PENSION INFORMATION PENSION INFORMATION/ ORDERS n INSTRUCTIONS Authorization of Pvt Ltd Banks for Disbursement of Pension to Defence PensionerI

n pursuance of Reserve Bank of India's decision on the subject, the following pr ivate Sector Banks have been authorised for disbursement of disbursement of pen sion to Defence pensioners:- (a)HDFC Bank Ltd (b)UTI Bank Ltd (c)IDBI Bank Ltd (d)ICICI Bank Ltd Exemption of Income Tax on iberalised Family PensionA case was initiated by PS D te for exemption of income tax on Liberalised Family Pension in the year 2002. A fter concerned efforts a Gazette Notification has been issued wef 09 Feb 2005 fo r exemption of Liberalised Family Pension from the income for purposes of exempt ion of income tax if death of the member of armed forces (including Para Militar y Forces) has occurred under following circumstances in the course of the milita ry operation and duties. (a)Acts if violence or kidnapping or attacks by terrori sts or anti-social elements (b)Action against extremists or anti-social elements (c)Enemy action in international war (d)Action during deployment with a peace keeping mission abroad (e)Border skirmishes (f)Laying or clearance of mines including enemy mines as also mine sweepingopera tion (g)Explosions of mines while laying operationally oriented mine-fields or liftin g ornegotiation of mine-field laid by the enemy or own forces in operational are as nearinternational borders or the line of control (h)In the aid of civil power in dealing with natural calamities and rescue opera tions (j)In the aid of civil power in quelling agitation or riots or revolts by demons trators NRI Pension- Not to be Stopped on Change of Nationality A l arge number of representations were being received from Ex-servicemen Associatio n/ NRIs regarding stoppage of pension of Ex-Servicemen on their acquiring foreig n nationality. However, in case of civil pensioners change in citizenship by any NRI pensioners did not affect their entitlement. A case was taken up with the o ffice of PCDA(P), Allahabad and office of CGDA, New Delhi in 2003 for bringing the Armed Forces pensioner at par with civilian pensioners. Govt letter has been issued providing that even in the case of Armed Forces Pensioners the entitleme nt of pension will remain unaffected on the change of nationality and pension wi ll continue to be paid by his/her pension disbursing agency. However, the pensio ner should intimate the change of nationality as per the provision to the Pensio n Disbursing Agency as well as to the PCDA (Pension), Allahabad for updation of their records. Two Family PensionsThe re-employed Army Personnel have been made eligible for tw o family pensions i.e. one from army and the other from civil side if re-employe d in organizations covered under Employees Pension Scheme 1995 and Family Pensio n Scheme 1971. Grant of Liberalised Family Pension to Widows Who Remarried Before 01 Jan 1996 The widows who remarried after 01 Jan 1996 were allowed to retain their Liberali sed family Pension/Special Family Pension while widows who remarried before 01 J an 1996 were left out. This has been creating great injustice to pre 1996 widows . A case was taken with MoD for extending these benefits to pre 1996 cases also. MoD has issued orders vide their letter No 1(1)/2001/D(Pen-C) dated 24 Jun 2005 granting Liberalised Family Pension benefits to pre-1996 cases wef 24 Jun 2005.

