Saturday, 16 July 2016

Recalling some interesting information posted on this blog

Annexure B to
No. 22/S/2014-D (PCC)
Ministry of Defence (Pay Commission Cell)


Major General
Lieutenant General
Total Army Officers


Rear Admiral
Vice Admiral
Total Naval Officers

Air Force

Gp Capt
Air Cmde
Air Vice Marshal
Air Marshal
Total Air Force Officers


Pay Scale
Lieutenant General
Vice Admiral
Air Marshal
Apex Scale

Monday, 11 July 2016

Writ Petition (Civil) No. 419 of 2016 in Honourable Supreme Court

Indian Ex-Servicemen Movement & Others have filed Writ Petition (Civil) No. 419 of 2016 in the Honourable Supreme Court (in Court No.4) and first listing was today.


Wednesday, 29 June 2016

From PIB - Cabinet Approves 7 CPC: Some improvements for Defence Forces Personnel

Press Information Bureau
Government of India
29-June-2016 19:29 IST
Cabinet approves Implementation of the recommendations of 7th Central Pay Commission

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the implementation of the recommendations of 7th Central Pay Commission (CPC) on pay and pensionary benefits.   It will come into effect from 01.01.2016.

In the past, the employees had to wait for 19 months for the implementation of the Commission’s recommendations at the time of 5th CPC, and for 32 months at the time of implementation of 6th CPC.  However, this time, 7th CPC recommendations are being implemented within 6 months from the due date.

The Cabinet has also decided that arrears of pay and pensionary benefits will be paid during the current financial year (2016-17) itself, unlike in the past when parts of arrears were paid in the next financial year. 

The recommendations will benefit over 1 crore employees. This includes over 47 lakh central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.


1.            The present system of Pay Bands and Grade Pay has been dispensed with and a new Pay Matrix as recommended by the Commission has been approved. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the Pay Matrix. Separate Pay Matrices have been drawn up for Civilians, Defence Personnel and for Military Nursing Service. The principle and rationale behind these matrices are the same.

2.            All existing levels have been subsumed in the new structure; no new levels have been introduced nor has any level been dispensed with. Index of Rationalisation has been approved for arriving at minimum pay in each Level of the Pay Matrix depending upon the increasing role, responsibility and accountability at each step in the hierarchy.

3.            The minimum pay has been increased from Rs.  7000 to 18000 p.m.  Starting salary of a newly recruited employee at lowest level will now be Rs.  18000 whereas for a freshly recruited Class I officer, it will be Rs.  56100.  This reflects a compression ratio of 1:3.12 signifying that pay of a Class I officer on direct recruitment will be three times the pay of an entrant at lowest level.

4.            For the purpose of revision of pay and pension, a fitment factor of 2.57 will be applied across all Levels in the Pay Matrices.

5.            Rate of increment has been retained at 3 %. This will benefit the employees in future on account of higher basic pay as the annual increments that they earn in future will be 2.57 times than at present.

6.            The Cabinet approved further improvements in the Defence Pay Matrix by enhancing Index of Rationalisation for Level 13A (Brigadier) and providing for additional stages in Level 12A (Lieutenant Colonel), 13 (Colonel) and 13A (Brigadier) in order to bring parity with Combined Armed Police Forces (CAPF) counterparts at the maximum of the respective Levels.

7.            Some other decisions impacting the employees including Defence & Combined Armed Police Forces (CAPF) personnel include :

·               Gratuity ceiling enhanced from Rs.  10 to 20 lakh. The ceiling on gratuity will increase by 25 % whenever DA rises by 50 %.

·               A common regime for payment of Ex-gratia lump sum compensation for civil and defence forces personnel payable to Next of Kin with the existing rates enhanced from Rs. 10-20 lakh to 25-45 lakh for different categories.

·               Rates of Military Service Pay revised from Rs. 1000, 2000, 4200 & 6000 to 3600, 5200, 10800 & 15500 respectively for various categories of Defence Forces personnel.

·               Terminal gratuity equivalent of 10.5 months of reckonable emoluments for Short Service Commissioned Officers who will be allowed to exit Armed Forces any time between 7 and 10 years of service.

·               Hospital Leave, Special Disability Leave and Sick Leave subsumed into a composite new Leave named ‘Work Related Illness and Injury Leave’ (WRIIL). Full pay and allowances will be granted to all employees during the entire period of hospitalization on account of WRIIL.

