Defence Minister’s Customary Broadcast to The Armed Forces

My Dear Jawans,

 The country will be celebrating our 71^st Independence Day tomorrow. On this momentous occasion, I extend my heartiest greetings and best wishes to each one of you serving in the Armed Forces. I extend my greetings to all serving personnel as well as ex-servicemen of the Army, Navy, Air Force and the Coast Guard. I also extend my best wishes to the family members of our Armed Forces personnel, many of whom are deployed far from their homes in not only tough terrain but also in deep seas.

 2.         On this auspicious occasion, my thoughts and gratitude are with the near and dear ones of all those who laid down their lives protecting our nation. We are forever indebted to them for their supreme sacrifice. Since the Armed Forces are at the forefront of our nation’s defence, I assure you that the Government will do all that is necessary to keep your morale high and to meet your functional requirements.

 3.         Despite our repeated requests to our Western neighbour not to use our territory occupied by it not only to train terrorists but also use it as launch pad for pushing these militants into India, such nefarious activities continued. We ran out of patience as these terrorists were not only targeting our Armed Forces but also civilians. Based on specific and credible inputs about some terrorist teams having positioned themselves at launch pads along Line of Control to carry out infiltration and conduct terrorist strikes in Jammu and Kashmir and in various metros in other States, the Indian Army conducted surgical strikes on 29 September last year at several of these launch pads to pre-empt infiltration by terrorists. The operations were focussed on ensuring that these terrorists did not succeed in their design to cause destruction and endanger the lives of our citizens. During these counter terrorist operations significant casualties were caused to terrorists and those providing support to them.

 4.         Even now our jawans continue to be vigilant on the Line of Control, defending the nation, as our adversary continues with its abhorrent acts. Some of our soldiers continue to make the supreme sacrifice while defending our motherland. The nation is indebted to their martyrdom.

5.         The Government is committed for the welfare of our jawans. The Government has taken decision on recommendations of the 7^th Central Pay Commission on Allowances, which will benefit 14 lakh Defence Forces personnel. Some of these include, rates of Siachen Allowance for extreme risk and hardship increased from Rs 14,000 per month to Rs 30,000 per month; Counter Insurgency Operations Allowance increased from between Rs 3,000 and 11,700 per month to between Rs 6,000 and 16,900 per month. Territorial Army Allowance increased from between Rs 175 and 450 per month to Rs 1,000 and 2,000 per month.

 6.         The welfare of Ex-Servicemen has been paramount for the government. The benefits of One Rank One Pension (OROP) scheme started reaching the accounts of Ex-Servicemen and families since last year. Till July 10 this year, a sum of Rs 4,156 crores and Rs 2,385 crores have been paid towards first and second instalments of OROP arrears to around 20,40,000 Ex-Servicemen/family pensioners and 15,93,000 Ex-Servicemen respectively. Further, a sum of Rs 2,250 crores has also been paid to 15,13,000 Ex-Servicemen as third instalments of OROP arrears. The Government is also sympathetically considering the report of the one-man judicial committee headed by Justice L Narasimha Reddy on OROP to look into the anomalies, if any, arising out of implementation of OROP and will take decision soon.

 7.         The government has enhanced penury grant to non-pensioner Ex-Servicemen/Widows to Rs 4,000/- per month from the existing rate of Rs 1,000/- per month. We have approved the enhancement of the penury grant following the demands by different stake holders, including Ex-servicemen Associations, Rajya Sainik Boards, Ex-servicemen/widows. The grant is provided to non-pensioner Ex-servicemen/widows, who are above 65 years of age by the Department of Ex-Servicemen Welfare through Kendriya Sainik Board. It will benefit a large number of non-pensioner Ex-servicemen and widows who are virtually in a state of penury.

 8.         With the inspiration of Prime Minister Shri Narendra Modi, to help create a spirit of respect for our real heroes, my esteemed cabinet colleague, Minister of Human Resource Development Shri Prakash Javadekar and Minister of State for Defence Dr. Subhash Bhamre jointly launched a campaign to have a ‘Wall of Valour’ in 1,000 educational institutions across the country in the Month of May. Portraits of Param Vir Chakra decorated soldiers will be displayed at designated places on educational campuses to instil sense of nationalism among the students.

