Hand Book 2021 on Defence Pension for Personnel Below Officers Rank (PBORs) 

Hand Book 2021 on Defence Pension for Personnel Below Officers Rank (PBORs)

HAND BOOK

DEFENCE PENSION
FOR

PERSONNEL BELOW OFFICERS RANKS (PBORs)
2021

Pension in respect of Armed Forces Personnel is in fact a very complex subject in itself as the orders issued thereon are scattered. Nothing is available on which one can lay his hands for a compact knowledge. This has given me an idea to put all the relevant orders issued on a particular subject at one place in the form of a Handbook.

With this fact in view, I reviewed the Govt. letters issued upto 12/2020 and summarize them precisely on each subject and tried to put them in the Handbook separately for PBORs and ICOs.

For this I got blessings of benevolent Principal Controller Mr. Rajiv Ranjan. I express my heartfelt gratitude to him.

Further, I would also like to convey my sincere thanks to Officer In Charge Grants Tech. Mr. A. K. Malviya whose valuable guidance and cooperation of his staff at each stage have helped me a lot.

At last, I request esteem readers to ignore the shortcomings, if any, considering the same as my incompetency.

L.P. CHAURASIA, IDAS
Retired DCDA (P)

PENSIONARY AWARDS IN RESPECT OF PERSONNEL BELOW OFFICERS RANKS

INDEX

Pensionary Awards in Respect of PBOR

Service Pension

Qualifying service for earning Service Pension

1. The minimum period of qualifying service actually rendered and required for earning Service Pension will be 15 years (20 years in case of NCs(E))

Note : The term “qualifying service “will mean actual qualifying service rendered from the date of enrolment to the date of discharge. This will be subject to total qualifying service not exceeding 33 years. The provision of weightage has been withdrawn w.e.f. 01.01.2006.

2. Service rendered in fraction of a year equal to three months and above shall be treated as a completed one year.

[GOI MOD Nos 1 (5) /87/ D(Pen/sers ) dt. 30.10.1987, 03.02.1998 and 17(4) / 2008 (2)/ D(Pen/ Pol) dt. 12.11.2008]

Condonation of deficiency in service

3. Deficiency in service upto 6 months may be condoned by Officer in-Charge (Records) and upto 12 months by Service HQrs. to make the individual eligible for a minimum pension.

Determination of amount of service pension

4. Linkage of full pension with 33 years of qualifying service is dispensed with w.e.f. 01.01.2006.

Now, the service pension is calculated at 50% of the reckonable emoluments last drawn or average of reckonable emoluments drawn during the last 10 months, whichever is more beneficial subject to minimum of Rs.9000/-PM

Reckonable emoluments for calculating Service Pension

5. The term “reckonable emoluments” will mean pay in the pay matrix, MSP, X group pay and classification allowance, if any last drawn.

Retirement Gratuity

6. An individual who has completed 5 years qualifying service and is eligible for Service/disability/invalid pension or gratuity of any type shall be granted on the termination of his service a retirement gratuity equal to 1/4th of reckonable emoluments for each completed six monthly period of qualifying service subject to a maximum of 16 ‘% times the reckonable emoluments.

The maximum limit of all kinds of gratuity shall be Rs.20 lakhs. This ceiling shall be increased by 25% whenever dearness allowance rises by 50% of the pay.

[Auth: MoD letter of 12.11.2008 and 04.09.2017]

Reckonable emoluments for calculating Retirement Gratuity

7 The term “reckonable emoluments” will mean pay in the pay matrix, MSP and X group and classification allowance admissible on the date of retirement plus DA.

Note 1 : An example showing calculation of service pension, retirement, gratuity, etc. based on the provisions of 7th CPC is given in illustration no. 1

Note 2: Evolution of pensionary structure are given in Appendix 1

Note 3: Effective dates from which rate of pension has been revised are given in Appendices 2-5

Commutation of pension

8 Personnel below Officer Rank shall be entitled to commute for a lump sum payment upto 50% of his pension which is sanctioned for life. Prior to 2-9-2008, this limit was 45%.

Note 1 : Temporary increase, ad-hoc increase, interim relief, graded relief, ad-hoc relief etc. given in old regime not commutable. The dearness relief is also not commutable.

Note 2: The additional pension sanctioned to Havildars granted Honarary Rank of Naib Subedar in old regime was commutable, similarly, revised pension of HNS for pay on Notional promotion basis is also commutable.

9 A pensioner who is in receipt of pension shall be eligible to commute a portion of his pension within one year from the date of discharge/ invalidment without medical examination. In case, a pensioner applies for commutation of pension after one year from the date of discharge, commutation of pension will be done only after medical examination.

10 The application for commutation of pension will be submitted to pension sanctioning authority through Record Office if pension has not been sanctioned. After the grant of pension, application for commutation of pension is to be submitted to Pension Sanctioning Authority through concerned Record Office.

Calculation of commuted Value of Pension

11 The calculation of commuted value of pension shall be computed as under:-

Amount of pension commutable X 12 X purchase value (as per commutation table for the age next birth day)

Note:- The commutation table is given in Army instruction No. 85/71. This has been substituted by a new table annexed at annexure of Govt. letter of 12-11-08 and is applicable w.e.f. 02.09.2008.

[https://pcdapension.nic.in/pcda/misc/handbook_Pbors.pdf]

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