Resettlement & Welfare Schemes

 

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        Introduction

The National Common Minimum Programme (NCMP), as adopted by the Government, envisaged setting up of a new Department  of Ex-Servicemen Welfare in the Ministry of Defence.  A new Department called “Department  of Ex-Servicemen Welfare”  was created  on 22nd September, 2004.  The main objective of creating a new Department  of Ex-Servicemen Welfare is to give focused attention to the welfare programmes for ex-servicemen and their dependants including pensionary benefits, re-employment and rehabilitation.  The Department  has been allocated the following broad functions to look after:-

(a)        All aspects of re-settlement and welfare of ex-servicemen and their dependents, including liaison with State Governments.

(b)        Ex-Servicemen’s Contributory Health Scheme.

(c)        Matters relating to the Directorate General of Resettlement and Kendriya Sainik Board.

(d)        Administration of –

i.                     the Pension Regulations for the Army, 1961 (Part I and II),

ii.                   the Pension Regulations for the Air Force, 1961 (Part I and II.

iii.                  The Navy (Pension) Regulations, 1964, and

iv.                 The Entitlement Rules to Casualty Pensionary Awards to the Armed Forces Personnel, 1982.

In order to maintain a youthful profile of the Armed Forces, approximately 60,000 service personnel are retired/released every year at a comparatively younger age.  At the time of retirement, majority of service personnel are at an age where they have numerous unfinished family and other social responsibilities which necessitates taking up a second occupation.  There are about 19.50 lakhs ex-servicemen (ESM) and about 4 lakhs widows registered. as on 30th June, 2005.  The ESM population is mainly concentrated in the states of Punjab, Uttar Pradesh, Uttaranchal, Haryana, Maharashtra, Kerala, Rajasthan and Tamil Nadu. 

The Department of Ex-Servicemen Welfare in the Ministry of Defence is the apex wing of the Government in the Ministry of Defence to formulate   various policies for the welfare and resettlement of ESM in the country.  The Department  has two Divisions, Resettlement and Pension Division. The Department is assisted by two Inter Services Organizations, Directorate General of Resettlement (DGR)  and Kendriya Sainik Board (KSB).  Whereas the KSB, which is headed by Raksha Mantri as an ex-officio President of the Board, lays down general policies for the welfare of ESM and their dependents and also for administration of welfare funds, the office of Directorate General of Resettlement implements various policies/ schemes/programmes adopted by the Government.  The Directorate General of resettlement has five  Director Resettlement Zones (DRZs) in five  Army Commands.

 The KSB/Directorate General of Resettlement  are also assisted in their task by various Rajya Sainik Boards/Zila Sainik Boards which are under the administrative control of respective state governments.  The Government of India bears 50% of the expenditure incurred  on the organisation of RSBs while the remaining 50% expenditure is borne by the respective state governments, since the welfare and resettlement of ESM is the joint responsibility of the central government as well as the state governments.

 The Director General of Resettlement (DGR) under the Department of Ex-servicemen Welfare looks after all matters connected with the re-settlement and welfare of ex-servicemen and their dependents.

  

    

   Facilities and Schemes

RESETTLEMENT

Resettlement: The primary thrust of the Directorate General of Resettlement, Kendriya Sainik Board, Rajya Sainik Boards and Zila sainik Boards is on dignified resettlement and efforts are made to explore various avenues for employment of ex-servicemen. To resettle/re-employ ex-servicemen, the Central Government arranges the following:-

 (a)        Training programmes to reorient retiring Defence personnel towards civil employment.

(b)        Reservation of posts for providing employment opportunities in government/semi government/ public sector organizations and assistance in employment with corporate sector.

(c)        Schemes for self-employment and 

(d)        Assistance in entrepreneurship and setting up small scale industries

TRAINING PROGRAMMES

Training Programmes:  Training for preparing both ex-servicemen and retiring service personnel for their resettlement in civil life is one of the major functions entrusted to the Directorate General of Resettlement.  This year the Directorate General of Resettlement has introduced some new courses which will provide nationally / internationally accepted certification to facilitate retired persons to get quick employment within / outside the country.  The programme includes courses on information technology, managerial science, technical skills and agro based industries.  Constant endeavour is made to improve the quality of training by regular monitoring.  The courses are reviewed every year to include courses in new fields based on the participation in current requirements of civil market and corporate world and also to delete obsolete courses.

