DOPT File notes on 01.05.2017 OM which is positive

Noting of DOPT regarding OM dated 01.05.2017

DOPT IS POSITIVE IN OUR PAY FIXATION ISSUE AND THEY WILL ISSUE ORDER SOON

DOPT approached to following dept for issuance of OM regarding applicability of CCS RP Rules 2016 on implimentation of VII CPC benefits to Reemployed pensioners :

  1.   DoE, Min of Finance
  2.   DESW, Min of Def
  3.   DOP&PW, Ministry of personnel

DOPT sent the draft OM regarding the applicability of CCS RP Rules to the reemployed pensioners to above depts and they all have sent their views on the draft OM.  DESW has sent the positive view regarding our demand for pay fixation at par with Commissioned Officers vide their OM No 28(11)2017/D (Res-I) dtd 15.02.2017.

On receipt of the all inputs from the above depts DOPT has placed the revised OM in their file note. No 3/3/2016-Estt (Pay-II) Note 35, 36 & 37 dated 10.04.2017.
Relevant portion of their notes are reproduced below :-

D/o Exservicemen Welfare have also stated that that MSP needs to be reckoned as part of pre-retirement pay while carrying out pay fixation in re-employed posts.

Further, they have stated that JCO/OR (PBOR) should be given option to choose between pay fixation  at minimum of the pay scale of the reemployed post and pay fixation by protecting last pay drawn (as done in the case of Commissioned Officers/Gp A officers), whichever is more beneficial to them.  At present the draft OM is only intended to extend the benefits of VII CPC to re-employed pensioners and has already received the concurrence of Do Expenditure.  Notwithstanding the above, as the instant suggestion of D/o ESW involves change in policy, the same is proposed to be taken up separately while consolidating the existing orders on the subject.

5.    The draft OM has sine been re-visited in view of the aforesaid comments received from the three Departments and following changes have further been made to the draft OM -

The comments of D/o Pensions & PW and D/o ESW in respect of revision of pension limits in respect of ex-combatants clerks / storemen being inconclusive, it is proposed that the ignorable part of pension may be substantially enhanced to Rs 5000/- to make it reasonable and proportionate with ignorable pension limit of Rs 15000/- in respect of Group 'A' Officers.   It may be noted that entry pay of Group A officer in VII CPC Scenario is Rs 56100/- for whom the ignorable part of pension has been calculated as Rs 15000/-.  Applying the same formula to Clerks with pay scale / level 2 in the pay matrix with minimum pay of Rs 19900/- on a proportionate basis, the ignorable amount of pension comes to Rs 5321/- approximately, which may be rounded off to Rs 5000/-.  Keeping in view he observation of D/o Expenditure on this para with regard to the need of retaining the provision itself, it is to be pointed out the ex-combatant clerks/storemen continue to be re-employed in Civil Posts and as such, the said provision cannot be done away with.  So far as the concurrence of D/o Expenditure on the amount or Rs 5000/- as ignorable part of pension is concerned,the same shall be obtained at the time of consolidation of various instructions on this subject.

JS(E)

   This OM is necessary to be issued so that the benefits of 7th CPC are extended to re-employed pensioners except persons re-employed on contract except those where contract provide otherwise.

    There have been many grievance regarding different pay fixation formula adopted in respect of Group 'A' and below group 'A' re-employed pensioners which has been reflected in the views of DESW.  We have already suggested a formulations to DESW which is largely agreeable to them but if we desirable to issue the consolidated OM it will require fresh consultation with DoE & DP&PW which may take some time.  Therefore we are delinking the policy change issue from operational issue.  We will issue suitable policy OM with necessary consultation.



(Scanned copy of the Note sheet will be uploaded in due course)

Reemployed Exsm Meeting on 25.06.2017 in Kolkata

The meeting of reemployed ex-servicemen will be held on 25.06.2017 in Kolkata.

Venue and time will be intimated later.

Agenda - Pay fixation of reemployed ex-servicemen.

All local reemployed ex-servicemen are requested to attend the same.

For details please Contact - 7003693603  Parag Chatterjeee, Coordinator/Convenor.

Representation regarding Exservicemen entertained by DOP&T

Copy of DOP&T OM as below :-

Ministry of Defence recommended for pay fixation of Exsm JCOS/OR

Dear veteran friends,

      Our movement, fight for rights likely to win the battle.  Ministry of defence has forwarded their recommendation to DOPT and positively recommended.  Mr Puspendra Singh, Under Secretary, DOPT has sent the document to me.

