- In spite of my long and detailed explanation of AFT – 1(OA – 34/2016) filed in Sep 2015 in AFT Delhi and AFT – 1B going to be filed by end of Dec 2017, many officers are asking me a simple question “ How many increments did I get?”.
- May be I was unable to explain to you clearly about the legal case for getting enhanced pension from Jan 2006 to Jun 2014. I will take you from the beginning to the end so that you are very clear of this legal case. Please read and re-read this long mail to understand how your pension is to be fixed corresponding to your Last Pay drawn in 5thCPC ( or even 4th CPC) and not at Minimum pay of your rank for fixing pension in Jan 2006 (6th CPC) as was done by Ministry of Defence. Since your last pay drawn is dependent upon your increments, it is always more than Minimum pay in Jan 2006, you are paid less pension from Jan 2006 to Jun 2014 to all Pre – 2006 retired officers. Major is fixed pension of Rs 1820 whether he earned no increment or 10 increments in 5th CPC. Minimum pay is given to only those Majors who did not earn even one increment. But all Majors serve for minimum period of 7 years. Therefore their last pay drawn in 5thCPC will be Basic pay + increments + rank pay. But in 6th CPC such majors were fixed pension based on Minimum pay as if they did not earn even one increment when they retired.
- Principle.Your pension is to be fixed with your Last Pay Drawn in 5th CPC as if you retired in Jan 2006. Then your pay for purpose of pension will not be at minimum pay of your rank but much higher. Therefore your pension w.e.f. Jan 2006 is also going to be higher. Therefore, you are eligible for arrears for the period Jan 2006 to Jun 2014 as you were paid pension at Minimum pay of your rank. Increments will only help you to arrive at your Last Pay Drawn. You get your first increment after you put in one year of service in the rank. If you have not earned even one increment (which is improbable) in 5th CPC period then this mail is of no use to you as you are not going to get any arrears.
- How do you get higher pension from Jan 2006 to Jun 2014?
To understand the legal case, let us take an illustration of Major who retired in Jun 2005 with total service of 20 years. That indicates he must have assumed the rank of Major when he put in 13 years’ commissioned service (for tech grad it is 11 years commissioned service due to their two years ante date seniority and for SS officers it is 14 years 2 months). Assume he is an officer commissioned from IMA, Dehradun. He would have assumed the rank of major seven years (total service of 20 years – 13 years to get rank of Major) in Jun 1998 ( Jun 2005 – 7 years).
- Pay scale of Major in 5thCPC is Rs 11600 – 325 – 14850. That means in Jun 1998 he is fixed pay of Rs 11,600 pm which is the minimum of the rank. With his rank pay his pay drawn is Rs 11600 +1200 = Rs 12,800 pm. Let us see how his pay drawn (less rank pay) progresses till Jun 2005, date of retirement with increment of Rs 325 for every year of service.
|Ser No||Year||Basic Pay|
|2||Jun 1999||11600 + increment of 325 = 11925|
|3||Jun 2000||11925 + 325 = 12250|
|4||Jun 2001||12250 + 325 = 12575|
|5||Jun 2002||12575 + 325 = 12900|
|6||Jun 2003||12900 + 325 = 13225|
|7||Jun 2004||13225 + 325 = 13550|
|8||Jun 2005||13550 + 325 = 13875|
- When he retires in Jun 2005 his last pay drawn is = Basic Pay + Rank Pay = Rs 13875 +1200 = 15075
- Pension sanctioned should have been = Rs 15075 x 0.50 = Rs 7,538 pm + DR for every six months from Jul 2005 to Dec 2005.
