AGENDA POINTS FOR MEETING OF AIEWA

       List of anomalies, arising out of implementation of OROP and 7^th CPC.

There are very serious anomalies in all types of pensions of Honorary Commissioned Officers/ Junior Commissioned Officers and Other Ranks and equivalence ranks of Navy and Air Force on implementation of One Rank One Pension(OROP) and 7^th CPC which are not rectified so far. List of anomalies are as under. It requested that these points may please be included for AGM/GBM and after passing are to be forwarded to MoD for consideration:-

(A)   New points:-

 1.     BENEFIT  OF  ACP/MACP  TO  POST  2006  RETIREES:- Benefit of ACP/MACP was not given to the Defence retirees those who were discharged between 01-01-2006 to 30-08-2008 as per 6^th CPC orders. But after the Hon’ble Supreme Court Order now implementation order for Defence personals is issued wef. 01-01-2006 instead of 01-09-2008, Refer Army Implementation order vide GoI, MoD letter No. 14(1)/99-D(AG) dated 25 July 2018 regarding Assured Career Progression Scheme(MACPS) for PBORS of Army. So far no orders/ Circulars are out for EX-Servicemen of Army/Navy/Air Force.

 2.     CALCULATION  OF ‘X‘ Gp PAY FOR DIPLOMA HOLDERS FOR OPTION-2:-

As OROP was inclusive of elements of MSP and X Group Pay if any effective from 01-07-2014 which was multiplied by 2.57 to arrive at the basic pension as applicable to 7^th CPC under Option-2. The quantum of MSP for all PBOR except HCO’s under 6^th CPC was 2000/- and X Gp pay for all PBOR if any were uniformity fixed at 1400/-.There were no division in the X Gp trades under 6^th CPC.

The revision of the above elements were carried out using MF 2.57 in such a manner that the resultant figure equals the figures approved by 7^th CPC.(MSP 2000 X 2.57=5200/- and Group Pay 1400 X 2.57= 3600/-). As per 7^th CPC Pay Rules for Army/Navy/ Air force X Group Pay have two categories of Diploma holders and Non- Diploma holder. A sum of 6200/- pm is sanctioned for Diploma holders recognized by AICTE and for Non- Diploma holders it is 3600/- pm so there is a difference of Rs.2600/- in basic Pay and half of it that is 1300/- pm should be counted towards Pension but this is not counted towards Option-2. This anomaly should be rectified at the earliest.

 3.     CONTINUOUS DOWN GRADATION OF  FINANCIAL  STATUS  OF  HCO’S:- Pay scales of Honorary Commissioned Officers is downgraded continuously during past Pay

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Commissions thus HCO’S are at great loss for Pay and Pensionary matters. Pay scales of HCO,s by virtue of length of service used to be more compared to Regular Commissioned Officers. Details are as under from 3^rd CPC:-

          CPC                    RANK       RCO             HCO                  Remarks

  3^rd CPC                 Capt        1020/-        1100/-      Much higher than Regular Officers.

 3^rd CPC                  Lt             830/-        1000/-       Much higher than Regular Officers.

 4^th CPC                 Capt         2800/-       3400/-       HCapt was drawing equal to Major.

 4^th CPC                 Lt             2300/-       3300/-        Much higher than Regular Officers.

5^th CPC                 Capt          9600/-      10850/-        Much higher than Regular Officers.

5^th CPC                 Lt              8250/-      10500/-        Much higher than Regular Officers.

6^th CPC                Capt          24700/-     20190/-        Down gradation of HCO’s.

6^th CPC                Lt              21000/-      19530/-      Down gradation of HCO’s.

7^th CPC                Capt          65000/-       61200/-     This figure of HCO’s is for Post 2016.

7^th CPC                Lt              56100/-       56100/-     This figure of HCO’s is for Post 2016.

Note:- Under 7^th CPC there is No concept of Minimum Guaranteed Pension, thus newly retired Hony Lt’s and Hony Capt’s are getting less pension than their counterparts who retired in 3^rd,4^th,5^th,6^th CPC, thus Honorary Commissioned Officers are further down graded. As per e-ppo’s of Post 2016 retirees HCO’s are drawing less pension than Pre-2016 as under:-

Rank             QS                             Post-2016                      Pre-2016            Loss

Hony Lt        28 and above             35800/-                          41352/-           5552/-

Hony Capt   28 and above             39300/-                           43716/-          5416/-

4.     POST 2016 JCO’S ARE DRAWING LESS PENSION:- After implementation of 7^th CPC due to less entry pay and due to common pay scales almost all Post- 2016 JCO’s are drawing less pension than Pre- 2016. This anomaly is very serious. Rates of Pre-2016 and Post-2016 retirees are as under:-

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Rank     Group          QS               Post-2016                        Pre-2016            Loss

Sub           Y       28 to 29 yrs           ----                                31529/-

Sub           Y       29.5 yrs                  ----                               32023/-

Sub           Y       30 and above      26400/-                          32614/-             6214/-

Sub Maj    Y      32 yrs                  28600/-                          33526/-             4920/- 

Note:- Same way Post- 2016 retirees Nb Sub/Sub/ Sub Major and equivalent ranks of Navy and Air Force are also getting less pension than Pre-2016.

