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NFU - A DETAILED BRIEF


NFU – WHAT ALL ONE WISHED TO KNOW.

We thank Brig CS Vidyasagar for sending this exhaustive paper on the subject fot the Indian Mil Veterans - signals parivaar.

Dear Brig Dhand Sir,
1.      A number of members and non-members of TSEWA have been requesting me to explain NFU in simple terms and how does it affect serving and retired officers of Armed Forces. I have taken inputs from Col Mukul Dev’s table of empanelment of IAS Officers of various batches to the post of Director / Joint Secretary / Additional Secretary in central government and how Organized Group A services are benefited of higher pay by NFU.
I also used data available from SAI 2 / S / 2008, Circular 555 of OROP – 2013 and New Defence Pay Matrix issued in the form of Gazette Notification dated 22 June 2017 to arrive at approximate pay of all Officers as on 01 Jan 2016. I have also tried to estimate what is likely pension in OROP – 2018 effective from Jul 2019.
2.        I made detailed paper on NFU for easier understanding. It is laid out in the following parts: -
(a)   Part I: Approximate pay of serving officers from 23 Dec 2013 to 23 Dec 2016 and likely arrears as per judgment of AFT Delhi.
(b)   Part II: Revised OROP – 2013 due to NFU and likely increase in pension & arrears to Pre – Jul 2014 Officers and family pensioners.
(c)   Part III: Approximate Increase in pay of serving Officers in Jan 2016 and approximate arrears from 01 Jan 2016 to date of implementation of NFU.
(d)   Part IV: Approximate increase in Pension of Pre – July 2014 Officers and Family Pensioners w.e.f. Jan 2016 and approximate arrears.
(e)   Part V: Likely pensions in OROP – 2018 for all those who retired till Jul 2019.
(f)    Part VI: Likely hike in pay and pension of Majors in OROP - 2013.
3.      If you want to know about NFU you need to know the following: -

(a)   Fixation of notional pay to serving officers w.e.f 01 Jan 2006.
(b)   Revised pay of serving officers in Dec 2013.
(c)   Arrears of pay of serving officers from 23 Dec 2013 to 23 Dec 2016 (as per judgment of AFT Delhi).
(d)   Pension to Pre – Jul 2014 retired officers in OROP – 2013.
(e)   Pay for serving officers w.e.f Jan 2016.
(f)    Pension of retired officers w.e.f. Jan 2016.
(g)   Revised pensions in OROP – 2018  to all Pre – Jul 2019 retired officers.
4.      All the calculations I did are based on pensions given in Circular 555 of PCDA (Pensions) Allahabad / Prayagraj for OROP – 2013. From there one has to work out what is the pay / pensions in Jan 2016 and in 2018. OROP – 2013 gives pension of Pre – Jul 2014 retired officers which is average of pension of officers retired in calendar year 2018. But that does not tell us what is the maximum pension and what is minimum pension for the same rank and length of qualifying service of those retired in calendar year 2013. I have my own doubts on authenticity of Circular – 555 of OROP – 2013. NFU is based on Commissioned Service or Seniority for Promotion and not on Qualifying Service.
5.      To understand NFU with more clarity, simple examples of how a serving officer is likely to get his pay fixed in NFU w.e.f. Jan 2006 and how his pay is likely to be enhanced in Dec 2013 should be understood. Then one can work out arrears for three years as per the judgment of AFT Delhi on NFU to Armed Forces Officers.
6.      I do understand it is a bit premature to know of the likely pay in NFU of all serving officers and also likely pension of all those retired earlier. Min of Def will take lot of time to issue implementation instructions on NFU.
7.      I therefore request officers who retired in calendar years 2016 and 2018 to give me the following data: -
         (a)     Rank.
         (b)     Date of Commission.
         (c)     Date of Retirement.
         (d)     Date of Seniority for promotion.
         (e)     Pension sanctioned.
8.      In case these officers retired in calendar year 2016 and 2018 can scan and send me their PPO, it will help me to make the paper more accurate.
9.      Since I have made the paper all by myself there could be some mistakes – arithmetic and grammatical. Do correct them and let me know to improve it further. 
10.    The paper is 37 page long and you need lot of patience to understand how I went about working out revised pay and pensions. I tried to make it as easily understandable as I can with many tables showing likely pay and pensions for all ranks. That is why the paper is so long. I will be very happy if you can edit or improve with your own data.
11.    None will help the veteran community. We have to help ourselves by sharing our knowledge and experience.
12.    There were many anomalies in OROP – 2013 and I am sure there will definitely many more anomalies in NFU and in OROP – 2018.  You know the report of Justice L Narasimha Reddy in lying buried in Min of Def since 26 Sep 2016.  Therefore, let us be more informative about NFU and see how it affects pay of serving officers, pension of retired officers and family pensioners. Maj SK Jain (Retd) filed a case in Hon’ble Supreme Court on the status of Justice L Narasimha Reddy Report on anomalies of OROP - 2013. Min of Def is unlikely to help us to improve our pay and pensions. We have to do it ourselves. We may have to go to AFTs on implementation of NFU by removing the anomalies those could have been deliberately introduced to reduce the benefits of higher pay.
13.    As I am hard up for time, do kindly communicate with me through e-mails. I do not find time to see Facebook and Whatsapp.
14.    The paper on NFU for Armed Forces is attached. I do not claim any expertise on NFU. 
Warm Regards,
Brig CS Vidyasagar (Rtd)
TSEWA- 140
040-48540895
9493191380 (Mobile connectivity is very poor in my residential complex. Use Land line please)
Pl See T SEWA Blog for regular updates at https:// www.tsewa.org

