Pension and Gratuity for retiring Commissioned Officers of Defence Services
Pension and Gratuity applicable to retiring Commissioned Officers in Defence Services – PCDA’s brief on Retiring Pension, Retirement Gratuity, Commutation, Disability Pension, Invalid Pension, Family Pension, and War injury Pension
Definition of Pension
Pension shall include gratuity except when the term pension is used in contradistinction to gratuity but does not include dearness relief.
Authy: Based on Rule 3(O) of C.C.S (P) Rules & DP & P.W. notification no.42 (30) P&PW/89/E dt. 22.1.91
Grant of Pension is Subject to Good Conduct
Future good conduct shall be an implied condition for every kind of grant of pension.
Retiring Pension
The minimum qualifying service required to earn retiring pension in case of permanent regular commission officer is 20 Years and 15 Years in the case of late entrants and in respect of EC/S.S.C. officers granted commission from ranks is 12 years (including rank service). Authy: Govt. of India MOD letter no. 17(4)/2008(2)/D(Pen/Pol) dt. 12.11.2008
Definition of Late Entrants
A late entrant is an officer who is retired on reaching the prescribed age limit for compulsory retirement with at least 15 Years service qualifying for pension but whose actual qualifying service is less than 20 Years. Authy: Rule 15 P.R.A. modified.
Qualifying Service for Pension
The minimum period of qualifying service for earning retiring pension shall be 20 years (15 years in the case of late entrants).
Linkage of full pension with 33 years of qualifying service has been dispensed with w.e.f 01/01/2006.
A fraction of a year equal to 3 months and above but less than 6 months shall be treated as a completed ½ year. Similarly, nine months or more but less than one year shall be treated as a competed one year and reckoned as qualifying service.
This shall, however, not be applicable for completing minimum qualifying service for pensionary award.
Periods of Service Qualifying Service for Pension
- Service as a permanent regular Commissioned Officer
- Service rendered before attaining the age of 17 years.
- Embodied or called out service as an officer of TA or Auxiliary Air Force subject to refund of gratuity, if any.
- Service in the rank if followed by permanent regular Commissioned service without a break subject to refund of gratuity, if any.
- All leave including study leave with pay.
- Period of suspension from duty when the officer is not brought on trial or court martial with result favour-able to the officer.
- Service under an Office /Department/Ministry of the Central Government.
- Any period of Civil service under Central Government. if followed by military service subject to refund of gratuity, if any.
- Service rendered in the autonomous bodies
- The period of ante-date of commission and the period of
- Secondment subject to the following maxima:-
a. Ante-date of commission –18 months
b. Secondment -12 months
c. when both ante- date and Secondment granted – 24 months - Service rendered in aid of civil administration.
Reckonable Emoluments for Retiring Pension
The reckonable emoluments for retiring pension shall comprise of pay in pay band, grade pay, military service pay and NPA, if any, last drawn.
Calculation of Retiring Pension
The retiring pension of commissioned officers retiring / invalided out on or after 1.1.06 is calculated at 50% of emoluments last drawn or average of reckonable emoluments drawn during last 10 months, whichever is more beneficial.
Minimum Pension
W.E.F.1-1-2006, minimum retiring pension is Rs. 3500/- PM
Maximum Pension
W.E.F 1.1.06, Maximum Retiring pension is Rs. 45000/- P.M. For example a General getting Rs. 90000/- pay will be entitled for Rs. 45000/- P.M. pension.
Retirement Gratuity
An officer who has completed 5 years qualifying service (actual) and is eligible for retiring /invalid/ special pension or gratuity of any type will be granted retirement gratuity equal to ¼th of the reckonable emoluments for each completed six monthly period of qualifying service subject to the maximum of 16 ½ times of the Reckonable emoluments which will be restricted to Rs. 10 lakhs.
The term “reckonable emoluments“ include pay in pay band, grade pay, military service pay, NPA, if any , plus dearness allowance admissible on the date of retirement / invalidment.
Disability Pension
When an officer is invalidated out on account of a disability and the same is attributable to or aggravated by Military service and is assessed and accepted at 20% or more, he is granted Disability Pension.
Disability Pension consists of two elements viz. Service Element and Disability Element. Service element is equal to the retiring pension determined.
