18 January 2017

INCOME TAX EXEMPTION OF DISABILITY PENSION

MAJ NAVDEEP'S LETTER TO CHAIRMAN SBI , ON TDS ON DEFENCE DISABILITY PENSION

Law Office of NAVDEEP   SINGH                                 
Advocate, Punjab & Haryana High Court
Office-cum-Residence : # 1063, Sec 2, Panchkula – 134112, Haryana
Phones : 099888-LEGAL, 093161-32817    Email : navdeepsingh.india@...
Your reference :                                                                        
 Our  reference :
 To:
Chairman-cum-Managing Director (CMD)
State Bank of India, Mumbai
                                                                                      01 September 2016
ILLEGAL DEDUCTION OF INCOME TAX ON DISABILITY PENSION BY THE STATE BANKOF INDIA IN CONTRAVENTION OF DIRECTIONS OF THE GOVT
1.    Shocking instances have come to light wherein your bank has indulged in deduction of Income Tax at source in case of Disability Pensioners. On further inquiry, it has been informed that the action is based upon some ‘advice’ rendered by a Chartered Accountant that income tax exemption is only available to those pensioners who have been invalided out before completion of their service for normal pension, that is, those released earlier than 20 years in case of Commissioned Officers and 15 years in case of ranks other than Commissioned Officers, and that the said exemption is not available on the service element of those who have been released/ retired/discharged with a pension after serving more than 20/15 years of service as above.
2.    Firstly, your attention is invited to Instruction No 2/2001 issued by the Central Board of Direct Taxes in this regard which amply explains the issue (Appx A). Your attention is also invited to Paragraph 88.3 of the Pension Payment Instructions issued to all your banks by the Government (Appx B) which leaves no scope of doubt regarding exemption of income tax from the entire disability pension, including service element. Moreover, the interpretation of your bank in this regard is absolutely incorrect, absurd and militates against the rules and norms promulgated by the Government as above. It may be recalled that Income Tax exemption on complete disability pension is available to defence personnel since the 1920s.
3.    On discussion, it emerges that the confusion has been created due to the terminology of ‘Service Element’ which is hereby clarified for your benefit in the following lines. Disabled personnel who are granted disability benefits at the time of release from service are known as Disability Pensioners.  The said Disability Pension consists of two elements- service element and disability element. Both elements taken together are known as Disability Pension. There is no minimum qualifying service required for the grant of Service Element with effect from 01 January 1973. The calculation of service element however is different in cases of those personnel released from service before completion of pensionable service limits vis-a-vis those who are released on completing pensionable service limits. In case of the latter, the service element is granted at a rate equal to Service Pension. The fact that the pension granted for service in both cases is known as Service Element becomes clear from a bare perusal of Regulation 183 of the Pension Regulations, 1961, which contains two clauses, that is, 183(1)(a) for those who are released with sufficient service to earn a pension, and 183(1)(b) for those who are released before completing sufficient service to qualify for normal service pension. The said Regulation is enclosed as Appx C. Please note from the Regulation that in both cases the service part of the pension is known as Service Element. Even the normal service pension rates reflected under Regulation 183(1)(a)(i) are categorized as ‘Service Element’.
4.    The fact that the service part of pension, whether a person is released prior to completion of service limits or after completion of service limits (20/15 years), is known as ‘Service Element’ also becomes clear from a perusal of the recent Circular No 554 (Appx D) issued by the Principal Controller of Defence Accounts (Pensions) to all banks, including yours. Paragraphs 1(i) and (ii) and then 1(iv) & 1(v) as well as Paragraph 6 of the same clearly stipulate that in case of disability pensioners, the amount of service part of the pension is known as ‘Service Element’ irrespective of the fact whether a person has lesser or more than 20/15 years of service. In simple words, the service element of pension in cases of those disabled personnel who have completed pensionable limits is equal to normal service pension, but being disability pensioners, it is nomenclatured as ‘Service Element’.
5.    Even otherwise, it would be important to point out that disabled personnel released prior to completion of pensionable terms as well as those who are released on completion of terms or at own request are all treated at par as far as disability pension is concerned. In fact, all those who are in low medical category at the time of release are to be treated as ‘invalided’  as per rules (Also Appx C) as has also been held as per interpretation of teh pre-existing rules by the Hon’ble Delhi High Court in CW 2967/1989 Mahavir Singh Narwal Vs Union of India decided on 05 May 2004 as affirmed by the Hon’ble Supreme Court in SLP 24171/2004 on 04 January 2008 and also in the recent decision of the Hon’ble Supreme Court in Civ Appeal 11208//2011 Union of India Vs Angad Singh Titaria decided on 24 Feb 2015.
6.    In view of the above, you are requested to inform all your branches to cease and desist from flouting guidelines of the Central Board of Direct Taxes in this regard and direct them to honour income tax exemption on both service as well as disability elements of disability pensioners as was being done till now. It may be appreciated that the opinion of your Chartered Accountant cannot override existing law and rules that have been followed since times immemorial.
7.    You are requested to issue directions to refund the illegally deducted amount to all affected disabled pensioners within a period of 7 days from the receipt of this letter.
Thanking You
Sd/-
Navdeep Singh