 Officers’ Training :  The Directorate General of Resettlement organises employment oriented training programmes for officers to enhance their qualifications and enable them to seek suitable employment after retirement.  The Resettlement Training Programmes range from vocational courses of three months’ duration to degree /diploma courses, via distant learning programme of one to three years duration.  The courses are conducted in multifarious fields like Information Technology, Security Services, Entrepreneurship Development, Business Administration, Personnel Management, Hotel Management, Tourism, Human Resources Development, Law, Insurance and miscellaneous topics.  Recently, management courses of six months duration have been introduced at Management Development Institute, Gurgaon and Indian Institute of Management, Lucknow. These courses have received an overwhelming response from officers and resulted in good job placements in the coporate sector.  In order to meet the aspirations of retiring officers many more  reputed institutes, including IIM Ahmedabad and IIM Indore, have been empanelled to run additional  courses. Computer diploma and Engineering courses of six months have also been introduced in various institutions across the country. Besides this, especially designed two week programmes in Second Career Transition have also been introduced for officers looking to build successful new careers in the corporate/self entrepreneurial sectors. 

JCOs / ORs Equivalent Training  :  Resettlement Training Programmes for Junior Commissioned Officers / Other Ranks and their equivalent from the other services are carried out under head  Vocational Training.  The training courses are conducted in diversified fields for a duration of upto one year in government, semi-government and private institutes spread all over the country.  The salient fields covered are Security Services, Management, Information Technology, Travel & Tourism including Adventure Tourism, Entrepreneurship & Small Business Management, technical (including medical) trades, non-technical trades, secretarial support services, agro based industry and many other miscellaneous trades.  This year courses offered by the Confederation of Indian Industry (CII) under the City and Guilds banner, with internationally accepted certification, have been introduced for Personnel Below Officers Rank (PBOR) to improve their employment avenues. Three  day capsules on Second Career Transition/Preparation have also been introduced for retiring PBOR in order to arm them with sufficient information for a smooth transition to a second career in the civil market.  The courses are conducted free of cost to the PBOR and the course fee is paid  directly to the institutes through the DGR budget allotted by MOD.  The course duration is treated as Temporary Duty and PBOR are permitted to avail Free Railway Warrant for the journey to and fro. Details of courses are published each year through a brochure distributed down to each unit and Zila Sainik Board.

Ex-Servicemen (ESM) Training :   Under this scheme, funds are allotted to RSBs for conducting vocational training for ESM in their States.  The scheme is primarily meant for those ESM who could not avail the facility of resettlement training while in service.  The scheme has also been extended to the widow / one dependent of an ESM, irrespective of whether his death is attributable to military service or not.  The fields/trades in which training is being conducted and the course fees is approved by MOD.  The course is free of cost for the ESM and a stipend of Rs. 700/- per month is paid to each trainee.

The details of personnel imparted training in various fields during the last five years are as under :

SCHEME

2001-02

2002-03

2003-04

2004-05

2005-06*

Officers’ Trg

409

353

583

679

827

PBOR Trg

3518

2958

4019

3016

4395

Ex-servicemen Training

421

856

1102

1102

843

* Figures upto  January, 2006


RE-EMPLOYMENT

The Central and state governments provide a number of concessions to ex-servicemen for their re-employment in Central/state government posts.  These include reservation of posts/relaxation in age and educational qualifications, exemption from payment of application/examination fees, and priority in employment to the disabled ESM and dependants of deceased service personnel on compassionate grounds.

Reservation in Government Jobs :   The Central Government has reserved 10% of Group ‘C’ posts and 20% of Group ‘D’ posts for ESM, while central PSUs and nationalised banks provide 14.5% reservation in Group ‘C’ and 24.5% in Group ‘D’ posts.  10% posts of Assistant Commandants in paramilitary forces are also reserved for ESM. In Security Corps, 100% vacancies are reserved for ESM.  In addition, most of the State Governments were providing reservations to ESM in state government jobs. 

Security Agencies :    The DGR registers/sponsors private ex-servicemen security agencies for providing security guards to various PSUs and industries in the private sector.  The scheme offers good self-employment opportunities to retired officers and adequate employment opportunity to ex-PBORs in a field where they have sufficient expertise. Besides, some states have set up ESM corporations. They are also providing security services. The Department of Public Enterprises (DPE) had issued instructions to all PSUs to get security personnel through state ex-servicemen corporations located in the concerned state or DGR sponsored Security Agencies. The scheme has shown good results.  Through this scheme about 1800 ESM security agencies have been empanelled and approximately over 1,10,000 ESM have gained employment as on date.  Fresh forays have been made into the banking sector with active intercession of the Reserve Bank of India and the Finance Ministry.  The RBI has issued instructions that the security of the treasury chests of all Banks in the country be entrusted to DGR sponsored ESM Security Agencies only, in the absence of the Banks own integral security.

