn lumpsum payment on absorption in public sector undertakings/ autonomous bodies, implementation of Andhra Pradesh High Court judgment dated 24 Dec 03 in writ petition no 8532 of 2003 followed by the Supreme Court judgement dated 29 Nov 06 in civil appeal no 5259 of 2006 arising out of SLP no 21647-048 of 2005 and the Supreme Court judgement dated 24 Jul 07 in review petition no 643 of 07.
(a) Govt servants who had drawn lumpsum payment in respect of pro-rata pension (1/3rd as well as 2/3rd) on absorption in a PSU/ Autonomous body and have become entitled to restoration of 1/3rd commuted portion of pension as per the provisions of this departments O.M. No 34/2/86- P & PW dated 05 Mar 87 after 15 years from the date of commutation or 01 Apr 85 whichever is later, are regulated vide this department OM No 4/59/97- P&PW(D) dated 14 Jul 1998 as clarified from time to time.
(b) Andhra Pradesh High Court in its judgment dated 24 Dec 03 in writ petition no 8532 of 2003 followed by the Supreme Court judgment dated 29 Nov 06 in civil appeal no 5259 of 2006 arising out of SLP No’s 21647-048 of 2005 and the Supreme Court judgment dated 24 Jul 07 in review petition no 643 of 07 has decided as under:-
“ the public sector undertaking absorbees are also entitled for dearness relief etc. but not on entire pension commuted as on the date of retirement. Moreover they received lump sum amount by way of terminal benefits on surrendering on 2/3rd pension. In that way, they have already parted with 2/3rd pension, it cannot be said to revive after 15 years. But, in case of Central Government pensioners 2/3rd pension was continued to be received by them. Therefore, what is restored is 1/3rd pension which means full pension. But the same principle cannot be applied to say that the absorbee will get full pension after 15 years in case those who had commuted 1/3rd pension and received terminal benefits for 2/3rd pension had he not surrendered, he continues to receive 2/3rd pension, the same principle apply as in case of Central Government employee. But having received the cash compensation in respect of the surrender value of 2/3rd, he cannot be allowed to say that he is also a pensioner as far as 2/3rd pension is concerned. Such absorbee stand on a different footing and they fall in a different class by themselves on this issue. Under those circumstances, the inescapable conclusion is that 1/3rd pension has to be arrived at only on the basis of the basic pension divided by three after completion of 15 years which becomes drawable as on the date of respective dates and not to be arrived by deducting Rs 403/- from the pension. Therefore, the petitioner will be entitled to as follows:-
Restorable Pension
From 28.06.87 to 31.12.1995
Basic Pension (604/1/3rd) Rs 201/-
Rs 538/- Dearness Relief
Rs 125/- Additional Benefits
Total Rs 864/-
From 01.01.96 onwards (5th Pay Commission)
1/3rd of Basic Pension (1,350/1/3rd) Rs 450/-
Rs 85/- Interim Relief
Rs 1,998/- Dearness Relief
Rs 640/- Fitment
Total Rs 3,173/-
In this case the employee had commuted minimum permissible pension ie. 1/3rd. But, even if lesser portion is commuted, the pro-rata commuted portion has to be deducted from the basic pension to arrive at restorable pension. However, he will get dearness relief, interim relief etc. on full basic pension”.
Format of Application Form. (To be submitted in duplicate by the Armed Forces absorbees or his family)
To:
The PCDA(N), Mumbai
( through pension disbursing authority)
Sub: Revision of restored 43% and 45% of commuted portion of pension after 15 years from the date of commutation in respect of Armed Forces Absorbees who had drawn lump sum amount on their absorption in a Public Sector Undertaking/Autonomous Body- Implementation of the Hon’ble Supreme Court Judgment.
Sir,
Kindly revise my restored amount of commuted portion of pension in terms of Ministry of Personnel, Public Grievances and Pension (department of P& PW) OM No 4/79/2006-P & PW(D) dated 06 Sep 2007 and MOD, Dept of Ex-servicemen welfare letter no 01/04/2007- D(Pen/Policy) dated 04 Dec 07. Requisite particulars are given below:-
(i) Name, Rank and Regt No/ IC No (In Block letters)
(ii) Name of Corps/RO from where retired/ discharged
(iii) Date of retirement/ discharge on permanent absorption
(iv) Original PC/PPO No and year
(v) Date of receipt of lump sum amount
(vi) First corr PPO No through which pension was restored
(vii) Amount of restored pension
(viii) Particulars of subsequent corrigendum PPO(s) issued, if any, and amount of revised restored pension.
