ADJUTANT GENERAL’S BRANCH
ADDITIONAL DIRECTORATE GENERAL PERSONNEL SERVICES
PENSIONARY ENTITLEMENTS : ARMY PERSONNEL AND NEXT OF KIN
INTRODUCTION
1. It has been observed from the nature of queries being received at this Headquarters from time to time that many serving personnel do not possess adequate knowledge of their pensionary entitlements in the events of retirement/release/invalidment as well as their Next of Kin’s entitlements in the event of death whilst in service or after retirement. To educate such personnel, salient features of Pensionary Entitlements are outlined in the succeeding paragraphs.
SERVICE PENSION
Pensionary Benefits on Retirement/Release/Invalidment.
Retiringh Pension(Officers)
2. Service Pension is admissible on completion of 20 Years of minimum qualifying service. Weightage for early retirement is added. Weightage applicable for different ranks is given below :-
(a) Lieutenant - 9 yrs.
(b) Captain - 9 Yrs
(c) Major - 8 Yrs
(d) Lt Col(TS) - 5 yrs.
(e) Lt Col(S) - 7 yrs.
(f) Col - 7 yrs.
(g) Brig - 5 yrs.
(h) Maj Gen & above - 3 yrs.
3. Pension is now computed at 50% of average reckonable emoluments drawn during 10 months before retirement (Basic Pay + Rank Pay + Non Practicing Allowance where admissible) for a maximum service of 33 years. Where the actual service plus appropriate weightage is less than 33 years, pension is proportionately reduced.
Formula for calculation of Service Pension - (Average of 10 months RE Qualifying Service + Weightage)/66
Service Pension (JCOs/OR)
4. Service Pension is admissible on completion of 15 yrs minimum qualifying service. On completion of 15 yrs of service, weightage equal to 5 yrs to compensate for early retirement is added for computing pension. Pension is calculated on the basis of maximum pay of the renk and pay group actually held for 10 months continuously. Pension is equal to 50% of maximum pay (Pay + Classification Pay) of the rank/group for a maximum of 33 yrs. When total service (actual service + Weightage of 5 yrs) is less than 33 yrs, pension is proportionately reduced. Based on this formula, standard pension rates for each rank have been laid down.
Commutation of Pension
5. Service Pension can be commuted upto 43% in case of Officers and 45% in case of PBOR.
Formula for calculating Commuted value of Pension(CVP)
CVP= Service Pension x 43 or 45/100 x 12 x Commutation Factor #
Retiring/Service Gratuity
6. Where service rendered is less than the minimum qualifying service to earn a pension, but is five years or more in case of JCOs/OR and 10 years or more in case of officers, a Service Gratuity is admissible at the rate of 1/2 months’s pay for every completed six months’ service. However, no weightage factor is admissible.
Note : Dearness Allowance admissible at the time of retirement/discharge forms part of reckonable emoluments for the purpose of gratuity.
Retirement Gratuity
7. Retirement Gratuity is admissible on retirement or invalidment, but after having rendered a minimum service of five years. A weightage of five years is also added to the actual service rendered, subject to the total not exceeding 33 yrs. The rate is 1/4 month’s pay for every completed six months service. The maximum ceiling is Rs. 3.5 lakhs.
Note : Dearness Allowance admissible at the time of retirement/discharge forms part of reckonable emoluments for the purpose of gratuity.
Formula for calculating Retirement Gratuity
(RE + DA x Qualifying Service + 5)/2
Subject to a maximum of Rs. 3.5 Lakhs and 33 years of service.
DISABLITY PENSION
8. It is admissible on invalidment from service or at the time of retirement, if a serviceman suffers from a disability, which is accepted by the Competent Authority, as either attributable to or aggravated by service and disablement is assessed at 20% or more. This has two elements namely, service element and disability element as explained below :-
(a) Service Element . It corresponds to the service rendered. No minimum service is stipulated. For Officers, it is calculated like Retiring Pension. For JCOs/OR, it corresponds to service to service rendered but it shall in no case be less than 2/3rd of the minimum service pension admissible to the renk/group.
