IV CPC Rank Pay Case : Armed Forces win long standing pay battle

The Supreme Court today ordered payment of rank pay arrears to all affected officers estimated to number over 20,000 with effect from January 1, 1986, which would now entail a payout of Rs. 1,600 crore to the exchequer.

The said order will be applicable to all affected officers of the Armed Forces wef 01/01/1986 to 01/01/2006 across board.  It would also be applicable to all pending cases in various courts and AFT’s across the country on the subject case.

The interest will be applicable @ 6% wef 01/01/2006 and not 1986. This is the only change made by the court. The court has also directed that all arrears should be paid within outer limit of 3 months from today ie 04 Sept 2012.

So, the pay and pension of all affected officers of the AF are set to revise from 01/01/1986.

The officers had contended that there was a wrong fixation of rank pay awarded by the Fourth Pay Commission in which the element of rank pay was introduced for all ranks from Captain to Brigadier in the Army and their equivalent ranks in the Air Force and Navy, in addition to pay in the integrated scale.

However, at the time of fixation, the rank pay was first deducted to arrive at the total emoluments and thereafter added after fixation in the integrated scale. This ensured that the final fixation of the total pay of the officer became at par with his civilian counterpart and the edge was neutralised during fixation.

Read More on :  RETIRED DEFENCE OFFICERS ASSOCIATION & NDTV