ENHANCEMENT OF PENSION

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Presentation transcript:

ENHANCEMENT OF PENSION PRE- 2006, 14 MAJ GENS’ CASE FOR ENHANCEMENT OF PENSION BASED ON INCREMENTS EARNED IN 5TH CPC

Their case is similar to our OA – 34/2016 AFT Delhi went by judgment of AFT Chandigarh in OA 100/2000 Maj Gen SPS Vains Vs UOI Since Judgment is given by AFT Delhi, we can hope similar judgment will be given to Petitioners of OA – 34/2016 as Cause is Same i.e. Pension be fixed based on Increments earned at the time of retirement in 5th CPC Govt Sanction given by ADG PS to Maj Gens. PCDA (O) Pune gave LPC fixing Notional Pay in Jan 2006 for Maj Gens

SALIENT FEATURES OAs Filed By 12 Maj Gens, 1 R Adm, 1 AVM in AFT Delhi:- 444/2016 687/2016 701/2016 746/2016 925/2016 Date of Filing - 12 Apr 2016 Date of Judgment- 16 Feb 2017

SALIENT FEATURES OF JUDGMENT OF AFT DELHI DELIVERED ON 12 APR 2017 The respondents are directed to grant to them (Petitioners) the same pay fixation on "notional basis" and consequently the same  rate of pension, as has been granted to the post-2006 retirees Major Generals (and equivalents of Navy and Air Force thereto) with effect from 01.01.2006, thereby ensuring that there is no disparity in the grant of pension between pre and post-2006 retirees.    We further direct that the above fixation and payment to the petitioners be carried out within a period of three months from the date of this order with interest @ 9% per annum be paid on the arrears from the date of filing this petition ie, 12.04.2016.

How is Notional Pay of Pre – 2006 Pensioners be Fixed from Jan 2006 to Jun 2014?

Pension in 5th CPC is dependent upon Last Pay Drawn in the scale of Pay of Maj Gen i.e. Rs 18400 – 500 – 22400 Maj Gens with More Number of Increments will Get Higher Pension because their Last Pay Drawn is Higher But this Benefit is only Till End of 5th CPC i.e. Jan 1996 to Dec 2005 On 1st Jan 2006, in 6th CPC Benefit of Increments ceases All Maj Gens are Treated as if they Earned No Increments

ILLUSTRATIONS

No of Increments Last Pay Drawn In 5th CPC Rs 18400 – 500 - 22400 Pension from Jan 1996 to Dec 2005 18,400 18400 x 0.50 = Rs 9,200 2 18400+ (2 x 500) Rs 9,700 4 18400 + (4 x 500) Rs 10,200 6 18400 +(6 x500) Rs 10,700 8 18400 + (8 x500) Stagnation Rs 11,200 10 18400 + (7 x 500) Rs 11,450

See how Much is the Loss Suffered by these Maj Gens in Jan 2006 Policy of Govt of India is fair and logical. Higher the Increments, higher is the Last Pay Drawn and Higher is the pension But this Benefit is nullified in next CPC i.e. 6th CPC when all are Treated as if they have not Earned any Increment See how Much is the Loss Suffered by these Maj Gens in Jan 2006 This is totally Illogical, Discriminatory and Unjust policy AFTs and Courts of Law intervene to give Justice When Approached

No of Increments / Last Pay Drawn Loss Suffered by Pre – 2006 Maj Gen Post – 2006 Maj Gen in Jan 2006 Loss Suffered by Pre – 2006 Maj Gen Dec 2005 Jan 2006 0 / Rs 18,400 9,200 30,350 0 + DR 2 / 19,400 9,700 31,025 675 + DR 4 / 20,400 10,200 31,720 1,370 + DR 6 / 21,400 10,700 32,435 2,085 + DR 8 / 22,400 11,200 33,925 3,575 + DR 10 / 22,900 11,450 34,705 4,355 + DR

is to Fix Their Pension same as Demand of Pre – 2005 Maj Gens is to Fix Their Pension same as Post – 2006 Maj Gens

What is Bunching of Pay in Next CPC?