3. Ref (III): Govt of India, Ministry of Defence letter No PC/MF- AirHQ/ 24229/ 283/ FPHC/ PP&R-3(i)/ 2678/ D(Pen/ Policy) dated 26.10.07
SUB: Nomination of Guardian by parents in respect of mentally retarded children of Armed Forces Personnel.
Govt have agreed to allow Armed Forces Personnel to nominate guardian in respect of their mentally retarded children during their lifetime. Accordingly, in case of mentally retarded son or daughter, the family pension shall be payable through a person nominated by Armed Forces Personnel or pensioner, as the case may be, and in case no such nomination has been furnished by the Armed Force Personnel or pensioners during their lifetime, through the person nominated by the spouse of the deceased personnel or pensioner. However, such personnel/ pensioners can also appoint legal guardian through Local Level Committee in terms of the National Trust for the welfare of persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act 1999 & Rules, 2000. Copy of prescribed format is available on naval website www.irfc-nausena.nic.in
4. Ref (IV): Grant of Dearness Relief to Central Govt Pensioners/ Family Pensioners – Revised Rate Effective From 01 Jan 2007
Authority – GOI, Ministry of Personnel, Public Grievances & Pensions, Department of Pensions & Pensioners Welfare Letter No 42/2/2008-P&PW(G) dated 19 Mar 08.
(a) The President is pleased to decide that Dearness Relief (DR) shall be paid to the Central Govt Pensioners/ family pensioners to compensate them for the rise in cost of living at the rate of 47% wef 01 Jan 2008.
(b) These orders apply to the Armed Forces Pensioners and Civilian Pensioners paid out of the Defence Service Estimates.
(c) The surviving CPF beneficiaries who had retired from service between the period 18 Nov 1960 and 31 Dec 1985 and are in receipt of ex-gratia @ Rs 600/- pm wef 01 Nov 1997 under this Dept’s OM No 45/52/97-P&PW (E) dated 16 Dec 1997 are entitled to Dearness Relief @ 47% wef 01 Jan 2008.
(d) The following categories of CPF beneficiaries who are in receipt of ex-gratia payment in terms of this department’s OM No 45/52/97-P & PW(E) dated 16.12.1997 will be paid DR @ 39% wef 01.01.2008.
(i) The widows and dependent children of the deceased CPF beneficiary who had retired from service prior to 01.01.1986 or who died while in service prior to 01.01.1986 and are in receipt of ex-gratia payment of Rs 605/-pm.
(ii) Central Government Employees who had retired on CPF benefits before 08.11.1960 and are in receipt of ex-gratia payment of Rs 654/-, Rs 659/-, Rs 703 and Rs 965/-
(e) Payment of dearness relief involving a fraction of a rupee shall be rounded off to the next higher rupee.
(f) Other provisions governing grant of dearness relief in respect of employed family pensioners and re-employed Central Govt Pensioners will be regulated in accordance with the provisions contained in this Dept’s OM No 45/73/97-P&PW (G) dated 02 Jul 1999. The provisions relating to regulation of DR where pensioner is in receipt of more than one pension will remain unchanged.
(g) It will be the responsibility of the pension disbursing authority, including the nationalised banks etc to calculate the quantum of dearness relief payable in each individual case.
(h) The offices of Accountant General and Authorized Public Sector Banks are requested to arrange payment of relief to pensioners etc on the basis of above instructions without waiting for any further instructions from the Comptroller and Auditor General of India and Reserve Bank of India in view of letter No 528-TA, II/34-80-II dated 23 Apr 1981 of the Comptroller and Auditor General of India addressed to all Accountant Generals and Reserve Bank of India Circular No GANB No 2958/GA-64 (ii) (CGL)/81 dated 21 May 1981 addressed to State Bank of India and its subsidiaries and all nationalised banks.
(j) In their application to the pensioners/ family pensioners belonging to Indian Audit and Accounts Dept, these orders issue in consultation with C&AG.