- Pension Fixation in 6thCPC. When 6th CPC comes in Jan 2006, his last pay drawn is treated as if it is only Rs 11600 + 1200 = Rs 12,800 pm which is the minimum for Major, whereas he actually drew Rs 15,075 till Jun 2005. The Government of India treats this Major as if he earned no increments and his pension in Jan 2006 is fixed corresponding to minimum pay of Major in 6thCPC which as per SAI 2/S/2008 is Rs 18,205. This is to save money on pensions and there is no other explanation I can offer. Whereas, if his Last Drawn Pay is protected for pension then corresponding to Rs 15,075 in 5th CPC (Rs 13875 + Rank pay of Rs 1200) in SAI 2/S/2008 the notional last pay is Rs 40,640 in Jan 2006. His pension therefore w.e.f. Jan 2006 should be Rs 40640 x 0.50 = Rs 20,320. But Govt of India fixes pension at Minimum pay of Major in Jan 2006 i.e with no increment at Rs 18,205. The loss therefore the Major suffers is Rs 20320 – 18205 = Rs 2115 pm + DR for every six months from Jan 2006 to Jun 2014. You can understand this subtle difference : even though he retired in Jun 2005 with last pay of Rs 15,075 treat as if he retired in Jan 2006 i.e. notionally. Then his pension will be Rs 20,320 than minimum of his rank i.e. Rs 18,205 which he was paid from Jan 2006 to Jun 2014.
- Arrears from Jan 2006 to Jun 2014.
|DR in %||DR Amount||Total Arrears Per Month||Arrears for the Period with DR|
|1||Jan to Jun 2006||2,115||0||0||2,115||12,690|
|2||Jul to Dec 2006||2,115||2||42||2,157||12,944|
|3||Jan to Jun 2007||2,115||6||127||2,242||13,451|
|4||Jul to Dec 2007||2,115||9||190||2,305||13,832|
|5||Jan to Jun 2008||2,115||12||254||2,369||14,213|
|6||Jul to Dec 2008||2,115||16||338||2,453||14,720|
|7||Jan to Jun 2009||2,115||22||465||2,580||15,482|
|8||Jul to Dec 2009||2,115||27||571||2,686||16,116|
|9||Jan to Jun 2010||2,115||35||740||2,855||17,132|
|10||Jul to Dec 2010||2,115||45||952||3,067||18,401|
|11||Jan to Jun 2011||2,115||51||1,079||3,194||19,162|
|12||Jul to Dec 2011||2,115||58||1,227||3,342||20,050|
|13||Jan to Jun 2012||2,115||65||1,375||3,490||20,939|
|14||Jul to Dec 2012||2,115||72||1,523||3,638||21,827|
|15||Jan to Jun 2013||2,115||80||1,692||3,807||22,842|
|16||Jul to Dec 2013||2,115||90||1,904||4,019||24,111|
|17||Jan to Jun 2014||2,115||100||2,115||4,230||25,380|
|Legal Fees paid to TSEWA||5,000|
|Net Gain sitting at Home||298,291|
- Pension of Majors who Get Promoted Earlier than 13 Years.We know Infantry officers in field area are promoted to the rank of Acting Major in 6 years of service. That means he would have served as Major for 14 years by the time he seeks and gets Premature retirement (if not promoted to the rank of Lt Col). Let us see how if he retires in Dec 2005 (i.e. just one month before end of 5th CPC period) in the rank of Major with total service of 20 years, how much loss he will suffer :-
|SER NO||YEAR||BASIC PAY||INCRE- MENT||NEW BASIC PAY|
|1||Dec 1991 to Nov 1992||3,400||0||3,400|
|2||Dec 1992 to Nov 1993||3,400||100||3,500|
|3||Dec 1993 to Nov 1994||3,500||100||3,600|
|4||Dec 1994 to Nov 1995||3,600||100||3,700|
|FIXATION OF PAY IN 5TH CPC|
|DA @ 111%||6660|
|IR – 1||100|
|IR – II @ 10%||430|
|Fitment @ 40% of Basic Pay + Rank Pay||1760|
