INDISCRIMINATE GRANT OF PENSIONARY BENEFITS TO THE SHORT SERVICE COMMISSIONED OFFICERS

The pensionary benefits are not the bounty to be distributed at the sweet will of the Authorities. It is the Constitutional and fundamental right to receive retirement benefits if there were no legal impediment. The Hon’ble Supreme Court in D.S. Nakara v. Union of India (1983) AIR 130 emphasized that pension is not an ex-gratia payment but is the payment for the past service rendered and it is a social welfare measure rendering socio-economic justice to those who in the hey-day of their life ceaselessly toiled for the employer on an assurance that in their old age they would not be left in the lurch.

India, as a welfare state, offers a multitude of policies that provide pensions or similar benefits to employees at both the Central and State levels. While these various policies and their eligibility criteria are beneficial, they often create a complex structure that can be difficult to navigate and comprehend. The scope of this article is limited to explaining the cardinal differences between the Old Pension Scheme (OPS) and the New Pension Scheme/ National Pension Scheme (NPS), clarifying which schemes apply to different categories of central government employees. Particular focus is given to Short Service Commissioned Officers and their exclusion from pension benefits that are otherwise enjoyed by other central government employees with comparable job descriptions.

Difference Between The Old Pension Scheme (OPS) & New Pension Scheme (NPS)

The OPS assures life-long income, post-retirement. Under it the employees got a pension under a pre-determined formula which is equivalent to 50% of the last drawn salary. They also get the benefit of the revision of Dearness Relief (DR). The payout is fixed and there was no deduction from the salary. Under the OPS, if a retired employee passed away, their family would continue to receive the pension benefits.

However, on 22nd of December 2003, Department of Economic Affairs, Ministry of Finance via Notification No. 5/7/2003-ECB & PR promulgated the adoption of New Pension Scheme for all new recruits of Central Government Employees in service from 1st of January 2004, except for the Armed Forces. Under NPS, government servants will have to make a contribution of 10% of his Basic Pay, DP and DA which will be deducted from his salary bill every month the government will make an equal matching contribution.

The whole contribution will be kept in a non-withdrawal Pension Tier I account. A central government servant can exit at or after the age of 60 years from Tier I of the Scheme. At exit, it would be mandatory for him to invest 40% of pension wealth to purchase an annuity (from an IRDA regulated Life Insurance Company), which will provide for pension for the lifetime of the employee and his dependent parents. In case of Govt. servants who leave the scheme before attaining the age of 60, the mandatory annuitization would be 80% of the pension wealth.

Comparing Grant Of Pension In The Military Service And Other Class

To understand this comparison let’s take an example of Bhola, who is a young and enthusiastic individual who is eager to join the military services. Through him, we will explore the benefits offered by each service.

How Central Government Employees Are Granted Pension?

Prior to January 1, 2004, the pensions of all Central Government employees were governed by the Central Civil Service (Pension) Rules, 1972. According to these rules, a Central Government servant retiring in accordance with the Pension Rules was entitled to receive a pension upon completing at least 10 years of qualifying service. As per Rule 49 of the CCS (Pension) Rules, the pension amount was set at 50% of the last emolument drawn. For individuals who joined government services on or after January 1, 2004, the New Pension Scheme (NPS) was made mandatory.

As explained earlier, the NPS requires contributions from both the employee and a matching contribution from the government. Therefore, if Bhola had become a Central Government employee prior to January 1, 2004, he would first have been eligible for a pension after 10 years of service. Additionally, he would have received 50% of his last drawn salary as a pension. Conversely, had he joined after the specified date, he would instead benefit from matching government contributions under the NPS.

How Personnel Belonging To Paramilitary Forces Receive Pension?

The pension provisions for personnel of the paramilitary forces are similar to those of other central government employees, as they are also governed by the Central Civil Service (Pension) Rules, 1972. Consequently, personnel who joined the forces on or before December 31, 2003, are covered under the OPS, which entitles them to receive a pension amounting to 50% of their last drawn salary, without any deductions from their salary toward the pension.

However, personnel who joined the services on or after January 1, 2004, are mandatorily included under the NPS. Under this scheme, they receive a lump-sum amount upon leaving or retiring from service, comprising their monthly contributions from their salary along with a matching contribution from the government.

In Bhola's case, the situation would be similar to that of other central government employees, since paramilitary forces fall under the direct control of the Ministry of Home Affairs. Had he joined before 2004, he would have received a monthly pension equivalent to 50% of his last drawn salary. If he joined after this date, he would have benefited from a matching government contribution to his NPS account.

