Friday, July 3, 2009

PDCA Pensions....Circular

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The Chief Accountant, RBI, Deptt. of Govt. Bank Account Central
C-7 IInd Floor Bandre Kurla Complex, P.B. No. 8143 Bandre East,

All CMDs of Public Sector Banks
CMD of HDFC Bank
Military and Air Attache, Indian Embassy Kathmandu Nepal.
The Defence Pension Disbursing Officers.
The Treasury officers.
The Pay and Accounts Office.
Pay and Accounts Office, Government of Maharashtra, Mumbai.
The Post Master Kathua (J & K), Camp Bell Bay (Andaman &

Implementation of Government’s decision on the recommendations
of the Sixth Central Pay Commission – Revision of Pension of Pre
2006 Armed Forces Pensioners / Family Pensioners.

Reference:-GOI, MOD letter No. No. 17(4)/2008(1)/D(Pen/Policy) dated 11.11.2008 and this Office Circulars No. 397 dated 18.11.2008, 398 dated 18.11.2008 and No. 401 dated 18.12.2008

Annexure – II of the Ministry of Defence letter No. 17(4)/2008(1)/D
(Pen/Policy) dated 11.11.2008 which was modified/substituted vide Ministry of Defence letter No. 17(4)/2008(1)/D (Pen/Policy) dated 11.12.2008 is further substituted by enclosed Annexure II vide MOD letter No. 17(4)/2008(1)/D
(Pen/Policy) dated 20.01.2009(copy enclosed), which is self explanatory.

In Annexure-III, Table - 2 of MOD letter dated 11.11.2008, the rate of
family pension in respect of Nb Subedar Group ’A’/’X’ and Subedar Group ’A’/’X’
Nb Sub Group “A”/”X”
Subedar Group “A”/”X’”

The words and figures “under Para 5.1” as appearing below the Table but
above the Notes of Annexure –I
(Pen/Services) dated 11.11.2008 may be deleted as it has no relevance to Para
5.(Para 5.1.not in existence)

It has come to the notice that some of the PDAs while consolidating the Pension/family pension under Annexure –I to MOD letter dated 11.11.2008 are
not stepping up the pension/family pension vide Annexure –II and Annexure-III
to MOD letter where it is beneficial than the pension under Annexure -I in
respect of the commissioned officers / PBOR. They are resorting only to the
consolidation of pension as per the Annexure –I. Such action on the part of the
PDAs, in particular to Banks, is not in accordance to the Government Orders,
leads to complaints from the Pensioners/ Family Pensioners and has been viewed
seriously by the Government as it is affecting the morale of the Ex Service men.
Detailed instructions in this regard already exist in Para 6 of this office circular
No. 397 dated 18.11.2008.
However, it is once again reiterated that the PDAs may invariably adhere
to the following steps while revising the pension/family pension with effect from
First, determine the basic pension from the records held and consolidate
as per Annexure –I to MOD letter No.17 (4)/2008(1)/D (Pen/services) dated
Thereafter check the pension so consolidated against the minimum
pension authorised under the protection clause as in Annexure – II in respect of
the commissioned officers and Annexure –III in respect of Personnel Below
Officers Rank with reference to rank last held and qualifying service. The
pension/family pension as per Annexure –II or Annexure-III as the case may be,
if beneficial, is to be paid with effect from 1.1.2006.
Lt General holding appointment of Army Commander and Vice Chief of the
Army Staff in Army and equivalent rank in Navy and Air Force were granted
higher rate of pension on their retirement after 1.3.1978.Pension Payment Order
(PPO) in their respect do/do not indicate the specific appointment they held on
the date of retirement. However, while revising their pension on implementation
of Fifth CPC, the Corrigendum PPO in each case indicate the appointment held by
the Lt General as Army Commander or Vice Chief of Army Staff (VCOAS).PDAs
are therefore, requested to look into their records and revise the pension of
Army Commanders/VCOAS accordingly vide Annexure –I read with Annexure –II
to MOD letter 11.11.2008 as now substituted. Where the PDAs are not able to
locate the Corr PPO revising pension for Army Commander/VCOAS with effect
from 1.1.1996, in their record, the officer may be requested to provide his copy
of PPO(Photocopy may be retained by the Officer) and pension may be revised
and simultaneously the case may be referred to the Pension Sanctioning
authority concerned for confirmation of the revised rate of pension with effect
from 1.1.2006.
In Annexure-I of MOD letter dated 11.11.2008, consolidated rate of
pension for basic pension of above Rs. 13000/- but less than Rs. 15000/- have
not been indicated due to the fixed scale of pension. In cases where existing
pension is more than Rs. 13000/- the same shall be consolidated as per
provision of Para 4 of MOD letter dated 11.11.2008.


