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Till now, the structure of disability pension in the defence services was based on a slab system which is all set to change to a percentage based system.
Disability pension consists of two elements, service element and disability element. Service element is akin to ‘service pension’ with the added advantage that there is no minimum qualifying service prescribed to earn this element. Hence even if a person is invalided after one single day of service, he/she is entitled to service element. For persons who have rendered qualifying service to earn a pension, their service pension becomes their service element for the purpose of disability pension. On the other hand, Disability element is granted to those individuals who are invalided/released/discharged/superannuated with a disability over 20%. The 5th CPC slab rates of disability element for 100% disability were as follows :
(a) Officers : Rs 2600/-
(b) JCOs : Rs 1900/-
(c) Other Ranks : Rs 1550/-
Unlike the slab system, the civil services had a percentage system for calculation of disability element – 30% of basic pay was the rate prescribed for 100% disability in cases of normal disability pension. Though under the slab system, PBOR had an edge over their civilian counterparts, the said system placed the officers at a disadvantage vis-vis civil service officers.
The 6th CPC has now abolished the slab system and put into place a percentage system for defence disability pensioners too. Under this system, percentage of basic pay would be used to determine the disability element. While it shall be 30% of basic pay for 100% disability, there would be a different percentage system for calculation of disability element in case of operational/war injuries. This would be similar to the system being followed by the civil services as on date.
Though the modalities have not been announced, to take a broad idea of the new system that is expected to be put in place, please click here. Of course the figures of ‘minimum pension’ as provided in the link above would also change as per new 6th CPC orders.
It may also not be out of place to mention here that the entire disability pension (including service element/service pension) is exempted from payment of Income Tax. To learn more about Income Tax exemption to disability pensioners and the authority thereon, please click here.
Disability pension consists of two elements, service element and disability element. Service element is akin to ‘service pension’ with the added advantage that there is no minimum qualifying service prescribed to earn this element. Hence even if a person is invalided after one single day of service, he/she is entitled to service element. For persons who have rendered qualifying service to earn a pension, their service pension becomes their service element for the purpose of disability pension. On the other hand, Disability element is granted to those individuals who are invalided/released/discharged/superannuated with a disability over 20%. The 5th CPC slab rates of disability element for 100% disability were as follows :
(a) Officers : Rs 2600/-
(b) JCOs : Rs 1900/-
(c) Other Ranks : Rs 1550/-
Unlike the slab system, the civil services had a percentage system for calculation of disability element – 30% of basic pay was the rate prescribed for 100% disability in cases of normal disability pension. Though under the slab system, PBOR had an edge over their civilian counterparts, the said system placed the officers at a disadvantage vis-vis civil service officers.
The 6th CPC has now abolished the slab system and put into place a percentage system for defence disability pensioners too. Under this system, percentage of basic pay would be used to determine the disability element. While it shall be 30% of basic pay for 100% disability, there would be a different percentage system for calculation of disability element in case of operational/war injuries. This would be similar to the system being followed by the civil services as on date.
Though the modalities have not been announced, to take a broad idea of the new system that is expected to be put in place, please click here. Of course the figures of ‘minimum pension’ as provided in the link above would also change as per new 6th CPC orders.
It may also not be out of place to mention here that the entire disability pension (including service element/service pension) is exempted from payment of Income Tax. To learn more about Income Tax exemption to disability pensioners and the authority thereon, please click here.
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18 comments:
All said and done, when will we start getting the pay?...........i will like to repeat what one of my sailors said to me-" sir, problem to Lt Col and above rank ki hai, hamare liye to koi fayda nahin, to phir hamari pay kyon hold pe rakh rahan hain?"......... what do i answer?
This has to do with the way forces function. All will remember from training days, how everyone is punished for a single individual's mischief. Genesis of this is in war psychology where results of an adventure/misadventure are borne by full unit. One for all, all for one. Please have patience.
There is Cabinet Meeting taking place today. Do we have hope?
I rember of seeing a post that orders for PBORs pay has been already issued.
May you can check this out from your Pay office
Govt. has accepted the 6CPC review committee's (CoS)recommendation of min Disability Pension for Defence personnel will be Rs.3100 upgraded from 1550.
jas
@ All and Specially @abc
My info is Chief of Staff has also taken up the matter of lowering of Extant status issue of Havildars and Eqvt ranks vis-a-vis Civilian ranks/appointments such as SIs, as Havildars Grade pay is less than those of SIs after the revision by Comm of Secys (Ba-booze). There are total of seven points in letter submitted to RM, PM, FM. I think that is the reason for not issuing notification (AI's/AFI's/NI's) for PBORS. I think you can tell them this info.
@Navdeep,
Excellent spadework, however the issue is not dead, some important issues have not been notified by the defence ministry with respect to the SCPC.
1. Disability pension, (disability element) for people retiring on voluntary retirement. If you look at the wordings of SCPC carefully, there was a VRS package built in, however the government has negated this proposal. Further the government has also approved the proposal for retirement reduction from 33 years to 20 years. This brings us to a peculiar situation . This implies that all people can retire after 20 years effectively if they can be relieved by their appointing authority , again the wordings of SCPC. So this implies that all people with disability will get their benefits on voluntary retirement .
2. However, there was a case of disability pension(disability element) or lump sum payment on sustaining disability as an option to be exercised by the individual. If somebody decides to put up his papers before 20 years and is with a disability, he will still have to go without disability element as the necessary clarification is not there . Any comments.