Disability Element for 100% disability for various rank is 30% of emoluments last drawn subject to minimum or Rs. 3510/- per month. For disability less than 100%, it shall be reduced proportionally.
Service Element
It is admissible equal to retiring pension as determined vide Para 6 of Govt. of India, Min. of Defence letter no. 17(4)/2008(2)/D(Pen/Pol) dt 12/11/2008 subject to minimum of Rs. 3500/- PM w.e.f 1-1-2006.
Disability Element
Existing rates of disability element are as under: Disability Element for 100% disability for various rank is 30% of emoluments last drawn subject to minimum or Rs. 3510/- PM. For disability less than 100%, it shall be reduced proportionally.
For determining the Pensionary benefits the circumstances to decide the attributability/aggravation have been categorised as under :- Category “A”
Death or disability due to natural causes neither attributable to nor aggravated by military service determined by competent medical authority, chronic ailments like heart and renal diseases, Prolonged illness, accident while not on duty.
Category “B”
Death or disability due to causes which are accepted as attributable to or aggravated by military service such as diseases contracted because of continued exposure to hostile work environment subject to extreme weather conditions or occupational hazards.
Category “C”
Death or disability due to accidents while performing duty, such as,
- Accidents while traveling on duty in Government/public /private vehicles or during air journey or mishap at sea.
- Electrocution while on duty.
- Accidents during participation in organized sports events/ adventures activities/expeditions/training
Category “D”
Death or disability due to acts of violence/attack by terrorist, anti-social elements, whether on duty or even when not on duty. Bomb blasts in public places or transport, indiscriminate shooting incidents in public, etc. would be covered under this category, besides death / disability occurring while employed in aid in civil power in dealing with natural calamities.
Category “E”
Death or disability arising as a result of :-
- enemy action in international war, action during peace keeping mission abroad, border skirmishes.
- during laying/clearance of mines including enemy mines as also minesweeping operations
- On account of accidental explosions of mines
- War like situations, including cases which are attributable to / aggravated by:-
- Extremist acts, exploding mines, etc while on way to operational area.
- battle inoculation training exercises, or demonstration with live ammunition.
- kidnapping by extremist while on operational duty.
- An act of violence/attack by extremists and antisocial elements etc. while on operational duty.
- Action against extremists, antisocial, element, etc Death / disability while employed in the aid of civil power in quelling agitation, riots or revolt by demonstrators will be covered under this category.
- operations specially notified by Government from time to time.
Disability Pension on Invalidment
The amount of service element and disability element of disability pension in case of invalidment are determined as under:-
- Service element – The amount of service element shall be equal to the retiring pension determined as per Para 6 of the MOD letter No. 17(4)/2008(2)/D(Pen/Pol) dt 12-11-2008 above.
There shall be no condition of minimum qualifying service for earning this element. - Disability element – The amount of disability element depends on the assessed degree of disablement by Invaliding Medical Board and rank of the officer. Disability lower than 100% shall be rounded with reference to percentage as laid down in clause (iii) below.
- Provided that where permanent disability is not less than 60% the disability pension (i.e. service element plus Disability element) shall not be less than 60% of the reckonable emoluments last drawn.
Percentage of Disability as finally accepted | Percentage to be reckoned for computing of Disability Element |
---|---|
1 to 49 | 50 |
50 and 75 | 75 |
76 and 100 | 100 |
Note1: Rounding off benefit is not admissible where disability is assessed at Nil percent by the Invaliding Medical Board.
Invalid Pension
When on officer is invalided out of service on account of a disability which is neither attributable to nor aggravated by military service, he will be entitled to invalid pension, if service actually rendered is 10 years or more and invalid gratuity, if it is less than 10 years.
The amount of invalid pension will be equal to the service element of disability pension that would have been admissible in case the causes were attributable to or aggravated by military service. Ranks for assessment of qualifying service reckonable towards invalid pension will be the same as for assessment of retiring pension.
The invalid pension will be subject to the minimum of Rs. 3500/-PM w.e.f 1-1-06.
Invalid Gratuity
The amount of Invalid Gratuity shall be calculated at half a month’s Reckonable Emoluments i.e. pay in pay band, grade pay, Military service pay, NPA, if any, last drawn and dearness allowance, for each completed six monthly, period of qualifying service. The Maximum limit of Invalid Gratuity is Rs. 10 lac.