CLARIFICATION OF DOPT ORDERS REGARDING PAY FIXATION

Clarification about Para 4(b)(i) of DoPT OM dated 5.04.2010 for which Shri Pushpender Kumar the under secretary (Pay) DoPT stated pay is allowed only at the entry pay as pension is not deducted in the case of PBOR and the orders make a clear distinction between fixation of pay Commissioned Officers and PBOR .

Para 4 (b) (i) : the Para states in case where the pension is fully ignored initial pay should be fixed as per entry pay of the re-employed post as in the case of direct recruits appointed on or after 1.1.2006 as notified vide section Part A of first Schedule to CCS (RP) rules, 2008.It is pertinent to note that :

(a)         It may be noted that due to the introduction running pay bands and Grade Pay in the 6^th CPC, the term “Minimum Pay has been replaced with Entry Pay in the revised pay structure as given Para (b) (i) of the DoPT O.M dated 05/04/2010.

(b)         Here the line “Pay shall be fixed as per the entry of the re-employed post” implies the Pay scale /structure of the re-employed post to be considered while initial pay fixation and not the minimum pay at which pay is to be fixed.

(c)          That the Ministry of Finance issued Notification vide GSR 622 (E) dated 29.08.2008 in exercise of powers conferred by the provisions to article 309 and clause (5) of article 148 of constitution of India. Therefore the eligibility of the applicant for the pay fixation is prescribed by the DOPT OM dated 11.11.2008 and it is therefore from 01-01-2006 the initial pay of re-employed government ,who received pension or any other retirement benefits but which were ignored while fixing on re-employed and who elects or is deemed to have elected to be governed by the revised pay scale from 1-1-2006  and their pay shall be fixed according to the provision of by Rule 7 of CCS (RP) Rules, 2008  for determine the initial pay on re-employment vide Para 2(1) and Para 1(II) of DOPT OM dated 11-11-2008.It also further clarified  the application of Rule 7 is continue to apply in cases of pay fixation re-employed persons vide DOPT circular No. 997012/2014-Estt(Pay) dated 26-6-2014.

(d)         In this regard, it has been clarified by the ministry of Defence (Finance) as communicated by CGDA vide letter No. AT/II/2432-VI dated 15/02/1993,No.AT/Tech/263-XVIII dated 12.05.2015  that in all cases where the entire amount of pension is ignored , the initial pay on re-employment has to be fixed at the minimum of the scale of the re-employed post and therefore there is no necessity of indicating the pay drawn by individual from the date of enrollment to the date of discharge , and only particulars of Last Pay drawn will serve the purpose, in the other words , where the entire amount of pension ignored , furnishing the Last pay drawn particulars of Military Pensioner will suffice for the purpose of fixation on re-of pay employment.

(e)         The pay of the fresh recruit recruited on or after 1.1.2006 is fixed at minimum of the pay scale and has  no relevance to the ex-servicemen and that is to be done in accordance with Rule 8 and the same is extracted in Para-08 of the Gazette Notification dated 29.08.2008 that :

                                                                                                                       “8……..Section-II of Part-A of the first schedule of these rules indicates the entry level pay in the pay band at which the pay of direct recruits to a particular post carrying specific grade pay will be fixed on or after 01.01.2006”

(f)             Office of the Pr.C.D.A. (P), Allahabad vide their letter No .At/Tech/263-XVI dated 07.03.2013(Circular No.166 ) clarified about the distinction between pay fixation of pay of Commissioned Officer and PBOR that in case of re-employed Commissioned Officers the pay in the post of re-employment is not required to be fixed at the minimum of the scale as a certain portion of pension is taken into account and entirely ignored whereas  in all cases of the   ex-servicemen (PBOR) on re-employment   their pay fixed at higher stage and the pay should be treated as fixed at a minimum only for the purpose of ignoring the entire pension and allowing dearness relief on pension .(Copy enclosed).

(g)         More so Para 3 of the OM dated 5.4.2010 said that apart from the Para’s 4(a),(b)(i),(b)(ii),(c) it is also clarified in which (iv) and (v) provided which clearly stipulated about the fixation of pay of personnel/officers re-employed  prior to  1.1.2006 and who were in employment as on 11.1.2006 and who retired prior to 1.1.2006 and wh have been re-employed after 1.1.2006. Further Para 3(v) effected for both officers and personnel (PBOR) as the word clearly mentioned personnel/Officers. The Para states that their pay on re-employment will be fixed by notionally arriving at their revised basic pay at the time of retirement as if they had retired under the revised pay structure. This will be done with reference to the fitment table of the Defence Service Rank/civilian service post (as the case may be ) from which they had retired and the stage of basic pay at the time of their retirement. The basic pay before retirement so arrived at. However, they shall be granted the grade pay of the re-employed post. The maximum basic pay in the pay band of Rs.67, 000/- i.e. the maximum of the pay band PB-4.In all these cases, the non-ignorable part of the pension shall be reduced from the pay so fixed.