(B)  OROP points not yet solved:-

                                                ONE RANK ONE PENSION (OROP).

1.     Rounding of Qualifying Service:- Refer Para 10 and 11 of PCDA(P) Circular No.555 dated 4^th Feb, 2016 regarding Rounding of Qualifying Service. Qualifying Service is not uniform as per this Circular for Pre 22-04-1960, Post 22-04-1960 and Post 28-06-1983, so there are 03 Pensioners categories created now with same Rank, same Group and same length of service. While calculating the length of qualifying service for all types of pensionary benefits a fraction of a year equal to 03 months and above but less than

 09 months is treated as one half (1/2) year period, and 09 months or more but less than a year is treated as a completed one year for determining the amount of pension w.e.f. 28-06-1983. Prior to 28-06-1983, the broken period of service of 180 days or more is to be treated as one half (1/2) year wef. 22-04-1960. In view of above, if qualifying service has been mentioned as 17 years 10 months in PPO/Corr. PPO, it should be rounded up to 18 years for post 28-06-1983 retirees, 17.5 years for pre- 28-06-1983 up to 22-04-1960 and 17 years for pre- 22-04-1960 retirees. So likewise it is not One Rank One Pension for pre 30-06-2014.

 2.     Terms of Engagement:- Refer Para 7 and Appendix- X of PCDA (Pension) Circular No. 555 dated 4^th Feb, 2016 regarding Term of Engagement in case of HCO’s/ JCO’s/ OR’s of Army/Navy/Air Force. The Terms of Engagement is different in three Services. Terms of Engagement implies “Maximum Qualifying Service for grant of Service Pension”. Terms of Engagement from time to time keeps changing. It should be uniform across the three sister services.

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3.     Anomalies in the Service Pension Tables of Regular and TA  Subedars:- Refer Service Pension table No. 7 and 8 of Circular No. 555, as per these tables Service

                                                      

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Pension for the rank of Subedar Regular (Army/Navy/Air force) is less than the Subedar of Territorial Army (TA) as under:-

Rank              QS                Group              Regular                  TA

Subedar        28 to 29                  Y                        12268/-                  12660/-

Subedar        29.5                         Y                        12460/-                  12660/-

4.     Reservist Pensioners:- Refer Para 4, Sub Para 4.2 of PCDA(Pension) Circular No. 555 dated 4^th Feb, 2016 regarding Non- Applicability of pension to Reservist Pensioners. In OROP this time Service Pension tables are prepared from 0.5 years onwards for all the ranks wef. 01-07-2014 except for Reservist Pensioners. Qualifying Service of a Reservist is always 10 years or more. There was no increase in the Service Pension of Reservists as per OROP. Their Pension was 3500/- in 6^th CPC and now it is only 9000/- as per 7^th CPC. It is suggested that Reservist Pension should be increased to the QS of 10 years for ‘Y‘ Group Sepoy ie. 6188/- as per OROP and if service is more than 10 years than it should be as per the table of Sepoy of ‘Y’ group as per Circular No. 555.

                                                  

5.     Base /Calendar Year:- Refer Para -3, sub Para -i of GoI, MoD, Dept. of Ex-Servicemen welfare letter No. 12(1)/2014/D(Pen/Pol)-part-II dated 7^th Nov, 2015 regarding Base/Calendar year 2013 for Re-fixing pension for OROP. By doing this we are at loss by one increment.  Base/Calendar year should be 2014 instead of 2013.

 6.     Average of Minimum and Maximum Pension:- Refer Para -3, sub Para -ii of GoI, MoD, Dept. of Ex-Servicemen Welfare letter No. 12(1)/2014/D(Pen/Pol)-part-ii dated 7^th Nov, 2017 regarding Re-Fixation of all pensioners on the basis of the average of Minimum and Maximum pension of personnel retired in 2013. Pensions of all Pre- 30-06-2014 pensioners should be Re-fixed on the basis of Maximum Pension of personnel retired in 2014 instead of 2013 for OROP.

 7.     Seniority in the ranks not maintained:- Refer any tables of PCDA (Pension) Circular No. 555 dated 04^th Feb, 2016 for JCO’s/OR’s seniority of the ranks is not at all  maintained. In some cases pension is same from 15 years to 28 years of Qualifying Service. Pension tables of all JCO’s / OR’s should be again re-computed for arriving at correct pension.

                                                      

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8.     Equalization of Pension after five years:- Refer Para-3, sub Para-V of GoI, MoD, Dept. of Ex-Servicemen welfare letter No. 12(1)/2014/D(Pen/Pol)-Part-ii dated 7^th Nov, 2015 regarding equalization of pension after five years. True meaning of OROP is that a pensioner of same Rank, same Group and same length of Service should draw same pension in three sister services. This is only possible when pension is equalized every year.