(b) Disability Element. The existing rates for 100% disability are as follows :-
(i) Officers and Hony Commissioned Officers – Rs. 2600/- p.m.
(ii) Junior Commissioned Officers – Rs. 1900/- p.m.
(iii) Other Ranks – Rs. 1550/- p.m.
Note : For a lesser degree of disablement the disability element is proportionatlely reduced.
Disability Element on Invalidment
9. Where an Armed Forces Personnel is invalided out, the extent of disability or functional incapacity shall be determined in the following manner for the purpose of computing the disability element :-
Percentage of disability as assessed Percentage to be reckoned for
By invaliding medical board computing of disability element .
Less than 50 50
Between 50 and 75 75
Between 76 and 100 100
Lump Sum Compensation in lieu of Disability Element
10. In a case where a service personnel is found to have a disability which is accepted by the competent authority as attributable to/aggravated by service factors, and assessed at 20% or more for life, but the individual is retained in service, despite such disability, he is paid a compensation in limp sum (in lieu of the disability element) equal to the capitalized value of disability element. For this purpose, the rank held at the time of onset of the disability and age next birthday is reckoned with reference to the date of onset of the disability, with loading to age, if any, recommended by the Medical Board. Once a compensation is paid in lieu of the disability element, there is no further entitlement to the disability element for the same disability. Such disability is not counted for grant of any pensionary benefits or relief subsequently.
Constant Attendance Allowance (CAA)
11. When a disability is assessed at 100% and is accepted as due to service, a Constant attendance allowance is also admissible to all ranks provided it is recommended by IMB. The existing rate of CAA is Rs. 600/- p.m.
Invalid Pension/Gratuity
12. When an officer or a JCO/OR with a service of 10 years or more is invalided out on account of a cause/disability neither attributable to nor aggravated by military service, he is entitled to an Invalid Pension, which is equal to the service element of disability pension as explained in para 8 above. If the service rendered is less than 10 years, an Invalid Gratuity equal to 1/2 month’s pay for every completed six months service is admissible.
Note : Dearness Allowance admissible at the time of invalidment forms part of reckonable emoluments for the purpose of Invalid Pension.
War Injury Pension
13. Admissible when injury has taken place during against extremists, terrorists, and antisocial elements, in war or war like operations. In cases of invalidment on account of war injury, he/she shall be entitled to War Injury Pension consisting of Service element and War Injury element as follows :-
(a) Service Element. Equal to retiring/Service Pension to which he/she would have been entitled on the basis of his/her pay on the date of invalidment but counting service up to the date on which he/she would have retired in that rank in course including weightage as admissible. There shall be no condition of minimum qualifying service for earning this element.
(b) War Injury Element. Equal to reckonable emoluments last drawn for 100% disablement. However, in no case the aggregate of Service element and War element should exceed last pay drawn. For lower percentage of disablement, War Injury element shall be proportionately reduced. Provisions contained in Para 9 above shall equally apply to individuals invalided out on account of disability due to war injury.
Retirement Gratuity in War Injury Cases
14. It is calculated on the basis of pay drawn on the date of invalidment but counting service up to the date on which he would have normally retired in the rank, plus weightage of 5 years subject to maximum of 33 years service.
Note : Dearness Allowance admissible at the time of invalidment forms part of reckonable emoluments for the purpose of Retirement Gratuity.