Advocate, High Court

09 December 2016

Railway Board approaches the DOP&T for clerification regarding pay fixation of exservicemen

Pay fixation of reemployed exservicemen is a controversial issue and government departments allows to darw the pay of Retired Commissioned Officers of Armed forces at the same stage as last pay drawn before their retirement.  In case of PBOR they are deprived and allowed to draw only minimum pay of reemployed post which is violation of Article 14 of Constitution of India.  To give parity in this matter attention is hereby invited to the Govt through employer authorities.  Railway Board has approached to DOP&T which is self explanatory and DOP&T can not escape from their duty to clerify the points raised.  To read the letter of Railway Board please click the link below :-


Railway Board  writes to DOPT on Pay fixation of Reemployed Exsm.      Click here.

27 October 2016

Important Govt Orders and Instructions for pay fixation of reemployed Exsm

LIST OF GOVT ORDERS/INSTRUCTIONS TO BE USED AS AUTHORITY IN SUPPORT OF CLAIM FOR RE-FIXATION OF PAY OF REEMPLOYED EX-SERVICEMEN:-


Ser No
Letter No & Date
Subject
Page No
1.
Ministry of Finance, Dept of Expenditure OM No 8(34) Estt-III/57 dated 25 Nov 1958
Pay fixation of Reemployed pensioners

2.
Ministry of finance OM No F.5(14)-E-III(B)/77 dt 19. Jul 1978
To ignore  Rs 125 for pay fixation of ex-sm retired before 55 yrs of age
3.
Ministry of Finance OM No F.4(3)-E.III/82 dated 13 Dec 1983
Entire pension of reemployed ex-servicemen/pensioner retired before 55 yrs of age will be ignored for pay fixation
4.
CCS (Fixation of Pay of re-employed Pensioners) orders 1986 
Pay fixation procedure effected from 1.8.1986
5.
Dept of P&T OM No 3/1/86-Estt (P-II) dated 31 July 1986
Forwarding letter of CCS (Fixation of Pay of re-employed Pensioners) Orders 1986
6.
DOPT OM No 3/13/2008/Estt/Pay II dated 11 Nov 2008
Pay fixation of pre and post 2006 reemployed pensioners.
7.
rule 7 of CCS RP Rules 2008
Pay fixation of central govt employees
8.
DOP&T  O.M. No.3/19/2009-Estt.(Pay.ll) dated 5.4.2010
 Amendment in Pay fixation of reemployed Exsm in 6th CPC
9.
DOP&TOM No 997012/2014-Estt(Pay) dated 26 June 2014
 Regarding existence of DOPT OM dt 11.11.2008
10.
DOPT OM 3/19/2009 dated 08/11/2010
 MSP of Exsm to be counted for pay fixation
11.
Ministry of Defence vide their letter No. 1/69/2008/D (Pay/Service) dated 24th July 2009,
 Pre-retirement pay has been defined
12.
DoPT ID Note No. 1101965/2015-Estt.(Pay-II) dated 28th August 2015
 Clerification by DOPT on pay fixation of Exsm
13.
Supreme Court verdict of B. Ravindra Vs DG post dated 08/11/96.
 Pay fixation of exsm
14.
 PCDA Allahabad circular 166 and 179 dated 07/03/2013 and 12/05/2015
Payment of DA


15.
 Defence Minister/Finance Minister Sh. Arun Jaitley reply in Rajya Sabha dated 12/08/2014 
 Reply of Minister regarding pay fixation of reemployed exsm
16.
 DOPT OM F.No.18/03/2015-Estt. (Pay-I) dated 2nd March, 2016
 the excess paid if any to GP C,D employees can not be recovered if the employee is facing hardship


17 October 2016

INCORRECT USAGE OF TERM ‘PBOR' - Address Ex-Servicemen as ‘Armed Forces Veterans’

INCORRECT USAGE OF TERM ‘PBOR' - Address Ex-Servicemen as ‘Armed Forces Veterans’

                                                                                                            Dte Gen of Staff Duties
                                                                                                            General Staff Branch
                                                                                                            Integrated HQ of                                                                                                                           MoD(Army)
                                                                                                            South Block
                                                                                                            New Delhi - 110 011

13048/SD-1B                                                                                                 dt.23 Dec, 2010