Further, in some cases the quantum of pension indicated in Annexure –III
to MOD’s letter No.17 (4)/2008(1)/ D (Pen/Policy) dated 11.11.2008 as
circulated vide this office Circular No. 397 dated 18.11.2008 quoted under
reference, in respect of Naik and Havildar having less qualifying service than
their full terms of engagements plus admissible weightage works out to be less
as compared to the one shown for the rank of a Sepoy. This is due to higher
weightage of 10 years admissible to a Sepoy as compared to the rank of Naik
and Havildar, the admissible weightage for whom is comparatively less viz. 8
years and 6 years respectively. Therefore, where even if each of them have
rendered equal number of years of actual qualifying service, the qualifying
service for pension with weightage in the case of Sepoy will be more by 4 years
as compared to Havildar and by 2 years as compared to Naik. The prorata
reduction in the quantum of admissible pension will thus be more in the case of
Havildar by 4 years and 2 years for Naik as compared to the Sepoy even if they
render equal number of actual qualifying service.
It is further clarified that the said Annexure-III is not the ultimate
determinator for the entitlement of pension and in case the revised pension as
per Annexure –I to the MOD’s letter dated 11.11.2008 happens to be more
beneficial than the one indicted in the Annexure -III ibid, more beneficial
pension will be payable. However, in case the pension consolidated as per
Annexure –I read with para 4 of MOD letter dated 11.11.2008 is less than the
amount indicated in Annexure –III, the pension protection as indicated in these
tables will be given. The rate of pension in Annexure –III is protective and not
the entitlement.

Appendix ‘A’ of Circular No. 397 dated 18.11.2008 has been slightly
modified. Now the Pay Bands in respect of PBOR and Commissioned Officers
introduced in 6th CPC with effect from 1.1.2006 are also included in this
Appendix ‘A’ for information. The modified Appendix “A” is enclosed for
information of all concerned.

It is observed that during implementation of Ministry of Defence letter
dated 11.11.2008 (Circular NO 397 dated 18.11.2008), several queries are being
received from various corners.
Therefore,the following further clarifications/instructions are issued for the smooth implementation of Ministry of Defence letter on the subject:-

As per existing rule, pension of TS Naik/Hony NK and Hony Havildar is
Re 1/- less than pension admissible for NK and Havildar for the same length of
qualifying Service and group of pay in which he was last paid respectively. It is
therefore, clarified that the rate of pension shown in Annexure III (modified
parity of pension) may be reduced by Re 1/- while comparing revised pension for
TS Naik, Hony Naik and Hony Havildar between Annexure –I and Annexure-III –
Table 1.

Havildar granted Hony rank of Nb Subedar and retired prior to 1.1.96 are
drawing consolidated pension taking into account the additional pension of
Rs 100/- pm with effect from 1.1.1996 as per MOD letter dated 14.07.1998.The
scheme of improvement in pension of PBOR introduced with effect from 1.1.2006
vide MOD letter No.14 (3)/2004-D(Pen/Sers) –Vol –III dated 1.2.2006 and No.
14(3)/2004-D(Pen/Sers) –Vol V dated 2.5.2006 was not beneficial to Havildar


granted honorary rank of Naib Subedar. However, Havildar retired on or after
1.1.96 and granted Hony rank of Naib Subedar and who are in receipt of
additional pension of Rs 100/-pm with pension for Havildar, during revision of
their pension as per orders of Improvement of Pension of PBOR this additional
pension of Rs 100/- is included in RCP shown in table No.6, 18 and 24 of Circular
No.350 dated 19.5.2006. Thus the pension of Havildar granted Hony Nb Sub
whether retired prior to 1.1.96 or on or after 1.1.96, their revised pension as per
orders of Improvement in Pension of PBOR i.e. Circular No.350 may be
consolidated under Annexure –I of MOD letter dated 11.11.2008. Neither further
additional pension of Rs 100/- will be taken for consolidation in such cases nor
will it be paid further in addition to the consolidated as per Annexure I or
stepped up pension where rate of pension is beneficial in Annexure – III.

PBOR discharged prior to 1.6.1953 may be equated to PBOR of “Y” group
as there were no groups prior to 01.06.53. Therefore revised pension as in
Annexure –III in respect of those PBOR who retired prior to 01.06.53 may be
treated equivalent to Gp ‘Y’.

An Artificer rank of the Navy will be treated in Gp ‘X’ of that rank.