Placement of JCOs/ORs :     The details of ex-servicemen, who have been provided employment through Directorate General Resettlement (DGR) and Zila Sainik Welfare Offices in the States during the last five years is as follows:

 

2001

2002

2003

2004

2005

Central Govt

4982

5153

5503

5459

4313*

State Govt

2136

2162

3092

2517

1356*

Private Sector

3221

3051

3064

2963

1706*

security Agencies

5650

8679

9543

10939

11100**

 

 

                

               * Figures upto June 2005             ** Figures upto December, 2005

 Officer’s Employment :  During the current calendar year, a total number of 514 officers have been registered with the DGR for employment assistance and 2810 officers have been sponsored for various employment opportunities .  To spread awareness about potential in ex-defence personnel, a seminar was organised in conjunction with the Confederation of Indian Industries at Bangalore in October 2005 and another seminar was held at New Delhi on 4th January, 2006.  The response to the seminars and subsequent employment has been satisfactory.

SCHEMES FOR SELF EMPLOYMENT

Introduction:   As it is not feasible to provide government jobs to all ex-servicemen after their retirement from the Armed Forces, government has formulated several schemes for encouraging and giving financial support by way of loans to ex-servicemen entrepreneurs intending to set up small and medium industries. Major self-employment schemes are SEMFEX-II, SEMFEX-III and National Equity Fund Scheme. Applications for sanction of loans are submitted by ex-servicemen directly to concerned Zila Sainik Boards in the states who scrutinise the applications and recommend for sanction of loan through Small Industries Development Bank of India (SIDBI), Central Cooperative Banks, State Land Development Banks and Regional Rural Banks aided by National Bank for Agriculture and Rural Development (NABARD) and the State KVIB/Banks aided by the Khadi and Village Industries Commission (KVIC).

SEMFEX-II Scheme. The scheme has been promoted with the assistance of NABARD to set up agriculture and allied activities, including State Road Transport Operators (SRTO), and also for setting up of village, cottage, tiny and small scale industries in rural areas. Agro/food processing units can be set up irrespective of location in rural and urban areas. There is no upper age limit for loan in respect of projects under farm sector including agro/food processing units. The financial assistance in case of non-farm sector activities is available up to SSI limit, for setting up industries in rural areas. This scheme is operative from the year 1988-89. Rs.124.87 crore loan has been sanctioned to 20455 ex-servicemen since inception and up to June 2005.

 SEMFEX-III Scheme.           The scheme is operative in collaboration with the Khadi and Village Industries Commission (KVIC). The maximum loan limit for individual entrepreneurs, cooperative societies/institutions and trusts is Rs. 25 lakh per project to establish industries in rural areas. This scheme is operative from the year 1992-93.  Rs. 12.65  crore loan has been sanctioned to 1074 ex-servicemen since inception and up to June, 2005

National Equity Fund Scheme (NEF).   The scheme has been launched in collaboration with SIDBI. Financial assistance is available to set up projects in tiny/small scale industrial sector, service enterprises and also for undertaking expansion, technology upgradation, modernisation and revival of viable sick units in SSI Sector. The maximum loan     limit    is Rs 50 lakh per project.   This scheme   is   operative from   the     year    2000-01.    Rs.2.30 crore loan has  been sanctioned to 44 ex-servicemen since inception and up to June 2005.

 Allotment of Army Surplus Vehicles.       Ex-Servicemen and widows of defence personnel, who died while in service, are eligible to apply for allotment of an Army surplus phased out Class V-B Vehicles. The application forms are routed through Zila/Rajya Sainik Boards in case of retired personnel, and through units for those in their last six months of service, to DGR for registration and onward submission to Army Headquarters for allotment on the basis of depot-wise seniority maintained by them. During the year 2005, 2519 applications were registered with DGR for allotment of army surplus vehicles.

Coal Transportation Scheme.      DGR sponsors Ex-Servicemen Coal Transport Companies for providing loading and transportation of coal in various coal subsidiaries of Coal India Limited (CIL). The unemployed retired officers and JCOs registered with DGR, are selected to form ESM Coal Transport Companies and are sponsored to respective coal subsidiaries for five years, extendable by another four years. Presently, 94 such companies are operating under the various coal subsidiaries of CIL. The functioning of these companies is monitored by DGR.