This will greatly benefit the widows who remarried before 01 Jan 1996. Exemption of TDS From Pension Income Tax was hitherto deducted at source from family pensioners by the Pension s Disbursing Agency. Min of Fin (CBDT) has now clarified that family pension do es not fall under the category of salary, therefore, no tax is liable to be dedu cted at source. Ex-Gratia Award Disability Cadets (Direct) Rates of Ex-Gratia disability award to disabled cadets have been revised from Rs 600/-p.m. to Rs 2100/-p.m. wef 01 Aug 97 issued vide Govt of India, Min of Def letter No 1(6)/99/D(Pen-C) dated 15 Sep 2003. Pensionary Benefits to Nk And Hav Granted Assured Career Progression (ACP) Govt letter has been issued vide No. B/39022/AG/PS-5(Policy)/29/A/D(Pen/Sers)/06 dated 10 Jan 2006 stating that pension in respect of JCOs/OR granted Assured Ca reer Progression (ACP) upgradation, will be calculated based on the maximum of t he pay scale granted under ACP upgradation including 50% of the highest classifi cation allowance, if any, of the rank held and group in which paid subject to t he condition that the upgraded pay scale should be held continuously for 10 mont hs preceding their discharge from service. Grant of Family Pension For Life to Handicapped Children of Armed Forces Personn elGovt letter No. PC MF-Air HQ/24229/283/-FPHC/PP&R-3(i)/582/A/D(Pen/Sers) dated 29 Nov 2005 issued has made the following provisions :- (a)Medical officer of r ank of Brig/above shall be competent to render the certificate required (b)Gaurdian shall be nominated by the pensioner instead of a court of Law. In ca se no such nominationhas been made by pensioner in his life time the nomination shall be made by spouse of the deceasedpersonnel (c)The name of handicapped child shall be indicated in the PPO to be issued for grant of Service Pension/Family Pension. Merger of Dearness Relief on Disability Pension Orders were issued vide Govt of India letter No. 42/2/2004-P&PW(G) dated 15 Mar 2004 for merger of Dearness Relief equal to 50% of basic pension/family pension wef 01 Apr 2004. According to these orders Dearness relief equal to 50% was to b e merged with basic pension and remaining of DR was to be calculated on (Basic p ay + 50 merged DR). However no specific instruction were issued for merger of DR on disability element on pension. A case was taken up by PS Dte with the Govt who have now issued orders vide 1(62)/2004/D(Pen-C) dated 02 Dec 2005 for merger of 50% DA/DR on disability pension to Armed Forces personnel/pensioners wef 01 Apr 2004. The merger of 50% DR with basic pay shall apply to both disability el ement and service element simultaneously. Modified Parity and Increase in Weightage JCOs/OROn implementation of V CPC reco mmendations modified parity at the min of pay scales was granted to officers/JCO s/OR FOR Pre 1996 retirees. Since the modified parity at minimum scale was not b eneficial for JCOs/OR, case was taken up PS Dte with the Govt to grant modified parity at maximum of pay scale for JCOs/OR. Govt has now granted modified parity to pre-1996 retirees JCOs/OR at max of pay scale in which they have retired sub ject to have served for minimum 10 months in that rank.Case was also taken by th e PS Dte with the Govt to increase the weightage being given to JCOs/OR as the J COs/OR were only given 05 years weightage irrespective of rank held. Due to this anomaly no JCOs/OR could meet the requirement of 33 years of qualifying service to get full entitlement of pension for past as well as future JCOs/OR retirees will be as under subject to maximum qualifying service of 30 years details of wh ich have been tabulated earlier.The above benefit would be applicable to Servic e Pension including Invalid Pension, Service element of disability pension and W ar Injury pension. The orders are effective from 01 Jan 2006 and no arrears are

to be given. The above orders have been issued vide Govt of India, Min of Def le tter No 14(3)/2004-D (Pen-Sers)/Vol III dated 01 Feb 2006. Implementation of the Govt Orders Regarding Abolition of the Institution of Mil itary Adviser (Pension) Release Medical board before retirement /discharge is held in case of any disabi lity at the time of such retirement /discharge. An individual found unfit for co ntinuation in service on medical ground is brought before an invaliding Medical Board prior to invalidment. Disability pension claims of LMC personnel of the Ar med Forces are decided on the basis of findings of Invaliding Medical Board/Rele ase Medical Board. The Medical advisors (Pension) from the office of DG AFMS att ached to PCDA(P), Allahabad in respect of JCOs/OR and DDG AFMS(Pen)/JD AFMS(Pen) in respect of officers, were empowered to alter the recommendations of Medical Boards. In a number of cases the recommendation of Medical Boards were being alt ered to the disadvantage of the individuals concerned. Consequently, the aggriev ed personnel were taking recourse to appeals and litigation for redressal.Based on the judgments of the Supreme Court of India and cases up with the MoD by the DGAFMS, a Govt letter dated 01 Sep 05, abolishing the institution of MA(P) was i ssued. However, certain provisions in the Govt letter came in the way of impleme ntation of the orders.Most of the amendments suggested by PS Dte have been incor porated by the Min of Def in the corrigendum No 1(2)/2002/D(Pen-c) dated 31 May 2006. Detailed letter to the environment incorporating the provision of the Gov t letters / Corrigendum and laying down the procedure for adjudication of claims for disability pension/ special family pension has been issued by the Dte vide letter No B/40122/MA(P)/AG/PS-5 dated 20 Jul 06. Eligibility of Unmarried Daughters of Armed Forces Personnel for Grant of Family Pension beyond 25 years of age The Ministry of Defence vide their letter No. 1(3)2007/-D(Pen/Policy) dated 25 O ct 2007 have issued instructions regarding grant of family pension to unmarried daughters beyond the age of 25 years at par with widowed/divorced daughters subj ect to their income from all sources not exceeding Rs. 2550/-pm. Col H N Handa (Retd) President Diwave Disabled war Veterans