 9.         I had privilege to inaugurate the Sainik Rest House at Naraina in New Delhi last month. It is built at a cost of around Rs 8 crore. I hope that this is the beginning of an initiative and the KSB will be able to expand on these in the years to come so that such facilities become an integral part of facilities for Ex-Servicemen. The facilities which have been created are extremely hygienic and very liveable. The Armed Forces have a tradition of maintaining their properties and preserving them well. And I am sure that the kind of modest charges which have been fixed will be of a great assistance and value to all serving and Ex-Servicemen.

 10.       With these words, I once again extend my greetings to all of you and your family members on the eve of 71st Independence Day. We fought long for our Independence and became Independent nation in which countless patriots immersed themselves in the struggle so that the new generation could live in a free India. The nation now looks to you to defend its borders with all your might and to the best of your strength & abilities so that all our people sleep in peace tonight so that we all see a new dawn together, tomorrow and to take our country to new heights of peace and prosperity for all our people. 

 11.       Jai Hind! 

HAPPY INDEPENDENCE DAY- JAI HIND

RTI REPLY - INCLUSION OF X GP PAY IN BASIC PENSION OF VETERANS

Cabinet approves modifications in the 7th CPC recommendations on pay and pensionary benefits

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi approved important proposals relating to modifications in the 7th CPC (Central Pay Commission) recommendations on pay and pensionary benefits in the course of their implementation. Earlier, in June, 2016, the Cabinet had approved implementation of the recommendations with an additional financial outgo of Rs 84,933 crore for 2016-17 (including arrears for 2 months of 2015-16).

The benefit of the proposed modifications will be available with effect from 1st January, 2016, i.e., the date of implementation of 7th CPC recommendations. With the increase approved by the Cabinet, the annual pension bill alone of the Central Government is likely to be Rs.1,76,071 crore.  Some of the important decisions of the Cabinet are mentioned below:

1.        Revision of pension of pre – 2016 pensioners and family pensioners

The Cabinet approved modifications in the recommendations of the 7th CPC relating to the method of revision of pension of pre-2016 pensioners and family pensioners based on suggestions made by the Committee chaired by Secretary (Pensions) constituted with the approval of the Cabinet.  The modified formulation of pension revision approved by the Cabinet will entail an additional benefit to the pensioners and an additional expenditure of approximately Rs.5031 crore for 2016-17 over and above the expenditure already incurred in revision of pension as per the second formulation based on fitment factor.  It will benefit over 55 lakh pre-2016 civil and defence pensioners and family pensioners.

While approving the implementation of the 7th CPC recommendations on 29th June, 2016, the Cabinet had approved the changed method of pension revision recommended by the 7th CPC for pre-2016 pensioners, comprising of two alternative formulations, subject to the feasibility of the first formulation which was to be examined by the Committee.

In terms of the Cabinet decision, pensions of pre-2016 pensioners were revised as per the second formulation multiplying existing pension by a fitment factor of 2.57, though the pensioners were to be given the option of choosing the more beneficial of the two formulations as per the 7th CPC recommendations.

In order to provide the more beneficial option to the pensioners, Cabinet has accepted the recommendations of the Committee, which has suggested revision of pension based on information contained in the Pension Payment Order (PPO) issued to every pensioner.  The revised procedure of fixation of notional pay is more scientific, rational and implementable in all the cases.  The Committee reached its findings based on an analysis of hundreds of live pension cases.  The modified formulation will be beneficial to more pensioners than the first formulation recommended by the 7th CPC, which was not found to be feasible to implement on account of non-availability of records in a large number of cases and was also found to be prone to several anomalies. 

2.         Disability Pension for Defence Pensioners

The Cabinet also approved the retention of percentage-based regime of disability pension implemented post 6th CPC, which the 7th CPC had recommended to be replaced by a slab-based system.

           

The issue of disability pension was referred to the National Anomaly Committee by the Ministry of Defence on account of the representation received from the Defence Forces to retain the slab-based system, as it would have resulted in reduction in the amount of disability pension for existing pensioners and a reduction in the amount of disability pension for future retirees when compared to percentage-based disability pension. 

The decision which will benefit existing and future Defence pensioners would entail an additional expenditure of approximately Rs. 130 crore per annum.

SC RESERVED ORDERS IN BANK RETIREES CASE

Source:LIC PENSIONERS CHRONICLE

MSP INCLUDED IN THE LATER NOTINGS & THEY TRIED TO EXCLUDE BUT COULD NOT SUCCEED

-Page 11/N-

Ministry of Defence

D (Pay/Services)

Reference Defence (Finance) Note at Page-10/N. 

