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The much awaited Govt’s exercise to enhance the pension of Personnel Below Officer Rank (PBOR) has been completed now. It was long pending demand of PBOR pensioners community who retired before 1.1.2006 before Government. Pre-2006 PBOR pensioners felt that implementation sixth pay commission had in fact created a huge gap between Pre-2006 PBOR pensioners and Post 2006 Pensioners.
After Prime Minister’s deliberations before the House on improvement of pre 2006 pensioners, Defence ministry has now issued Circular No: 430 dated 10.3.2010 for improving the pension to bridge the gap in pension of Pre 01.01.2006 and Post 01.01.2006 discharged Personnel Below Officer Rank (PBOR) of Armed Forces.
Pension Enhancement Close to One Rank One Pension Demand, says Govt:
In a move that will bring relief to over 12 lakh ex-servicemen, the Defence Ministry has issued orders to implement pending pensionary benefits to them involving an annual expenditure of about Rs 2,200 crore.
The decision followed recommendations by a high-level committee and recent assurance in this regard in the Lok Sabha by Prime Minister Mr. Manmohan Singh.
With these orders, the ministry has implemented all the seven recommendations of the committee headed by Cabinet Secretary Mr. K M Chandrasekhar on pensions, which would now be close to the ‘One Rank-One Pension’ demand of ex-servicemen, senior ministry officials said today.
“The Defence Ministry issued the orders on March 8 this year to implement the remaining two of the seven suggestions of the Cabinet Secretary K M Chandrasekhar-headed committee on ‘One Rank-One Pension’ demand,” they said.
The two recommendations for which the orders were issued were bringing parity between pension of pre- and post-October 10, 1997, personnel below officer rank, and further improving their pensions based on award of Group of Ministers in 2006.
To queries on the order, Defence Ministry spokesperson Sitanshu Kar said implementation of the orders would not only significantly reduce the gap between the past and current pensioners, but would also considerably improve the pension of ex-servicemen including disabled pensioners.
No Benefits to family Pensioners, Commissioned Officers and Pensioners given honorary Rank:
As per para 5.1 of the Order, Pensioners given Honorary Rank such as JCOs granted Honorary rank of Lieutenant and Captain will not get any benefit out of this order as they were already granted 50% of their pay in the Pay Band-3 or minimum of pay band-3, which ever is applicable and PB-3 grade pay.
This order also does not apply to Commissioned officers and their families and to all family pensioners of PBOR
Para 8 of the Order dated 10.3.2010 also says that no arrears on account of revision of pension based on notional fixation of pay shall be admissible for the period prior to 1.7.2009.
Other recommendations approved by Govt:
Among the other recommendations already implemented were inclusion of classification allowance for personnel below officer rank from January 1, 2006 and removal of linkage of full pension with 33 years from January 1, 2006 (the day Sixth Pay Commission came into retrospective effect).
Full pension after rendering 20 years of service was earlier announced only for those officers who retired after 01-09-2008 while the same was made applicable to PBOR w.e.f 01-01-2006.
The govt has accepted the recommendation and issued orders for payment of full pension to those officers who had retired with 20 years of service or above between 01-01-2006 and 01-09-2008.
The govt has also decided that in respect of PBOR who were discharged / invalided between 01-01-2006 and 31-08-2008, the rates of classification allowance made applicable w.e.f 01-09-2008 would now reckon notionally w.e.f 01-01-2006 for the purposes of determining reckonable emoluments for pension.
The Government has also issued an Important Letter No. Gts/Tech/O/67/IV dated 10/03/2010 directing all banks involved in the disbursement of pension to enhance the pension of PBOR pensioners based on the above mentioned Order No: 430 dated 10.3.2010.