Thursday, September 17, 2009

Last opportunity for commutation of additional pension for defence personnel who retired between 01-01-2006 and 02-09-2008

Thursday, September 17, 2009

Very Important : Last opportunity for commutation of additional pension for defence personnel who retired between 01-01-2006 and 02-09-2008

Personnel who retired between 01 Jan 2006 and 02 Sept 2008 had availed their commutation of pension at old rates and at the old percentage. The Sixth Central Pay Commission had enhanced the percentage of commutable value to 50%. As a result, some personnel who had retired prior to the announcement of the acceptance of the 6th CPC had gone home with a commutation value at 5th CPC rates and at a lesser percentage. The Govt had then granted an option to such retirees to opt for the new rates if they so desired. Due to lack of circulation of this option, coupled with lack of knowledge of the issue, many did not exercise the same. The problem was compounded by the fact that no cut-off date or last date for exercising the option was mentioned in the letter issued by the Govt of India.

The Ministry of Defence has now decided that the said option for additional commutation may be exercised by such left out retired personnel by 10 October 2009. Those who do not exercise the option by 10-10-2009 would be deemed to have refused the additional commutation.

The entire circular of PCDA(P) on the issue alongwith the Govt letter dated 10-09-2009 on the subject can be accessed and downloaded by clicking here.

Please spread the word since there shall be no separate communication to defence personnel on the issue.

The earlier letter dated 12-11-2008 detailing the modalities of commutation after the 6th CPC can be accessed by clicking here. (Please refer to Para 9.3 of this)

The option certificates and corrigendum of the above mentioned letter dated 12-11-2008 can be accessed by clicking here.

Once again the same request : Please do not email me individual queries or doubts on calculations on the above, my profession does not allow me the luxury of such time. You are most welcome to post your queries / doubts as comments to this post. Thanks.
Posted by Navdeep / Maj Navdeep Singh at 5:01 AM


  1. Pension Anomaly : Majors pre 2006

    History created! Let me inform you regarding the pension anomaly of the Majors pre 2006.

    Major and Lieutenant Colonels were in the same pay scale with a difference of Rank Pay. Majors who are granted pension ,retired after at least 20 years of reckonable service and the pension of Major and Lieutenant Colonel was almost equal with a difference of Rs 500-1000 ( difference of around 10 %).

    After 2005, the situation has completely changed. One becomes Major after 7 years and Lieutenant colonel after 13 years. No officer with more than 13 years of service will retire as Major. This has removed a disparity with civil services and is a major motivation for young generation to join defence services.

    However it has created a situation where an Army officer who retired after more than 20 years of service as Major (pre 2006) is drawing almost half the pension in comparison to the Lieutenant colonel. Lieutenant Colonel/ Colonel (TS) of today perform the same duties as Major Pre 2006.The anomaly has arisen due to revision of rank structure of the defence forces in 2005.

    There is a huge difference difference amounting to almost double the pension between Lieutenant Colonel and Major, a Difference of Rs 14,169/- incl DA. Major Pension incl DA Rs 18370/- and Lt Col Pension including DA is Rs 32539/- ,both retired before 2006. The difference before 6th pay commission was just about Rs 1000/- Per Month .After 6th pay commission .it is Rs 14,169/- .
    It may be appropriate to grant rank and pension of Lieutenant Colonel to the veteran Majors pre 2006 to recognize their contribution to defence of this great nation.

    I would like to know your views and suggestions to seek redressal and the status of this anomaly/disparity between Majors ( Pre 2006) and Lieutenant Colonels.

    Major Subhash Chand Sharma (Retd)

  2. The Bureaucrats are the REAL AND FULL TIME Government!!!!
    Rest all is important but rotational appointments, whether it is The President, The Prime Minister or anyone else.Is REAL AND FULL TIME Government able to meet expectation of the people of the county??
    If yes. It is very healthy for the Country.
    If No/Why don’t we review the system??

    The fact is,Bureaucracy is not performing, it is slow and has FAILED in delivering. There self interest is on TOP. Can someone tell me the reason for not accepting the genuine demand of Defence forces? ??Why can’t parity for pension with civil counterparts be accepted. If all the all the demands of IAS lobby gets accepted.

    One who is recommending is also an IAS officer.Bureaucracy has failed to deliver and system may be overhauled. Performance parameters should be laid down for the bureaucrat. Non performers should be thrown out.Only the bearer knows where the shoe pinches. The Cabinet Secretary is not right person to take the decision regarding pension of defence forces. The society which doesn’t respect and look after its worriers can not sustain for a long. The The right people to decide about defence pension are the three services Chiefs and their representatives.

    How many politicians and bureaucrats have their dependents, in defence forces??
    Almost non or negligible!! Why?? Coz it is hazardous and MOST Challenging job. One has to live in MOST inhospitable conditions for the HONOUR of the Country.

    Most modern and sophisticated equipment can not stop the motivated soldiers.
    What may come? But!!!Army marches on its. If it is staved, no one can save the country. I hope good sense will prevail in the present Government and bureaucrats will mend their ways and accept just demand of soldiers. Bureaucracy is not performing; it is slow and has FAILED in delivering. It required overhauling. SOLDIERS HAVE DELIVERED AND DESERVE IT. It is national interest and would most morale of defence forces and must be accepted.

  3. mujhe 6th pay commision ke commutation ke rate dekh kar dukh hua ki sarkar ne yeh rate badhane ke bajay kam kar diye hain. sath hi pension ne 15 sal ke bad restore hona hail. hai na ascharya. upar se gratutity bhi kam kar di hai. isase sabhi pension ane walon ko nuksan uthana par raha. kya iske bare main kuchh ho raha hai ?
    MSP ka bhugtan jan 2006 se ho raha hai ya nahi ?