Headquarters
Southern Comd (GS/SD)
Eastern Comd (GS/SD)
Western Comd (GS/SD)
Central Comd (GS/SD)
Northern Comd (GS/SD)
ARTRAC (GS)
Southern Western Comd (GS/SD)

INCORRECT USAGE OF TERM ‘PBOR' - Address Ex-Servicemen as ‘Armed Forces Veterans’


              Based on the recommendations of the Chief of Staff Committee, Raksha Mantri (MOD) has approved the proposal that henceforth "Ex-Servicemen" will be addressed as "Armed Forces Veterans".   Army HQ has issued a letter on Monday, 7th Feb 2011  ordering discontinuation the use of the word “PBOR”.   The abbreviation/acronym 'PBOR' does not exist in the 'Staff Duties in Fd Appx 'C' - Abbreviation 2006'. However, over a period of time incorrect usage of this term PBOR has become a practice. It is seen and reported by a Comd HQ that the acronym 'PBOR' is being wrongly used in respect of 'JCOs and ORs'.   The issue has been considered at the IHQ of MoD(Army). It has been decided that the acronym 'PBOR' will not be used, instead 'JCOs and ORs' is to be used in all the letters/communications.


The above instructions may be disseminated to the effect for compliance.




                                                                                                     Sd/-
                                                                                                    ( S Sharma )
                                                                                                    Lt Col
                                                                                                    Offg Dir SD-1
                                                                                                    for DCOAS (IS&T)


Copy to :-

All Branches of IHQ of MoD (Army)
All Dtes of GS Branch

20 September 2016

7TH CPC ARMED FORCES PAY AND ALLOWANCES

7th Pay Commission Resolution PBOR of Armed Forces

RESOLUTION

New Delhi, the 5th September, 2016

No : 02(E).—1. The Seventh Central Pay Commission (CPC) was set up by the Government of India vide Ministry of Finance (Department of Expenditure) Resolution No. 1/1/2013-E.III(A) dated 28th February, 2014. The Commission submitted its report on 19th November, 2015. The report covered among other things, matters relating to structure of emoluments, allowances and conditions of service of Armed Forces personnel. Government has given careful consideration to the recommendations of the Commission relating to these matters in respect of Personnel Below Officer Rank (PBOR) of the Armed Forces and have decided that the recommendations of the Commission on the aforementioned matters in respect of these categories of Defence personnel shall be accepted as follows. Some of the major points in respect of the Defence Personnel (PBOR) are as mentioned below:


(i) Implementation of the revised pay structure will be w.e.f 01.01.2016;

(ii) Pay related matter;

a) The existing system of Pay Band and Grade Pay has been replaced with separate Pay Matrix for Defence forces personnel as specified at Annexure-II.

b) Fixation of payof each employee in the new Pay Matrix as on 01.01.2016 would be done by multiplying his/her basic pay by a factor of 2.57.

Note-1 With regard to fixation of pay in the new Pay Matrix as on 01.01.2016, the existing pay (Pay in Pay Band plus Grade Pay) in the pre-revised structure as on 31.12.2015 shall be multiplied by a factor of 2.57. The figure so arrived at is to be located in the Level corresponding to employee’s Grade Pay in the new Pay Matrix. If a Cell identical with the figure so arrived at is available in the appropriate Level, that Cell shall be the revised pay; otherwise the next higher cell in that Level shall be the revised pay of the employee.

Note-2 After fixation of pay in the appropriate Level as specified in Note-1 above, the subsequent increments shall be at the immediate next Cell in that Level.

(iii) Increase in Military Service Pay (MSP) of Personnel Below Officer Rank (PBOR) from Rs. 2000/- to Rs. 5200/- p.m. MSP would be counted only for Dearness Allowance (DA) and Pension purposes;

(iv) There would be two dates for grant of increment viz. 1st January and 1st July of every year, instead of existing date of 1st July. However, an employee will be able to avail annual increment only on one of these two dates depending on the date of appointment, promotion or grant of financial upgradation;

(v) Recommendations on Allowances (except Dearness Allowance) would be referred to a Committee comprising Finance Secretary & Secretary (Expenditure) as Chairman and Secretaries of Home Affairs, Defence, Health & Family Welfare, Personnel and Training, Posts and Chairman, Railway Board as Members. The Committee would submit its report within a period of 4 months. Till a final decision on Allowances is taken based on the recommendations of this Committee, all Allowances would continue to be paid at existing rates in existing pay structure, as if the pay had not been revised w.e.f. 1.1.2016 i.e. , status quo would be maintained;

(vi) Arrears of Pay would be paid during the current financial year;

(vii) Recommendations not relating to pay and allowances and other administrative issues specific to department/ cadres/ posts would be examined separately as per the Transaction of Business Rules/ Allocation of Business Rules.

