MANUAL

PENSION : OFFICERS

Directorate of Pay, Pension and Regulations

Air Headquarters
West Block No. VI, RK Puram
New Delhi – 110 066
 INDEX

Chapter-I : An introduction to pension

Chapter -II : Retiring pension and gratuity

Chapter -III : Disability pension and invalid pension

Chapter -IV : Family pension

Chapter -V : Dependent pension & Ex-gratia awards for Flt Cadets

Chapter -VI : Other benefits and welfare measures for widows and
retired personnel from Non Public Funds and Sainik
Boards

Chapter -VII : Ex-Servicemen‟s Contributory Health Scheme

(ECHS)

Chapter -VIII : Briefing for serving officers who are proceeding on

superannuation / premature retirement/invalidation

Chapter -IX : Advice for officers, widows and serving officers

proceeding shortly on retirement

Chapter -X : Frequently Asked Questions (FAQs)

Appendix ‘A’ : Commutation table

Appendix ‘B’ : Old rates of monetary allowance

Appendix ‘C’ : Income tax provisions

Appendix ‘D’ : Constitution of first and second appeals committee

Appendix ‘E’ : Guidelines and application form for disabled child

Appendix ‘F’ : Type of forms / photographs for different agencies

Appendix ‘G’ : Filled pension forms

Appendix ‘H’ : Sample copy of PPO

Appendix ‘J’ : Compressed brief on AFCAO

Appendix ‘K’ : Guideline to NRI pensioners from PCDA(P)

Allahabad

Appendix ‘L’ Guidelines to officers proceeding on retirement

 CONTENTS

Sl Subject Page
No. No.

CHAPTER – I

AN INTRODUCTION TO PENSION

1. Introduction 1

2. Monthly pension and free medical cover - the two pillars of 1-2
welfare after retirement

3. How this manual can benefit an officer 2-3

4. A brief insight into pension and other NE benefits of an officer 3-4

5. Information on pension & other issues in the subsequent 4

chapters

CHAPTER-II
RETIRING PENSION AND GRATUITY

6. Qualifying Service: - 5
(a) PC officers
(b) SS Commission/Emergency Commission.
(c) Reckoning of previous service as an airman

7. Reckonable emoluments for pension 5

8. Procedure for commutation of pension 5

9. Dearness relief on pension 5-6

10. Monetary allowance for Gallantry awards 6

11. Additional pension after reaching 80 years of age 7

12. Mandatory submission of life certificate to bank in November 8

13. Procedure for change of branch/bank 8

14. Procedure for Non Receipt of PPO/Corr. PPO at Bank & Issue of 8-9
Loss Certificate

15. Procedure for change of joint notification after death of 9

 wife/divorce/ remarriage

16. Procedure to collect pension for officers who are seriously sick or 9
in comatose (vegetable) state

17. Provisions of pension for PSU absorbees who have commuted 10

100% of their pension

18. Provisions for grant of pension to dismissed/cashiered officers 10

19. Conditions under which pension can be stopped 10-11

20. Other legal issues which are linked with pension 11

21. Income tax provisions on pension 11-12

22. Types of gratuity: - 12-13

(a) Retirement gratuity
(b) Invalid gratuity
(c) Death gratuity
(d) Terminal gratuity

CHAPTER III
DISABILITY PENSION AND INVALID PENSION

23. What is Disability Pension? 14

24. Components of Disability Pension 14

25. What is Invalid Pension? 14-15

26. Beneficial provisions of Disability Pension for Invalidment cases 15-16

27. What is War Injury Pension? 16-17

28. Provisions of Invalid Gratuity 17

29. Constant Attendant Allowance (CAA) 17

30. Rates of Disability Pension 17

31. The importance of medical opinion in deciding Attributability 17-18

/Aggravation factor in Disability Pension

32. Attributability factor for injury while on duty. 18

33. Provision for Appeal against Rejection of Disability Pension 18

34. Other beneficial provisions for pre & post 2006 disability 18-20
pensioners: -
(a) New Rates of Disability Element
 (b) Broad banding for invalidation
(c) Disability Pension @ 60% of reckonable emoluments.
(d) Authorisation of service element of Disability Pension to
SSC and Emergency Commissioned Officers.
(e) Removal of previous cap on War Injury Pension
(f) Provision for additional Pension on Disability
Pension after 80 yrs
(g) Exemption of income tax

35. Payment of disability claim by AFGIS for Invalidation cases only 20

36. Information about entitlement of Flight Cadets 21

37. Payment of Ex-gratia Lump Sum Compensation on Invalidment 21

CHAPTER-IV
FAMILY PENSION

38. Eligibility and priority for release of family pension 22-23

39. Types of family pension: - 23-26

(a) Ordinary Family Pension (OFP)
(b) Enhanced Ordinary Family Pension
(c) Special Family Pension (SFP)
(d) Liberalized Family Pension (LFP)
(e) Family Pension to children below 25 years.
(f) Family Pension for handicapped children / handicapped
siblings.
(g) Family Pension for unmarried/divorced/widowed
daughter.
(h) Family Pension to wife/NOK of missing personnel in
service or after retirement.
(j) Provisions for additional pension after 80 years of age

40. Joint notification of Family Pension with legal wife 26

41. Family Pension entitlement after remarriage of a widow 26-27

42. Understanding Legal Aspects Related to Family Pension: - 27-29

(a) Who in the Family has the First Claim to Family
 Pension?
(b) Legal Wife and Legal Child
(c) Can „WILL‟ be written by an officer on the Family
Pension.
(d) Family Pension Entitlement Where Wife is accused of
Murdering her Husband
(e) Provisions for division of Family Pension
(f) Restrictions on drawing more Than One Family Pension

43. Monetary Allowance and Free Railway Passes for Widows of 29-30
Gallantry Award Winners

44. Important Bank Procedures Affecting Pension: - 30-32

(a) Mandatory Submission of Life Certificate to Bank in
November.
(b). Procedure for Change of Branch/Bank.
(c). Procedure for Non Receipt of PPO/Corr. PPO at Bank &
Issue of Loss Certificate.
(d) Procedure to Collect Family Pension for a Seriously Sick
or Comatose (vegetable) State Pensioner.
(e) Claiming Life Time Arrears (LTA) of Late Husband from
Bank

45. Ex-Gratia Lump Sum Compensation 32

46. Other Financial Benefits to Widows: - 32-33

(a) Claiming Pre/Post Retirement Insurance Cover (PRIC)
from AFGIS.
(b) Financial Assistance Scheme (FAS) for Widows/NOK by
IAFBA.
(c) Grant From AFWWA

47. Common Problems Faced by Widows 33

48. Income Tax Provisions on Family Pension 34

CHAPTER –V
DEPENDANT PENSION AND EX-GRATIA FOR FLT CADETS

49. Dependent Pension 35

 (a) What is Dependent Pension?

(b) Rates and types of Dependent Pension

50. Ex-Gratia Provisions for Flt Cadets 35-36

(a) Ex Gratia for Disability and Death of Flight Cadets (direct).

(i) Ex Gratia Awards to Flt Cadets in Case Of

Disablement (Invalidation on Medical Grounds)
(ii) Ex Gratia Awards to Flt Cadets in Case Of Death

51. Payment of Disability Claim by AFGIS to Flt Cadets who are 37

invalidated out of training

CHAPTER-VI
OTHER BENEFITS AND WELFARE MEASURES FOR
WIDOWS AND RETIRED PERSONNEL FROM NON
PUBLIC FUNDS AND SAINIK BOARDS

Indian Air Force Benevolent Association (IAFBA)

52. Introduction 38

53. Various Post Retirement Welfare Schemes of IAFBA: - 38

(a) Family Assistance Scheme (FAS) for Widows.
(b) Lump Sum Death Grant (for less service cases).
(c) Monthly Maintenance Grant for Medically Boarded out
Personnel.
(d) Monthly Maintenance Grant of Bereaved Wives of Medically
Boarded out Personnel.
(e) Grant to World War II Veterans who have Served in the IAF.
(f) Grant to Widows of World War II Veterans.
(g) Grant to Wife/Parents in case of missing Personnel.
(h) Grant For Daughter’s Marriage.
(j) Grant for Purchase of Trade Instrument to Bereaved Wives.
(k) Special Scholarship to Orphaned Children of AF Personnel.
(l) Grant for Purchase of Mechanical Aid for self

54. Family Assistance Scheme (FAS) 39-40

 (a) FAS-97

(b) FAS- 09

55. Monthly Maintenance: - 40-41

(a) Monthly Maintenance Grant for Medically Boarded out
Personnel

(b) Monthly Maintenance Grant for Medically Boarded out

Personnel with 100% Disability
(c) Monthly Grant to Bereaved Wives of Medically Boarded out
Air Warriors

56. Grant to World War II Veterans who served in the IAF & their Widows 41

57. Grant to Wife/Parents in Case of Personnel Missing while in Service 41

58. Grant for Daughter's Marriage 41

59. Special Scholarship to Orphan Children of AF Personnel 42

60. Grant for Commercial Venture 42

61. Grant for Medically Boarded out Air Force Personnel 42

62. Grant for Purchase of Trade Instrument to Bereaved Wives 42

63. Grant for Purchase of Mechanical Aid for Self 42

64. Contact Details of IAFBA 43

Air Force Wives Welfare Association (AFWWA)

65. Introduction 43

66. Various Post Retirement Welfare Schemes of AFWWA 44-45

(a) Ex-Gratia Payment for Widows Rehabilitation
(b) AFWWA Pension
(c) Wedding Grant
(d) Medical Assistance
(e) Dwelling Unit for Widows
(f) Rehabilitation of Widows of NCs(E)
(g) Various types of Educational Scholarship
(h) Scholarship for Sportsmen/Artists
(j) Allotment of Oil Products Agencies to Defence Personnel
and Their Dependents
67. Employment Opportunity to Widows 45-46

68. Contact Details of AFWWA 46

Air Force Group Insurance Society (AFGIS)

69. Introduction 46

70. Welfare scheme for Pensioners 46-49

(a) Insurance cover while in service

(b) Post retirement insurance cover (PRIC)

(c) Disability claim

(d) Subsidy to a widow for procuring a dwelling unit

(e) Interim payment to personal declared missing

(f) Financial assistance to officers Hospitalised beyond six

months

(g) Investment through fixed deposits with multiple options

(h) Facility for loan up to 75% of fixed deposit in AFGIS

71. Introduction 50

72. Information about Various ESM benefits from Zila sainik boards 50
(a) Amendment to Rent Control Act
(b) Cash Grants to Gallantry and Non-Gallantry Award
Winners
(c) Ex Gratia Grant to War-Widows NoK and to Disabled
Soldiers
(d) Exemption of House Tax for Self-Occupation
(e) Financial Assistance to World War II Veterans
(f) Re-Employment
(g) Relaxation in Physical Efficiency Test
(h) Removal of Domiciliary Reservations at Professional
Colleges
(j) Reservation of Seats Professional Colleges
(k) Self Employment
 (l) War Jagir Allowance

CHAPTER-VII
Ex-SERVICEMEN CONTRIBUTARY HEALTH SCHEME
(ECHS)

73. Introduction 51

74. Eligibility conditions 51-52

75. Eligibility status for dependents 53-55

76. Person who are Not Eligible 55

77. How to become an ECHS member 55

78. Smart cards 56-58

79. How to get Normal & Emergency treatment 59-62

80. Referral procedure 62

81. Other issues 63-64

82. Must know points 64-65

83. Dos and Don‟ts 65-66

CHAPTER- VIII
BRIEFING FOR SERVING OFFICERS WHO ARE
PROCEEDING ON SUPERANNUATION/PREMATURE
RETIREMENT/INVALIDATION

84. Introduction 67

85. Pension and other Non effective benefits for an Officer & the 67-68
expected timeframe

86. Sequence of activity and the expected time lines 68

87. Timeline for completing important activities before retirement and 69-72
common mistakes in the process

88. Precautions required while filling up of pension and ECHS 72-74

papers

89. The importance of attending final clearance briefing at Dte of 75-75

PP&R, Air HQ (RKP).

90. How does bank release pension after receipt of Pension 75-76
 payment order (PPO)

91. Procedure for payment of leave encashment, IRLA balance, 76

DSOP and survival benefit of AFGIS insurance

92. Useful Information for Officers Proceeding on Retirement 77

93. Benefits from Kendriya Sainik Board, Rajya Sainik Board & Zila 77-78
Sainik Board

94. Employment opportunities, information on placement cell and 78

director general resettlement (DGR)

CHAPTER-IX

ADVICE FOR RETIRED OFFICERS AND WIDOWS

95. Introduction 79

96. Advice on Investments and Finances 79-82

97. Important Documents to be preserved after Retirement 82

98. Procedure for Change in Certificate of Service /PPO 82-83

99. Important landmarks after Retirement 83-84

100. Beneficial/ New Provisions of Pension 84

101. Fixed Medical Allowance in Lieu of ECHS Membership for Pre- 84-85
2003

102. Income Tax Provisions on Pension 85

103. Procedure for a complaint against your Bank 85-87

104. Extracts of Latest Pamphlet „Check Your Pension Entitlement‟ 87-92

105. Understanding the Modified Parity Table 93-94

106. Beneficial Provisions of Minimum Pension 94

107. Air Force Association (AFA) Senior Citizens Home 95

108. Advice for NRI Pensioners 95

109. Common Problems Faced by Pensioners 96-98

110. Use of Intenet banking and Credit Card 98

111. The option of Reverse Mortgage 98

112. Guidelines for Officers proceeding on retirement 98

CHAPTER- X

FREQUENTLY ASKED QUESTIONS (FAQ) ON ALL TYPES

OF PENSION AND ECHS

113. Retiring Pension 99

114. Disability Pension 100-101

115. Family Pension 101-104

116. Dependent Pension & Ex-Gratia for Flt Cadets 104-106

117. Ex-servicemen‟s Contributory Health Scheme 106-107

 1

CHAPTER – I

AN INTRODUCTION TO PENSION

Introduction

1. Pension is a retirement benefit for government employees governed by a

Pension scheme where in a recurring monthly payment for life and a lump sum
gratuity is given at the time of retirement. The quantum of Pension and Gratuity is
determined with reference to the length of service and last pay drawn. Pension
has great significance since it is a measure of socio-economic justice and brings
economic security in the fall of life when physical and mental prowess tends to
ebb.

2. Judicially, „Pension‟ is defined as a stated allowance or stipend made in

consideration of past service. In the event of death, spouse of pensioner gets a
monthly payment for life whereas other beneficiaries get such payment for limited
period or for life subject to certain conditions.

3. The constitution and law of our country have recognised pension as a

property and provides protection to it. The Courts will not allow refusal, reduction,
forfeiture of pension unless there are genuine grounds for doing so and the
employees can also seek redress in the Courts of Law, whenever, they feel that
justice has been denied to them. Only misconduct of the gravest nature can lead
to forfeiture of pension once sanctioned. Pension is also secure against
attachment, seizure or sequestration by process of any civil court at the instance
of a creditor or in satisfaction of a decree or order of any civil Court of Law.
Amounts owed by the pensioner to Govt, though undisputed cannot be recovered
by deduction from pension except with his express consent. However pension
can be attached on orders of a criminal court for maintenance of wife under sec-
125 of Cr PC.

Monthly Pension and Free Medical Cover : The Two Pillars of Welfare After
Retirement

4. The benevolence of the Govt is always visible while one is in service.

However this benevolence is visible in a magnified manner after retirement
because of pension schemes and free medical care schemes of the Govt. No
private sector jobs can ever match these schemes of the Govt.

5. The Govt pension has an average escalation of 10-14 % every year to

cater for inflation (5-7% DA, every six months). It has an average escalation of
40 -50% every 10 years after a new pay commission. It increases by 20% at 80
years of age. Thereafter it increases by 10 % every five years. The Govt pension
also has provisions for pension to widow, handicapped child, unmarried/
divorced/widowed daughter and dependent parents/siblings for life.
 2

6. If we take the case of a Wg Cdr who has become eligible for pension after
20 years of service and has proceeded on premature retirement, his pension will
be close to Rs 29,000/- pm + DR(now 58%) i.e.45,820/- pm. He will be eligible for
pension for next 35-40 years as per current life expectancy. If one compares it
with an executive from private sector who was leaving private sector with 20 years
of service then it will be worth pondering as to what kind of safe investment was
required by him to become entitled to a regular pension of Rs 45,820/- pm with
10-14% increase every year to cater for inflation for the next 35-40 years. This
calculation would amply illustrate that an investment of over crores of rupees
would have been required to match the benefits of a Govt pension.

7. Defence Pension is only half the story. The other half is about free medical
cover through ECHS. This medical cover is not only for self but also for wife,
children below 25 years, handicapped child, unmarried/divorced/widowed
daughter and dependent parents/siblings for life. This medical cover is cashless,
without any upper financial ceiling or age limit. There is no medical cover in
private sector which can match ECHS in its benevolence.

8. Thus after retirement every officer can bank on the support of his well-
earned Pension and ECHS medical cover for a comfortable and healthy life style.
This manual will help an officer in improving his understanding about Pension,
ECHS and other related issues which can enhance his welfare after retirement.

How This Manual can Benefit an Officer

9. When an officer is about to retire he only thinks about his own pension and
other non-effective entitlements. If he has a disability he also wants to know about
his entitlement to disability pension. At this stage his queries are limited to these
issues only. After retirement the general focus is to satisfy oneself about the
correctness of pension being received after a pay commission revision or revision
of a pension rule or after restoration of commuted value of pension. However Dte
of PP&R gets a large number of queries on invalid pension, disability pension and
family pension. Many times widows come in a state of grief to our office not sure
of what is their entitlement and unable to comprehend how life will be after the
most important man in her life has passed away. We also have queries from
retired officers, widows, and many times directly from children of deceased
officers/ widows on entitlement to handicapped child‟s pension & entitlement to
pension for unmarried/widowed/divorced daughter. Queries also come from
parents of bachelor officers on dependent pension and on entitlement to pension
of a widow after her remarriage.

10. During the life cycle of an officer his priorities and queries can change from
time to time. Thus there is a need for an officer to have a comprehensive
reference book which he can use to find answers to all his queries related to
Pension, ECHS, Welfare measures, investments etc. This manual is precisely
meant to provide answers to almost all queries which an officer can have before
and after his retirement including his queries on what happens to his pension
when he is not there in this world.
 3

11. There is a lot of social networking amongst retired officers. We frequently

get queries from retired officers on issues which are meant to help other retired
officers, widows and their children. This manual will also act as a reference book
for retired officers in extending constructive help and advice to other officers and
their families on all issues of pension entitlement.

12. It is recommended that officers who are shortly proceeding on retirement

start with first five chapters dealing with retirement pension and other types of
pensions. After fifth chapter they can directly go to Chapter VIII which deals with
briefing to serving officers who are proceeding on retirement. There after they can
follow it up with the next chapter on „Advice to officers proceeding on retirement
and retired officers & widows‟. Subsequently the officers can go through the
remaining chapters on welfare schemes, ECHS, FAQ etc. as per their
convenience and choice. The manual should be preserved after retirement and
used as a reference book. The officers who have already retired should start
reading this manual with the chapter „Advice to retired officers, widows and
service officers proceeding shortly on retirement‟ (Chapter IX). Thereafter they
can read it as a reference book as per their requirement.

A Brief Insight Into Pension and Other NE Benefits of an Officer

13. Pension Entitlement. Subject to fulfilling eligibility conditions, an

officer could be eligible for any of the following types of Pension:-

(a) During Life Time

(i) Retiring Pension

(ii) Invalid Pension

(iii) Disability Pension (includes war injury pension)

(b) After Death

(i) Family Pension (for wife/Children, handicapped child and

unmarried/divorced/widowed daughter)

(ii) Dependent Pension (for parents/siblings of bachelor officers

& widowers without children)

14. In addition to the above, an officer is entitled to Gratuity and Commutation

at the time of his retirement. Both will be paid to the officer through the pension
payment order (PPO) from the office of Deputy Controller of Defence Accounts
(DCDA), Subroto Park, New Delhi.
 4

15. Other Non Effective Benefits. Besides retiring Pension, the other non-
effective benefits, from public/ non-public funds, which an officer could be eligible
for at the time of his retirement are as follows:-

(a) Leave encashment

(b) DSOP Balance

(c) IRLA balance

(d) Survival benefit from AFGIS.

(e) Eligibility to disability claim from AFGIS if the officer has been
invalided out.

16. Besides officers, Flt Cadets (direct) who are killed during training or are
invalided out during training are eligible for ex- Gratia compensation from public
funds; however they are not eligible for pension. The flight cadets are also eligible
for life insurance and disability claim from AFGIS. Details are given in chapter V.

Information on Pension & Other Issues in this Manual

17. Exhaustive information on all types of pension and other NE benefits is

given in the subsequent chapters of this manual. Detailed information on ECHS
and other Welfare schemes is also given in this hand book. One chapter has
been exclusively devoted to frequently asked questions. A detailed advice for
officers who are proceeding on retirement and for officers who have already
retired & widows has also been given in this manual.

18. This manual contains answers to almost all the queries which may be
raised by retired officers/ officers proceeding on retirement. However for any
further clarification /additional information Dte of PP&R, Air HQ (RKP) can be
contacted by the officers/NOK through following means: -

(a) Postal Address : Air HQ (RKP), DPP&R, West Block – VI,

RK Puram, New Delhi – 110 066
(b) E-mail address : pprmail@indiatimes.com
(c) Contact Nos. : 011–26104394 & 011-26171370
(both with fax facilities)
 5

CHAPTER-II

RETIRING PENSION

Qualifying Service for Earning Pension

1. To earn a retiring pension an officer must have a qualifying service of 20

years. There is no provision to condone shortfall in qualifying service for officers.
However officers who were selected from ranks for SSC/Emergency commission
are authorised for retiring pension if they have 12 years of qualifying service.
Previous service, if any, in ranks will be counted towards qualifying service. The
minimum qualifying service before VI CPC to earn full pension was 33 years
inclusive of rank weightage, wherein the pension of officers who had less than 33
years but more than 20 years of qualifying service was required to be reduced
proportionately. However after VI CPC i.e. 01-01-2006, the service required to
earn full pension has been reduced to 20 years and weightage has been done
away with. For officers (PC & SSC both) who are getting invalided out of service,
the rules for pension are liberal and the minimum qualifying service of 20 years is
not a must in all cases. Detailed provisions of pension for invalided officers are
covered in the next chapter.

Reckonable Emoluments & Calculation of Pension

2. The reckonable emoluments for calculating pension of an officer are Band

pay +Grade pay + MSP + NPA (for medical officers). Pension is to be calculated
@ of 50% of last reckonable emoluments or last 10 months average Pay,
whichever is more beneficial. For the purpose of gratuity, reckonable emoluments
will be same as above but will include DA.

Procedure for Commutation of Pension

3. Every officer who is proceeding on retirement has the right to opt up for 50%
commutation of his pension. Commutation is calculated through a formula which
primarily gives weightage to age. Commutation table with loading as per age is
attached as Appendix „A‟. The dearness relief (DR) is always on full pension, even
if pension is commuted. The commuted value of the pension can be restored by
the bank after 15 years of actual receipt of commutation amount. An application
should be sent to the bank for restoring commuted value of pension. The orders
for restoration of commuted value of pension are written in the PPO itself, and the
bank does not need any external order for the same.

Dearness Relief (DR) on Pension

4. DR is authorised on pension on the same lines and rates as dearness

allowance (DA) to the serving personnel. DR is admissible on full pension even
after commutation. Public sector absorbees who had earlier commuted 100% of
their pension and are now in receipt of 43% of restored pension after 15 years,
are entitled for DR on full pension.
 6

Monetary Allowance on Gallantry Awards

5. Monetary awards are authorised by the Govt on gallantry awards. The

monetary awards of an officer are notified in the pension payment order (PPO)
and are admissible on a monthly basis. The widow is entitled to same monetary
awards after her husband‟s death. It is clearly mentioned in the PPO of gallantry
awardees that the wife is entitled for the monetary allowance on gallantry award
after the death of the officer. In addition, the officer with gallantry award and
subsequently his widow are also exempt from income tax on their full
pension. The monetary allowance is authorised for every Gallantry award/ Bar
separately. The rates of monetary allowance are revised by the Govt at regular
intervals. The old rates of monetary allowance are attached as Appendix „B‟. The
current rates of monetary allowance wef 30 Mar 11 vide Min of Def letter No.
7(119)/2008-D(AG) dated 30 March 2011and O/o PCDA (P), Allahabad circular
No 09 dt 10-06-2011 of are as follows:-

(a) Post- Independence Gallantary Awards

(i) Param Vir Chakra : Rs. 10,000/- pm

(ii) Ashok Chakra : Rs. 6,000/- pm
(iii) Maha Vir Chakra : Rs. 5,000/- pm
(iv) Kirti Chakra : Rs. 4,500/- pm
(v) Vir Chakra : Rs. 3,500/- pm
(vi) Shaurya Chakra : Rs. 3,000/- pm
(vii) Vayu Sena Medal (Gallantry) {VM(G)} : Rs. 1,000/- pm
(b) Pre-Independence Gallantary Awards

(i) Distinguished Service Order (DSO) : Rs 4,000/- pm

(ii) Indian Order Of Merit (IOM) : Rs 4,000/- pm
(iii) Indian Distinguished Service Medal (IDSM) : Rs 4,000/- pm
(iv) Distinguished Service Cross (DSC) : Rs 2,800/- pm
(v) Military Cross (MC) : Rs 2,800/- pm
(vi) Distinguished Service Medal (DSM) : Rs 2,800/- pm
(vii) Military Medal (MM) : Rs 2,800/- pm
(viii) Distinguished Flying Medal (DFM) :Rs 2,800/- pm
for ORs

Note. Dte of PP&R issues special identity cards to Gallantry award winners.
 7

Additional Pension After Reaching 80 Years of Age

6. Additional pension is authorized w.e.f. 01-01-06 for pensioners/family

pensioners who are above 80 years. The details of this pension are as follows:-

(a) This additional pension is over and above the normal pension and is
also applicable to SFP, LFP, War injury pension and Disability pension.

(b) DR is entitled on this additional pension. This additional pension will

be paid by PDA (bank, treasury etc) from the same month in which
pensioner has completed the age of 80 years or above.

(c) The rates for this additional pension is an increase by 20% to the
basic pension at the age of 80 years. Thereafter, 10% increase of basic
pension with every five years of increase in age (i.e. 30% for 85 years, 40%
for 90 years and 50% for 95 years). Once a pensioner completes 100 years
of age, the additional pension will be increased by 100 %.

(d) Public sector absorbees are a special class who had the option of
commuting not just 33% of their pension, but were also permitted to
commute 100% of their pension if they so desired. After protracted legal
battle by pensioners who had commuted 100% pension, the Supreme Court
has given a decision that such pensioners are not entitled for restoration of
100% commutation of pension. They are only entitled for part restoration
(45% for ORs and 43 % for officers) of commutation after 15 years, like all
other Govt employees. However they are entitled for DR on full pension.
Such pensioners are also entitled for additional pension on their full
pension entitlement after reaching the age of 80 years and above.

(e) If the date of birth of pensioner is available in the PPO, then

payment of additional pension will be commenced by the bank straight
away. If the date of birth is not mentioned in the PPO then the pensioner can
produce the date of birth as given in PAN Card, Matric certificate, Passport,
ECHS card, Driving license and Election ID card. Four copies of any of
these documents, attested by a Gazetted officer/ MLA should be submitted
to PDA for commencement of additional pension. Based on these
documents the PDA will commence additional pension on provisional basis,
for six months. Within these six months, the pensioner should contact Dte of
PP&R with relevant documents for issue of Corr. PPO by CDA annotating
the date of birth of the pensioner.

(f) An application should be given to the bank for commencement of

additional pension one month before it is due. This will act as timely
reminder for the bank to commence this additional pension.
 8

Mandatory Submission of Life Certificate to Bank in November

7. Annual identification of live pensioners by the banks is a must. This is done

by banks every year in November by obtaining a life certificate from pensioners. If
the life certificate is not submitted in time, the banks can stop the pension
payment. This is a precaution which banks take to detect fraudulent withdrawal
from pension accounts of pensioners who are dead. The format in which life
certificate is to be submitted should be preferably taken from the bank. For a very
sick and severely handicapped pensioners, the bank should be requested to send
an official to home of the pensioner to physically verify and then issue the life
certificate. It is easier to submit the yearly life certificate every year in November
than to struggle subsequently for restarting a stopped pension. The life certificate
is also required to be submitted before collection of first pension/family pension.

Procedure for Change of Branch/Bank

8. A pensioner can change his PDA (pension disbursing agency) as per his
choice. For this he has to apply to his PDA i.e. the bank or branch from where he
is drawing pension. If there is any unusual problem he can contact Dte of PP&R
for advice. With the advent of core banking, change of PDA within the same bank
(SBI New Delhi to SBI Bangalore) is relatively simple and quick as compared to
change of PDA from one bank to another i.e. SBI New Delhi to Central bank at
Bangalore. Certain precautions should be taken before applying for change of
PDA, such as there should be no major amount/ arrear due in the pension
account and the last pension should be drawn as and when it becomes due and
thereafter immediately apply for transfer. Depending upon the banks efficiency,
the procedure can take 4 to 10 weeks. It can take even longer if there is a transit
loss of documents. Widows who want to shift to their children‟s residence after
their husband‟s death, must activate their jointly notified family pension and
should draw their family pension for few months before applying for change of
PDA.

Procedure for Non Receipt of PPO/Corr. PPO at Bank & Issue of Loss
Certificate

9. This situation emerges when the pensioner is waiting for his original or
corrigendum (revised) PPO. However while the office of DCDA confirms dispatch
of PPO to the link branch, the concerned branch of the bank reports non receipt of
the PPO. This is a typical situation of loss of PPO in transit. The PPOs are
dispatched under insured registered post, therefore their loss is rare. However if
the link branch does not receive the PPO within one month of dispatch then it
should be presumed as lost in transit and action should be initiated to get a
duplicate PPO issued by the office of DCDA. The lost PPO has the potential of
perpetuating a bank fraud, therefore a „loss certificate‟ from link branch is a must
for release of duplicate PPO by the office of DCDA. The loss certificate is in a
particular format which banks are aware of. If in doubt Dte of PPR can be asked
for this format on e-mail. The loss certificate issued by bank manager basically
states that the loss of PPO has been annotated in bank records and if the
 9

PPO is found again and produced to the bank, no payment on it will be

released by the bank. This loss certificate in original should be sent to the office
of DCDA. Another copy of original loss certificate should also be sent to Dte of
PPR for necessary liaison with DCDA and early issuance of duplicate PPO.
DCDA will only issue a duplicate PPO to the bank. It will not issue any duplicate
PPO for loss of individual‟s copy of PPO.

Procedure for Change of Joint Notification After Death of Wife / Divorce /

Remarriage.

10. Joint notification basically means that when an officer retires his pension as
well as his legal wife‟s pension is jointly notified in the PPO. After joint notification
the widow can collect her family pension from the same bank where her husband
was drawing his pension. The bank after some bare minimum formalities
commences the payment of family pension to the widow. However after death/
divorce of first wife, if the officer remarries he can apply for change of Joint
notification in PPO. Similarly an officer who was a bachelor at the time of
retirement and marries after retirement can ask for joint notification with his wife.
On similar lines there is a need for recording the birth of a child after retirement.
Some essential formalities have to be completed before these changes can be
made by Dte PP&R. Officers who require these changes should contact Dte of
PP&R for necessary advice at the following address :-

(a) Postal Address : Air HQ (RKP), DPP&R, West Block – VI,

RK Puram, New Delhi
(b) E-mail address : pprmail@indiatimes.com
(c) Contact Nos. : 011–26104394 & 011-26171370
(both with fax facilities)

Procedure to Collect Pension for Officers who are seriously sick or in

Comatose (vegetable) state.

11, There are guidelines issued by RBI for such cases vide its Master Circular
dated 30 Jun 08, available on RBI website www.rbi.org.in. As per the guidelines,
whenever a pensioner/ family pensioner is sick to the extent that he/she cannot
sign the bank cheque, then he / she is permitted to put thumb impression on the
cheque. In addition for pensioners who are in comatose state i.e. unconscious/ or
mentally not stable; a legal guardianship certificate from district court will be
required by the bank and thereafter the bank will release the pension to the legal
guardian. For submitting the yearly life certificate in November for such
pensioners, the bank should be requested to send an official to the home of
pensioner so as to physically verify the pensioner and then issue the life
certificate.
 10

Provisions of Pension for Permanent PSU Absorbees

12. There is difference in the percentage of pension which can be commuted

between a civilian and a defence employee. The percentage is higher for defence
employees. Earlier it was 43% for officers and 45% for ORs of defence
personnel. In VI CPC, it has been increased to 50% for all defence personnel.
However Govt employees from civil and defence who were permanently absorbed
in Public Sector Undertakings (PSU) had the option to either commute the normal
percentage (33.33% for civil & 43/45% for defence) or commute the entire 100%
of pension at the time of retirement. Option for 100% commutation originally
meant that such pensioners were not eligible for any pension in future. However
many PSU absorbee pensioners moved the court of law demanding pension
despite 100% commutation at the time of retirement. The matter went to Supreme
Court which decided that such pensioners are eligible for restoration of 1/3 or
33.33 of their commuted pension after 15 years of commutation. However DA will
be paid on full pension. Such pensioners cannot claim restoration for 100% of
commuted pension. For defence pensioners the restoration as per original
commutation is permitted up to 43 / 45%. The commuted pension of such
absorbees will be restored after 15 years through the issuance of a PPO. Similarly
such pensioners will require a PPO after each new pay commission. The widow of
Defence PSU absorbees is authorised for ordinary family pension on the same
lines and rates as any other officer of defence. Such pensioners should contact
Dte of PP&R for guidance on issuance of PPO, as per requirement.

Provisions for Grant of Pension to Dismissed/Cashiered Officers

13. There are a few cases of officers who have been dismissed through
administrative action or dismissed/ cashiered by the orders of a court martial.
Such officers are prima facie not entitled for retiring pension and gratuity. Such
officers are also not eligible for job in any Govt organisation/PSU. Experience
indicates that it is difficult for such officers to find meaningful employment even in
corporate sector. Such officers along with their family suffer economic hardships.
If such an officer has the minimum qualifying period of service required to earn his
pension, then he is at liberty to write a mercy petition giving full details of his poor
financial condition and other compassionate reasons, if any, like having a
marriageable daughter, dependent parents etc. Earlier the mercy petition for grant
of pension was decided by President, but now this power has been delegated to
Service HQ. In IAF, the power to decide on such petitions has been delegated to
AOA for officers. After considering the merits of the individual case, the competent
authority (AOA) will take a considered decision on such petitions and the same
will be communicated to the concerned officer.

Conditions Under Which Pension Can be Stopped

14. Pension is subject to future good conduct. Pension can be stopped by

competent authority due to any of the following reasons:-

(a) In case of criminal conviction by a court of law.

 11

(b) Grave misconduct.

(c) Accepting a job within one year of retirement without permission. Prior
permission is required from AOP by officers who work for a foreign country
or for a foreign employer in India. All Gp Capts (both Select & TS) and
above ranked officers will require prior permission from AOP for accepting
any kind of job/self-employment etc. in India or abroad within one year of
retirement.

Other Legal Issues Which are Linked With Retiring Pension

15. The legal issues which are related to officers proceeding on retirement are
as follows:-

(a) Joint Notification of Pension. There are cases where some

officers are not keen on joint notification of pension with their wife on
grounds of marital discord/divorce proceedings etc. It is clarified that joint
notification should be done till the actual legal divorce is affected. The joint
notification can be changed by the officer after receipt of divorce decree
from a court of law.

