Demands Relating to Defence Pensioners : 7th CPC Report

Demands Relating to Defence Pensioners : 7th CPC Report

Demands Relating to Defence Pensioners

The Commission has received a number of demands relating to pensions for defence forces personnel through the Joint Services Memorandum (JSM) from the Services, Pensioners Associations and Bodies including those dealing with the needs of special categories like war veterans, disability etc. The demands/representations received in the Commission have been examined under the broad categories of Retiring Pension, Family Pension, Disability Pension and Ex-gratia lump sum compensation.

Demand Relating to Retiring Pension : The principal demands made before the Seventh CPC in respect of retiring pensions as applicable to the defence personnel were:

i. Minimum pension should be fixed at 75 percent of reckonable emoluments for JCOs/ Other Ranks or a compulsory early retirement compensation package or lump sum amount.

ii. Additional quantum of pension with advancing age should commence at the age of 70 years for JCOs/ Other Ranks instead of 80 years as prevails today.

iii. Pre 2006 Honorary Naib Subedar may be given pension of Naib Subedar.

iv. Defence Security Corps (DSC) personnel may be granted second pension on completion of 10 years of service at par with civilians

v. The depression in pension for qualifying service between 15 and 20 years may be removed and complete earned pension may be made admissible to Territorial Army personnel.

Minimum Pension for JCOs/ ORs : The Services, in the JSM, have sought enhancement of the Service Pension to 75 percent of last drawn reckonable emoluments for JCOs and ORs. In case enhancement of pension to 75 percent of last drawn reckonable emoluments is not granted for JCOs/OR, the Services have sought a compulsory early retirement compensation package or compulsory lateral absorption in government or PSU as an alternative.

Analysis and Recommendations: Service pension for all categories of employees has been fixed at 50 percent of the last pay drawn. The recommendations in relation to pay of both the civilian and defence forces personnel will lead to a significant increase in the pay drawn and therefore in the ‘last pay drawn’/‘reckonable emoluments.’ It is also to be noted that in the case of defence forces personnel, in particular all JCOs/ORs, the last pay drawn includes the element of Military Service Pay, which is also taken into account while reckoning pension. The Commission has Report of the Seventh CPC 402 Index also recommended an increase in Military Service Pay. The increase in pay and MSP will automatically and significantly raise the level of pension of JCOs/ORs, since pension is related to the last pay drawn/ reckonable emoluments. Therefore the Commission does not recommend any further increase in the rate of pension for JCOs/ORs.