Pension

Post – 2013 retiree officers are Benefitted by Notional Pay Method

Post – 2013 retiree officers are Benefitted by Notional Pay Method

This is a very interesting case and substantiates my stance that Post – 2013 retiree officers get benefitted by Notional pay method.

Dear Col Muraleedharan,

  1. If your pension with 37.50 years’ service is fixed at Rs 34,675 when you retired on 30 Nov 20104. Your reckonable emoluments i.e. Pay in Pay Band + Grade pay + MSP is Rs 34675 x 2 = Rs 69,350. With grade pay of Rs 8,700 and MSP of Rs 6,000, your PIPB comes to only Rs 54,650. It clearly indicates that you got your rank of Colonel at very late stage of your career. It may be you are a SL Officer.
  2. The definition of OROP was that those whose pension is less than Average of Rs 36,130 were brought upto the average. Therefore all those who retired in calendar years till 2012 got the benefit of OROP. Whereas those post – 2013 Officers were given only increment. That is the reason your reckonable emoluments were less. Only those whose reckonable emoluments were Rs 72,260 (yours was only Rs 69,350) will have pension same or more than OROP of Rs 36130.
  3. This problem has been experience by Hony Lts and Hony Capts who retired post – 2013 get pension less than in OROP. Post – 2013 Hony Lts were given pension of Rs 15,465 whereas the Pre – OROP Hony Lts were given pension of Rs 16,090 for service of 32.50 years and Rs 16160 for service of 33 years.
  4. With your PIPB of Rs 54650 and Grade pay of Rs 8700, your notional pay in Def Pay matrix comes to Rs 1,65,400. With MSP of Rs 15,500, your Notional reckonable emoluments comes to Rs 1,80,900. Your pension w.e.f. Jan 2016 by Notional pay method comes to 0.50 x 180900 = Rs 90,450. Your pension by 2.57 method is Rs 34675 x 2.57 = Rs 89114. You will get arrears from Jan 2016 to date of remittance to your bank account. I worked out your arrears for the period Jan 2016 to Dec 2018 and it comes to Rs 1,81,238. The work sheet is attached.
  5.  I do agree that your pension should not be less than Rs 36130 given to Pre – OROP pensioners of rank of Col with 29.50 years’ service. There is a provision that senior cannot be given pension less than junior. You can get justice only from AFT. If you feel your pension should be higher than OROP from Dec 2014, then you have no other option but to go to AFT Kochi assuming you are either in State of Kerala or Karnataka.
    Pension by Notional Pay Method w.e.f. Jan 2016
    Basic Data
    Rank Col (SG)
    Name K Muraleedharan
    Date of Retirement 30-Nov-14
    Basic Pay (BP) 54650+8700
    Group NA
    Qualifying Service in Years 37.5
    Class for 4th CPC & till 09 Oct 1997 NA
    Pension at the time of retirement 34675
    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 63,350
    Notional Pay in Jan 2016 1,65,400
    Notional Last Drawn Emoluments = NP + MSP 1,80,900
    Pension by Notional Pay Method = 0.50 x (NP + MSP) 90,450
    Pension in OROP NA being 2014 retiree
    Pension by 2.57 Method 89,115
    Method Beneficial Notional pay method
    Arrears 1,335
    Arrears
    Period Arrears per Month DR in % DR Amt Arrears with DR Arrears for Period
    Jan to Jun 2016 1,335 0 0 1,335 8,012
    Jul to Dec 2016 1,335 2 27 1,362 8,172
    Jan to Jun 2017 1,335 4 53 1,389 8,332
    Jul to Dec 2017 1,335 5 67 1,402 8,412
    Jan to Jun 2018 1,335 7 93 1,429 8,572
    Jul to Dec 2018 1,335 9 120 1,455 8,733
    50,232

    I do agree that your pension should not be less than Rs 36130 given to Pre – OROP pensioners of rank of Col with 29.50 years’ service. There is a provision that senior cannot be given pension less than junior. You can get justice only from AFT. If you feel your pension should be higher than OROP from Dec 2014, then you have no other option but to go to AFT Kochi assuming you are either in State of Kerala or Karnataka.

Warm regards,

Brig CS Vidyasagar (Rtd)

TSEWA- 140

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