8.            The Cabinet also approved the recommendation of the Commission to enhance the ceiling of House Building Advance from Rs.  7.50 lakh to 25 lakh. In order to ensure that no hardship is caused to employees, four interest free advances namely Advances for Medical Treatment, TA on tour/transfer, TA for family of deceased employees and LTC have been retained. All other interest free advances have been abolished.

9.            The Cabinet also decided not to accept the steep hike in monthly contribution towards Central Government Employees Group Insurance Scheme (CGEGIS) recommended by the Commission. The existing rates of monthly contribution will continue. This will increase the take home salary of employees at lower levels by Rs. 1470. However, considering the need for social security of employees, the Cabinet has asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.

10.        The general recommendations of the Commission on pension and related benefits have been approved by the Cabinet. Both the options recommended by the Commission as regards pension revision have been accepted subject to feasibility of their implementation. Revision of pension using the second option based on fitment factor of 2.57 shall be implemented immediately. A Committee is being constituted to address the implementation issues anticipated in the first formulation. The first formulation may be made applicable if its implementation is found feasible after examination by proposed Committee which is to submit its Report within 4 months.

11.        The Commission examined a total of 196 existing Allowances and, by way of rationalization, recommended abolition of 51 Allowances and subsuming of 37 Allowances. Given the significant changes in the existing provisions for Allowances which may have wide ranging implications, the Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances.  The Committee will complete its work in a time bound manner and submit its reports within a period of 4 months. Till a final decision, all existing Allowances will continue to be paid at the existing rates.

12.        The Cabinet also decided to constitute two separate Committees (i) to suggest measures for streamlining the implementation of National Pension System (NPS) and (ii) to look into anomalies likely to arise out of implementation of the Commission’s Report.

13.        Apart from the pay, pension and other recommendations approved by the Cabinet, it was decided that the concerned Ministries may examine the issues that are administrative in nature, individual post/ cadre specific and issues in which the Commission has not been able to arrive at a consensus.

14.        As estimated by the 7th CPC, the additional financial impact on account of implementation of all its recommendations in 2016-17 will be Rs. 1,02,100 crore. There will be an additional implication of Rs. 12,133 crore on account of payments of arrears of pay and pension for two months of 2015-16.

Thursday, 23 June 2016

MoD File Notings - CSC 2012

File Notings CSC 12

Provided vide No. PC-237/RTI/D(P/P)/2014 dated 13.06.2016 from notings on MoD file No. 12 (11)/2012/D (Pension/Policy).

Ministry of Defence
D/Ex-Servicemens’ Welfare
D (Pen/Pol) 

Secy (ESW) had desired that certain issues to be taken up by the RM with PM have been placed below.

2.      Brief on the five issues are placed below. 
Sd/------------ 30/04/12
OSD (Pen)                    Sd/--------------- 30/4/12

JS (ESW)                      Sd/-------------- 30/4/12

Secy/ESW                     Please discuss urgently.        Sd/------- 1/5/12


Please do needful as discussed with Secy ESW.                 Sd/--------- 2/5/12


Revised draft put up for kind perusal.             Sd/- Harbans Singh 3/5/12



Revised write-up is placed opposite for consideration pl. Sd/--------- 16/2/12

OSD (Pen)

Briefs have been put up on F No. 10 (27)/2010-D(P/P).   Sd/------------18/5/12

US (P/P)

There are several issues which have been agitating the minds of the Ex-Servicemen in the last many years. The main issues are listed below: -

(a)     One Rank One Pension

(b)     Enhancement of family pension on the lines of benefit given to pensioners on the recommendation of Cabinet Secretary Committee in 2009

(c)     Dual family pension

(d)     Family pension for mentally/physically challenged son/daughter of armed forces personnel on marriage.

2.      All these cases have been taken up with the Department of Pension & Pensioners’ Welfare and Department of Expenditure. However, they did not agree to the same.

3.       It is, therefore, felt that these matters may be taken up for further consideration at appropriate level.
(Malathi Narayanan)
Under Secretary (Pen/Pol)
OSD (Pen)                    Sd/----------- Harbans Singh 25/2/12

JS (ESW)                      Sd/----------- 25/5/12

Secy (ESW)
Copies of the notes on the 4 issues above have been prepared

Copies have been sent to RM and RRM separately for taking up the matter further, since Pensioners Welfare and Expenditure departments have rejected all these proposals, when they were individually taken up. 
RRM - away



Secy ESW please discuss.     Sd/----------- 30/5/12

Secy (ESW) on leave
Discussed. RM directed that a DO may be put up from him to Hon’ble PM to appoint some Committee to suggest a way out to bridge the gap between post & current pensioners sequel to implementation of 6th CPC.