Lump Sum Compensation in lieu of War Injury Pension
15 Armed Forces personnel who are retained in service despite disability due to war injuryn for life and retire subsequently can opt for compensation in lump sum in lieu of War Injury Element or for drawal of War Injury element of War injury element of War injury pension on final retirement. This provision is applicable to cases occurring on or after 01 Jan 96. The existing rates for calculation of lump-sum compensation in lieu of war injury pension for 100% disability for life are as under :-
(a) Commissioned Officers and Hony Commissioned Officers - Rs. 5200/- PM
(b) Junior Commissioned Officers - Rs. 3800/- PM
(c) Other Ranks/NCs(E) - Rs. 3100/- PM
16. For disability due to war injury of less than 100% the rates shall be proportionately reduced. The one time compensation in lump sun in lieu of war Injury element will be equal to the capitalized value of War Injury element which shall be calculated in accordance with regulation 344 of the pension regulations for the Army and will be equal to the capitalized value of war injury element for the actual percentage of the disability at the appropriate rate mentioned above. For this rank shall be the rank held at the time of injury sustained by the individual due to war. Age next birthday will be reckoned with reference to the date of onset of disability with loading to age, if any, recommended by the competent Medical Board.
17. Compensation in lieu of war injury element will be payable provided the degree of disablement is equal to or more than 20%. Once the compensation in lieu of War injury element due to disability for life has been paid, there shall be no further entitlement on account of such a disability at the time of retirement/discharge from the Armed Forces. Since this is one time payment on account of compensation, no restoration will be permitted.
War Injury Element on Subsequent retirement
18. Where an Armed Forces personal is retained in service despite disability due to War injury, and does not opt for lump-sum compensation in lieu of war injury, he/she shall be entitled to the payment of war injury element on a monthly basis at the rates prescribed under para 14 above on subsequent retirement/discharge or on completion of the term of engagement.
Liberalised Disability Pension
19. Armed Forces Personnel sustaining disability due to acts of violence/attack by terrorists, anti social elements etc. Shall be entitled to same pensionary benefits as admissible to war injury cases on invalidment/retirement/discharge including lump-sum compensation in lieu of disability as mentioned in para 15 above. However, on invalidment they shell be entitled to disability element instead of war injury element in addition to service element. The service element will equal to retiring/service pension to which he/she would have been entitled on the basis of his/her pay on the date of invalidment but counting service upto the date on which he/her would have retired in that rank in the normal course including weightage as admissible. Provisions of para 6 of Ministry of Defence letter No. 1(6)/98/D (Pen/Service) dated 03.02.98 shall apply for calculating retiring/service pension. There shall be no condition of minimum qualifying service for earning this element. The disability element would be admissible as laid down in para 8(b) above. For lower percentage of disablement, this amount shall be proportionately reduced However, in no case aggregate of service element and disability element shall be less than 80% of reckonable emoluments last drawn.
Note: Armed Forces personnel sustaining disability due to acts of violence/attack by terrorists, anti social element etc. Shall not be treated as War Disabled. Hence they will not be entitled to any special concession/dispensation otherwise available to war disabled.
Commutation of Pension
20. Officers and JCOs/OR can commute their retiring/service pension up to a maximum of 43% and 45% respectively. The amount of commuted value of pension depends upon the age of the individual and in case of Low Medical Category personnel, on the recommendations of the Medical Board. PCDA (P) Allahabad releases the commuted value of pension after receiving a copy of Annual Medical Examination Report (AFMSF 18) Unapproved copy of Release Medical Board (AFMSF – 16) with annotation of longevity from CDA (O) Pune. The commuted value of pension is calculated on the basis of an officer’s age on next birthday, which falls after the date of retirement. Commuted portion of pension is restored after 15 years from the date of commutation on applying to the Pension Disbursing Authority. An example showing how commuted value of pension is worked out, is given below :
(a) Date of retirement - 30 Apr 96
(b) Total amount of pension admissible - Rs. 6400/- PM
(c) Date of Birth - 15 Apr 46
(d) Age next birthday - 51 years
(e) Commutation factor - 12.95
(f) Amount of maximum pension that could be commuted
(43% of Rs. 6400/- PM - Rs. 2752/-
(g) Commuted value 2752x12x12.95 = Rs.4,27,660.00
Medical Allowance
21. All pensioners are entitled to get medical allowance @ Rs. 100/- p.m. subject to their giving an option to forego the OPD treatment.