Ordinary Family Pension
Ordinary family pension is payable to the widow and children of the officer who died/die while in service or after retirement with a retiring/ disability/invalid/ special pension on account of causes which are neither attributable to nor aggravated by service.
Eligible Members of Family for Ordinary Family Pension
- Wife lawfully married before or after retirement
- A judicially separated wife
- Son below the age of 25 years and unmarried daughter (including those illegitimate and adopted legally before or after retirement) or till the date of earning livelihood whichever is earlier.
- Widowed/ divorced daughter upto the date of re-marriage and until the earning is not more than Rs. 3500/- + DR p.m. whichever is earlier.
- Parents wholly dependant when officer has not left behind a widow/ widower, eligible son or daughter or a widowed/ divorced daughter and the earning of the parent is not more than Rs. 3500/- + DR p.m. The beneficiary is required to furnish income certificate by themselves. The family pension to parents will be admissible with effect from 1.1.1998 but will cover cases where death occurred even prior to 1.1.1998)
In case of parents, the mother will receive the pension first. In addition to above, the following members are also eligible for ordinary family pension:-
- Handicapped children- son or daughter suffering from any disorder of disability of mind or physically crippled or disabled so as to render him unable to earn a living even after attaining the age of 25 years.
- Post retiral spouses.
- Children born out of void or voidable marriage
- Children born from divorced wife where conception took place before divorce.
For the purpose of grant of family pension, the Family has been categorized as under vide GOI, MOD letter No. 17(4)/2008(2)/D(Pen/Pol) dt 12-11-2008.
CATEGORY -I
- Widow or widower, up to the date of death or re-marriage whichever is earlier;
- Son / daughter (including widowed daughter), up to the date of his / her marriage / re-marriage or till the date she starts earnings or up to the date of death, whichever is earlier.
CATEGORY -II
- Unmarried / widowed / Divorced daughter not covered by Category I above up to the date of marriage / re-marriage or till the date she starts earning or up to the death of death, whichever is earlier.
- Parents who were wholly dependent on the Armed Forces personnel when he / she was alive provided the deceased personnel had left being neither a widow nor a child.
Family Pension to dependent parents, unmarried / divorced / widowed daughter will continue till the date of death.
Ordinary Family Pension in case of Missing Personnel Pensioners
Ordinary family pension in such cases is admissible to the eligible member of the family from the date of lodging FIR six months after the date of lodging FIR or expiry of leave of the officer who has disappeared, whichever is later.
Rates of Ordinary Family Pension
Normal Rate – The ordinary family pension at normal rate shall be calculated @ 30% of reckonable emoluments last drawn subject to a minimum of Rs. 3500/- p.m. and a maximum of 30% of the highest pay.
Enhanced Rate – Where on officer dies while in service or after retirement with pension having rendered not less than 7 years continuous qualifying service, the enhanced rate is payable as under.
Death in Service – The enhanced rate of ordinary family pension is payable for a period of ten years, without any upper age limit from the date following the death of the personnel, to the family of personnel who dies in service.
Death after Retirement – E.R is admissible for 7 years from the date of death of officer or upto the date he would have attained the age of 67 years which ever is earlier in case of officer’s death after retirement. The amount of enhanced rate shall be the lowest of the following amounts:
- 50% of the reckonable emoluments
- amount of retiring/ invalid/ service element of disability pension
For this purpose, reckonable emoluments comprises of pay in pay band including grade pay, Military service pay and NPA, if any, last drawn.
Special Family Pension
Special Family Pension is admissible if the death of an officer whether during service or after retirement is caused due to the circumstances mentioned in category ‘B’ or ‘C’ . There shall be no condition of minimum service on the date of death for grant of Special Family Pension.
The decision whether the cause of death is attributable to or aggravated by service or other wise rests with Government of India (now Service Hqrs. with effect from 14.8.2001.)
Elegible Members of Family for Special Family Pension
- Wife (lawfully married before or after retirement) including a judicially separated life.
- Sons/Un-married daughters/ widowed/ divorced daughters (including those illegitimate and adopted legally) till he/she attains the age of 25 years or upto the date of his/her marriage/ re-marriage whichever is earlier. In case the eligible child is physically or mentally handicapped and unable to earn livelihood, the Special Family Pension would be admissible for life.
