|Home||Vth CPC Orders||Commissioned Officers/ PBORs|
1(2)/97/D (Pension/ Service)
Government of India
Ministry of Defence
New Delhi Dated 24th Nov. 1997
The Chief of the Army Staff
The Chief of the Naval Staff
The Chief of the Air Staff
Subject : Implementation of Government's decision on the recommendations of the
Fifth Central Pay Commission - Rationalisation of pension of pre - 1996
pensioner / family pensioners belonging to the Armed forces.
undersigned is directed to state that in pursuance of Government's decision on
the recommendations of Fifth Central pay Commission announced vide Govt. of
India, Ministry of Personnel, Public Grievances and Pension, Department of
Pension & Pensioner's Welfare resolution No. 45/86/97 - P & PW (A) dt.
30.09.97 sanction of the President is hereby accorded to the regulation, with
effect from 1.1.96, of pension / family pension of all the pre -
1996 pensioners / family pensioners of
the Armed Forces in the manner indicated in the succeeding paragraphs.
2.1 These orders apply to all the
Armed Forces Pensioners / Family Pensioners who were drawing pension / family
pension under the Pension Regulations of the three Services / State Forces and
various other orders issued from time to time.
2.2 The Provisions of this latter do
not apply to the following categories :-
(i) Gallantry awardees - monetary allowance attached to the award, such as
Param Vir Chakra, Ashok Chakra, etc.
(ii) UK / HKSRA Pensioners.
(iii) KCIOs who were in receipt of pension in
pound sterling as on 01.01.96.
Persons in receipt of Compassionate Allowance Guzara, Reservist
allowance or any other allowance on which relief is not admissible.
Ex-gratia family pension at Rs. 150/- per month to the families of deceased
reservist covered by Govt. of India Min. of Defence Order No. 10 (7) / 92
/ D (Pens / Sers ) dt. 30th March 1992.
(vi) Persons in receipt of Disability
(Separate orders will be issued in respect of (v) and (vi) above.)
Definitions. In these orders :-
(a) Existing Pensioner' or 'Existing family Pensioner'
means a pensioner who was drawing / entitled to pension / family pension
on 31.12.95 or who retired on 31.12.95. For purpose of family pension, it also
covers members of family of those who retired prior to 1.1.1996 and in whose
case family pension had not commenced as the pensioner was alive on 31.12.1995.
(b) Existing Pension means the basic pension inclusive of commuted
portion, if any, and One Time Increase (OTI), if any, due on 31.12.1995. It
covers all classes of pension including Disability pension granted under the
Pension Regulations of the three services / State Forces and various other Orders
issued from time to time on the subject. This also includes additional pension sanctioned
to Havildar granted Honorary Rank of Naib Subedar. However, it will
not include Adhoc ex-gratia payment and personal pension (PP) and unabsorbed
personal pension (UPP), if any.
(c) Existing family pension '
means the basic family pension drawn on 31.12.1995 under the Pension
Regulations of the three services / State Forces and other orders issued on the
subject from time to time. It also cover Liberalised and Special family pension
including Children Allowance, if any, and Dependent pension sanctioned in battle
and non - battle casualty case.
(d) Existing Dearness Relief'
means the dearness relief due to pensioners / family pensioners up to average CPI 1510 ( as on 1.1.1996 ) at the rate contained in government of India,
Ministry of Personnel, Public Grievances and Pension, Department of Pension and
Pensioners Welfare Office Memorandum No. 42/8/96 - P & PW (G) dated
(e) Pension Disbursing Authority (PDA) means, Treasury,
Sub-Treasury, Post Office, Sub post office, Pay and Accounts Office, Defence
Pension Disbursing Office (DPDO) and Public Sector Banks.
(f) Pension Sanctioning Authority (PSA)
means CCDA (Pension ) Allahabad; CDA (Navy) Mumbai; or CDA
The pension / family pension of existing pre- 1996 pensioner / family
pensioners will be consolidated with effect from 1.1.1996 by adding together :-
(i) The existing pension / family pension.
Dearness Relief up to CPI 1510 i.e. @ 148%, 111% and 96% of basic pension
on 1.1.96 vide DP &PW's O.M. No. 12/8/96 - P &PW (G) dated 20.03.96.