 Coal Tipper Scheme.      The widows of Defence personnel, who died while in service due to causes attributable to military service and disabled soldiers also  can be sponsored by DGR for attaching one tipper truck in their name with an ESM Coal Transport Company. Eligible widow/disabled soldier is required to make a deposit of Rs.85,000/- with any of the nominated coal transport company. The company pays them Rs. 3000/- per month for a period of five years, after which the deposited amount of Rs.85,000/- is paid back to widow/disabled soldier. The functioning of these companies is monitored by DGR. At present 436 widows/disabled ex-servicemen are availing the benefit of this Scheme.

 Allotment of Oil Product Agencies.        Ministry of Petroleum and Natural Gas has reserved 8% of the Oil Product Agencies, i.e. LPG Dealership, Petrol Pumps, Kerosene Distributorship etc. for widows and dependants of those who died due to causes attributable to military service and disabled soldiers with disability of 20 percent and above attributable to military service. Eligible persons can apply as and when such a vacancy under ‘Defence Category’ is advertised in the newspapers. The DGR sponsors eligible candidates by issuing eligibility certificate to them. Interview is conducted by a Dealer Selection Board constituted by the Ministry of Petroleum and Natural Gas. Final allotment is made by the concerned oil company to the selected candidates. During 2005, 472 eligibility certificates have been issued by DGR .

 Mother Dairy Milk and Fruit & Vegetables Shops.     Junior Commissioned Officers (JCOs) / Other Ranks (OR) are allotted Mother Dairy Milk shops and fruit & vegetable shops in the National Capital Region. 686 milk shops and 282 fruit & vegetable shops are being operated by ex-servicemen. Dependant sons (where the Ex-Servicemen are not eligible) are also considered for allotment of fruit & vegetable shops in and around Delhi.

Management of CNG Stations in National Capital Region (NCR).      The scheme for management of CNG stations belonging to Indraprastha Gas Limited was launched as a pilot project in July 2001. On success of the pilot project, the scheme has been extended to retired officers. As on date, there are 60 retired officers managing 84 CNG station Three ex-lady officers have also been allotted CNG stations in Delhi. This scheme is presently available in Delhi only.

Reservation in CSD.        The Canteen Stores Department of India (CSDI) has reserved 15% of the 30 selected CSD items and the Ministry of Defence has reserved 10% of the 262 selected items manufactured by Ex-Servicemen Entrepreneurs under the Defence Purchase Programme for which Ex-Servicemen manufacturing units alone are eligible.

New Initiatives and Thrust Areas

PM Scholarship Scheme:  To encourage higher technical and professional education for the wards of widows and ex-servicemen of the armed forces, it has been decided to introduce a new scholarship scheme to be known as “Prime Minister’s Merit Scholarship Scheme” from the academic year 2006-07. The scheme would provide a scholarship of Rs. 1250/- p.m. for boys and Rs.1500/- p.m. for girls for the recognised professional and technical courses for a duration ranging from 2 to 5 years.  A total number of 5000 scholarships would be available to be funded from National Defence Fund, out of which 4000 scholarships will be for wards of widows/ex-servicemen from armed forces and the remaining 1000 will be available to the wards of central para-military forces being managed by Ministry of Home Affairs and Railway Protection Force (Ministry of Railways).

 Self Employment Schemes:   Intensive interaction with state governments was undertaken to set up pilot projects or suitable schemes in the areas having concentration of ex-servicemen in various sectors, based on local resources and skills, such as food processing, dairy, weaving, etc. Other central government ministries/departments such as Banking, Animal Husbandry, Health, Food Processing and institutions such as banks KVIC, NBARD were invited for discussions.

Computerisation: A scheme for cmputerisation of data base to be implemented by DGR was approved at a cost of Rs. 86 lakhs.

PUBLICITY

Wide publicity of policies and various schemes sponsored by DGR is of paramount importance so as to reach each unit and ex-servicemen/widows across the length and breadth of the country through exhibitions/seminars and ex-servicemen rallies. This is done by the DGR by means of publication of its periodical magazine “PUNARVAS”, brochures, leaflets, articles in Sainik Samachar and Baatcheet. The electronic media is also used for the above purpose.

 The DGR had put up a stall at the Aero-India 2005 at Bangalore to spread awareness about schemes concerning ex-servicemen. Various other forums provided by Command HQs, RSBs and Sainik Sammelans are also utilised for publicity purpose.

 A film on Armed Forces Flag Day was telecast on the National Channel of Doordarshan on December 7th  2005. A live telecast interview of DGR was telecast on Doordarshan on December 6th  2005,  The activities of DGR and KSB have also been publicised through CD –ROMs forwarded down to Zila Sainik Boards and Units. Space of 18 sqm has been obtained free of cost for putting up a stall at forthcoming DEFEXPO 2006 at Pragati Maidan.  DGR also participated in India Industrial Trade Fair held at Kolkata from 21st December, 2005 to 31st December, 2005 on the theme of “Access to excellence in Human Resources” which has achieved the objectives for which it was put up.