|Total Initial Pay in 5th CPC||13,360|
|Pay Scale in 5th CPC is Rs 11600 – 325 – 14850|
|6||Dec 1996 to Nov 1997||13,550||0||13,550|
|7||Dec 1997- Nov 1998||13,550||325||13,875|
|8||Dec 1998- Nov 1999||13,875||325||14,200|
|9||Dec 1999- Nov 2000||14200||325||14,525|
|10||Dec 2000 – Nov 2001||14,525||325||14,850||Ceiling of pay scale is reached|
|11||Dec 2001 – Nov 2002||14,850||0||14,850||Stagnation|
|12||Dec 2002-Nov 2003||14,850||0||14,850|
|13||Dec 2003 – Nov 2004||14,850||325||15175||One Stag increment for every two years of service to be paid in third year|
|14||Dec 2004 – Nov 2005||15175||325||15,550|
|15||2005 Dec||15,550||0||15,550||Stagnation. Maximum three Stag increments permitted|
- Notional Last Pay Drawn in Jan 2006 Corresponding to Last Pay Drawn in Dec 2005 of Rs 15550 + Rank Pay of Rs 1200 as Per SAI 2/S/2008.The Last Pay Drawn in Jan 2006 is Rs 43,670 corresponding to Last Pay drawn of Rs 16,750 in Dec 2005. Pension is Rs 0.50 x 43670 = Rs 21,835 pm. But he is fixed pension as if he did not earn any increment though he earned 14 increments till he retired. The loss he suffers is Rs 21835 – 18205 = Rs 3,630 pm + DR for every six months.
|Ser No||Period||Arrears||DR in %||DR Amount||Total Arrears Per Month||Arrears for the Period with DR|
|1||Jan to Jun 2006||3,630||0||0||3,630||21,780|
|2||Jul to Dec 2006||3,630||2||73||3,703||22,216|
|3||Jan to Jun 2007||3,630||6||218||3,848||23,087|
|4||Jul to Dec 2007||3,630||9||327||3,957||23,740|
|5||Jan to Jun 2008||3,630||12||436||4,066||24,394|
|6||Jul to Dec 2008||3,630||16||581||4,211||25,265|
|7||Jan to Jun 2009||3,630||22||799||4,429||26,572|
|8||Jul to Dec 2009||3,630||27||980||4,610||27,661|
|9||Jan to Jun 2010||3,630||35||1,271||4,901||29,403|
|10||Jul to Dec 2010||3,630||45||1,634||5,264||31,581|
|11||Jan to Jun 2011||3,630||51||1,851||5,481||32,888|
|12||Jul to Dec 2011||3,630||58||2,105||5,735||34,412|
|13||Jan to Jun 2012||3,630||65||2,360||5,990||35,937|
|14||Jul to Dec 2012||3,630||72||2,614||6,244||37,462|
|15||Jan to Jun 2013||3,630||80||2,904||6,534||39,204|
|16||Jul to Dec 2013||3,630||90||3,267||6,897||41,382|
|17||Jan to Jun 2014||3,630||100||3,630||7,260||43,560|
|Legal Fees paid to TSEWA||5,000|
|Net Gain sitting at Home||515,542|
- Conclusion. Majors / Lt Cdrs / Sqn Ldrs are the biggest beneficiaries when TSEWA wins the case OA – 34/2016 filed in AFT Delhi as they would have held the rank for minimum 7 years as they get promoted to the rank of Major after 13 years of service and take premature retirement at 20 years. Some Infantry Officers hold the rank for maximum of 14 years and their arrears will be highest. It is the last pay drawn in 5th CPC which determines how much should be your notional pay in Jan 2006 and not the minimum pay which Govt of India adopted. The courts of law have dismissed the argument of Govt of India and Maj Gens who fought on the simple principle that Last Pay Drawn in 5th CPC cannot be ignored and pension w.ef. Jan 2006 cannot be fixed at Minimum pay of the rank.
- In spite of this elaborate explanation with simple tables if you still have any doubt please give me a ring and do not ask me to work out your increments.
Brig CS Vidyasagar (Rtd)