- Father
- Mother
- Brother till he/she attains the age of 25 years.
- Unmarried sister till he/she attains the age of 25 years.
Rates of Special Family Pension
Special Family Pension shall be calculated @ 60% of reckonable emoluments drawn at the time of death of the officer subject to a minimum of Rs. 7000/- p.m. irrespective of whether widow has children or not. There shall be no maximum ceiling on Special Family Pension. Emoluments will comprise pay in pay band, grade pay, MSP, NPA, if any, last drawn by the officer.
Special Family Pension on Remarriage of Widow
(i) If widow has children | |
(a) If she continues to support children after re-marriage | Full Special Family Pension continue to widow |
(b) if she does not support children after re-marriage | Ordinary family pension equal to 30% of the last pay drawn to the re-married widow. 50% of the Special Family Pension to eligible children. |
(ii) If widow has no children | Full Special Family Pension to widow |
Dependent Pension to Parents and Brothers/ Sisters
A claim for dependent’s pension arises in favour of parents/ eligible brothers and sisters (in the absence of parents) of the deceased officers who die under circumstances mentioned in category B or C as a bachelor or widower without children.
Conditions of Eligibility to Dependent Pension
i. The parents/ eligible brothers/ sisters were largely dependent on the officer for support and are in pecuniary need.
ii. In case of parents, upto the date of death or in the case of female parent who re-marries- upto the date of re-marriage.
iii. In the case of brothers/sisters- upto the date he/she attains the age of 25 years or until she gets married, whichever is earlier. The dependents pension may be continued beyond 25 years if they are incapable of self-support by reason of mental or physical infirmity.
Note: There shall be no condition of “ means limit” for grant of dependent pension provided they were largely dependent on the deceased officer for support and are in pecuniary need. A self attested declaration on any normal paper shall be treated as sufficient proof for grant of dependent pension.
Rate of Dependent Family Pension
At a rate equal to 50% of the notional Special Family Pension that would have been admissible as per Para 46 above subject to a minimum of Rs. 3500/- p.m.
War Injury Pension on Invalidment
Where an officer is invalided out of service on account of disability sustained under circumstances mentioned in category “E” , he shall be entitled to War Injury Pension consisting of Service Element and War Injury Element as follows :-
(i) Service Element- Equal to Retiring Pension determined as per Para 6 of Military letter No. 17(4)/2008(2)/D(Pen/Pol) dt 12/11/2008 subject to Min. of Rs. 3500/-PM. There shall be no condition of minimum qualifying service for earning this element.
(ii) War Injury Element- equal to reckonable emoluments last drawn for 100% disablement. For lower percentage of disablement, war injury element shall be reduced proportionality. The cap on War injury pension w.r.t. emoluments last drawn in case or disabled pensioners belonging to category E has been removed w.e.f 1-07-2009.
War Injury Pension on Retention in Service
An officer who is retained in service despite the disability due to war injury sustained under circumstances mentioned in category ‘E’ and retire subsequently shall have on option as follows.
(a) to draw lump sum compensation in lieu of war injury element foregoing war injury element at the time of subsequent retirement.
Or
(b) to draw war injury element at the time of retirement in addition to retiring pension admissible on retirement, foregoing lump sum compensation.
The rate of war injury element for 100% disability on retirement / discharge from service shall be 30% of emolument last drawn subject to minimum of Rs. 3510/- PM for 100% disability. for disability less than 100% pension shall be reduced proportionally.
Lump-Sum Compensation in lieu of War Injury Pension
In case an officer is found to have a disability which is sustained under the circumstances mentioned in category E of Disability which is assessed at 20% or more for life but the officer is retained in service despite such disability and opts for lump sum compensation, he shall be paid the lump sum compensation in lieu of war injury element.
The rate of war injury element for 100% disability on retirement / discharge from service shall be 30% of emolument last drawn subject to minimum of Rs. 3510/- PM for 100% disability. For disability due to war injury less than 100%, the rates shall be proportionately reduced.
The one time compensation in lump sum in lieu of war injury element will be equal to the capitalized value of war injury element.
Age next birth day will be reckoned with reference to the date of onset of disability with loading to age, if any, recommended by the Competent Medical Board.