WELFARE

Kendriya Sainik Board (KSB).         The Kendriya Sainik Board (KSB) under the chairmanship of Raksha Mantri, is the nodal agency to look after the welfare of ex-servicemen and their families in liaison with Rajya Sainik Boards/Zila Sainik Boards. The KSB also administers various welfare activities through the Armed Forces Flag Day Fund, which are financed from interest earnings of the fund. The fund has a corpus of Rs 125.22 crores. Financial assistance is provided to institutions, such as, paraplegic homes at Kirkee and Mohali, the Red Cross Society, Cheshire Homes, Military Hospitals, St. Dustan’s After Care Organisation and Homes for taking care of old and physically handicapped ex-servicemen and their dependents. Financial assistance is also provided to individual ex-servicemen and their families who are in a state of penury to meet their specific needs. DGR also funds the running of War Widows Hostels, scholarships to ex-servicemen’s orphans and other such philanthropic activities.  The following is the amount of the Financial Assistance/Welfare Measures afforded to above institutions out of the Armed Forces Flag Day Fund upto 31 Dec 05.

 (a)        PRC Kirkee                                                                 Rs. 9,23,779/-

(b)        PRC Mohali                                                                 Rs. 5,96,105/-

(c)        Cheshire Homes                                                           Rs.    85,250/-

(d)        Military Hospitals (Vocational Trg Centre)                    Rs. 1,21,256/-

(e)        St. Dunstan’s After Care                                               Rs.10,00,000/-

(f)         All India Gorkha Ex-Servicemen Welfare                      Rs. 5,00,000/-

            Association, Dehradun

(g)        Serious Diseases (No. of beneficiaries 77)                     Rs.  56,76,541/

Assistance from Raksha Mantri’s Fund:      A portion of the earnings of Armed Forces Flag Day Fund is set apart as Raksha Mantri’s Discretionary Fund which is used to provide financial assistance to poor and needy ex-servicemen for various purposes, viz, medical treatment, daughter’s marriage, house repair and education of children. Monthly financial assistance, up to a period of two years, is provided to old and infirm ex-servicemen and widows of ex-servicemen living in penury.  An amount of Rs. 84,34,150/- as Financial Assistance out of Raksha Mantri’s Discretionary Fund covering 752 cases of above nature has been provided upto 31 Dec. 05.  

Concessions and Facilities:   Under-mentioned concessions and facilities are available to eligible personnel :-

(a)        Free educational facilities to Children of Defence personnel killed or disabled in action in schools/colleges recognized by the Central or State Governments.

(b)        27 seats in the MBBs, one seat in BDS and one seat in engineering stream are available through KSB to dependants/ wards of certain categories of defence personnel through Ministry of Health and Family Welfare.

(c)        25% seats are reserved for the wards of serving and ex-servicemen personnel in Sainik Schools.

(d)        States/UTs have made reservation of seats in professional colleges/ITIs/ Polytechnics for wards of serving and retired defence personnel.

(e)        Two educational grants viz  (i) Rs 600/- per month are provided to the wards of war bereaved and (ii) Rs 300/- to the wards of disabled (attributable/non-attributable) and peace time casualties, housed in 35 War Memorial Hostels to enable them to pursue their studies.  So far upto the period 31 Oct 05 an amount of Rs. 20,09,867/- covering 207 cases and Rs. 2,10,097/- covering 51 cases as Educational Grants has been provided by the KSB. 

(f)         Medical Facilities to Ex-Servicemen. Until now ex-servicemen and the families of deceased service personnel drawing pension of any kind were entitled to free out-patient treatment and in-patient treatment (subject to availability of beds) in military hospitals.  With the introduction of Ex-servicemen Contributory Health Scheme (ECHS) from 1st April, 2003, the ex-servicemen pensioners are eligible to get free medical facilities on becoming member of ECHS after contributing certain amount.  The scheme is optional for ex-servicemen who retired before 31st March, 2003 and compulsory for service pensioners retiring after 1st April, 2003.  The scheme, to be completed  in 5 years, envisages setting up of 227 polyclinics in 104 military and 123 non-military stations.  Besides, there is a provision for empanelling reputed hospitals and diagnostic centres where patients can be referred by polyclinics.  183 polyclinics have been set up till December 2005.  Besides, 462 reputed hospitals and diagnostic centres have so far been empanelled.

War widows and disable veterans have been exempted from contribution for membership.

