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FlashFLASH**** UNION CABINET APPROVED OROP-3 REVISION FROM 01/07/2024 & CIRCULAR IS LIKELY TO BE ISSUED SOON **** New ***** *UNION CABINET APPROVED OROP REVISION FROM 01/07/2024 & CIRCULAR IS LIKELY TO BE ISSUED SOON
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  • Tuesday, 15 October 2024

    The Methodology & Modus operandi adopted by 7th CPC can not be Altered by OROP Revision instructions.

    The Methodology  & Modus  operandi  adopted by 7th CPC can not be Altered  by OROP Revision instructions.

    The existing uniform X Group Pay of Rs 1400 under the 6th CPC for X Group Technical trades has been enhanced by the 7th CPC and bifurcated into Rs 6200 and Rs 3600, based on AICTE equivalent diploma and non-AICTE respectively. This X Group Pay of Rs 6200, being eligible for the calculation of Basic Pension and Dearness Allowance for AICTE equivalent X Group trades, forms the basic structure of their Basic Pension, irrespective of the date of retirement. All pre-2016 (pre-7th CPC) AICTE equivalent X Group trade retirees have been issued revised Pension Payment Orders reflecting this revised eligibility.eligibility of Rs 6200 under 7thg CPC.

    The Cabinet-approved version of the 7th Central Pay Commission (CPC) has uniformly applied the methodology for the calculation and conversion of basic pension and basic pay for Pre-2016 retirees. The first method, referred to as the Notional Method of Calculation, involves gathering data for each individual retiree from the 3rd CPC onwards, which is a time-consuming process. As a temporary measure, an alternative method, known as the Multiplication Factor Method, was introduced. This method uses a multiplication factor to adjust the existing basic pay, reckonable elements, and dearness relief until the benefits under the notional method are finalized.

    Subsequently, the pension for all  Pre-2016 retirees was recalculated on a notional basis. This process involved determining their basic pension or basic pay, starting from the 3rd th CPC to the 7th CPC pay matrix, and including reckonable elements under the 7th CPC, such as Military Service Pay (MSP) and X Group Pay, as applicable. This recalculation was in accordance with the Cabinet Resolution dated 05/09/2016 and PCDA Circular No. 585.

    Following the notional revision of basic pension, pre-2016 retirees who were eligible for X Group Pay of Rs. 6,200 received their corrigendum EPPOs showing their revised eligibility under 7th CPC. These orders reflected their revised basic pension under the 7th CPC pay matrix and separately mentioned their revised MSP as Rs. 5,200 and revised X Group Pay as Rs. 6,200, as applicable to X Group Technical Trades and based on eligibility, equivalent to an AICTE diploma, as notified in Air HQ Circular No. Air HQ/99141/1/AFPCC dated 08/05/2017.

    While the effective date of implementation for the 7th CPC was 01/01/2016, the implementation of One Rank One Pension (OROP-2) was set from 01/07/2019. The basic pension under the 7th CPC, including all reckonable elements determined on a notional basis, forms a basic structure and integral part of the pension and serves as the basis for the calculation of OROP from 01/01/2016. The Provisions of OROP cannot be used to dispute or discriminate against a homogeneous group whose pension is legally fixed by the cabinet-approved 7th CPC including the reckonable elements of MSP and X Group Pay of Rs. 6,200, as shown in their revised EPPOs. These elements being an integral part of their pension and should be considered in any future revisions, including under OROP-2. It has has been observed by Apex courts in Many Judgement that  the Recommendations of Pay Commissions which consists of technocrats & Experts drawn from relevant field can not interfered by courts.

    Para  3 & 4 of MOD Letter No 17(01)/2017/(02)/D( Pension/Policy) dt.05/09/2017 notified as an authority for PCDA circular No. 585 dated 21/09/2017 read as here under:-

    ' Para3- In accordance with the decisions mentioned in this Minisrtry's Resolution No. 17(1)/2014/D (Pension/Pol) dated 30/09/2016 and letter No. 17(01)/2016/-D(Pen/Pol) dated 29/10/2016, the fesibility of the first formulation recommended by the 7th CPC has been examined by the committee headed by Secretary, Department of Pension & Pensioner's Wefare'

    ' Para 4- The aforesaid Committee has submitted its report and recommendati ons made by the Committee have been considered by the Government. Accordingly it has been descided that revised Pension / family Pension of all Armed Foces Personnel who retired / died Prior to 01/01/2016, shall be revised by notionally fixing their Pay in the Pay matrix recommended by the 7th CPC in the level corresponding to the Pay in the Pay scale / Pay band and grade Pay at which they retired / died. This will be done by notional Pay fixation under each intervening Pay Commission based on the formula for revision of Pay. The revised rates of Military service Pay Non Practicing Allowance, where applicable, and X Group Pay & Classification Allowance for JCO/ORs, if applicable, notified in terms of of 7th CPC orders shall also be added to the amount of Pay Notionally arrived at under the 7th CPC Pay matrix and shall be termed as notional reckonable emolument as on 01/01/2016. while fixing Pay on notional basis, the Pay fixation formulae, approved by the Government and other relant instructios on the subject in force at the relevant time, shall be strictly followed."