 9.      ACP-I/II/III benefit:- Refer Para-11, sub Para- a), b) and C) of PCDA(Pension) Circular No. 555 dated 4^th Feb, 2016 regarding grant of ACP benefits. As per above Circular Hony Naik, Hony Havildar and Hony Naib Subedar have separate tables for all types of Pensions, where as for Post-2006 retirees if ACP is granted to them their pension is revised as per the tables of Naik, Havildar and Naib Subedar. ACP I/II/III benefit should also be extended to all Pre- 2006 Hony Naiks, Hony Havidars and Hony Naib Subedars as like ACP Naiks / ACP Havildars and ACP Naib Subedars.

 (C)  7^th CPC points not yet solved:-

                                            7^th CENTRAL PAY COMMISSION

1.       Incorrect calculations of Entry Level Pay of JCO’s and equivalence in Navy and Air Force.

 a)    The existing system of Pay Band and Grade Pay of 6^th CPC has been replaced with separate Pay Matrices for Defence, Military Nursing Service and Civilians personnel in 7^th CPC from 01.01.2016 onwards.

 b)    Fixation of Pay of each employee in the new Pay Matrix as on 01.01.2016 has been revised by multiplying his/ her basic pay (Pay in the Pay Band + Grade Pay) by a factor of 2.57.

 

c)       In each Pay Level (Rank Level) a MF of 2.57 for Havildar and below, 2.62 for JCO,s and 2.67 for Hony Lt to Brigadier was applied on Basic Pay + Grade Pay of 6^th CPC to determine Entry Level Pay.

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d)    Entry Pay to any pay band could either be through an upward movement from lower pay band or through direct entry. While pay of a person moving from a lower pay band to a higher one on promotion would be regulated by the pay fixation formulation prescribed (pay was fixed at the minimum of the pay band plus grade pay).

 e)     Refer Para 5.1.19 for rationalization applied in Present Pay structure is at Table No. 4 (Copy enclosed) of 7^th CPC report.

 f)      Prior to 7^th CPC there used to be separate scale for “X” and “ Y” group of same ranks of JCO’s and even separate scales for the same equivalence rank of Army, Navy and Air Force also.

 g)    7^th CPC brought in new formula of Common Pay Scales for each Pay Level (Rank Level) for all the “X” and “Y” Groups.

  h)    For Entry Level Pay there is a loss to JCO’s in calculation with MF of 2.62 on minimum pay level awarded (copy attached)

 i)       Real time loss in calculation of Entry Level Pay for JCO’s is as under:-

                        RANK                             Group                 Entry Pay             LOSS

   N Sub/ CPO/ JWO                   X / Y             41100 – 35400 =       5700/-

   Sub/ MCPO-2/ WO                 X / Y             46200 -  44900 =      1300/-

   Sub Maj/ MCPO-1/ MWO      X / Y             49000 -  47600 =     1400/- 

Note:- Highest entry level of X Group pay + grade pay of 6^th CPC is to be taken for calculation of entry level.                 

2.     Revision of Pension as per First formulation (Option-1):-                        Refer Para-4 of GoI, MoD, Dept.of Ex-Servicemen Welfare letter No.17(01)/2017(02)/D(Pension/Policy) dated 5^th Sept,2017 regarding revision of pension of pre-2016 as per Formulation-1 (Option-1) and Para-3 of PCDA(Pension) Circular No. 585 also for Formulation-1. But as per Para- 4.1 of PCDA(Pension) Circular No. 570 pensions of all pre 2016 was revised by multiplying the Basic

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Pension (before Commutation) / Basic Family Pension (exclusive of Dearness Relief) as had been drawn as on 31-12-2015 by 2.57 to arrive as revised pension as per Formulation-2 (Option-2). So benefit of OROP was given in Option-2, but as per the Annexture-1 of PCDA (Pension) Circular No. 585 and PCDA(P) Circular No. 608 dated 26-10-2018 for Commissioned Officer/JCO’s/OR’s there is no benefit to almost 99% and the benefit of OROP will not be given to pre- 01-07-2014 retirees. In view of above it is suggested that instead of notionally computing the pension as per 6^th CPC scales it should be revised taking the OROP scales / 6^th CPC scales as drawn on 31-12-2015 like it was done as per PCDA (Pension) Circular No. 570 for Formulation-2 (Option-2).

                                            

                                                                             Complied by

                                                                              Nar Singh Dass

                                                                             Hony S/LT (MCPO-1)

                                                                 General Secretary (Pension)

                                                     All India Ex-Servicemen Welfare Association.

Encl:- 1) Table 4 : Rationalization Applied in the 6^th CPC Pay Structure.

          2) Details of incorrect calculation of Entry Level Pay for JCO’s.

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