(b) Will on Family Pension. There are cases where individuals have
written a „Will‟ on family pension stating that it should pass on to somebody
other than the wife. The court ruling on this matter is clear i.e. a „Will‟ can
only be written for own property and not for something coming out of public
funds for a larger social cause. Thus, any „Will‟ on Family pension is null and
void.

(c) Definition of a Legal Wife. As per Hindu marriage act the lady with
whom the individual gets married for the first time in his life is his legal wife.
All other marriages by the individual during the lifetime of the lady & without
a divorce from a court of law are illegal and null and void in the eyes of law.
Only a legal wife is entitled to Family pension.

(d) Definition of a Legal Child. All children born from a legal marriage
are legal. However in the eyes of law children born out of void marriages i.e.
from illegal wives have legal status and come in the category of a legal child.
Thus children from illegal marriages have same rights as legal children.

Income Tax Provisions On Pension

16. What is Exempted. Following are exempted from income tax:-

(a) Commutation amount

(b) Gratuity
 12

(c) Leave encashment

(d) Provident Fund

(e) The full monthly pension is exempted from income tax only for
those pensioners who are in receipt of Disability element of pension,
Gallantry awards and Liberalised Family Pension (LFP) for death in notified
operations.

17. What is not Exempted. The monthly pension and Family pension
[except for the type of pensions as stated at para 16 (e)] are not exempted from
income tax. Also the interest earned on payments as mentioned at para 16 is not
exempted from income tax.

18. Provisions of Income Tax. Section 10 of Income Tax Act 1961

provides the basic exemptions on the major one time payments made at the time
of retirement. Pension of Gallantry award winners and the Liberalised Family
Pension to the widow/NOK for death in the course of Operational duty is also
exempt from income tax. The notifications of IT exemption for gallantry awards
and family pension is attached as Appendix „C‟.

Types Of Gratuity

19. Gratuity means a onetime reward given by the employer for the past
services rendered. All service which qualifies for pension of an officer shall also
qualify for gratuity. The reckonable emoluments for gratuity are same as for
pension. However, gratuity will additionally include DA also. There can be many
types of gratuity, details of each type of gratuity is as follows:-

(a) Retirement Gratuity. An officer who has completed 5 years of

qualifying service (actual) and is eligible for retiring /invalid/ special pension
or gratuity of any type, will be granted retirement gratuity equal to ¼th of
the reckonable emoluments for each of the completed six month period of
qualifying service, subject to the maximum of 16 ½ times of the reckonable
emoluments which will be restricted to Rs. 10 lakhs. No weightage in
qualifying service is admissible for calculating Retiring Gratuity.

(b) Retiring Gratuity. For qualifying service of less than 20 years (but
more than 10 years), Retiring Gratuity will be admissible. Retiring Gratuity
is calculated at a uniform rate of ½ a month‟s reckonable Emoluments for
each of the completed six month period of qualifying service. No
weightage in qualifying service is admissible for calculating Retiring
Gratuity.

(c) Invalid Gratuity. An officer invalidated out of service for causes

which are neither attributable to nor aggravated (NANA) by Air Force
service is granted invalid pension, if he has rendered more than 10 years‟
service. If the service rendered is less than 10 years at the time of
 13

invalidment, only invalid gratuity is paid. The amount of Invalid Gratuity

shall be calculated at half a month‟s Reckonable Emoluments i.e. pay in
pay band, grade pay, Military service pay, NPA, if any, last drawn and
dearness allowance, for each completed six monthly period of qualifying
service. The maximum limit of Invalid Gratuity is Rs. 10 lac.

(d) Death Gratuity. Death Gratuity is admissible to the Next of Kin

(NOK) when an officer dies while in service. Death Gratuity is calculated at
the following rates depending upon the number of years of service
rendered by the officer: -

(i) For service less than one year 2 times of last reckonable
emoluments

(ii) For service one year or more 6 times of last reckonable

but less than five years emoluments

(iii) For service five years or more 12 times of last reckonable

but less than twenty years emoluments

(iv) For service twenty years or @ one month reckonable

more emoluments for each year
of qualifying service
subject to a maximum of
33 times or Rs. 10 lacs
whichever is less.

(d) Terminal Gratuity. Terminal gratuity is paid to Short Service

Commissioned Officers who are not entitled for any type of pension. The
terminal gratuity is calculated at the rate of half-a-month‟s reckonable
emoluments for each completed six-monthly period of service.
 14

CHAPTER III

DISABILITY PENSION AND INVALID PENSION

What is a Disability Pension?

1. An officer can develop a disability while in service through an injury or

disease. Depending upon the degree of disablement, he can be either retained in
service or can be invalided out of service. Invalid medical board is done when an
officer is permanently downgraded to the lowest medical category i.e. APGP.
Invalid medical board is done for officers of flying branch who are medically unfit
for flying duties but refuse to change their branch to ground duties.

2. When an officer‟s disability is attributable to or aggravated by military

service and he has a disability of 20% or more, then he is entitled to disability
pension. Thus disability pension is given for following reasons:

(a) For disability attributable to or aggravated only by the service.

(b) When the disability percentage as per medical board is 20% or

more.

Components of Disability Pension

3. Disability pension has two components i.e, Service element and Disability
element. For both these elements, separate PPOs are normally issued. Service
element is similar to retiring pension i.e. 50% of last reckonable emoluments.
Disability element is that part of the disability pension which is given for the
disability which is attributable to or aggravated by service. Therefore disability
element is directly linked with the disability percentage as decided by Release /
Invalidment Medical Board (RMB/IMB). Disability percentage is the percentage of
loss suffered w.r.t. 100% fitness of an officer. For 100% disability, 30% of last
reckonable emoluments will be paid as disability element for the disability
pension. For lesser disability, it will be reduced proportionately. Dearness Relief
(DR) is payable on the service element as well as disability elements.

What is Invalid Pension?

4. The amount of disability pension is directly related to the percentage of

disability as decided by medical board. The PPO for service element and disability
element is issued separately. However the conditions for grant of disability
pension are more benevolent in cases of invalidment vis-a-vis superannuation &
premature retirement cases.
 15

5. Quite often there is confusion between disability pension and invalid

pension. Both are not the same. There can be a situation where an individual is
invalided out of service with a disability which is neither attributable to nor
aggravated by service (NANA). In such a case if the individual has a qualifying
service of 10 years or more he will be granted with a service element of pension
at 50% of last drawn pay or last 10 months average pay whichever is more
beneficial. However he will not be entitled for disability element of pension. This
type of service element of pension (for invalidated out officers) where his
disability is NANA is called as Invalid pension. In cases of invalidment with
disability as NANA, if the qualifying service is less than 10 years, the individual is
entitled for invalid gratuity only (and not for invalid pension).

6. Thus an individual who is invalided out of service will be eligible for

disability pension if his disability is attributable to or aggravated by service. In
such a case he will be eligible for the service as well as the disability element of
disability pension. However if the individual is invalided out of service with 10
years or more of qualifying service and his disability has been decided as NANA
he will be entitled to Invalid pension only.

Beneficial Provisions of Disability Pension for Invalidment Cases.

7. An officer with a disability could be entitled for disability pension in three

cases i.e. if invalided out of service or if proceeding on superannuation or
proceeding on premature retirement. For cases of superannuation and premature
retirement the disability pension will be fixed as per guidelines explained in para 3
of this chapter. The Govt is also benevolent in deciding the disability pension for
individuals whose normal service is cut short due to invalidation out of service
which is based on recommendations of an Invalid Medical Board.

8. For cases of invalidation out of service, the eligibility criteria for service
element of the pension is relaxed in the following ways:-

(a) For Invalidation cases where disability is attributable to/ aggravated

by service:

(i) There is no requirement of a minimum qualifying service for

earning service element of pension.

(ii) Service element of pension will be at 50% of last drawn pay

or last 10 month‟s average pay whichever is more beneficial. There
will be no pro-rata reduction for less than 20 years of service
required to earn full pension ( applicable after VI CPC only).

(b) For Invalidation cases where disability is neither attributable to nor

aggravated by service (NANA ):-

(i) If the officer has a qualifying service of 10 years or more, he

 16

will be eligible for service element of pension at 50% of last drawn

pay or last 10 months average of his pay whichever is more
beneficial.

(ii) For service less than 10 years, the officer will be entitled for
invalid gratuity only. Last drawn pay and reckonable emoluments
are one and the same i.e. Band Pay, Grade Pay, MSP & NPA.

9. For invalidation cases, the eligibility criteria for disability element of the
pension is also relaxed in the following ways:-

(a) There is no requirement for a minimum disability of 20%, to earn

disability element of pension for invalidation cases. Disability percentage
for invalidation cases are broad banded to a higher percentage as
specified. The Govt rules on broad banding of disability percentage
ensures that no body is invalided out of service, with disability attributable
to or aggravated, which is less than 50%. Thus. In invalidation case, the
corresponding disability element of disability pension is bound to be higher
and more beneficial (when compared to disability element calculated for
superannuation / PR cases).

(b) The existing provisions of broad banding, of disability percentage for

invalidation cases are as follows:-

(i) 01-49 % disability : Get 50% as disability element

(ii) 50-75% disability : Get 75% as disability element
(iii) 76-100% disability : Get 100% as disability element

What is War Injury Pension?

10. War injury pension is given to an individual who receives injury under
circumstances mentioned in category „E‟ of relevant Govt letter. Category „E‟
covers war or war like operations, operations specially notified by Govt, actions
against terrorists/ extremists/ anti-social elements, Battle inoculation training
exercise etc. War injury pension is of two types: -

(a) When an individual is invalided out of service due to his war injury.

(b) When the individual is retained in service and he proceeds on

normal or premature retirement.

11. In both the cases of war injury, the service element is similar to retiring
pension i.e. 50% of last reckonable emoluments. There is no requirement of a
minimum qualifying service for eligibility to service element of pension. However
for cases of war injury leading to invalidation out of service, the war injury element
for 100% disability is equal to 100% of last reckonable emoluments. For cases
where individual is retained in service he is entitled to war injury element @ 60%
 17

of last reckonable emoluments for 100% disability at the time of retirement. For
disability which is less than 100% the war injury element will be reduced
proportionately. Wef 01-07-2009 there is no restricting upper ceiling/cap on the
aggregate of service element and war injury element of war injury pension.

Provisions of Invalid Gratuity

12. Whenever an officer is invalidated out with a disability which is NANA

(neither attributable to nor aggravated by service) and if his actual service is less
than 10 years, then he will be eligible to Invalid gratuity only. Invalid gratuity is
calculated @ half- a-months reckonable emoluments + DA for every six months of
service subject to a maximum limit of Rs 10 Lac.

Constant Attendant Allowance

13. This allowance is sanctioned to an officer for 100% disablement on the

recommendations of the medical board and subsequent acceptance by pension
sanctioning authority. This allowance is subject to an actual employment of a paid
attendant. It will not be payable for the duration of hospitalisation if any and it will
not be paid for the period of re-employment if any. W.e.f.01-01-2006 it is @ of Rs
3000/- pm irrespective of rank. There is no DR payable on Constant Attendant
Allowance. However this will further increase by 25% every time when the DR on
the revised Pay Band goes up to 50%. This increased amount of constant
attendant allowance is to be paid automatically by the banks as per the Govt
orders on this matter.

Rates of Disability Pension

14. The rates of disability element of pension for 100% disability are given
below. DR is admissible on disability element of pension. For disability lesser than
100%, the amount has to be reduced proportionately. The rates for 100%
disability are:-

(a) For normal disability element - 30% of reckonable emoluments

(b) For war injury element when - 60% of reckonable emoluments

retained in service

(c) For war injury element when -100% of reckonable emoluments

Invalided out of service

The Importance of Medical Opinion in Deciding Attributability /Aggravation

Factor

15. The eligibility of Disability element of pension is directly dependent on the

Attributability /aggravation aspect of disability. The only agency which is
competent to comment upon disability is the medical board for diseases and the
Court of inquiry/injury report for injury cases. The medical officers have well-
 18

defined guidelines on this matter from the Govt, in the form of entitlement rules
and guide to medical officers. The court of inquiry/ injury report is based on
evidence and witnesses. The courts have said that the opinion of the medical
board holds primacy in this matter. Thus, the attributability / aggravation factor of
a disease is primarily dependent on the opinion of the medical board. Similarly
attributability/ aggravation factor for cases of injury primarily depends on the
findings of COI /injury report.

Attributability Factor for Injury while on Duty

16. The COI/ injury report will recommend an injury as attributable only when
the injury has taken place while performing duty. The following cases will also be
considered on duty: -

(a) Injury while proceeding to or returning from place of duty on the normal
route.
(b) Injury while proceeding on leave or retuning from leave if injury takes
place during journey period between duty station and place of leave. Mode
of travel, type of leave and using a warrant / form D etc. has no relevance on
this attributability. However once an officer has reached his place of leave,
any injury thereafter will not be attributable unless he has been specifically
tasked to undertake a service task during leave by a competent authority
and the injury takes place while carrying out that task.

Provision for Appeal Against Rejection of Disability Pension

17. Disability pension is granted to an officer if the disability of the officer is

considered as attributable to or aggravated by service. If the competent authority
has rejected the claim for disability pension on the grounds of the disability being
neither attributable to nor aggravated by service (NANA) then the officer can
appeal against the rejection. He can appeal to PD PP&R at Air HQ giving reasons
as to why he thinks that his disability is attributable to or aggravated by service.
His first appeal will be considered as per Govt guidelines on the matter and a
decision of the first appeal committee (PD PP&R) on his appeal will be conveyed
to him. If his appeal is rejected by the first appeal committee (PD PP&R) and he is
not satisfied, then he has a right to make a second and final appeal. He can send
second / final appeal to PD PP&R and it will be sent to the second appeals
committee chaired by Vice Chief of Air staff (VCAS) at Air HQ. The second / final
appeal will be considered as per Govt guidelines and the final decision will be
conveyed to him. The constitution of first and second appeal committee is
enclosed as Appendix „D‟.
.
Other Beneficial Provisions for Pre and Post 2006 Disability Pensioners

18. The other beneficial provisions of disability pension are as given below:-

(a) New Rates of Disability Element. The earlier rates for 100%
disability element of pension @ Rs 5,880/-pm for officers and HFO/HFL
 19

and Rs 4,300/- and 3,510/- pm for warranted ranks (JWO,WO& MWO) and
other ranks respectively have been revised. Vide a Govt letter dated 15
Feb 11, 100% disability element has been revised to 30% of the notional
pay as per modified parity method, for pre -2006 pensioners. For war injury
(retained in service) and war injury (invalidation out of service) the rates
are 60% and 100% respectively. For disability, which is less than 100%,
proportionate reduction will be done in the amount. The new rates are
automatically credited by the banks as per above quoted Govt letter and
PCDA (P) circular 456 of 18 Mar 11.

(b) Broad Banding for Invalidation. Broad banding of disability

pension for invalidated officers (due to attributable/aggravated causes) was
permitted for the first time in V CPC i.e. wef 01-01-1996. This broad
banding of disability percentage is done to the nearest higher figure at
50%, 75% and 100%. Earlier this facility was not extended to pre 01-01-
1996 pensioners. Wef 01-07-2009, this facility has been extended to all
pre 01-01-1996 disability pensioners who were invalidated out of service,
due to attributable/aggravated causes. The effective date of broad
banding for pre-1996 invalid pensioners is likely to be changed by the
Govt from 01-07-2009 to 01-01- 1996 in near future. (The Govt is yet to
take a final decision on this matter).

(c) Disability Pension @ 60% of Reckonable Emoluments. For

permanent disability of 60% and above the disability pension (service+
disability element) shall not be less than 60% of reckonable emoluments
last drawn. For past cases, if the PPO is not reflecting the correct rate of
disability pension then it will have to be revised through a Corr. PPO. Such
pensioners should contact Dte of PP&R Air HQ for advice and help.

(d) Authorisation of Service Element of Pension to Emergency

commissioned and SSC officers. Before 30 August 2006 emergency
commissioned and SSC officers were not entitled to service element of
Pension, they were only entitled to disability element. Now vide GOI MOD
letter No 1(9)/2006/D(Pen-C) dated 30 August 2006 the Emergency
Commissioned & SSC officers whose disability is attributable to/aggravated
by service and who are entitled to disability element will also be entitled for
service element of disability pension as per existing provisions as
applicable to a permanent commissioned officer. For those Emergency
Commissioned and SSC officers who are in receipt of disability element
and have retired before 30 August 2006, following provisions of Govt letter
will apply:-

(i) Those officers whose disability was attributable to service at

the time of retirement will be entitled for service element wef 30 Aug
2006 (prospectively). No arrears will be admissible due to notional
fixation of revised pension for the period prior to 30 August 2006. No
commutation will be admissible and there shall be no change in the
 20

retirement gratuity already paid. Affected officers can contact Dte of

PP&R Air HQ, if they have been left out due to any reason.

(ii) Those officers whose disability was aggravated by service at

the time of retirement will not be entitled for service element of
disability pension. For cases of aggravation service element of
disability pension will be granted to only those emergency
commissioned & SSC officers who have retired on 30 August 2006
or there after i.e. issue date of Govt letter.

(iii) Past cases will not be opened.

(e) Removal of Previous Cap on War injury pension. As per earlier

rules the total of service element and War injury element could not exceed
the last pay drawn. This cap has been removed wef 01 July 2009 for all
pensioners including all past pensioners vide MOD letter 10 (01)/D (Pen
/Pol)/2009/Vol.II dated 19 January 2010 and MOD letter no 70(4)/2008(1)D
(Pen/Policy)/-Vol-V dated 15 Feb 2011 ( follow up PCDA(P) Circular No 456
dated 18 Mar 11). For the purpose of deciding last pay for pre-2006
pensioners notional pay as per VI CPC will be taken i.e. Minimum of the pay
in the Pay Band +Grade Pay +MSP+ EX Group Pay (where applicable).
(f) Provision for Additional Pension on Disability element of
Pension after 80 years of Age. Additional pension with DR as per
prescribed rates is authorised on disability element of pension after reaching
the age of 80 years. The rates for this additional pension are additional 20%
of basic pension at age of 80 years, 10% increase of basic pension with
every five years increase in age (i.e. 30% for 85 years, 40% for 90 years and
50% for 95 years). Once a pensioner completes 100 years of age, the
additional pension will be increase to 100 %.

(g) Exemption From Income Tax. Disability pensioners are exempted

from income tax on their whole pension which includes service element and
disability element

Payment of Disability Claim by AFGIS for Invalidation Cases Only

19. Every member of Air force Group Insurance Society (AFGIS) who is
invalided out of service due to recommendations of an invalid medical board on
account of disability will be provided disability benefit at half the rate of life cover
for 100% disability. For lesser disability the amount will be reduced
proportionately. Attributability/aggravation to service is not a factor in this claim.
All cases of disability linked with invalidation out of service only, can enjoy
this benefit. However this benefit is for a disability of 20% and above only. In
addition, if a member is invalided out within one year of enrollment and the
disability is not attributable to service, the member will not be eligible for this
benefit. This payment is not from public funds but welfare funds of IAF i.e. AFGIS
built up on personal contribution of serving/retired IAF personal.
 21

Information About Entitlements of Flight Cadets

20. Flt Cadets (direct) who are invalided out during training or are killed during
training are eligible for ex- Gratia compensation from public funds. However, they
are not eligible for pension. Flight cadets are also eligible for life insurance and
disability claim from AFGIS. Details of their entitlement are given in chapter V.

Payment of Ex-Gratia Lump-sum Compensation to Defence Service Officers

and Personnel Below Oficer Rank who are Invalided out of Service on
account of Disability Attributable to or Aggravated by Military Service

21. Such Defence Service personnel , who are disabled, incapacitated in the
performance of their bonafide official duties under various circumstances and are
boarded out from service on account of disability / war injury attributable to or
aggravated by military service, shall be paid Ex-gratia lump sum compensation
amounting to Rs. 9 lac for 100% disability. For disability / war injury less than
100% but not less than 20%, the amount of Ex-gratia compensation shall be
proportionately reduced. No Ex-gratia compensation shall be payable for
disability war injury less than 20%. The proportionate compensation would be
based on actual percentage of disability as certified by the Invaliding Medical
Board, without applying broad banding provisions as contained in Para 7.2 of
MoD letter No. 1(2)/97-D (Pen-C) dated 31 Jan 2001.
 22

CHAPTER-IV

FAMILY PENSION

Eligibility Criteria for Family Pension

1. The legal wife/NOK of every officer who dies in service is entitled for family
pension irrespective of qualifying service of the officer. Similarly the legal
wife/NOK of every retired officer who is in receipt of service element of pension is
entitled to family pension, after death of the retired officer. The pension scheme of
Govt is very benevolent in nature. After death of an officer it has provisions for
family pension not only for the wife but also for dependent children up to 25 years
of age, unmarried /divorced/ widowed daughter for life (subject to minimum
income criteria), handicapped child for life and for dependent parents of bachelors
and widower officers. Family pension is always authorised through a Pension
Payment Order (PPO). For death while in service the PPO for family pension is
issued directly to the widow/NOK. For officers who are proceeding on retirement
the family pension is jointly notified for the wife along with the officer‟s own
entitlement of retiring pension.

2. For the purpose of Family Pension, the family can be defined as follows:-

(a) Category -I

(i) Widow or widower, up to the date of death or re-marriage,

whichever is earlier?

(ii) Son / daughter (including widowed daughter) up to the age of

25 years or date of his/her marriage/remarriage whichever is earlier.

(b) Category-II

(i) Unmarried/ widowed / divorced daughter, not covered by

category- I above, up to the date of marriage /remarriage or till the
date she starts earning or up to the date of death, whichever is
earlier.

(ii) Parents who were wholly dependent on the Armed Forces

personnel when he was alive provided the deceased had left behind
neither a widow nor a child.
 23

3. Salient aspects of eligibility of family pension are: -

(a) Family pension to dependent parents, unmarried/divorced/widowed

daughter will continue till the date of death (subject of fulfillment of income
criteria)

(b) Family pension to unmarried/widowed/divorced daughters in

category-II and dependent parents shall be payable only after the other
eligible family members in Category-I have ceased to be eligible to receive
family pension and there is no disabled child to receive the family pension.

(c) Grant of family pension to children in respective categories shall be

payable in order of their date of birth. The younger of them will not be
eligible for family pension unless the brother / sister above him/her has
become ineligible for grant of family pension in that category.

(d) The dependency criterion for the purpose of family pension shall be
an income which is not more than minimum family pensioning along with
dearness relief i.e. Rs 3500/-pm + DR.

(e) A legally separated wife or husband (not yet legally divorced) is

eligible for family pension provided such separation is not on grounds of
adultery.

Types of Family Pension

4. Ordinary Family Pension (OFP). Ordinary Family Pension is

normally paid to the widow for all cases of death after retirement and for those
cases of death while in service where the death is neither attributable to nor
aggravated by service (NANA). It is paid @ 30% of last reckonable emoluments
(Band pay, Grade pay, MSP &NPA for medical officers) + dearness relief (DR).
OFP will stop on remarriage except for widows who are issue less. For widows
with children, it will pass on to her eligible children as per their seniority.

5. Enhanced Ordinary Family Pension (EOFP). This pension is basically an

ordinary family pension which has been enhanced for a limited period as a
benevolent measure by the Govt for cases of death while in service and for an
early death after retirement. Enhanced ordinary family pension is paid @ 50% of
last reckonable emoluments +DR. It is paid for 10 years to the widow for death in
service. There is no upper age limit. For death after retirement, it is paid for
7 years after death or up to 67 years of age of deceased officer (65 years for pre-
13 May 1998 retirees). For a widow to be eligible for enhanced ordinary family
pension (EOFP) a minimum of seven years‟ qualifying service is required to have
been rendered by the deceased officer.

6. Special Family Pension (SFP). Normally SFP is given to the widow for
death of an officer while in service where the death is attributable to/or aggravated
by service. It is paid @ 60% of last reckonable emoluments +DR. However if an
 24

invalidated out officer dies within seven years of his invalidation out of service and
in the medical opinion his death has been primarily caused by the disability for
which he was invalided out of service, then the widow could be eligible for SFP. In
such a case she should contact Dte of PP&R for advice. SFP will not stop after
remarriage. However if widow does not support her children it can be divided
between the widow and the children.

7. Liberalized Family Pension (LFP). LFP is granted for death which

besides being attributable to and aggravated by service should take place in the
face of enemy (in war/on border/notified operations), engagement with militants,
while trying to maintain law and order amongst unruly crowds, weather extremities
during op deployment, fratricide in combat heat, Battle inoculation training
exercise, death in Op deployment due to snakebite, poisoning of water by enemy
etc. The recommendation for LFP will depend on the circumstances of death as
emerging out of Court of inquiry/injury report and subsequent medical opinion on
death. It is paid @ 100% of last reckonable emoluments +DR. LFP will not stop
after remarriage. However if widow does not support her children after
remarriage, it will be divided between the widow and the children.

8. Family Pension to Children Below 25 Years. When both parents/ single

surviving parent, eligible for pension expire/ become ineligible, then Children
below 25 years of age unmarried and unemployed (income less than minimum
pension of Rs 3500/-pm +DR) will be eligible for family pension. The Family
pension will start with eldest child below 25 years of age. Once he/she is 25 years
of age it will be given to the next child in line who is below 25 years. For release of
family pension to a minor child, a legal guardian will be required from a court of
law till the child is 18 years old. If there is a handicapped child who is eligible for
life long Family pension, then the family pension to handicapped child will be
issued only after all other eligible children below 25 years have received their
family pension, in sequence.

9. Family Pension for Handicapped Children/ Handicapped Siblings.

Handicapped unmarried children (not capable of earning their livelihood) are
eligible for family pension for life, after the death of their both the parents. Such
children have to be examined by competent medical authorities and a certificate
as per prescribed format AFMSF – HD (i) should be counter signed by a doctor
not less than the rank of a Brigadier or equivalent. Married handicapped children
are not eligible for this pension. A guardian for such children should be nominated
by parents in their life time. Handicapped siblings (brothers and sisters) are also
eligible for family pension on similar lines as handicapped children. For
endorsement of the name of handicapped child/sibling in the PPO, an officer can
apply during his life time itself. Applications for the same should be sent to Dte of
PP&R. Guidelines for applying and the application forms for grant of family
pension to a disabled child is annexed as Appendix „E‟.

10. Family Pension for Unmarried/ Divorced/ Widowed Daughter.

Unmarried / divorced / widowed daughter can apply for family pension only after
the death of both her parents. She is eligible to apply only if she is unmarried/
remains divorced at the time of demise of her last surviving parent (father or
 25

mother). Her pension is subject to minimum income criteria and audit verification
of her claims. Her name will not be annotated in the PPO during her parent‟s life
time. Applications by eligible daughters should be sent to Dte of PP&R after the
death of both parents.

11. Family Pension to Wife/NOK of Missing Personnel in Service or After

Retirement. Ordinary family pension is admissible for personnel who are missing
in service or after retirement. The family pension can commence six months after
lodging of FIR about the missing person. For cases of missing personnel while in
service, an inquiry at the unit level must establish that the person is actually
missing and is not a deserter. The same has to be supported by a Police
investigation report on the matter. For cases of missing personnel after retirement
the family pension will only be admissible to widow/NOK if the missing officer was
in receipt of service element of pension and the police investigation report
establishes clearly that the retired officer is missing. Thereafter in such cases
family pension will be released after proper audit verification.

12. Provision for Additional Pension After 80 Years of Age. Additional

pension is authorised wef 01-01-06 for the benefit of pensioners / family
pensioners who are 80 years and. The details of this pension are as follows:-

(a) This additional pension is over and above the normal pension and is
also applicable to OFP, SFP, LFP, disability pension and war injury
pension.

(b) DR is entitled on this additional pension. This additional pension will

be paid by PDA (bank, treasury etc.) from the same month in which
pensioner has completed the age of 80 years or above.

(c) The rates for this additional pension are additional 20% of basic
pension for 80 years, 10% increase of basic pension with every five years
(i.e. 30% for 85 years, 40% for 90 years and 50% for 95 years). However
once a pensioner completes 100 years of age, the additional pension will
be increased to 100 %.

(d) If the date of birth of pensioner is available in the PPO, then

additional pension will be started by the bank straight away without
reference ot JCDA. If date of birth is not there in the PPO then pensioner
can approach his Bank with date of birth as given in PAN Card, Matric
certificate, Passport, ECHS card, Driving license and Election ID card.
Four copies of any of these documents duly attested by a Gazetted officer/
MLA should be submitted to PDA for commencement of additional pension.
Based on these documents the PDA will commence additional pension on
provisional basis, for six months. The pensioner should contact Dte of
PP&R within one month with relevant documents for issue of Corr. PPO by
CDA annotating the date of birth of the pensioner along with other relevant
details like, latest Bank account No., full address of bank & its Link Branch,
BSR Code of bank & its Link Branch.
 26

13. Provision for Appeal Against Rejection of Special Family Pension

(SFP). SFP is granted to a widow if the death of the officer in service is
considered as attributable to or aggravated by service. If the competent authority
has rejected the claim for SFP, on the grounds of death not being attributable to
or aggravated by service, then the widow can appeal against the rejection. She
can appeal to PD PP&R at Air HQ giving reasons as to why she thinks that her
husband‟s death is attributable to or aggravated by service. Her first appeal will be
considered by PD PP&R as per Govt guidelines and a decision of the First
Appeals Committee will be conveyed to her. If she is not satisfied, then she has a
right to make a second and final appeal. She can once again send the appeal to
PD PP&R who in turn will send to the Second Appeal Committee headed by Vice
Chief of Air staff (VCAS). The second appeal will be considered as per Govt
guidelines and the final decision will be conveyed to her. There is no provision for
appeal by a widow/NOK against rejection of LFP. The composition of First and
Second Appeal Committee is enclosed as Appendix „D‟

Joint Notification of Family Pension with Legal Wife.

14. For all cases of death in service, the family pension is granted to the widow
as per existing rules. However, for death after retirement, the wife is normally
entitled to family pension only if the husband was in receipt of service element of
pension. Every officer who has retired or gone out of service after 1986 with a
pension has a joint notification of pension along with his legal wife. Joint
notification in the pension payment order (PPO) basically means that the wife is
automatically entitled to family pension after the death of her husband. The lady
has to contact her husband‟s bank along with death certificate of her husband for
claiming the Family pension. She will have to meet certain procedural formalities
at the bank like submission of original death certificate, submission of a few
witnesses who know her status as the legal wife, life certificate for herself,
remarriage related certificate etc. The Family pension should normally
commence within four to six weeks of completing the procedural formalities
required by the bank.

15. Before 1986 there was no provision for joint notification of Family pension
with wife and the pension was made on the name of retiring officer / other rank
only. After death of the individual a fresh case for family pension was sent for
audit verification and issue of PPO. It was a cumbersome and time consuming
procedure. However provision exists for such pensioners to apply for joint
notification of pension through Dte of PPR, Air HQ. Joint notification of Family
pension has been completed for majority of pre-1986 pensioners also. Those
who have not done so they should immediately apply for the same. If a pensioner
who does not have joint notification expires then his wife‟s case will be taken up
for Family pension with audit as per pre 1986 procedures.

Family Pension Entitlement After Remarriage of a Widow

16. Family Pension After Remarriage of a Widow in Receipt of Liberalised

Family Pension (LFP). Before 01-01-1996, widows in receipt of LFP could
 27

continue to draw LFP only if they were married to the real brother of the
deceased. If they married anybody else their LFP was stopped and OFP was
given to them. Continuation of LFP for widows remarrying anybody else (not the
real brother of deceased) was permitted for the first time after V CPC i.e. 01-01-
1996. However for widows who were remarried before 01-01-1996, and whose
LFP was stopped, there was no provision to restart their LFP. Now the Govt vide
its order dated 24 Jun 2005 has permitted restoration of LFP for such cases of
remarriage for pre-1996 widows wef 24-06 2005. Application for restoration of
LFP should be sent to Dte of PP&R.

17. Family Pension After Remarriage of a Widow in Receipt of Special

Family Penison (SFP). Family pension of widows in receipt of SFP is permitted
even after remarriage after V CPC i.e. 01-01-1996. SFP is primarily given for
death of an officer while in service when the death is attributable to or aggravated
by service. Widows in receipt of SFP who were remarried before 01-01-1996,
were however not eligible for pension. Now widows in receipt of SFP who were
remarried before 01-01-1996 and whose family pension was stopped are eligible
for grant of SFP wef 20-01-2009. The widows who are eligible should apply to
DPP&R.

18. Family Pension After Remarriage of a Widow in Receipt of Ordinary

Family Pension (OFP). Normally the family pension of a widow in receipt of
ordinary family pension (OFP) stops after remarriage. OFP is given when death is
neither attributable to/ nor aggravated by service and for cases of death after
retirement. However, as an exception a childless widow in receipt of
OFP/enhanced family pension is eligible for continuation of her family pension
after remarriage subject to fulfillment of certain laid down minimum income
criteria. Initially this provision was applicable to prospective cases wef 01 Jan 06.
Now, childless widow of a deceased employee who expired before 01 Jan 06 will
also be eligible for family pension after re-marriage. Applications by eligible
widows should be sent to Dte of PP&R.

Understanding Legal Aspects Related with Family Pension

19. Who in the Family has First Claim to Family Pension. It is quite
common to see tussle between wife and parents of late officer for family pension.
As per the existing pension rules the parents can have no claim over Family
pension if the officer has left behind a widow or a child. Thus parents are primarily
eligible for family pension of bachelor officers or widowers without children. The
sequence of eligibility for family pension is Widow/Widower, children of officer,
parents and dependent siblings. Legal guardianship certificate from a court of law
will be required for release of family pension to a minor child.

20. Legal Wife and Legal Child. Instances of plural marriages are
extremely less in officer cadre. But they exist and normally surface after
retirement/death of the officer. The legal position on this matter is as follows:-
 28

(a) As per Hindu marriage act (applicable to most other religions) the
lady with whom the officer got married for the first time is the legal wife of
the officer. Any marriage with another lady before the death/divorce (as
given by a court of law) of first wife is void in the eyes of law. A wife from
void marriage is not entitled for family pension.

(b) A marriage solemnised done before death /divorce with the legal
wife will continue to remain void even after subsequent death/ divorce of
first wife. The fact that the first wife had consented for such a marriage in
her life time does not make it legal and the marriage will continue to be
void in the eyes of law.

(c) However children born from void marriages are considered as legal
children and they will be legally entitled to family pension as per their
eligibility on the same lines as children from a legal marriage.

21. Will by an officer on the Family Pension. There are instances where
serving/retired personnel have expressed disappointment with their wives
behavior/character and have written a Will that the family pension due to them
should not go to their wife and should be given to some other NOK. Such matters
have gone to court and the legal position is that a Will by the officer on family
pension is null and void due to following:-

(a) A Will can only be written for own property. Family pension comes
out of Govt money for a social cause hence will on family pension is null
and void.

(b) Marital discord/ other related issues may be a reason to seek

divorce. However after an individual is dead, the status of a legal wife
continues uninterrupted and her right to claim family pension and other
related benefits is legally valid. Even in cases where divorce proceedings
are going on, her legal status as a wife will remain unchanged till a divorce
decree is pronounced by the court. If the death of the individual takes place
before the pronouncement of divorce decree, the divorce proceedings will
cease &become irrelevant. The lady‟s status as the legal wife will continue
for all benefits due to a widow.