    Para-1of MOD Letter No 17 (01) /2017/(02)/D(Pension/ Pol) dated : 17/10/2018 which is notifeid as an authority to issue PCDA Circular No 608 dated: 26/10/2018, further Emphasize the eligibility of X Pay under 7th CPC to all eligible Pre-2016 retired veterans with out any cut off date, reads as follow-s:

    " The undersigned is directed to convey that instructions were issued  for revision of Pension / family Pension With effect from 01/01/2016 in respect of Armed Forces Pensioners / family Pensioners who retired / died Prior to 0/01/2016 vide this Ministry's letter No. 17 (01)/2017(02)/D(Pension/ Policy) dated 05/09/2017. As per the same revision of Pension for Pre-2016 Armed Forces Pensioners/family Pensioers under first formulaion , was to be done by notionally  fixing their Pay in the Pay Matrix recommended by 7th Central Pay Commission in the level corresponding to the Pay in the Pay scale/ Pay band and grade Pay at which they retired. The notional Pay fixation in the 7th CPC Pay matrix has to be arrived by fixing the Pay under each intervening Pay commission based on the formula for revision of Pay. The revised rates of Military service Pay, Non Practicing Allowance, where applicable, and ' x ' Group Pay & classification Allowance for JCO/ORs , if applicable notified in terms of 7th CPC orders, shall also be added to the amount of pay notionally arrived at under the 7th CPC Pay matrix and shall be terme as notional reckonable emolument as on 01/01/2016 for determining the revised Pension/family Pension in term of Para 5 of this Ministry's letter dated 05/09/2017.

    In conclusion, any attempt to bifurcate or exclude the reckonable elements of pension already established under the 7th CPC for the purposes of OROP-2 would be arbitrary and discriminatory, as it violates the legal framework established by the Cabinet Resolution and the corresponding EPPOs. The legally mandated notional fixation of pension, with all its reckonable elements, must continue to be applied uniformly in future pension revisions, including  all future revisions in OROP.

    Following Documents in their cronological order confirms aplicabilty of X Pay of 6200 to eligible Pre-2016 retirees beyond any ambiguity.

    1) ANNEXURE-1 AICTE Approval Letter F.No. AICTE/UG/G-41 dated: 10/03/2003 (CLICK TO VIEW)

    2) ANNEXURE-2 Para 4(a) & 4 (b) of 7th CPC Cabinet Resolution dated: 05-09-2016 Authorising X Group Pay Rs.6200 / Rs 3600 to Group X trades on the basis of Equvalancy of AICTE/NON-AICTE Qualification Respectively (CLICK TO VIEW)

    3) ANNEXURE-3 Eligible Trades for X Pay 6200,Vide Air HQ Letter No. Air HQ/99141/1/AFPCC dated: 08 May 2017(CLICK TO VIEW).

    4) ANNEXURE-4 Ministry of Defence (MOD) Letter No. 17(01)2017(02)D(Pension Policy) dated: 05/09/2017 Revision of Pension of Pre-2016 Defence Forces Pensioners/Family Pensioners (CLICK TO VIEW)

    5) ANNEXURE-5 PCDA Circular No. 585 dated: 21/09/2017 Revision of Pension of Pre-2016 Defence Forces Pensioners/Family Pensioners (CLICK TO VIEW)

    7) ANNEXURE-7 PCDA Circular No. 608 dated: 26/10/2018 Revision of Pension of Pre-2016 Pensioners/Family Pensioners in 7th CPC by Concordance Tables (CLICK TO VIEW)

    8) ANNEXURE-8 Dte of PA Air HQ (V B) Letter No. Air HQ/40802/7/PA-1, ACAS (Accounts & AV) dated: 12/11/2018 Issue of Diploma Certificates to Airmen Proceeding on Discharge (CLICK TO VIEW)

    9) ANNEXURE-9 Air HQ Letter No. Air HQ/99144/6/AFPCC dated: 20/06/2023 Requesting Review of MOD, DESW Decision on X Pay 6200 (CLICK TO VIEW)

     10) ANNEXURE-10 AIR HQ Diploma Equivalency - Confirmation by Air HQ of Diploma Issued under Authority of Government of India, Ministry of Education and Social Welfare (Department of Education) OM Number F-18-5275-T-2/T-2 dated: 22/07/1977 being equivalent to Diploma issued under AICTE Letter No. AICTE/UG/G-41 dated: 10/03/2003 (CLICK TO VIEW)

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