Once the compensation in lieu of war injury element due to disability for life has been paid, there shall be no further entitlement on account of such a disability at the time of retirement form Armed Forces. Since this is one time payment of compensation, no restoration will be permitted.
War Injury Element on Subsequent Retirement
Where an officer is retained in service despite injury/disability sustained under the circumstances mentioned in Category ‘E’ and does not opt for lump sum compensation in lieu of war injury, he shall be entitled to the payment of war injury element on a monthly basis at the rate prescribed in above Para above on subsequent retirement.
For disabilities less than 100 %, the above rate shall be proportionately reduced. No war injury shall be payable for disabilities less than 20 %.
Liberalised Disability Pension
An officer sustaining disability under the circumstances mentioned in category ‘D’ shall be entitled to same benefits as admissible to war injury cases on invalidment/ retirement including lump sum compensation. However, on invalidment, they shall be entitled to disability element instead of war injury element in addition to service element.
There shall be no condition of minimum qualifying service for earning this element.
The amount of service element is equal to retiring / service pension determined as per Para 6 of MOD letter No. 17(4)/2008(2)/D(Pen/Pol) dt 12-11-2008.
The rate of disability element for 100% disability for various rank is 30% of emolument last drawn subject to minimum of Rs. 3510/-. For disabilities less than 100 % the above rate shall be proportionately reduced.
Ex-gratia Award to Cadets (Direct in case of Disablement)
Ex- gratia awards (except service entry) in respect of Cadets in the event of disablement due to cause attributable to or aggravated by conditions of military training shall be admissible @ Rs. 3500/- p.m. with effect from 1.1.06 for life. In addition, a disability award on ex-gratia basis shall also be admissible to the ex-cadets @ Rs. 6300/- p.m. with effect from 1.1.06 for 100% disability during the period of disability. The amount of disability award shall be proportionately reduced when the degree of disablement is less than 100% No disability award shall be payable whose degree of disablement is less than 20%.
Constant Attendance Allowance @ Rs. 3000/- p.m. with effect from 1.1.06 shall also be admissible.
Note: The benefit of monthly Ex gratia payment as mentioned above shall also be admissible to Pre 1.1.06 cases as well with financial effect from 1.9.08
Appeal
An officer may submit two appeals against rejection of disability pension. He may prefer first appeal to the Service HQrs (Director PS-4 ) within six months from the date on which decision on the entitlement is communicated to him. The officer can make a second appeal within six months from the date of rejection of Service HQrs. The second appeal is considered by the Defence Ministry Appellate Committee headed by Raksha Mantri /Rajya Raksha Mantri.
Commutation of War injury Pension
50% of War injury pension is commutable provided disability is of permanent nature for life.
Liberalised Family Pension
In case of an officer under the circumstances mentioned in category ‘D’ or ‘E’ eligible members of the family shall be entitled to liberalised family pension equal to Reckonable emoluments last drawn.
Reckonable emoluments includes pay in pay band, grade pay, MSP and NPA, if any, last drawn.
Liberalised Family Pension shall be granted to the widow until death or disqualification. If the officer is not survived by the widow but is survived by child/ children only, all children together shall be eligible for Liberalised Family Pension at the rate equal to Special Family Pension. Liberalised Family Pension shall be payable to child/ children for the period during which they would have been eligible as in the case of Special Family Pension. It shall be paid to the senior most eligible child at a time. On his/her death/ disqualification, it will pass on to the next eligible child.
Liberalised Family Pension on Re-marriage of Widow
If widow has children | Full Liberised Family Pension continue to widow |
If she continues to support children after re-marriage | Ordinary family pension equal to 30% to widow |
If she does not support children after re-marriage | Special Family Pension @ 60% to eligible children. |
If widow has no children | Full Liberalised Family Pension to continue to widow |
Ex-Gratia Award in case of Death of Cadets
The Ex-gratia awards in respect of Cadets in the event of death due to causes attributable to military training shall be payable to the next of the kin depending upon his martial status.