For the purpose of modified parity as per Annexure – III, Gp ‘V’ in Air
Force and Naval Aviation and Sub Marine Sailors other than those on Gp ‘A’ rate
of pay in Navy, will be treated as Gp ‘Y’ of that rank and service.
(vi) Certain ranks and their abbreviated form as indicated in the PPOs are
given in this office Circular No. 362 dated 01.02.2007.The alternative names as
well as connected abbreviation are given below:-
Rank Also Known As
Sepoy Craftsman(Cfn),Rifleman(Rfn),Sapper(Spr),Guardsman
(Gdsm),Signalman, Para Trooper (PTR), Recruit
(Rect),Gunner(GNR),Pioneer (PNR), Sowar (SWR),
Grenadier(GDR) etc Lance Naiks are also Sepoy.

Naik Lance Dafadar or NK or L/Dafadar

Havildar Dafadar, Hav, Dfr

Nb Subedar Jamadar

Subedar Risaldar

Subedar Major Risaldar Major

(vii) In cases where Armed Forces Officers/Personnel Below Officer Rank died
in service or retired and died later after 1.1.1999, in their case Ordinary Family
Pension at enhanced rate is payable to the family member. In such cases
enhanced rate of Ordinary Family Pension is to be consolidated under Annexure
–I only and be payable upto the period notified in the PPO.
All the Pension Disbursing Authorities are requested to intimate the
progress of consolidation/Revision of Pension/Family Pension as on 31.01.2009
in the enclosed proforma as Appendix “B”. In the case of Banks, the Paying
Branches of Bank shall render the progress report through their Link Branch /
Zonal Office (LHO in case of SBI). The Link Branches will consolidate the report
for the Paying Branches under their jurisdiction and Zonal Offices will consolidate
the progress report for the Link Branches under their control and submit the
report to the Shri D C Hansda, IDAS, Dy. CDA (P), Group Officer Audit
Section, Office of the PCDA (P), Draupadi Ghat, Allahabad by
28.02.2009.Thereafter, progressive monthly report may please be
rendered by the end of the month to the nominated officer indicated
11. This circular has been uploaded on PCDA (P) website for disseminated across the defence pensioners
and PDAs.
No. Grants/Tech/0165-VIII
Dated: 02.02.2009
Jt. C.D.A. (P)
Copy to :-
Director General Re- Settlement
All Record Offices/Regiment. Corp.
Bureau of Sailors, Cheetah Camp, Mumbai.
Air Force Record, Dhaula Kunwa, Delhi Cantt.
Rajya Sainik Welfare and Re settlement Boards
Ex Servicemen league.

All Defence Pensioners Associations.

As the pensioners/family pensioners might not be aware about the precise reasons
leading to the stated variation in the quantum of pension as shown in Annexure –III in the case of Naik and Havildar vis a vis Sepoy. It is requested that the position as brought out in Para 7 above may be suitably explained to the Naik/Havildar pensioners. It may be clarified to them that the said Annexure – III is not the ultimate determinator for the entitlement of pension and in case the revised pension as per Annexure –I to MOD letter dated 11.11.2008
happens to be more beneficial than the one indicated in Annexure –III ibid, more beneficial pension will be payable.

Consequent upon the implementation of recommendations of Sixth CPC, the
enhanced rate of ordinary family pension shall now be payable for a period of ten years, without any upper age limit from the date following the date of death of the personnel, to the family of a personnel who dies in service. These provisions will, however, not apply in cases where the period of seven years for payment of enhanced family pension has already been completed as on 01.01.2006 and the family was in receipt of normal rate of ordinary family pension on that date. There will be no change in the period for payment of enhanced family pension to the family in the case of death of a pensioner i.e. 7 years from the date of