FAMILY PENSION
Pensionary Benefits on Death Whilst in Service or After Retirement Ordinary Family Pension
22. When a servicemen dies in service or after having retired with a pension, on account of a cause neither attributable to nor aggravated by military service, the widow or children (son or daughter up to 25 years of age or marriage whichever is earlier) is entitled to Ordinary Family Pension. Widowed/divorced daughter is also entitled to family pension subject to the conditions – up to 25 years of age, income less than Rs. 2550/- pm or re-marriage whichever is earlier. Dependent parents are entitled to Ordinary Family Pension only when the deceased has left behind neither a widow nor a child, provided that income of dependent parent is less than Rs.2550/- pm. The rate of Family pension is 30% of pay last drawn by the deceased subject to minimum of Rs. 1275/- pm. (Pay includes Basic pay plus Classification Allowance or Rank Pay + Non Practicing Allowance as admissible). If service rendered is 7 years or more. Ordinary Family Pension at enhanced rate of 50% of pay is admissible for the first 7 years or up to the deemed age of 67 years whichever is earlier. Thereafter, Ordinary Family Pension at normal rate i.e., 30% of pay is admissible.
Note : On remarriage of widow, Ordinary Family Pension passes on to the eldest eligible child.
Special Family Pension
23. If the cause of death of serviceman is accepted by the competent authority as either attributable to or aggravated by Military Service, the family is entitled to Special Family Pension @ 60% of the last reckonable emoluments drawn by the deceased subject to a minimum of Rs. 2550/-.
Dependent Pension
24. Admissible to parents largely dependent on the Deceased Officer, in case of officers who die as bachelors in account of causes attributable to service. The rate is 50% of Special Family Pension that would have been sanctioned to the widow had the officer been married. In the absence of dependent parents, dependent brothers/sisters are eligible for the pension.
Liberalised Family Pension
25. Admissible when death takes place during action in war, war like operations, border skirmishes, action against terrorists etc. Liberalised Family Pension is equal to the reckonable emoluments last drawn by the deceased. Liberalised Family pension at this rate is admissible to the widow for life. In the case of officers however, if he dies as a bachelor, dependent parents will be entitled to 75% of last pay drawn by the deceased and at 60% liberalized family pension single parent. In case of Personnel Below Officers’ Rank, the entitlement of Liberalised Family Pension is same for widow and parents.
26. Family pension on remarriage of widow. In case of Special Family Pension and Liberalised Family Pension, the same would be continued as per the following details :-
(a) Full Liberalised Family Pension or Special Family Pension if the widow supports children.
(b) If she does not support children then Ordinary Family Pension to the widow. The Children are eligible for 60% of Liberalised Family Pension or 50% of Special Family Pension as the case may be.
(c) Second Life Award is admissible to the dependent parents and brother(s)/sister(s) of PBOR only.
Pension to Handicapped Children
27. Under the existing orders, handicapped children are entitled to family pension for life after of both the parents. The officers/PBOR should intimate MP 5(b) in case of officers, Record Office concerned in case of PBOR for inclusion of the details in their service documents. The request should be accompanied by a medical certificate from doctor not below the rank of Civil Surgeon stating that the child is incapable of earning his/her livelihood.
Removal of Means Limit For Pre – 86 Cases
28. As per existing policy, Dependent Pension is sanctioned to parents of an officer who dies as a bachelor, provided his death is attributable to military service. Grant of Dependent Pension was subject to income limit of parents. This was Rs. 12000 per year in case of both parents and Rs. 9000 per year in case of a single parent. This condition however, was removed in 1986 but was applicable to only those cases that happened after 01 January 1986. The criterion of income limit has now been dispensed with in pre-86 cases as will vide Government letter No. B/38207/36/AG/PS-4(b)/2640/D (Pen-C) dated 21 October 2002.