          This is regarding implementation of the recommendations of the 7^th Central Pay Commission (CPC). A copy of Department of Expenditure Note no. 1-2/2016-IC dated 28.6.2016 along with copy of the minutes of meeting of Cabinet held on 29.6.2016 has been received from Ministry of Finance, D/0 Expenditure, Implementation Cell for implementation of recommendations of the 7^th Central Pay Commission (CPC) – issue of Resolution and revised rules – reg. The previous Resolution issued by the Government at the time of 6^th CPC is at Flag/’A.’  The Ministry of Finance has issued the Resolution No. 1-2/2016-IC on 25.7.2016 (Copy at Flag/’B.’)

2.       Some of the important recommendations in respect of the Defence Personnel (PBOR) are mentioned below: -

          (i)      Implementation of the revised pay structure will be w.e.f 01.01.2016;

(ii)      Pay related matter;

(a)      The existing system of Pay Band and Grade Pay has been replaced with separate Pay Matrices for both Defence and Military Nursing Services personnel.

(b)             Fitment of each employee in the new Pay Matrix would be done by multiplying his/her basic pay on the date of implementation by a factor of 2.57.

Note-1        With regard to fixation of pay in the new Pay Matrix as on 01.01.2016, the existing pay (Pay in Pay Band plus Grade Pay) in the pre-revised structure as on 31.12.2015 shall be multiplied by a factor of 2.57. The figure so arrived at is to be located in the Level corresponding to employee’s Grade Pay in the new Pay Matrix. If a Cell identical with the figure so arrived at is available in the appropriate Level, that Cell shall be the revised pay; otherwise the next higher cell in that Level shall be the revised pay of the employee.

Note -2       After fixation of pay in the appropriate Level as specified in Note-1 above, the subsequent increments shall be at the immediate next Cell in that Level.

-Page 12/N-

®       General recommendations on pay recommended by the Commission have been accepted with the following exceptions in Defence Pay Matrix in order to maintain parity in pay with Central Armed Police Forces (CAPFs).

3.                  The index of Rationalisation of Level 13A (Brigadier) in Defence Pay Matrix may be revised upward from 2.57 to 2.67.

3.                  Additional 3 stages in Levels 12A (Lt Col), 3 stages in Level 13 (Colonel) and 2 stages in Level 13A (Brigadier) may be added appropriately in the Defence Pay Matrix.

iii.      Increase in Military Service Pay (MSP) of Personnel Below Officer Rank (PBOR) from Rs 2000/- to Rs 5200/- p.m. MSP would be counted only for Dearness Allowance (DA) and Pension purposes; 

iv.      There will be two dates for grant of increment viz, 1^st January and 1^st July of every year, instead of the existing date of 1^st July. However, an employee will be able to avail annual increment only on one of these two dates depending on the date of appointment, promotion or grant of financial upgradation;    

3.                  Recommendations on Allowances (except Dearness Allowance) would be referred to a Committee comprising Finance Secretary & Secretary (Expenditure) as Chairman and Secretaries of Home Affairs, Defence, Personnel & Training etc. The Committee would submit its report within a period of 4 months. Till a final decision on Allowances is taken based on the recommendations of this Committee, all Allowances would continue to be paid at existing rates in the existing pay structure, as if the pay had not been revised w.e.f. 1.1.2016 i.e. status quo would be maintained. 

                   vi.      Arrears of Pay would be paid during the current financial year.

vii.     Recommendations not relating to pay and allowances and other administrative issues specific to department/cadres/posts would be examined separately as per the Transaction of Business Rules/Allocation of Business Rules.

3.       It is further stated that after examining the minutes of meeting of Cabinet held on 29.6.2016, a draft Resolution was prepared in anticipation and submitted for approval. The proposal has been approved by AS ® vide Note -2/N. Subsequently, the file was sent to Defence (Finance) for their concurrence and vetting of the Draft Resolution vide Note 3/N. However, Defence (Finance) vide their Note on page 4/N returned the file stating that the Resolution needs to be authenticated before concurrence is given. Vide note on page 9/N the file was again sent to Defence (Finance) after authentication of Resolution for vetting of the draft Resolution in respect of Defence Personnel (PBOR). Now, Defence (Finance) has given its concurrence vide their Note (Note Page 9/N) dated 3.8.2016.

4.       In view of the above, the file is submitted for kind approval of Defence Secretary. Thereafter, the file will be referred to the Ministry of Finance, Department of Expenditure (Implementation Cell) for vetting the Resolution.