Rate of Ex-Gratia Awards
In Case of Married Cadets
i. Rs. 600/- p.m. upto 31.7.1997 and thereafter @ Rs. 1275/- p.m. w.e.f. 1.8.97 to the widow /children.
ii. In case of unmarried/widower Cadet Rs. 375/- p.m. up to 31.7.1997 and thereafter @ Rs. 1275/- p.m. w.e.f. 1.8.97 to the dependent parents for life. In absence of parents, to the dependent brother(s) /un-married sister(s) in order of seniority in age till they attain the age of 25 years. In case of un-married sister(s), ex-gratia shall be stopped on her/their getting married.
iii. Ex-gratia amount of Rs. 2.5 lakhs is payable in addition where death is due to cause attributable to or aggravated by military training occurring on or after 1.8.1997.
Note: Ex-gratia awards shall not be treated as pension for any purpose. However, dearness relief shall be payable.
The revised rate of ex-gratia awards in case of death of cadet, on or after 1.1.06.
- Ex gratia amount of Rs. 5 lakhs.
- Payment of monthly ex gratia amount of Rs. 3500/-PM.
Note :-The benefit of monthly ex-gratia payment is also admissible to Pre 1.1.06 case as well with financial effect from 1.9.08.
Ex-Gratia lump-sum compensation
Ex-gratia lump-sum compensation is admissible to the families of the Commissioned Officers who dies in harness in the performance of their bonafide official duties as under:
(a) | Death occurring due to accidents | Rs. 10 Lakhs |
(b) | Death occurring due to acts of violence by terrorists, antisocial elements, etc. | Rs. 10 Lakhs |
(c) | Death occurred in (i) border skirmishes and action against militants, terrorists, extremists | Rs. 15 Lakhs |
(d) | Death occurring while on duty in the specified high attitude, inaccessible border posts etc. on account of natural disaster, extreme weather conditions | Rs. 15 Lakhs |
(e) | Death occurred in enemy action in international war or such war like engagements which are specifically notified by Ministry of Defence | Rs. 20 Lakhs |
Note : The conditions and guidelines to be observed governing the payment of ex-gratia lump-sum compensation are laid down in Government of India Ministry of Defence letter No. 20(i)/98/D( Pay/Sers) dt. 22.9.98 as amended.
Death Gratuity
If an Army officer dies while in service, his family will be entitled to death gratuity. The quantum of death gratuity will be determined on the basis of length of qualifying service and the emoluments drawn at the time of death, which are as under: –
(i) | Less than 1 year | 2 times of emoluments. |
(ii) | 1 year or more but less than 5 years. | 6 times of emoluments. |
(iii) | 5 years or more but less than 20 years | 12 times of emoluments |
(iv) | 20 years or more | Half of reckonable emoluments for each completed six monthly period of qualifying service subject to a minimum of 12 times of reckonable emoluments and a maximum of 33 times of reckonable emoluments. |
Note 1. The reckonable emoluments include Pay in Pay Band, grade pay, Military service pay and NPA, if any, plus Dearness Allowance admissible on the date of death.
Note 2. In respect of death occurring on or after 1.1.06, the amount of death gratuity shall in no case exceed Rs. 10 lakhs.
Commutation of Pension
An officer is entitled to commute for a lump sum payment a fraction not exceeding 50% of his/her pension which is sanctioned for life.
Commutation of pension if applied after one year of retirement/ invalidment is to be submitted through pension disbursing authority. In such cases, commutation is to be done after medical examination only.
Calculation of Commuted value of Pension
The commutation of pension is calculated as under:-
Portion of monthly pension to be commuted x 12 x purchase value applicable to the age next birthday.
Note: The table of commutation of pension is given in MOD letter No. 17(4)/2008(2)/D(Pen/Pol) dt 12.11.2008.
Restoration of Commutation portion of Pension
The pensioners who have commuted a portion of their pension and on 1.4.1985 or thereafter have completed 15 years or will complete from the respective dates of retirement or from the date on which reduction in pension on account of commutation becomes effective will have their commuted portion restored.
Restoration of Commuted Portion of Pension in case of Absorption
The officers who had drawn lump-sum payment on absorption and have become entitled to restoration of 43% commuted portion of pension shall, apart from payment of revised restored amount of 43% commuted portion of pension, be also entitled to dearness relief on notionally revised full pension from the date of restoration. However, the officers who have opted for lump sum commuted value of their total pro-rata pension may get their pension restored to the extent of 43% after 15 years.
Source: https://pcdapension.nic.in/
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