22. Family Pension Entitlement Where Wife is Accused of Murdering her

Husband. Only in those cases where the legal wife is accused of murder of
her husband, the claim to family pension can be deferred pending an investigation
report by police. If police also charge sheets the lady, then her claim to family
pension will depend on the outcome of the court verdict on the matter. If the wife
is convicted by court of law, the Family pension may be released to the children of
deceased.

23. Provisions for division of Family Pension. Family pension can be

divided in following circumstances:
 29

(a) Ordinary Family Pension (OFP). Division of OFP can take

place if legal child from a divorced/deceased wife is not in the custody/care
of present wife then the pension between the two can be divided.

(b) Special Family Pension (SFP). If a widow in receipt of SFP does

not support her children (below 25 years of age), then her SFP will be
divided as 50% to her and the balance 50% to her children.

(c) Liberalised Family Pension (LFP). If a widow in receipt of LFP

does not support her children (below 25 years of age) then her LFP will be
divided as OFP (30% of last emoluments) to her and SFP (60% of last
emoluments) to her children.

24. Restrictions on Drawing more Than One Family Pension. A defence

pensioner can earn his second pension from the new organisation where he is
re-employed after retirement. The present Govt rules do not permit two family
pensions to a widow. She can draw only one family pension whichever is more
beneficial to her. Wef 27-7-2001, in addition to her defence family pension, a
widow can also draw the second family pension only if it comes under following
two categories:-

(a) Employees Provident Fund (EPF) scheme 1995 and

(b) Family Pension Scheme (FPS) 1971

Monetary Allowance and Free Railway Passes for Widows of Gallantry

Awards Winner

25. Monetary Allowance For Widows of Gallantry Award Winners.

Widows whose husbands were in receipt of gallantry awards (PVC, Ashok
Chakra, MVC, Kirti Chakra, Vir Chakra, Shaurya Chakra, VM (Gallantry), are
entitled to receive monetary allowance for the same after the death of their
husband. In addition, they are also exempted from income tax on their full
pension. The monetary allowance is authorised for every Gallantry award/ Bar
separately. The rates of monetary allowance are revised periodically by the Govt.
The old rates of allowance are attached as Appendix „B‟. The current rates of
monetary allowance wef 30 Mar 11 vide Min of Def letter No. 7(119)/2008-D(AG)
dated 30th March 2011and O/o PCDA (P), Allahabad circular No 09dt10-06-2011
of are as follows:-

(a) Post- Independence Gallantry Awards

(i) Param Vir Chakra : Rs. 10,000/-pm

(ii) Ashok Chakra : Rs. 6,000/- pm
(iii) Maha Vir Chakra : Rs. 5,000/- pm
(iv) Kirti Chakra : Rs. 4,500/- pm
 30

(v) Vir Chakra : Rs. 3,500/- pm

(vi) Shaurya Chakra : Rs. 3,000/- pm
(vii) VM (Gallantry) : Rs. 1,000/- pm

(b) Pre-Independence Gallantry Awards

(i) Distinguished Service Order (DSO) :Rs 4,000/- pm

(ii) Indian Order of Merit (IOM) :Rs 4,000/- pm
(iii) Indian Distinguished Service Medal :Rs 4,000/- pm
(IDSM)
(iv) Distinguished Service Cross (DSC) :Rs 2,800/- pm
(v) Military Cross (MC) :Rs 2,800/- pm
(vi) Distinguished Flying Cross (DFM) :Rs 2,800/- pm
for Offrs
(vii) Distinguished Service Medal (DSM) :Rs 2,800/- pm
(viii) Military Medal (MM) :Rs 2,800/- pm
(ix) Distinguished Flying Medal (DFM) :Rs 2,800/- pm
for ORs

26. Free Railway Passes for Widows of Gallantry Award Winners. The
recipients of Gallantry award winners of Chakra series (PVC, MVC, VrC, Ashok
Chakra, Kirti Chakra and Shaurya Chakra) and their widows are entitled for
complementary passes along with a companion from the Indian Railways, for free
travel in first class/ second AC. The passes will be issued by the office of
Divisional Railway Manager and Headquarters office of the Railways on receipt of
an application on plain paper. Widows will be required to additionally submit copy
of death certificate and non-remarriage certificate from a Gazetted officer.

Important Bank Procedures Affecting Pension

27. Mandatory Submission of Life Certificate to Bank in the Month of

November. Annual identification of live pensioners by the banks is a must. This is
done by banks every year in November through submission of a life certificate by
pensioners. If the life certificate is not submitted in time the banks can stop the
pension payment. This is a precaution which banks take to detect fraudulent
withdrawal from pension accounts of pensioners who are dead. The format in
which life certificate is to be submitted should be preferably taken from the bank.
For very sick and severely handicapped pensioners, the bank should be
requested to send an official at home of pensioner to physically verify and then
issue the life certificate. It is easier to submit the yearly life certificate every year in
November than to work hard subsequently towards restarting a stopped pension.
The life certificate is also required to be submitted before collection of first
pension/family pension.
 31

28. Procedure for Change of Branch/Bank. A pensioner can change

his PDA (pension disbursing agency) as per his choice. For this he has to apply to
his PDA i.e. the bank or branch from where he is drawing pension. If there is any
unusual problem he can contact Dte of PP&R for advice. With the advent of core
banking the change of PDA will normally be faster within the same bank. Certain
precautions should be taken before applying for change of PDA. Firstly there
should be no major amount/ arrear due in the pension account. Secondly draw
the last pension as and when it becomes due and thereafter immediately apply for
transfer. Depending on banks efficiency the procedure can take 4-10weeks. It can
take longer if there is transit loss of documents. Widows must activate their jointly
notified family pension and should draw their family pension for few months
before applying for change of PDA.

29. Procedure for Non Receipt of PPO/Corr. PPO at Bank & Issue of Loss
Certificate. This situation emerges when the pensioner is waiting for her original
or corrigendum (revised) PPO. However while the office of DCDA confirms
dispatch of PPO to link branch, the concerned branch of the bank reports non
receipt of the PPO. This is a typical situation of loss of PPO in transit. The PPOs
are dispatched under insured registered post therefore their loss is rare. However
if the link branch does not receive the PPO within one month of dispatch then it
should be presumed as lost in transit and action should be initiated to get a
duplicate PPO issued by the office of DCDA. The lost PPO has the potential of
perpetuating a bank fraud therefore a „loss certificate‟ from link branch is a must
for release of duplicate PPO. The loss certificate is in a particular format which
banks are aware of, in case of doubt Dte of PPR can be asked this format on e-
mail. The loss certificate issued by bank manager basically states an annotation
of the loss of PPO has been annotated in bank records and if the PPO is found
again and produced to the bank; no payment on it will be released by the bank.
This loss certificate in original should be sent to the office of DCDA, another copy
of original loss certificate should also be sent to Dte of PPR as a backup and for
necessary liaison with DCDA and early issuance of duplicate PPO. DCDA will
only issue a duplicate PPO for the bank. It will not issue any duplicate PPO for
loss of individual‟s copy of PPO.

30. Procedure to Collect a Family Pension for a Seriously Sick or

Comatose (vegetable) State Pensioner. When ever a family pensioner is
sick to the extent that he/she can‟t sign their bank cheque then he / she is
permitted to put thumb impression on the cheque. In addition for pensioners who
are in comatose state i.e. unconscious/ or mentally not stable, a legal
guardianship certificate from district court will be required by the bank and there
after the bank will release the pension to the legal guardian. For the purpose of
submitting yearly life certificate for such pensioners, the bank should be
requested to send an official to the home of pensioner so as to physically verify
the pensioner and then issue the life certificate.

31. Claiming Life Time Arrears (LTA) of Late Husband from Bank. Life
time arrears are defined as the dues/ money/pension of the late officer which was
due to the officer but could not be paid during his life time. In many cases the late
 32

officer had a single account and the name of nominee was not filled up by the
individual at the time of opening his pension account, it was left blank. In such
cases the wife can not claim life time arrears of the late officer. As per the existing
rules Banks can pay the left over money in late individual‟s account, to the
nominee or to the next heir as per succession certificate from a court of law. The
wife automatically can not claim life time arrears of her late husband if she is not a
nominee. A large number of widows are dismayed to find themselves in this
frustrating situation after their husband‟s death. In such a situation the banks are
fully within their rights to ask for a succession certificate from the widow/NOK.
However at times with a bit of liaison they release the LTA to widow/NOK
provided there is an authentic WILL of the late officer to support the claim for LTA.
It is therefore desirable for family pensioners also to have a nominee for their
bank account. The nominee should preferably be one of her children who is
looking after her.

Ex - Gratia Lump Sum Compensation

32. Ex-gratia lump-sum compensation is admissible to the families of the

Commissioned Officers who die in harness in the performance of their bonafide
official duties. This is not admissible for every death which is attributable to
service but only when the officer had died in harness in performance of his
bonafide official duty. The claim where it is due will be initiated by the last unit,
after completing of all procedural formalities. The details of the Ex –Gratia Lump
sum compensation are as follows:-

(a) Death due to accidents Rs. 10 Lac

(b) Death due to acts of violence by terrorists, Rs. 10 Lac
antisocial elements, etc.
(c) Death in border skirmishes and action against Rs. 15 Lac
militants, terrorists, extremists
(d) Death while on duty in the specified high altitude Rs. 15 Lac
area, inaccessible border posts etc. on account of
natural disaster, extreme weather conditions
(e) Death in enemy action in international war or such Rs. 20 Lac
war like engagements which are specifically
notified by Ministry of Defence

Note. The earlier max limit of Rs 20 lac on ex- gratia from all sources (Centre and
State) has been removed. From the year 2010 there is no max limit.

Other Financial Benefits to Widows

33. Claiming Pre/Post Retirement Insurance Cover (PRIC) from AFGIS.

Air Force Group insurance Society (AFGIS) provides life insurance cover to
its officers while in service and after retirement. For death while in service AFGIS
will contact the widow through the last unit and release the insurance money after
necessary formalities. However in case of death after retirement the widow must
inform AFGIS about the same. AFGIS will advise the widow on completing
necessary formalities and thereafter release the insurance amount to her. The
 33

insurance amount and the cut off age will vary depending on the year of
retirement and the scheme as applicable at that time. The current insurance
coverage for death in service is Rs 50,00,000/- (Rs. Fifty lac) and for death after
retirement is Rs 10,00,000/- (Rs. Ten lac) upto 72 years of age wef 01 Apr 2010.
Details of PRIC and other welfare schemes of AFGIS is covered in chapter VI.

34. Financial Assistance Scheme (FAS) for Widows/NOK by IAFBA. While

in service a very small sum (less than Rs30/-pm) is contributed by all officers &
other ranks to IAF Benevolent Association (IAFBA). The primary welfare activity of
IAFBA is to provide monthly financial assistance to widows of IAF personnel.
IAFBA provides assistance to the widow for 15 years in cases of service death
and eight years for death after retirement. The rates will vary (1500/-pm to
Rs3000/-pm) as per the scheme in force and the matching contribution made at
the time of retirement. The details of FAS and other welfare schemes of IAFBA
are covered in chapter VI.

35. Grant From AFWWA. For a widow who was an AFWWA member, the
AFWWA Central gives a one time grant after the death of the husband. Proof of
being an AFWWA member in terms of photocopy of AFWWA card or the card
number will have to be sent to the AFWWA central office. The present rate of one
time grant is Rs 6,000/-. It is subject to revision from time to time. The other
welfare schemes of AFWWA are covered in chapter VI.

Common Problems Faced by Widows.

36. Not Knowing Their Correct Pension Entitlement After a New Pay
Commission. It is one of the most common problems faced by widows. We
frequently see cases where a widow is getting pension as per IV CPC whereas
she is required to transit to VI CPC pension. Such delays where the upgradation
of last pay commission has not taken place is common in respect of widows. Such
kind of delays results in procedural complications and invariably further delay
revision of family pension as per new pay commission. This situation primarily
results from failure of banks to implement the revision of pension as per new pay
commission. Such a failure/ mistake of bank can be corrected only if the
pensioner is alert and aware of her revised entitlement after a new pay
commission. It appears that many widows are tending to live in isolation after their
husband‟s death and therefore they are not aware of their new entitlements after
every pay commission. It is advisable for widows to write to Dte of PP&R, Air HQ
after every new pay commission and check their revised pension. In addition it is
desirable for them to become a member of Air force Association who issues
regular bulletins on matters beneficial to pensioners. It will also be desirable for
the widow to remain in touch with her ex Air Force friends and other similar placed
retirees so that she can compare notes on her family pension and initiate timely
action when required.

37. Not Knowing Whom to Write and What to Write Regarding Their
Problems. A widow of an officer has a single point contact for all her problems
i.e. Dte of PP&R Air HQ. Our address is Dte of PP&R, Air HQ, West Block-VI, RK
Puram, New Delhi 110066. This office can also be contacted through e-mail
 34

(pprmail@indiatimes.com) and direct civil telephone number i.e. 011-26104394

and 011 - 26171370. She should also write her problem in a simple lay man
language, the way one writes a letter to a friend so that Dte of PP&R can
understand her problem and help her. She must mention the late officers name,
branch, service number, her present address for correspondence and her bank
address. She must also write her email address, residential telephone number
and mobile number so that we can contact her swiftly for any additional
information/clarification.

Income Tax Provisions on Family Pension.

38. Income tax, as per Income Tax Act will be charged on family pension.
However following categories of family pensioners are exempt from income tax:-

(a) Family pensioners in receipt of monetary allowance for Gallantry

awards.

(b) Family pensioners in receipt of Liberalised Family Pension (LFP)

i.e. death during notified operations only.
 35

CHAPTER-V

DEPENDENT PENSION & EX- GRATIA FOR FLT CADETS

Dependent Pension

1. What is Dependent Pension. Dependent‟s pension is the pension which

is given to parents of a bachelor officer or an officer who is a widower without
children. If parents are not alive then this pension can also be given to dependent
siblings (brothers and sisters) of the deceased officer. The dependent pension will
be admissible to parents/siblings till:-

(a) In case of parents. Upto the date of death or in the case of female
parent who re-marries - up to the date of re-marriage.

(b) In the case of brothers/sisters. Upto the date he/she attains the
age of 25 years or until she gets married, whichever is earlier. The
dependent pension may be continued beyond 25 years if brothers / sisters
are incapable of self-support by reason of mental or physical infirmity.

2. Rates and Types of Dependent Pension. The rate of dependent

pension for death which is neither attributable nor aggravated by service ( NANA)
corresponding to OFP is 30% of last reckonable emoluments. Even for death
which is attributable to or aggravated by service, corresponding with SFP, the rate
is same i.e. 30% of last reckonable emoluments. The only difference is that for
NANA cases corresponding to OFP the means limit (income) criteria is there i.e.
income should not be more than Rs. 3,500/-pm + DR. However for cases
corresponding with SFP there is no means limit but the rates are authorised at
half of SFP rates which will finally work out to 30% of last reckonable emoluments
i.e. half of 60%. For death case corresponding with LFP the rates will be 75% of
last reckonable emoluments for both parents being alive and 60% of last
reckonable emoluments for single parent being alive. Whenever the dependent
pension is subject to means limit, yearly verification of income will be required for
release of pension.

Note. Parents of a bachelor or widower without children, who dies after

retirement, will become eligible for Family pension only if both were dependent on
him while he was in service.

Ex-Gratia Provisions For Flt Cadets

3. Ex Gratia for Disability and Death of Flight Cadets (direct). Flight

Cadets (direct) are not entitled for pension like commissioned officers/ other
ranks. However they are entitled to Ex Gratia awards for disability and death. The
current rates of Ex Gratia for flight cadets (also applicable to all officer cadets
(direct) in three services) are as follows:-
 36

(a) Ex Gratia Awards to Flt Cadets in Case Of Disablement

(Invalidation on Medical Grounds)

(i) Monthly Ex Gratia - Rs 3500/-pm + DR

(ii) Monthly Ex-Gratia Disability Award - Rs 6300/-pm + DR

(For 100% disability will be reduced
proportionately for lower disability)

(iii) Constant Attendant Allowance (CAA) - Rs 3000/- pm

Note.

* CAA is admissible for 100% disability only

** DR is not admissible on CAA

*** CAA will increase by 25% whenever DR crosses 50%

(b) Ex Gratia Awards to Flt Cadets in Case Of Death

(i) One time Ex-Gratia Amount - Rs 5 Lac

(ii) Monthly Ex-Gratia Amount to Next of Kin- Rs 3500/-pm + DR

(c) Additional Data on Ex-Gratia for Flt Cdts.

(i) The above rates of disablement & death are only for those
cases where disablement/death is attributable to/aggravated by
military training.

(ii) The rules and procedures regarding acceptance of

attributability /aggravation of disablement/death shall be the same
as for regular commissioned officers.

(iii) The Awards under these orders are covered by GOI, MOD
department of Ex-servicemen welfare letter No 6(1)2009-D (Pension
Policy) dated 01 June 2010 and PCDA (P) Allahabad section order
No 4 dated 20 July 2010.

(iv) The date of implementation for post 01-01-2006 cases of

disablement and death is 01-01-2006. However for pre-2006 cases
the date of implementation is 01-09-2008.
 37

5. Payment of Disability Claim by AFGIS to Flt Cadets who are

Invalidated out of training. Every Flight Cadet of IAF who is a member of
Air force Group Insurance Society (AFGIS) and who is invalided out of training on
recommendations of an invalid medical board on account of disability will be
provided disability benefit at half the rate of life cover for 100% disability. For
lesser disability the amount will be reduced proportionately.
Attributability/aggravation to service is not a factor for granting this claim.
However this benefit is for a disability of 20% and above only. In addition, if a
member is invalided out within one year of enrollment and the disability is
not attributable to service, the member will not be eligible for this benefit.
This payment is not from public funds but welfare funds i.e. AFGIS created by
contribution from serving and retired IAF personnel.
 38

CHAPTER-VI

OTHER BENEFITS AND WELFARE MEASURES FOR WIDOWS AND

RETIRED PERSONAL FROM NON PUBLIC FUNDS AND SAINIK
BOARDS

INDIAN AIRFORCE BENEVOLENT ASSOCIATION (IAFBA)

Introduction

1. Indian Air Force Benevolent Association (IAFBA) is a self-administered body

registered under the Societies Registration Act (XXI) 1860. It came into effect
from 22 Nov, 1940. This was first registered at Lahore on 22 Nov, 1940.
Subsequently the same was registered at Delhi on 10 Jun, 1981. The aim of
IAFBA is to relieve financial hardship and distress of all IAF personnel and their
dependents, both from the past and the present, through various welfare
schemes.

Various Post Retirement Welfare Schemes of IAFBA

2. Some of the important welfare schemes of IAFBA for widows and other
retired personnel are as follows:

(a) Family Assistance Scheme (FAS) for Widows.

(b) Lump Sum Death Grant (for less service cases).

(c) Monthly Maintenance Grant for Medically Boarded out Personnel.

(d) Monthly Maintenance Grant of Bereaved Wives of Medically

Boarded out Personnel.

(e) Grant to World War II Veterans Served in the IAF.

(f) Grant to Widows of World War II Veterans

(g) Grant to Wife/Parents in case of missing Personnel.

(h) Grant For Daughter‟s Marriage.

(j) Grant for Purchase of Trade Instrument to Bereaved Wives.

(k) Special Scholarship to Orphan Children of AF Personnel.

(l) Grant for Purchase of Mechanical Aid for self

 39

Family Assistance Scheme (FAS)

3. This scheme aims to provide monthly financial assistance to widows for a

fixed period of 15 years for death while in service and 08 years for death of an
officer after retirement. The widow will get the rates as per the scheme of which
her husband was member at the time of his death in service or at the time of his
retirement. Her financial assistance will also depend on whether her husband had
opted to be a member of this scheme when it was on a voluntary basis i.e. before
01 April 1997. This scheme became compulsory only after 01 April 1997. The rate
of assistance will also depend on the minimum years of service put in by the
officer before death in service/retirement. The details of the two FAS schemes
currently in vogue are given in subsequent paragraphs.

4. FAS-97. This scheme is applicable for the widows of those AF personnel

who have died on or after 01 Apr 97 and are not the members of FAS-09 scheme.
The minimum service of the officer required for eligibility of a widow to this
scheme is 20 Yrs. This scheme is available for a period of 15 years for death in
service and 08 years for death after retirement. The rates are as follows:

(a) For Death in Service. Valid for a period of 15 years and

minimum service requirement is not there. The rates are as follows:

Officers Airmen NCs(E)

2000/- pm 1,500/- pm 1,500/- pm

(b) For Death After Retirement. Valid for a period of 08 years and
a minimum service of 20 years is required to be eligible for this family
assistance scheme. The rates are as follows:

Officers Airmen NCs(E)

1,500/- pm 1,000/- pm 1,000/- pm

(c). Lump Sum Death Grant for Less Than 20 Years Service.
Widows of pensioners having less than 20 years of service who were
discharged prior to Apr 97 and are not covered under the Family
Assistance scheme (FAS) will be provided with lump sum Death Grant.
This is applicable for death which has taken place on or after 01 Oct 2008.

Officers Airmen NCs(E)

8,000/- 5,000/- 5,000/-

5. FAS- 09. This scheme is applicable for the widows of those AF

personnel who were in service on 01 Apr 09 or later and have contributed to
revised rates of FAS. The minimum service of the officer required for eligibility of
widow to this scheme is 10 years. This scheme is available for a period of 15
years for death in service and 08 years, for death after retirement. The rates are
as follows: -
 40

(a) For Death in Service. Valid for a period of 15 years and

minimum service requirement is not there. The rates are as follows:-

:Officers Airmen NCs(E)

4000/- pm 3,000/- pm 3,000/- pm

(b) For Death After Retirement. Valid for a period of 08 years and a
minimum service of 10 years is required to be eligible for this assistance
scheme. The rates are as follows:-

Officers Airmen NCs(E)

3000/- pm 2,000/- pm 2,000/- pm

(c) Lump sum Grant With Less Than 10 Years Service

(i) Service between 5 to 10 Years

Officers Airmen NCs(E)

30,000/- 20,000/- 20,000/-

(ii) Service less than 05 Years

Officers Airmen NCs(E)

15,000/- 10,000/- 10,000/-

Monthly Maintenance

6. Monthly Maintenance Grant is provided to the medically boarded out Air

Force Personnel. This grant is given to personnel pending award of disability
pension. This is initially given for three months and can be extended to a
maximum of six months. The family members of deceased Air Warriors who
expire after being medically boarding out are also eligible for a similar grant. The
details of the grant are listed below:-

(a) Monthly Maintenance Grant for Medically Boarded out

Personnel

Officers Airmen NCs(E)

2,000/- 1,500/- 1,500/-

(b) Monthly Maintenance Grant for Medically Boarded out

Personnel with 100% Disability

Officers Airmen NCs(E)

3,000/- 2,500/- 2,500/-
 41

(c) Monthly Grant to Bereaved Wives of Medically Boarded out Air

Warriors

Officers Airmen NCs(E)

2,000/- 1,500/- 1,500/-

Note. In case an Air Warrior expires before finalisation of his

disability pension, the grant will be extended to his widow pending
finalisation of pension in her name subject to a maximum of six months.

Grant to World War II Veterans who Served in the IAF & their Widows

7. The grant to World War II veterans who are not in receipt of pension is as
follows:

Officers Airmen NCs(E)

2,000/- 2,000/- --

8. The grant to World War II veterans‟ widows who are not in receipt of
pension is as follows:

Officers Airmen NCs(E)

1,500/- 1,500/- --

Grant to Wife/Parents in Case of Missing Personnel while in Service

9. The grant is given to Wife/ Parents of missing Personal while in service. It

is for a max period of 12 months. This grant will be recovered if missing person
joins duty or will be adjusted against FAS rehabilitation grant. The rates of grant
are as follows:

Officers Airmen NCs(E)

. 4000/- 3000/- 3000/-

Grant for Daughter's Marriage

10. This grant is given for both death in service and death after retirement.
There is no minimum service requirement for cases of death in service. However
an Air Warrior should have put in at least 24 years of service for a widow to claim
this grant after retirement. The rates of this grant are as follows:-

Officers Airmen NCs(E)

35,000/- 28,000/- 28,000/-
 42

Special Scholarship to Orphan Children of AF Personnel

11. This scholarship is meant for orphan children of AF Personnel who die
while in service. Application form from guardian is to be sent on Form DD-40
through Zila Sainik Board with their recommendation along with a certificate from
school showing details of expenditure and details of terminal benefits received by
the guardian. A maximum of two children can be covered under this scheme. The
rates of this scholarship are as follows:-

Officers Airmen NCs(E)

Boarders 3,000/- 3,000/- 3,000/-
Day Scholars 800/- 800/- 800/-

Grant For Commercial Venture

12. Grant for Medically Boarded out Air Force Personnel. Lump sum
grants are provided to medically boarded out Air Force personnel for commercial
ventures. The rates are as mentioned below: -

Officers Airmen NCs(E)

50,000/- 20,000/- 20,000/-

13. Grant for Purchase of Trade Instrument to Bereaved Wives. Similarly

lump sum grants are provided to the wives of the deceased Air Force Personnel
for purchase of trade instruments or reimbursement of tuition fee for vocational/
professional course. In this case wife/orphaned child will also be eligible and the
cheque will be prepared in the favour of the institute. The rates for both grants are
as mentioned below:-

Officers Airmen NCs(E)

25,000/- (max) 25,000/- (max) 25,000/- (max)

Grant for Purchase of Mechanical Aid for Self

14. This is a lump sum payment and is given only when the mechanical aid is
not available through service sources. The rates are as given below:-

Officers Airmen NCs(E)

. 8,000/- 8,000/- 8,000/-
 43

Contact Details of IAFBA

15. The contact details of IAFBA are as follows:-

(a) E-mail Address. iafba@yahoo,com

(b) Telephone numbers.

(i) Director : 011-25691367

(ii) Secretary : 011- 25699704
(iii) JD (fin& Sys) : 011-25699845
(iv) WAC Exchange : 011-25687194-95
(Extn. for FAS section-7851)
(v) Fax No : 011- 25698069

(c) Website. Detailed information about all the welfare schemes of

IAFBA is available on their website. The same can be logged Logging on to
IAF website www.indianairforce.nic.in and choosing welfare in right top
corner followed by IAFBA at top right corner. Typing IAFBA on Google will
also result in displaying this site.

(d) Postal address of AFGIS.

AFGIS Bhawan
Subroto Park
New Delhi- 110010

AIR FORCE WIVES WELFARE ASSOCIATION

Introduction

16. Air Force Wives Welfare Association (AFWWA) was formed on 28th
October, 1970 as a registered body to provide assistance to the families of
deceased / disabled/ retired / serving personnel of the Indian Air Force. AFWWA
also extends its helping hand to poor and needy people of the society. Its willing
contribution to the senior citizens, special children, orphans etc. is praiseworthy
and worth emulating. AFWWA has adopted villages around the Air Force bases
which lack basic amenities. It organises health camps at regular intervals with the
help of specialists from Air Force and Civil Hospitals for check-up and treatment
of ailing persons.
 44

Various Post Retirement Welfare Schemes of AFWWA

17. AFWWA provides a number of benefits for its members. To claim these
benefits the lady should be a life member of AFWWA and is required to present
the following documents: -

(a) Proof of membership

(b) Death certificate of husband, if required

(c) Any other relevant certificate

18. Various welfare schemes of AFWWA are as follows: -

(a) Ex-Gratia Payment for Widows Rehabilitation

(b) AFWWA Pension
(c) Wedding Grant
(d) Medical Assistance
(e) Dwelling Unit for Widows
(f) Rehabilitation of Widows of NCs(E)
(g) Various types of Educational Scholarship
(h) Scholarship for Sportsmen/Artists
(j) Allotment of Oil Products Agencies to Defence Personnel and their
dependents

19. A summarised form of major AFWWA welfare schemes is given below in chart
form:-
Amount Amount Amount
Name of Scheme Officers Airmen NCs(E) Eligibility and Duration
(p.a.) (p.a.) (p.a.)
Benefits for Retired AF Personnel
Husband is boarded out on
1. Grant to wives of AF Rs. Rs.
Rs. 10000/- medical grounds not attributable
Personnel (Medically 10000/- 10000/-
Lump-sum to service is given a one time
Boarded out) Lump-sum Lump-sum
grant of Rs.5000/-.

Benefits for Deceased AF Personnel

1. Ex gratia Grant for
Widows Rehabilitation
(a) Death in Service Rs. 6000/- Rs. 6000/- Rs. 6000/- On demise of husband.
(b) Death after Rs. 6000/- Rs. 6000/- Rs. 6000/-
Retirement
 45

Rs. 6000/- Rs. 6000/- Rs. 6000/- Paid to widow whose husband
2. AFWWA Pension
Lump-sum Lump-sum Lump-sum dies while in service.
3. Wedding Grant to Rs. 7000/- Rs. 7000/- Rs. 7000/- To one child of a widow whose
Children of Widow Lump-sum Lump-sum Lump-sum husband dies while in service.
Widows of those NCs (E) who
4. Rehabilitation
die while in service and intend
Grant to Widows of ---- ---- Rs. 2000/-
to resettle themselves by
NCs(E)
tailoring / stitching.
Rs.
5. Grant for Dwelling Rs.10000/- Rs.10000/- Widow whose husband is killed
15000/-
Unit to Widow Lump-sum Lump-sum in accident while in service.
Lump-sum
6. Educational
Scholarship for
Children of Deceased Rs. 1800/- Rs. 1800/- Rs. 1800/-
AF Personnel
(a) School going Day Rs. 3000/- Rs. 3000/- Rs. 3000/- From 1st standard onwards for
Scholar a period of six years only or
(b) School going Rs. 3000/- Rs. 3000/- Rs. 3000/- completion of studies which is
Boarders earliest.
(c) College going Day
Scholar & Boarders Rs. 5400/- Rs. 5400/- Rs. 5400/-
(d) For Medical /Engg.
Courses
To widow or their children for
7. Scholarship for Rs. 4800/- Rs. 4800/- Rs. 4800/- pursuing vocational training for
Vocational training Lump-sum Lump-sum Lump-sum certificate / diploma course of 6
months and above.

Employment Opportunity to Widows

20. Widows are also eligible for commissioning in Ground Duty Branches of
Indian Air Force (SSC). The eligibility conditions are as follows:

Branch/Type of Age Advertisement

Educational Qualification
Entry Limit Schedule
a) Administration First Class Graduate 20-23 Mar/Sep
b) Logistics Or Second Class PG in subjects
c) Accounts as per advertisements 20-25
d) Education Second Class PG in subjects as 20-25 Mar/Sep
e) Meteorology per advertisements

Note. There is relaxation of age upto 04 years for the widows in

certain Branches, which is published in the advertisements or can be
ascertained from www.careerairforce.nic.in or Publicity Cell,
Air Headquarters, 'DISHA' Motilal Nehru Marg, New Delhi - 110011.

Tele: 011-23010231 Extn-7080. Telefax: 011-23017918, E-mail:

career_iaf@bol.net.in.
 46

Contact Details of AFWWA

21. AFWWA website can be contacted by typing AFWWA on google and

clicking the site open. In addition this site can be opened through
www.indianairforce.nic.in On opening of this website, click welfare towards top
right corner. Thereafter click AFWWA. The contact details of AFWWA are as
follows:-

Santushti Shopping Complex, New Willingdon Camp,

Opposite Samrat Hotel, Race Course,
AF Station New Delhi-110003

Tele - 011-26878099
Fax - 011-24104681
E-mail : afwwa@bol.net.in

AIRFORCE GROUP INSURANCE SOCIETY (AFGIS)

Introduction

22 Air Force Group Insurance Society is registered under the societies

registration act (XXI of 1860). It has come into existence w.e.f. 01 Nov 1975.The
society is established by the Armed Forces of the Union (Air Force) for the welfare
of the past and present members and their dependents.

Welfare Schemes of AFGIS For Pensioners

23. Following important welfare schemes are being supported by IAFBA:

(a) Group insurance cover while in service

(b) Post retirement insurance cover (PRIC)

(c) Disability claim

(d) Subsidy to a widow for procuring a dwelling unit

(e) Interim payment to personal declared missing

(f) Financial assistance to officers Hospitalised beyond six months

(g) Investment through fixed deposits with multiple options

(h) Facility for loan up to 75% of fixed deposit in AFGIS

 47

Group Insurance Cover While in Service and During Training for Flt Cadets

24. The insurance cover by AFGIS is reviewed periodically. The present

insurance cover for death of a serving IAF officer and an Flt cadet while in training
is Rs. 50 lac. The insurance amount will be disbursed by AFGIS as per
nomination signed by the officer. In the absence of valid nomination, the
beneficiaries would be wife, minor children and major unmarried daughters. 50%
of share will be paid to the wife and the balance will be equally shared between
minor and major children. Money will be adjusted up to 100% of AFGIS claim,
against house building advance from financial institutions; if the officer has opted
for the same by executing a nomination in favour of the financial institution while
taking a loan.

Post Retirement Insurance Cover (PRIC)

25. The PRIC scheme was first started by AFGIS from 01 August 1981. The
aim was to provide insurance cover even after retirement and to provide a social
and financial security to the families in case of death of an AF veteran. The cover
by PRIC is revised after every 7-10 years. In 1881 it was on a voluntary basis
however it was made compulsory w.e.f. November 1991. The cover from PRIC
will vary as per the existing scheme at the time of retirement.

26. The period of cover is 15 years or till 70 years of age whichever is earlier
for those in service upto 29 Mar 2005. W.e.f. 30 Mar 2005 period of cover was
extended till 72 years of age or 15 years whichever is earlier. However in all
cases the cover is reduced to 50% after 15 years of retirement till upper age limit
of 70 or 72 years is reached. The Amount of PRIC will vary as per retirement date
and the scheme which was in force at that time. W.e.f. 01 April 2011 the PRIC
cover is Rs. 10 Lac. PRIC 2005 cover was Rs. 05 Lac and the earlier PRIC
schemes before 2005 will have relatively lesser cover.

Disability Claim

27. Every member of AFGIS (including Flt Cadets), who are invalided out of
service or out of training, due to recommendations of an invalid medical board on
account of disability, will be provided disability benefit at half the rate of life cover
for 100% disability. For lesser disability the amount will be reduced
proportionately. Attributability/aggravation to service is not a factor in this claim.
All cases of disability linked with invalidation out of service only, can enjoy this
benefit. However this benefit is for a disability of 20% and above only.

28. Members with a disability which is less than 20% will not be entitled to this
benefit. Members who are being invalided out because they have refused
alternate employment offered by IAF ie change of branch; will not be entitled to
this benefit. Members invalided out of service due to Alcoholism, Drug addiction,
Self-inflicted injuries, Disability arising out of attempted suicide, Disability arising
out of an intentional act resulting in criminal conviction will not be eligible for this
benefit. In addition if a member is invalided out within one year of enrollment and
 48

the disability is not attributable to service, the member will not be eligible for this
benefit. Members who are having disability but are going out on superannuation
or premature release through a release medical board (RMB) are not eligible for
this benefit. This benefit is only for a forced exit out of service due to invalidation,
on recommendations of an invalid medical board (IMB).

Subsidy to a Widow for Procuring a Dwelling Unit

29. The widow of an officer /Airman & NCs(E) could be eligible for a subsidy
of Rs three lac and Rs 2 lac respectively subject to following eligibility conditions:-

(a) The subsidy will be payable to widows of AF personnel killed in an

accident while in service and subject to the provision that the widow
would actually occupy and live in the dwelling unit.

(b) The widow of the deceased personnel should not be already owning
a dwelling unit.

(c) If the AF personal had already purchased a dwelling unit and full
payment had not been made, the scheme will cover such cases also.

(d) Acquisition of dwelling unit will be applicable to schemes of

AFNHB/AWHO/Civil housing agencies including private builders and for
self-construction.