2. Other instructions on Pay Fixation and increment not specifically covered in these instructions will be as in the Government of India, Ministry of Finance (Department of Expenditure) Resolution No.1-2/2016-IC dated 25th July, 2016.

3. The decisions taken by the Government accordingly on various recommendations of the Commission in respect of Personnel Below Officer Rank (PBOR) of Armed Forces are indicated in the statement at Annexure-I to this Resolution. New Pay Matrix applicable toPersonnel Below Officer Rank (PBOR) is at Annexure-II.

[No. 1(7)/2016/D (Pay/Services)]

V. ANANDARAJAN, Jt. Secy.

Annexure-I

STATEMENT SHOWING THE RECOMMENDATIONS OF THE VII CENTRAL PAY COMMISSION RELATED TO PERSONNEL BELOW OFFICER RANK (PBOR) OF THE ARMED FORCES AND GOVERNMENT DECISION THEREON (FIGURES REFERRED IN PARENTHESIS PERTAINS TO CHAPTER AND PARAGRAPH OF THE PAY COMMISSION REPORT)
Sl.No
Recommendations of the VII CPC
Decision of the Government
Fitment Factor: The Seventh CPC has recommendedfitment in the pay band in the following manner:
‘The fitment in the new matrix is essentially a multiplefactor of 2.57. This multiple is the ratio of the new minimum pay arrived at by the Commission and theexisting minimum pay. The fitment factor is beingapplied uniformly to all employees. It includes a factor of 2.25 to account for DA neutralisation, assuming that the rate of Dearness Allowance would be 125 percent at the time of implementation of the new pay as on01.01.2016. The actual raise/fitment beingrecommended by the Commission is 14.29 percent. Anidentical fitment of 2.57 has also been applied to theexisting rates of Military Service Pay (MSP), applicable to Defence forces personnel only.’ (Para 5.2.7)
Minimum Pay, Fitment Factor, Index of Rationalisation, Pay Matrix and general recommendations on pay recommended by the Commission in as much as it impacts PBORs accepted without any material alteration.
2
Rate of increment: The rate of annual increment is being retained at 3 percent. ( Para 5.1.38)
There would be two dates for grant of increment viz.
1st January and 1st July of every year, instead of existing date of 1st July. However, an employee will be able to avail annual increment only on one of these two dates depending on the date of appointment, promotion
or grant of financial upgradation.
Military Service Pay for PBORs:
The Defence forces personnel, in addition to their pay as per the Matrices above, will be entitled to payment of Military Service Pay for all ranks up to and inclusive of Brigadiers and their equivalents. The Commissionrecommends an MSP for Defence forces personnel at Rs 5,200 for JCO/ORs.

MSP will continue to be reckoned as Basic Pay for purposes of Dearness Allowance, as also in the computation of pension. Military Service Pay willhowever not be counted for purposes of House RentAllowance, Composite Transfer Grant and Annual Increment. (Para No. 5.2.22)
Rate of Military Service Pay (MSP) is accepted. However, MSP will be counted only for Dearness Allowance (DA) and Pension.
Group ‘X’ Pay: The Commission recommends:

a) X pay for JCOs/ORs in Group X at Rs 6,200 per month: For all X trades which involve obtaining a qualification which is equivalent of a diploma recognised by AICTE. This amount is the difference in the minimum of the Pay level 6 (corresponding to Grade Pay of Rs 4200 in VI CPC), and Pay level 5 (corresponding to Grade Pay of Rs. 2800 in VI CPC). (Para 6.2.88)

b) X pay for JCOs/ORs in Group X at Rs 3,600 per month: (standard fitment of 2.57 on the existing X pay of Rs 1,400) for those currently in X pay, but not having a technical qualification recognised by AICTE. (Para 6.2.88)
Accepted
Pay Scales of Honorary Commissioned Officers: TheCommission, taking note of the existing framework ofHonorary Commission recommends that the JuniorCommissioned Officers on their promotion as HonoraryLieutenant or Honorary Captain shall be placed in thepay level 10 and pay level 10 Brespectively. They will, in addition be paid Military Service Pay of Rs.15,500 per month onpar with that payable to all the Commissioned officers. (Para 6.2.92)
Accepted
Grant of Financial Upgradation under MACP to the DSC Personnel: Since Defence Security Corps personnel are personnel under the Army, they would also be permitted the benefit of MACP. However this benefit should be limited to a total of three upgrades in the entire service career, both during regular employment and in the course of reemployment as defence service corps personnel. As they are defence forces personnel the benefit of MACP would be extended to them after a period of eight years from their date of re-employment, in case they do not get a promotion.(Para 6.2.98)
Accepted
Pay Structure of Non Combatant (Enrolled): TheCommission recommends MSP for Non Combatants(Enrolled) at the rate of 70 percent of combatants.Accordingly, the Commission recommends anenhancement of MSP for NonCombatant (Enrolled) in the Air Force from the existing rate of Rs 1,000 permonth to Rs. 3,600 per month. (Para 6.2.100 & 6.2.101)
Accepted