Accordingly a draft DO placed below.
Sd/- M Narayanan
OSD (Pen)           Sd/-------------- 11/6/12

A folder (placed below0 containing (a) few points/issues raised by the Service HQ has been received from RM. 

Please examine and duly incorporate in the DO.
OSD/P       Please see Sd/-------14/6/12

US (P/P)    Sd/------------ 15/6

Issued                                                                                                        - 10/A

Encl 10/A is a folder containing issues raised by the Service HQ. The proposal has been gone through and it is noted that the issues at Para 3 (a) to (e) are to do with Common Pay Scale, initial pay fixation of Lt Cols etc review/enhancement of Grade Pay, placements of Lt Genls in HAG+ scale, grant of non-functional upgradations. All these issues are to do with pay which is not the purview of this Division and hence Pension Division is not qualified to comment on these issues.

2.      Para 3 (f) regarding One Rank One Pension to the Armed Forces. Their recommendation is that all Defence pensioners i.e. past retirees be determined with reference to notional top of the scale and this pension to be subject to pro-rata reduction for qualifying service less than 33 years, in addition they have desired 50% MSP be added without any pro-rata reduction. It may be recalled that consequent upon setting up Cab Sectt Committee in 2009, the Committee made 7 recommendations for the Armed Forces personnel both Commissioned Officers and PBORs. One of the recommendations was issued as Govt letter dated 08.03.2010 wherein pre-06 PBOR pensioners were allowed to revise their pensions on notional maximum of the pre-06 scale. Although other recommendations were made i.e. carving out the scale for Lt Gens, removal of linkage for full pensions etc., no recommendation was made in respect of pre-06 officers in respect of pension with reference to notional maximum.       

3.       To correct the same, a proposal is now being made to examine these issus in as separate Committee. DO for which is placed below from Hon’ble RM to Hon’ble PM.

Accordingly submitted.
(Malathi Narayanan)
Under Secretary (Pen/Pol)
Datd 18.06.2012

OSD (Pen)

The folder containing issues relating to pay anomalies etc may be referred to the proposed committee, if appointed for resolution. DFA, please.
Draft DO incorporating the issues raised by the Services HQrs regarding anomalies in pay arising out of the 6th CPC recommendations is enclosed for consideration pl.                                                        Sd/----------------- 18/6/12

Secy (ESW)
This is regarding the various issues/anomalies in Pay & Pensions, which have been agitating the minds of defence personnel & ex-servicemen.

A draft DO letter from RM to PM requesting setting up an appropriate committee to whom all issues/anomalies could be referred is placed below for consideration & approval.                                          Sd/---------- 

R R M        A very brief letter to be re-drafted highlighting the two main issues and to attach a note on historical decisions for his reference, if necessary.
Secy ESW
As discussed.                                   Sd/----------- 21/6/12

JS (ESW)                                         Sd/----------- 21/6/12


Preceding note refers.

As directed by the RM, a draft DO letter addressed to the PM has been attempted. The DO is proposed to draw attention to the discontent of the Armed Forces’ personnel and ESM with respect to the gaps existing in pensionary benefits as well as pay fixation following 6th CPC. 

In this connection a brief prepared on the four main pension issues that are of immediate concern as well as a write up received from the Army HQ on various pay fixation/pension matters are enclosed.  

Submitted for consideration, please.                                   Sd/-------- 22/6/12


As discussed with RM and note pre-page from RRM, a revised draft DO letter to PM is placed below requesting for setting up an appropriate committee to look into various issues agitating serving and retired defence personnel for consideration. A brief note on pension issues and service personnel issues, as given by the Armed Forces is proposed to be attached to the DO letter. 
RRM                    Sd/----------------- 22-6-2012

RM                       Sd/----------------- 23/6

RRM          has seen

Secy (ESW)
Since senior officers are also involved in this matter, a copy of the letter may also be sent to AG for their n/action and records.              Sd/------------ 26/6/12

JS (ESW)           
For necessary action pl                                                Sd/----------- 27/6/12

OSD/P                          Sd/------------------- 27/6/12

US (P/P)                       Sd/------------------- 28/6


The government has already announced the formation of a 5 member committee, with specified terms and conditions.