(k) This issues with the concurrence of Ministry of Finance, Dept of Expenditure vide their UO No 1(4)/EV/2004 dated 19.03.2008
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5. Ref V: Authority – IHQ,MOD(Navy) Letter No. PN/3990/07 dated 24 Dec 07. Sub: Introduction of Single Window System for Pensionary Claims in respect of Naval Commissioned Officers. (a) As per existing procedure, all the retiring Naval Commissioned Officers are required to submit their applications for grant of Retiring Pension directly to the PCDA (N), Mumbai. In addition, certain other documents issued by the Unit/ Ship, DOP, DGMS (N), DPS, DPA, NPO and MES are also forwarded directly to the office of the CDA (N), Mumbai. Due to involvement of a number of agencies in preparing and compiling the documents, in many cases, delay takes place in issuing PPO by PCDA (N). (b) With a view to avoid delays and ensuring that PPOs are issued in time by the PCDA(N), it has been decided that wef 01 Jan 2008 the responsibility of compiling pension claims in respect of Commissioned Officers will be taken over by the Naval Pay Office, Mumbai. The duly compiled pension claims along with LPC- cum-Data Sheets will be forwarded by the NPO to PCDA (N), for issue of PPO in time. Errata to the booklet “Navy for Life and Beyond” has been issued separately. |
6. Ref VI: Govt of India Ministry of Defence Letter no PC-1(2)/97/D/ D( Pen-C/ D( Pen/Policy) dated 30 May 08.
Sub: Rationalisation of Pension Structure for Pre 1996 Armed Forces Pensioners - Implementation of Government Decisions on the Recommendations of the Fifth Central Pay Commission - Issue of Corrigendum.
The following amendments are made to MOD letter no PC-1(2)/97/ D(pen-C), dated 16 May 2001 regarding rationalization of pension structure for pre 1.1.1996 Armed Forces Pensioners - Implementation of Government decision on the recommendations of 5th Central Pay Commission. After para 8, the following para be added as para 8.1
(a) Para 8.1
In the case of pre-1986 pensioners in receipt of War Injury Pension in terms of Govt of India, Ministry of Defence letter no 200847/ Pen- C/71, dated 24.2.1972, the war injury element will be calculated at the rates indicated at para 11.2 of this Ministry’s letter no. 1(2)/97/d(Pen-C), dated 31.1.2001 for 100% disability. Where the disability due to war injury is less than 100% but not less than 20%, the rates of war injury element will be proportionately reduced. These rates will be applicable in invalidment as well as retention cases. However, in no case the aggregate of service element and war injury element should exceed the reckonable emoluments calculated on the minimum pay in the revised scale of pay introduced wef 1.1.1996 of the rank, rank and group (in case of PBOR), held by the individual.
7. Ref VII. Eligibility of Unmarried Daughter Above 25 yrs of Age for Grant of Family Pension.
(b) MOD vide their letter no 1(3)/2007/ D ( Pen/Policy) dated 25 Oct 2007 has now decided that wef 06 Sep 07, unmarried daughters beyond 25 years of age are also eligible for family pension at par with the widowed/ divorced daughters subject to other conditions being fulfilled.
Note. Family Pension shall be payable only after the other eligible children below the age of 25 years have ceased to be eligible to receive family pension and that there is no disabled child to receive the family pension.
8. Ref VIII. Entitlement of DR on Full Pension to Public Sector Absorbees who have drawn Lump Sum Payment in lieu of Pro-rata Pension (MoD letter no 1/4/2007-D(Pen/Policy) dated 04 Dec 07.
(a) Public Sector absorbees who had taken lump sum payment in lieu of Pro-rata Pension will now get DR on full pension on restoration of 43 % commuted portion of pension.
(b) Earlier DR on restored portion of pension only was payable.
(c) Benefit of revision of restored amount is also admissible from the date the commuted portion of pension is restored.
(d) Although PSAs have been authorized to revise the pension of affected pensioner’s suo-moto, affected pensioners may apply in their own interest to PCDA (N) through PDA on the prescribed application form.
9. Ref IX. Extract of Para 7 of “Scheme of Payment of Pension of Defence Pensioners” Published by Ministry of Defence
Sub: Modalities for Transfer of Pensions Account
(a) Application in Appendix ‘B’ for transfer of pension may fall under one of the following categories :
(i) Transfer from one branch to another of the same Public Sector Bank (PSB) at the station/ district having common link branch.
(ii) Transfer from one branch to another of the same PSB in different district having another link branch.
(iii) Transfer from one branch to another of the different PSB at the same station (this will be allowed only once in a financial year)
(iv) Transfer from one branch to another of the different PSB in different district / Treasury Office (TO)/ Defence Pension Distributing Office (DPDO).