Non-pensioner ex-servicemen/dependents, however, will continue to get financial assistance from Armed Forces Flag Day Fund for treatment of specified serious diseases.  The World War Veterans will continue to get authorised medical treatment from Armed Forces Medical Services.

(g)        Travel Concessions. The following concessions are available to War Widows/Gallantry Award Winners, which can be availed on production of identity card issued by KSB:-

             (i)  Rail Travel Concession

(aa)      75% concession in rail fare for travel in II class is available to widows of personnel killed in war and action against terrorist and extremists.

(ab)      Free Rail travel is available in I Class/AC 2 tier to the recipients of Param Vir Chakra, Maha Vir Chakra, Ashok Chakra, Vir Chakra, Kirti Chakra and Shaurya Chakra along with companion. 

(ac)      Param Vir Chakra, Maha Vir Chakra and Vir Chakra awardees are also allowed for free Rail travel in AC II tier/AC III tier of Rajdhani and Chair Car of Shatabdi/Jan Shatabdi Express trains along with a companion in the same class. 

            (ii)  Air Travel Concession       

(aa)      75% concession is allowed to recipients of Gallantry Awards of Level I and Level II viz. Param Vir Chakra, Ashok Chakra, Maha Vir Chakra and Kirti Chakra, Victoria Cross, George Cross, Distinguished Service Cross, Military Cross, Distinguished Flying Cross and George Medal. 

(ab)      75% concession is available to permanently war disabled officers who have been invalidated of service and the dependent members of their families. 

(ac)      75% concession to war widows of Post-Independence era.

 (h)        Reservation of House Sites/Houses.    Several states have made reservations for serving/retired Armed Forces personnel in allotment of house sites/houses.

 (i)         Sainik Rest House Facilities.     Over 252 Sainik Rest Houses have been built in the country, which provide transit facilities to Ex-Servicemen and their dependants at nominal rates.  So far an amount of Rs. 28,02,000/- has been provided to state of Tripura for construction of Sainik Rest House at Agartala during the month of Aug 05 out of AFFD Fund.

 (j)         Cash Award/Annuity/Cash, in lieu of Land for Gallantry/Non Gallantry Award Winners.   The States/UTs provide Cash Award/Annuity/Cash in lieu of land for Gallantry/Non gallantry Award winners.

 

    

  

        Pension To Armed Forces Personnel  

PENSION TO ARMED FORCES PERSONNEL

As on April 1, 2007 the number of Defence pensioners is estimated to be about 21.91 lakhs . The estimated budget provision for the year 2007-08 (RE) is Rs.15 ,244 crores . The pension is disbursed through all branches of the 27 Public Sector Banks, 4 Private Sector Banks viz. HDFC Bank, ICICI Bank, UTI Bank and IDBI Bank, 640 Treasuries, 61 Defence Pension Disbursing Offices ( DPDOs ), 2 Post Offices, 5 Pay and Accounts Offices ( PAOs ) scattered all over India. For the Armed Forces pensioners residing in Nepal , disbursement of pension is done through 3 Pension Payment Offices( PPOs ). The eligibility conditions, rates etc. of Defence types of pension are detailed in the succeeding paragraphs.

The budget estimates on Defence pension is as given below.

( i ) 2006-07(RE) 13806.00 Crores

( ii ) 2007-08(RE) 15244.00 Crores

( iii ) 2008-09 (BE) 15564.00 Crores

RETIRING/SERVICE PENSION

For Commissioned officers the retiring/service pension is calculated at 50% of the average reckonable emoluments drawn during the last 10 months. For Personnel Below Officers Rank (PBOR), it is calculated with reference to the maximum of the scale of pay of the rank and group held for 10 months preceding retirement. Retiring pension is subject to a minimum of Rs.1913/-p.m. after merger of 50% Dearness Pension with effect from 1.4.2004 and maximum of upto 50% of the highest pay applicable to Armed Forces personnel. For pre-1.1.1996 retirees , pension shall not be less than 50% of the minimum pay (maximum in the case of PBOR) in the revised scale of pay introduced with effect from 1.1.1996 of the rank/group held by the pensioners at the time of retirement.

Weightage

To compensate for truncated carrier, the Armed Forces personnel are given weightage for computing service pension .. In the case of Commissioned Officers, the minimum period of qualifying service required to earn retiring pension is 20 years. The officers are given benefit of weightage ranging from 3 to 9 years depending on the rank. The minimum period of qualifying service for PBOR to earn retiring pension is 15 years. Earlier they were given a uniform weightage of 5 years. With effect from 1.1.2006, weightage of 10, 8 and 6 years for the ranks of Sepoy , Naik and Havildar respectively is given subject to a maximum qualifying service of 30 years. However, Junior Commissioned Officers ( JCOs ) continue to get uniform weightage of 5 years. The benefit is given only in respect of service pension.