@Anony at 7.14PM
The Hon'ble Supreme Court has already upheld the right of voluntary retirees to receive disability pension. Lumpsum compensation in lieu of disability element was always optional and a person could either opt for that or DE after retirement. The 6th CPC has also cleared DP for voluntary retirees so I foresee no problem on that account
I have been made medically permanently unfit and have been placed in a non promotable category. I have applied for voluntary retirement with effect from 30 Nov 2008 and most likely the case for PR has been accepted by the service HQ. I am eligible for my normal pension since I have already put in 21 years and 5 months of service as on nov 2008. Now since I am also going out with a medical disability, (both knees have a ACL ligament tear which is attributable to service, if in my final board if the disability element is more than 20%) will I be entitled to medical pension too?
please clarify.
@Navdeep
Thanks for the info . Am aware of the supreme court ruling , however you should read page 349 and 350 section 5.1.69. It suggests that the government may look at change in extant rules which disbar payment of disability pension for people writing on voluntary retirement.
Any comments.
Comments on two issues hereby dealt with:
Payment of disability element of pension at the @ 30% of basic pay with an over-riding minimum is advantageous to pensioner. 5th CPC has recommended this rate as asked for by Civilians. Armed forces asked for at slab rate but 5th Cpc recommended payment @ 30% of basic pay. However, the Govt order discriminated between Pre & Post-96 pensioners - sanctioned at slab rate for pre-96 case and @30% of basic pay for post-96 cases. I receive Rs. 2080/= pm towards 80% of my disbility. At what rate civilians are actually paid and whether post-96 defence pensioners are paid at %age basis needs to be known to arrive at a clearer picture on the exact extent of discrimination.
The authority letter vide which disability pension is purported to be exempt from income-tax need more clarification. It states to be an instruction quoting an instruction of 1970; It is without signature or even the designation of the authority. The section of the Income Tax Act-61 vide which the exemption is granted needs to be quoted to claim such exemption.
May I request Maj Navdeep to clarify the above points, please.
Gp Capt BV Rao(Retd)
Kindly contact me for authority letter for income tax exemption on your entire pension consisting of SERVICE+DISABILITY elements of pension .
bhinderjs@gmail.com
Hi navdeep sir,a belated happy diwali to you and everybody else,may god give you the strength to carry on the good work you have been doing althrough........and now my question------what happened to the disability pension of gentlemen cadets,any updates?and will be the total pension of a GC with a disability of 30%....and when do we start getting the raises?
you are doing great job Major.... good to see the flame in you
Dear Navdeep Sir,
I have been declared as Battle Casualty by Army HQ in an vehicle accident case in 'Op Rakshak' in J&K.
At the same time I have been declared a permanent medical category (P2) having 40% of disability.
I have two simple doubt, if you can clarify them please-
(a) Am I eligible for 'War Injury Pension' whenever I retire subsequently?
(b) Can this disability % be reduced subsequently?
Regards,
BC.
sahi_dashmeshian -
Dear Navdeep Sir,
i have recently voluntary discharged from service as JCO after serving for 11 years (My pensionable service was 20 Yrs)and i was discharged in LMC with 30 % disablitly aggravted by service. (so i fall in category 'B' )
1. As per Circular 433 of PCDA (P) dated 25.03.2010 , on GOI,MOD letter no 16(5) / 2008/D (pen/policy)Dt. 29.09.2009. it states that
(a) even Voluntary discharge persons whose diability was attributable or aggravated by service, may be given disability element in addition to retiring / service pension.
2. And as per Office memorandum,No.45/3/2008-P&PW (F) dated 30.09.2010, Para 2B(III)
(a) Disability pension would comprise of a service element equal to 50% of
minimum of Pay in the Pay Band plus Grade Payor the minimum Basic"Pay
in the revised Scale in case of HAG and above, applicable from 1-1-2006,
corresponding to the scale of pay last held by the employee, to be reduced
proportionately, if the employee did not have required qualifying service for full
pension, plus disability element equal to 30% of the same minimum basic pay, for
100% disability.
(b) For disability less than 100%, disability element shall be reduced proportionately.
In cases of disability pension where permanent disability is not less that 60%, the
disability pension (i.e. total of service element plus disability element) shall not be
less than 60% of the minimum of pay in the Pay Band plus Grade Payor the
minimum basic pay in the revised Scale of pay in case of HAG and above,
corresponding to the scale of pay last held by the employee, subject to a minimum
ofRs. 7000/- per month.
3. Sir, if you please guide/suggest what could be my disablility pension.
Thanx,
Regards.
I am working in an Autonomous body under Min. of Defence, Govt of India. 6th CPC is made applicable to us in-Toto. But we are covered under CPF Scheme and not CCS Pension. Presently my basic pay is Rs. 24000 + GP 7600.
I lost an eye during Dec 2010 in an accident attributable to service (30% disability?). Post disability, i am retained in service. My organisation has asked me to submit a claim for compensation. I don't have any idea how this claim to be arrived at and the max amount of compensation what i can claim.
please help me.
Will the "Amendment to Rules of CCS ( Extraordinary Pension) Rules, 1939 - Issue of Notification dated 15th February, 2011, published in the Gazette of India on 22nd February, 2011" is applicable to me?
if so, how to arrive at lump sum amount (in lieu of disability pension) as specified in Rule 9 of the amended act (arriving at the capitalised value of such disability pension with reference to commutation table)? An example will be of great help.
if this rule is not applicable to me, what is the alternative?
any help in this matter is greatly acknowledged.
reg,
Krishna Bhat
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