(e) The house can not be sold or let out for 10 years after receipt of
subsidy amount. This will also be binding upon legal heirs of widow in case
of her demise before 10 years.

Interim Payment to Personal Declared Missing

30. A sum of Rs 2000/- and Rs 1000/- is paid to family of officers and

Airmen/NC(E) respectively for a period of nine months from the date of missing or
until his /her death is confirmed, whichever is earlier.

Financial Assistance to Officers Hospitalised Beyond Six Months

31. Officers who are hospitalised beyond six months will have 50% reduction in
pay and allowances (furlough rates) unless their disease/injury is attributable
to/aggravated by service. In cases where the pay and allowances is reduced to
furlough rates, a financial assistance of Rs 10000/- PM for a period not exceeding
six months during the period of hospitalisation will be paid.

Investment Through Fixed Deposits

32. Air Force personnel who retire and families of AF Personnel who die while
in service get substantial benefits. Proper advice on judicious investment of lump
sum money is not readily available to retiring personnel/families. The possibility of
 49

being duped of their money by wrong advisors in the investment market also
exists. With a view to assist personnel in investing their funds at a good rate of
interest combined with safety, the AFGIS has launched an investment scheme
wef 01 December 1991. The investment cannot be more than the terminal
benefits received after retirement/ death of spouse. AFGIS has a variety of
schemes which can give monthly/ quarterly interest as a regular source of income
or it can be a pure investment scheme with interest being reinvested. The interest
rates vary from time to time but they are very competitive in comparison with the
interest rates offered by Banks. Further details can be obtained by writing to
AFGIS office Subroto Park New Delhi or visiting IAFBA website.

Loan Against Fixed Deposit

[

33. Facility for loan upto 75% of fixed deposit amount exists with AFGIS. The
rate of interest will be floating and 1% higher than the rate of interest being paid
by AFGIS on non-cumulative investments. The loan can be repaid up to a
maximum of 120 monthly installments.

Contact Details of AFGIS

34. The contact details of AFGIS are as follows:-

(a) E-Mail. afgis@iaf.nic.in

(b) Website. www.indianairforce.nic.in On opening of this website,

click welfare towards top right corner. Thereafter click AFGIS and the
various benefits under it indicated towards right corner.

(c) Telephone Numbers.

(i) PD : 011-25694415

(ii) Secretary : 011-25694068

(iii) JD Finance : 011-25695414

(iv) Section dealing with death : 011-25681115

/disability claim

(v) Section dealing with PRIC : 011- 25683995

 50

BENEFITS & WELFARE SCHEMES BY KENDRIYA/ RAJYA/

ZILA SAINIK BOARD

35. Kendriya Sainik Board, Rajya Sainik Board, Zila Sainik Board and
benefits to ESM. Welfare of the ex-Servicemen (ESM) and their dependents is
the joint responsibility of the Centre and the States/UTs. Like the Kendriya Sainik
Board at the Centre, the Rajya and Zila Sainik Boards at the State and District
level respectively are advisory bodies in respect of policy formulation with regard
to resettlement and welfare of their ex-Servicemen/families. To assist the State
Governments in this regard, there are 32 Rajya Sainik Boards in the country. The
welfare activities of Zila Sainik Boards will marginally differ from state to state. For
full information on benefits extended to ESM by various Rajya/Zila sainik boards
please visit DGR site of www.dgrindia.com . Registration in the nearest Zila
Sainik Board is a must for becoming eligible for various state sponsored welfare
schemes. Normally benefit to ESM at state level will relate to following issues: -

(a) Amendment to Rent Control Act

(b) Cash Grants to Gallantry and Non-Gallantry Award Winners

(c) Ex Gratia Grant to War-Widows NoK and to Disabled Soldiers

(d) Exemption of House Tax for Self-Occupation

(e) Financial Assistance to World War II Veterans

(f) Re-Employment

(g) Relaxation in Physical Efficiency Test

(h) Removal of Domiciliary Reservations at Professional Colleges

(j) Reservation of Seats Professional Colleges

(k) Self Employment

(l) War Jagir Allowance

Note. This information is also available on official website of IAF i.e.

www.indianairforce.nic.in On opening of this site navigate to Ex-Air
warrior on top right corner, for the required information.
 51

CHAPTER-VII

EX- SERVICEMAN CONTRIBUTORY HEALTH SCHEME (ECHS)

(Understanding the system of sick report after retirement)

Introduction.

1. In order to provide quality medicare to the retirees of armed forces, the

necessity was felt to establish a medicare system which is comprehensive and
could provide relief to ex-servicemen similar to the one available for other Central
Government employees i.e. CGHS. After due deliberations a comprehensive
scheme was launched with effect from 01st April 2003 named as ECHS which was
authorised by GoI, MoD letter No. 22(i) 01/US/D(Res) dated 30 th December 2002.
The Scheme is financed by Govt of India.

2. With the introduction of ECHS, retired armed forces personnel and their
dependents who were earlier entitled for treatment in only service hospitals, are
now authorised Medicare facilities not only in service hospitals, but also in those
civil/private hospitals which are empanelled with the ECHS. The ECHS is being
managed through the existing infrastructure of Armed Forces which includes
command and control structure, spare capacity of Service Medical facilities
(Hospitals and MI Rooms), procurement organisations for medical and non
medical equipment, defence land, buildings etc, which has minimised the
administrative cost of the scheme.

3. The ECHS Central Organisation is located at Delhi and functions under the
Chiefs of staff committee (COSC) through AG and DGDC&W in Army HQ. The
Central organisation is headed by Managing Director, ECHS, a serving Major
General. In addition there are 13 Regional Centers of ECHS organisation.

Eligibility Conditions

4. The Scheme caters for medical care to all Ex-servicemen (ESM)

pensioners including disability and family pensioners and their dependents, which
includes wife/husband, legitimate children and wholly dependent parents. To be
eligible for membership of ECHS a person must meet following two conditions:-

(a) Ex-servicemen Status. The eligibility criteria for the retired

defence personnel for status of ex-servicemen are governed by the
definition laid down by Department of Personnel and Training, Ministry of
HRD, Govt of India. Details of these criteria and definition can be viewed at
ECHS web site i.e. www.indianarmy.nic.in/arechs.htm.
 52

(b) Should be Drawing Normal Service /Disability/ Family Pension.

(i) For the purposes of eligibility for the ECHS, the word
“pension” implies any type of pension received from Controller of
Defence Accounts (Pension) or its subordinate offices. In case an
ESM joins a second career and his pension from the Defence
Services Estimates is merged, second pension earned after
retirement from the second career is also eligible for these
ESM/their widows for seeking ECHS membership, subject to
fulfillment of other conditions of eligibility for ECHS membership.

(ii) Family Pensioner. Implies the legally wedded spouse of an

Armed Forces personnel, whose name figures in the Service
Records of the personnel and whose husband/wife has died either
while in service or after retirement and is granted family pension.
This term also includes a child or children drawing family pension on
the death of his/her pension drawing father/mother, as also parents
of a deceased bachelor soldier, who are in receipt of family pension.
(Authority:- Central Org ECHS letter No B/49701-PR/AG/ECHS dt
26 Mar 07

(iii) Emergency Commissioned Officers (ECOs)/Short Service

Commissioned Officers (SSCOs). ECOs and SSCOs who were
permanently absorbed in National Cadet Corps as Whole Time
Officers (WTOs) after their release from the Armed Forces meeting
the twin conditions of being an ex-servicemen and in receipt of
pension/family pension/disability pension. (Authority:- Central Org
ECHS letter No B/49764/AG/ECHS dt 10 Oct 2003)

(iv) Indian Coast Guard Pensioners and retired Personnel of

Defence Security Corps. Authority: - Central Org ECHS letter No
B/49701-CG/AG/ECHS dt 02 May 08 & letter no B/49701-
DSC/AG/ECHSdt 17 Apr 08.

(v) Service Officers who, prior to completing their

pensionable service, joined PSUs. Officers in this category joined
PSUs like Air India, Indian Airlines, Pawan Hans and Shipping
Corporation of India, in organisational interest, and Govt had
sanctioned pension to these officers on a pro-rata basis. On
secondment or transfer to PSUs these officers received their
pension either as lump sum or full commutation, or on monthly basis.
They would be deemed to comply with the condition of being in
receipt of pension from Defence Sources. However a mandatory
certificate will have to be endorsed by these ESM in their Affidavit
stating that “I certify that I am NOT a member of any other Govt/PSU
medical health Scheme”.
 53

Eligibility Status for Dependents

5. The following qualify to be dependents of ESM:-

(a) Parents. Father and mother of the pensioner shall be deemed to

be dependent if they normally reside with the ESM pensioner, and their
combined income from all sources is less than Rs 3500/-pm. If both
husband and wife are Defence Personnel, parents of both members are
eligible if both pay subscription subject to meeting dependency criteria.

(b) Spouse. The following shall be deemed eligible as spouse:-

(i) Legally wedded spouse (More than one spouse and children
from the second spouse are not permitted to avail ECHS benefits).

(ii) Name should be included in the record of service.

(iii) Legally separated spouse is included as long as the ESM

pensioner is responsible for her maintenance.

(iv) If the spouse is employed in Govt service then he/she can

only be a member of any one Govt/Public sector medical benefit
Scheme and not be a simultaneous member of two Govt medical
Schemes.

(v) If a war widow remarries, then she alone is eligible. Her

husband and children from him will not be eligible.

(vi) In case the ESM pensioner marries after retirement, following

documents will be required as proof for dependency of wife :-

(aa) Marriage certificate from authorised Registrar of

Marriages/ Municipal Committee.

(ab) Fresh ECHS Application Form for enrolling the spouse

as a dependent.

(ac) Part II Orders /Gen Form/Personal Occurrence

published.

(c) Daughter(s).

(i) Her/their details must exist in the service record of the

pensioner.

(ii) Unmarried as well as divorced daughter (s) with total income

from all sources less than Rs 3500/-per month.
 54

(iii) Widowed daughters who are dependant on the pensioner

and whose income from all sources is less than Rs 3500/- per
month are entitled.

(iv) In case daughter is born after the pensioner‟s joining ECHS,

following documents will be required to enable the child to be
declared as a dependant and to become entitled to ECHS benefits :-

(aa) Birth Certificate.

(ab) Fresh ECHS Application Form to enroll her as a

dependant.

(ac) Part II Orders/Gen Forms/Personal Occurrence are

required to be published stating birth of the child or an
Affidavit by the widow in case the ESM pensioner could not
get Part II Orders published for birth of his children.

(d) Son(s).

(i) His/their details must be included in the pensioners Record of

Service.

(ii) His total income from all sources should not exceed Rs
3500/-pm. Son(s) above 25 years of age are not eligible to be
dependent(s) in ECHS.

(iii) In case where the son(s) is/are born after the pensioner‟s
joining the ECHS, the following documents will be required as proof
of dependency:-

(aa) Birth Certificate.

(ab) Fresh ECHS Application Form to enroll him as a

dependant.

(ac) Part II Orders/Gen Forms/Personal Occurrence stating

birth of the child or an Affidavit by the widow in case the ESM
pensioner could not get Part II Orders published for birth of
his children.

(e) Children with permanent disability. Children suffering from

permanent physical or mental disability and are unable to earn their
livelihood are permitted to be dependents for life time, irrespective of age
limit or medical condition. The certificate of disability is to be certified, by
either the Service Classified Specialist or a Civil Surgeon. (Auth ; Central
Org ECHS letter No B/49701-PR/AG/ECHS dt 05 Apr 2007
 55

(f) Conditions for continuance of eligibility. In case an ESM

pensioner (male/female) has declared his/her parents as dependants, they
shall continue to receive ECHS benefits for their life time, subject only to
the condition that their joint income from all sources does not exceed Rs
3500/-pm from all sources. In the event of the male pensioner‟s death, the
widow shall be covered as she will start drawing family pension but, her
parents will NOT become eligible as dependants. However, parents of the
deceased pensioner, if already enrolled as dependants, would continue to
enjoy benefits of the ECHS in the event of death of the ESM pensioner,
and provided their joint income from all sources does not exceed
Rs 3500\- pm +DR.

Persons Who are Not Eligible.

6. The following are NOT eligible for becoming members of ECHS: -

(a) Whole time NCC officers who do not meet the twin conditions
referred to under Para 4(a) & (b) of this chapter.

(b) Ex-ECOs/SSCOs who do not meet twin conditions referred to at

para 4(a) & (b) of this part.

(c) Legally divorced spouse.

(d) Married and/ or employed daughters/and any child whose total

monthly income from all sources is more than Rs 3500/-.

(e) Son(s) above 25 years of age or who have starting earning which
ever is earlier.

(f) Parents of widow/war widow.

(g) Husband of a remarried war widow including children born from him.

(h) Gorkha Pensioners of Nepal Domicile.

How to Become an ECHS Member?

7. (a) Pre 01 Apr 2003 retirees. The ESM who retired on or before 31
March 2003 are entitled for Fixed medical allowance (FMA) per month as
authorized in their PPO. However, they may opt to become an ECHS
member after which they would cease to be entitled for FMA by and will
have to fulfill the following:-

(i) Computerised application form available at nearest Station

HQs of Army/Navy/Air force or downloaded from internet website
www.indianarmy.nic.in/arechs.html.
 56

(ii) Pensioners will have to personally report to their nearest

Station HQs with the completed application form, along with
original/photocopy of the following documents:-

(aa) Pension Payment Order (PPO), copy duly attested by

Bank/Treasury from where pension is being drawn. Pre-
1986 pensioners may submit copy of pension book showing
rate of pension.

(ab) DPDO/Banker Certificate.

(ac) Discharge book or Certificate/Dependent Identity cards

(issued for Naval Officers)/Personnel Occurrence Report.

(ad) Two copies (in original) of the Military Receivable

Order (MRO) as proof of deposit of contribution, if not
exempted from payment of ECHS contribution.

(ae) Affidavit duly notarised.

(af) Demand Draft for Smart Cards.

(iii) Membership will commence from the date of receipt of

correctly filled application form at Stn HQ. A receipt will be given to
the individual.

(b) Post 01 Apr 2003 retirees. The ECHS membership is compulsory

for personnel who retired after 01 Apr 2003, the contribution for which is
being deducted by the Pension Paying Authorities. All documents along
with application form will also be submitted by such retirees to their record
office. The membership will begin from the date when his correctly filled
application along with all requisite documents is accepted at Stn HQ or
from the date of retirement of new retirees provided his application is
accepted by Record Office.

Smart Cards

8. The Smart Card containing various details both in physical as well as

digital form in a chip is being issued to all members as a proof of membership of
the scheme. After issuance, the card needs to be activated by giving thumb
impression at any polyclinic, preferably parent polyclinic. The information can be
accessed at all polyclinic.

(a) Quantity. Normally, a total of four cards (one master and three
additional cards) can be issued to a single member. Dependent parents
will be included in the Master Card and no separate add on card will be
issued since they normally reside with the ESM. Additionally, a
mentally/physically challenged child will be issued with a white card for life
dependency once eligibility is ascertained.
 57

(b) Cost. The cost of each card is Rs. 135/- and is to be borne by the
member.

(c) Amendment to Card. In case of any incorrect entry in the smart

card, it should be brought to the notice of the issuing authority with in
seven days from the receipt of the card to get a free replacement.
However, any amendment at a later stage to the Card desired by the
member will require a new card to be made on approval of ECHS
organisation, the cost which is to be borne by member.

(d) Loss of Card. In case of loss of card, member is to apply for issue
of duplicate cards along with an affidavit and the cost of new cards will be
borne by the member. However, for issue of new smart card due to any
reason, a fresh application form along with relevant document need to be
submitted.

(e) Contribution. The contribution for ECHS is mandatory w.e.f. 01

April 2003 and is recovered through PPO at the time of retirement.
However a large number of pre-2003 pensioners who had the option to
choose between joining ECHS or drawing a Fixed Medical Allowance of
RS100/-PM opted for Fixed Medical Allowance per month (now Rs300/-PM
w.e.f. 01-09-2008). Many of them now feel that it was a wrong decision
and want to join ECHS. However, they are not clear about the rates and
the procedure of joining ECHS. Firstly, medical expenses are bound to
increase with advancement in age, therefore, it makes a lot of sense to join
ECHS and forgo the Fixed Medical Allowance. Pre-Apr 2003 pensioners,
who wish to join ECHS, should contact ECHS Regional Centre / nearest
Military Base for advice. In addition they can go on ECHS official Website
i.e. www.indianarmy.nic.in/arechs.htm. The revised rate of subscription for
pre-Apr 2003 pensioners is as follows: -

(i) ESM who Retired prior to 01 Jan 1996. Those pensioners

who wish to join the ECHS do not have to pay any subscription as per
the prevailing GoI Orders.

(ii) ESM who Retired between 01 Jan 1996 to 31 Mar 2004.

Though the scheme was made compulsory wef 01 Apr 2003, the
money from PPO was deducted from 01 Apr 2004. Those pensioners
who have retired between 01 Jan 1996 to 31 Mar 2004 and now want
to take ECHS membership (on or after 01 Jun 2009) will have to pay
the revised rates of subscription effective from 01 Jun 2009 i.e.

Grade Pay corresponding to last rank Contribution (in rupees)

Rs. 1800/-, Rs. 1900/-, Rs. 2000/-, Rs. : 15,000/-
2400/-, and Rs. 2800/-
Rs. 4200/- : 27,000/-
Rs. 4600/-, Rs. 4800/-, Rs. 5400/-, and Rs. : 39,000/-
6600/-
Rs. 7600/- and above : 60,000/-
 58

(f) Exemption from Contribution. Following are exempted from

payment of ECHS contribution:-

(aa) War widows and NOKs of deceased soldier who are in

receipt of „Liberalised Family Pension‟

(ab) War disabled soldiers.

(g) Parent Polyclinic. The nearest ECHS polyclinic is the first contact
point for availing treatment for ECHS member and their dependents. Every
member will be allotted a parent polyclinic, one nearest to his permanent/
temporary residence, irrespective of parent polyclinic a member can take
treatment at any polyclinic in India. If required a member can be given
referral to hospital by any polyclinic as per referral policy. However,
member can be issued with only seven days medicines at a time from non
parent polyclinic unless he carries a Temporary Attachment Certificate
(TAC). The validity of TAC is for six months at a time.

(h) How to change parent polyclinic. The Parent polyclinic can be

changed, if required, by submitting the following documents to nearest Stn
HQs :-

(i) An application on plain paper containing the details of old

ECHS Regn No., old address, old parent polyclinic, new address
and new parent polyclinic.

(ii) An undertaking on a separate plain paper stating that no

information has been concealed or suppressed and any false
information submitted will make him liable for termination of his
ECHS membership.

(iii) Proof of new address (electricity/telephone/water bills or

RWA certificate etc.)

(iv) A fresh ECHS application form with relevant columns filled

and super scribed “CHANGE OF ADDRESS” and “CHANGE OF
PARENT POLYCLINIC”.

(v) Old cards duly defaced.

(vi) Demand draft issued in favour of concerned Regional Centre

@ Rs 135/- per card.
 59

How to Get Normal and Emergency Treatment

9. The nearest ECHS polyclinic is the first contact point for availing treatment
for ECHS member and their dependents. Doctors at polyclinics will provide
required out-patients treatment and medicines. In case further treatment or
investigations are required, polyclinic will refer patient to any of the service/civil
empanelled hospitals or diagnostic centers.

10. Initially, the patient will be referred to the local service hospital in the
station (where available) subject to availability of required specialty/facility. In
case of non-availability of facility or bed space at local service hospital, the patient
can be referred to the desired empanelled hospital/diagnostic Centre as per
his/her choice. Once referral to empanelled facility is recommended, the ECHS
member will have the right to make the selection of desired empanelled hospital in
the station.

11. On completion of treatment in empanelled hospital, the patient is to sign

the bills raised by the hospital so that treatment charged for, is confirmed to have
been provided.

12. Payment to empanelled hospitals. ECHS Members are NOT required to

pay to empanelled hospitals. Payment made, if any, is not reimbursable.
Payment for empanelled facilities is directly made by local Station HQ on behalf of
ECHS at the agreed rates for treatment provided or diagnostic tests carried out on
ECHS members on referral. Certain facilities like telephone, television, transport,
food/catering (except in certain specified cases) are not entitled and charges for
these, if availed, have to be borne by the patient. Also, certain medical
procedures require prior approval as per laid down guidelines. Request for such
prior approvals will be initiated by the empanelled hospital on a specified form,
which the hospital is required to submit to the concerned SEMO. Once
approved, the expenditure incurred on the particular medical procedure will be
borne by ECHS. Unapproved medical procedures, if carried out, are not liable to
be paid by ECHS In case any charges are levied by empanelled hospital without
the patient‟s consent, Polyclinic/SEMO/Stn HQs are required to be informed for
taking necessary action. The list of all empanelled hospitals in india is given on
ECHS website www.indianarmy.nic.in/arechs.htm

13. Emergency Treatment. Treatment in case of emergency can be availed

by adopting following procedure:-

(a) Service Hospital. Free treatment is provided hence no action is

required.

(b) Empanelled Hospitals. Nearest ECHS polyclinic is to be informed

regarding admission by the hospital within 48 hr (two working days). After
verification of emergency, referral is generated by the polyclinic for the
hospital and treatment is provided by the empanelled hospital. Members
are not to make any payment. However if emergency is not established,
members are to bear the expenditure.
 60

(c) Non-Empanelled Hospitals. Nearest polyclinic is to be informed

by the member/patient/NOK within 48 hours (two working days). After
verification, an „Emergency Information Report‟ (EIR) is initiated by the OIC
polyclinic. Hospital bills are to be cleared by the member. In case of
emergency in a station other than home station of the ECHS beneficiary,
the EIR is to be obtained from the nearest polyclinic. In case of emergency
in a station without any polyclinic, the nearest polyclinic should be informed
by telephone/fax/telegram. Proof of such intimation should be attached
with the claim. Claim for re-imbursement along with original bills and
investigation reports, bill summary, discharge summary, photocopy of
ECHS smart card. Emergency Certificate by the Hospital/treating doctor
and the EIR should be submitted along with a written application by the
member to the OIC polyclinic explaining circumstances of emergency
(briefly) and with a request to process the claim. All bills of treatment will
be submitted to parent polyclinic within one month of termination of
hospitalization. Onus of proving emergency lies with the ECHS member.
Reimbursement will be admitted at approved rates and subject to
conditions.

14. Conditions of Emergency. The ECHS is designed to provide treatment

at authorized hospitals on referral basis, which makes it a cashless as far as
possible. However, under the following circumstances which are unavoidable due
to absolute emergency reimbursement is permitted:-

(a) Acute Cardiac conditions/syndromes.

(b) Vascular catastrophes.
(c) Cerebra-Vascular accidents.
(d) Acute abdominal pain.
(e) Acute respiratory emergencies.
(f) Life threatening injuries.
(g) Acute poisonings and snake bite.
(h) Acute endocrine emergencies.
(j) Heat stroke and cold injuries of life threatening nature.
(k) Acute renal failure.
(l) Severe infections leading to life threatening situations.
(m) Any other condition in which delay could result in loss of life or limb.

15. Issue of Medicines. Members/dependents are to visit polyclinics and

register themselves for issue of any kind of medicine, which will be issued for
duration as prescribed by the treating doctors. Medicine issues will be on the
basis of Generic names only. Branded medicine may be issued on non availability
of generic equivalent in the existing list of PVMS and NIV drugs only. This list
contains all the essential drugs, as approved by the DGAFMS, and is updated
periodically. Super-specialty medicines may take sometime for procurement.
 61

16. On prescription of doctor, medicines may be issued for a maximum period

of 90 days at a time for patients with chronic diseases on long term treatment and
review of the patient during the period is not due. However, medicines issued
from any polyclinic other than “Parent Polyclinic” will be restricted to a max of 07
days at a time, unless Temporary Attachment Certificate is carried.

17. For patient‟s admitted/advised treatment in Service Hospital, medicines for

up to one month will be issued from the Service Hospital concerned on discharge.
However, for long term medications, patient will get medicines for use beyond one
month period from his/her parent polyclinic. For this, the patient should put in a
demand (beyond one month) with his Parent Polyclinic at the earliest.

18. Medicines prescribed on discharge from empanelled hospitals will be

issued from Polyclinic. However, if the same is not available, the following action
will be taken:-

(a) In Non Military Station OIC Polyclinic will arrange procurement

through SEMO and issue at the earliest.

(b) In Non Military Stations, the OIC Polyclinic can procure essential
medicine requirement for 07 days at a time from an empanelled chemist
and issue to the patient. Vitamins, minerals, nutritional supplements and
Tonics will NOT to be purchased from Empanelled Chemist unless
Therapeutically prescribed.

(c) In following cases patients can purchase medicines for one month
period after discharge from hospital/review if the same is „Not Available‟
from Polyclinic, and claim reimbursement of the same:-

(i) Post-operative cases of major Cardiac Surgery/Interventional

Cardiology.

(ii) Oncology.

(iii) Post-operative organ transplant cases.

(iv) Post-operative joint replacement cases.

(v) Post-operative major Neurosurgical/Neurology cases.

19. Equipment For Home Use. Specified medical equipment have been
authorised by the Govt to be issued to the ECHS members for home use, under
laid down conditions, which will be issued to the member when use of such
equipment at home is considered absolutely essential on medical grounds, on
recommendations of the Service Specialist and approval of Senior Advisor and /
or Consultant of the concerned specialty as applicable. The equipment will be
procured through a special demand by the OIC polyclinic. Consumables on the
equipment will be issued under arrangements of OIC Polyclinic. Cost of repair and
 62

annual maintenance contracts will be borne by the members themselves and will
not be reimbursable. Following equipment are authorised:-

(a) Hearing Aids.

(b) Artificial Limbs/Appliances.
(c) Glucometers and Nebulisers.
(d) CIPAP/BIPAP Machines.
(e) Spectacles (For post conventional cataract surgery cases only).

Referral Procedure

20. Treatment at Polyclinics. Polyclinics are basically points of treatment

and those patients needing additional diagnostic test/consultation/hospitalization
may be referred beyond the ECHS polyclinic. However, it will be done only when
all the facility available at a polyclinic are fully utilized.

21. Referral for General Service Facilities. Referral for general specialties
not available in polyclinic will be made to a service hospital having the requisite
facilities and located in the station subject to the load at the time of the referral.
However, for facilities not available in service hospitals and in non-military
stations, patients may be offered the choice of being referred to an Empanelled
facility/Govt Hospital/Institute of National Repute or to the nearest Service
Hospital having the facility.

22. Referral for Specialised Services. Referral for super specialties (like
cardiology, Oncology etc) can only be made by a Specialist at the polyclinic or on
the advice of concerned specialist of Service Hospital, subject to load, or
concerned specialist of Local Govt Hospital or concerned specialist of empanelled
hospital (in the absence of service hospital/facility).

23. Hospital Admission. All cases requiring hospital admissions will be

referred to Service Hospitals except under the following circumstances:-

(a) Non availability of beds in the concerned ward of service hospital, at

that point of time.
(b) Non availability of concerned Specialist facility in the service hospital
at that point of time.

(c) Non availability of machine time/laboratory time or referral on

account of diagnostic tests.

(d) In Non-Military stations.

(d) In Military Stations without Service Hospitals.

 63

Other Issues

24. Travelling Allowance. When referred to a medical facility in other station,

patients are entitled to return journey rail fare for intercity move for treatment. The
attendants, if authorized to move along with patient in the referral sheet, would
also be entitled for return rail fare in entitled class which will be same as entitled
immediately before retirement of the member. The reimbursement will be made
only on production of original rail/public bus tickets and will be limited to
authorized rail fare or actual expenditure, whichever is less. Travel by private
car/taxi or by civil air is not authorized.

25. Use of Ambulance. On recommendations of Medical Officer,

ambulance is available at the Polyclinics for transportation of patients from ECHS
Polyclinic to Service/Empanelled Hospital where referred. Such use will ordinarily
be restricted to within municipal limits of town/city except when the nearest
Service Hospital is outside the city/station limits. In such cases the ambulance
may be utilised provided the Medical Officer-in-charge considers that conveyance,
by other means will be detrimental to the health of the patient. The Officer-in-
Charge Polyclinic, in consultation with Medical Officer-in-Charge Polyclinic may
prioritize the use of Ambulance in a particular situation when more than one
patient needs to be evacuated/transferred. More than one patient may be
transferred at the same time as per the situation, keeping in mind the essentiality
of use and health of the patients.

26. Treatment of Senior Citizens. Patients above 75 years of age in case of

males and 70 years in case of females will be given priority for registration,
treatment and issue of medicines in the ECHS Polyclinics. They would be
attended out of turn.

27. ECHS Membership to Nepal Domiciled Gorkhas (NDG). The proposal to

extend the Ex-servicemen Contributory Health Scheme facilities to Nepal
Domiciled Ex-Servicemen has been approved by the Government. However, the
NDG veterans will have to visit polyclinics and empanelled hospitals located in
India to avail the Ex-servicemen Contributory Health Scheme benefits.

28. Tele Nos. of Regional Centers (RC) of ECHS. The list of regional
centers along with contact nos. are appended below:-

Regional Centres (RC) of ECHS Tele number

(a) RC Jammu 0191-2433139

(b) RC Chandimandir 0172-2589400
(c) RC Delhi Cantt 011-25682657
(d) RC Jaipur 0141-2249159
(e) RC Lucknow 0522-2482745
(f) RC Jabalpur 0761-2608177
 64

(g) RC Pune 020-26334257

(h) RC Patna 06115-225955
(j) RC Hyderabad 040-27797932
(k) RC Chennai 044-25673092
(l) RC Kochi 0484-2373394
(m) RC Kolkata 033-22318988
(n) RC Guwahati 0361-2642727

29. ECHS Helpline. In order to resolve the medical care related queries of its
36 Lakh members, spread across the country, an endeavor is being made to
resolve the medical care related queries, through a phone call. The ECHS runs a
24X7 helpline, which will provide simplified solutions to veterans on health care
issues. This will ensure that our veterans receive an optimum level of medical
service, with better connectivity to health scheme services, from any part of the
country. The helpline number 080-43004300 is being run by Health Care Info
Exchange, a total health care service provider.

30. List of Empanelled hospitals. The list of hospitals empanelled with

ECHS is available on ECHS site www.indianarmy.nic.in/arechs.htm. To get
ECHS site through Google type ECHS Army on Google. The first site opening will
be the official ECHS site.

Must Know Points

31. Certain important aspects of ECHS must be known to all defence

pensioners eligible for ECHS. These are as summarized below:-

(a) Smart Card will be issued on production of original receipt of

Application Form.

(b) Validity of receipt is for 60 days only. In case of non receipt of Smart
Card validity can be further extended by 15 days at Stn HQ and another 15
days by the concerned Regional Centre.

(c) The member and bonafide dependents should activate Smart Card
at any convenient Polyclinic on receipt by giving thumb impression at the
earliest.

(d) Any false declaration/misuse of benefits will entail cancellation of

membership. Central Organisation, ECHS will be the final authority for
cancellation of membership.

(e) Ensure safe custody of Smart Card. Do not put in a polythene

jacket.
 65

(f) To avail treatment facilities, the ECHS member or his/her dependent

is required to go to the ECHS Polyclinic with the Membership Card.

(g) In case further treatment or investigations are required, the

polyclinic doctors will refer the patient to Service Hospital/Lab/Dental Centre
or Empanelled civil facility.

(h) In Military Stations patients will be referred to Service Hospitals only.

Referrals to empanelled civil medical facilities will only be provided if Service
Hospitals do not have capacity to treat cases.

(j) A list of Empanelled Hospitals/Nursing Homes, Diagnostic Centers

and Dental Clinics/Centres will be available in the Polyclinics for the
guidance of patients. The patient will be required to report to the empanelled
facility of his choice along with his ECHS membership card and referral form
from ECHS Polyclinic. On completion of treatment/diagnostic procedure, he
is not required to make any payment. Bill will be cleared by ECHS.

(k) In an emergency situation, the ECHS member may not be able to

follow the normal referral procedure. He can report to the nearest/most
convenient Hospital, preferably a Service Hospital or an Empanelled
Hospital. In such cases, no payment is required to be made, and the bill of
Empanelled Hospital will be cleared by ECHS. In case a member goes to a
non-empanelled hospital he has to pay the bill and submit a claim for
reimbursement to the ECHS Polyclinic subsequently. In all cases of
emergency admissions, the nearest ECHS Polyclinic must be informed
within 48 hrs of admission. The reimbursement will be limited to approved
CGHS rates.

(l) In case of any incorrect entry in the Smart Card, it should be brought
to the notice of the issuing authority within 07 days from the receipt of Card.
If brought out later Card will not be replaced free of cost.

(m) In case of any complaint/difficulty in availing medical facilities at

ECHS Polyclinic, please liaise/refer your correspondence (brief and to the
point) to the Stn Cdr/Stn HQ in whose jurisdiction the polyclinic is
functioning.

(n) On receipt please activate your card as soon as possible at the

polyclinic.

Dos and Don’ts

32. Certain other important aspects of ECHS must also be known to all
Defence pensioners eligible for ECHS. These are as summarized below as DOs
and DON‟Ts:-
 66

(a) Carry your ECHS Smart card/ECHS registration slip and

identification documents when visiting ECHS clinics.

(b) Avail all diagnostic and therapeutic facilities in the policlinic.

(c) Exercise the option of being referred to empanelled facility of your

choice in your station but only when referral is advised by polyclinic.

(d) Carry your referral form and ECHS smart card/ ECHS registration
slip to the empanelled facility.

(e) Try to use a Service / Empanelled hospital in an emergency as then

no spot payment would be required to be made. Otherwise in a non
empanelled hospital, the payment would first have to be made for
emergency treatment at normal rates and subsequently claim gets
reduced refund as per ECHS contract rates.

(f) Inform your polyclinic within 48 hours when admitted directly to

empanelled/non empanelled hospital in an emergency.

(g) Allow some time to the polyclinic to procure super speciality drugs
prescribed for you, if not readily available.

(h) Do not insist on referral for facilities available in the polyclinic. It is

not authorised.

(j) Do not insist on a particular brand name of drug from polyclinic. You
may be issued with different brand but with same pharmacological
composition.

(k) Do not purchase drugs yourself and ask for reimbursement. It is not
authorised.

(k) Do not pay bills in empanelled hospitals. ECHS will clear your bills.

(l) Do not accept sub- standard treatment at empanelled hospitals.

Report to your polyclinic.
 67

CHAPTER-VIII

BRIEFING FOR SERVING OFFICERS WHO ARE PROCEEDING ON

SUPERANNUATION/PREMATURE RETIREMENT/INVALIDATION

Introduction

1. Every officer who is proceeding on superannuation or premature retirement

has a stake in understanding the system through which his Pension payment
order & other Non Effective (NE) benefits will come out. The officer must not only
complete his part of paperwork in time but also must monitor and ensure that the
paperwork required from the station/unit is also dispatched in time. In addition the
officers proceeding on retirement must ensure that they attend the final clearance
and briefing at Dte of PP&R Air HQ (RKP). Attending this briefing will not only
prove educative and beneficial but it will also help you in completing your paper
action correctly. This finally will result in timely release of your pension and other
retirement benefits by the office of Deputy Controller of Defence Accounts
(DCDA) Subroto Park.

2. This chapter contains explanation about the entire spectrum of pension

processing, role of audit in release of Pension and other NE benefits, role and
importance of various other agencies in pension processing and the common
mistakes which are made by officers proceeding on retirement. The chapter also
contains guidelines to avoid roadblocks which if not handled correctly can result in
avoidable delays in release of pension.

