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Officers on Retirement – Pension and Gratuity.(Indian Army)

Retiring Pension – Qualifying Service.     

   Retiring Pension is granted on completing a minimum qualifying service of 20 years (15 years in case of late entrant). The weightage element is an inbuilt factor of the pension and it is meant to compensate comparatively early retiring age. Maximum pension is admissible if actual service or actual service including  weightage is 33 years. For lesser service, pension is correspondingly depressed. Weightage is not taken into account to make up 20 years of service. For less than 20 but more than 10 years of service, Retiring Gratuity may be admissible.
Calculation of Pension.    

   It is calculated @ 50% of the average reckonable emoluments drawn during last 10 months of service before retirement 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 RE for last 10 months   Actual Q.S + Weightage
                          2                                            33  

where reckonable emoluments = (Basic Pay + Rank Pay + NPA wherever admissible) + 50%DA.   

Note :   
   On punishment of forfeiture for past service by a court martial, the past service along with weightage admissible for the rank will be first restricted to a maximum pensionable service of 33 years and then the penalty of forfeiture of past service for pension deducted therefrom.

Rank Weightage in Years
(a) Service Officers (other than MNS)
(i) Lt/Captain 9
(ii) Maj 8
(iii) Lt Col(TS) 5
(iv) Lt Col(S)/Col 7
(v) Brig 5
(vi) Maj Gen and above 3
(b) MNS Officer
(i) Captain 7
(ii) Major 6
(iii) Lt Col/Col/Brig 5
(iv) Maj Gen 3

Weightage is reckoned only where the officer has completed 20 years of service.

Commutation  of Pension.    

    A maximum of 43% of pension can be commuted (See Annexure 1 to Appendix A).  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. 

   The specimen for application for retiring pension and commutation is at Appendix ‘A’  It is to be sent by the Officer to CDA (O), Archives Section, Pune, atleast 4 months in advance of his retirement. CDA (O), Pune, transmit the same to PCDA (P), Allahabad, for issuing Pension Payment Order to the banker with a copy to the Officer.   

Retirement Gratuity.     

   Officers who have put in a minimum of 5 years qualifying service and are eligible for service pension/invalid gratuity or pension of any type are entitled for Retirement Gratuity.  It is paid at the rate of one fourth of the emoluments last drawn for every six months of completed service, subject to a maximum of sixteen and half months pay, or Rs 3.5 lakhs whichever is less.  A uniform weightage of 5 years is added to actual qualifying service.subject to the total not exceeding 33 years.  Emoluments mean Pay, Rank Pay and NPA (where admissible).   
   No separate application is required. (See Appendix ‘A’). 

Invalid Pension/Gratuity.  

      An officer invalidated out of service for causes, which are neither attributable nor aggravated by service is granted invalid pension/gratuity.  If the service is less than 10 years at the time of invalidment, only invalidment gratuity is paid.  Invalid pension is equal to the service element of the disability pension and is calculated in the same manner as Retiring Pension.   

Disability Pension.    

   The officer who retires/is invalided out, for a disability which is accepted as attributable to or aggravated by military service, is entitled to disability pension consisting of Service element and disability element. Disability element will be granted/continued if disability is assessed at 20% or more.  Service element will continue to be paid subsequently irrespective of the percentage of disability.  Officers who proceed on voluntary retirement at their own request except for the purpose of availing higher value of Commutation of Pension and that too one month before actual date of retirement, are not eligible for Disability Pension. Disability Pension consists of disability and service elements as defined below: – 
(a)     Disability Element. Rs 2600/- is granted for 100% disability and it is proportionately reduced for disability upto 20%.

(b)     Service Element.    It consists of pension for service actually rendered and weightage.

Note.     The benefit of merger of 50% dearness relief with basic pension will also be applicable on both service and disability elements separately to those Armed Forces pensioners who are in receipt of disability pension/war injury pension/special family pension/liberalized family pension on or after 01.04.2004.

Compensation in Lieu of Disability Element

    An officer with disability, attributable to or aggravated by service, and assessed at 20% or more for life but retained in service is paid compensation in lump sum (in lieu of the disability element) equal to the capitalized value of disability element.  For this purpose the rank for disability element is the rank held at the time of onset of the disability and age on next birthday is reckoned with reference to the date of onset of disability with loading to age, if any, recommended by the Medical Board.  Once 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 pensionary benefit or relief. 

Disability Element on Invalidment.   

     Where an Armed Forces Personnel is invalided out, the extent of disability of functional incapacity shall be determined in the following manner for the purpose of computing the disability element : –

Percentage of disability as assessed by invaliding medical board
Percentage to be reckoned for computing of disability element
Less than 50
Between 50 and 75
Between 76 and 100

Lump-Sum Compensation in Lieu of War Injury Pension.

(a)     Armed Forces personnel who are retained in service despite disability due to war injury 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 pension on final retirement.  This provision is applicable to cases occurring on or after 01 Jan 86.  With effect from 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: –   

Commissioned Officers and Hony Commissioned Officers
– Rs 5200/-PM
Junior Commissioned Officers
– Rs 3800/-PM 
Other Ranks/NCs (E)
– Rs 3100/-PM
(b)     For disability due to war injury of less than 100% the rates shall be proportionately reduced.  The one time compensation in lump sum in lieu of War Injury element for the actual percentage of the disability at the appropriate rate mentioned above.   For this purpose, the rank shall be the rank held at the time of injury sustained by the individual due to war.  Age next birth day will be reckoned with reference to the date of onset of disability with loading to age, if any, recommended by the competent Medical Board.
(c)     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 addl, there shall be no further entitlement on account of such a disability at the time or retirement/discharge from the Armed Forces. Since this is one time payment on account of compensation, no restoration will be permitted.
War Injury Pension 
    Admissible when injury has taken place during action 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 normal 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 emolument last drawn for 100% disablement. However, in no case the aggregate of Service element and War Injury element should exceed last pay drawn.  For lower percentage of disablement, War Injury element shall be proportionately reduced.  Provisions contained in Para 12 above shall equally apply to individuals invalided out on account of disability due to war injury. 
Constant Attendance Allowance.     
  A Constant Attendance Allowance at the rate of Rs. 600/- pm may be granted to an officer who is awarded a disability pension for 100% disablement, if in the opinion of the IMB/RMB/RSMB, the officer needs the services of a Constant Attendant for at least a period of three months, and the necessity arises solely from the conditions of accepted disability /disabilities.
Consideration of claims for Disability Pension/War Injury Pension. 

     No formal application is required for grant of Disability Pension/War Injury Pension. On receipt of Invalidment/Release Medical Board proceedings, the Min of Def determines whether the disability is attributable to or aggravated by service.  The Govt. decision regarding attributability is conveyed to the PCDA (P), Allahabad, (under advice to the individual) to sanction payment of Disability Pension/War Injury Pension, if admissible.


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