AFT Cases / Pension

AFT – 29 : Notional Pay Method Gets Higher Pension as on Jan 2016 For Pre – 2013 Retired Officers

Dear Sir,

  1. The Govt of India approved pension to all pre – 2016 Armed Forces Pensioners w.e.f Jan 2016 in 7th CPC by two methods as under;-

(a)   Method 1.   Notional Pay Method.
(b)   Method 2.  2.57 Method

  1. 2.57 Method All pre – 2016 pensioners have been revised pension of Dec 2015 and multiplying it with 2.57. Since all of you very familiar with this method, there is no need for me to elaborate on it. All pre – 2016 pensioners are drawing pension as on today by this method.
  2. Notional Pay Method. Whenever a pensioner retired, the basic pay with stagnation increments if any is to be brought to the minimum of pay in the next CPC and finally arrive at notional pay as on Jan 2006. Multiply it by 2.57 and see the figure closest to it in Defence Pay Matrix for the rank. That is the Notional pay and add MSP of Rs 15,500 for officers. 50% of it is the pension as on Jan 2016.
  3. Pension Fixation as on Jan 2016. Govt of India approved fixation of pension as on Jan 2016 by the method which gives higher pension out of 2.57 method or Notional Pay Method. Govt of India, Min of Def gave a policy letter on this method vide their letter No:  17(01)/2017/(02)ID(Pension/Policy) dated 05 Sep 2017. You can see four illustrations how pension of pre – 2016 officers have been arrived at by Notional pay method. The letter says this method is not beneficial for pre – 2013 pensioners.

Disagreement of Stand of Govt of India on Notional Pay Method for Pre – 2016 Armed Forces Pensioners.

  1. All Armed Forces pensioners are sanctioned OROP as in Calendar year 2013. It simply means whenever you retired (1976 or 1986 or 1996 or pre – 2013) you are deemed to have retired in calendar year 2013 and your pension is same as average of Maximum and Minimum of officers of your rank and your length of service. The tables of pension have been given in Circular 555 of PCDA (Pensions) Allahabad.
  2. Therefore your pension by notional pay method is to be worked out not from Jan 2006 as was done by Min of Def but from Jul 2014. For example the pension of Lt Col with 32 and above years of service in OROP is Rs 34,765 where as it is only Rs 26,265 as on Jan 2006.

Notional pay as on Jul 2014 = Pay in Pay Band + Grade Pay + MSP
Pension = 0.50 x (Pay in Pay Band + Grade Pay + MSP)
Pay in pay band + Grade pay = (2 x pension) – MSP of Rs 6000
For Lt Col of 32 and above years of service = Rs 2 x 34765 – 6000
= Rs 63,530
Notional Pay in Jan 2016  = Rs 63530 x 2.57 = Rs 1,63,272
Notional pay in Def Pay Matrix for Lt Col = Rs 1,67,700
Total Notional pay with MSP of Rs 15500 = Rs 167700 + 15500
Pension by Notional Pay Method = 0.50 x (167700 +15500) = Rs 91,600
Pension by 2.57 Method = Rs 34765 x 2.57 = Rs 89,346
Gain by Notional Pay Method = Rs 91900 – 89346 = Rs 2,254 + DR @ 5%

  1. I projected this case to Brig SKS Rana, VSM, President, Legal Division of TSEWA. He consulted two advocates of TSEWA and today he informed me that both the advocates of TSEWA have confirmed that the case is fit for filing in AFT Delhi.
  2. Detailed Calculations. I have worked out the pension by Notional pay method for all Officers from the ranks of Hony Lt to Maj Gen and found that this method gives higher pension than 2.57 method. The calculations are given in the attachment. I as Brig with 32 years’ service gains only by Rs 390 In Jan 2016. Yet, I am joining the legal case to be filed in AFT Delhi as a matter of principle and to tell the Government of India dominated by babus of IDAS and IAS that even if get Re 1 less, I will drag them to the court of law.
  3. Disclaimer. The details of gain in pension if we win the case in AFT Delhi is a one man job. Needless to say it is a very tedious job. I have done checking and rechecking. I am likely to have made some mistakes in my calculations. You are to check my calculations in the attachment. If you find any mistake in my calculations, do point them out. It is your responsibility to see what I have done is correct. Don’t blame me later.
  4. The Notional Pay method is correct for Civilians as their pensions were not enhanced after Jan 2006. On the other hand the pension of faujis has been enhanced w.e.f. Jul 2014 by OROP. Therefore the method adopted for civilians cannot be applied to faujis.
  5. Eligiblity.

(a) All pre – 2016 retired officers of the ranks of Hony Lt to Maj Gen irrespective date of retirement.
(b) Wives of deceased Officers of the ranks of Hony Lt to Maj Gen irrespective date of retirement.

