"1:2200000 RATIO" LIKELY CALCULATION OF OROP & ARREARS

OROP notification dated 07.11.2015 stipulate that
1. To begin with, pension of the past pensioners would be re-fixed on the basis of pension of retirees of calendar year 2013 and the benefit will be effective with effect from 1.7.2014.
 2.Pension will be re-fixed for all pensioners on the basis of the average of minimum and maximum pension of personnel retiring in 2013 in the same rank and with the same length of service.
3.Pension for those drawing above the average shall be protected. 

So the 'minimum' and 'maximum' pension sanctioned in the calender year 2013 to each rank with same length of service are critical to calculate the OROP.

HOW TO CALCULATE THE MINIMUM & MAXIMUM PENSION?

I will make an attempt to calculate them on real time basis by an illustration of eight (A - H) X Group Havildar/Petty Officer/Sergeant with 15 years of service whose service particulars ar as given below:-

1. Pay & Pension calculation of "A":-
15.12.98. LAC (4025-60-4925) 4025
01.12.03. 4025+(60×5) =4325
15.12.03  Promoted as CPL (4150-70-5200)
15.12.03. Pay fixed as CPL - 4430
01.01.06 - 4430(70×2) =4570
01.01.06 - 6th CPC- 14310
01.01.06 - Promoted as Sgt-15040
01.07.06 -15390
01.07.07 -15750
01.07.08 -16120
01.07.09 -16510
01.07.10 -16910
01.07.11 -17320
01.07.12 -17740
01.07.13 -18170
31.12.13 - DISCHARGE
PENSION - 18170/2 = 9085/-

2.Pay & Pension calculation of "B":-
15.12.98. LAC (4025-60-4925) 4025
01.12.03. 4025+(60×5) =4325
15.12.03  Promoted as CPL (4150-70-5200)
15.12.03 -Pay fixed as CPL - 4430
01.01.06 - 4430 + (70×2) = 4570
01.01.06 - 6th CPC- 14310
01.07.06 -14640
01.07.07 -14980
01.12.07 -Promoted as Sgt -15730
01.07.08 -16100
01.07.09 -16490
01.07.10 -16890
01.07.11 -17300
01.07.12 -17720
01.07.13 -18150
31.12.13 - DISCHARGE
PENSION - 18150/2 = 9075/-

3.Pay & Pension calculation of "C":-
15.12.98. LAC (4025-60-4925) 4025
01.12.03. 4025+(60×5) =4325
15.12.03  Promoted as CPL (4150-70-5200)
15.12.03 -Pay fixed as CPL - 4430
01.01.06 - 4430 + (70×2) = 4570
01.01.06 - 6th CPC- 14310
01.07.06 -14640
01.07.07 -14980
01.07.08 -15330
01.12.08 - Promoted as Sgt - 16090
01.07.09 -16470
01.07.10 -16870
01.07.11 -17280
01.07.12 -17700
01.07.13 -18130
31.12.13 - DISCHARGE
PENSION - 18130/2 = 9065/-

4.Pay & Pension calculation of "D":-
15.07.98. LAC (4025-60-4925) 4025
01.07.03. 4025+(60×5) =4325
15.07.03  Promoted as CPL (4150-70-5200)
15.07.03. Pay fixed as CPL - 4430
01.01.06 - 4430(70×2) =4570
01.01.06 - 6th CPC- 14310
01.07.06 - 14640
01.07.07 - 14980
01.07.08 - 15330
01.07.09 - 15690
01.08.09 - Promotion as Sgt- 16460
01.07.10 - 16860
01.07.11 - 17270
01.07.12 - 17690
01.07.13 - 18120
31.07.13 - DISCHARGE
PENSION - 18120/2 = 9060

5.Pay & Pension calculation of "E":-
15.07.98. LAC (4025-60-4925) 4025
01.07.03. 4025+(60×5) =4325
15.07.03  Promoted as CPL (4150-70-5200)
15.07.03. Pay fixed as CPL - 4430
01.01.06 - 4430(70×2) =4570
01.01.06 - 6th CPC- 14310
01.07.06 - 14640
01.07.07 - 14980
01.07.08 - 15330
01.07.09 - 15690
01.07.10 - 16060
01.12.10 -  Promoted as Sgt - 16840
01.07.11 - 17250
01.07.12 - 17670
01.07.13 - 18100
31.07.13 - DISCHARGE
PENSION - 18100/2 = 9050/-

