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.Traiiiing i{inistry ef Fersennei &, Department of Personnel & Training {JCA Section} New;De1hi.dated the 24u November,2016 OFFICE MEMORAIVDUM
lsr Meeting of the Anomaly Committee tc be held on O1/ l-zlzOLG Secretary{P} on the ealeulation of the ur:ider the- €haircnanship-of Pension for Defence Forces' Personnel as per the Disability recornmendations of the 7th central Pay cornntission.
Sub.:
In continuation of this Department's O.M. no. dated 29.11'.2076 on the subject as mentioned above, a copy of the agenda note to 1be taken up for discussion in the said meeting is forwarded herewith for kind p"tht$ Encl. as above
#r;,: secretary(c * * **.#,F,PJ"P"IY '5
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" "% A11Staff Side members of the Standing Co{nni$teb of the National Council (JCM) (As per list attaehed). *., ,i _ u u.* ut " Copy for information to: * Council (JCM), 13-C, Ferozeshah Road, Secretary, Staff SdeI$X*"ri "@"' $ New Delhi. General Secretqq'- ANf'; + State Entry Road, New Delhi. 3 Chelmsford Road, New Delhi. General Secre.@4y;'l$FlR,
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Deputy Secretary(CPCI Tel. No. 2309
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NAT:zNAL FEDER,,nIN rlD!,4Nnntwnruwli:Frr;__ ?i @ 'l' Chelmsfortt \oud',NewDelhi No.'\'/NAC/?Cpc/2016
_ Dtted: 26/l I/2016
Copy.fttnuorrlul to Ihe Genarol Se cretttrin o./,offilirttetl IJttiotts o/ NFIR.[or ittfrtrntutiott.
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AGENDA FOR DISCUSSION IN THE ANOMALY COMMITTEE MEETING UNDER THE CHAIRMANSHIP TO BE HELD AT 11.00A.M. ON 01.12.2016 OF SECRETARY,.DoPT) The Agenda for discussion penains to the issue of demand of Defence Forces Personnel for restoration of the percentage-basedmethodology for the calcuiation of Disability Pension to the Defence Forces Personnel. The 7th CPC has recommended a slab-basedmethodology for calculation of Disability Pension fot them. As per theit demand, while the 7th CPC has tecommeflded slab-based system for calculation of Disability Pension for the Defence Fotces Petsonnel, it has not made ^ny recommendation for the civilians which continues to be percentage-based.Therefote, their contention is that the proposed slab-basedDisability Pension systemwill lead to an anomalybetween the Civilian side and the Defence Fotces Personnel. It has been decided to refer the rrre;tter fot urgent considetation before the National Anomaly Committee. The tecommendations of the 7th CPC on this issue is containel in nata nn 10.2.55which i.sat Annexure-I.
2.
The justifrcation for the reconunendation given by the 7'h CPC in patas 10.2.49to 1.0.2.51are^tAnnexure-II,III & IV.
3.
The representativesfrom the Defence Fotces Personnel in a meeting held on have interalia contendedthat: 1.1.1.1..201,6
4.
a)
That the 7th CPc-recommended slab-basedDisability Pension System wilt, if implemented, lead to an anomaly benveen the civil-ian side and the Defence Fotces Personnel because the civilian side will continue to be govetned under a perceritagebased system.
b)
The basis of the 7,t' CPC recommendations for inttoduction of the slab-basedsystem fot the Defence Fotces Petsonnel, viz. that the percentage of officers retiring with disability element has increased, is erroneous. Accotding to their contention beween 5th & 6tl' CPC, the number of retfuement caseswith disability eiement has,in fact, fallen as beiow: Rank
Lt. Col.
5* CPC Regime Range (Slab Based) 1.2o/oto 38o/o
6* CPC Regime Range (Petcentage Based) 7.5o/oto 27.20/o ^a
a A /
Col.
4.8o/oLo 24.9Yo
Bdg.
4oh rc 17o/o
2,7o/oto 2!.60/o
Maj. Gen.
4o/oto 17 .5o/o
0o/oto 1,6.50/o
Lt. Gen.