Annexure – II

Pay Matrix (Defence Forces Personnel – except Military Nursing Service)
pay-matrix-pobr

24 June 2016

LETTER TO DEFENCE SECRETARY FOR PAY FIXATION

KOLKATA
REEMPLOYED EX-SERVICEMEN WELFARE ASSOCIATION (KREWA)

Registered Under West Bengal Societies Registration Act 1961



*****************************************  *********************************************
Ref No : 4001/Pay Fixation/18.                                                                             Date : 24 June  2016

To
The Secretary
Ministry of Defence
101-A, South Block,  New Delhi
defsecy@nic.in
Sir,
            Subject : PAY FIXATION OF REEMPLOYED EX-SERVICEMEN (PERSONNEL BELOW                            OFFICER RANK) IN CENTRAL GOVERNMENT DEPARTMENTS/ MINSTRIES

1.         With profound regards it is submitted that pay fixation of reemployed Central Govt employees belong to ex-serviceman category who held below commissioned officer/Gp A Officer rank at the time of their retirement are not carried out as per Govt Orders issued from time to time due to misinterpretation/wrong clarification by various administrative authorities. The re-employed
Ex-servicemen are being deprived by their employer/controlling authorities.

2.         DOP&T under Ministry of Personnel, Public Grievance and Pension is the nodal authority in the subject matter. Presently CCS (Fixation of pay reemployed Pensioners ) Orders 1986 amended from time to time is the basic guidelines which required to be amended as the pay of reemployed Ex Gp A officers/ Commissioned officers are fixed at a higher stage due to  his past service benefit but in case of reemployed Ex Servicemen who held below officer rank, their pay is fixed at minimum of pay scale of reemployed post which is denial  of natural justice and violation of Article 14 of Constitution of India as discrimination arises out of such partial provisions. 

3.         Detailed statement of case for regularization/streamlining of pay fixation of reemployed ex-servicemen is enclosed herewith for your kind consideration and issue necessary guidelines in favour of veteran Warriors of our country who sacrificed their vital years for India and still engaged themselves in nation building.

                                                                                               
                                                                                                            (Bikash De)
                                                                                                            Secretary
                                                                                                            KREWA
Enclosures :  As above.


STATEMENT OF CASE FOR REGULARISATION OF PAY FIXATION OF REEMPLOYED EXSERVICEMEN (PERSONNEL BELOW OFFICER RANK) IN CENTRAL GOVERNMENT DEPARTMENTS/ MINSTRIES

INTRODUCTION

            Government of India provides reemployment opportunity in various Departments/Ministries, Public Sector Organisation & Autonomous Bodies for Ex-Servicemen Officers/Other Ranks of Indian Armed Forces as a rehabilitation measure due to their compulsory retirement at early age. According to CCS (Fixation of  Pay of reemployed Pensioners) Orders 1986 amended from time to time by DOP&T the Reemployed Officers are allowed to draw a higher stage of initial pay in consideration with their pre retirement pay on reemployment with Govt organization. But in case of other ranks/PBOR (Jawans/NCOs/JCOs) most of the Govt Deptts and Ministries have allowed to draw only minimum/entry pay of reemployed post as applicable to fresh recruit.  Public Sector organizations i.e Nationalised Banks, LIC, NIC and other PSUs have allowed to draw the higher stage of initial pay (at the stage of pre retirement pay) to reemployed ex-servicemen (Jawans/JCOs/NCOs) as mentioned above. 

DETAILED JUSTIFICATION OF THE CASE

2.         Departments under Central Government Ministries  i.e. Department of Post, CBDT & CBEC, Audit & Accounts Department, Defence Accounts Dept, Indian Railways and many other Govt Deptts/Ministries are not agreed to allow the higher initial pay on reemployment in consideration with pre-retirement pay to reemployed ex-servicemen belong to below officer rank of the Armed Forces.  Most of the Ex-servicemen belong to PBOR category retired (discharged) from service by order on superannuation at the age of 35 - 40 years. To ensure the minimum survival support earning, govt of India introduced a higher stage of pay in several manners to the reemployed ex-servicemen from time to time. According to DOP&T OM No 3/1/86-Estt (P-II) dated 31 July 1986 the orders relating to fixation of pay of reemployed pensioners was scattered in a number of OM issued by  Ministry of finance from time to time.  DOP&T consolidated all these orders  and issued fresh guidelines in a single order viz CCS (Fixation of pay of reemployed pensioners) Order 1986.  The pay fixation procedure mentioned in such earlier OMs issued by Ministry of Finance as under :-

(i)            According to  Ministry of Finance, Dept of Expenditure OM No 8(34) Estt-III/57 dated 25 Nov 1958 pay of the reemployed pensioners will be fixed at the minimum of pay scale of the reemployed post. In cases where it is felt that fixation of pay of reemployed officers at the minimum of pay scale will cause undue hardship the pay may be fixed at a higher stage by allowing one increment for each year of service the officer has rendered before retirement in a post not lower than that he reemployed.  In other words, If the amount of pay plus pension is less than the last pay drawn before retirement from previous service, it will be treated as undue hardship.