COMMUTATION OF PENSION

Armed forces personnel are permitted higher commutation of their pension at the rate of 43% for officers and 45% for PBOR as compared to 40% for civilians.

FAMILY PENSION

Family pension is admissible to Armed Forces personnel who die during service or after retirement with pension, at a uniform rate of 30% of reckonable emoluments last drawn subject to a minimum of Rs . 1275/- p.m. with effect from 1.1.1996(Rs.1913/- with inclusin of Dearness Pension @ 50% of the basic pension w.e.f . 1.4.2004). With effect from January 1, 1998, ordinary family pension is admissible to dependant parents, widowed/divorced daughters and unmarried daughters beyond 25 years of age till remarriage who fulfill the prescribed eligibility criteria.

In the case of re-employed pensioners, with effect from July 27, 2001, family pension admissible under the Employees Pension Scheme, 1995 and the Family Pension Scheme, 1971 under the Employees Provident Fund Act, 1952 has been allowed in addition to the family pension admissible from military side.

Merger of Dearness Relief as Dearness pension: with effect from April 01 ,2004 , 50% Dearness Relief has been merged with basic pension as dearness pension which qualifies for computation of dearness relief beyond 50%.

DISABILITY PENSION

A person who is released or retired from service on account of a disease or injury, which is attributable to or aggravated by military service, is entitled to disability pension if the disability assessed by the Medical Board is 20% or more. On invalidment from service on account of causes attributable to or aggravated by military service, the extent of disability or functional incapacity is determined at 50%, if the disability is less than 50%, 75%, if it is between 50% and 75% and 100% if it is between 76% and 100%. This is an improvement introduced with effect from January 1, 1996 on the recommendations of the 5 th Central Pay Commission.

Disability pension consists of two elements viz., service element and disability element. Service element is related to the length of service rendered by the individual at the time of invalidment and the disability element is paid in the form of compensation for the disablement and depends on the degree of disablement. The rate of disability element for 100% disability is Rs.2600/- p.m. for Commissioned Officers, Rs.1900/- p.m. for JCOs and Rs.1550/- p.m. for Other Ranks. For individuals who are retained in service despite disability they are paid compensation in lump sum (in lieu of disability element) equal to the captalized value of disability element. 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.

Emergency Commissioned Officers ( ECOs ), Short Service Regular Commissioned Officers (SSRCOs ) and Short Service Commisisoned Officers ( SSCOs ), i.e. non-regular officers have been brought at par with regular commissioned officers in the matter of grant of disability pension w.e.f . 30.8. 2006.

WAR INJURY PENSION

Considering the supreme sacrifice made by the Armed force personnel during war or war like situation or action against extremists, anti-social elements etc, war injury pension is granted to the personnel who sustain injury or disability during such operations. Service element is equal to retiring/service pension to which he/she would have been entitled to on the basis his/her pay on the date of invalidment but counting service upto the date on which he/she would have retired in that rank in the normal course including weightage as admissible. War injury element is payable equal to reckonable emoluments last drawn for 100% disablement. However, the aggregate of service element and war injury element shall not exceed last pay drawn.

When a person is found to have a disability which is sustained during war or war like situations and the disability is assessed at 20% or more for life but the individual is retained in service despite such disability and opts for lump sum compensation, he shall be given the lump sum compensation in lieu of war injury element. The rate of calculation of lump sum compensation in lieu of war injury element for 100% disability for life will be Rs.5200/-p.m. for Commissioned Officers, Rs.3800/- p.m. for Junior Commissioned Officers and Rs.3100/- for other ranks.

CONSTANT ATTENDANT ALLOWANCE

On the recommendation of the Medical Board, personnel with 100% disability are paid Constant Attendant Allowance at the rate of Rs.600/- p.m.

SPECIAL FAMILY PENSION

If the death of a Service personnel occurres on account of causes attributable to or aggravated by military service, the family is paid special family pension at the rate of 60% of reckonable emoluments drawn by the deceased,subject to a minimum of Rs.2550-/- p.m. Widows who got remarried on or after January 1, 1996 continue to get special family pension subject to certain conditions.