death or till attaining the age 67 years whichever is earlier. Where, however family pensioner
was in receipt of Enhanced rate of Ordinary Family pension on or after 01.01.2006
consequent upon death of Armed Forces Personnel in service he/ she may be advised to
contact his/ her Record Office in the case of a PBOR and CDA (O) in the case of officers to
refer his/her case for enhancement of period of payment by 3 years through a Corrigendum
PPO to his/her Pension Disbursing Authority.
The Dy. Secretary, Govt. of India, Ministry of PPG & P (Deptt. of P & PW), Lok Nayak
Bhawan, New Delhi.
9 Director (Pensions), Govt. of India, Ministry of Defence D(Pen/Sers), Sena Bhawan,
Wing ‘A’ New Delhi.
10. Army HQrs AG’s Branch, PS-4(b) DHQ, PO New Delhi – 110011.
11. AHQ GS Branch, TA Directorate, DHQ PO New Delhi – 110011.
12. Naval HQrs, PP & A, DHQ PO New Delhi.
13. DPA, Vayu Bhawan, New Delhi – 11.
14. Air HQrs Ad PP & P – 3, West Block-VI, R. K. Puram, New Delhi – 110066.
15. Shri A. K. JENA, IDAS, Dy. CGDA(AT-II), O/O the CGDA, West Block-V, R. K.
Puram, New Delhi – 110066.
16. PCDA(Navy) No.-1, Cooperage Road, Mumbai – 400039.
17. CDA(AF), West Block-V, R. K. Puram, New Delhi – 110066.
18. JCDA(AG) Subroto Park, New Delhi – 110010.
19. Director of Audit, Defence Service, New Delhi
20. All Addl CsDA/Jt. CsDA in Main Office.
21. All GOs in Main Office.
22. The OI/C, G-1(M), AT(ORs)-Tech. & G-1/Civil (Tech.)
23. All SAOs/AOs/AAOs/SOs(A) in Gts/Ors Complex.
24. The OI/C, EDP Manual.
25. The OI/C, EDP Centre.
26. Defence Pension Liaison Cell.
27. All Sections in Main Office.
28. Spare copies in file No. Gts/Tech/0148, 148, 0162 & 0158
29. OIC,G -2 Section
30. OI/C, G - 3 Section.
31. OI/C, G - 4 Section.
32. OI/C Grants Revision Cell
33. OI/C O & M Cell
34. OI/C Complaint Cell
35. The OI/C, Reception Centre
36. The OI/C, EDP Centre (Website)
37. The OI/C, DPTI
38. Spare

Jt. C.D.A. (P)

No. 17(4)/2008(1)/D (Pen/Policy)
Government of India
Ministry of Defence
Department of Ex-Servicemen Welfare
New Delhi, Dated: 20th January, 2009.
The Chief of the Army Staff
The Chief of the Naval Staff
The Chief of the Air Staff
The undersigned is directed to refer to Annexure-II to this Ministry’s letter No.
17(4)/2008(1)/D (Pen/Policy) dated 11.11.2008 as amended vide this Ministry’s letter
of even number dated 11.12.2008 on the above subject matter and to state that in
the said Annexure-II, pension and family pension in respect of Colonel & Brigadier is
higher than that of Major Generals and Lt. Generals due to non inclusion of the
element of Military Service Pay (MSP) in the case of Maj. Generals and Lt. Generals.
This anomaly has been reviewed and it has been decided that keeping in view the
fact that Colonel/Brigadier have been placed in PB-4 and MSP of Rs. 6,000/- is
reckoned in their case for the purpose of stepping up of the pension/family pension,
the pension of Maj. Generals/Lt. Generals may also be regulated under Para 5 of the
Ministry’s above quoted letter dated 11.11.2008 so as to ensure that consolidated
pension is not lower than 50% of the minimum of the PB-4 (Rs. 37,400/-) plus grade
pay of Rs. 10,000/- plus notional MSP of Rs. 6,000/- in the case of Maj. Generals &
equivalent and not lower than 50% of the minimum of PB-4 (Rs. 37,400/-) plus grade
pay of Rs. 12,000/- plus notional MSP of Rs. 6,000/- in the case of Lt. Generals &
equivalent, where the pensioners have full qualifying service including weightage.
Hence, for the purpose of stepping up, the pension of Pre-1.1.2006 retirees with
qualifying service of 33 years will be Rs. 26,700/- in the case of Maj. Generals &
equivalent and Rs. 27,700/- in the case of Lt. Generals & equivalent. Pension to
those Commissioned officers retired with qualifying service including weightage of
less than 33 years, will continue to be proportionate to the full pension based on their actual qualifying service with weightage.

The stepped up family pension would also accordingly be Rs. 16,020/- for
families of Maj. Generals & equivalent and Rs. 16,620/- for families of Lt. Generals & equivalent.
A revised table to the above effect is enclosed as Annexure-II to this letter in
substitution of the Annexure-II (Revised)) to this Ministry’s above quoted letter dated 11.12.2008.
The following amendment in Annexure-III, Table-2 : Family Pension, is also

“The rate of Family Pension in respect of Nb Subedar “A”/”X” and Subedar
“A”/”X” may be amended to read as “5070” and “5190” for 5570 and 5490
5. All other entries remain unchanged.
6. This issues with the concurrence of the Finance Division of this Ministry vide
their UO No. 157/DFA(P) dated 20.1.2009.
7.Hindi version will follow.

Copy to:
As per standard distribution list.

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