(ii)           In case of reemployed pensioner who retired before attaining the age of 55 years,  Rs 125/- was ignored from the pension for the purpose of pay fixation vide Ministry of finance OM No F.4(3)E-III/82 dated 13 December 1978. 

(iii)         According to Ministry of Finance OM No F.4(3)-E.III/82 dated 13 Dec 1983 the entire pension of the reemployed pensioners who held below Gp A/Commissioned officer rank and retired before attaining the age of 55 years ignored for the purpose of pay fixation.  In this regard Para 4(d)(i) of CCS (Fixation of pay or reemployed pensioners) order 1986 ) amended from time to time may be referred.

3.         Hence In the cases where pay plus non ignorable portion of pension is less than last pay drawn before retirement, it will be treated as undue hardship. In case of Ex - Personnel Below Commissioned/Gp A Officer Rank, the non ignorable part of pension is zero. So it may be described as if the pay of reemployed post is less than last pay drawn in such cases advance increments will be granted as instructions given in Ministry of Finance OM dated 25 November 1958.

4.         Now the provisions of CCS (Fixation of pay of reemployed pensioners) Order 1986 and its application is as under :-
(i)            In case of Reemployed officers who held Gp A/Commissioned Officer Rank before retirement :-

According to para 4(d)(ii) such rremployed officer who retired before attaining the age of 55 Years, first Rs 4000/- of his pension only will be ignored for the purpose of pay fixation.
According to para 4(b)(ii) Pay of such reemployed officers will be fixed at the same stage as last pay drawn before retirement as a part of pension is only ignored for the purpose of pay fixation and remaining part of pension will be deducted from pay so fixed at the last pay drawn.  As a result, pay of such officer is fixed much higher than the minum pay of reemployed post. Illustration as mentioned below :-

Colonel ABC Retired at the age of 54 Years and reemployed as Section Officer (Gp A Gazetted in the pay scale ( Rs 15600 (BP) + Rs 5400 (GP)
His other details are as under :-
Last pay drawn         =          Rs 54000 (BP) + Rs 8700 (GP) + Rs 6000 (MSP)
                                                Total pay last drawn = Rs 65100/-

Pensioned sanctioned =    Rs 32550/- pm
Initial pay of reemployed post = Rs 15600 + Rs 5400 = Rs 21000
Pay fixation on his reemployment    

Step - I            Determination of last pay drawn   =  Rs 65100

Step –II           Determination of non ignorable    =  Rs 32550 – Rs 4000 = Rs 28550
                        part of his pension

Step-III            Deduction of non ignorable                       =  Rs 65100 – Rs 28550 = Rs 36550                  
                        Part of pension from LPD

Step-IV           Fixation of Initial pay                       = Rs 36550

From above it is notable that the minimum pay of the reemployed post is Rs 21,000/- and the pay fixed at Rs 36,000/- , hence the pay has been fixed at the higher stage due to consideration of his pre-retirement pay. It is justified as the pay of an experienced person never be equal to a fresher recruit. But the same justification should be considered for reemployed Ex Non officer cadre persons also.


(ii)        In case of Reemployed Ex servicemen who held  below Gp A/Commissioned Officer Rank before retirement and retired before attaining the age of 55 years :-

According to para 4(d)(i) such reemployed Ex servicemen who retired before attaining the age of 55 Years his entire pension will be ignored for the purpose of pay fixation.
.
According to para 4(b)(i) Pay of such reemployed ex-servicemen will be fixed at the minimum of pay scale of reemployed post. Pre retirement pay  will not be considered for his pay fixation.  Treatment of Undue hardship cassed due to fixation of minimum pay is neglected here.

 Illustration as mentioned below :-
Sepoy ABC Retired at the age of 36 Years and reemployed as Lower Division Clerk in the pay scale of  Rs 5830 (BP) + Rs 1900 (GP)


His other details are as under :-
Last pay drawn         =          Rs 9550 (BP) + Rs 1900 (GP) + Rs 2000 (MSP)+ Rs 300 (Class pay)
                                                Total pay last drawn = Rs 13750/-
Pension sanctioned =         Rs 6875/- pm
Initial pay of reemployed post = Rs 5830 + Rs 1900 = Rs 7730
Pay fixation on his reemployment
   
Step - I            Determination of Initial pay of reemployed post  =  Rs 7730

Step-II             Fixation of Initial pay                                               =   Rs 7730

From above it is notable that the reemployed ex servicemen is allowed to draw only minim pay of reemployed post which is Rs 6020/- less than his last pay drawn before retirement, hence the undue hardship arises  as his pre-retirement pay has been neglected.