(v) Transfer from Treasury / Defence Pension Distributing Office to a branch of Public Sector Bank.
(b) Requests falling under categories (i) & (ii) above may be entertained by the PSB itself. The Paying Branch will indicate on the
Pension Documents the month up to which the pension has been paid and will thereafter return the Pension Documents to the link branch. The link branch will make necessary entry in the register maintained by it and forward the Pension Documents to the other paying branch under its control or another link branch as case may be for arranging future pension payments under intimation to pension sanctioning authority and also to CDA(P) in all cases.
(c) In cases falling under (iii) and (iv) above, the paying branch will return to its link branch the Pension Documents alongwith the application of the pensioner indicating the month upto which the payment of pension has been made. The link branch after making entries in the statement will forward these documents to the concerned link branch of the other PSB under intimation to the pension sanctioning authority and also to PCDA(P) in all cases, who later will, after making necessary entries in the register maintained by it, pass on the documents to the paying branch, opted by the pensioners, for arranging payment.
(d) In case of (v) above, the Treasury Officer/DPDO will arrange to send under a special seal the following documents. Thereafter referred to as Pension Documents along with original copy of the application, to the link branch of PSB concerned:-
(i) Civilians of Defence Services (aa) Pension Payment Order/
(including DAD, GREF and Payment Authority.
Coast Guard Pensioners)
(ab) Pension Certificate.
(ac) Identification documents
with photographs.
(ad) Extract of check register.
(ii) Commissioned Officers (aa) Pension Payment Order/
Payment Authority.
(ab) Extract of check register.
(ac) Photograph of the pensioner.
(iii) Personnel below officer rank (aa) Pension Payment Order.
(ab) Extract of check register.
(ac) Descriptive Roll with photograph of pensioner.
(e) In case the PSB Branch is situated outside the jurisdiction of the Treasury/DPDO, the TO/ DPDO will forward the pension documents to the PPO issuing authority for arranging payment of pension through the branch of the PSB concerned. The month upto which the pension was paid by the Treasury/ DPDO and the month from which the pension payment is to be arranged by the PSB will also be indicated. Applications received by TOs/ DPDOs upto 15th of the month shall be forwarded by them expeditiously so that the same are received by the link branch of the PSB concerned latest by 25th of that month to facilitate commencement of pension payment by the PSB paying branch on due date.
(f) The documents will be sent to the PSB link branch or to the authority concerned, through a messenger or under Registered cover.
(g) The original copy of annexure containing the pensioner’s request will be sent along with the pension documents. The duplicate copy will be sent to CDA(P) Allahabad and triplicate copy be retained by DPDO / TO / PSB (quadruplicate copy be sent to CDA(N) or CDA (AF), where applicable).
10. Important
(a) Before a pension payment order/ letter of authority is acted upon, it should be verified by the link branch PSB that the pension payment order/ letter of authority has been embossed with the un-coloured seal and has been signed by the officer who is authorised to sign it with reference to the specimen signature of the officer on record with PSB.
(b) In case any of the above requirements is not complete, the PPO/letter of authority will not be acted upon and returned to the issuing authority.
11. Ref XI. Government of India, Ministry of Defence letter No. 906/A/D(Pen/Sers)/ 05 dated 13th August 2008
Sub: Grant of Family Pension for life to Handicapped children of Armed Forces personnel
To
The Chief of Army Staff
The Chief of Naval Staff
The Chief of Air Staff
Sir,
(a). I am directed to state that the provisions for grant of family pension for life to physically and mentally handicapped child(ren) of Armed Forces personnel were issued vide this Ministry's letter No.A/49601/AG/PS-4(e)/3363/B/D (Pen/Sers) dated 27th August 1987 as amended from time to time. The said Govt. order dated 27.8.1987 as amended vide Corr A/219601/AG/PS-4(e)/1719/D(Pen/Sers) dated 21.12.89 is further amended as under:-
(i) In renumbered clause (v) of Para 2, for the words, "a MedicalOfficer not below the rank of a Civil Surgeon", the following shall be substituted, namely
" a Medical Board comprising of a Medical Superintendent or a Principal for a Director, or Head of the Institution or his nominee as Chairman and two other members out of which at least one shall be a specialist in the particular area of mental or physical disability including mental retardation".