6.Pay & Pension calculation of "F":-
15.07.98. LAC (4025-60-4925) 4025
01.07.03. 4025+(60×5) =4325
15.07.03  Promoted as CPL (4150-70-5200)
15.07.03. Pay fixed as CPL - 4430
01.01.06 - 4430(70×2) =4570
01.01.06 - 6th CPC- 14310
01.07.06 - 14640
01.07.07 - 14980
01.07.08 - 15330
01.07.09 - 15690
01.07.10 - 16060
01.07.11 - 16440
01.12.11 -  Promoted as Sgt -17240
01.07.12 - 17660
01.07.13 - 18090
31.07.13 - DISCHARGE
PENSION - 18090/2 = 9045/-

7.Pay & Pension calculation of "G":-
15.07.98. LAC (4025-60-4925) 4025
01.07.03. 4025+(60×5) =4325
15.07.03  Promoted as CPL (4150-70-5200)
15.07.03. Pay fixed as CPL - 4430
01.01.06 - 4430(70×2) =4570
01.01.06 - 6th CPC- 14310
01.07.06 - 14640
01.07.07 - 14980
01.07.08 - 15330
01.07.09 - 15690
01.07.10 - 16060
01.07.11 - 16440
01.07.12 - 16840
01.12.12 -  Promoted as Sgt - 17650
01.07.13 - 18080
31.07.13 - DISCHARGE
PENSION - 18080/2 = 9040/-

8.Pay & Pension calculation of "H":-
15.01.98. LAC (4025-60-4925) 4025
01.01.03. 4025+(60×5) =4325
15.01.03  Promoted as CPL (4150-70-5200)
15.01.03. Pay fixed as CPL - 4430
01.01.06 - 4430(70×3) =4640
01.01.06 - 6th CPC- 14440
01.07.06 - 14780
01.07.07 - 15130
01.07.08 - 15490
01.07.09 - 15860
01.07.10 - 16240
01.07.11 - 16630
01.03.12 - promotion as Sgt - 17430
01.07.12 - 17850
31.01.13 - DISCHARGE
PENSION -17850/2= 8925/-

Therefore the average between 'minimum' and 'maximum'
could be the following :-
(9085+9075+9065+9060+9050+9045+9040+8925) = 72345/8 = 9043/-

The classification pay if added could increase the average marginally. We can therefore safely conclude the OROP of a Group X
Hav/PO/Sgt with 15 years of  service will be approximately 9050/- plus/minus 25/-.

A difference of 9050 - 6374 =
2676/-  in Basic Pension.

Arrears incl. DR receivable for 18 months from 01.07.14 to 31.12.15
2676 × 38.34 = 102598/-.
Arrears per instalment -102598/4 = 25650/-
Pension from 01.01.2016 with 119% DR will be - 19820/-

CAUTION: Errors and omissions expected in the above calculations.
This is just an attempt to calculate OROP.
The real time data could be different.
We need to wait for the official charts to be notified by CGDA/PCDA.

Sgt MPKaran
President
Karnataka Chapter AFVAI.

7th CPC MILITARY PAY STRUCTURE

5.2.1 The Defence Services in their Joint Services Memorandum have contended that the emoluments in the Defence Services should stand a fair comparison with what is available in the Civil Services, otherwise the Defence Services will be denied their legitimate share of the available talent pool.

 5.2.2 The Commission has devised pay matrices for civil and defence forces personnel, after wide ranging feedback from multiple stakeholders. The common aspects of the two matrices and the unique elements in the defence pay matrix are outlined in the succeeding paragraphs.

 General Approach to the Pay Matrices: Civil and Defence

 5.2.3 Pay levels have been set out in a pay matrix, separately for civilian and defence forces personnel. The Commission has evolved a fresh approach by merging the grade pay and pay bands into distinct pay levels. The approach regarding the pay levels and pay matrix has been explained in Chapter 5.1. Some of the major points in the pay matrix which have a common bearing on civilian and defence forces personnel, are highlighted below.

 5.2.4 Pay Bands and Grade Pay: Pay Bands and Grade Pays have been dispensed with and the new functional levels have been arrived at by merging the Grade Pay in the Pay Band. All the existing levels have been subsumed in the new structure.

 5.2.5 Entry Pay: The entry pay for various ranks of defence forces personnel, other than MNS Offices, has been arrived at on the same premise, as has been done in the case of civilian. As an illustration, entry pay for a Captain has been arrived at as follows:

 Entry pay in existing pay band + (Residency Period for promotion to Captain from Lieutenant x annual increment) + grade pay of the rank of Captain

= Rs.15,600 + (2 x Rs.630) + Rs.6,100 = Rs.22,960.

 5.2.6 An exception to this approach has been made in the case of Brigadiers/equivalents where pay for the rank has been arrived at as per the fitment table notified by the Ministry of Defence through its Special Army Instructions of October 2008.