Pension & other Non Effective Benefits Due to an Officer & the Expected
Timeframes

3. The non effective benefits (including Pension) are as follows:-

(a) Commutation of Pension

(b) Gratuity
(c) Monthly pension
(d) Leave Encashment
(e) IRLA (Individual Running Ledger Account) balance
(f) Survival benefit AFGIS
(g) DSOP Balance

4. Commutation, Gratuity and Monthly pension will be released through a

pension payment order (PPO). The PPO is issued by the Pension Sanctioning
Authority of IAF i.e. office of DCDA, Subroto Park New Delhi after successful
completion of Audit. If there are no major objections the PPO is normally issued
 68

about a month before retirement for superannuation cases and within 5-6 months
after retirement for premature retirement cases. The commutation and gratuity
money can be claimed from the bank on the next day of retirement however the
first monthly pension can be claimed after one month of retirement.

5. Leave encashment is one of the attractive NE benefits. 90% of leave

encashment will be paid by AFCAO within about one month of retirement for
superannuation cases and 3-4 months for premature cases. The balance 10% of
LE along with the left over balance of IRLA balance (credit due to increase in DA
etc) will be paid within 3-4 months of the 90% payment. LE and IRLA balance will
be paid only after completion of successful audit by the office of DCDA, Subroto
Park New Delhi.

6. AFGIS will pay the survival element of insurance scheme with a postdated
check about a week before retirement. The check is valid from the next day of
retirement. AFGIS will make net payment after deducting its outstanding loans/
advances. However if an officer wants to continue with his loan after retirement he
must request AFGIS for the same and comply with their terms and conditions for
continuation of loan.

7. DSOP balance is paid through a postdated check valid from the next day of
retirement by the last unit for superannuation cases. For premature cases the
money will be paid by AFCAO after successful completion of audit. The money
will be paid by AFCAO directly into the bank account of the officer. The process
could take up to three months after premature retirement.

Note. For officers who are invalided out the time lines could be one to two
months extra in comparison to premature retirement cases. The actual time line
will largely depend on speedy completion of paper work by the officer and his unit
after his invalidation.

Sequence of Activity and Expected Time Lines

8. Dte of PO issues orders for superannuation one year before retirement.

With the issuance of this order a series of activities are triggered at the level of the
officer, his last unit &station, at AFCAO, AFGIS, IAFBA, Dte of PP&R, PO &
Medical directorates at Air HQ. Thus the action to process the case for Pension &
NE benefits starts one year before superannuation. However for premature
retirement this process of one year has been compressed into 5-6 months.
Accordingly an undertaking is taken from officers applying for premature
retirement that they will not represent for any NE benefit till 05 months after
retirement. Thus most of the activity related to premature retirement starts after
the actual retirement of the officers and issue of NE POR by the last unit. The
Sequence of activity and related timelines are as given below:-
 69

TIMELINES FOR ISSUE OF PENSION PAYMENT ORDER

ISSUE OF RETIREMENT ORDER

(BY DTE OF PO 12 MONTHS IN ADVANCE OF DOR

(D-11)
DESPATCH OF BLANK PENSION FORM
TO THE OFFICER/UNIT
SUBMIT DRAFT COS TO PO DTE

(D-8)
CONDUCT RMB AT UNIT

(D-7)
ISSUE OF CERTIFICATE OF SERVICE
(By Dte of PO on receipt of draft COS
By the officers)

(D-6/7)
SUBMISSION OF PENSION PAPERS & ECHS APPLICATION
(By Officers/Stn Adjt)

(D-5/6)
DESPATCH OF LPC-CUM-DATA SHEET TO AFCAO, PENSION PAPER TO JCDA (AF)
ECHS FORM TO CENTRAL ECHS ORGANISATION
(By DTE OF PP&R)

(D-4)
ISSUE OF 10 MONTH AVERAGE PAY CERTIFICATE
{By AFCAO (OPS – III)}

(D-1)
ISSUE OF PENSION PAYMENT ORDER
{By Dy CDA (AF) One Month Advance Of DOR}
 70

Timeline for Completing Important Activities Before retirement and

Common Mistakes in the Process

9. Issuance of Retirement Order by PO Dte. Normally this is always

done in time. However there is one case where issuance of a medical officer‟s
retirement order was missed out by the system and the officer chose to keep
quite. The mistake was eventually discovered and he retired with four months
additional service beyond his retirement age. There after his pension processing
got stuck in serious audit objections, he was asked to refund additional four
months of pay and allowances. His overstay was required to be regularized by the
Govt. The whole process took time and the pension was delayed by over two
years. Moral of the story, a mistake by the organization doesn‟t increase your
retirement age. If due for retirement and there is unusual delay in issue of
retirement orders, then you must draw the attention of relevant agency at
Command HQ/ Air HQ.

10. Dispatch of Blank Pension Forms & ECHS Forms from Dte of PP&R
Air HQ to Officer/Unit. Normally this is done automatically and should not be
an issue. However if there is undue delay due to any reason (transit loss/wrong
address etc), then a telephonic/written reminder can be sent to Dte of PP&R with
emphasis on address of current unit or address of care taking station, if on
course/deputation. For officers proceeding on premature separation from
service dispatch of blank pension papers and ECHS forms will be done after
issuance of release order by PO Dte. Different kinds of forms and photographs
are required to be submitted to different agencies, details of these forms are
placed at Appendix „F‟. A set of filled pension forms, as a sample, is enclosed as
Appendix „G‟. The blank pension forms are also available on IAF net and can be
down loaded as per requirement.

11. Submission of Draft Certificate of Service (COS) & Issue of COS by

PO Directorate. COS is the summary of your service records i.e. personal
particulars (S.no. name, DOB, Sub Rank etc) , date of commission & retirement ,
type of commission, qualifying service , date of marriage and details of family i.e
name of wife and children with date of birth. COS is required for audit of pension
claims and other NE benefits. A draft COS is to be sent by the officer to Dte of
PO. Based on this draft COS and service records, a COS is issued by PO Dte.
Audit will look for the details filled in your pension papers and compare it with
details in COS, Air force list and as available in IRLA during IRLA audit. Any
discrepancy will result in audit objection. Some of the common mistakes related to
draft/ actual COS are as follows:-

(a) Wrong Name of Self. There are cases where officers own name
could be written wrongly vis-à-vis its spelling or sequencing of various
words in the name. It is desirable that an officer checks his name as given
in Air Force list. Audit will compare COS, Air Force list and the pension
papers. Any discrepancy will result in audit objection.
 71

(b) Wrong Name or Wrong Date of Birth of Wife. There are a

large number of cases where retired officers are contacting Dte of PP&R
for change in name/date of birth of wife as a result of carelessness while
filling papers at the time of retirement. The wife will not get her family
pension unless what she claims to be her name is same as what is jointly
notified in the PPO. If there is difference in these two names, then the bank
will not release her family pension after death of husband. Many widows
undergo this frustrating experience because of mistake in spelling /
surname etc. Similarly additional pension after 80 years of age depends on
correct annotation of date of birth in the PPO.

(c) Wrong Name Or Date Of Birth of Children. Children could be

entitled to certain defence quota concessions in admission, employment
etc. Thus, what is written in draft certificate of service and actual COS
should be same as written in class X Board certificate. Any discrepancy
will deprive the child of defence quota. Similarly, in case of death of both
parents children are entitled to Family pension upto 25 years of age. They
could also be entitled for family pension beyond 25 years of age in future, if
they come in the category of unmarried /divorced /widowed daughter or a
handicapped child. This could get blocked by the bank if the name or date
of birth of the child is not correct in the COS or the pension papers.

(d) No Mention of Gallatary Awards. Gallantry awards carry

monthly monetary allowance through PPO. They also provide exemption
from income tax. The audit will annotate this monetary allowance in PPO
provided the gallantry award is mentioned by Dte of PO in COS. Therefore
officers in receipt of Gallantry awards must check the annotation of
Gallantry awards in their COS.

(e) No Mention of Gazette Notification Number. Every promotion of

an officer is approved by Govt through Gazette notification. The Gazette
notification number of last rank held must be mentioned in COS. Normally
this is done by Dte of PO automatically. However officers must check this
aspect in the COS issued by Dte of PO. If Gazette notification number is
not mentioned audit will not clear your pension and raise an objection on
the pension claim. This can delay your pension. If you don‟t find your
Gazette notification number mentioned in the COS, contact Dte of PO
immediately. In addition officers also must check the Air Force list. The
rank which is given in the current Air Force list is normally the rank for
which gazette notification is available. If you find that you are one rank
lower in the Air Force list then you must contact Dte of PO for clarification.

(f) Counting of Previous Service in Ranks Not Mentioned. There

are a large number of officers corresponding with Dte of PP&R that their
previous service in ranks has not been counted for calculating their
pension. There are a large number of BC officers/service commissioned
officers having previous service in ranks. They must check that their
previous service in ranks is reflected correctly in their COS. If past service
 72

is mentioned correctly in COS only then it will be possible for audit to

reflect it in pension calculation.

12. Conduct of RMB at Last Unit. This is a very important pre requisite for
timely release of pension. Regrettably its importance is least understood by the
officer or the last unit/station. It has to be understood that issue of PPO for an
officer by the office of DCDA Subroto park is the final outcome of two successful
audits. The first audit is initiated by Dte of PP&R and relates to the officers service
and personal details and involves audit of COS, Pension Papers and Bank
details. The second audit is a complete financial audit of IRLA and is initiated by
AFCAO. This audit results in issuance of Last Pay Certificate (LPC). Pension
flows out of last pay ie 50% of last pay as reflected in LPC. It is in this context
that the role of RMB and RME (for A1G1) is to be understood. Unless RMB/RME
is available along with load factor of life expectancy, the Office of DCDA will not
undertake any of these two audits. Thus a delay in RMB/RME means a delay in
commencement of basic audit leading to a delay in release of pension. Officers
must ensure that their RMB/RME is completed and dispatched to Command HQ
six to seven months before superannuation date. In case of premature
retirement, officers must do it at the earliest.

13. Timely Submission of Pension Papers & ECHS Papers. It is important

that filled pension papers are submitted to Dte of PP&R by D-7 i.e. seven months
before retirement and ECHS papers can be submitted upto D-5 i.e. five months
before retirement Officers proceeding on premature retirement should submit both
the papers (pension papers and ECHS application) at the earliest. Early
submission gives margins for rectification of any error by the officer. One of the
safest ways of ensuring correct filling up of pension papers and ECHS papers is
to take these filled documents to the final clearance briefing held at Dte of PP&R
Air HQ (RKP). Vetting of pension/ ECHS papers is a part of final clearance SOP
at Dte of PP&R. Face to face vetting of these papers at Dte of PP&R will help the
officer to understand deficiencies/errors in the papers and rectify the same at the
earliest.

Precautions Required While Filling up of Pension and ECHS Papers

14. Filling Up of Pension Papers. In order to ensure smooth passage of

pension papers in audit, officers must take following precautions:

(a) Officer should open a joint account with spouse positively in a

Nationalised Bank and submit a Bank Certificate duly signed by the
Manager of Pension Disbursing Bank containing complete address of its
Main/Link Branch along with Pension Papers (Specimen of a bank
certificate is forwarded along with pension papers to the Adjt in advance).

(b) Family particulars mentioned in pension papers, should tally with the
details forwarded in Draft Certificate of Service forwarded to Dte of PO.
Especially if surname has been added in wife‟s name it should be in both
the documents.
 73

(c) Percentage of amount to be commuted has been enhanced from

43% to 50% as per VI CPC and the same is to be written in the Declaration
Form and Application for Commutation.

(d) Address of Nominee is also to be written in Nomination Form.

Signature of Witness on nomination form is absolutely essential.

(e) Particulars of Spouse form should not be forwarded without

attestation of Adjt and without affixing unit seal.

(f) Joint photographs with spouse should be in civil dress and of

passport size (5x3 Cm) and it should be attested by Adjt on reverse with an
annotation “Joint Photograph of (Rank and Name of officer) and his spouse
(Name of spouse).”

(g) All forms should be in triplicate and ink signed (no photo copy of
pension papers is accepted by Dy CDA (AF).

15. Filling Up of ECHS Papers. In order to ensure smooth scrutiny of

ECHS papers in the ECHS Regional Centre Delhi, officers must take following
precautions:

(a) Affixing officer‟s photograph in civil dress. Since it is post retirement

identification requirement, the photograph should mandatorily in civil dress
with red background.

(b) Generally it is seen that the address filled in the ECHS form is too
long. It should be restricted to maximum 60 characters.

(c) Another common error is seen that Black/other colour ink is used
while filling ECHS application which is not acceptable. Only blue ink is to
be used while filling the ECHS Forms. Use of blue ink is a software
requirement for printing ECHS cards.

(d) However all the signatures in the ECHS application should be in

black ink only. Again it is a soft ware requirement.

(e) Demand Draft should be made in favour of “Regional Centre

(ECHS) Delhi Cantt” and payable at Delhi Cantt.

(f) A consolidated demand draft @ Rs 135/- per ECHS Card is to be

attached.

(g) Signature of the officer should not be left out in the signature column
of page 1 (below photograph & in two oval shapes) and page no. 4.
 74

(h) Dependent certificate from adjutant should be enclosed along with

application for ECHS Cards by the officer applying for ECHS Cards for
dependent parents. This certificate is mandatory.

(j) Disability Certificate issued by Competent Authority is to be attached

for the officers applying for ECHS Cards for disabled child. For a disabled
child the Smart Card is valid for life. For normal children ECHS smart card
is valid till 25 years of age for the son and till date of marriage for daughter.
However if both pick up employment before deadline they will become
ineligible.

(k) Affidavit submitted along with ECHS application is rejected due to

deficiencies. Affidavit is to be prepared as per the specimen given in ECHS
application. It must have the signature of two witnesses and is to be
attested by Notary Public/Magistrate.

(l) Non submission of receipt for documents page along with ECHS
application. The ECHS form has a separate page (along with space for self
and family photo) for certifying receipt of ECHS documents. This
certification is given by Directorate of PP&R (after annotating registration
number of ECHS membership) and sent back to the concerned officer.
This certificate will be accepted by MH/Polyclinics for medical treatment
through ECHS after retirement till Smart Card is received. It has to be
understood that after retirement without this receipt/ smart card medical
facility will not be provided.

(m) ECHS application is received in single copy. ECHS application is to

be forwarded in triplicate (One original + two photocopies of Page no. 1 to
4).

The importance of Attending Final Clearance Briefing at Dte of PP&R, Air

HQ (RKP)

16. Attending briefing on final clearance at Dte of PP&R is strongly

recommended for all officers proceeding on superannuation or premature
retirement. This briefing is compulsory up to rank of Gp Capt and is voluntary
basis for air officers up to the rank of AVM. This briefing not only focuses on the
procedure and release of Pension and non-effective benefits but also helps an
officer in preparing for his second innings i.e. life beyond the uniform. Following
aspects are covered in this briefing:

(a) Understanding the full implications of change over from uniform to

civil life.

(b) Understanding the procedure for release of Pension and other NE

benefits.
 75

(c) Understanding the importance of COS. RMB, DGN and Air Force
List for successful audit.

(d) Understanding the role of Dte of PO, AFCAO and Office of DCDA
Subroto Park in release of Pension and other NE benefits.

(e) Important tips on retirement: -

(i) Income tax provisions after retirement

(ii) Coping with stress and taking care of health
(iii) Understanding life cycle and the expected future changes
(iv) Money and Retirement
(v) Investment strategies after retirement
(vi) A talk by financial advisors on post retirement financial
planning

(f) Documents to be preserved after retirement

(g) Important land marks after retirement

(h) Legal issues linked with pension

(j) Conditions under which pension can be stopped /suspended

(k) Importance of becoming member of Air Force Association

(l) Understanding ECHS

(m) Vetting of filled Pension And ECHS papers

(n) Talk by an officer from AFCAO on IRLA Audit, leave encashment

and AFGIS loans, post retirement insurance cover and investment options
in AFGIS

17. This briefing has been found to be extremely beneficial and all who attend
the final clearance and briefing find it extremely useful and officers proceeding on
retirement must ensure to attend this briefing. It is conducted on the first Tuesday
and Wednesday of every month at Dte of PP&R and move on Temporary Duty is
authorised for this purpose.

How Does Bank Release Pension After Receipt of Pension Payment Order
(PPO)

18. Release of Pensionary Benefits by Banks. For all officers who are
proceeding on retirement, the office of DCDA Subroto Park will issue a PPO after
successful completion of Audit. The PPO in original will be addressed to the
 76

controlling branch (link branch) of the bank from where the officer has opted to
draw his pension. In addition to PPO, certain parts of pension paper linked with
identification of pensioner and his wife will also be sent to the bank. One copy
each of the PPO will also be dispatched by the office of DCDA to the individual
and Dte PP&R, Air HQ, for their records. The link branch/ Centralised Pension
Processing Cell (CPPC) will undertake the vetting and related documentation
formalities and intimate the end branch from where the pensioner has opted to
draw his /her pension. Thereafter, the end branch or pension paying branch will
identify the pensioner and complete certain procedural formalities like, submission
of life certificate, undertaking for refund in case of excess payment by bank etc.
Once these formalities are completed the end bank (pension paying bank) will be
ready to pay gratuity and commutation on the next day of retirement. The
monthly pension will be paid by pension paying bank after one month of
retirement. Generally there is a delay in completion of formalities between the link
branch and the pension paying branch of the bank. A bit of liaison by the retiring
officer can cut down this delay between both the branches of the bank. A sample
copy of PPO is placed at Appendix „H‟.

19. What Happens if PPO Sent by Office of DCDA is Lost in Transit. This
situation may happen when the pensioner is eagerly awaiting the release of his
pension. However while the office of DCDA confirms dispatch of PPO to link
branch and the concerned link branch of the bank reports non receipt of the
PPO. This is a typical situation of loss of PPO in transit. The PPOs are dispatched
under insured registered post therefore its loss is rare. However if the link branch
does not receive the PPO within one month of dispatch then it should be
presumed as lost in transit and action should be initiated to get a duplicate PPO
issued by the office of DCDA. The lost PPO has the potential of perpetuating a
bank fraud therefore a „loss certificate‟ from link branch is a must for release of
duplicate PPO by the office of DCDA. The loss certificate is in a particular format
about which the banks are aware of. If in doubt Dte of PPR can be asked for this
format on e-mail. The loss certificate issued by the Manager of link bank basically
states that an annotation of the loss of PPO has been made in the bank records
and if the PPO is found again and produced to the bank; no payment on it will be
released by the bank. This loss certificate in original should be sent to the office of
DCDA. Another copy of original loss certificate should also be sent to Dte of PPR
as a back up and for undertaking liaison with DCDA for early issuance of
duplicate PPO. DCDA will only issue a duplicate PPO for use by the link bank.
DCDA will not issue duplicate PPO to the officer in case there is sloss of
individual‟s copy of PPO.

Procedure for payment of Leave Encashment, IRLA Balance, DSOP and

Survival Benefit of AFGIS insurance

20. The procedure for payment of other non-effective benefits as mentioned

above is primarily AFCAO driven. A compressed brief on the subject, in
presentation format, is enclosed as Appendix „J‟.
 77

Useful Information for Officers Proceeding on Retirement

21. Requirement of a New CSD Smart Card After Retirement. The

CSD canteen Smart Card you possess while in service will cease to work from the
day you retire. You will require a new Smart Card as applicable for retired officers.
For this contact your nearest CSD canteen and take advice on the procedures for
a new card after retirement.

22. No Advance Payment of Transfer Grant After Retirement. While in

service, advance is given to the officer which is settled later. But after retirement,
no advance payment will be made. An officer proceeding on retirement can opt to
move to his hometown or selected place of residence. All his claims including
baggage allowance will be pre audited and he will receive payment later. A
briefing can be taken on this matter from SAO of last unit.

23. Membership of Air Force Association (AFA). The rules of pension

keeps changing and improving with time . In order to be current on the rule
position and benefit flowing from new rules, it is desirable that officers take
membership of AFA at the time of retirement.

24. Agencies to be Contacted for Various Queries. For all retired

officers Dte of PPR is the single point contact for guidance and advice. Dte of
PPR will advise the pensioners regarding the directorate / office to be contacted
for solving their query/problem.

(a) On matters of all kinds of Pension, Gratuity,

Commutation & issues related with Bank - Dte of PP&R, Air HQ

(b) On matters of Leave encashment, IRLA Balance,

DSOP & Any claim of wrong Pay Fixation/LPC - AFCAO

(c) On matters of survival benefit &PRIC - AFGIS

(d) On matters of any change in last rank, promotion

Due but not given, change of name/DOB of wife,
child, DGN of last rank, any change in COS - Dte of PO, Air HQ

(e) On matters of medical board, RMB/RME

Recommendations - DGMS (Air), Air HQ

(f) On all matters related with welfare - DPS, Air HQ

Benefits From Kendriya Sainik Board, Rajya Sainik Board & Zila Sainik
Board.

25. Welfare of the ex-Servicemen (ESM) and their dependents is the joint
responsibility of the Centre and the States/UTs. Like the Kendriya Sainik Board at
the Centre, the Rajya and Zila Sainik Boards at the State and District level
 78

respectively are advisory bodies in respect of policy formulation with regard to

resettlement and welfare of their ex-Servicemen/families. To assist the State
Governments, there are 32 Rajya Sainik Boards in the country. The welfare
activities of Zila Sainik Boards will marginally differ from State to State. For full
information on benefits extended to ESM by various Rajya/Zila sainik boards
please visit DGR site of www.dgrindia.com. Registration in the nearest Zila
Sainik Board is a must for becoming eligible for various state sponsored welfare
schemes. Normally the benefits for ESM at State level will relate to following
issues: -

(a) Amendment to Rent Control Act

(b) Cash Grants to Gallantry and Non-Gallantry Award Winners

(c) Ex Gratia Grant to War-Widows NoK and to Disabled Soldiers

(d) Exemption of House Tax for Self-Occupation

(e) Financial Assistance to World War II Veterans

(f) Re-Employment

(g) Relaxation in Physical Efficiency Test

(h) Removal of Domiciliary Reservations at Professional Colleges

(i) Reservation of Seats Professional Colleges

(k) Self Employment

(l) War Jangi Allowance

Note. The above information is also available on official website of

IAF i.e. www.indianairforce.nic.in. On opening of this site navigate to
Ex- Air warrior on top right corner for required information.

Employment Opportunities, Information on Placement Cell and Director

General Resettlement(DGR)

27. AOP site on IAF net gives wide publicity to Govt jobs, deputation etc for
officers who are seeking retirement. It also has information on placement cell
which can give information on job opportunities in private sector. In addition
Director General Re settlement (DGR) has a lot of self-employment schemes and
training programs which can help in getting employment. Details of what DGR has
to offer can be obtained from website of DGR i.e. www.dgrindia.com
 79

CHAPTER-IX

ADVICE FOR OFFICERS PROCEEDING ON RETIREMENT AND ALSO FOR

RETIRED OFFICERS & WIDOWS

Introduction

1. In IAF majority of officers will retire as compared to their civilian counter

parts. Officers proceeding on premature retirement with pension, could be
anywhere between the age of 42 - 54 years. While in service we do get used to a
certain military way of life and the secure environment provided by Air Force
camp. Thus besides understanding pension related matters, the first challenge
after retirement is to prepare oneself for life as a civilian.

2. Inflation is your enemy number one after retirement. The average inflation
rate in last 25 years in India is 7.6%. Basically it means that things will be costly
by 06 times in next 25 years i.e. for the purchasing power of a Rs 40000/- pension
today, a person will require Rs 2.4 lac after 25 years. Considering the improved
medical facilities you could live much longer than one thinks i.e. into late 80s, may
be longer. Thus it makes sense to think beyond fixed deposits, with a little bit of
investment (20-25%) into equity/real estate.

Advice on Investments and Finances

3. The average amount an officer gets after retirement (gratuity, commutation,

leave encashment & AFGIS survival benefit) could vary between Rs. 25 to 40 lacs
depending on length of service and the last rank held. Considering the post
retirement liabilities, the average amount available for investment for an officer
could vary between Rs. 20-35 lacs. Optimisation of retiring benefits involves
planning one‟s investment in a manner which involves capital preservation,
protection against erosion of capital due to inflation, steady flow of income
throughout one‟s life, provision for spouse after unfortunate demise and finally
leaving a legacy.

4. It is therefore recommended that one should plan the investment on the

basis of age, need and risk appetite. While planning for maximum capital
preservation one should also ensure some growth portfolio to beat inflation. As far
as possible the investments must be tax efficient, should also have liquidity and
flexibility. The various investment avenues available to an officer are as follows: -

(a) Debt Schemes.

(i) Post Office fixed deposit schemes

(ii) Fixed deposits in a Bank
(iii) Fixed deposit in AFGIS
 80

(iv) Fixed deposit in a company

(v) Certain type of mutual funds
(vi) Pension plans

(b) Equity Schemes.

(i) Shares and ELSS

(ii) Mutual funds
(iii) Guaranteed plans
(iv) ULIPS

(c) Investment in Gold

(d) Investment in property

5. The information given above can also be categorised in a different

investment perspective:

(a) Capital Preservation

(i) Public Provident Fund (PPF)

(ii) Senior citizen Saving Scheme (SCSS)
(iii) Post office Monthly income Scheme (POMIS)
(iv) Fixed deposit and company deposit
(v) Guaranteed Plans

(b) Growth

(i) Mutual Funds

(ii) ULIP‟s And Pension Plans
(iii) Real Estate

(c) Tax Effeciency

(i) PPF
(ii) ULIPs
(iii) Insurance Plans
 81

6. The general advice for people proceeding on retirement is to play it safe

and go for fixed deposits/ postal deposits/ deposits with AFGIS etc. This is a valid
advice because unlike a young individual, the risk taking ability of a person who
has retired is quite less. Retired personnel depend on their funds for sustenance
therefore it makes sense for them to play safe. However due to long life
expectancy the risk of erosion of real purchasing power, of the principle amount
invested in fixed deposits, is quite high. The taxation of the interest on fixed
deposits reduces the actual interest rate earned on it. Thus many financial
advisors advise that in order to protect the purchasing power of principle amount
in the long run, a window of risk should be opened for investment in equities/ real
estate. This window of risk should however be well planned as per your age and
in no case it should exceed 20-25% of your total investments. In addition if you
have crossed 72 years of age, it makes a lot of sense for having Zero risk
tolerance i.e. only fixed deposits with no exposure to equity.

7. Investments in shares / equity is recommended to be done only through

the Mutual Fund route.

8. Some experts suggest that one alternate and simple method of investment
into equities is to go for Systematic investment plan (SIP). This is a
monthly/quarterly way of investing into mutual funds through the bank. It has a lot
of advantages due to law of averages. The expected return from mutual funds
through SIP could vary from 10-19% in a 3-5 year period. One must consult a
reputed financial advisor to decide on the mutual funds in which money should be
invested through SIP route.

9. A chart indicating various investment options and expected post taxation

returns is as tabulated: -
 82

10. There are many experts who feel that having a second house is a good
investment and a protection against inflation. If the house is purchased in a good
town/city/metro where the real estate prices have a clear potential for an increase
However the kind of money/ loan which is required for buying a house may not be
available with everyone who is retiring. Therefore this is an option for those who
have surplus money at the time of retirement. In addition property does not have
instant liquidity and the full rent potential / property prices could take 5-10 years to
mature. Hence this factor should be kept in mind while investing in property.

Important Documents to be Preserved After Retirement.

11. We keep getting requests from pensioners to send a copy of the PPO in
which the name of spouse has been jointly notified. Many times the banks
misplace it/ lose it in floods/fire etc and demand the same for releasing family
pension. In one‟s life time, a special folder should be made which should have
copies of all important documents related to pension and other issues. It should
contain all PPOs including Corr PPOs, certificate of service, post retirement
insurance cover papers of AFGIS and gazette notification of gallantry awards.
This folder can also have information on all the investments, bank accounts, fixed
deposits, debit and credit cards with pin code, ownership papers of house, car,
other property and finally the will. All this information will be handy for the spouse
and will help her to manage things in a better manner after her husband‟s death.

Procedure for Change in Certificate of Service /PPO

12. Certificate of Service (CoS) is issued by the Dte of PO, Air HQ. It reflects
the official records in terms of name of wife, children, their date of birth etc of the
officer as on date of retirement. This information has relevance to family pension
of wife, children below 25 years and lifelong pension for handicapped child,
unmarried/divorced/widowed daughter.

13. Request for change of CoS pertaining to occurrences while in service due
to typographical errors or modification, would be affected by Dte of PO through
issue of appropriate amendments after verifying the relevant document available
with Dte of PO. Dte of PO will also issue a CoS on revocation of Suspension
Order for an officer after favourable Court judgement.

14. However, in case of retired / NE officers involving occurrences for the

period after his date of non-effectiveness which affects his pension / family
pension, the non effective officer / NOK should approach Dte of PP&R which
would verify the supporting documents and issue confirmation to DCDA that a
change has been affected in the officer‟s personal pension file to enable issue of
corrigendum PPO by DCDA. The following occurrences (after retirement) can
result in a situation where Dte of PP&R will be required to issue confirmation to
DCDA: -

(a) Endorsement of particulars of spouse (Name, Date of Birth etc) on

marriage / re-marriage after retirement.
 83

(b) Endorsement of particulars of children born/adopted after

retirement.

(c) Other occurrences affected after retirement, requiring furnishing of

certificate / confirmation to DCDA.

15. Dte of PP&R would take up cases as mentioned at para 14 above with
DCDA for issuance of Corrigendum to PPO by them. The officer / his wife / NOK
could contact Dte of PP&R for advise on matters mentioned at paras 12, 13 & 14.

Important Landmarks After retirement

16. New Pay Commission. The first important landmarks after retirement is
a new pay commission. The present trend is that those who have retired under
the provisions of a previous pay commission, their revised pension after a new
pay commission will be fixed by the banks. The past experiences indicate that the
bank staff generally have a poor understanding of defence pensions and tend to
fix lower pensions than the entitlement. Thus a pensioner should be alert and
should find out his correct pension entitlement after every Pay Commission. If in
any kind of doubt, he/she should contact Dte of PP&R for advice and help.

17. Restoration of Commuted Value of Pension. This is the second

important land mark after retirement. This provision means that whatever amount
was reduced from Pension due to commutation, the same amount will now get
added to your pension. Since Dearness Relief (DR) is always on full pension, the
restoration of commuted value of pension doesn‟t result in any increase in DR.
This restoration is not after 15 years of retirement but after 15 years of receiving
commutation money. Those pensioners whose pension is of a new pay
commission and who have received commutation amount in two/three
installments (as per old/new pay commission rates) will have commuted value
restored after 15 years of receiving each individual installment. The PPO
authorises restoration of commuted value of pension after 15 years, no external
sanction is required. It is desirable to put an application to bank 1-2 months before
restoration of commuted pension is due. Normally restoration of commuted value
of pension is carried as a routine by the bank. However in case of any problems
Dte of PP&R should be contacted for advice and help.

18. Additional Pension After 80 Years Age. This is the third important
land mark after retirement. Additional pension is authorized wef 01-01-06 for the
benefit of 80 years and above pensioners/ Family pensioners. This additional
pension is over and above the normal pension and is also applicable to SFP, LFP,
War injury pension and Disability pension. DR on this additional pension is
entitled. This additional pension will be paid by PDA (bank, treasury etc) from the
same month in which pensioner has completed the required age of 80 years or
above. The rates for this additional pension are additional 20% of basic pension
for 80 years of age, 10% increase of basic pension with every five years (i.e. 30%
for 85 years, 40% for 90 years and 50% for 95 years) however once a pensioner
completes 100 years, the additional pension will be revised to 100 %. It is
desirable to put an application to bank two months before additional pension is
 84

due. Normally restoration of additional pension is carried out as a routine by the

banks, however in case of any problem with the bank, Dte of PP&R should be
contacted for advice and help.

Beneficial/ New Provisions of Pension.

19. Detailed provisions of Retiring pension, Invalid pension, Disability pension,

Family Pension, Dependent Pension (for Parents of bachelor officers), Ex gratia
for Flt Cadets and additional pension is given in the previous chapter. The same
can be referred to detailed information.

Fixed Medical Allowance in Lieu of ECHS Membership for Pre-2003 Retirees.

20. Fixed Medical Allowance. Ex-Servicemen Contributory Health Scheme

(ECHS) is compulsory for those who retired/became family pensioners on or after
01 April 2003. Such persons are not entitled to Fixed Medical Allowance. For
any reason if such persons (particularly Family pensioners) have not yet become
members of ECHS, they can contact their nearest military station/ECHS regional
centre and become an ECHS member. However pre-01 April 2003 retirees/family
pensioners had an option to opt for ECHS or remain out of it. Those pensioners
who opted to remain out of ECHS are entitled for a fixed medical allowance per
month. Earlier this amount was Rs 100/- pm. Now w.e.f. 01-09-2008 it has been
increased to Rs 300/-pm. Such retirees still have the option to become ECHS
members after completing certain formalities. They can contact nearest ECHS
Regional Centre for the same. They can also get relevant information on ECHS
website. ECHS official website is www.indianarmy.nic.in/arechs.htm. Alternatively
to reach ECHS website type “ECHS army” on Google or any other search engine
and the first site listed there will normally be the official website of ECHS.

21. Advise to Pre- Apr 2003 Pensioners about Joining ECHS. A large
number of pre-2006 pensioners who had the option to choose between joining
ECHS or drawing a Fixed Medical Allowance per month opted for Fixed Medical
Allowance. Many of them now feel that it was a wrong decision and want to join
ECHS. However, they are not clear about the rates and the procedure of joining
ECHS. The medical expenses are bound to increase with advancement in age,
therefore, it makes a lot of sense to join ECHS and forgo the Fixed Medical
Allowance. Pre-Apr 2003 pensioners who wish to join ECHS, should contact
ECHS Regional Centre / Military Base for advice. In addition they can go on
ECHS official Website i.e. www.indianarmy.nic.in/arechs.htm. The revised rate of
subscription for pre-Apr 2003 pensioners is as follows: -

(a) ESM who Retired prior to 01 Jan 1996. Those pensioners who
wish to join the ECHS do not have to pay any subscription as per the
prevailing GoI Orders.

(b) ESM who Retired from 01 Jan 1996 to 31 Mar 2004. Though the
scheme was made compulsory wef 01 Apr 2003, the money from PPO was
deducted from 01 Apr 2004. Those pensioners who have retired between
 85

01 Jan 1996 to 31 Mar 2004 and now want to take ECHS membership (on
or after 01 Jun 2009) will have to pay the revised rates of subscription
effective from 01 Jun 2009 i.e.

Grade Pay corresponding to last rank Contribution (in rupees)

Rs. 1800/-, Rs. 1900/-, Rs. 2000/-, Rs. : 15,000/-
2400/-, and Rs. 2800/-
Rs. 4200/- : 27,000/-
Rs. 4600/-, Rs. 4800/-, Rs. 5400/-, and Rs. : 39,000/-
6600/-
Rs. 7600/- and above (Sqn Ldr & above) : 60,000/-

Income Tax Provisions on Pension

22. Clarification on exemption / taxability of pension amount is as follows: -

(a) Amount Exempted From Income Tax. Following are exempted

from income tax:-

(i) Commutation amount

(ii) Gratuity
(iii) Leave encashment
(iv) Provident Fund
(v) Complete monthly pension amount is exempt from income
tax only for those pensioners who are in receipt of Disability element
of pension, Gallantry awards and LFP for death in notified
operations.

(b) Amount not Exempted From Income Tax.

(i) The monthly pension and Family pension (except as stated

above) is not exempt from income tax.