Pension for Permanent Commission Officers

Permanent Commission Officers (PCs) of the Indian Armed Forces remain under the OPS, as the Ministry of Finance explicitly stated in a notification dated December 22, 2003, that the Armed Forces would not be included under the NPS. Accordingly, pension provisions for the Indian Army are governed by the Pension Regulations for the Army, Part I (2008); for the Indian Navy, by the Pension Regulations for the Navy (1964); and for the Indian Air Force, by the Pension Regulations for the Air Force (1961).

These regulations stipulate a minimum qualifying service of 20 years to be eligible for a pension [Army (PRA), 2008, Chapter 2, Rule 34; Navy (Pension) Regulation, 1964, Chapter 2, Rule 19; Air Force Pension Regulation, 1961, Chapter 2, Para 25(a)]. The pension amount is set at 50% of the last emolument drawn.

If Bhola were to become a PC officer, firstly, it would be immaterial whether he was commissioned into service before or after January 1, 2004, as the notification clearly excludes the Armed Forces from the NPS. He would thus receive a monthly pension upon completing the qualifying service of 20 years. Secondly, he would be eligible for pro-rata pension, ex-servicemen (ESM) status, and full medical coverage for himself and his dependents.

Grant of pension to the Personnel Below Officer Ranks (Jawan/PBOR)

The jawans of the Indian Army, Navy, and Air Force are governed by the same regulations as PC officers of the Indian Armed Forces, and the formula for calculating their pension remains the same—50% of the last drawn salary. The only distinction lies in the minimum term of service required to qualify for a pension.

While the qualifying service for PC officers is 20 years, the minimum service requirement for jawans is 15 years, as stipulated by the relevant regulations: Army (Pension Regulations for the Army), 2008, Part I, Chapter 2, Para 47; Navy (Pension Regulations for the Navy), 1964, Chapter 3, Para 78; and Air Force (Pension Regulations for the Air Force), 1961, Chapter 3, Para 121. Thus, if Bhola were to serve as a Personnel Below Officer Rank (PBOR) and rendered 15 years of service, he would become eligible for a pension.

Plight Of The Short Service Commissioned Officers In The Armed Officers

Short-Service Commissioned Officers (SSCOs) in the Indian Armed Forces are subject to the same regulations as PC officers. However, since the maximum extendable service tenure for SSCOs is 14 years, they are ineligible for a pension upon retirement, as the Pension Rules for the Armed Forces mandate a minimum qualifying service of 20 years for commissioned officers to receive a pension. Consequently, SSCOs are only entitled to receive a service gratuity upon leaving the service. This policy has remained unchanged both prior to and after 2004.

Conversely, Short Service Appointee Officers of the Indian Coast Guard are covered under the NPS from the inception of the SSA entry scheme and are also eligible for retirement gratuity upon completing their initial engagement period of 8 years or an extended tenure of 10 or 14 years.

The situation is thus nuanced: if Bhola were commissioned as an SSCO in the Indian Armed Forces, he would only be entitled to a service gratuity after completing his term of engagement. On the other hand, if he were commissioned as an SSAO in the Indian Coast Guard, he would not only be covered under the NPS, thereby receiving matching monthly government contributions, but would also be eligible for a service gratuity.

Conclusion

It is noteworthy that there is no difference between SSCOs and PC officers regarding selection procedures, physical and medical standards, mandatory tests, postings, duties, and liabilities. SSCOs and PC officers are equally subject to service acts, including the Army Act, 1950; the Air Force Act, 1950; and the Navy Act, 1957, along with the rules and regulations made under these acts. Additionally, there is no distinction between SSCOs and PC officers in terms of their adherence to service rules, regulations, and policies governing duties, liabilities, and discipline. Both groups share the same obligations and risks, including deployment to battlefields, warzones, counter-intelligence, and counter-terrorist operations.

The bullets on the battlefield do not discriminate between a PC officer and an SSCO; both face the same dangers and sacrifices. Despite these similarities, SSCOs are denied and excluded from pension benefits on the grounds that their term of service is considered short. However, it is difficult to deem 14 years as a "short" term of service, especially considering that the same period constitutes a life sentence under the penal code.

Furthermore, central civilian employees become eligible for pensions after just 10 years of service. This denial of both the OPS and the NPS is a deeply unjust and arbitrary decision, undermining the morale and spirit of officers who dedicate their youth to serving their country, only to be neglected by a system that fails to support them in their time of need.