Two Family Pension to Widows
29. A Defence pensioner re-employed with a Private/Public Sector Undertaking was entitled to pensions from both the organizations. However, his NOK was only entitled to one pension. These rules have been revised and now a widow is also entitled to both pensions vide Government letter No. 2/CC/B/D (Pension)/Services/2001 dated 28 August 2001. This rule is applicable only to those who were employed with Private/Public Sector Undertakings.
Death Gratuity
30. Admissible in case of death in service at the following rates :-
Length of Service Amount
(a) Less than 1 years 2 times pay
(b) 1 to 5 years 6 times pay
(c) 5 to 20 years 12 times pay
(d) More than 20 years One month’s pay for every completed year subject to maximum of 33 years or Rs. 3.5 lakh whichever is less.
Note : Dearness Allowance admissible at the tome of death forms part of pay for the purposed of Death Gratuity.
EX – GRATIA AWARD
Ex – Gratia Payment by Central Govt
31. NOK of Armed Forces personnel killed under following circumstances are entitled to exgratia w.e.f. 01 Aug 97 as indicated against each :
(a) Death occurring due to Accidents in the course of performance of duties - Rs. 5 lakh
(b) Death occurring during
(i) Enemy action in International war or - Rs. 7.5 lakh
Border skirmishes of - Rs.10 lakh If specifically notified by the Govt
(ii) Action against Militants, Terrorists, Extremists, etc - Rs. 7.5 lakh
Ex – Gratia Payment by State Govt
32. Some State Govts. Are also paying exgratia to the NOK of service personnel killed in counter insurgency operations within their states, which is in addition to the ex-gratia payment by Central Govt.
Benefits to SSCOs and ECOs
33. There is no Retiring Pension scheme for Short Service Commissioned Officers and Emergency Commissioned Officers who join service directly from civil. In their case, on release, they are entitled to terminal gratuity at the rate of ½ month’s pay for every completed six month’s service.
# Commutation Factor (CF)
(Based on Age next birthday)
CF
Age
CF
Age
CF
43
15.15
51
12.95
43
15.15
52
12.66
36
16.72
44
14.90
53
12.35
37
16.52
45
14.64
54
12.05
38
16.31
46
14.37
55
11.73
39
16.09
47
14.10
56
11.42
40
15.87
48
13.82
57
11.10
41
15.64
49
13.54
58
10.78
42
15.40
50
13.25
59
10.46
60
10.13
ECHS – APPREHENSIONS / POINTS FROM ESM
Point. 1. Maj Gen and above are not becoming members of this Scheme. Are there going to be different medical facilities for them & the others ?
Clarification. No. There will be equal treatment to all, irrespective of rk. However, all rks will get hospitalization accn as per entitlement. Formal instrs are awaited.
2. Will we be denied Military Hospital facilities once we join ECHS ?
.....The ECHS member will report for treatment to clinic est under the scheme. He may be ref for further treatment to MH.
3. After depositing the MRO, how long will it take for us to become members of ECHS and from what
time will we be entitled for the facilities of ECHS ?
........It may take 3 months from the date of accepting application for membership. The facilities will be available on producting the ECHS Membership Card.
4. After depositing the MRO and ECHS form, if within few days I get emergency medical treatment in some Civil Hospital & pay from my own pocket, will I be entitled to re-imbursement ? When will we get list of auth civil Hospitals ?
........No, there is no provision for cash reimbursement as per the normal rules.
5. Is the compensation going to be only to the extent of 60% or will it be 100% ? Will the Compensation on any one account / for one disease be only once or will it be for as many times as required ?
.......The scheme covers all diseases w/o restriction on expenditure.
6. If one becomes member at Chandigarh falls sick in Kerala, will ECHS clinics located in Kerala State provide him all the facilities ?
