Revision of 43% and 45% commuted portion of pension of pre 2006 Armed Forces absorbees

Revision of 43% and 45% commuted portion of pension of pre 2006 Armed Forces absorbees who had drawn lump sum payment on absorption in Public Sector Undertaking/ Autonomous bodies – Stepping up of notional full pension with effect from 24.9.2012: DESW Order 

No 1(1)/2014/D(Pen/Policy)

Government of India

Ministry of Defence

Department of Ex-Servicemen Welfare

New Delhi Dated 16 October, 2014

The undersigned is directed to refer this Ministry’s letter No I(4)/07/D(Pen/Policy) dated 1 21.8.2009 amended vide letter No 1(4)/2007-D(Pen/Policy) dated 9.2.2011 regarding revision of restored amount of commuted portion of pension as well as notional full pension with effect from 1.1.2006 in respect of pre 2006 Armed Forces Personnel absorbees who had drawn lump sum payment on absorption in Public Sector Undertakings/ Autonomous Bodies and have become entitled for restoration of 45% of pension in the case of PBOR and 43% of pension in the case of Commissioned officers. The payment of dearness relief and additional pension to old pensioners are regulated on the basis of the notional full pension.

2. A Committee of Secretaries headed by Cabinet Secretary was constituted. by the Government to consider various issues of Armed Forces. The said Committee had recommended to determine minimum guaranteed pension at fifty percent of the minimum of the fitment tables for the rank in the revised pay structure introduced under Sixth CPC. In case of JCO/OR, the Committee had recommended to determine revised pension equal to fifty percent of the highest of Notional pay in the revised pay structure of Sixth CPC corresponding to the maximum of pay scales of Fifth CPC across the three Services for the rank & group. Accordingly, the President is pleased to decide that with effect from 24th September 2012, the notional full pension of the commissioned officers absorbee pensioners determined in terms of this Ministry’s above said letter dated 21.8.2009 shall be stepped up to fifty percent of the minimum of the fitment tables for the rank in the revised pay band as indicated under fitment tables annexed with SAI 2/S/2008 as amended (for regular commissioned officers), SAI 4/S/2008 as amended (for commissioned officers belonging to AMC/ADC/RVC and were in receipt of NPA) and equivalent instructions for Navy & Air Force, plus the Grade pay corresponding to the pre-revised scale from which the pensioner had retired/discharged including Military Service Pay where applicable. The President is also. pleased to decide that with effect from 24th September 2012, the notional full pension of the JCO/OR absorbee pensioners determined in terms of this Ministry’s above said letter dated 21.8.2009, shall also be stepped up to fifty percent of the notional maximum of the fitment tables for the rank and group in the revised pay band as indicated under fitment tables annexed with SAI 1/S/2008 as amended and equivalent instructions for Navy & Air Force, plus the Grade pay corresponding to the pre-revised scale from which the pensioner had discharged including Military Service Pay and ’X’ Group pay where applicable. The amount so determined shall be reduced prorata where the Armed Forces absorbee had less than the maximum required service to earn full pension. While determining revised full pension in terms of these orders, weightage in qualifying service shall not be allowed, as hithertofore.

3. No arrears of deamess relief and additional pension on notional full pension would be payable for the period prior to 24.9.2012. Cases in which the pension of the Armed Forces absorbee pensioners drawing notional full pension in terms of this Ministry’s letter dated 21.8.2009, happens to be more than the notional full pension determined in terms of these orders, such absorbee pensioners shall continue to draw the beneficial award. However, if a Armed Forces absorbee pensioner to whom the benefits under these orders accrue has died/dies before receiving the payment on account of arrears, the life time arrears (LTA) will be disposed of as per the extant orders.

4. The other terms and conditions prescribed vide this Ministry’s above mentioned letter dated 21.8.2009 as amended, which are not affected by the provisions of this letter, shall remain unchanged. Pension Sanctioning Authorities shall revise notional full pension of absorbee pensioners’ suo moto by issue of revised Pension Payment orders, where the restored pension has already been revised in terms of this Ministry’s above said letter dated 21.8.2009. 

5. These orders issue with the concurrence of MoD (Finance/PeHSion) vide their ID No 31(08)/09/Fin/Pen dated 17.07.2014

Yours faithfully

[Prem Parkash]

Under Secretary (Pension/Policy)