70o/oto 50o/o
0o/oto L5.40/o
5.J"/o to lJ.37o
1 l l ) l g c
r
I
7th cPC has etroneously assumed that the slab-basedsystem would benefit the lowet ranks by natrowing down the gap
.)
betweeflthemaximumandtheminimum.AsPeftheir of conclusi.on, except for benefitting a miniscule number Defence Forces ?ersonnel who wouid get invalidated out in the lowet ranks of service, the slab- based system would be detrimental to most ranks in ali superannuationcases. Point-wise inputs on the contention received ftom the D/o \X/elfareat Annexure-V ate bdefly as undet: 5.
Ex-Seryicemen
7* Pay Commission has fecommended slab-basedsystem for disabiiity element of disability pension for Defence Forces Pensionets. However, the Jb CPC has not made arry fecommendation for the civilians. The existing system of disability on pefcentage-basedsystemwould, thetefote, continue
a)
in civil side. This has led to an anomalous situation' A comparative statement indicating the petcentage of tetirees with disability duting 5th CPC er^ when slab-system was prevalent vis-i-vis retirees with disability during 6'h cPC when percentagesystemwas placed, is as under: Ranks
of Petcentage with tetitees disability dudng 2005 1996 to
of Percentage with retirees during disability 2015 to 2006
Colonel/Equivalent
(6'hCPC) (5'hCPC) 2.04Yo-1.8.3oh 7 .5o/o-27.2o/o I.56To-11.38Yo 3.3o/o-23.3o/o
Brigadiet/Equivalent
2.08o/o-17.42Yo
2.70h-21.60/o
Major
0.0%-11'27%o
0.0Y0-16.5Vo
0.0o/o-21'88Y0
0.0oh-15.4o/o
Lt. Col/Equivalent
General/Equivalent Lt. General/Equivalent
It could be seen from the data given by cGDA office that percentageof retirees for commissioned officers have incteased in 6'h CPC tegime vis-)-vis 5thCPC' r-\
Pre 2016 retirees comparison between slab and percerrtage system of disability element for pre-1.1.201.6tetitee pensionershave been made with reference to pay last dtawn by migrating the same in
The
7,h cPC pay suucture and aiso by working out the disability element by linking the same wrth revj.sedsen'ice pension undet 7th cPc. The statements indicating tank wise, quaiifying service 2lPage
wise status in both the said scenario are attached as AnnexureV('B' and 6Ct) respectively. The statement indicates that all commissioned officers are at disadvantage in case the slab recommended by 7,h CPC is implemented. However, in case of JCO/ORs, lower ranks are getting benefited under slab rates. '
Further the details of 1,09,938JCO/OR retirees have also been analyzed on actual basis as data for these pensioners we€e teadily available. It could be seen from the outcome tabulated as Annexure-V('D'), that lower tanks of JCO/OR are getting benefited especially Sepoy, Naik & Naib Subedar. Out of 1,09,988 records of JCO/OR processed, 85,640 (71.86W pensioners would get benefi.ted under slab rates. It is also intimated to the Ministry that pension for all pre-1.7,201,4 tetirees have been tevised undet OROP orders. It has been obsewed/ analyzed that the pension of JCO/OR pensioners who ate drawing pension on OROP tates (pre-2006 retirees and post-2006 retirees who tetired 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 entidement are not yet finalized. Howevet, based on the recornmendations of 7th CPC, it .o.rid be visuali zed, that future progression in new pay 'system stftrcture percentage-based would definitely be beneficial for post-7e CPC retireesin all ranks. 6.
The matter is placed before the National
Anomaly
Committee for
consideration.