Please take action to get notes from AG office, and FA (DF) & CGDA giving details of numbers and funds involved on each term. As discussed we may hold a meeting on 11th/12th afternoon on this.                      Sd/------------- 10/7/12

Please compile information as discussed & discuss.                   Sd/-------- 10/7/12

OSD/P                                    Sd/-------------------- 12/7/12

US (P/P)                                 Sd/-------------------

-19, 20, 21, 22, 23 –
Letter to PM with enclosures and addendum


First Report of Secretaries Committee (SC)


6th Report of SC

7th Report of SC


9th Report of SC

-28 to 35 -

Letter from PMO, Order of 13/ 1/12 of Cab Sectt  etc


Encl 35-A is 4 issues to be taken up in CSC meetings to be held on 18/7/12 at 3.30 pm in Committee Room, Cabinet Sectt, Rashtrapati Bhavan. These issues have been sent to D (Pay/Ser) for presentation to the Committee.
Sd/--- Malathi Narayanan
OSD (Pen)
As directed an ID note to o/o CGDA has been sent by fax calling for financial implication & beneficiaries in r/o (ii), (iii) and (iv) of the four issues. Fax confirmation opposite.                                 Sd/- M Narayanan 18/7/12

OSD (Pen)


I have spoken to Mrs Devika Raghuvanshi, Jt CGDA and Shri Ajoy Mishra, CDA (P) Allahabad. They promised to send the information relating to number of beneficiaries and financial implications involved in respect of above items in a day or two. We may await the same.            Sd/------Harbans Singh 19/7/12 

US (P/P)             Sd/-------- 23/7

Government has announced the formation of a 5-member Committee under the Chairmanship of the Cabinet Secretary to discuss the following issues: -

Pension related:

i.       One Rank One Pension;
ii.      Enhancement of family pension.
iii.     Dual family pension
iv       Family pension to mentally/physically challenged son/daughter of armed forces personnel on marriage.

2.      First meeting of the Cab Sec Committee was held on 18.07.2012 at 3.30 PM at Committee Room, Cabinet Secretariat. The above 4 issues were considered and it was instructed to gather the number of beneficiaries and financial implication so that the issues could be considered further. Accordingly 3 Services and CGDA were requested to provide the same. No information has been made available as yet by Services and they have been sent a reminder. 

3.       CGDA have reverted with the 4 issues and their comments are as follows:

i.       One Rank One Pension:
          They have made a comparison between pre-06 and post-06 PBOR as per table I placed at 38E. As per the table, there seems to be no wide gap between pre and post retiree PBOR pensioners.

          As regards difference in pension of Rs 3000/- approx in respect of Havildar and Naib Subedar, it may be added that the revised pension from 1.7.2009 for these ranks has been calculated with reference to provisions contained in MoD letter dated 08.03.2010 on the basis of the notional pay in revised pay structure corresponding to maximum of pre-revised pay scale introduced from 10.10.1997 for the rank and group, as per fitment tables attached with SAI 1/S/2008. The same method has also been adopted for calculation of the revised pension for these ranks. However, the difference in pension is due to the difference in the maximum of pay scale for both the ranks/groups and also difference of Rs 1400/- in grade pay of these ranks.    

In respect of officers, they have intimated that there are total 35,439 Commissioned officers and they have stated that since no methodology for bridging the gap in pension of pre-06 retiree commissioned officers has been provided, their office is not in a position to work out financial implications involved.   

ii.      Enhancement of family pension:
CGDA had stated that financial implications has been revised after taking into account DR at 65% accordingly, tables 2, 3, 4 for OFP, SFP and LFP worked out separately. Number of beneficiaries involved 4, 18, 404 and financial implication Rs 527.30 crore p.a. 

iii.    Dual Family Pension:

          CGDA have stated that since the pension sanctioning authorities are not aware about the pensioners who are re-employed and subsequently died/retired while holding civil post which makes family pensioners eligible for pension, they are not in a position to intimate the number of beneficiaries and financial implications involved.

iv.     Family pension to mentally/physically challenged son/daughter of armed forces personnel on marriage:

          CGDA have stated that since such cases are either not granted family pension by Pension Sanctioning Authorities or, if sanctioned, their pensions are discontinued by the Pension Disbursing Agencies on getting married, it is not feasible to provide the number of beneficiaries involved, if the proposal is accepted by the Government and also financial implications involved in the issue.