From the illustration (i) and (ii) above it is revealed that the CCS (Fixation of pay of reemployed pensioners) Order 1986 is not a consolidation of provisions of OM issued by Ministry of finance rather it is an order issued by Govt of India which intended to get benefit to Ex officers and deprive the Ex servicemen (PBOR).  This Order was formulated to serve the interest of burocrats/ Ex Gp A Officers category only and discriminated created in terms of violation of Article 14 of Constitution of India.

5.         In addition to above, according to para 2 of DOPT OM No 3/13/2008/Estt/Pay II dated 11 Nov 2008 it is clear that the pay of reemployed ex-servicemen will be fixed according to rule 7 of CCS RP Rules 2008 with adherence to CCS (Fixation of pay of reemployed pensioners) Rules 1986 amended from time to time.  The term minimum pay refers here the pay last drawn by the reemployed ex-servicemen before retirement (substantive pay) and the pay should be fixed in the pay structure of reemployed post i.e. the grade pay of reemployed post only admissible in such case. Total pay should be equal to the last pay drawn by the pensioner. .In this regards your attention is invited to para 3(v) of DOPT OM No 3/19/2009-Estt (Pay 11) dated 05 April 2010.

6.         Pay of Reemployed Officers is fixed at higher stage due to formula applied as prescribed in the CCS (Fixation of pay of reemployed pensioners) Order 1986.  Whereas the interest of personnel below officer rank was totally neglected and their pay is fixed at the minimum of pay scale which is contrary to natural injustice and violation of Article 14 of  Constitution of India as discrimination arises.


7.         Public Sector Banks, LIC, NIC and PSUs are still allowed the higher stage of initial pay  to Ex PBOR with reference to the govt orders (DOP&T OM dt 05.04.2010). Circular of Indian Banks Association in this regard may be referred to. Due to problem in interpretation of Government orders issued on the subject matter, the Department/Ministries under central govt. are not agreed to re-fix the pay of reemployed ex-servicemen (PBOR) category as mentioned in para 4 above.  The reemployed Ex-serviceman belong to PBOR category are allowed to get their pay fixed only at the minimum/entry pay of re-employed post which is illogical and unlawful decision made by the authority. The victims need to fight for their rights against the system as it shows the inability to pay the entitled wages to his own employees which is a constitutional right of every citizen. Being Indian we all are aware of Indian Armed Forces and service rendered by the soldiers and their supreme sacrifice for the nation since its inception. Due to some ambiguity in the Office Memorandum issued by DOP&T related to pay fixation Govt Depts denied to fix the pay of ex-servicemen in higher stage.  The Jawans (PBOR) are deprived while in service and even after retirement.  As a result a large number of ex-serviceman are suffering from financial hardship besides moral depression. No body think about their family, their life.  The policy makers never think about the jawans, rather it was tactfully managed by them that the facility should not be extended to Jawans who do not have any participation in formulating the policy. Jawans are always busy to complete the task assigned to them.  Discrimination created by the bureaucrats regarding pay fixation of reemployed Officers and Jawans clarified with illustration above.  The situation has been changed. Jawans are no more just so called soldier.  Besides fighting for the country they have learnt to nurture their own family.  So, they are now able to raise their voice after retirement. In this digital era we can imagine that the information of such discrimination/disparity easily spreads to the serving soldiers of the three services. The bureaucratic, dictatorship, dominated ruling  is over.  Hundreds of cases regarding pay fixation has been placed in the Central Administrative Tribunal and higher Judicial systems of the country.  It is notable that the pay of officers reached at so high stage before retirement due to getting several promotions ( 3 Time Bar (guaranteed) promotion within 13 years of service in Pay Band -IV, and one time scale promotion within 20 years of service) and retirement age is more than 55 years, inspite of deduction of a portion of pension, their initial pay is always fixed at much higher stage, as a result they are always benefited whereas the PBOR are always deprived &  neglected.
The Personnel Below Officer Rank (PBOR) of the Indian Armed Forces mostly retired on superannuation after completion of 17- 20 years of service at an average age of 40 years in the rank of Havilder or Sepoy/Nk  and equivalent rank of Navy/Air Force.  Scope of resettlement in the Govt sector is too less whereas requirement is too much. Only 3% veterans get  Govt  job against the  5% Ex-serviceman quota reserved for Gp C & D posts only.  The eligible, qualified and experienced Ex-serviceman recruited mostly in the Group D/MTS/LDC/equivalent posts in the Central Govt in Pay Band –I (Rs 5200-20200) with grade pay of Rs 1800/1900.  The initial gross pay/entry pay including DA and other allowances as on date is appeared to be less than Rs 17000/-pm.  Pension sanctioned including DR at an average is now Rs 10,000/- pm.  The total monthly income after 20 years of service is Rs 27,000/- pm.  Whereas a central govt servant with similar profile and 20 years of service is drawing his salary not less than Rs 50,000/- pm. Even  a newly recruited LDC in any govt  office  with only 7 years of service is drawing  Rs 30,000/-pm.

