pension

Pension Revision For Wing Commander And Equivalent Retirees After Removal Of Pro-Rata Reduction

After a lot of amendments, the VI CPC pay-band PB-4 was made applicable to Wing Commanders vide SAFI 2/S/2008. The pay-band was, and still is, 37400 to 67000 + Rs.8000/- as Grade Pay and Rs. 6000/- MSP.

Consequently, the minimum guaranteed pension for Wg Cdrs who had retired before 01 January 2006 was fixed at minimum of pay in VI- CPC pay-band at (37400+8000+6000)/2 = Rs.25700/-.

Later on, after a great many rounds of discussions and representations, the Government finally corrected this pension fixation corresponding to “minimum of the fitment table for the rank in the revised pay band”. This level was the VI CPC basic pay of 38530/-. With this basic pay, the minimum guaranteed pension for pre 01 January 2006 Wg Cdr retirees was fixed at (38530+8000+6000)/2 = 26265/-. This minimum guaranteed pension was higher than the VI pensions calculated based on pensions drawn upto 31 Dec 2005 by the same veterans.

This minimum guaranteed pension became applicable to all pre 01 January 2006 Wg Cdr retirees who had completed 33 years of qualifying service including weightage, which was 7 years in the case of Wg Cdrs (Select) and 5 years in the case of Wg Cdr(TS). Therefore, vide circular 500, for pre 2006 Wg Cdr(TS) retirees with QS of 28 years (i.e. 33 minus 5) and for pre 2006 Wg Cdr(Select) retirees with QS of 26 years (i.e. 33 minus 7) the pension was fixed at 26265/- with effect from 24 Sep 2012. The date was subsequently changed to 01 January 2006.

For pre 2006 Wg Cdr retirees who had served less than 26 years (without weightage) and pre 2006 Wg Cdr (TS) retirees who had served less than 28 years, there was pro-rata reduction on this minimum guaranteed pension as per years they had actually served. This was in line with the rule of pro-rata reduction which was applied to the actual pension calculated based on last pay drawn at time of retirement before 01 Jan 2006.

However, as pro-rata reduction was done away with for those retiring after 01 January 2006, it was grossly unfair that even the minimum guaranteed pension of pre 2006 retirees was subjected to pro rata reduction. This has now been done away with. Therefore, as per current understanding and barring some creative interpretations of the court orders on the matter, all Wg Cdrs, regardless of QS, would get, as they should have from the very start, the minimum guaranteed pension of 26265/- from 01 January 2006 till the time OROP was introduced viz., July 2014.

The following points merit consideration :

• The minimum guaranteed pension from 01 Jan 2006 to 30 June 2014, now expected to be drawn by all pre 2006 Wg Cdr retirees, corresponds to the first stage in the VI CPC fitment table for PB-4 i.e. as applicable to a current Wg Cdr with a service of 13 years.

• An AFT case QA 34/2016 has reportedly been taken up for basing pensions of pre 2006 retirees on increments actually earned by them. If pre 2006 Wg Cdr retirees compare their last pay statements (in the DND Statements issued at time of settling the Rank Pay arrears) they could come to some understanding of implications on their pensions for the period 01 January 2006 to 30 June 2014. The aim here is not to get extra hopeful of further enhancements in pensions but to obtain a clearer picture of how the current pension fixation compares with one that could be based on increments earned before retirement on a date prior to 01 Jan 2006. Here is a tabular presentation :

Pre Revised (V CPC) Pay In Scale Of Wg Cdr Revised Pay In VI CPC PB-4 Grade Pay MSP Total VI CPC Revised Pay : Wg Cdr Corresponding Pension Calculation For Pre 2006 Wg Cdr Retirees For 01 Jan 2006 To 30 June 2014 (If Based On Actual Stage In Pay Scale At Time Of Retirement) Remarks
13500 38530 8000 6000 52530 26265 Present Minimum Guaranteed Pension From 01Jan2006 To 30Jun2014 Now Expected To Be Drawn By All Pre 01 Jan 2006 Wg Cdr Retirees.
13900 38530 8000 6000 52530 26265
14300 39690 8000 6000 53690 26845
14700 39690 8000 6000 53690 26845
15100 40890 8000 6000 54890 27445
15500 40890 8000 6000 54890 27445
15900 42120 8000 6000 56120 28060
16300 42120 8000 6000 56120 28060
16700 43390 8000 6000 57390 28695
17100 43390 8000 6000 57390 28695
17500 44700 8000 6000 58700 29350
17900 44700 8000 6000 58700 29350
18300 46050 8000 6000 60050 30025
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