Sd/-----------

3/8/16

Section Officer (P/S)

US (P/S)  on leave

DS (AG-II) Def (Finance) have vetted draft resolution. The file is submitted for kind approval of Secretary (Defence) please.                  Sd/------------------ 4/8/16

JS (E)           Sd/---------- 4/8/16

                   (V Anandarajan) JS (Estt)/CAO 

AS (K)         Sd/------------- (Suresh Kumar) AS (K) & CVO 4.8.16

Defence Secretary           Appd           Sd/-------- 8/8/16

JS (E)           Sd/------------ 8/8/16

DS (AG-II) Sd/------------- 8/8/

US (P/S)     Sd/----------9/8/16

SO (P/S)     Sd/---------- 9/8

Ministry of Finance, Deptt of Expenditure (IC Cell)         Sd/-----------9/8/2016

THE FILE NOTINGS REVEWALS HOW MSP WAS DENIED EARLIER BUT RESTORED LATER

File Notings Resolution 2 (E)

File No. 1(7)/2016/D (Pay/Services)

-1-

Ministry of Defence

D (Pay/Services)

Subject: Resolution containing decisions of Government on recommendations of VII CPC relating to PBORs of Armed Forces

          A copy of Department of Expenditure No. No. 1-2/2016-IC dated 28.6.2016 along with a copy of the minutes of meeting of Cabinet held on 29.6.2016 has been received from Ministry of Finance, D/o Expenditure, Implementation Cell for implementation of recommendations of the 7^th Central Pay Commission (CPC) – issue of Resolution and revised rules-reg. The previous Resolution issued by the Government at the time of 6^th CPC is at Flag ‘A.’

2.       Some of the important recommendations in respect of the Personnel Below Officer Rank (PBOR) are mentioned below: -         

(i)      Implementation of the revised pay structure will be w.e.f 01.01.2016;

(ii)      Pay related matter;

          (a)      Minimum pay would be Rs 18, 000/- p.m.;

          (b)     The existing system of Pay Ban and Grade Pay has been replaced with three separate Pay Matrices for Civil, Defence and Military Nursing Services personnel.

(c)      Fitment of each employee in the new Pay Matrix would be done by     multiplying his/her basic pay on the date of implementation by a factor of 2.57.

(d)     The minimum Pay at each Level corresponding to successive Grade Pay, from PB-2 onwards has been enhanced by a variable Index of Rationalisation (IOR) )ranging from 2.57.to 2.81 depending upon the increasing role, responsibility, and accountability. 

(e)      General recommendations on pay recommended by the Commission have been accepted without any material alteration.

iii.      Increase in Military Service Pay (MSP) of Personnel Below Officer Rank (PBOR) from Rs 2000/- to Rs 5200/- p.m would be counted only for Dearness Allowance

iv.      Rate of increment would be 3%. There will be two dates for grant of increment viz. 1^st January and 1^st July of every year, instead of existing date of 1^st July. However, an employee will be able to avail annual increment only on one of these two dates depending on the date of appointment, promotion, or grant of financial upgradation.

v.       Recommendations on Allowances (except Dearness Allowance) would be referred to a committee comprising of Finance Secretary & Secretary (Expenditure) as Chairman and Secretaries of Home Affairs, Defence, Personnel and Training etc. Till a final decision on Allowances is  taken based on the recommendations of this Committee, all Allowances would continue to be paid at existing rates in existing pay structure, as if the pay had not been revised w.e.f 1.1.2016 i.e., status quo would be maintained.

vi.      Arrears of Pay and Pensionary benefits would be paid during the current financial year.

vii.     Recommendations not relating to pay, pension and allowances and other administrative issues specific to department/cadres/posts would be examined by the concerned Ministries/Departments as per the Transaction Rules/Allocation of Business Rules.   

3.       We have not yet received the requisite resolution from Ministry of Finance regarding civilian personnel. The resolution to be issued by the MoD in respect of the Defence Personnel (Personnel Below Officer Rank) has been prepared in anticipation and placed opposite for consideration.

Sd/------------------

                                                                                      (Laxmi Balasubramanian)

SO D (Pay/Services)

15/7/16

US (P/S)                                  Sd/----------- 15.7.17

DS (AG-II)                              Sd/----------- 18/7

JS (E)                                       Sd/----------- (Ashok Dongre) 18.7.16

AS (R)                                      As proposed. 

JS (E)                                       Sd/---------- (Ashok Dongre) 20.7.16

DS (AG-II)                              Sd/-----------

US (P/S)                                  SD/------------

SO D(P/S)

SOURCE-ARIEL VIEW