HOW THE MINIMUM PENSION CALCULATED BY PCDA IN CIRCULAR 547

Release of additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners due from 1.7.2015

Release of additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners due from 1.7.2015

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved release of an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to Pensioners w.e.f. 01.07.2015. This represents an increase of 6 percent over the existing rate of 113 percent of the Basic Pay/Pension, to compensate for price rise.

This will benefit about 50 lakh Government employees and 56 lakh pensioners.

The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission (CPC). The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be in the order of Rs. 6655.14 crore per annum and Rs.4436.76 crore in the financial year 2015-16 (for a period of 8 months from July, 2015 to February, 2016). 

MINIMUM PENSION ORDERS FOR PBORS AND COMMISSIONED OFFICERS ARE ISSUED BY MOD w.e.f.1.1.2006

D(pen-pol2-3-Sep-2015

IS REALLY OROP BURDEN IS 8300 CRORES?

SO FAR THE GOVT. HAS BEEN CLAIMING THE BURDEN OF OROP AS 8300 CRORES WHICH IS THE DIFFERENCE OF PENSION PAID SO FAR AND PAYABLE AFTER IMPLEMENTATION OF OROP. WHEREAS, THE GOVERNMENT HAS ALREADY APPROVED THE MINIMUM PENSION OF PRE 2006 RETIREES WHICH  'IN NO CASE LESS THAN 50 % OF POST 2006 PAY OF SAME RANK WITH SAME SERVICE'. THE DEFENCE MINISTRY OFFICIALS HAVE CLEVERLY MISINTERPRETED THE SAME BY ADDING A CLAUSE  'SUBJECT TO 33 YEARS OF SERVICE AND PRORATA REDUCTION. THEY HAVE ALSO MISINTERPRETED THE 'MINIMUM PAY DRAWN IN PAY BAND' AS 'MINIMUM OF PAY BAND' AND CHEATED US. THE SAME WAS CORRECTED BY THE ARMED FORCES TRIBUNAL CHANDIGARH AND LATER CONFIRMED BY APEX COURT. AS A RESULT, THE GOVT. IS FORCED TO PAY THE MINIMUM OF 50% OF PRESENT PAY OF RANK TO ALL VETERANS. THE DEFENCE MINISTRY HAS ISSUED ORDERS TO COMMISSIONED  OFFICERS AND YET TO ISSUE TO THE JCOS/ORS. DEFINITELY THE CALCULATIONS OF OROP WERE MADE BEFORE THIS IMPLICATION.

 IT,S HERE THE ACTUAL QUESTION COMES. WHETHER THE GOVT. HAS TAKEN INTO CONSIDERATION OF THE DUES PAYABLE ON ACCOUNT OF APEX COURT ORDER WHICH ROUGHLY  MAY RUN INTO 6000 CRORES+. (IE. EACH VETERAN@20,000 pa X 30,00,000 PENSIONERS) IF THE SAME IS TAKEN INTO CONSIDERATION THERE WILL BE ONLY 2300 CRORES PAYABLE ON ACCOUNT OF OROP.

I REQUEST THE EXPERTS ON THIS MATTER TO LOOK INTO THIS ASPECT, IF IT IS TRUE THEN THE GOVT CLAIM MAY BE PROVED WRONG.