(ii) In clause (iv) (as inserted vide this Ministry's corr dated 21.12.89), the words "a medical officer not below the rank of a Civil Surgeon", the following shall be substituted namely
" a Medical Board comprising of a Medical Superintendent or a Principal or a Director, or Head of the Institution or his nominee as Chairman and two other members out of which at least one shall be a specialist in the particular area of mental or physical disability including mental retardation."
(iii) In renumbered clause (vi) for the words, "shall produce every three years a certificate from a Medical officer not below the rank of Civil Surgeon", may be substituted, namely
"shall produce a certificate from a Medical Board comprising of a Medical Superintendent or a Principal or a Director or Head of the Institution or his nominee as Chairman and two other members, out of which at least one shall be a specialist in the particular area of mental or physical disability including mental retardation, once, if the disability is permanent and if the disability is temporary, one in every five years".
(b) The provisions of this Ministry's letter No. PC. MF-Air HQ/283/FPHC/PP&R-3(i)/582/A/D(Pen/Sers) dated 29.11.2005 also stand modified to the above extent. Form No. AFMSF-3B appearing at the end of para 4 of this letter is replaced by AFMSF-HD(1), the specimen of which is placed at Appendix 'C'. All other conditions governing the grant of family pension for life to mentally retarded/physically handicapped child(ren) would remain unchanged.
(c) These orders shall take effect from 28.4.2008, the date of gazette notification.
(d) This issues with the concurrence of MOD(Fin/Pen) vide their u.o.No.3233/Fin(Pen) dated 7.08.2008.
sd/-
(AK EKKA)
Under Secretary to the Govt. of India
12. RefXII: Government of India, Ministry of Defence, Department of Ex-Servicemen Welfare letter No. PC-MF Air HQ/ 24229/ 283/ FPHC/ PP&R-3(i)/ 582/ A/D(Pen/Sers) dated 29.11.2005
Sub: Grant of Family Pension for life to Handicapped children of Armed Forces personnel
To
The Chief of Army Staff
The Chief of Naval Staff
The Chief of Air Staff
Sir,
(a) I am directed to state that vide this Ministry's letter No. A/49601/ AG/ PS-4(e)/ 3363/ B/ D(Pen/Sers) dated 27.8.1987, it had been decided that the physically or mentally handicapped children of Armed Forces Personnel could be granted family pension for life subject to certain conditions. Before allowing the family pension for life to any such son or daughter, the appointing authority has to satisfy himself that the handicap is of such a nature as to prevent the child from earning his or her livelihood, and this has to be evidenced by a certificate obtained from a medical officer not below the rank of Civil Surgeon.
(b) Doubts have been raised as to which medical officer on the Armed Forces side would be an officer of appropriate rank for the purpose of rendering such a certificate.
It has now been decided that on the Armed Forces side a medical officer of the rank of Brigadier or above shall be considered as being "not below the rank of Civil Surgeon" in terms of MOD letter dated 27.8.1987.
(c) There was also a demand that in the case of mentally handicapped children, the appointment of guardian may be allowed to be made by the pensioner instead of a court of law. On the civil side, provisions in this regard already exists in the CCS (Pension) Rules, 1972 {(Rule 54(6) (VI)} It has been decided to extend this provision of the CCS Pension Rules to Armed Forces personnel also. Accordingly, in the case of mentally retarded son or daughter, the family pension shall be payable to a person nominated by the Armed Forces personnel or pensioner, as the case may be and in case no such nomination has been furnished by the Armed Forces personnel or pensioner during his life time, to the person nominated by the spouse of the deceased personnel or pensioner.
(d) The existing procedure for issue of certificate by the appointing authority about earning livelihood will continue with change in the form of certificate to be given by the designated medical authority as per form no. AFMSF-3B.
(e) Henceforth, name of the handicapped child will be indicated in the PPO to be issued for grant of service pension/ family pension as is being done on civil side in order to eliminate discrimination on this account. CGDA will issue suitable direction to Pension Sanctioning Authorities in this regard.
(f) All other conditions governing the grant of family pension to the handicapped/ mentally-retarded child would remain unchanged.
(g) These orders will take effect from the date of issue of this order. This issues with the concurrence of Ministry of Defence(Finance/ Pensions) vide their U.O. No. 1765/DFA(Pen) dated 14.11.2005.
Yours faithfully,
(SR Sharma)
Under Secretary to the Govt. of India