Pension

Why Hony Lt Retired in May 2015 Gets Lesser Pension Than Pre – 2013 Hony Lt?

WHY HONY LT RETIRED IN MAY 2015 GETS LESSER PENSION THAN PRE-2013 HONY LT ?

In response to a query from a veteran who retired as SM (Hony Lt) wef 01 May 2015 about which method of pay fixation is beneficial, here are the workings:

 

Pension by Notional Pay Method w.e.f. Jan 2016

Basic Data
Rank Hony Lt
Name Ramesh Kumar Sharam
Date of Retirement 01-May-15
Basic Pay (BP) 19150 + 5400
Group NA
Qualifying Service in Years 32
Class for 4th CPC & till 09 Oct 1997 NA
Pension in OROP 16090
   

Transition to 7th CPC

Concordance Table Colonel, Table No: 6, Page No: 192
Basic Pay Located in NA
BP in 4th CPC NA
BP in 5th CPC till 09 Oct 1997 NA
BP in 5th CPC from 10 Oct 1997 to 31 Dec 2005 NA
Notional BP in 6th CPC 24,550
Notional Pay in Jan 2016 63,100
Notional Last Drawn Emoluments = NP + MSP 78,600
Pension by Notional Pay Method = 0.50 x (NP + MSP) 39,300
Pension at the time of Retirement 15,465
Pension by 2.57 Method 39,745
Method Beneficial 2.57 Method
Arrears Nil

For you 2.57 method is beneficial and you will continue to get that pension of Rs 39,745. Since you retired in May 2015, OROP is not applicable to you.

Even in Govt of India, Ministry of Defence letter No: 17(01) /2017/ /(02) / D (Pension/Policy) dated 05 Sep 2017, none of the Pre – 2016 four JCOs / OR whose pensions were worked out got any benefit by Notional pay method.

It is surprising to note that Post – 2013 Hony Lts and Hony Capts are fixed pension lesser than that of Pre – 2013 Hony Lts / Capts. Your pension as Hony Lt retired in May 2015 is only Rs 15,465 where as that of Pre – 2013 Hony Lt in OROP is Rs 16,090. This is definitely an anomaly. Generally those who retire later must higher pension but in your case it is the earlier retirees who got higher pension.

TSEWA brought this injustice to notice of Justice L Narasimha Reddy, Chairman of One Man Judicial Commission (OMJC) on OROP in the presentation made to him in Sep 2016 in Secunderabad. Hopefully this anomaly will be resolved when the Government of India implements his recommendations.

Till the Government of India implements the recommendations of Justice L Narasimha Reddy, I am afraid, you will continue to get pension of Rs 39,745 till Jun 2019. It will be enhanced to the Average of Pension of Hony Lts who actually retire in calendar year 2019 which will be higher than what you are drawing today.

Warm regards,

Brig CS Vidyasagar (Rtd)
TSEWA- 140

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