Understanding Concordance Tables for Notional Pay Method of Pension Fixation for Pre – 2016 Pensioners

Dear Cdr Sudhir Dua,

  1. Thank you for your Whatsapp Post asking me to explain about the Concordance tables issued by Min of Def. I have sent a number of mails giving my comments on the Concordance tables issued by Govt of India, Min of Def vide their letter No: 17(01)/2017/(02)/D (Pensions/Policy) dated 17 Oct 2018 to fix pension of Pre – 2016 pensioners by Notional Pay Method of Pension Fixation in TSEWA Yahoo Mail Groups. Had you been a member of TSEWA and seen regularly mails coming from the TSEWA Yahoo Mail Group, by now you would have realized that for Pre – 2013 pensioners the Notional Pay method adopted by the Govt of India, Ministry of Defence is not beneficial.


  1. I get the impression DAD personnel deliberately give wrong advice to the Min of Def to ensure faujis do not get their entitlements unless they go to AFTs and Hon’ble Supreme Court to get their dues. Whenever it suits them, they say whatever is applicable to the civilians is given to the faujis.
  2. Non-Applicability of Notional Method Adopted for Civilians to the Ex-Servicemen Due to OROP. What you have to understand is the transition of pay from the date of retirement to Jan 2016 by enhancing it in subsequent CPC periods by fitment factor for each intervening CPCs is correct for civilians. Central Govt Civilian employees were not given OROP. Hence there is no change in their date of retirement. Pre – 2013 defence pensioners were sanctioned OROP based on Average pension of those who actually retired in calendar year 2013. Therefore, the date of retirement is to be taken as calendar year 2013 for all Pre – 2013 Ex-Servicemen who got benefitted by OROP irrespective of their date of retirement. For example I retired in Mar 2004 which lost its relevance and my notional date of retirement is to be taken as in calendar year 2013. From my OROP pension, the pay is to be worked out. This is explained in subsequent paras.
  3. What is OROP?  Pensions in OROP for all ranks retired prior to calendar year 2013 was fixed by taking the Average pension of those who actually retired in calendar year 2013 and fixing the same for Pre – 2013 pensioners of the same rank and same length of service. Let me give my own example to make you understand how to see the Concordance tables and find out your pension by the Notional Pay method of pension fixation. I, as Brig retired on 31 Mar 2004 with qualifying service of 32 years with last drawn pay of Rs 18,050 + 450 (stagnation increment). But in OROP, I have been considered as if I retired notionally in calendar year 2013. That is why my pension from Jan 2006 to Jun 2014 has been enhanced to Average Pension of  Brig / Cmde / Air Cmde with 32 years of service who actually retired in calendar year 2013. My increase in pension was from Rs 29,145 (Jan 2006 to Jun 2014) to Rs 37,280 in OROP. My pension cannot be enhanced unless my date of retirement is also notionally enhanced to calendar year 2013.
  4. You as a Pre – 2013 pensioner cannot get pension of those who actually retired in calendar year 2013 of your rank and your total service unless you are notionally retired in 2013.  The method is known as Notional Pay method of pension fixation. Therefore, your pension as Pre – 2013 pensioner is to transit with. Notional pay from 2013 (OROP) to 2016 and not from your date of retirement.
  5. Transition from Date of Retirement. I have gone through the concordance tables for my rank of Brig. I took up my own case to explain how Govt of India, Ministry of Defence worked out Notional Method of Pension fixation. I retired in Mar 2004 i.e. 5th CPC period with my pay being Rs 18,050 + 450 stagnation increment. Now my pay has to be enhanced to 6th CPC. My notional pay corresponding to my pay of Rs 18,050+450 vide SAI 2/S/2008 is Rs. 54,950 (=Pay in Pay Band of Rs 46,050 + Grade pay of Rs 8,900). MSP is excluded.   This is the pay I would have drawn had I been in service in Jan 2006 (but I retired in Mar 2004, hence this is known as Notional Pay). Then this Notional Pay in Jan 2006 of 6th CPC has to be taken to Jan 2016 of 7th CPC by multiplying Rs 54,950 with Fitment Factor of 2.57 which comes to Rs 1,41,222. Since Rs 1,41,222 cannot be less than what is given in Def Pay Matrix, I look to a figure closest to Rs 1,41,222 in Def Pay Matrix (with IOR of 2.67). The nearest figure which is higher than Rs 1,41,222 is Rs 1,43,800. Add MSP of Rs 15,500 to come to the figure of Rs 1,59,300 which is my Notional pay in 7th CPC. Therefore, my pension by Notional pay method is 0.50 x 159300 = Rs 79,650. But my pension by 2.57 method is Rs 37280 (OROP)  x 2.57 = Rs 95,810 pm. Therefore, pension of all Pre – 2013 pensioners (who got benefitted by OROP) in Jan 2016 by Notional Pay Method is lesser than OROP x 2.57 method.
  6. Your Revised Pay by Not Deducting Rank Pay. Our basic pay was revised in 2013 thanks to Maj AK Dhanapalan who fought the case of rank pay and thereafter RDOA who went right up to Hon’ble Suprme Court. Earlier the PCDA (O) Pune deducted after rank pay arrears from our total pay to fix our basic pay. Therefore, your basic pay at the time of retirement if you are a pensioner of 4th CPC or beyond is to be re-worked to come to the correct basic pay. You got arrears of rank pay in two instalments in 2013 and 2014. My basic pay was Rs 18,050 only when I retired in Mar 2004. But due to revision of basic pay when rank pay was not deducted from my total pay in 5th CPC, it has gone up to Rs 18050+450 (stagnation increment) at the time of my retirement in Mar 2004. Therefore, you have to see what was your revised basic pay as given in Due – Drawn statement of PCDA (O) Pune (and not what is mentioned in your PPO) when they gave you rank pay arrears. As expected, whenever there is change in basic pay & pension, PCDA (Pensions) Allahabad (now Prayag Raj) should have issued Corr PPO showing our correct basic pay and pension but they do not. Yet they get NFFU for not doing their jobs.
  7. Who Benefits from Notional Pay Method?  This method is beneficial to only those who retired in calendar year 2014 and 2015. Govt of India, Min of Def explained the method of fixation of pension of Notional Pay Method vide their letter 17(01)/2017/(02)/D(Pension/Policy) dated 05 Sep 2017. I am attaching this letter to this mail. This clearly shows those who retired in 2014 and 2015 get higher pension by Notional Pay Method  than 2.57 x Pension at the time of retirement.