8.         Service rendered by an Ex-serviceman never can be compared with the fresher, as veterans have wide experience of versatile nature of work, highly motivated, disciplined and trained for prompt actions with demand of situation and it has been proved in the PSU/Banks that the productivity/efficiency of the ESM category of manpower is almost 95% more than the fresher and they have honoured their efficiency/service experience  in the form of allowing the pay fixation/ protection of last pay drawn. According to the requirement of the stages of life the minimum supported wages to the reemployed veteran who sacrificed their youthfulness in the sake of the nation must be considered by the competent authority.  This is not a mercy to the veteran, they deserve it and it is the right of the veterans who were separated from family and relatives for a long, posted in the field/CI Ops/Hazard area and dedicate their lives to serving their country to protecting the people of India.  Soldiers paid the ultimate sacrifice for their country. Orders of the Commanding officer are the last word for them. Soldier never thought on the battle field that it is dangerous, he might get wounded, he might even die |   Had they died, it would be because they laid down their lives for their country.  They chose to obey without regard for the cost.  The living veteran may not have a grave marker as a memorial, but they nevertheless gave much for our country. The memories linger.   The competent authority should consider the facts and issue necessary instructions to facilitate the benefit of pay fixation to ex-serviceman (PBOR) on reemployment at the same stage as the last pay drawn before their retirement.

9.         After all it is a matter of shame in the realistic view.  Quoting the same authority /Govt orders issued by DOP&T the PSU organizations and Banks have facilitate the pay fixation to the ex-servicemen (PBOR) to fix the pay at the same stage as last pay drawn before retirement but the department/ministries under central Govt. are still not agreed to provide the entitlements to the reemployed ex-soldiers due to ambiguous provisions.  The rules and orders regarding pay fixation has been formulated to give benefit only to the Elite Class ( Gp A Officers/Commissioned Officers) only  whereas the ex servicemen (PBOR) gets a big zero.  





REMEDIAL ACTION REQUIRED TO BE TAKEN

10.       In view of the above it is requested that, your good Ministry should workout the actual disparity arises out of the incomplete and discriminatory orders issued by the DOP&T vide CCS (Fixation of pay of reemployed pensioners) Order 1986 (amended from time to time) and issue necessary amendment in favour of the Ex Servicemen (PBOR) category as mentioned below :-

For :- 

Para 4(b)(i)
where the pension is fully ignored, the initial pay on re-employed shall be fixed as per entry pay in the revised pay structure of the re-employed post applicable in the case of direct recruits appointed on or after 1.1.2006 as notified vide Section II, Part A of First Schedule to CCS (RP) Rules, 2008. 
Read :-

Para 4(b)(i)
where the pension is fully ignored, the initial pay on re-employed shall be fixed as per entry pay in the revised pay structure of the re-employed post applicable in the case of direct recruits appointed on or after 1.1.2006 as notified vide Section II, Part A of First Schedule to CCS (RP) Rules, 2008. In cases where it is felt that fixation of pay of reemployed ex-servicemen at the minimum of pay scale will cause undue hardship the pay may be fixed at a higher stage by allowing advance increments until his pay reached at the same stage as last pay drawn before retirement. In other words, If the amount of pay in reemployed post is less than the last pay drawn before retirement from previous service, it will be treated as undue hardship. Pension of the reemployed Ex-servicemen PBOR/personnel below Gp A Officer of civil side is fully ignored for the purpose of pay fixation.

CONCLUSION
           
11.      Once again it is requested that the orders should be issued with free from any ambiguity, clearly mentioning the feasibility of fixation of pay of the reemployed ex-servicemen belongs to below officer rank at the same stage as the last pay drawn before retirement with ignoring entire portion of pension.  The reemployed ex-servicemen (PBOR) should also be entitled to draw pension/PEG separately.   Thousands of reemployed soldiers suffering from acute financial hardship due to very low earning even after re-employed with Central Civil Services. They would get relief with the right approach and a patriotic initiative if taken at your end.  

Station  :    Kolkata (West Bengal)
Date      :    24       June        2016                                                   (Bikash De)
                                                                                                            Secretary

                                                                                                            KREWA