Accordingly submitted please.                                   Sd/-------------------
                                                                                      (Malathi Narayanan)
                                                                                      Under Secretary (Pen/Pol)
OSD (Pen)


  Reference note 39 ante.

2.      Although we had written to Army HQ for number of beneficiaries and financial implications involved in respect of issues (ii), (iii) and (iv) vide encl 28-A, no information has been received from them. A copy of this enclosure was also sent to Air HQ and Naval HQ.

We have received information in r/o issue (ii) from CGDA vide enclosure 38-A. They have, however, expressed their inability in furnishing similar information in r/o issues (iii) and (iv) for the reasons explained in paras 3 and 4 of enclosure 38-A.     

We may pass on the information to the Ministry of Finance/D (Pay/Services) for onward transmission to the Cabinet Secretary Committee.  
JS (ESW)  

Issue encl 40/A; Receipt encl 41/A 


CGDA has provided their comments on the methodology of revision in r/o Commissioned Officers, They have also stated that there is very little difference/gap in pension of the pre and post -06 PBORs pensioners and provided Ann I & II for the same. 

2.      Accordingly, a brief on all the 4 issues i.e number & financial implications is prepared and placed below for sending to M of Finance/D (Pay/Ser) opposite.

2.                If approved, the same may be sent as per draft ID note.
Sd/-----M Narayanan
OSD (Pen)
          Ref: discussion with Secy (ESW).

At 43/A , CGDA has been requested to write on financial implications if 3 yar weightage could be allowed to 3 lowest ranks of armed forces i.e. Sepoy, Naik and Hav. It is since informally received at encl 44/A.
Sd/- M Narayanan 25/7/12
OSD (Pen)

Receipt of Encl 45/A
Receipt of Encl 46/A
Receipt of Notice for next meeting on 27/7/12 at Encl 47/A
Receipt of Minutes of 1st meeting at Encl 48/A
Receipt of information from CGDA        at Encl 49A
Issue of letter at encl 50/A
Statistics of post-06 PBORs at encl 51/A

          Apropos telephonic conversation with JS (ESW) following 2nd meetings of Cab Secretary Committee at 4.00 pm on 26.07.12, following further information has been called for by D/Expenditure:

i)       How the calculation of Rs 528 cr for Enhanced Family Pension was been arrived at?

ii)      Why the pension of Major was initially shown as Rs 14, 100 and later as Rs 14, 464?

iii)     The number of beneficiaries in respect of Dual family pension may be worked out to the extent possible.

2.      As regards i), CGDA had provided working sheet on how the same was worked which is at Encl 49/B. They have stated that they do not have any separate data of pre-06 family pensioners as on 31.12.05 and therefore rank-wise bifurcation and the type of pension has been worked out with reference to the actual percentage of notification in each rank and type of pension notified viz., Ordinary, Special and Liberalised Family pension. The financial implication has been calculated considering the modified parity rates for existing pensioners as existing pension because it is not possible to determine/calculate existing rates of family pension since it is based on last pay of the individual which varies from person to person.     

3.       Further, they have also pointed out that family pension under 6th CPC pay structure may in some cases work out less than the pre-06 family pensioner after the benefit of enhancement is extended to them, in case the last pay of the deceased happens to be less than the maximum of the 5th CPC under fitment of 6th CPC.  They have also mentioned that benefit of improvement in pension to bridge the gap between pre and post-06 retirees has not been provided to Hony rank of Lt and Capt in terms of para 5.1 of MoD letter dated 8.3.10. Therefore, the above enhancement in family pension has not been extended to the family pensioners of Hony Lt and Hony Capt.  

4.      The issue of Hony ranks in the three Services came up for consideration at the time of implementation of Cab Secretary Committee Report, 2009. While implementing the recommendation on improving the pension of pre-06 PBORs, the revision of Hony Lt/Capt was also considered. A decision was taken with the approval of Deptt of Expenditure that since post-06 revision is based on 6th CPC recommendations, the pension of Hony Lt and Hony Captain has already been revised with reference to PB-III i.e 50% of minimum of Pay Band III + GP + MSP. No further improvement was felt required, as otherwise it would have implication on the pensions of regular Commissioned Officers. This decision had the approval of Hon’ble RM. Since the benefit of MoD letter 8.3.10 was not extended to them, the benefit of enhancement in family pension is also not being extended to their family pensioners.       