How are the Concordance Tables Made?
Click here to view Concordance Tables in  Min Of Def Letter dated 18 Sep 2017.

  1. Def Accts Dept guys made these Concordance tables by taking pay scale of each CPC from 4th to 6th and matrix pay given in Def Pay Matrix for each notional pay scale. For example, my basic pay revised as given in Due – Drawn Statement by PCDA (O) Pune, after rank pay arrears is Rs 18,050 +450. The corresponding pay in 6th CPC is my Notional pay (since I retired in Mar 2004 in 5th CPC) is Rs 54,950 (Pay in Pay Band of Rs 46,050 and Grade pay of Rs 8,900). This is what is given in SAI 2/S/2008. Had I retired in Jan 2006, my basic pay would have been Rs 54,950. Corresponding to notional pay of 6th CPC, my matrix pay w.e.f. Jan 2016 in 7th CPC is Rs 1,48,100.

How to see the Concordance Tables?

  1. If you want to know whether Notional Pay Method is beneficial to you, see the Concordance Tables for your pay minus Rank pay of 4th to 5th CPC and MSP of 6th CPC. It is just your basic pay you have to see. Your basic pay at the time of retirement is what is given in Due – Drawn Statement made by PCDA (O) Pune when rank pay arrears were paid to you in two instalments i.e. first one in 2013 and second one in 2014. Do NOT take basic pay given in your PPO as it is after deducting Rank Pay if you are a Pre – 2013 pensioner. See how much is your notional pay in subsequent CPCs. Finally go to the last column of the Concordance Tables which shows your Notional Pay in Def Pay Matrix as on 01 Jan 2016. Add MSP of Rs 15,500 to it and your pension as on 01 Jan 2016 by Notional pay method is 0.50 x (Notional pay given in last column + Rs 15500). This is how the Concordance table looks:

Pay Range

Basic Pay

4th CPC: Jan 1986 to Dec 1995 Rs 2300 – 100 – 3900 – 150 – 5100
Rank Pay : Rs 1,200
Min Pay    : Rs 4,950
5th CPC: Jan 1996 to Dec 2006 Rs 16,700 – 450 – 18,050
Rank Pay : Rs 2,400
6th CPC: Jan 2006 to Dec 2015 PB – 4; Rs 37,400 – 67,000
Grade Pay : Rs 8,900
Corresponding Level w.e.f Jan 2016 Pay Matrix 13A


Basic Pay
From Jan 1986 to Dec 1995
Basic Pay from Jan 1996 to Dec 2006 Basic Pay from Jan 2006 to Dec 2015 Pay Range for Pensioners Retired During 01 Jan 2006 to 31 Dec 2015 Notional Pay as on 01 Jan 2016
Minimum Maximum
4950 16700 52290 54130 139600
5100 16700 52290 54310 139600
5100+150 16700 52290 54310 139600
5100+300 17150 53600 54310 139600
5100+400 17150 53600 54310 139600
17600 53600 54130 139600
18050 54950 54320 55950 143800
18050+450 54950 54320 55950 143800
18050+900 56340 55960 57620 148100
18050+1350 56340 55960 57620 148100
  1. Your Notional Pay. In similar manner, you need to see what was your revised basic pay after rank pay arrears. Basic pay mentioned in your PPO is after deducting rank pay arrears which is incorrect. The revised basic pay is given in Due – Drawn statement of PCDA (O) Pune /PCDA(Navy) Mumbai / Joint CDA (AF) Delhi Cantt which you got at the time of remittance of rank pay arrears. If you have not got it, then approach them under RTI Act 2005 to supply a copy of your Due – Drawn Statement. My basic pay before revision was Rs 18,050 and after revision it is Rs 18,050+450. For my revised basic pay of Rs 18050+450 in 5thCPC, I just need to go to last column of Concordance tables and my notional pay as on 01 Jan 2016 is shown as  Rs 1,48,100. Add MSP of Rs 15,500. My pension as per Notional Pay method is 0.50 x (148100+15500) = Rs 79,650. I am attaching Concordance tables to this mail for you to see how much is your pension as per Notional Pay Method of pension fixation. If you are Pre – 2013 pensioner, then this method is not beneficial.