 5.2.7 Fitment: The starting point of a Sepoy (and equivalent), the entry level personnel in the defence forces, has been fixed in the Defence Pay Matrix at Rs.21,700. The starting point in the existing pay structure is Rs.8,460 for a Sepoy/equivalent. The fitment in the new matrix is essentially a multiple factor of 2.57. This multiple is the ratio of the new minimum pay arrived at by the Commission (Rs.18,000) and the existing minimum pay (Rs.7,000). The fitment factor is being applied uniformly to all employees. It includes a factor of 2.25 to account for DA neutralisation, assuming that the rate of Dearness Allowance would be 125 percent at the time of implementation of the new pay as on 01.01.2016. The actual raise/fitment being recommended by the Commission is 14.29 percent. An identical fitment of 2.57 has also been applied to the existing rates of Military Service Pay (MSP), applicable to defence forces personnel only.

 5.2.8 Rationalisation: An ‘index of rationalisation’ has been applied while making enhancement of levels from Pay Band 1 to 2, 2 to 3 and 3 onwards on the premise that role, responsibility and accountability increases at each step in the hierarchy. At the existing PB-1, this index is 2.57, increasing to 2.62 for personnel in PB-2 and further to 2.67 from PB-3. Recognising the significantly higher degree of responsibility and accountability at levels corresponding to Senior Administrative Grade, the entry pay is recommended for enhancement by a multiple of 2.72. The same multiple is also being applied at the HAG and HAG+ levels. At the apex level the index applied is 2.81 and for the Service Chiefs/Cabinet Secretary the index has been fixed at 2.78.

 5.2.9 As noted in Chapter 5.1, dealing with the Civilian pay matrix, marked increase was accorded to directors in the GP 8700 at the stage of implementation of the VI CPC Report. Accordingly in the matrix the rationalisation index applied at this level has been fixed at 2.57, lower than the index of 2.67 applied to existing PB-3 officers. A similar formulation has necessarily to be applied to the defence pay matrix since the Lieutenant Colonels also received a marked increase in their pay level, post VICPC recommendations. Since the defence services have an additional level in the existing PB-4 and there is a common pay level for SAG level officers in Defence and Civil, the Commission has applied the rationalisation index of 2.57 also to the officers in the rank of Colonel and Brigadier and their equivalent.

 5.2.10 MACP: The Commission is not recommending an increase in the number of MACPs. For defence forces personnel this will continue to be administered at 8, 16 and 24 years as before. In the new pay matrix defence forces personnel will move to the immediate next pay level in the hierarchy. Fixation of pay will follow the same principle as that for a regular promotion in the pay matrix.

 5.2.11 Equivalence in Pay Levels for Certain Levels : The starting pay level for officers at Group `A’ entry level is identical at Rs.56,100 in the case of both civilian and defence service officers. Similarly the pay of the Major General and Joint Secretary and equivalent officers and those above [viz., Lieutenant General (in HAG, HAG+, Apex) and Chief of each defence service] has been kept identical with their civilian counterparts. Identical pay levels has been devised for JCO/ORs and their civilian counterparts corresponding to the existing pay bands and grade pay.

 Defence Pay Matrix: Some Distinct Aspects

5.2.12 For defence forces personnel, there are two separate matrices, one for the Service Officers and JCO/ORsand anotherfortheMilitaryNursingOfficers. Theexistingranks among Officers and JCO/ORs in the Defence Forces personnel has been kept in view while devising the matrix. There are a number of common strands in the Civil and Defence Pay Matrices, indeed the principles and philosophy on which they are based are identical. In the case of the pay matrix for Military Nursing Officers (MNS), the Commission has adopted an approach that blends elements of the principles and philosophy adopted in devising the pay matrices with the existinguniqueness in the paystructureof MNS officers. Some of theunique elements that merit mention in the defence Pay Matrix have been outlined below:

 5.2.13 Commencement of Matrix: The commencement of the Defence Pay Matrix for combatants corresponds to the existing GP 2000, which is the induction level for Sepoys and equivalent.

 5.2.14 More Compact: The Pay Matrix designed for the defence forces personnel is more compact than the civil pay matrix keeping in view the number of levels, age and retirement profile of the service personnel. For example, the term of engagement of various ranks of JCOs/ORs are fixed and of shorter duration. Service Officers on the other hand are given time scale promotion upto the rank of Colonel and Equivalent and will therefore move, from one pay level to another, in accordance with the stipulated time frame.

5.2.15 Pay Levels Unique to Defence Forces Personnel: Pay levels corresponding to the existing GP 3400, GP 5700, GP 6100, GP 6600, GP 7600, GP 8000, GP 8400, GP 8700, GP 8900 and GP 9000 are unique to defence forces personnel. The minimum pay corresponding to each of these pay levels takes into account the normative residency period of the various ranks of officers.