5.       The estimated number of family pensioners worked out is accordingly at enclosure 49-B as tables 1, 2 & 3 which was revised further taking DR @ 65% as table 2, 3 & 4  at Encl 50-A.

6.      As regards (ii), the pension of all pre-06 defence personnel is to be calculated with reference to consolidation with a protection given as per modified parity. In case of Majors, the pension worked out by consolidation is Rs 14, 464/- p.m. Majors ar actually in receipt of pension on consolidation and not modified parity. Rs 14, 100/- pm is the amount as per modified parity. Hence, the correction made in case of Majors in th calculation sheet of Commissioned Officers.

7.       In respect of (iii), CGDA have vide encl 38/A-D clearly cited their inability to provide number of beneficiaries since the pension sanctioning authorities are not aware about the number of pensioners who are re-employed and subsequently died/retired while holding civil post which makes the family pensioners also eligible for pension. It is, therefore, not possible to work out the number of beneficiaries and financial implication involved.  

8.      If approved, the above as at para 2, 5, 6, & 7 may be sent to D/Expenditure. Accordingly, a draft is placed below.
(Malathi Narayanan)
Under Secretary (Pen/Pol)

OSD (Pen)                                        Sd/------------------ 27/7/12


Discussed with JS (ESW). Letter sent to CGDA and PCDA (P) Allahabad.
Sd/M Narayanan


A copy of the communication sent to CGDA/PCDA (P) may be faxed to JS (ESW) for information.

2.                Please ensure that there is no action warranted on encl 48-A.


Discussed with OSD (Pen). A copy of letter of 25/6/12 from RM to PM with enclosures, ID dated 9/7/12 on the notification of CSC, Order of 13/7/12 of Cab Sectt regarding constitution of Committee & copy of notice of 16/7/12 notifying first meeting of CSC being sent to Dir (Coord).  
Sd/ M Narayanan

-56, 57-
Issue and receipt.


The information regarding percentage of notification for family pension in each rank and type of pension furnished by CGDA vide encl 56 – A/B has been gone through. The assessed strength given in the table at encl 56-B tallies with the number supplied by them earlier. 

2.      Ordinary family pension accounts for 90% of the total financial implication which works out to Rs 527.30 crore vide encl 38-A. Special family pension and Liberalised family pension come to 7% and 3% respectively. 

JS (ESW)            Sd/------------- 31/7/12

Secy/ESW           Sd/--------------31/7/12

JS (ESW)            Sd/---- 1/7 (?)

OSD/P                 Sd/------ 1/8

US (P/P)             Sd ------- 2/8

-59 to 71 -

Addition of enclosures without mention of contents


JS (Pers), D/Expenditure requested for some more calculations on issue No. 1 and Issue No. 2 of the CSC-12 yesterday and today i.e 8/8/12 and 9/8/12. OSD (Pen) and undersigned went yesterday to D/Exp. Today Sh Rajesh Gupta from CGDA and undersigned went to D/Exp. Accordingly, tables which are placed at encl 68/A to 71/A were prepared and given to JS (Pers). At the instance of JS (Pers) financial implications for PBORs and JCO in r/o issue 1 has been calculated on best of 3 scales as per Govt letter of 18.8.10.

Submitted.                                                                   Sd/------- M Narayanan
OSD (Pen)                    Sd/----------- 9/8/12
JS (ESW)                      Sd/------------- 17/8

OSD                               Sd/------------- 21/8

US (P/P)                       Sd/------------ 21/8

-73 to 80-
Issue and Receipts

Ref Encl 80/A.

2.      D (Parl) have forwarded a copy of L. S. (Standing Committee Branch) reference dated 21.08.12 for furnishing factual information on the points listed out. The information has to be sent immediately to D (Parl) duly approved by Defence Secretary.

3.       The brief enclosed is mainly listing out pay issues, except for One Rank One Pension at encl 80/D. On encl 80/E too the main thrust of the note is on pay package to armed forces.

4.      On the recommendations of Raksha Mantri, Government has constituted a Committee headed by Cabinet Secretary and consisting of Principal Secretary to Prime Minister, Defence Secretary, Expenditure Secretary, Secretary (ESW) and Secretary DoP&T for looking into the Pay and Pension related issues of relevance to Defence services personnel and Ex-servicemen. The Committee has already had several meetings. One Rank One Pension is one of the issues referred to the Committee. Action on the recommendations of the Committee will be processed for acceptance of the Government and implementation.