What is the Alternative?

  1. TSEWA carried out in depth analysis and concluded that even Pre – 2013 pensioners having been granted OROP are to be treated as if they are notionally retired in calendar year 2013. Therefore, our actual date of retirement has no meaning. Date of retirement even for Pre – 2013 pensioners is 2013 due to OROP and they are to be treated as if they retired notionally in 2013.
  2. Benefit of Higher Pension to Pre – 2013 Pensioner by Notional Pay Method Only when Transition is done from Calendar year 2013 to 2016. If my pension of OROP is converted into Notional pay, this comes out as under:-

(a)     Pension in OROP for Brig with 32 years’ service = Rs 37,280
(b)     Pension = 0.50 x (Pay in Pay Band + Grade Pay + MSP of Rs 6000)
(c)   For Increment only Pay in Pay Band + Grade pay is taken and increment is 3%.
(d)     Notional Pay in 2013 = Rs (2 x 37280) – 6000 = Rs 68,560
(e)     Notional Pay in 2014 = Notional Pay in 2013 x 1.03
(f)      Notional Pay in 2015 = Notional Pay in 2013 x 1.03 x 1.03 = Rs 72,735
(g)     Notional Pay in Jan 2016 = Rs 72735 x 2.57 (fitment factor) = Rs 1,86,930
(h)     Notional Pay cannot be less than what is given in Def Pay Matrix with IOR of 2.67 = Rs 1,87,700.
(j)      Notional pay with MSP of Rs 15500 = Rs 187700+15500
(k)     Pension by Notional Pay Method = 0.50 x (187700 + 15500) = Rs 1,01,600
(l)      Pension by 2.57 method = Rs 37280 (OROP) x 2.57 = Rs 95,810
(m)    Loss by not fixing pension by Notional Pay Method = Rs 101600 – 95810 = Rs 5,790 per month from Jan 2016.

Note: All Post – 2013 Brigs with 32 years’ service get Rs 1,01,600 or more as pension.

  1. Are my Calculations Correct? If you go through Govt of India, Min of Def letter No: 17(01)/2017/(02)/D(Pension/Policy) dated 05 Sep 2017 on Notional Pay Method, you find the pension of Brig with 35 years’ service who retired in May 2014 is Rs 1,01,600. His pension by 2.57 method is Rs 1,00,295. Therefore, for Post – 2013 pensioners, the pension fixation by Notional Pay method is more beneficial. When I worked out my pension by Notional pay method from 2013 and not from my date of retirement (of Mar 2004), my pension also came to Rs 1,01,600 pm. See para 11(k). Therefore, my calculations appear to be correct. Click here to view the Min of Def letter dated 05 Sep 2017.
  2. Proposed Action by TSEWA. TSEWA will file a case titled AFT – 29 in AFT Delhi by end of Oct 2018 praying our notional date of retirement to be taken as calendar year 2013 (since we got OROP) and work out our pension by Notional Pay Method by making fresh Concordance tables. This will give higher pension from Jan 2016 than what we are drawing by 2.57 x OROP method. Since I am convinced of TSEWA’s logic, I also became a petitioner of AFT – 29. I will get higher pension w.e.f. Jan 2016 as explained in para 8 above if our prayer is heard, understood our rationale and we win the case in AFT Delhi. Our fight is not with Min of Def on this issue but with CGDA who deliberately deny any benefit to faujis. The method suggested by TSEWA if accepted by AFT Delhi will enhance pension of all ESMs and Family pensioner of Pre – 2013 vintage.
  3. Kindly go through TSEWA Blog at https://www.tsewa.org. TSEWA keeps giving very useful information on pensions and arrears from time to time.


  1. Arabinda Bhattacharjee

    Dear Sir, I am Ex Hony Flg Offr Arabinda Bhattacharjee retired under 6th CPC on 2010. Your detailed explanation has cleared me many of doubts. I was in a doubt whether MSP also need to be added along with GP and last pay to calculate notional pay. The doubt aroused by reading annex 1 and 2 of attached MOD letter with PCDA circular 585 for both men and officer on the table under 6th CPC. It is not understood why MSP(under 6th CPC) should not be added for calculating Notional Pay. If you can kindly explain the correctness of the annex 1 and 2,I will be thankful to you.
    Thanks and Regards,
    A Bhattacharjee

    September 30, 2020 Reply
  2. Brig R Vinayak, VSM

    My compliments to Brig CS Vidyasagar for the detailed explanation making it crystal clear to even a layman. Thanks Sir.

    October 22, 2018 Reply

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