3lPage ','.{
Annexute-tIt
Para No. 10.2.55 The feature that stands out when the hristorical evolution of the regrme relating to'disability pension is studied is the shift from slab-based system to a percentage based disabijity pension regime coflsequent. to the implementation of the 6'h CPC's recolnmendations. This move has been contrary to the tenets of equity insofar as treatrnent of disabiiity element between Officers and ]COs/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 tegime implemented post 6* CPC needs to.be discontinued. and recofirmends a return to the slab-based system. The slab rates for disability element fot 100 percent disabiJitywould be as follows:
Rank Servjce Officers
Levels
Rates (ir Rs. per month)
1 0and above
21,000
6to9
17,000
5 and below
12,000
HonoraryCommissionedOfficers Subedar Maj or/ Equivalent Subedar/EquiValent Naib Subedar/Equivalents H.avtldar/Equivalents Naik/Equivalents Sepoy Equivalents
f.i
Annexure-(II' i
L0.2.49-The notable facts about the disability payout regime Lfe|
a) There was a gtadual raflonahzation i.n the numler of slabs from eight, pnor to 3'dCPC to three after the 4'h CPC. b) The
ratio
of
maximum
to
minimum
quantum
of
compeflsation for disability across the ranks witnessed a decline from 4.85 prior to the 3'd CPC to 1.67 post 5thCPC. As ^ consequence of the implementation of the recolnmendations of the percefltage based system based on the 6th CPC Report the tatio of the maximum to minimum 'wasreversedand now standsat 8.60. .) Implementation of the 6'h CPC recommendations resulted in a substanttd. inctease in the disability element' For 100 percent disabiJity, at the minimum level, i'e', for ORs, it 'weflt up from Rs. 1,550to Rs. 3,1.38,i.e., a little over double atd at highest level amongst officers from Rs. 2,600 to Rs. 27,000,i.e.,by 10.38times. d) Disability pension consists of two elements viz', service element and disability element. \il7hile the service element was linked with the qualifying service, disability element was not. Therefore, for the same levei of disability, the service officet invalided out and one who sewed on and retired in due course, got the samequarltum of disability element'
.r{
.
Annexure-tIIIt lA.2.50To examinethe recent trends in disability cases,the Commission sought data and further clanfrcationswith regard to all casesof pensioners with disability element. The total number of peasiorrers superannuating with disability element, each yea;r, from 2007-0.8 to 2A13-1.4,as provided by the Controller General of Defence AccountsfccDA) is tabulated below: Financial. Year
2007-08 2008-09 2009-10 2070-71 2071-72
2012-1,3 2073-74
"'{
JCos/ roRs
Commissioned Officers
Total
JCo/oR
c )? 5 {
285
9,640
(18.e)
(13.6) 318
(18.7)
7,226
1150\
(13.6)
284
2,928 Q.2)
(4.8)
(16.6) 376 (18.8)
4,765
r
tr !e
Total Retirees 49396
Total Officer Retirees
2096
50913
21,1.8
39133
1712
2,756
38249
t67B
321
5086
48201
1626
(e.e)
(1e.7)
(1,0.2)
5,837
327
53446
1643
(10.e)
(1e.e)
6,164 (11.2)
4,037
318
4,355
55901
1606
Q.2)
(1e.8)
(7.6)
6,908 (13.6) 2,644 (6.8) 1,840
Annexure-tIYt 10-.2.57:-The following trends are discernible: ^. As a percentage of the total officer tetirees, the number of offi.cers retiring with disabiiity has incteased tn 2013-\4, as /
comparedto 2007-08(13.6percentto 19.8percent). t
b. The percentageof JCOs/ORs retiring *ith disability is, on 't th. other hand, decteasing(18.9percent to 7.2 percent). percentage of offi.cers retiring with disabiJity is considerably higher than JCO / ORs retiting with disability'
c. The
't,u{
'
of lndia Governrnent Ministryof Defence Welfare Departmentof Ex-Servicemen D(Pension/PolicY)
ANNEXURE-V