Refer the judgments of Hon’ble CAT  Bangalore bench OA No 1276/2013 dated 14.07.2010 and Hon’ble CAT Chennai Bench OA No 310/01207/2015 dated 22.07.2016.

.

Para 4(d): It so clear that where a pensioner who is retired before attaining the age of 55 years is re-employed, in fixing is pay on re-employment, his pension is not fully ignored but is ignored only to the extent provided in Para (d) of clause 4 of DoPT OM dated 5.4.2010 and his pay is to be fixed as per Clause 4(b)(ii) where he is re-employed. In such cases Rule is not fix the Pay at the minimum of Pay scale applicable to the post. But has to be fixed at the same stage at the last pay drawn before retirement.

Refer the Judgment of Hon’ble High Court of Rajasthan OA No 2002(4)WLN 603 dated 07 December 2001.

It therefore for the purpose all the elements constituting Pre-Retirement Pay as mentioned in Para 3.1 of Government of India , Ministry of defence letter dated 12.11.2010 and the DoPT OM dated 8.11.2010 and as obtained from their last Pay Certificate and PPO  have been consolidated to form the Entry Pay. The amount so arrived at has been fixed as the Basic Pay as on the date of joining to the department.

                                                                                          

We must win the battle

Dear Veteran Friends & Seniors,

   

We have reached at the door of our success point.  Ministry of Defence has recommended in our favour and further submitted to the Nodal agency i.e DOP&T.  We should wait for a little bit to get the orders redirected through the DOP&T.  After finalisation of 7th CPC allowances and other disputed issued very soon, in mid of March we are likely to getting our long waiting justice.  We have consulted the renowned advocate of Calcutta High Court and after through study of our case he advised us that we should wait for DOP&T's expected Orders that to be released soon based on the recommendation of Ministry of Defence.  So, we have been advised that we need not file any court case wrt now.

Hope for the best.

Jai Hind.

DESW RECOMMENDED POSITIVE FOR PAY FIXATION OF REEMPLOYED EXSM

Registration Number	:	DDESW/E/2016/01613
Name Of Complainant	:	Bikash De
Date of Receipt	:	31 Oct 2016
Received by	:	Department of Ex Servicemen Welfare
Forwarded to	:	Department of Ex Servicemen Welfare
Contact Address	:	99-A
		South Block
		DHQ PO New Delhi
Contact Number	:	23011804
Grievance Description	:	Raksha Mantris Committee of Experts 2015 para 2.3.3 states about non inclusion of military service pay and other elements of emoluments during fixation of pay on reemployment of military pensioners on the civil side. The committee discussed about problem of Pay fixation related to Commissioned Officers only. The Ex PBOR reemployed in Central Govt Dept are also deprived out of their dues due to non consideration of any of the elements of pre-retirement pay. Details attached in PDF file (click here). Please consider the facts and do the needful.
Current Status	:	CASE CLOSED
Your Feedback	:	Excellent
Date of Action	:	24 Nov 2016
Details	:	Please see attachment.
Attachment	:	open

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

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.

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	Click here to open
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	Click Here
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	Click here to open
4.	CCS (Fixation of Pay of re-employed Pensioners) orders 1986	Pay fixation procedure effected from 1.8.1986	Click here to open
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	Click here to open
6.	DOPT OM No 3/13/2008/Estt/Pay II dated 11 Nov 2008	Pay fixation of pre and post 2006 reemployed pensioners.	Click here to open
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	Click here to open
9.	DOP&TOM No 997012/2014-Estt(Pay) dated 26 June 2014	Regarding existence of DOPT OM dt 11.11.2008	Click here to open
10.	DOPT OM 3/19/2009 dated 08/11/2010	MSP of Exsm to be counted for pay fixation	Click here to open
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	Click here to open
13.	Supreme Court verdict of B. Ravindra Vs DG post dated 08/11/96.	Pay fixation of exsm	Click here to open
14.	PCDA Allahabad circular 166 and 179 dated 07/03/2013 and 12/05/2015	Payment of DA	Click here to open Circular 166 Click here to open Circular 179
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

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