(ii) In addition the interest earned on payments given as para 36

(a) (i) to (iv) above is not exempt from income tax.

Procedure for Complaint Against Your Bank

23. Pensioners have to deal with banks on all financial issues related to
pension i.e. payment of correct pension, calculation of DR and arrears correctly,
timely release of family pension etc. Thus there can be occasions for deficiency in
banking service and the consequent complaints. In many cases, when local
liaison with bank fails, the pensioners bring their complaints to the knowledge of
service HQ/Record Offices who in turn issue relevant advice to the concerned
bank. However, pensioners can also utilize the complaint channels of a bank to
 86

lodge a complaint directly against their local bank. The procedure for lodging such
complaints is as given below:-

(a) Against State Bank of India. SBI is the largest public sector bank
in India. It is holding about 40% of pension accounts of IAF personnel. It
has recently appointed Defence Banking Advisors (DBA) across the
country on a Zonal basis. The DBAs are retired Defence officers who
besides other things are looking into complaints of Defence pensioners. To
resolve a complaint against a branch of SBI following four methods can be
adopted:-

(i) Online Redressal of Grievances. Online complaints for the

issues pertaining to State Bank of India can be lodged on its official
website i.e. www.sbi.co.in by further selecting the option
Complaints> Defence>Air Force / Army / Navy. Alternatively, Air
Force pensioners /account holders of SBI may lodge their
complaints directly at www.dspairforce.customers@sbi.co.in. Army
and Navy may do it at www.dsparmy.customers@sbi.co.in and
www.dspnavy.customers@sbi.co.in respectively.

(ii) Redressal Through DBA. In case the issues still remains

unresolved after online complaints as mentioned above then the
Defence Banking Advisors (DBA) of SBI, who are specialists on
Defence pensions may be approached at
www.dba.airforce@sbi.co.in by Air Force pensioners and
www.dbaarmy@sbi.co.in by other services pensioners (there is no
separate DBA for Navy).

(iii) Complaints Through SMS. SBI has recently launched

an SMS service for redressal of grievances/complaints of its
customers. To lodge a complaint through SMS one has to type
„UNHAPPY‟ in its message box and send it to 8008202020 which is
a toll free number. Within 48 hours, an official from your nearest
SBI branch will establish contact to know about the problem and will
refer the case to appropriate agency for necessary action.

(iv) Complaints Through Call Centre. SBI has started its 24 x 7

call Centre to help its customers. Apart from getting information,
option to lodge complaint on pensionery matters is also possible
through these call centres. The following toll free numbers can be
dialled from Landline or mobile phone:-

(aa) 180112211 (from landline)

(ab) 08026599990 (from mobile)
(ac) 18004253800 (from landline and mobile)
 87

(v) Against Other Public Sector Banks. All public sector

banks have their inbuilt systems for redressal of banking complaints.
All public sector banks in their official websites have specific
provisions for complaints. Thus following provisions can be used
for all other public sector banks to lodge complaints:-

(aa) Online Complaints. All the public sector banks have

their own official websites, information on which can be
sought from local branch. Alternatively, the sites can be
found through any of the search engines like Google, Yahoo
etc. These official sites have option for lodging one‟s banking
complaints.

(ab) RBI, Ombudsman Scheme-2006. In order to find the

resolution of banking related complaints, RBI has started a
Banking Ombudsman scheme, wherein a person is appointed
by RBI to redress the customers‟ complaints. The Banking
Ombudsman appointed by RBI is a quasi-judicial authority.
The aggrieved person is required to file his/her complaint on
a plain paper to any of the 15 Banking Ombudsmen
appointed by RBI. However, before lodging complaint with
Banking Ombudsman the complainant should have lodged a
written complaint with the concerned bank. Evidence to this
effect should be given to the Banking Ombudsman. The
address(es) of such ombudsmen is available at official
website of RBI. Online complaints can be filed at
www.bankingobmudsman.rbi.org.in. Pensioners can file
complaints related to non-receipt/delay of their pension
related dues.

Extracts of Latest Pamphlet ‘Check Your Pension Entitlement’

24. There are a lot of issues which bothers a retired person. The most
important of them is „am I getting my correct pension entitlement‟. Dte of PP&R
issues advisory pamphlets on this matter which also includes latest updates and
the beneficiary provisions of the pension rules. The latest pamphlet is updated
upto 16 August 2011 and can be viewed on IAF official website
www.indianairforce.nic.in. Some extracts of this pamphlet „Check your Pension
Entitlement‟ which can help one know the correct pension entitlement are
reproduced in subsequent paragraphs.

25. We all believe in the correct system and expect that justice will be done.
However presumption that the bank is paying the correct pension, may not be
correct. Experience indicates that Banks are frequently doing the mistake of
paying lower rates of pension vis a vis authorisation to many pensioners due to
poor understanding of defence pension provisions by their staff. Therefore it is a
must for every pensioner to know his/her correct entitlement of pension. The
 88

pensioners, who have retired on or after 01-01-06, generally do not have any
problem in getting their correct pension. The CDAs in their case have issued
Pension Payment Order (PPO) as per the new provisions of VI CPC. For these
pensioners the banks have no option, but to pay the pension as specified by the
CDA in the PPO. However, the story is different for pre 01-01-06 retirees.

26. Pre-2006 Pensioners. Considering the large volume of pre-2006

pensioners (25 lacs Appx), the CDAs have expressed their inability to issue a
revised PPO as per VI CPC entitlement. The Govt has therefore issued orders to
Pension Disbursing Agencies (Banks, Treasury Offices etc) to calculate the
revised pension (as per VI CPC) and pay the same to the pre-2006 pensioners
directly. Govt has issued instructions to banks (with necessary reference tables)
for calculating and releasing the revised pension. Efforts are on at the highest
level to ensure that revised PPOs are issued for pre-2006 pensioners also, by the
CDAs in near future. However it is linked to digitalisation of past records and data
capture of pre-2006 pensioners on a large scale by CGDA and could take some
time. Therefore as on date, it is only banks which will decide the post VI CPC
revision of pension, for the pre-2006 pensioners.

27. Calculation of Correct Pension Entitlement (Pre-2006 Pensioners).

The revised pension for pre-2006 pensioners is required to be fixed by the banks
by calculating it through two specified methods. Out of the two methods, the
revised pension is to be fixed as per the method which is more beneficial to the
pensioner. The two methods of pension calculation are explained below:-

(a) Consolidation Method. In this method, the pension has been

consolidated by adding together the following:

(i) The Existing Pension / Family Pension.

(ii) Dearness Pension.

(iii) Dearness Relief @ 24% on (i) & (ii) above.

(iv) Fitment weightage @ 40% on (i) above.

Note. The thumb rule for calculating revised pension under the
consolidated method is to multiply the existing basic pension by a factor of
2.26. For those who retired on or after 01 Apr 04 and before 01 Jan 06,
their basic Pension as reflected in PPO is inclusive of dearness pay (DP).
Such pensioners have to remove the DP and go by the basic pension for
correct calculation. There is a formula to do it. For example if the basic
pension inclusive of DP is Rs. 11325/-, then the basic pension will
be11325/1.5 = 7,550/-. Thumb rule for calculating revised pension
(consolidation method) will be to multiply the existing basic pension of Rs
7550/- by a factor of 2.26. This method of calculation is generally as per
Annexure I of relevant Govt letter.
 89

(b) Modified Parity Method. The pension under modified parity has
been revised by taking fifty percent of the minimum of the pay in pay band
plus the grade pay and the MSP (+ Gp X pay for other ranks, as
applicable) introduced from 01-01-06 (VI CPC) corresponding to pre
revised scales from which the pensioner had retired/ was discharged.
However, pension calculated under modified parity has been reduced on
pro-rata basis, wherever the full qualifying service of 33 years, has not
been rendered by the pre -2006 pensioner. A table-showing pension under
this method is given in the subsequent page. This calculation is as per
Annexure II for officers and Annexure III for other ranks.

Note.

1. After calculating pension by both methods and ascertaining the most

beneficial pension, the commuted amount should be deducted to arrive at
the correct take home pension. Monthly DR is always on full pension
entitlement.
2. All Govt letters on pension provisions are followed by a circular from
PCDA(P) Allahabad. The circular amplifies the implementation procedure
of a Govt order. Banks will release payment to pensioners only after
issuance of a circular by PCDA(P) Allahabad. These circulars are available
on PCDA (P) Allahabad website.
3. The detailed Govt letters on pension are primarily available on
PCDA (P), Allahabad website www.pcdapension.nic.in. In addition other
websites which will have similar information are www.cgda.nic.in,
www.mod.nic.in and IAF website www.indianairforce.nic.in.
28. Complaint Against Banks. It is a common complaint by pre 01-01-
06 pensioners that banks are not revising their pensions correctly. They are also
complaining that banks are not issuing Annexure IV despite clear Govt orders for
its issuance. Annexure IV reflects the pension fixation methodology by banks. It
should have calculations by both methods i.e. consolidation and modified parity.
The larger experience indicates that banks are inclined to revise pension as per
consolidation method only. This method is beneficial for only 10-15% of defence
pensioners. For the rest of defence pensioners who are in majority, modified
Parity method is more beneficial. Thus the first challenge for a pensioner is to find
out his revised pension as per the most beneficial method. This pamphlet will help
him/her in finding out the correct pension after VI CPC.

29. Correcting a Wrong Pension. As explained above, calculating pension

as per consolidated method (thumb rule) should be extremely easy. Practically
the thumb rule gives almost 100% accurate input. For modified parity method
calculation, the table given in the next page can be referred. Both the calculations
must be checked for arriving at the most beneficial pension. In case the pension
of a pre -2006 pensioner has not been revised correctly, the pensioner should
approach the bank for necessary corrections. If the problem is not resolved by the
bank in a reasonable time (3-4 weeks), then this office must be contacted by
Officers. Our address is Dte of PP&R, Air HQ, West Block-VI, RK Puram, New
 90

Delhi 110066). This office can also be contacted through e-mail

(pprmail@indiatimes.com) and direct civil No-011-26104394.

Note.

1. The modified parity table in the next page covers only pre-2006
pensioners.

2. Public Sector absorbees who had opted for 100% commutation of

pension will require a fresh PPO and this modified table do not indicate
their pension.

3. Disability pensioners who have more than 60% disability should not
get less than 60% of their last reckonable emoluments after adding service
& disability elements.. For such pensioners the table in the next page may
not indicate the correct rates. Such pensioners would require a fresh PPO.

4. The Govt has not yet recommended modified parity rate for
enhanced rate of family pension. The same is to be calculated as per
consolidated method. The issue has been taken up with the Govt for
clarification.

5. The modified parity rates of disability element of pension, war injury

element of pension and war injury pension on invalidation has also been
provided.
 91

RETIRING PENSION / FAMILY PENSION /DISABILITY PENSION -PRE-2006

(TABLE 1 : RETIRING PENSION AS PER MODIFIED PARITY)

AOC-in-C/
Qualifying

DGAFMS
Air Cmde

VCAS/
(TS)/ Gp
Capt (S)
Gp Capt

Air Mshl
Service

Sqn Ldr

Wg Cdr
WgCdr
Fg Offr

Flt Lt

AVM

CAS
(TS)

(S)
10 7773 7975 7975 11682 13240 13420 13420 13420 14379
10.5 7978 8185 8185 12072 13629 13815 13815 13815 14932
11 8182 8394 8394 12461 14019 14210 14210 14210 15485
11.5 8387 8604 8604 12850 14408 14604 14604 14604 16038
12 8591 8814 8814 13240 14797 14999 14999 14999 16591
12.5 8796 9024 9024 13629 15187 15394 15394 15394 17144
13 9000 9234 9234 14019 15578 15788 15788 15788 17697
13.5 9205 9444 9444 14408 15988 16183 16183 16183 18250
14 9410 9654 9654 14797 16355 16578 16578 16578 18804
14.5 9614 9863 9863 15187 16744 16972 16972 16972 19357
15 9819 10073 10073 15576 17134 17367 17367 17367 19910
15.5 10023 10283 10283 15966 17523 17762 17762 17762 20463
16 10228 10493 10493 16355 17913 18157 18157 18157 21016
16.5 10432 10703 10703 16744 18302 18551 18551 15778 21569
17 10637 10913 10913 17134 18691 18946 18946 18946 22122
17.5 10841 11122 11122 17523 19081 19341 19341 19341 22675
18 11046 11332 11332 17913 19470 19735 19735 19735 23228
18.5 11250 11542 11542 18302 19860 20130 20130 20130 23781
19 11455 11752 11752 18691 20249 20525 20525 20525 24334
19.5 11660 11962 11962 19081 20638 20919 20919 20919 24887
20 11864 12172 12172 19470 21028 21314 21314 21314 25440
20.5 12069 12382 12382 19860 21417 21709 21709 21709 25993
21 12273 12591 12591 20249 21807 22104 22104 22104 26546
21.5 12478 12801 12801 20638 22196 22498 22498 22498 27099
22 12682 13011 13011 21028 22585 22890 22890 22890 27652
22.5 12887 13221 13221 21417 22975 23288 23288 23288 28205
23 13091 13431 13431 21807 23384 23682 23682 23682 28758
23.5 13296 13641 13641 22198 23754 24077 24077 24077 29311
24 13500 13850 13850 22585 24143 24472 24472 24472 29864
24.5 13500 13850 13887 22975 24532 24866 24866 24866 30417
25 13500 13850 14100 23364 24922 25261 25261 25261 30970
25.5 13500 13850 14100 23754 25311 25656 25656 25656 31523
26 13500 13850 14100 24143 25700 26050 26050 26050 32076
26.5 13500 13850 14100 24532 25700 26050 26050 26050 32629
27 13500 13850 14100 24922 25700 26050 26050 26050 33182
27.5 13500 13850 14100 25311 25700 26050 26050 26050 33735
28 13500 13850 14100 25700 25700 26050 26150 26150 34288
28.5 13500 13850 14100 25700 25700 26050 26150 26150 34841
29 13500 13850 14100 25700 25700 26050 26150 26150 35394
29.5 13500 13850 14100 25700 25700 26050 26150 26296 35947
30 & 13500 13850 14100 25700 25700 26050 26150 26700 36500 40000 45000
above
 92

TABLE 2 : FAMILY PENSION

VCAS/ AOC-in-
Gp Capt (s)
PENSION

C/ DGAFMS
Gp Capt

Air Cmde

Air Mshl
Sqn Ldr

Wg Cdr

Wg Cdr

(TS)/
TYPE

Fg Offr

Flt Lt

AVM

CAS
(TS)

(S)
OFP 8100 8310 8460 15420 15420 15630 15690 16020 21900 24000 27000

SFP 16200 16620 16920 30840 30840 31260 31380 32040 43800 48000 54000

LFP 27000 27700 28200 51400 51400 52100 52300 53400 73000 80000 90000

TABLE 3 : DEPENDENT PENSION

Min Dep 8100 8310 8460 15420 15420 15630 15690 16020 21900 24000 27000
Pension
For Both 20250 20775 21150 38550 38550 39075 39225 40050 54750 60000 67500
Min Parents
Liberalised (75%)
Dep For 16200 16620 16920 30840 30840 31260 31380 32040 43800 48000 54000
Single
Pension Parent
(60% )

Note.

1. The dependent pension for death which is not attributable to/ aggravated by service
(corresponding to OFP) is subject to minimum income criteria i.e. Rs 3500/- pm +DR.

2. The dependent pension for death which is attributable to/ aggravated by service
(corresponding to SFP) is not subject to any minimum income criteria however the
pension is paid at half the rate as admissible for SFP. Thus the dependent pension
corresponding to OFP and SFP will be same.

3. The dependent pension will however be different for LFP as indicated above. There is
no minimum income criterion for LFP also.

TABLE 4 : DISABILITY ELEMENT FOR 100% DISABILITY

Minimum 8100 8310 8460 15420 15420 15630 15690 16020 21900 24000 27000
Disability
Element
Mini War 16200 16620 16920 30840 30840 31260 31380 32040 43800 48000 54000
Injury
Element
for
Disability
Minimum 27000 27700 28200 51400 51400 52100 52300 53400 73000 80000 90000
War Injury
Element for
Invalidment

Note. The disability element rates are for 100% disability. For lesser disability the amount
will reduce proportionately.
 93

Understanding the Modified Parity Table

30. The modified parity tables are based on Annexure II to GOI MoD letter
No.17(4)/2008(1)/D(pen/policy) dated 11.11.08 revised vide 11.12.08, 20.1.09,
21.5.09,20.01.10 and 15.11.10 for commissioned officers. These Govt letters
have been followed up by circulars of PCDA(P) Allahabad i.e. 397 dated 18 Nov
08, 401 dated 18 Dec 08, 403 dated 02 Feb 09, 412 dated 26 May 09,428 dated
19 Feb 10 and 453 dated 22 Feb 11 respectively. Similarly, modified parity for
other ranks is given in Annexure III of above Govt letter and recent Govt letter No.
PC 10(1)/2009-D(Pen/Pol) dated 08 Mar 10. Modified parity for SFP, LFP and
Disability pension for all ranks is covered vide GOI No-17(4)/2008(1)
/D(Pen/Policy)/Vol-V dated 15 Feb 2011. The follow up PCDA (P) circular No. is
456 dated 18 Mar 11. The above quoted letters are available on web sites as
mentioned above.

31. The modified parity tables for the other ranks is very large in number and
volume, hence they have not been displayed in this manual. The same can be
accessed through PCDA (P) Allahabad website.

32. The modified parity table is inclusive of entitled weightage for each rank.
Adding weightage second time will lead to wrong pension calculation. Thus,
actual years of qualifying service rendered (without weightage), should be used
for calculations. All pensioners, who have opted for commutation, should
calculate their revised pension with full pension entitlement, add DR and then
substract commuted amount to find out their take home pension. DR payment is
always on full pension i.e. even after commutation. The DR rates are; Jan 2006 =
0%, Jul 2006 = 2%, Jan 2007 = 6%, Jul 2007 = 9%, Jan 2008 = 12%, Jul 2008 =
16%, Jan 2009 = 22%, Jul 2009 = 27%, Jan 2010 = 35%, Jul 2010 = 45% , Jan
2011 = 51% and Jul 2011 = 58%.

33. It has been observed that generally the pension/ family pension under
consolidation method is beneficial for the Sqn Ldrs and below and for Medical
branch officers. For pension/family pension of all other officers, modified parity is
more beneficial. However, it is always better to check one‟s pension entitlement
through both these methods (consolidation and modified parity) and then decide
on the pension that is more beneficial.

34. Other Ranks. For other ranks also the majority will be benefitted by
modified parity method of Govt letter No. PC 10(1)/2009-D(Pen/Pol) dated 08 Mar
10 and No-17(4)/2008(1)/D(Pen/ Policy)/-Vol-V dated 15 Feb 2011. These letters
are available on PCDA (P) Allahabad website www.pcdapension.nic.in and CGDA
website www.cgda.nic.in. The correct approach of pensioners should be to check
the pension from both the methods and decide on the beneficial pension. Any
query on pension by other ranks including Honorary Commissioned officers
should be addressed to AFRO.
 94

35. For pre-2006 Family Pensioners in receipt of (SFP), Liberlised Family

Pension (LFP), Enhanced Ordinary Family Pension, there was no provision for
pension fixation as per modified parity method hence, only consolidated method
was applicable to these categories earlier. Now Govt has issued orders vide No-
17(4)/2008(1)/D(Pen/Policy)/-Vol-V dated 15 Feb 11 which permits family
pension and dependent pension to be paid to pensioners who are drawing
SFP/LFP as per modified parity method. The orders for implementation has been
issued by PCDA (P) Allahabad to banks vide circular No-456 dt 18-3- 2011. The
family pensioners can approach their banks for revised pension. This new order is
effective wef 01 Jan 06 and will benefit a large number of family pensioners.
However the Govt order is silent on fixation of Enhanced ordinary family pension
(EOFP) as per modified parity method. This matter has been taken up with the
Govt for clarification.

36. Public Sector absorbees who had opted for 100% commutation of pension
will require a fresh PPO for revision of their pension as per VI CPC. They should
contact Dte PPR for the same. The modified parity tables as given above will not
indicate their correct pension entitlement correctly.

Beneficial Provisions of Minimum Pension

37. Minimum Pension. Wef 01-01-06 the minimum rates of pension for
various types of pension for are as follows:-

(a) Retiring & Ordinary family pension - Rs 3500/- pm + DR

(b) Special &Liberalised family pension - Rs 7000/-pm + DR

(c) Min Disability element for officers - Rs 8100/-pm + DR

(for 100% disability, proportionate reduction
for lesser disability)

(d) Min Disability element for other ranks - Rs 3510/- pm + DR

(for 100% disability, proportionate reduction
for lesser disability)

(e) Min Disability pension (total of service - Rs 7000/-pm + DR

+ disability element) for permanent Disability
not less than 60%

(f) Min war injury element for officers - Rs 16200/-pm+ DR

(for 100% disability on retirement/Discharge,
proportionate reduction for lesser disability)

(g) Min war injury element for other ranks - Rs 7020/-pm + DR

(for 100% disability on retirement/Discharge,
proportionate reduction for lesser disability
 95

Air Force Association (AFA) Senior Citizens Home.

38. IAF has a Senior Citizen Home (SCH) near 7BRD, AF Stn Tughlaqabad
Delhi. It is run on a very reasonable “pay and stay” basis. It has all the comforts
and facilities expected in a modern Senior citizen home i.e. fully furnished
accommodation, house keeping, a good dining hall and bar, 24X7 power &
security services, Medicare, Laundry services etc. All Senior Citizens of IAF (ex-
service personnel of 60 years and above, their spouses and widows) who are
member of AFA, couple or single and free from contagious/communicable
diseases, mentally and physically agile and coherent are eligible to seek
admission as a “Pay and Stay” member.

39. Any Officer / family seeking admission of „Pay and Stay” basis in the SCH
is to first register his/her name by paying a registration fee of Rs. 20000/-. The
Officer/ family approved for admission will be required to pay one time license fee
of Rs. 5 lac in one lump sum. This license fee can be refunded after one year of
admission on vacation of SCH subject to certain deductions. In addition there will
be a requirement of refundable security deposit of Rs one Lac. . The residents
will also be required to make payments for housekeeping / maintenance charges,
messing/extra messing, electricity, telephone, laundry and Dish Antenna
connection for TV etc. on the basis of actual consumption/fixed by the SCH.

40. For further information officers can contact Air Force Association (AFA)
Race Course at Air Force Station New Delhi.

Advice for NRI Pensioners.

41. Many pensioners retire at a young age and settle down in a foreign
country. Many of them get the citizenship of the new country. Over the years
these pensioners start experiencing a lot of problems related to their pension.
These problems primarily relate to stoppage of their pension. Experience
indicates that the problems of these pensioners are primarily caused due to non-
submission/transit loss of yearly life certificate and non-adherence to procedural
requirements of FEMA (foreign exchange management act). No money can go
out of India without meeting FEMA requirements. Attempts to use credit card will
eventually get blocked by the bank. Such pensioners can open NRO account and
give power of attorney to the bank. They will be required to have a PAN card and
fill certain forms prescribed by Central Board of Direct Taxes (CBDT).

42. Such pensioners are advised to take appropriate advice from their bank
and also take the help of a chartered accountant to meet the procedural
requirements of the bank. The NRI pensioners who do not want regular transfer of
money from India can tie up the same with their banks and withdraw the money
during their visits to India. Since monthly pension is taxable, banks will deduct tax
as applicable on pension account. Other problems like delay in restoring
commuted value of pension and commencement of additional pension after 80
years of age etc can be taken up directly with bank and if there is delay in action
by bank then Dte of PP&R can be approached for advising the bank to hasten up.
A guide line for NRI pensioners from PCDA(P) Allahabad is enclosed as Appendix
„K‟.
 96

Common Problems Faced by Pensioners

43. Some of the common problems faced by pensioners are of a repetitive

nature and can be reduced / avoided if shared and understood by other
pensioners. Some of these common problems are as given below:-

(a) Joint notification of Family Pension. For all cases of death in

service, the family pension is granted to the widow as per existing rules.
However, for death after retirement, the wife is normally entitled to family
pension only if the husband was in receipt of service pension. Every officer
/ other ranks who has retired or gone out of service after 1986 with a
pension has a joint notification of pension along with his legal wife. Joint
notification basically means that like the husband the wife is automatically
entitled to family pension after the death of her husband. The lady has to
contact her husband‟s bank along with death certificate of her husband for
claiming the Family pension. She will have to meet certain procedural
formalities at the bank like submission of original death certificate,
submission of a few witnesses name who know her status as the legal
wife, life certificate for herself, remarriage related certificate etc. The
Family pension should normally commence within 4-6 weeks of completing
the procedural formalities required by the bank. If there is a delay in
commencement of family pension by the bank, the lady should seek help
from Dte of PP&R. Before 1986 there was no provision for joint notification
of Family pension with wife and the pension was made on the name of
retiring officer / other rank only. After death of the individual a fresh case
for family pension was sent for Audit verification and issue of PPO. It was
a cumbersome and time consuming procedure. However provision exists
for such pensioners to apply for joint notification of pension through Dte of
PP&R. By now joint notification of Family pension has been completed for
majority of pre-1986 pensioners also. If anybody is left out they should
immediately apply for the same. If a pensioner who does not have joint
notification expires then his spouse‟s case will be taken up for Family
pension with audit as per pre 1986 procedures

(b) Not Having Joint Account With Wife. If an individual is lucky

enough to die because of ripe old age, the possibility of his wife outliving
him by a few years is very bright because in most cases the wife is
younger. A joint account makes the transition to family pension smooth. It
also helps in early start of family pension and claiming of life time arrears of
the late officer.

(c) Not giving Any Nomination in Bank Account. In many

cases the pensioner has a single account and the nominee is not filled up
by the individual at the time of opening the pension account, it is left blank.
In such cases the wife can not claim life time arrears of the late officer. As
per the existing rules Banks can pay the left over money in late individual‟s
account, to the nominee or to the next heir as per succession certificate
from a court of law. The wife automatically can not claim life time arrears of
 97

her late husband if she is not a nominee. A large number of widows are
surprised to find themselves in this frustrating situation after their
husband‟s death and seek our advice on this matter. There are cases
where a widow had to wait for over one year to complete legal formalities in
a court and claim the money. Similarly it is desirable for Family pensioners
also to have a nominee in their bank account. The nominee should
preferably be one of her children who is looking after her.

(d) Wife’s Name Different From What is Notified in PPO. After

death of an individual the family pension by Bank will be released to the
legal wife as notified in the Pension Payment Order (PPO). It is very
common for many bereaved wives to discover in the Bank that what they
claim to be their name is different from what is notified in PPO. If the two
names differ the banks do not release Family pension, as technically it
could be a case of impersonation. This matter thereafter has to be resolved
procedurally with the help of Service HQ/ Record office/CDA. This whole
process takes time and is a frustrating experience for the widow.
Experience indicates that the mistakes could be related to spelling i.e.
Reeta and Rita, Malati Tyagi and Malti Tyagi or difference in surname i.e.
Reena Rai and Reena Roy. Sometimes there are variations due to extra
words in one name i.e. Savitri Singh Mankar and Savitri Mankar. There are
also instances where the officer absent mindedly writes the nick names of
their wife used at home instead of the formal name outside i.e. Munni
Sharma instead of Manyata Sharma. Surname can be changed after
marriage, however it should be a mutually agreed change between the
couple. The best way to avoid future problems is to re-verify the name of
wife as jointly notified in PPO with the wife herself and her certificates etc.
Where ever there is a discrepancy, the same should be rectified at the
earliest by taking advice from Dte of PP&R.

(e) Non Submission of Life Certificate in Time. A large number of

pensioners in general and NRI pensioners in particular suffer due to non-
submission/delayed submission of life certificate to bank in November
every year. If the life certificate is not submitted in time the banks can stop
the pension payment. This is a precaution which banks take to detect
fraudulent withdrawal from pension accounts of pensioners who are
deceased. It is easier to submit the yearly life certificate every year in
November than to work hard subsequently towards restarting a stopped
pension.

(f) Not Writing a Will. Death is inevitable. If one is lucky he/she will
die of ripe old age but the possibility of an unexpected/premature death
due to accident/ disease can not be ruled out. Therefore prudence
demands that everyone should write a Will immediately after retirement
and revise it at regular intervals. A Will need not always be on a stamp
paper and through a lawyer. It can be written on a plain sheet of paper also
in one‟s own handwriting. Two independent witnesses (preferably much
younger) are required to sign the Will. Basically a will can be written
primarily on the property which the individual has earned himself. If the
 98

property is inherited he can write Will only on that portion which is due to
him after division with other legal heirs. If one is depriving his spouse and
immediate family and giving property to an outsider then the reason behind
the same should be clearly spell out in the will to avoid future litigation. If
one is very old and handwriting is not legible then a typed will is desirable.
For writing a Will one can initially do self education on internet and then
write the Will. For property of a complicated/disputed nature it is better to
take advise from a civil lawyer before writing the Will.

Use of Internet Banking and Credit Card.

44. It is advisable to resort to Internet banking. We are all used to debit cards.
However, it makes a lot of sense to have a combination of credit card and an
internet banking account. Credit card could give us free crdit for 20-50 days and
hence is a good back up for emergency. Internet account helps us to avoid long
queues in a bank and operate our account at the convenience of being at home.
Internet account also helps in timely and assured clearance of our credit card
dues every month.

The Option of Reverse Mortgage.

45. One of the major problems after retirement is that banks do not give home
loans. Most of public sector banks do not give home loans beyond 60 years of
age unless there is a younger member like an earning son ./ daughter who is a
co-petitioner for loan. However, if a retired officer wants, he can get a loan from
any public sector bank through a reverse mortgage. Normally these banks will
given loan upto 75-80% of market value of the house as assessed by them. The
loan with interest will be recovered after the death of the pensioner and his wife
by selling the house. The surplus money earned in the sale, if any, will be given
to the nominee of the officer. The children of the officer may be given the option,
as per agreement to repay the dues and have a first claim on the house.

Guidelines for Officers proceeding on retirement

46. Good advice stands the test of time. This excellent piece of guidelines
from a retired officer is still relevant. Some of the investment options as
suggested in this pamphlet may need suitable replacements as per present times
however the concept of these investment is still fully relevant. This advice should
be read not only by officers proceeding on retirement but also by the officers who
have already retired. This advice in its entire originality is placed as Appendix „L‟.
 99

CHAPTER- X

FREQUENTLY ASKED QUESTIONS (FAQs)

Retiring Pension

Q1. What is minimum qualifying service for full pension of an officer?

Ans: The minimum qualifying service for pension is 20 years for an officer.
However there are following exceptions:-

(a) For SSC/emergency commissioned officers who were selected from

other ranks, the minimum qualifying service for pension is 12years.

(b) Those officers who are medically invalidated out of service and
whose disability is attributable to or aggravated by service will be eligible
for pension consisting of service element and disability element. There is
no minimum qualifying service required for that.

(c) Those officers who are medically invalidated out of services and
whose disability is neither attributable to nor aggravated by service will be
eligible for service element of pension if they have a minimum qualifying
service of 10 years or more.

Q2. I am from ranks and I have 14 years of short service commissioned

service and 06 years of service in ranks as an airman. Will I get pension for 20
years of qualifying service?

Ans:- Service in ranks is fully counted for qualifying service towards pension wef
01-01-96.Before that only 2/3rd of service in ranks was counted towards qualifying
service. Thus your total qualifying service will be 20 years. You will get pension
for the last rank and pay held as an officer for 20 years qualifying years.

Q3. I have been dismissed from service. Can I get a pension?

Ans: An officer who has earned his pension i.e. has a qualifying service of 20
years can put up a mercy petition for grant of pension explaining his individual
indigent circumstances ,number of dependents on him, his financial burden, his
own /dependents medical condition etc. The application can be addressed to
CAS/AOA. Based on the merits of the case the competent authority (AOA for AF
officers) will take a decision on the matter and at his discretion, based on merits of
the case, he may refuse pension or may clear restoration of part or full pension of
the officer.
 100

Disability pension

Q4. What kind of disability makes a person eligible for disability pension?

Ans: That disability which is attributable to or aggravated by service is eligible

for disability pension provided the disability is 20percent or more. However when
an officer is invalidated out of service on recommendations of invalid medical
board(IMB) then he is eligible for disability pension even if the disability
percentage is less than 20 percent provided if disability is attributable to or
aggravated by service.

Q5. Who decides on the Attributability to/ aggravation factor of an officer‟s

disability?

Ans: All officers have to undergo annual medical examination. An officer‟s

disease /disability is picked up either during his voluntary sick report or due to
detection in annual medical checkup which is compulsory for all officers. Having
picked up the disease or disability the same is treated by the medical authorities.
During treatment the officer‟s medical category could be downgraded temporarily.
Thereafter the officer is required to undergo a medical board at regular intervals
which decides on his medical category and the Attributability/ aggravation aspect
of the disease. Medical officers follow very clear guideline on these matters.
Similarly when an officer‟s disability/injury is caused by an accident then the
Attributability/aggravation aspect of the disability will be decided by his injury
report/Court of inquiry recommendations on the matter. Thus it is the medical
board which has the final say on the Attributability/aggravation. In case of
accident cases the medical board will go through the injury report/COI on the
matter.

Q6. What is broad banding of disability pension? How does the disability % go
up in broad banding?

Ans: Govt. rules on pension show more benevolence for personnel who are
invalidated out of service on medical grounds. In their case the disability
percentage is broad banding to the next higher figure of 50%, 75% and 100%.
Broad banding was introduced for the first time in 5th pay commission ie 01-01-
1996. However for those who were invalidated out of service before 1996 there
was no provision for bunching. Now in 6th pay commission persons who were
invalidated out of service before 1996 are now eligible for broad banding effect
with effect from 01 Jul 2009. There is also a possibility of this decision of broad
banding for pre-1996 invalided officers to be changed by the Govt to 01 -01-1996
in near future due to certain legal issues on the matter.
 101

Q7. What is service element and what is disability element?

Ans Service element is similar to retiring pension whereas disability element is

a pension specifically given for the disability which was attributable to or
aggravated by service.

Q8. Is income tax exempt on both service element and Disability element of
pension?

Ans: Yes, income tax is exempt on both.

Q9. Is there any DR on constant attendant allowance?

Ans: Constant attendant allowance (CAA)is given on the recommendations of

invalid medical board. DR is there only for service element and disability element
of pension, there is no DR on CAA. However when ever DR percentage goes
beyond 50% CAA will increase by 25%. Thus the Rs 3000/- pm CAA stands
revised to Rs 3750/- pm wef 01 January 2011after DR has crossed 50%.

Q10. What is the rate at which Disability element of pension is given?

Ans: The rate of disability pension w.e.f. 01-01-2006 is as follows:

(a) Normal disability pension - 30% of last reckonable Emoluments

(b) War injury pension, normal release - 60% of last reckonable

Emoluments.

(c) War injury, invalidation - 100% of last reckonable Emoluments

Note. The above rates are for 100% Disability, for lesser disability it shall
proportionately get reduced.

Family Pension

Q11. If a person has more than one marriage which wife is entitled for family
pension?

Ans: Only legal wife is entitled for Family pension. The lady with whom the
officer has got married for the first time is the legal wife. Any other marriage done
before the death or legal divorce with first wife is null and void in the eyes of law.

Q12. I was married to my husband when his divorce proceedings were going on
with first wife. He got divorced from first wife after few months of our marriage. Am
I entitled to family pension?