underthe to be heldon 1t1U2A16 subject:1,tAnomalycimmitteeMe_eting for Pension of Disability . chairmanship of secretary(pi'; calculation of the 7th DefenceForcespersonnelas per the recommendations centralPaycommission' ment of p""onn"t a is directedto referto Depart The undersigned 2016on theabove November dated'1sth OM No.li,22OlO-.JCA(P0 Training subject. 2 ' P o i n t - w i s e i n p u t s f o r t h e a g e n d a n oraised i e o nint h e imeeting s s u e sheld raisedbyth the peten." r.itt Personnel ine tiom representatives areas under: on 11.1X.2016 slabbasedsystemfor disability has recommended (a). 7thpay commission the7th However Fort" pensioners' o"t.nr. to, pension disability of element system for the civilians'Theexisting cPC hasnotmadeanyrecommenoation in civilside' continue basedtvtt.* wouldtherefore on percentage of disability situation' Thishasledto an anomalous
. t b ] ' A c o m p a r a t i v e s t a t e m e n t i n*I. d i cpt.uulent a t i n g t hvii-a-vis e p e r c eretirees n t a o ewith o f rdisability etireeswith ituringbthCpC erawhenslabsysteii placed' is as under: during6rnCPC*flJn'p.i."nttg" iystemwas retireeswith Percentageof retirees Ranqe;i during2006io ourtt disabttttY with disabilitY during Oisa6itity C 1996to 2005(5m!Cq- 2 0 1 5 ( 6 m P c
T.oAw- 18.3%
7 .5o/o-21'ZYo
17.42% ZnAo/o1.270/o ab%-t Fquivalent trltaior -GeGeneral/ 0.0%!21.88Yo ivalent Equ ral/ n e Lt
2,.1o/o-zl.6o/o
t-f CotlEquiva-qlent
Equivalent CotoneY
t SOY. - 17.38o/o
3,3%- 23.3Yo
o.sY' 0.0Y.-t 6.ook-15.qo/o
. l t c o u l d b e s b e n f r b m t h e d a t a g i v e n b yinq ceih-cpc j | o f f i cregime e t h a t pvis'i'vis e r c e n t5tn ageof increased havJ officers commissioned for retirees cPC. tc) Pre2016retirees
for preelement svlt3m of disability percent3ue and slab between The comparison the to paylastdrawnby.migrating havebeen.riJ*iin refJrence pensioners the 1.j.2016retiree linking bv -"tlll o:1lry';islbil*y element samein 7th cPC pavstructureand ur'o"[i CPC' The statemenisindicating rankwise' rh samewith revisedservicepensionunOui scenario are attachedas Annex6reB & C said the both service*iru uialui in qualifying officersareat disadvantage fne statet*nt inAi"atestf',aiaiicommissioned respectively.
'1:'.rJ
in case of cPC is implemented'However seventh by recommended slab the in case underslab rates' iboJon", lower tunxt "" gettingbenefitted analysedon Jco/oR retireeshave a|so been Further the details of 1,09,988 lt couldbe seenfrom
werereadityava'abre. actuarbasisas datafor the.sepensioneii - D, thtt towbr raffi of JCO/ORare getting Anne*ur. as the outcornetabulated out of 1'09'988recordsof JCO/OR sepoy,Naik& Nains-uoedar' especially ben€fitted p ro ce sse d ,3 S '6 4 0 (77' 86i0) 9.ns1111' wouldgetbenefittedunde revised r s l abr ai es .l t trr pie-1'7'2014retireeshavebeen intimatedto the Ministrythat penstonloi JCO/OR of that the p.ension underOROPorders.lt has beenonserveOl'anatysed (pre'2006retireesand postoRoP-rates on pension drawing pensi'oneiswho are ratesof utt gettingbenefitedunderslab 2OOS'1ol, upto retiree who retirees 2006 disabilitYPension. Post20{ 6 retirees
F o rp o st.l 'l .2 0 l6r etir ees,no.com par isonhas.beenm adea s noti fiofc ati onr basedon the recommendations However, iinati.zeO. y.t noi to pay enti'emeni;;;; pay structure that future progressionin new.' 7th cpc, it couii o. ui"rirrized cpc retirees for post-7th
*.uro o.inii.rv nr'n"n"ficiar nasei percentage "vrt",n all ranks. in
\fl,J-"^^'Q
+lbb Sinha) (Manoj (Pen/PolicY) UnderSecretary ShriD K SenguPta Secretary DeputY ooi'f, NorthBlock,NewDelhi 2016 dated?'?-November MoDlD 3840/D(Pen/Pol)/2016
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