5.       If approved, information as at para 4 may be conveyed to the L. S. (Standing Committee Branch) through D (Parl).
(Malathi Narayanan)
Under Secretary (Pen/Pol)
DS (Pen)              Sd/-------- 28/8/12
OSD (Pen)           Sd/-------- 28/8/12
JS (ESW)            Sd/-------- 28/8/12
Secy (ESW)
Please discuss.                                                    Sd/------------ 28/8/12

Discussed with Secy (ESW) and draft reply as modified put up for approval of Secy (Defence).                                                  Sd/------- M Narayanan 29/8/12

OSD/Pen             Sd/-------- 29/8/12
JS (ESW)            Sd/-------- 29/8/12
Secy (ESW)

Reference the comments of the Standing Committee at page 80 – D. We may furnish our comments as placed below.                        Sd/--------------- 29/8/12

Def Secy                        Sd/------------ 30/8/12
Secy (ESW)                   Sd/----------- 30/8/12
JS (ESW)                      Sd/------------ 30/8/12

Government of India
Ministry of Defence
Deptt of Ex-Servicemen Welfare

          The Government vide No. 213/2/3/2012-CA-IV dated 13th July 2012 constituted a Committee under the Chairpersonship of the Cabinet Secretary to look into pay and pension related issues of relevance to the defence services personnel and ex-servicemen. Other members of the Committee were Principal Secretary to the Prime Minister, Defence Secretary, Secretary (Expenditure), Secretary (Personnel & Training) and Secretary (Ex-Servicemen Welfare).     

2.      The Committee held eight meetings and discussed all matters raised with respect to the issues related to pay and pension of Defence Services personnel. The Committee submitted its report dated 17th August 2012 to the Government.

3.       The Committee inter alia made recommendations in respect of the following four pension issues concerning the Armed Forces/ESM pensioners:

1.       One Rank One Pension (OROP) – bridging the gap in pension of pre and post 1.1.06 ESM pensioners.

          2.      Enhancement of Family Pension.

          3.       Dual Family pension

4.      Family pension to mentally/physically challenged children of the Armed Forces personnel on marriage.

4.      It is now proposed to process the Committee’s recommendations on pension related issued of the ESM pensioners for obtaining approval of the Cabinet.

Joint Secretary (ESW)
Secretary (ESW)                    Sd/--------- 7.9.12


As planned concurrence of MoF may be obtained.   Sd/-----------      

Sd/-----  Defence Secretary

Secretary, MoF (Expenditure)


Government of India
Ministry of Finance
Department of Expenditure

          Department of Ex-Servicemen Welfare may please refer to their Draft Note for the Cabinet seeking the concurrence of Ministry of Finance on the Committee’s recommendations on pension issues of Ex- Servicemen.

2.      The proposal has been examined in the M/o Finance, Department of Expenditure and this Ministry concurs with the proposals contained in para 9 of the DCN subject to the condition that the financial implications arising out of the proposal in the current financial year would be met by M/o Defence from within their budgetary allocations for 2012-13. 

3.       Department of Ex-Servicemen Welfare is also requested that the recommendations made by the Committee in respect of pension and family pension of Commissioned Officers, dual family pension and continuance of family pension to mentally/physically challenged children on marriage which are also to be extended to be civilian pensioners in view of the similarity of the present provisions, may be reflected in the approval para of the final Cabinet note.     

4.      This issues with the approval of the Finance Minister.
(Vivek Kumar Singh)
Joint Secretary (ESW), Department of Ex-Servicemen Welfare, South Block, New Delhi

Ministry of Finance, D/o Expenditure I. D. Note 1(4)/EV/2012 dated 13-09-2012

Note/enclosure missing


Ministry of Finance (D/O Expenditure) vide I. D. datd 13/9/2012 have concurred in the proposals in the Draft Cabinet Note forwarded by us for implementation of the recommendations of the Committee set up by the Government for looking into pay and pension issues of the Defence personnel and ESM pensioners.

It is no proposed to forward the Final Cabinet Note for approval of the Cabinet. The Final Cabinet Note is enclosed for approval please. 
Secy/ESW           Sd/-------- 14/9

RM                       Sd/--------- 14/9

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