Ans: Since your marriage took place when the first wife was still the legal wife, it
is null and void in the eyes of law. You should have waited for her legal divorce
before your marriage with her husband. The fact that her divorce took place few
months after your marriage does not make your marriage legal. Since your
 102

marriage was ab- initio null and void it will continue to remain null and void in the
eyes of law and therefore you are not entitled for Family pension.

Q13. My first wife is not loyal to me can I write a will to grant family pension to
my second wife with whom I stay?

Ans: Such incidents have happened in the past and such a will has been
challenged in court of law. The court rulings are very clear. Since will can be
written only on own property and family pension comes out of Govt money for a
social cause therefore any will on family pension is illegal and hence null and
void. Family pension will go to legal wife only.

Q14. I am the mother, my son died in an air crash as an IAF pilot. He was
recently married. Will I get family pension?

Ans: Parents can get family pension only for a bachelor officer or an officer who
has not left behind any widow or child after his death. In this case the officer‟s
widow will get family pension.

Q15. What is the eligibility to Family pension after remarriage of a widow?

Ans: Widows who are in receipt of special family pension (SFP) and liberalized
family pension (LFP) will continue to get their SFP/LFP after remarriage provided
they support their children after remarriage. If the widow does not support her
children then her family pension will be divided between her and her children till
they attain 25 years of age. However if a widow in receipt of ordinary family
pension (OFP) remarries then her Family pension will continue only if she is
childless at the time of remarriage. If she has children her family pension will stop
and get passed on to eligible children below 25 years of age.

Q16. What are the rules on eligibility of Family pension for children if both
parents expire/become ineligible?

Ans: When both parents/ single surviving parent, eligible for pension expire/
become ineligible, then Children below 25 years of age unmarried and
unemployed (income less than minimum Pension of Rs 3500/-pm +DR) will be
eligible for family pension. The Family pension will start with eldest child below 25
years of age. Once he/she is 25 years of age it will pass to the next child in line
who is below 25 years. For release of family pension to a minor child a legal
guardian will be required from a court of law till the child is 18 years old. If there is
a handicapped child eligible for life long pension then Family pension to
handicapped child will be issued only after all other eligible children below 25
years have received their share of Family pension.
 103

Q17. What are the rules on eligibility of Family pension for handicapped children/
handicapped siblings?

Ans: Handicapped children (not capable of earning livelihood for life) are eligible
for family pension for life after the death of both parents. Such children have to be
examined by a competent medical authority and a certificate from the doctor (not
less than the rank of Brigadier or equivalent) as per prescribed format will be
required. Married handicapped children are not eligible for this pension. A legal
guardian for such children should be nominated by parents in their life time.
Handicapped siblings (brothers and sisters) are also eligible for family pension on
similar lines as handicapped children. For Endorsement of the name of
handicapped child/ sibling in the PPO, an officer can apply during his life time
itself. Applications for the same should be sent to Dte of PP&R.

Q18. What are the rules on eligibility of Family pension for unmarried/ divorced/
widowed daughter?

Ans: Unmarried / divorced / widowed daughter can apply for family pension
only after the death of both her parents. She is eligible to apply only if she is
unmarried/ remains divorced at the time of demise of her last surviving parent
(father or mother). Her pension is subject to minimum income criteria and audit
verification of her claims. Her name will not be annotated in the PPO during
parent‟s life time. Applications by eligible daughters should be sent to Dte of
PP&R.

Q19. What are the rules on eligibility of Family pension to Wife/NOK of missing
personnel in service or after Retirement?

Ans: Ordinary family pension is admissible for personnel who are missing in
service or after retirement. The family pension can commence six months after
lodging of missing FIR. For cases of missing personnel while in service, an inquiry
at the unit level must establish that the person is actually missing and is not a
deserter. The same has to be supported by Police investigation reports on the
matter. For cases of missing personnel after retirement the family pension will
only be admissible to widow/NOK if the missing officer was in receipt of service
element of pension and the police investigation report establishes clearly that the
retired officer is missing. Thereafter in such cases Family pension will be released
after proper audit verification.

Q20. My husband was getting two pensions one from IAF and another from the
central Govt job taken up after premature retirement. He has expired recently; can
I get two family pensions?

Ans: While defence pensioners can earn a second pension from their new
organization after retirement however the present Govt rules don‟t permit two
family pensions to a widow. She can draw only one family pension whichever is
more beneficial to her. However in addition to her defence family pension w.e.f
 104

27-7-2001, a widow can also draw the second family pension only if it comes
under following two categories i.e. EPF scheme 1995 and FPS 1971

Q21. How can I collect pension of my husband who is very sick and not in his
senses?

Ans: Whenever a pensioner is sick to the extent that he/she can‟t sign her bank
cheques then they are permitted to put Thumb impression on the cheque. In
addition for pensioners who are in comatose state i.e. unconscious/ or mentally
not stable, a legal guardianship certificate from district court will be required by
the bank and there after the bank will release pension to the legal guardian. For
the purpose of submitting yearly life certificate for such pensioners, the bank
should be requested to send an official at the home of pensioner so as to
physically verify the pensioner and then issue the life certificate.

Q22. I am a widow drawing family pension. I am not keeping well, I want to shift
permanently with my daughter staying in another state. What is the procedure to
shift my pension account to another bank/branch of same bank?

Ans: A pensioner can change his PDA (pension disbursing agency) as per
his/her choice. For this he/she has to apply to their PDA i.e. the bank or branch
from where they are drawing pension. If there is any problem they can contact
Dte of PP&R for advice. Certain precautions should be taken before applying for
change of PDA. Firstly there should be no major amount/ arrear due in the
pension account. Secondly draw the last pension as and when it becomes due
and thereafter immediately apply for transfer. Depending on banks efficiency the
procedure can take 4-10 weeks. It can take longer if there is transit loss of
documents. Widows must activate their jointly notified family pension and should
draw their family pension for few months before applying for change of PDA.

Q23. My husband was invalided out of service two years ago due to injuries in
an air accident. His disability was attributable. He has recently expired and I am in
receipt of Enhanced ordinary family pension. Can I get Special Family Pension?

Ans: If an officer is invalided out for a disability which is attributable to or

aggravated by service and dies within seven years of his invalidation then his wife
is eligible for special family pension if the death, as per medical opinion, is
caused due to the disability for which he was boarded out. In such a case the
lady should contact Dte of PP&R at Air HQ for further advise.

Dependent Pension & Ex-Gratia for Flt Cadets

Q24. What is the difference between Family pension and dependent pension?

Ans: Family Pension is paid to the widow/child of an officer who has died while
in service or after retirement. A claim for dependent‟s pension arises in favour of
parents/ eligible brothers and sisters (in the absence of parents) of the deceased
officers who die as a bachelor or widower without children.
 105

Q25. Are the rates of dependent pension for parents same in cases of death
which is attributable(similar to SFP) and death which is not attributable(similar to
OFP)?

Ans: The rate of dependent pension for not attributable to or aggravated by

service(NANA) cases of death corresponding to OFP and for attributable to or
aggravated by service cases of death corresponding with SFP is same i.e. 30% of
last reckonable emoluments. The only difference is that for NANA cases
corresponding to OFP the means limit (income) criteria is there i.e. income should
not be more than Rs 3500/- pm +DR. However for cases corresponding with SFP
there is no means limit but the rates are authorised at 50% of SFP i.e. 30% of last
reckonable emoluments. However For death case corresponding with LFP the
rates will be 75 % / 60% of last reckonable emoluments for both parents /single
parent being alive respectively.

Q26. Are parents of a bachelor officer eligible for Family pension if he dies after
being invalided out/retirement?

Ans: Parents of a bachelor officer who dies after his invalidation /retirement will
be eligible for Family pension only if they both were dependent on him while he
was in service.

Q27. Are Flt Cadets entitled to pension?

Ans: Flight Cadets (direct) are not entitled for pension like commissioned
officers/ other ranks. However they are entitled to Ex Gratia awards for disability
and death.

Q28. What are the current rates of Ex Gratia awards for disability and death for
flight cadets?

Ans: The current rates of Ex Gratia for flight cadets (applicable to all officer
cadets (direct) in three services) are as follows:-

(a) Ex Gratia Awards to Flt Cadets in Case Of Disablement

(Invalidation on Medical Grounds)

(i) Monthly Ex Gratia - Rs 3500/-pm + DR

(ii) Monthly Ex Gratia Disability Award - Rs 6300/-pm + DR

(For 100% disability, will be reduced
proportionately for lower disability)

(iii) Constant Attendant Allowance (CAA)- Rs 3000/- pm

 106

Note.

* CAA is admissible for 100% disability, on recommendations

of IMB.

** DR is not admissible on CAA

*** CAA will increase by 25% whenever DR crosses 50%

(b) Ex Gratia Awards to Flt Cadets in Case Of Death

(i) One time Ex-Gratia Amount - Rs 5 Lac

(ii) Monthly Ex-Gratia Amount to Next of Kin - Rs 3500/-pm + DR

Q29. Flt cadets join AFGIS when they join IAF. What are the benefits from
AFGIS for flt cadets in case of death or invalidation during training.

Ans. As on date (in 2011) the death cover by AFGIS is 50 lacs. In addition
Every Flight Cadet of IAF who is a member of Air force Group Insurance Society
(AFGIS) and who is invalided out of training on recommendations of an invalid
medical board on account of disability will be provided disability benefit at half the
rate of life cover for 100% disability. For lesser disability the amount will be
reduced proportionately. Attributability/aggravation to service is not a factor for
granting this claim. However this benefit is for a disability of 20% and above
only. In addition if a member is invalided out within one year of enrollment and the
disability is not attributable to service, the member will not be eligible for this
benefit. This payment is not from public funds but welfare funds i.e. AFGIS
created by contribution from serving and retired IAF personnel.

EX-Servicemen Contributory Health Scheme (ECHS)

Q 30. What is the concept of ECHS treatment?

Ans. ECHS facility for ex-servicemen is on the same lines as CGHS facility for
retired central Govt employees.

Q 31. Who all are eligible for ECHS?

Ans: All Ex-servicemen who are in receipt of pension, including disability and
family pensioners and their dependents are eligible for ECHS membership.

Q 32. What is fixed medical allowance in lieu of ECHS facility?

Ans: Ex Servicemen Contributory Health Scheme (ECHS) is compulsory for

those who retired/became family pensioners on or after 01 April 2003. Such
persons have nothing to do with Fixed Medical Allowance. For any reason if such
persons (particularly Family pensioners) have not yet become members of ECHS,
 107

they can contact their nearest military station/ECHS regional center and become
an ECHS member. However pre - 01 April 03 retirees/family pensioners had an
option to opt for ECHS or remain out of it. Those pensioners who opted to remain
out of ECHS are entitled for a fixed medical allowance per month. Earlier this
amount was Rs 100/- pm. Now wef 01Sep 08 it has been increased to Rs 300/-
pm. Such retirees still have the option to become ECHS members after
completing certain formalities, they can contact nearest ECHS Regional Centre
for the same. They can also get relevant information on ECHS website. ECHS
official website is www.indianarmy.nic.in/arechs.htm. Alternately to reach ECHS
website type ECHS army on Google or any other search engine and the first site
listed there will normally be the official website of ECHS.

Q33. I am a pre- Apr 2003 pensioner. I had opted for drawing medical allowance
earlier, now I want to join ECHS please advise me on the procedures.

Ans: A large number of pre-2003 pensioners who had the option to choose
between joining ECHS or drawing a Fixed Medical Allowance per month opted for
Fixed Medical Allowance per month. Many of them now feel that it was a wrong
decision and want to join ECHS. However, they are not clear about the rates and
the procedure of joining ECHS. Firstly, medical expenses are bound to increase
with advancement in age, therefore, it makes a lot of sense to join ECHS and
forgo the Fixed Medical Allowance. Pre-Apr 2003 pensioners, who wish to join
ECHS, should contact ECHS Regional Centre / nearest Military Base for advice.
In addition they can go on ECHS official Website i.e.
www.indianarmy.nic.in/arechs.htm. The revised rate of subscription for pre-Apr
2003 pensioners is as follows: -

(a) ESM who Retired prior to 01 Jan 96. Those pensioners who wish
to join the ECHS do not have to pay any subscription as per the prevailing
GoI Orders.

(b) ESM who Retired from 01 Jan 1996 to 31 Mar 04. Though the
scheme was made compulsory wef 01 Apr 2003, the money from PPO was
deducted from 01 Apr 2004. Those pensioners who have retired between
01 Jan 1996 to 31 Mar 2004 and now want to take ECHS membership (on
or after 01 Jun 2009) will have to pay the revised rates of subscription
effective from 01 Jun 2009 i.e.

Grade Pay corresponding to last rank Contribution (in rupees)

Rs. 1800/-, Rs. 1900/-, Rs. 2000/-, Rs. : 15,000/-
2400/-, and Rs. 2800/-
Rs. 4200/- : 27,000/-
Rs. 4600/-, Rs. 4800/-, Rs. 5400/-, and Rs. : 39,000/-
6600/-
Rs. 7600/- and above (sqn Ldr & above) : 60,000/-
 108

Appendix ‘A’
(Refers para 3 of Chapter II)

COMMUTATION VALUE FOR A PENSION OF Rs.1 PER ANNUM

Age next birthday Commutation value

35 9.145
36 9.136
37 9.126
38 9.116
39 9.103
40 9.090
41 9.075
42 9.059
43 9.040
44 9.019
45 8.996
46 8.971
47 8.943
48 8.913
49 8.881
50 8.846
51 8.808
52 8.768
53 8.724
54 8.678
55 8.627
56 8.572
57 8.512
58 8.446
59 8.371
60 8.287
61 8.194
Example : Pension(Gp Capt) : Rs. 25900/-
Amount commuted (50%) : Rs. 12950/-
Age Next birth day at the time of retirement : 57 Years
Commutation Value : 8.446
Commutation amount = 12950 x 12 x 8.512 = Rs. 13,22,764/-
Carry Home amount = 25900-12950 + 16% DR on 25900
= 12950 + 4144 = 17094/- pm (as on 1.7.08)
Note. If the medical board is of the opinion that an individual does not have the
prospect of an average duration of his life due to his disability then it will
recommend an additional loading to his age which will result in his commutation
value being reduced. For example if three years loading in age is given by the
medical board in the example given above then commutation value comes down
from Rs. 13,22,764/- to 12,87,799/-.
 109

Appendix ‘B”
(Refers to para 5 of Chapter II and
para 23 of Chapter IV)

OLD RATES OF GALLANTARY AWARDS PER MONTH

01.01.72 01.01.82 01.05.85 01.01.87 01.02.95 01.01.96 01.02.99 14.05.08

Gallantry / to to to to to to to to
31.12.81 30.04.85 31.12.86 31.01.95 31.12.95 31.01.99 13.05.08 28.02.11
Decoratio
ns Rs Rs Rs Rs Rs Rs Rs Rs

Param Vir 100 150 150 200 350 1500 1500 3000
Chakra
Each Bar 40 60 150 200 350 1500 1500

Maha Vir 75 115 115 160 275 400 1200 2400

Chakra
Each Bar 25 40 115 160 275 400 1200

Vir Chakra 50 75 75 120 200 300 850 1700

Each Bar 20 30 75 120 200 300 850

Ashok 90 135 135 180 325 450 1400 2800

Chakra
Each Bar 35 55 135 180 325 450 1400

Kirti Chakra 65 100 100 140 250 350 1050 2100

Each Bar 20 30 100 140 250 350 1050

Saurya 40 60 60 100 175 250 750 1500

Chakra
Each Bar 16 25 60 100 175 250 750

Note. Monetary allowance for VM (G): -

(a) Started wef 26 Jan 99 @ 250/- pm.

(b) Enhanced wef 14 May 08 @ 500/- pm.

(c) Enhanced wef 30 Mar 11 @ 1000/- pm.

 110

Appendix ‘C’
(Refers to Para 18 of Chapter II)

INCOME TAX EXEMPTION FOR GALANTRY AWARD WINNERS

111

Appendix ‘C’ (cont’d)

112

Appendix ‘C’ (cont’d)

 113

Appendix ‘C’ (cont’d)

EXEMPTION OF INCOME TAX FOR FAMILY PENSION FOR DEATH IN THE

COURSE OF OPERATIONAL DUTY

Circumstances and conditions for the purposes of clause (19) of section 10

(2BBA).

1. For the purposes of clause (19) of section 10, the circumstances of death
of a member of the armed forces (including para-military forces) of the Union in
the course of operational duties shall be the following, namely : -

(i) Acts of violence or kidnapping or attacks by terrorists or anti-social

elements;

(ii) Action against extremists or anti-social elements;

(iii) Enemy action in international war;

(iv) Action during deployment with a peace keeping mission abroad;

(v) Border skirmishes;

(vi) Laying or clearance of mines including enemy mines as also mine

sweeping operations;

(vii) Explosions of mines while laying operationally oriented mine-fields

or lifting or negotiation mine-fields laid by the enemy or own forces in
operational areas near international borders or the line of control;

(viii) In the aid of civil power in dealing with natural calamities and rescue
operations;

(ix) In the aid of civil power in quelling agitation or riots or revolts by

demonstrators.

(2) It shall be certified by the Head of the Department where the deceased
member of the armed forces (including para-military forces) last served, or the
service headquarters, as the case may be, that the death of such member has
occurred in the course of operational duties in circumstances mentioned in sub-
rule (1).
 114

Appendix ‘D’
(Refers to para 17 chapter III &
para 12 of Chapter IV)

CONSTITUTION OF FIRST AND SECOND APPEAL FOR REJECTION OF

DISABILITY PENSION AND SPECIAL FAMILY PENSION

1. Composition of Appellate Committee for First Appeal.

Chairman : DDG (PS) / Equivalent rank in Air Force and Navy.

Members : (a) DDG (Pens), Office of DGAFMS

(b) DFA (Pension)
(c) Dir PS-4 / equivalent rank in Air Force & Navy

2. Composition of of Appellate Committee for Second Appeal.

(a) For Commissioned Officers : IAF

Chairman : Vice Chief of the Air Staff

Members : (a) DG (Wks &Cer)

(b) JS & Addl FA
(c) DG Hospital Services (Armed Forces)
(d) JAG (Army) / JAG (Navy)

(b) For Other Ranks : IAF

Chairman : Vice Chief of Air Staff

Members (a) AOP

(b) JS & Addl FA
(c) DG Hospital Services (Armed Forces)
(d) JAG (Army) / JAG (Navy)
 115

Appendix ‘E’
(Refers to para 8 of chapter IV)

GUIDELINES FOR GRANT OF FAMILY PENSION TO DISABLED CHILDREN

OF ARMED FORCES PERSONNEL

Govt. has made provisions for grant of family pension for life to unmarried
children of Armed Forces Personnel who are physically disabled/mentally ill
including mentally retarded vide MOD letters No.A/49601/AG/ PS-4 (e)/3363/B/D
(Pen/Sers) dated 27 Aug 87 and No. PC-MF-Air HQ/24229/283/FPHC/PP&R-3
(i)/582/A/D (Pen/Sers) dated 29 Nov 05. Provisions have also been made for
nomination of guardian by parents during their lifetime in respect of their mentally
retarded children vide Govt. letter No. PC/MF-Air HQ/24229/283/FPHC/PP&R-3
(i)/2678/D (Pen/Policy) dated 26 Oct 07. Salient features of the same are as
under: -

1. Documents required for processing the cases

(a) Form for endorsement of family pension in three copies (all ink
signed). Specimen enclosed as Annexure - I.
(b) Medical/disability certificate from civil hospital to be issued by Civil
Surgeon or an officer of the rank of Brigadier or above from Armed Forces
Hospital as per new format (AFMSF-HD (1)), specimen enclosed as
Annexure II, specifying information on the following aspects: -
(i) Nature of disability.
(ii) Degree of disability.
(iii) Certificate to the effect that the child is
physically/mentally/handicapped/challenged and the disability is of
permanent nature and the child is unable to earn a living on his/her
own.
(c) Legal guardianship certificate/Nomination required under the
following categories: -
(i) In case, where the child is a minor, and both the parents are
not alive then Legal Guardianship Certificate can be obtained from
the Court of Law.
(ii) Mentally retarded child - Nomination of guardian by the
parents during their lifetime (specimen enclosed as Annexure III).
Consent letter from nominee to the effect that he is willing to act as
guardian for the mentally retarded child. However, Armed Forces
Personnel/pensioners can also appoint legal guardian through Local
Level Committee in terms of the National Trust for the Welfare of
Persons with Autism, Cerebral Palsy, Mental Retardation and
Multiple Disabilities Act, 1999 & Rules, 2000.
 116

Annexure I to Appendix ‘E’

PROFORMA

PARTICULARS FOR GRANT OF FAMILY PENSION TO

HANDICAPPED CHILDREN

1. Details of Retiring pensioner:-

(a) Service No, Rank & Name.
(b) Date of Retirement
(c) Original PPO No.
(d) Issued by:-

2. Details of Family Pensioner:

(a) Name & Relation with retiring officer
(b) Date of Marriage
(c) Present Address
(d) PPO No. in which family pension was notified

3. Details of handicapped children:-

Name & address Date of Marital Whether Details of disability

Birth Status employed
or not

4. Details of other children who are eligible for family pension.

Date: Signature of the pensioner

Place:
 117

Annexure II to Appendix ‘E’

AFMSF-HD-1

DISABILITY CERTIFICATE

FOR FAMILY PENSION FOR DISABLED DEPENDENTS

(This certificate is not valid for medico-legal purpose)

Name of the hospital -----------------------------------------------------------------------------

No. ----------------------------------------------- dated -------------------------------------------
This is to certify that Shri Smt/Kum ------------------------------------------------------------
S/O, D/O No. ------------------------------ Rank -------------------------- Name -----------------
Age ------------------------- PPO No. -----------------------------------------------------
Is physically /mentally/handicapped/challenged and the disability is of permanent nature.
He/She is unable to earn a living on his/her own.

Diagnosis --------------------------------------------- Affix photo of

Brief Clinical Notes (in support of the diagnosis) individual
attested by
specialist

Signature/Thumb impression of individual

Signature & Stamp of Signature & Stamp of Signature of Commandant

Classified Specialist Senior Advisor Military Hospital Brig/Equivalent
 118

Annexure III to Appendix ‘E’

Annexure to Govt of India Letter Number PC MF Air HQ/24299/283/FPHS/PP&R-

3(i)/2678/ D(Pen/Policy) dated 26 Oct 07

Nomination for receiving family pension on behalf of mentally retarded child to whom Family
pension is admissible under MOD letter No. A/49601/AG/PS-4(e)/3363/B/ D(Pen/Sers) dated
27 Aug 87 as amended from time to time.
------------------------------------------------------------------------- ---------------------------------------

I,________________________________________ , hereby nominate the person/persons

mentioned below who is/are member(s)/non-members(s) of my family, to act as guardian after
the death of undersigned and my wife/husband, Smt. ____________________________/ Shri
_________________________________ for my mentally retarded son/daughter and to
receive the amount of life long family pension as admissible under MOD letter cited above
and which may authorized by Central Govt.:-

Name and Relationship Age Contingencies Name, address, relationship and

address of with the on the age of person/persons, if any, to
nominee Govt. happening of whom the right conferred on the
servant/ which the nominee shall pass in the event of
Spouse Nomination the nominee pre-deceasing the
becomes invalid Govt servant and surviving spouse
or the nominee dying after the
death of Govt. servant and
surviving Spouse
1 2 3 4 5

This nomination supersedes the nomination made by me on which stands

cancelled.

(i) The Govt servant/pensioner/spouse shall draw lines across the blank space
below the last entry to prevent the insertion of any name after he has signed.

(ii) The Govt. servant/pensioner/spouse shall submit the following additional

documents with this nomination:-

(a) Consent letter from nominee to the effect that he is willing to act as
guardian for the mentally retarded child.

(b) Two photographs of nominee (s) duly attested by Gazetted Officer.

Dated this _________________________________ day of _______ 2000________

at____________________
 119

Signatures and addresses of the witnesses

------------------------------------------------------------
1.

2.
Signature of Govt. servant
(including retired/Spouse) with
full address
(To be filled by the Head of Office)

Nomination by Sh/Smt.___________________________________

Designation _____________________________________

Date of receipt of
Nomination _______________________________________
 120

Appendix ‘F’
(Refers to para 10 of
Chapter VIII)

LIST OF FORMS/APPLICATION/DOCUMENTS WITH PHOTOGRAPHS

TO BE SUBMITTED ON SUPERANNUATION
(AFO 01/88 AND PARA 2 OF AFO 977/76

SL FORM/ NO. SUBMISSION POTOGRAPH NO TO BE

NO OF OF FORMS S OF SENT TO
APPLICATIONS COPI DOCUMENTS COPI
ES ES

01 Statement of Particulars 03 08 Months prior Joint 03 Air HQ

: Officers to Date of photograph in (RKP)
Retirement civil dress with DPP&R-2
spouse (to be
attested by
OC/Adjt on
reverse)

02 Nomination for Pension: 03 08 Months prior Nil Nil Air HQ

Form „A‟ (to be signed to Date of (RKP)
by one witness) Retirement DPP&R-2
03 Declaration for the 03 08 Months prior Nil Nil Air HQ
Commuted Value of to Date of (RKP)
Pension Retirement DPP&R-2
04 Application for 03 08 Months prior Nil Nil Air HQ
Commutation of Pension to Date of (RKP)
Retirement DPP&R-2
05 Particulars of Spouse (to 03 08 Months prior Nil Nil Air HQ
be attested by Adjt) to Date of (RKP)
Retirement DPP&R-2
06 Bank Certificate 03 08 Months prior Nil Nil Air HQ
(participation in the to Date of (RKP)
Pension Disbursement Retirement DPP&R-2
scheme of the National
Bank for Defence
Services Pensioners)
07 Application for ECHS 03 04 Months prior Nil Nil Air HQ
(Med) to Date of (RKP)
Retirement DPP&R-2
 121

Appendix ‘F’ (Cont’d)

LIST OF FORMS/APPLICATION/DOCUMENTS WITH PHOTOGRAPHS

TO BE SUBMITTED ON SUPERANNUATION
(AFO 01/88 AND PARA 2 OF AFO 977/76

SL FORM/ NO. OF POTOGRAPHS NO OF TO BE SENT

NO COPIES / DOCUMENTS COPIES TO
APPLICATIONS

01 Certificate for reserve liability 03 Nil` Nil Air HQ (VB)

and future employment (AFI [(JD PP-IV
01/S/74) (Aux & Res)]

02 Mobilisation proforma : 03 In uniform duly 02 Air HQ (VB)

Reservist officers attested by the [(JD PP-IV
Adjt on the (Aux & Res)]
reverse

03 Application for issue of 03 Civil clothes 02 Adjt

Retired Officers, Identity card along with
(IAFZ-2015A) (Para 4 of AFO negative with
38/01) personal No on
top right corner

04 Application for service book : 02 (a) Uniform (a) 02 Adjt

Air Force retired officers
(Appendix A to corrigendum (b) Joint (b) 02
to AFO 03/75) photographs in
civil dress with (c ) 01
wife
(d) 01
(c ) Copy of
Certificate of
Service
(d) Copy of
IAFF (F) 1517 of
last pay drawN

05 Application for issue of “No 02 Nil Nil S Adm O,

Demand “ Certificate WAC (U)

06. Application for final payment 02 Nil Nil SAO, WAC

of balance in DSSOPF along (U)
with simple receipt
 122

Appendix ‘F’ (Cont’d)

07 Survival Benefit from AFGIS 01 Nil Nil Secretary,

(Form 212) AFGIS

08 Nomination form for PRIC 02 Nil Nil Secretary,

(AFGIS) (Form 224) AFGIS

09 Membership for Air Force 01 Joint 01 Secretary,

Association (Life membership photograph in Air Force
fee for Air Cmde and above - civil dress with Association
Rs. 1000/- and Gp Capt and wife
below – Rs. 700/-

10 Notification regarding address 01 Nil Nil Adjt

of the officer post retirement

11 Release Medical Board (tobe Nil Nil Air HQ

held within 08 months prior to (RKP)
supernnuation) DGMS (Air)
through
SMO and
HQ WAC
(PMO)

12 Medical category, last pay -- --- --- Air HQ (VB)

drawn and total flying hours [JDPO-2(C )]

13 Family particulars (wife‟s -- -- -- Air HQ (VB)

name, date of marriage and [JDPO-2(C )]
children‟s name with date of
birth) duly authenticated by
Adjt with corresponding POR
No.

14 Original copy of clearance 03 -- -- AFCAO

certificate [IAFF(P) 1518 with through SAO
address] (bothe temporary
and permanent) (within 04
weeks from date of
retirement).

15. NE POR to be promulgated - --- -- AFCAO &

within 24 hours of the Air HQ (VB)
casualty JDPO-3
 123

Appendix ‘F’ (Cont’d)

16 Forms P-40, P-55 & AFMSF – -- -- -- Air HQ (VB)

1 JDPO-2(C )
for custody)

17 Encashment of leave (eight 04 --- -- AFCAO

months prior to (LEC)
superannuation along with
POR (on receipt of sanction
by AFCAO)

18 Details of service, furlough -- -- -- AFCAO

and sick leave availed during
the service of the officer with
POR Nos

19 Draft Certificate of Service in 02 -- -- Air HQ (VB)

block capital letter as per JDPO-3( C )
Appendix „B‟ to aFO 01/88 (to
be submitted within two
month of receiving the
retirement order) (signed by
the individual and counter
signed by the unit Adjt)
 124

Appendix ‘G’
(Refers to para 10 of
chapter VIII)
FILLED SAMPLE PENSION PAPERS
Dy CDA (AF) Pension Cell
Subroto Park, New Delhi – 10 Unit : 414, AF Stn

STATEMENT OF PARTICULARS : OFFICER PROCEEDING ON RETIREMENT

Sir,
I, Wg Cdr Albret Hazra (1803) F(P) submit the following
particulars/documents in connection with the sanction of my retirement pension :-

(a) Address after retirement (in block capitals ) Change FLAT NO-412, JALVAYU
to be notified to Dy CDA (AF) & Air HQ (Dte of RESIDENCY , 337, MOTILAL
PP&R), RK Puram New Delhi – 66 (Tele No.) GUPTA ROAD, PO-SAKHER
BAZAR KOLKATA-700 008
Name of Govt/ Treasury/Defence Pension
(b) Disbursing Officer N/A
Name & address of Public Sector Bank from which STATE BANK OF INIDA,
(c) pension is proposed to be drawn. (See App I to Pen SAKHER BAZAR
Regs for the AF Part II (1961) for the List of KOLKATA-700 008
Treasuries/Defence Pension Disbursing Officer BSR CODE : 0003548
Saving Bank A/C No. 200001442291
(d) (Joint Account)
Full Postal Address of the Link Branch with BSR CENTRALISED PENSION
(e) Code PROCESSING CENTRE, 2ND FLR
SBI 83-1/A VIVEKANANDA ROAD,
KOLKATA, WEB
(f) Particulars of Wife & Children/ Relation / Date of Birth.

Name Relation Date of Birth

SMT NITA HAZRA WIFE 17 JAN 1960

MISS NISHTHA HAZRA DAUGHTER 12 JUN 1985

MISS SAROJ HAZRA DAUGHTER 25 MAY 1991

(g) Date of marriage and Nationality of Spouse :23 JAN 1984/ INDIAN
(h) Three copies of Joint Photographs with wife (in civil) : ATTACHED
(j) Whether likely to be re-employed : Army / Navy / Air Force : N/A
(k) Whether anticipatory pension desired : N/A
(l) Date of Retirement : 30 AUG 2011
Signature :
Name : ALBRET HAZRA
Rank : WG CDR
Thro : Air HQs (Dte of PP&R) Designation : SFSIO
RK Puram, New Delhi – 66.
 125

Appendix ‘G’ (cont’d)

(Annexure ‘D’ to Ministry of defence letter 5621/AT-Pt 653/D

(Pension/Services) dated 06 May 93

DECLARATION

Whereas the Deputy Controller of Defence Accounts (Air Force)

New Delhi – 10 has consented, provisionally, to advance me pension @ Rs

per month, and a sum of Rs . being the

commuted value of 50% of pension mentioned above, in anticipation of

completion of the enquiries/documents necessary to determine my pension

entitlement. Viz. Pension, Death – cum – Retirement Gratuity and a part of

pension that may be commuted, I hereby acknowledge that, in accepting the

advance, I fully understand that the same is subject to revision on the completion

of necessary enquiries/documents and I promise to raise no objection to such

revision on the grounds that the provisional payment now made to me exceed the

award which I may be eventually found entitled. I further promise to repay either

in cash or by reduction from subsequent payments of pension any amount

advanced to me in excess of that which I may be eventually found entitled.

___________________________
(Signature)

Personal No. : 1803-T

Rank : WG CDR
Name : ALBRET HAZRA
Place : 414, AF Stn

Date : 21 Mar 12
 126

Appendix ‘G’ (cont’d)

(Referred to in Table I of Regulation 16 and

Regulation 108 of Pension Regulations for the AF
Part II (1961).

FORM OF APPLICATION FOR COMMISSIONED OFFICERS

COMMUTATION OF PENSION

When this form has been duly filled and signed, it should be sent to the
appropriate authority mentioned in Reg 108.

QUESTIONS ANSWERS

1. The Personal No. Rank and Name of

1803-T WG CDR ALBRET HAZRA
the applicant.
2. Place of Birth BOLPUR (WEST BENGAL)

18 APR 1954, 54 YEARS

3.
Date of Birth, Age next birth day in years.

MARRIED
4 Married or single.
5 Have you on any previous occasion
applied for permission to commute a
NO
portion of your pension, and if so, with
what result.

6 How much per annum of your pension

do wish to commute. MAXIMUM PERMISSIBLE

7 How do you desire the capital sum to THROUGH BANK

be paid to your agents or by draft for
negotiation through Bank

Signature

Personal No. : 18603-T

Rank : WG CDR
Name : ALBRET HAZRA
Place : 414, AF Stn
Date : 21 Mar 12
Appendix ‘G’ (cont’d)
 127

FORM – A

Pension disbursing authority / Head of office (Name of Bank / Trt / Post Office /
Accounts Office
Place :
I, Wg Cdr Albret Hazra (1803) F(P) hereby nominate the Person named
below under (Min of Def Letter No. 4(2)84/868/B/D(Pen/Sers) dated 01 May 84.
Name & Address If the nominee is minor name &
Of the Nominee Relationship Date of address of person who may
Birth receive the said pension during
the nominee‟s minority
(1) (4)
(2) (3)
MRS. NITA HAZRA
FLAT NO-412, JALVAYU
RESIDENCY , 337, MOTILAL WIFE 17.01.60
GUPTA ROAD, PO-SAKHER
BAZAR KOLKATA-700 008

NAME & address of other nominee Name & Address of person

in case the nominee under Col. 1 Relationship Date of Birth who may receive the
above predecease the pensioner with pensioner if the other pension during the other
nominee is nominee‟s minority
minor
(5) (8)
(6) (7)
MISS NISHTHA HAZRA DAUGHTER
N/A
MISS SAROJ HAZRA DAUGHTER

Contingency on happening of which nomination shall become invalid.

(9)

DEATH / DIVORCE / INSANITY

Witness : Sign.__________________
Name - Wg Cdr D Singh Signature of officer
Date: 26 Aug 11 414, AF Stn
_________________________________________________________________
____
Certified that application/Nomination has been received from
……………………. whose permanent address is:-
……………………..