Basic Pay in 5th CPC Total Pay in 6th CPC Rs 18,400 (Dec 2005) PIPB Rs 44,700+Notional MSP 6,000+Grade Pay 10,000 = Rs 60,700 Rs 18,900 (1 Increment) Rs 62,050 Rs 19,400 (2 Increments) Rs 62,050 (Bunching) Rs 19,900 Rs 63,440 Rs 20,400 Rs 63,440 (Bunching) Rs 20,900 Rs 64,870 Rs 21,400 Rs 64,870 (Bunching)

Basic Pay in 5th CPC Total Pay in 6th CPC Rs 21,900 Rs 66,340 Rs 22,400 (Max of pay scale) Rs 67,850 Rs 22,900 Rs 69,410 Rs 23,400 Rs 71,020 Rs 23,900 Rs 72,680 (Max not to exceed min of Lt Gen)

Notional Pay Fixation of Maj Gen X

Notional Pay in 6th CPC is Dependent upon Last Pay Drawn in 5th CPC Higher the Number of Increments in 5th CPC, higher is the Last Pay Drawn That Last Pay Drawn in 5th CPC is to be converted to Notional pay in Jan 2006 assuming one is still serving in Jan 2006. Till now Irrespective of Number of Increments Drawn, Pension is fixed at Minimum of the Fitment Table. i.e. Rs 30,350 for Maj Gen in Jan 2006

In Jan 2006, the Pension Corresponding to the Last Pay Drawn hence much higher than Rs 30,350 Assume One is Retired with the Number of Increments in Jan 2006 See the Basic Pay at the time of superannuation in 5th CPC Find the Equivalent Total Pay in 6th CPC Basic Pay of Maj Gen X was Rs 20,900 in scale of pay of Rs 18400 – 500 - 22400 (5 increments)

Corresponding to Rs 20,900 of 5th CPC, Notional Pay in 6th CPC is : PIPB – Rs 48,870 + Grade pay - Rs 10,000 + Notional MSP - Rs 6,000 = Rs 64,870 Notional Pay in Jan 2006 = Rs 64,870 Pension = 0.50 x 64870 = Rs 32,435 pm + DR

Arrears from Jan 2006 to Jun 2014 = Rs 32435 – Rs 30350= Rs 2,085 pm + DR Total Arrears = Rs 2,98,989 Interest from 12 Apr 2016 to 30 Nov 2017 @ 9% = Rs 44,007

Entitled = Rs 38,763 - Rs 32,435 Excess Payment in OROP OROP Arrears paid at Previous pension of Rs 30,350 Now OROP Arrears to be Calculated at Revised Pension of Rs 32,435 Paid on the basis of Rs 38,763 - 30,350 Entitled = Rs 38,763 - Rs 32,435

Excess Payment in OROP Excess payment of OROP Arrears = Rs 79,939 Revised Arrears = Rs 2,63,057 TDS @ 10% = Rs 26,306 Remittance to Banker = Rs 2,36,751

Item Maj Gen A Maj Gen B Maj Gen C Maj Gen D 35,660 34,855 33,925 Revised Pension 35,660 34,855 33,925 32,435 Arrears 7,61,454 6,46,017 5,12,655 2,98,989 Interest @ 9% 1,12,075 95,085 75,456 44,007 Total Arrears 8,73,529 7,41,102 5,88,111 3,42,996 OROP Excess Paid 2,03,585 1,72,722 1,37,066 79,939 Net Arrears 6,69,944 5,68,380 4,51,045 2,63,057 TDS 66,994 56,838 45,105 26,036 To Bank 6,02,950 5,11,542 4,05,940 2,36,751

Deductions Higher Pension is only due to Number of Increments earned in the last rank in 5th CPC Total Service has no effect Inf, Armd, Mech Inf officers have advantage as they get their promotions faster. They can earn higher number of increments in last rank compared to their Course mates in AOC, EME etc But in OROP the number of Increments has no Effect In OROP, it is Total Service thereby it helps Officers from AOC, EME etc who get their promotions late

Thank You