Interim Relief I.
(iv) Interim Relief II.
(v) Fitment weightage @ 40% of the existing pension / family pension i.e., of
NOTE :Where the amount of fitment weightage works out in fraction of a
rupee, it will be be rounded off the next higher rupee.
4.1.2 The amount so arrived at will be regarded as
consolidated pension / family pension with effect from
1.1.1996. Since the consolidated pension will be inclusive of commuted portion of pension if any the
commuted portion will be deducted from the said amount while making monthly disbursements.
4.2 The following elements will
continue to be paid as separate elements in addition to the pension / family
pension consolidated under these orders. These payments will not be taken into account for purposes
of consolidation as well as for applying minimum limit of Rs. 1275.00 to the pension / family pension :-
(i) Personal Pension (PP)., or Unabsorbed Personal Pension (UPP), if any
admissible to those who retired between 01.04.85 and 31.12.85.
Adhoc ex-gratia payment to Armed Forces pensioners who retired prior to
allowance attached to gallantry awards such as Param Vir Chakra,
Ashok Chakra Etc.
Allowance and Children Education Allowance, where admissible.
(v) Constant Attendance Allowance where admissible.
4.3 Since the consolidated pension /
family pension arrived at as per paragraph 4.1.1 includes dearness relief up to average index level 1510, dearness relief will be
admissible thereon only beyond index average 1510 in accordance with the revised
scheme of dearness relief for which orders have been issued separately by
Department of Pension and Pensioners' Welfare vide their office Memorandum NO.
42/2/97 - P&PW/ (G) dt . 27th Oct. 1997,. The two installments of dearness
relief sanctioned earlier from 1.7.1996 and 1.1.1997 in department of P&PW's
office Memorandum NO. 42 (8) P&PW / 96 dated the 12th September 1996 and
Office memorandum NO. 42(2) P&PW /97 dated the 3rd April 1997 respectively
will be adjusted towards the arrears becoming due on consolidation of pension /
family pension as in Para 4.1.1 above.
4.4 The amount already paid on
account of Interim Relief III sanctioned vide Deptt of P & PW's Office
Memorandum No. 42/18/95-P & PW/G-Vol II dated 6.9.1996 will be recovered
from the arrears becoming due on consolidation of pension/family pension as in Para
4.1.1 above. Since the OTI Will now be a part of consolidated basic pension
with effect from 1.1.96, any amount of OTI paid as separate element from 1.1.96
and the relief there on if any, will be recovered from the arrears becoming due
on consolidation of pension/family pension as per the provisions in Para 4.1.1
5. Where the
consolidated pension /family pension in terms of paragraph 4.1.1 above works out
to an amount less than Rs.. 1275/- the same will be stepped up to Rs. 1275/-.
This will be regarded as pension /family pension with effect from 1.1.96. In the
case of pensioners who are in receipt of more than one pension, the floor
ceiling of Rs. 1275/- will apply to the total of all pensions taken together.
6. The employed / re-employed pensioners / family pensioners are not getting dearness relief on pension at present under extant orders. In their case the notional dearness relief which would have been admissible to them but for their employment / re-employment will be taken into account for consolidation of their pension in terms of paragraph 4.1.1 above as if they were drawing the dearness relief. Their pay will be re-fixed w.e.f. 01.01.1996 with reference to consolidated pension becoming admissible to them. Dearness relief beyond 01.01.1996 will, however not be admissible to them during the period of employment / re- employment.
7. The cases of Armed
Forces personnel who have been permanently absorbed in public sector
undertakings / autonomous bodies will be regulated as follows :-
the Government servants on permanent absorption in public sector undertaking /
autonomous bodies continue to draw pension separately from the Government, the
pension of such absorbees will be updated in terms of these orders. where the
Government servants have drawn one time lump sum terminal benefits equal to 100%
of their pensions and have become entitled to the restoration of 45% of their
pension in case of PBORs and Officers, respectively, commuted portion of Pension
restored as per Department of P & PW's OM NO. 4/3/86 - P&PW (d) dated
30.09.1996 their cases will not be covered by these order. They will be paid
only restored value of the commuted portion.