Place : Air HQ (RKP) Signature :

Date :
128

Appendix ‘G’ (cont’d)

 129

Appendix ‘G’ (cont’d)

CERTIFICATE

1. It is certified that this bank has participation in the Pension Disbursement

Scheme of the National Banks for Defence Service Pensioners. The Full Postal
address is as under:-

(a) Pension disbursing branch (in which pensioner holds account): -

STATE BANK OF INIDA,

SAKHER BAZAR
KOLKATA-700 008

BSR CODE : 0003548

RTGS / NEFT/ IFSC : SBIN0001535

(b) Full postal address of Link Branch * is as under: -

CENTRALISED PENSION PROCESSING CENTRE,

2ND FLR SBI 83-1/A VIVEKANANDA ROAD,
KOLKATA, WEB
BSR CODE 004473
2. Shri/Smt Albret Hazra resident of FLAT NO-412, JALVAYU RESIDENCY,
337, MOTILAL GUPTA ROAD, PO-SAKHER BAZAR, KOLKATA-700 008 is
holding a pension account No. 200001442291 on this Bank, which is in their joint
names
1. Albret Hazra. 2. Nita Hazra (Wife)

(Signature of Manager with Rubber Stamp)

Date: Mar 12

* Every Bank may have many branches in a district. Out of these, one branch is designated as
the Nodal Branch / Main Branch for that district. This branch is known as Link Branch in
the pension parlance. The Pension Payment Order (PPO) which is issued by the Pension
Sanctioning Authority i.e.Dy CDA(AF) is addressed to the Link Branch which forwards it
further to the Paying Branch for payment of pensionary benefits. (This paying branch is
termed as Pension Disbursing Agency (PDA) by the MoD / CDA).
 130
Appendix ‘H’
(Refers to para 18 of
chapter VIII)

SAMPLE PPO
131
 ’1111
132

Appendix ‘J’
(Refers to para 20 of
chapter VIII)

COMPRESSED BRIEF ON FINALISATION OF OTHER NE BENEFITS

INVOLVING AFCAO

 Role of AFCAO In Finalization and Payment of Other NE Benefits

 Get the 10 months average pay/Last Pay Details audited.

 Final payment of DSOPF balance.
 Payment of Leave Encashment ( 90%).
 Payment of final IRLA balance.

 Some of the Common Observations in IRLA Audit as Observed by

AFCAO

 Delay in receipt of NE documents from the last unit.

 Details of draft gazette notification with regard to current rank not
found in the COS.
 Mismatch of information given in COS with IRLA records such as :

 Date of promotion
 Date of commission

 Details of post course liability not mentioned in the retirement order

 Payment of DSOP for Superannuation Cases

 Unit to forward Appx G to AFO 66/76 (Vr for final pmt).

 Three months before date of superannuation subscription is ceased
automatically by AFCAO.
 The Appx G along with the fund ledger card duly credited with
interest is forwarded for audit.
 Audited Appx G forwarded to S Accts O of the unit from where the
officer is retiring.
 S Accts O makes payment on the next working day after the officer
retires.

 Officers are permitted to avail final withdrawal in the last year of

retirement without assigning any reason. (On superannuation
ground, only once)
 However they are advised not to avail final withdrawal in the last
three months as the procedure for audit gets delayed and no
interest is given for the delayed period.
 133

Appendix ‘J’ (Cont’d)

Payment of DSOP Pre- Mature Retirement Cases

 Complete process of audit starts after the date of retirement of the

officer.
 Officers are advised to complete App G to AFO 66/76 and forward
to AFCAO after the retirement along with the NE POR.

 Also advised not to avail any final withdrawal / temp loan three
months before retirement.
 Payment released by Accounts Section of AFCAO after date of
retirement directly to the banker/home add as mentioned in the
Appx G .

 Payment of Leave Encashment

 Complete procedure for processing payment of LE is laid down in

DACL 14/2001.
 90% of LE is paid after audit post retirement only on receipt of NE
documents. The documents are :

 NE POR
 LE authorisation POR
 Closed pay book
 LE Sanction (Pt-III)
 Simple receipt

 Remaining 10% of LE along with IRLA balance will be released after

no demand certificates are received from the following agencies :

 CDA(AF) Dehradun
 UABSO/C Adm O
 Jt CDA(AF) Subroto Park

 Check List for processing LE payment

 Though the promulgation of leave accumulation POR is the

responsibility of Adjutant. Officers are requested to ensure the
following :

 Encashment POR is promulgated every year and

forwarded to OPW (LE Cell).
 Carry forward POR is mandatory even if full annual
leave has been availed.
 Regularisaton has been done for excess leave availed,
if any.
 Regularisation has been done for hospitalisation / sick
leave.
 134

Appendix ‘J’ (Cont’d)

 Common Avoidable Errors During Process of LE

 Application- cum- sanction for LE not completed as per DACL 14/01.

Such as part III of the application not signed by leave granting
authority.

 Observations on encashment POR not addressed by the unit in

time.
 In case of officers seconded from Army/Navy wrong transmission of
data

 Payment of Final IRLA Balance

 Final IRLA balance includes :

 Balance 10% of LE.

 Any debit/credit of pay & allowance like :

o DA arrears
o IT Refund, if any
o LE on LTC
o TPT
o HRA

 Final IRLA balance is released after no demand certificates are

received from the audit agencies.

 At the time of release of final IRLA balance the Last Pay Certificate
(LPC) is prepared and forwarded to Jt CDA(AF).

 Points to Note on Timely Issue of NDCs

 For NDC from PCDA(AF) Dehradun.

 Ensure that SAO forwards all the voucher details of

TA/DA advances and its clearance particulars to AFCAO,
particularly the advances drawn in the last year of
retirement.

 For NDC from UABSO.

 Ensure that BSO forwards the vacation return in time and

initiates action for forwarding NDC to AFCAO.
 135

Appendix ‘J’ (Cont’d)

 For NDC from Jt CDA(AF) Subroto Park.

 Ensure that the recovery is affected in case of unutilized

portion of OTK allowance.

 Processing of Income Tax Return After Retirement

 Retired officers can file their IT return through AFCAO for the
financial year in which they retired.
 After that Officers are to file their IT return directly with their
respective
ITO (ward/circle)

 Final TA claim : NE Officers

 Officer has to prefer last posting claim for his movement from last
duty station to hometown/selected place of residence as mentioned in
his NE POR after the same move is complete.

 Documents Required

 Movement details of self & family.

 Family details.
 Consignment note and cash receipt for conveyance of
luggage
and motor car separately.
 NE POR.
 Pre-receipted over re 1 revenue stamp.
 Xerox copy of RC book duly attested.
 136

Appendix ‘K’
(Refers to para 56 of Chapter IX)

PROCEDURE FOR DRAWAL OF PENSION BY THE NON RESIDENT INDIAN

DEFENCE PENSIONERS THROUGH DPDOS, PAOS, TOS AND PUBLIC SECTOR
BANKS AS ADVISED BY PCDA (P) ALLAHABAD

1. To open a non-resident Bank Account in any scheduled bank in India.

2. To execute a power of attorney in duplicate (specimen enclosed as Annexure

I) on Indian Non Judicial stamp paper of appropriate value or where no judicial stamp
is available, on durable plain paper affixed with adhesive Indian Stamp of appropriate
value in favour of authorized agent. The value of the stamp will be determined with
reference to practice as obtained in the place where the power of Attorney is
executed. The power of Attorney will be executed before Notary Public or Indian
Mission abroad. If the power of Attorney is executed before Notary Public, it must be
signed in the presence of an official of Indian Embassy /Mission abroad, who should
attest the signature of the pensioner. If the power of attorney is executed on a plain
paper, and is not affixed with adhesive Indian Stamp of appropriate value, the
pensioner may write his agent in India, advising him to take the same to the Collector
within three months of its receipt of getting it stamped according to Indian Stamp Act.
However, power of attorney is not required by Public Sector Banks.

3. Submit pension claim on IAFA-380(a) or an arrear claim on IIAF (CDA) 651 to

his / her PDA, if the pension has not been drawn for more than one year.
4. Submit Life Certificate (IAFA-409) to his / her PDA, issued by an authorized
official of the Embassy / High Commission of India, or consuls of Indian Consulates
or a Notary Public or an officer of an Indian Public Sector Bank attached to its branch
in the country, where the pensioner is residing, once in a year in November each
year.

5. Submit a certificate to his / her PDA once a year in April each year whose
nationality at the time of retirement was Indian and who for the time being is residing
outside India, on the following lines: -
“I Certified that I was an Indian National at the time of my retirement and have
not thereafter changed my Nationality and become a naturalised citizen of a Foreign
State.”

6. Intimate the change of his / her nationality, if nationality has been

changed, along with nationality certificate granted by the country where the
pensioner is residing, to the PDA as well as to PCDA (P) Allahabad for updation
of records.

7. Forward an attested copy of pensioner‟s passport.

8. Submit other certificates viz. non-employment / re-employment certificate, non

marriage certificate etc to his / her PDA.

Note. Execution of Power of Attorney is not required by the pensioner drawing his /
her pension from Public Sector banks.
 137

Annexure I to Appendix ‘K’

SPECIMEN FORM - POWER OF ATTORNEY

Know all men by these present that (a)……………………………………(Full name,

Personal No. and rank of the pensioner) do here by appoint
(b)…………………………… (Name of the schedule Bank). As my true lawful attorney
and authorise the said attorney to do all things, Acts, deeds, that may be necessary
or are usual to receive from the (c) ………………….. the pension payments etc. due
to me as authorised by the Chief CDA(Pensions), Allahabad and to give receipt for
the same and credit the same to my account.

And I do hereby agree to rectify all acts, deeds and things done or made by my said
Attorney which shall be deemed to be done and made by me personally and shall be
binding on me with force and effect. This power of Attorney shall remain in full force
and effect until due notice in writing of its revocation shall have been given to the
CCDA(Pensions) Allahabad.

In witness whereof the said (d) …………………….... (Name of the pensioner) has set
his/her hand and seal this…….day of ………………….SIGNED SEALED AND
DELIVERED by t he said (d) …………………………….. (Name of the pensioner) in
the presence of ……………… (Execution of Power of Attorney).
 138

Appendix ‘L’
(Refers to para 58 of Chapter VIII)

GUIDELINES FOR OFFICERS PROCEEDING ON RETIREMENT

Introduction

1. These guidelines have been originally formulated by Air Mshl PK Jain,

PVSM, VSM a veteran of the Indian Air Force. He has taken valuable advice from
other veterans who were specialist in their own fields.

2. These are the guidelines which are well thought of and provide an insight
to the expected changes after hanging the uniform. The content is full of human
value, service ethos and social character of the Armed Forces which needs to be
carried forward into the civilian life with dignity and honour.

3. The Dte of PP&R is grateful for this wonderful contribution and wish to
spread this noble and virtuous advice to all Air Force Personnel on retirement.

Need for These Guidelines

4. These guidelines are based on the experiences of retired personnel of the

three services with the aim of using the know-how of retired personnel in a
composite manner and guide them to lead a meaningful life and keep them
adjunct of previous services.

5. These guidelines are not a result of any long research of these aspects but
inspired views of some retired personnel based upon their own experiences in the
present social environments with the aim of keeping them afloat in the dynamic
situation prevalent in the society.

6. Needless to mention that these guidelines will need to be updated,

whenever required to remain useful.

7. Hanging off the uniform does not mean that one has put an end to all
human activities; only the style of task changes, normal function should carry on
till the end of the tunnel with full vigor, dedication and focus on achievements
which we could not attend to for various reasons basically service laid down
norms.

8. And yet we need to prepare ourselves-psychologically, physically,

financially and environmentally-for days ahead after we hang the boots. First of
all, do not put a label of „Retired‟ on your personality “Veteran” will be better “
Brand” name than “Retired” which over the time has known to be the “THE END”.
 139

9. Retirement from service can be a painful transition from an active life to

supposedly inactive phase. We must resolve to lead independent life after
retirement. There are instances when service personnel especially those retiring
at higher ranks tend to fall back on the service to enjoy certain privileges. Nothing
can be worse than this. In my opinion one should be in a position to offer to the
service and the serving personnel rather than expecting favours just because of
having adorned a particular position in service. It is better not to lure ourselves in
indulging into expecting and taking privileges because the price for NOT getting
them can be shattering. RESOLVE THEREFORE TO ONLY GIVE AND NOT
TAKE ANYTHING FROM THE SERVICE. Gracefully accept the changed
situation.

Some of the major areas which affect our lives after retirement are as follows:-

Financial Adequacy

10. Your pension amount will need augmentation; you have to save money for
investment into various available and secured channels. Do not fall prey to the
temptation of higher returns via unscrupulous hands; a number of us had to suffer
financial losses for not ensuring the credibility of investment channel. The most
optimum choices are:-

(a) RBI Bonds.

(b) Post Office Monthly Income Scheme and time deposits scheme.
(c) Public Provident Fund.
(d) Air Force Group Insurance Investment Scheme.
(e) UTI Mutual Fund.
(f) Schedule Bank Mutual Fund.
(g) Varishta Pension Bima Yojana.
(h) Senior Citizen saving scheme.
11. Augmentation of income through employment in a job will depend upon
your adjustment to new working environments and guard against emotional stress
and physical strain due to commuting distance, work culture and the age factor. It
is easier to adjust to a job at a relatively younger age, say between 45 to 55 and
junior ranks than higher age group (55-65) and senior ranks. Starting your own
venture or becoming a partner in running venture even with your close relatives is
financially extremely risky.

12. The civilian fraternity in our country looks at a retired service man for being
good and capable only for Security Duties. In contrast a lot many of us are more
qualified to undertake bigger responsibilities. It is also a fact that as yet no
workable and dependable system has evolved to absorb the talented ones into
civil organization at the level they ought to be positioned. We must, therefore,
prepare ourselves much in advance to get on to some meaningful occupation or
activity.
 140

State of Health

13. It is the most important factor which needs your attention. A happy and
successful, after service, life depends on your state of health. Timely health check
ups more regularly than during service, proper diagnosis, meticulous prevention
and prescribed treatment will help you in keeping Good Health. Please remember
that old age effects can not be avoided, they should be borne with a stoic attitude.

14. Death is inevitable, but one should feel gratified at the end of the tunnel for
having spent the life in a purposeful manner besides having accomplished the
destined task with a sense of honesty and sincerity.

15. ECHS has been introduced to provide medical care for retirees. It is useful
to be a member of this scheme, it may have teething trouble but it has all the
potentials to provide you with requisite medical care, there is no skepticism in my
mind about the utility of the scheme. Medical care outside the scheme is awfully
expensive and highly unreliable.

Dwelling Units

16. One should aim to possess a house of one‟s own where one can live in a
relatively tension free surroundings. Fortunately, Air Force Naval Housing Board
has completed and launched number of housing schemes; try to possess a unit in
any of these schemes; such units are the cheapest and physically most suitable,
alternately you may try for accommodation in the Army Welfare Housing and the
State Housing Boards Schemes or building your own house after retirement has
inbuilt complications and difficulties.

17. Sharing a house with your grown up and married children, unless you are a
fortunate one, is not likely to have a smooth sailing mainly due to unbridgeable
gap in the value system of your grown up children (especially married ones) and
that of your own and your spouse.

Paper Work

18. Most of us have enjoyed the benefit of camp life. Payment of electricity,
telephone and water bills never crossed our minds. Maintenance of Sanitary and
Hygiene standard was the responsibility of the organization. We never made
Ration Card, or bothered about Telephone connection, Gas connection, renewal
of Driving License, Fire Arms, and payment of Insurance renewals. It was all
looked after by the staff and it was no hassle. Now all this has to be done
personally by you. No secretarial staff to provide you any relief. Ensure that all
documents are known to you and you may require to stand in a queue for
completing the formalities that alone will keep your irritation under check and
blood pressure within safe limits. However, nowadays banks provide the facility of
electricity and telephone bill payment even through Internet.
 141

19. One must start preparing a check list of the items, which would be required
to be transferred to the place of settlement. This may include:-

(a) Transfer of four wheeler/two wheeler.

(b) Transfer of gas connection .

(c) Transfer of bank account etc.

20. Also it would be a good idea to start making a list of all such
agencies/transactions, where change of address would be required e.g., your
insurance company, any mutual funds, any magazine subscription and so on.
Keep adding to this list till D-2 or D-1 month, and then you start writing to these
agencies for changing your address of communication to ensure that your don‟t
miss any of your valuable letters.

21. After you reach your place of settlement, after the D day, get a ration card
and a voter‟s card and PAN Card for yourself & your spouse made. Also get
registered with the nearest Zila Sainik Board.

22. It would be prudent to make a list of all financial assets i.e. all your bank
accounts, previous account, insurance details, mutual funds, PPF etc and share it
with your spouse. Making nomination in all your accounts is a bright idea as it
reduces many hassles for the NOK, should any thing happen to the
retired/veteran officer/person. It would be rather a very practical idea to obtain
check list from DPP&R about the formalities required to be done by the NOK
regarding applying for family pension etc. in the above mentioned situation.

23. Advisable will be to keep a diary of all items, such as Income Tax return,
Payment of Premiums. It keeps you abreast of changes in Tax Rules, record of
accounts in various banks, investments with Amounts, various licenses and the
maturity date of various schemes which need to be renewed at fixed dates. By
keeping records of all such items, there are fewer changes of slip ups and less
problem of gapping the slips which in civil set up can be back breaking exercise.
Most importantly, the spouse should know all this too.

Adjustment With Change of Culture

24. A sudden change is witnessed in the society outside the Service Enclave.
It is a change form living in a highly organized society where your grievances and
suggestions are meticulously addressed to at regular intervals in welfare meetings
or individually at various levels of the service echelon; No such attention is
available in the civil set up, efforts to put a word and seek relief from a civil set up
at best is exasperating, if not impossible. Highly innovative ways have to be
resorted to for achieving the objective. You may approach for necessary help to
Air Force Association, MLA‟s, MPs and NGO‟s etc. A little amount of goodwill
exists in the officialdom for Service personnel especially at higher levels; do not
feel shy in making use of it.
 142

Vacantness

25. Shift from highly organized service life to an individualistic entity is bound
to create a shocking experience. One has to organize the daily curriculum (DIN
CHARYA). Hence, some kind of framework has to be thought of before leaving Air
Force.

26. While in Service, Cultivation of some hobbies such as sports suitable to

your physical fitness, walking routine, indulgence in painting, music, reading,
coaching through clubs / welfare organization/organizing blood collections for
societies like Red Cross or Hospitals, looking after the patients who do not have
any attendants, learning Yoga especially Meditation Pranayam etc. without hard
physical exercises, are some activities which can occupy your time. Particular
emphasis should be on thought that we owe to the society in general, for what
ever it has bestowed on us during early life. Thus one should be inclined to
attend to social cause. Individual and organized effort should be devoted to
eradication of social evils. Dent should be made on practices of Dowry, Drug
Addiction, killing of Girl child before its birth, ostentatious living, Anti Corruption
measures etc. A great deal can be achieved by writing articles in
magazines/newspapers and through letters to the editor of News Papers. It
should be your duty to approach the concerned civil Authorities for taking
necessary action to improve the living conditions in your locality and City/Town in
particular. Be in touch with Dist Sainik Boards and Air Force Association of your
state for contributing to its welfare activities.

27. Keeping engaged in useful activities is a sure way of achieving happiness,

good health and purposefulness of life.

Maintain Harmonious Relations With Your Relatives

28. During Service period, due to frequent postings, at times to far off places
as well as non availability of leave, we are likely to miss the family and that of
relatives‟ functions and therefore unable to maintain close relations, this state
should be suitably corrected. Post retirement, you are cut off from your service
friends circle; you need the relatives and new friends for renewed social activities
for the soundness of your mental and physical health and settlement of your
children.

29. If one does not prepare for retirement, the “Retirement‟s Shock” may lead
you to “Withdrawal Symptoms” and sometimes depression. Avoid it at all cost.
“Social Activity” is the essence. One should consult a psychiatrist, if you reach
such a situation, as he could enable you to overcome the situation.

Religious Faith

30. Religious faith is necessary for healthy survival. A great deal of

imponderables decide the happenings. Some Natural Forces, whose identity is at
present beyond Mind‟s comprehension, play a vital part in your life‟s pattern. Faith
 143

in your religion and these natural Forces help you in overcoming confusions and
anxiety which may exist in our thinking process, especially when “Things go
wrong”.

31. Whether you believe in the existence of God or not, is not the moot point,
the relevance is that it is useful to create your own God even if it does not exist.
When somebody asks me “How is life treating you?” My answer is “God could not
be kinder”. It provides me feelings of well being as also to the other person.

32. Having said this, it is emphasized that one should be religious but not
fundamentalist in pursuit of religion. Religious bigotry and fundamentalism have
not been the culture imbibed by the Defence Personnel. Visits to religious places
whether Temples, Gurudwaras, Mosques or Churches provide you moral strength
and solace.

33. In our day to day conduct we have remained “Secular” with respect to all
religious faiths. Even in service if somebody asked me “what is your Religion?”
my reply was “Air Force” because I have been brought up under the Air Force
value system. Even after hanging the uniform, our behavior should reflect the
strength of Service values. One should not try to change. The population outside
the services, pays due respect and recognize the ones service behavior and
ethos.

Updation of Will

34. Will, on your movable and immovable property/asset must be updated

according to evaluation of relationship with the legal heirs, and preferably the Will
should be “Registered”. It must be framed strictly as per the latest rules and
regulations to eliminate chances of any friction after your death. Death is
inevitable and its timings are uncertain. The writing of “Will” and its updation
according to the changed circumstances is necessary for smooth transfer of
assets to your next of kin.

Association with Services

35. This benign Service looks after us till we reach the tomb. After leaving the
active Service, one should keep contacts with its establishments, structures for
Ex-Servicemen (who have contributed to the present shape of the Services). It is
advisable to become the members of Air Force Association and AFWWA and take
part in its activities.

36. However one should not expect the Service establishments to look after
you in the manner it did when you weer in Service, because its paramount
responsibility is to take care of serving personnel. Occasionally certain aberration
in behavior is noticeable in service personnel towards ESM. But it should be
treated with the spirit of tolerance and compassion. A bit of appeal and educative
attitude would be a correct measure. Making an issue out behavioral frictions with
service personnel should be avoided. The higher echelons of Service have
issued necessary instructions to the units to treat the Ex. Service personnel with
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due courtesy and helpfulness. The positive attitude of ESM should be to give back
to the Service in return, or what things Service has done to us during our long
service career.

37. Slowly and gradually life leads to a stage when children are settled in jobs,
posted at different places and one is left alone with the spouse. No support is
available from children. Servants are becoming less and less available. Husbands
and wives are to look after each other; the bondages between the two get
strengthened out of necessity. The one day inevitable tragedy takes place and
one of the partner leaves this world and second partner is to look after
himself/herself and his/her assets.

38. The phase of life immediately after retirement is the most difficult stage of
life and needs very careful planning. Physical security is the main problem since it
is being threatened all over the country. The solution lies in shifting to secured
localities. The best alternatives is to live in Senior Citizens‟ housing complex/old
Age Housing schemes.

Leadership Qualities

39. Service training has imbibed in us the qualities of leadership, patriotism,

courage, honesty, truthfulness, spirit of sacrifice, adventurism and simplicity,
Robustness, fearlessness, dutifulness, respect for the seniors are some of the
strong pillars of a Leader. These qualities should manifest during the normal
conduct by ESM with the civil community. By this you will earn a respect for
yourself and for the Service. “Caring and Sharing” will automatically make you as
Leader amongst the civil colleagues. In normal routine and especially in emergent
situations your near and dear ones, look up to you for handling the situation. Be
up to it and do not shirk away from taking the responsibility of leadership.

Philanthropic Nature

40. If one has lived under the code of conduct of Service norms, one should
have the satisfaction and feelings of fulfillment. Service life gave one enough to
satisfy the needs of life and not for the greed. So after leaving the Service one
should be able to contribute towards social causes. One doesn‟t have to be
mighty rich to be a philanthropic. One has to practice not to possess beyond the
daily needs and to give away to the more needy ones, the possessions beyond
one‟s own needs. It will be a matter of tremendous happiness and give peace of
mind to indulge in such deeds, however small they may be.

Quality of Life

41. While in service we maintain certain standard of life. In many cases service
personnel after retirement not only start living a shabby life but declare so openly.
Nothing can be more disastrous than this. We must not compromise on the quality
of life to be acceptable in the civil society. Outside society looks at Service
personnel with reverence. We must not damage the image as by doing so we also
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damage others. It is therefore essential to manage your savings much in advance

to maintain reasonable good quality of life.

Service Privileges

42. After leaving the Service one continues to enjoy certain privileges; the most
significant being canteen facilities and medical care under the ECHS. Misuse of
these facilities for the benefit of your relatives, friends and other unauthorized
persons is

unethical, immoral and illegal. Such a use can lead to denial of these facilities to
all service personnel. Avoid such temptation.

Change in Behaviour Pattern

43. Uniform provides us with a degree of authority, privileges and egoism. We

should get shorn of it to the extent possible in a gradual manner. Our relations
with others should be governed by modesty, humbleness and it will pay us
dividends.

Where TO Invest on Retirement and Earn Income But Save Tax

44. A very big question that haunts persons who are about to retire is where to
invest the money available on retirement. A large amount of money is available in
the form of tax free capital on retirement. If not invested properly, it is wasted
away. If invested properly, your pension and returns from the investments will
ensure that you live life comfortably.

Concept of Returns vs Risk

45. Important criteria while making investment decision is return and risk.
These two have an inseparable relation with each other. One must, very carefully
decide the amount of risk that the investor needs to be exposed to before taking
an investment decision. Since the retirement benefits are available at an age
when an individual is not likely to be exposed with risk investment. This paper
primarily looks at the investment options where exposure to risk is nil or
negligible.

Risk Free Investment Options

46. Post office deposits are backed by Govt. and are, therefore, 100% risk
free. Some of the high yield post office deposits are:

Senior Citizen Saving Scheme + Recurring Deposit:

47. This scheme, though available for persons with minimum age of 55 years,
has been opened to all defence service personnel retiring on superannuation
irrespective of age. A max of Rs. 15 lac can be invested into this scheme, which
offers 9% interest p.a on quarterly basis. The tenure for the deposits in this
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scheme is 5 years and can be parked with recurring deposits after first quarter.
The combined annual yield is 11% approx. The return is taxable.

48. This combination offers the highest yield in the Post office schemes. An
individual can invest max upto 6 lac rupees in M.I.S which generates an interest
of 8% p.a and a bonus of 10% on maturity after 6 years. The monthly interest
income from the M.I.S can be parked with the recurring deposit scheme of the
Post office, which offers interest @7.5% p.a. and has 5 years tenure through a
standing instruction to the Post office. The combined annual yield is 11.10%. The
return is taxable.

Kisan Vikas Patra

49. This scheme offers the rate of interest of 8% with investment for 8 years
and 7 months. Premature withdrawal can be made after 21/2 years. Returns are
available on maturity. The return is taxable.

Public Provident Fund (PPF)

50. The PPF Scheme happens to be very beneficial because interest accrued
on PPF amount is fully tax exempt and the money paid towards the account is
eligible for rebate. The amount accumulated is again exempt form tax. The
expected return of 8% compounded is quite handsome. Say you deposit Rs.
10,000/- p.a. in PPF. The yield after 5 years will be about Rs. 5000/-. Considering
that the entire amount of interest if tax free, principal is tax free and principal is
eligible for tax rebate, the virtual rate of return is whopping 20% when the limit of
Section 80C (i.e. Rs. 100,000/- p.a.) is not crossed. Even when the account is in
the name of spouse/minor child of the investor, he is entitled to rebate. Any credit
balance in PPF cannot be attached by any court order. Facilities for loan and final
withdrawal are available. PP maturity period is 15 years.

Bonds

51. There are bonds offered by RBI (Reserve Bank of India), NHAI (National
Highway Authority of India), REC (Rural Electrification Corp Ltd), SIDBI (Small
Industries Development Bank of India) and NHB (National Housing Bank). The
highest yield is available on RBI bonds in which 8% interest p.a is payable half
yearly, which can also be compounded. The lock in period in this bond is 6 years.
The return is taxable other bonds provide return to 5 to 5.5% p.a. but are tax free.

National Savings Certificate

52. NSC is a very safe investment, very secure and one can purchase it from
any Post Office. On maturity after six years, investor will get back the principal
amount with cumulative interest. The amount of investment up to Rs. 1,00,000/-
qualifies under section 80C (max permissible limit of 1 lac). Thus if a taxpayer
invest Rs. 10,000/- every year, the virtual yield would be about 15% p.a. The
interest earned is tax free until upto end of 5th year. This again is very good.
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GIS Investment scheme

53. This scheme is opened to the retired members and NOK of deceased Air
Force personnel excluding their major sons and married daughters. This scheme
is affected in two ways. Investment under Cumulative Scheme (Min 3 years) and
is subsequently renewable yearly. Interest @ 9.5% is paid per annum on maturity,
but for non-cumulative deposit scheme it is @ 9.2% per annum (subject to
changes as decided by the governing body). This scheme also provides loan
facility on investment to the members. The interest earned is taxable.

House With Borrowed capital

54. The tax savings options of the investment in residential house have not
been changed in the Finance Bill 2003. They are unlikely to change in the coming
years. Hence, investment in housing remains a major option opens to a taxpayer.
The deduction of interest paid on housing loan (without limit for a rented house
and within limit of Rs. 1,50,000/- for a self-occupied house) is a tax saving option
that must be exercised by all. Apart from the deduction of interest paid, rebate on
principal amount paid back upto Rs. 1,00,000/- is also available under 80C. The
interest rates on housing loans have dropped. The capital is available in the
market in abundance. Once just has to take the decision to purchase a house and
take steps to implement that decision. Of course, it is a lifetime decision and one
has to be careful about it, but time to do is NOW.

Medical Policies

55. Under Section 80D, every taxpayer is eligible for deduction of upt Rs.
10,000/- for any premium paid towards Medicare policy for self, spouse or
dependent parents. For senior citizens, the amount deductible is upto Rs.
15,000/- . Again, most life insurance companies like Chola General Insurance,
Bajaj Allianaz, and Royal Sundaram have got some policy or other for medical
care, This is a less attractive option for Defence personnel because of medical
cover is available through ECHS. Yet, one can go into the details and choose the
policy as per requirement, because of medical cover and tax benefit.

Investment With Risk

Mutual Funds

56. Investment in mutual funds are one of the options available after one
exhausts other options. Based on their objectives and investment patterns, the
funds can be classified into three categories Equity Funds, Balanced Funds and
Debt Funds. Equity Funds are ones where the money is predominantly invested in
equity shares by the fund managers. Debt funds are ones where the money is
predominantly invested in debt instruments like debentures by the fund managers.
Balanced funds are those where investment in both equity shares as well as Debt
instruments is more or less the same. Obviously, equity funds are more risky but
paying and debt funds are less risky and less paying. But if the fund managers
are good, the risk is minimized.
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ICICI Life Time Plan

57. The biggest advantage of this scheme is that investment qualifies under
Section 80C upto Rs. 1,00,000/- (Tax saving of Rs. 31,000/-). Insurance cover
upto 5 times of invested amount can be opted for. Expected returns can be
12.15% depending upon market.

Portfolio Management Services

58. A number of investment companies are offering individual Portfolio

Management Services. They design the portfolio based on the risk profile chosen
by an individual and take investment decision only with the consent of the
investor. Such services, which are available for a commission, were earlier
available to only very high net worth individual s but are now available to
individual willing to invest minimum Rs. 5,00,000/-. IL&FS Finance Ltd, SSKI
Securities Ltd, Indianinfoline.com, India Bulls Ltd are few of the companies which
offer individual Portfolio management services. The returns on these investments
are taxable. One can either select a Portfolio Management Service provider from
among those registered with the market regulator SEBI. All the Protfolio
Management Service providers are registered with SEBI and the list is available
at www.sebi.gov.in. It is advisable to run a check on the portfolio manager and the
Portfolio Management Service outfit. “Take your time, to a thorough check with
due diligence on the Portfolio Management Service before investing”. As a
prospective Portfolio Management Service investor, one should run a background
check on Portfolio Management Service provider, understand the investment
philosophy, know the processes and systems, and also look at their past records
to decide. Investors should always go for experienced investment managers with
solid track records. The next step is to ask for references from the Portfolio
Management Service about their clients and talk to them about the service
provider.

Mutual Fund and Equities

59. It is not advisable for a retired air warrior to invest directly in mutual fund or
equities unless the individual has sound knowledge to carry out fundamental and
technical analysis and research. Investment on „tips‟ in share market is a sure
shot method of destroying one‟s hard earned retirement corpus. Unless an
individual has sufficient exposure to financial markets, it would be risky to invest
directly either in mutual funds or equities, returns on these investments are
taxable. If the individual has some appetite for risk then one should restrict either
to a Portfolio Management Services or invest in mutual funds having consistent
track record of at least 5 years. Mutual funds are subject to market risks. It is
important to read the offer document carefully for details on risk factors before
investment.

60. The above information is for general information purposes and not
responsible for the result of any action on its basis directly or indirectly. Investors
should therefore read understand related provisions carefully. It is also to be
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noted that expression of opinion with regard to tax exemptions are based on the
law and practice currently in force and are subject of change from time to time.

Conclusion

61. If one undertakes a little analysis of his/her income / expenditure and plans
for the same keeping in pace with the changing financial scenario then one can
definitely earn more by savings on tax etc and thus lead a healthier monetary life.
One must remember that a rupee invested wisely will bring two rupees and vice
versa.

62. Have you ever bothered to think what would happen to your family after
you have departed from this world. You might have made enough money to keep
your family comfortable for the rest of their lives after you had departed from this
world. But will they get what is rightfully theirs? The complexities of modern life
do not let matters to be as simple as they should be. Every aspect needs
documents, a written statement. May be, you have them, but where are they? Are
they easily accessible? Even the educated and working ladies generally do not
take any interest in financial matters. They feel pride in saying that my husband
looks after financial/bank matters. Does your spouse/family know where they are?
Please tell them every think while you are alive.

63. As a matter of policy you should keep all your documents in joint names.
Your spouse/family should know where to locate/to operate the following:-

(a) Your WILL. Every man and woman, rich or otherwise, must make a
WILL even if everything is in joint names.

(b) Bank accounts, bank lockers and bank name in which lockers are
located. Bank account and lockers should be in joint name with instruction
of operation by any one. Facility of nomination should be availed.
Nominee should be other than joint operators and nominee may or may
not be informed as deemed proper.

(c) Fixed deposits should be held jointly and date of maturity and date
of receipt of interest should be noted in a diary or in a calendar for timely
action.

(d) Cumulative time deposit of Bank/Post office, Contributory

Employee‟s Provident Fund Number.

(e) Copy of nomination made after marriage.

(f) Public Provident Fund Book.

(g) Motor car papers and insurance.

(h) Court decisions and pending litigation papers, if any.

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(j) Income tax/wealth tax files and concise and complete record of all
vital information on taxation.

(k) Policy files (LIC. GIC, Health /Medical/ Fire/ Accident etc).

(l) Pension papers, if superannuated.

(m) Property files (Real Estate, flat ownership and Property tax papers).

(n) Telephone files.

(o) Deposit receipts for gas/electricity/water etc.

(p) Rent Papers (Receipts and other correspondence, if any)

(q) Name of legal advisers and their contact numbers.

(r) Any other matter of interest to your family.

(s) Passport, driving licence and Identity card and Photocopies thereof
to be kept separately.

(t) Medical file of family members. This will be of great help when the
disease relapses.

(u) Share certificates with endorsement of calls in marketable lots and

their allotment advice for ascertaining capital gains.

64. Apart from above, it is essential that you should train your spouse to be
able to deal with all the above mentioned matters individually and independently
or with the help of one of her relative(s) in whom there is faith. Today, most are
concerned about himself. Sympathy wave on account of death of head of family
may last for a short period of time.