LIBERALIED FAMILY PENSION

Family of an Armed Forces personnel who has died in war or war like operations, counter insurgency operations, action against terrorists, extremists etc. is granted Liberalised Family Pension at the rate equal to reckonable emoluments last drawn by the deceased personnel. If the personnel is not survived by widow, but is survived by children, all children together are eligible to liberalized family pension at the rate equal to 60% of reckonable emoluments last drawn by the deceased subject to fulfillment of prescribed conditions. Where an officer dies as a bachelor or as a widower without children, dependant pension is admissible to parents at the rate of 75% of last pay drawn and in case of a single parent it is admissible at the rate of 60%.

With effect from Jan 1, 1996, on remarriage of widow, full liberalized family pension would continue to her subject to other prescribed conditions. Liberalised Family Pension of those widows which was stopped on their remarriage before Jan 1, 1996 with a person other than real brother of the deceased, stands restored w.e.f . June 24, 2005.

EX-GRATIA AWARDS IN CASES OF DEATH OF CADETS (DIRECT)

In the event of death of a cadet due to causes attributable to or aggravated by military training Ex-gratia award is payable subject to certain conditions at the following rates:

(a) Ex-gratia lump sum of Rs.2.5 lakh

(b) An ex-gratia of R.1275/- per month in respect of both married and unmarried personnel, to Next of Kin (NOK) in addition to above.

The ex-gratia lump sum is admissible in cases of death of cadets occurring on or after August 1, 1997. However, the benefit of revised monthly ex-gratia amount as mentioned at (b) above, is admissible to pre August 1, 1997 cases also with financial benefit with effect from August 1, 1997.

EX-GRATIA AWARDS IN CASES OF DISBALITY OF CADETS (DIRECT)

Ex-gratia awards are payable subject to certain conditions in the event of invalidment of cadet (Direct) on medical grounds due to causes attributable to or aggravated by military training in the following rates:

(a) Monthly ex-gratia of Rs.1275/- per month

(b) Ex-gratia disability award @ Rs.2100/- per month for 100% disability during the period of disablement. The amount is reduced proportionately from the ex-gratia disability award in case the degree of disablement is less than 100%.

(c) Constant Attendant Allowance of Rs.600/- per month for 100% disability on the recommendation of the Invaliding Medical Board.

The ex-gratia disability awards are applicable with effect from 1.8.1997. However, the benefit is admissible to pre-1.8.1997 cases also, with financial benefit with effect from 1.8.1997.

REDRESSAL OF GRIEVANCES OF DEFENCE PENSIONERS

Effective redressal of the grievances of the Defence pensioners has been the constant endeavour of Government to strengthen the mechanism for prompt disposal. In this regard, following steps have been taken:-

(i) Action has been taken by the agencies concerned with pension sanction and disbursement viz. Service HQrs, Record Offices, Pension Sanctioning Authority and Pension Disbursement Agencies to computerise the records

(ii) Pension sanctioning at Principal Controller of Defence Accounts ( PCDA( P) is fully computerised . PCDA( P) has placed the relevant orders and instructions relating to pension in their web site (www. pcdapension.nic.in ) which also provides a calculator so that the pensioner could find out correct entitlement.

(iii) Regular Defence Pension Adalats , six in a year , are organized in different parts of the country to redress the grievances of the Armed forces pensioners near to place of their residence/work. In addition, mini pension Adalats are held by the Defence Pension Disbursing Offices ( DPDOs ).

(iv) All branches of the Public Sector Banks and 4 Private Sector Banks have been added to the existing pension disbursement network

(v) A single window system has been introduced in DPDOs to facilitates hassle free and prompt release of first payment cheques or any working day after retirement.

(vi) Endorsements of family pension in PPO of pre – 1989 retirees, numbering about 2 lakhs were pending. A special drive has been launched for joint notification of family pension in these cases.

(vii) Role of Medical Adviser (Pension) has been dispensed with for adjudicating disability pension claims w.e.f . 1.9.2005. As a result, the recommendations of IMB/RMB, as approved by the prescribed authorities would be treated as final unless the individual himself asks for a review.

(viii) Periodical Resurvey Medical Board for continued grant of disability pension has been done away with. Now, a one time board known as Re-Assessment Medical Board will be held, whose recommendation shall be final and for life, unless the individual himself asks for a review.

(ix) ECOs/SSCOs would now get service element at par with Regular Commissioned Officers for the purpose of disability pension, which provides that they will get service element for the entire length of service rendered as against upto the date of occurrence of disability.

(x) A copy of the specialists' opinion on the percentage of disability attributability /aggravation would be provided to the individual at the time of IMB/RMB.

(xi) The advantage of the higher pay scale granted under Assured Career Progression has been given for the purpose of computation of pension. Simplification/liberalization of provisions relating to pensionary matters is a continuous process so that the grievances of the pensioners are reduced considerably and even if there are grievances the same are attended to promptly.