5.2.16 The Commission emphasises that the pay structure designed by it for the defence forces personnel has been done keeping in view (a) some of the aspects in their rank structure unique to them and (b) pay structure is not intended to determine the status of the personnel vis-à-vis their counterparts on the civil side.

Report of the Seventh CPC

Pay Matrix (Defence Forces Personnel - Except MNS)

Pay Band	9 300-34800
Grade Pay	3 400	4 200	4 600		4 800	5 400
E ntry Pay (EP)	1 2700	1 3500	1 7140		1 8150	2 0280
Le vel	5A	6	7		8	9
Index	2 . 6 2	2 . 6 2	2 . 6 2		2 . 6 2	2 . 6 2
1	33300	35400	44900		47600	53100
2	34300	36500	46200		49000	54700
3	35300	37600	47600		50500	56300
4	36400	38700	49000		52000	58000
5	37500	39900	50500		53600	59700
6	38600	41100	52000		55200	61500
7	39800	42300	53600		56900	63300
8	41000	43600	55200		58600	65200
9	42200	44900	56900		60400	67200
10	43500	46200	58600		62200	69200
11	44800	47600	60400		64100	71300
12	46100	49000	62200		66000	73400
13	47500	50500	64100		68000	75600
14	48900	52000	66000		70000	77900
15	50400	53600	68000		72100	80200
16	51900	55200	70000		74300	82600
17	53500	56900	72100		76500	85100
18	55100	58600	74300		78800	87700
19	56800	60400	76500		81200	90300
20	58500	62200	78800		83600	93000
21	60300	64100	81200		86100	95800
22	62100	66000	83600		88700	98700
23	64000	68000	86100		91400	101700
24	65900	70000	88700		94100	104800
Pay Band	5 200-20200
Grade Pay	2000	2400	2800
E ntry Pay (EP)	8 460	9 910	1 1360
Le vel	3	4	5
Index	2 . 5 7	2 . 5 7	2 . 5 7
1	21700	25500	29200
2	22400	26300	30100
3	23100	27100	31000
4	23800	27900	31900
5	24500	28700	32900
6	25200	29600	33900
7	26000	30500	34900
8	26800	31400	35900
9	27600	32300	37000
10	28400	33300	38100
11	29300	34300	39200
12	30200	35300	40400
13	31100	36400	41600
14	32000	37500	42800
15	33000	38600	44100
16	34000	39800	45400
17	35000	41000	46800
18	36100	42200	48200
19	37200	43500	49600
20	38300	44800	51100
21	39400	46100	52600
22	40600	47500	54200
23	41800	48900	55800
24	43100	50400	57500

Military Service Pay (MSP)

5.2.22 The defence forces personnel, in addition to their pay as per the Matrices above, will be entitled to payment of Military Service Pay for all ranks up to and inclusive of Brigadiers and their equivalents. The Commission recommends an MSP for the four categories of Defence forces personnel at Rs.15,500 for the Service Officers, Rs.10,800 for Nursing Officers, Rs.5,200 for JCO/ORs, and Rs.3,600 for Non Combatants (Enrolled) in the Air Force per month. MSP will continue to be reckoned as Basic Pay for purposes of Dearness Allowance, as also in the computation of pension. Military Service Pay will however not be counted for purposes of House Rent Allowance, Composite Transfer Grant and Annual Increment.

17 Without moderation upwards, by use of formula, the minimum pay for a Captain of MNS would be Rs.57,280, which would be very close to Rs.56,100 the minimum pay at the level of an MNS Lieutenant.

Annex to Chapter 5.2

Annex: L evels as per the Pay Matrix
Existing Pa y Bands	Existing levels o f Grade Pay	Available for*	New Levels
PB-1	1800	C	1
	1900	C	2
	2000	C,D	3
	2400	C	4
	2800	C,D	5
PB-2	3400	D	5A
	4200	C,D	6
	4600	C,D	7
	4800	C,D	8
	5400	C	9
PB-3	5400	C,D,M	10
	5700	M	10A
	6100	D	10B
	6100	M	10B
	6600	C,D,M	11
	7600	C	12
PB-4	7600	M	12
	8000	D	12A
	8400	M	12B
	8700	C	13
	8700	D	13
	8900	C	13A
	8900	D	13A
	9000	M	13B
	10000		14
HAG			15
HAG+			16
Apex			17
Cabinet Secretary, Defence Chiefs			18

*C: Civil; D: Defence; M: Military Nursing Service (MNS)