  1. Legal Fees.

(a)  Hony Lt to Maj Gen         –        Rs 5,000 to be remitted by NEFT or Cheque
(b)  Wives of Deceased Officers –  Rs 3,000 to be remitted by NEFT or cheque or internet banking transfer

  1. Details of our Account for Remittance of Legal Fees by Internet Banking / NEFT.

(a)   Account No:   35238730663
(b)  Name of Account: TSEWA –AFT
(c)  Name of Bank: SBI, Bhaskar Rao Nagar, Sainikpuri (PO), Secunderabad
(d)  IFSC :  SBIN 00015568

Note: All those interested to remit money through internet banking and NEFT are requested to intimate to Col Dr GB Sethi, General Secretary and Lt Col G Parvathesam, Treasurer your transaction details including bank from where you did NEFT, your account no, your rank & name.

  1. Nomenclature. This case is given No: AFT – 29: Incorrect method of pension fixation by Notional Pay Method for Pre – 2016 pensioners. All those who are likely to gain pension as on Jan 2016 by the Notional pay method are welcome to join the case soon to be filed in AFT Delhi. You are requested to contact Col Dr GB Sethi, General Secretary, TSEWA at gb_sethi@yahoo.co.in and mobile no: 9440859877 to join the legal case. He will send you legal documents like vakalatnamas and two undertakings by e-mail. You are requested to sign them and send them by post with a cheque for Rs 5,000/Rs 3,000 in favour of TSEWA –AFT and dispatch your documents (hard copy) to the following address till we are able to find an All India Coordinator :-

Col Dr GB Sethi (Rtd)
General Secretary, TSEWA
143, Vayupuri
Park Link Road, Near 2nd Cross Road
Sainikpuri (PO)
Secunderabad – 500094.

  1. All India Coordinator.  We need a volunteer to be our All India Coordinator to collect all documents from petitioners for this case and send them weekly or fortnightly intervals to Col Dr GB Sethi, General Secretary, TSEWA. Once, he is selected then all petitioners are to deal with him for this legal case AFT – 29 till the case is finalised. All India Coordinator can be from any place in India. He needs to have desk top computer or laptop and postal address to correspond with petitioners. I request one of the former All India Coordinators to volunteer again as you are very familiar with the procedure.
  2. Lead Petitioner. As per the requirement of AFT Delhi, one of the petitioners has to be a lead litigant in whose name the case is to be filed. For example Lt Col AB Singh and 102 others Vs Union of India. He is to have a Delhi NCR address.
  3. Humble Request. I humbly request petitioners to kindly take up the job of All India Coordinator and Lead petitioner. All expenditure you incur for postage or travel or telephone charges etc will be fully reimbursed. Unless we get an All India Coordinator and Lead petitioner, TSEWA may not be able to file the case. All of us will continue to suffer till eternity. I can assure the amount of goodwill you will get after the case is filed and when we win the case cannot measured by any amount of money.
  4. Govt of India letter dated 05 Sep 2016 shows how you have been taken for right royal ride. Unless you wake up from deep slumber and fight for your right, you will continue to suffer financially.
  5. Filing of Case in AFT Delhi. It may please be understood the legal fees is deliberately kept so low to make it affordable. We need to get 100 petitioners for this case to be economically viable. Do not therefore keep pestering us as to when we will file the case. It may take three months as lot of hard work goes in collecting legal documents, preparing legal brief and memo of parties, checking documents at five stages right from the time we receive the documents to filing them in AFT, Delhi.
  6. Responsibilty of TSEWA. Our responsibility is limited to get you the judgment. Thereafter petitioners have to take up a case individually with their service HQ to get their dues. However TSEWA will render all possible help to get Corr PP enhancing your pension as on Jan 2016 but that be treated as bonus.
  7. Instant Result.Some officers want the case to be filed tomorrow and get the judgment day after tomorrow. The advocates do not argue our case free. Unless we pay them decent sum, they will not take up our case. You cannot get judgment at Rs 5,000 and in a jiffy. So do not join our case if you want judgment on your lap like Maggie noodles in 2 mins.

Warm regards,

Brig CS Vidyasagar (Rtd)
President, TSEWA
10 Oct 2017

To see attachment, please click on the link below. It will open in a new tab in your browser.

JUL 14, 2017 OFFRS WHICH METHOD BETTER

 

 

 

 

2 Comments

  1. Dear Col(Dr) Sethi
    What you have mentioned about AFT 29 is correct. I appreciate your efforts and ‘ Straight to the point approach’ . I would like to join the AFT-29 case . I shall come to meet you today or tomorrow to complete the formalities.
    Thanks &Regards
    Lt Col B L N Prasad(Retd)
    TSEWA membership no 4433

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