....Yes. ECHS Membership smart Card will enable a member to get med treatment at any of the clinics est under the Scheme.
7. As of now no ECHS clinics have been est, where does one report after becoming a member of this Scheme ?
......At the Rxn Centre of ECHS clinic or of the designeated Mil Hosp, if Clinic not est.
8. If a member of the ECHS prefers treatment / admission in an Army Hospital, will he be allowed this at his discretion or will it be at the discretion of the Medical Officer at the ECHS Clinics, who may like to refer all or most of ESM to Civil Hospitals.
Further referral will be at the discretion of med Offr of the ECHS Clinic. However, if the Hosp/Facilities preferred by the Member is empanelled due consideration to his choice will be given.
9. After joining ECHS will a member have the liberty to get him / her self treated from any good
Hospital or will he have to go to the nominated Hospitals to which he will be directed by the MO Clinic? After joining ECHS will a member have the liberty to get him / her self treated from any good Hospital or will he have to go to the nominated Hospitals to which he will be directed by the MO Clinic?
....... Yes, the patient will be ref by the MO clinic to one of the Hosps approved on the Panel of ECHS. The choice of the Member, if empanelled will be given due consideration.
10. If a member of ECHS falls sick while abroad and gets the treatment in that country, which may be very expensive, will he be entitled to re-imbursement ?
........ No provision has yet been made for this eventuality.
11. How can an ESM, who had opted for Medical Allowance, become a member of ECHS after changing his option ?
..........The ESM can become any time w/o any time stipulation laid so far. However, the treatment will be prospective.
12. Will an ECHS member, after an eye operation be fitted with an imported lense, which is more
expensive and better or will he be entitled to only Indian lense.
......The best available treatment will be extended to the ESM at the discretion of Med Offr.
13. For heart treatment if a member of ECHS opts for “Escorts” rather than R and R Delhi, will he be
entitled to 100% reimbursement ?
The ref will be made by the MO Clinic. However, option of member will be given due consideration, if that Hosp is empanelled.
14.For heart treatment different variety of PACE – MAKERS are available at different prices. In case a member of ECHS wants best which of course is costliest, will he be entitled to 100% re-imbursement ?
There is no provision of each reimbursement under the Scheme.
15. Will an ESM who does not become a member of ECHS, be auth the same medical facilities which are presently auth to him ?
Only Indoor OPD facilities will be available to a non-member, if he is drawing Med Allce. If Med Allce is not being drawn, he is entitled for indoor as well as OPD treatment. However a non-member will be entitled such treatment only for spouse & dependent children.
16. Revised rates of ECHS membership are too high and may be reconsidered for reduction.
These are approved by MOD & are in consonance with other Govt Scheme.
17. Only one slab for contribution above basic pension of Rs 7501/- is not justified.
Slabs as under may be considered :-
(a) Rs 7,501/- to Rs 10,000/-
(b) Rs 10,001/- to Rs 12,500/-
(c) Rs 12,501/- to Rs 15,000/-
(d) Rs 15,001/- & above
The slabs have been approved by the Govt in consonance with the subs being charged under other Govt Schemes.
18. ESM should be given option to deposit contribution in one lump sum or in three or four equal installments.
19. Refund of expenditure should be delegated to Regional Headquarters for expeditious refund of bills.
20. Facilities provided under ECHS should be in addition to the present medical facilities and should in no way be in lieu of the facilities presently auth.
The aim of the scheme is to provide exclusive med treatment to ESM. The treatment available under the scheme is all comprehensive & will in the end prove much more beneficial.
21. In Military Stations ECHS clinics should be loc along with Military Hospitals.
This aspect is being ensured to the max extent possible.
22. An ESM should have liberty to go to ECHS clinic or Military Hospital whichever is near to his place of residences.
A member will have to report to the ECHS Clinic in the first instance. If further referral is reqd, his choice will be given due consideration
(Source : Western Command ESM Helpline)
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