Family Pension In
cases where, on permanent absorption in public sector undertakings / autonomous
bodies, the terms of absorption permit grant of family pension under the orders
applicable to the Armed Forces, the family pension will be updated in accordance
with these orders.
All Pension Disbursing Authorities including public sector Banks handling
disbursement of pension to the Defence pensioners are hereby authorised to pay
pension / family pension to existing pensioners / family pensioners at the
consolidated rates without any further authorisation from the concerned Pension
Sanctioning Authority. A table indicating the existing pension, the consolidated
pension and difference payable from 1.1.96 is enclosed for ready reference.
(Annexure I). This table may be used where the pensioner is in receipt of a
single pension only. Where a pensioner is in receipt of more than one pension,
consolidation may be done separately in terms of paragraph 4.1.1 and as
indicated in paragraph 5. Floor ceiling of Rs. 1275/- may be applied to total
pension from all sources taken together. A suitable entry regarding the revised
consolidated pension will be recorded by the Pension Disbursing Authorities in
the Pension Payment Order an check register / pension payment scroll register.
An intimation regarding disbursement of revised pension may be sent by the
pension disbursing authorities to the office of Chief CDA (Pensions) Allahabad
in the form given at Annexure II so that the latter can update the audit Cards
and other pension documents maintained by him. An acknowledgment shall be
obtained by the Pension Disbursing Authorities from Office of CCDA(P),
9. The consolidated
pension / family pension as worked out in accordance with provisions of Para
4.1.1 above will be treated as interim Basic Pension / family Pension with
effect from 1.1.1996 as interim measure only so as to provide them immediate
relief and may be subject to variation. This interim pension / family pension
will qualify for grant of Dearness Relief sanctioned at revised rate vide
department of P&PW 's O.M NO. 42/2/97 - P&PW (G) dated 27.10.97.
Detailed instructions regarding fixation of the pay on notional basis / revision
/ consolidation of all kinds of pensions /
family pension and issue of authorisation in this regard will be issued
separately. Pending issue of detailed instructions as stated above grant of
interim pension / family pension to all these pensioners / family pensioners may
be continued to be regulated under these orders.
10. the arrears on account of
consolidation of pension would be paid in cash with the stipulation that where
amount of arrears in less than 5000/- it should be paid on one installment and
where its is in excess of Rs. 5000/-, it should be paid in two installments; in
the first installment payment should be restricted to Rs. 5000/- plus fifty per
cent of their balance amount of arrears.
11. It is considered desirable that
the benefit of these orders should
reach the pensioners as expeditiously as possible. To achieve this object, it is
desired that all Pension Disbursing Authorities should ensure that the revised
pension and the first installment of arrears due to the pensioners in terms of
the above orders is paid to the pensioners or credited to their account by 31st
December 1997 or before, positively. Instructions regarding release of second
installment of arrears will be issued later.
12. These orders issue with the
concurrence of the finance Division of this Ministry vide their U.O No. 2196 /
97/ Pension dated 17.11.1997.
13. Hindi version of these order
Secretary to the Govt. of India
Form of Intimation by the Pension Disbursing Authority to the CDA (P)
regarding consolidation of pension in terms of Ministry of Defence
letter NO. 1 (2) /97 / D (Pen/ Ser) Dated Nov. 1997
|1||Name of the
Pensioner / Family Pensioner
retirement / Death
(In case of family Pension)
|4||Name of the
Bank / Paying Branch / Treasury / DPDO/ PAO/PO
A/C No/TS/PS No.
|7||Computation of consolidated Pension / Family pension|
Family Pension Family
Pension (at enhanced rate)
(Inclusive of commuted portion of pension, OTI,
Disability element if any)
portion of pension, OTI,
Disability element if any)
Disability element if any)
|Existing Family Pension|
Relief up to
CPI 1510 i.e. 148% 111% and 96% of Pension / Family
pension as drawn
and 96% of Pension / Family
pension as drawn
pension as drawn
|(E)||40% of Basic
Family Pension as at 'A' above.
Family Pension (A+B+C+D+E)
after deducting commuted portion.
consolidated pension / family pension is final or allowed as immediate
|9.||Remarks , If
PENSION DISBURSING AUTHORITY
1. The Chief CDA (Pensions)