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Fixing of Pension for Pre 01 Jan 2006 Retirees

Fixing of Pension for Pre 01 Jan 2006 Retirees



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Published by jkraj462364
Fixing of revised Pension for pre 1.1.2006 Defence Pensioners.
Confusion as some Banks are not following rules explicitly.
Fixing of revised Pension for pre 1.1.2006 Defence Pensioners.
Confusion as some Banks are not following rules explicitly.

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Published by: jkraj462364 on Jan 09, 2009
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Fixing of revised Pension for pre 1.1.2006 Defence Pensioners. Confusion as some Banks are not following rules explicitly.For revision of Pension- Pre 1.1.2006 Pensioners-6th CPC Award Ministry ofDefence,Deptt. of Ex-Servicemen Welfare has issued instructions vide their letterNo.17(4)2008(1)/D(Pension-Policy) dated 11.11.2008 which PCDA(P) vide theirImportant Circular 397 dated18.11. 2008. has further endorsed it, authorizingBanks to work out pension accordingly and disburse. But the confusion is in galorebecause some of the Banks have not followed it in letter and spirit and just paidas per tables supplied with Annexure-1 of letter above for working our BasicPension alone. They have not bothered to comply with Para 5 of the above quotedMOD letter where example has been given of working out the complete pension, byadding in Basic Pension, 50% of the Grade Pay and Military Service Pay(MSP). MSPis nothing but erstwhile Rank Pay which was being given till 31.12 2005 over andabove the normal pay.Some Banks have consolidated and paid as per Annexure-11 of the MOD letter whichis based on the minimum of the revised Pay Band. It is erroneously interpreted andbasically incorrect and inconsistent with the operative instructions and fitmenttables appended with the Deptt. of Pensions (P&P W) letter dated 02 Sep..2008 andMOD letter of Sep. 2008 for Armed Forces on the subject. The MOD letter alsoincludes Grade Pay and MSP for working out revised Pension. The existing pay andits revised pay in the Pay Band as shown in the fitment tables, is to be reckonedas the minimum scale and not the bottom of Pay Band as minimum scale.Thus, the amount of revised pension shown in the fitment tables, against theexisting pension of the individual, be treated as minimum for working our revisedpension in table-II and on that be added 16% DR.. It will automatically makedistinction between the pension of Brigs, Maj Gen and Lt Gen which is being shownas same in Table II. This consolidation amounts to multiplying Basic Pension withfactor 2.26 and adding 50% of the Grade Pay and MSP besides16% as DR.. Since notwo figures exactly agree with each other, it is causing lot of confusion. ThePara 16.3 of the above mentioned MOD letter says that when pension is worked outas per para 4 and 5 of MOD letter, the disbursing officer will give which ever ismore beneficial to the individual.By not following one system by all the Banks, it has created confusion as personsof same seniority are getting less pension than others in some of the Banks andeven juniors have got more arrears than seniors. As a result we are getting numberof calls from aggrieved persons as well as many others who just want to check ifthey are getting their due. Banks are requested to follow the Annexure-1 and addto it 50% of the Grade Pay and MSP as shown in example given in para 5 of abovequoted MOD letter. On this sum they should give DR @16%. They should work outarrears accordingly from 1.1.2006 and adjust Extra DR paid during the period. Itwill settle all the anomalies being pointed out now. Of course, every thing willbe all right, once new PPO is issued and differences if any will be paid by theBanks then. But we hope that the Banks will cooperate and settle the discrepanciesto the satisfaction of the Ex-Servicemen, their customers.Moreover, Para 16.4 of the above MOD letter states that the disbursing officerwill supply to the pensioners a copy of the Annexure- IV after fixing thepension, giving details as to how the fixing has been done. But it is learnt thatit has not been done and this is another cause of confusion. The Banks arerequested to supply to the pensioners a copy of the Annexure 1V, giving fulldetails as to how the revised pension has been fixed. This will form basis forPCDA(P) to issue fresh PPO to set the final score.

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