***********************************************
DETAILED    PAPER  By Brig CS Vidyasagar
          
         (THIS PAPER CAN BE DOWNLOADED FOR YOUR RECORD - CLICK HERE)

Dear Sir,
1.        Some of the members of TSEWA and non-members have been requesting me to carry out an analysis of NFU (Non Functional Upgradation) on seeing the table of NFU from Col Mukul Dev, a serving JAG branch officer who is fighting for all of us at Hon’ble Supreme Court for grant of NFU to Armed Forces Officers. I am not an expert on NFU hence my analysis may not be correct. This mail is entirely based on what I understood from the Facebook page of Col Mukul Dev and some letters from Min of Personnel, Public Grievances and Pensions, Govt of India on NFU.

2.        Essence of NFU. Col Mukul Dev took pains to give a chart which shows date of empanelment of IAS officers year wise as Deputy Secretaries, Directors, Joint Secretaries and Additional Secretaries and posted to the Central Government. In essence, NFU is:  if an IAS officer of a batch is posted to the Centre in PB – 3 or PB – 4 or HAG grade, then all Officers of other Group A Organised Services two years senior to the IAS Officer also will get pay scale of that IAS Officer. See the table at para 7 below.
(a)   Earlier the time taken for Organised Group A Services to reach the level of Director, Joint Secretary (JS), Additional Secretary (AS) was unacceptably very high due to limited number of vacancies in higher ranks.
(b)   Due to limited number of vacancies in higher ranks of JS and AS, most of the officers of these Organised Group A Services retired in lower cadres / posts / ranks.
(c)   NFU de-links vacancies to get pay of higher post.
(d)   NFU gives only pay promotion. A Director level officers in Min of Railways or any other ministry will continue to function as Directors but will get pay of Joint Secretary if an IAS Officer two years junior to them is empanelled and posted to Central Govt in the level of Joint Secretary. The time gap to get same pay between IAS Officers and Officers of Group A services due to NFU is stands reduced to 2 years.
(e)   NFU does not promote an officer to higher post. Only he gets higher pay to reduce the time taken to get pay of higher rank.
(f)    NFU helps officers of Organised Group A services to draw higher pay at younger service for longer time till they retire.
(g)   Prior to NFU one could not become a Joint Secretary and draw pay of JS unless there is a vacancy. Now NFU grants higher pay to Director two years after an IAS officer of his batch is empanelled as JS and posted to Central Govt.
(h)   Take Home Pay of all Organised Group A Services goes up due to NFU.
(j)     NFU does not in any way create command & control problems as officers are not promoted to higher ranks but only are given pay of higher ranks.
(k)    In a ministry where officers from IAS and other Group A services function jointly, every one functions as per his actual rank (Deputy Secretary / Director / JS / AS etc). But even Officers of the rank of Dy Secy gets pay of Director but works as Deputy Secretary only. Therefore Dy Secy carries out all tasks given to him by his boss i.e. Director.
3.        Implication of NFU to Armed Forces.

(a)   The Hon’ble AFT Delhi gave out judgment  in favour of Col Mukul Dev for grant of NFU to Armed Forces w.e.f. Jan 2006 but arrears are to be paid only for three years from 23 Dec 2013 to 23 Dec 2016. Most of the AFTs give arrears only for three years from date of filing the case  / date of judgment .
(b)   NFU improves pay scale of an Armed Forces Officers depending upon when an IAS officer two batches junior to them is posted to the Central Govt in the grade of Director (Colonel), Joint Secy (Maj Gen) and Addl Secy (Lt Gen).
(c)   The pay scale of an Armed Forces officer today goes up only if he gets promoted to next rank. 60 to 70% of officers get superseded at every selection rank from Colonel to Lt Gen due to lack of vacancies. 100% IAS Officers reach the rank of Jt Secy (Maj Gen) in 17 years whereas only 2% Armed Forces officers reach the rank of Maj Gen / R Adm / AVM at service of 32 to 34 years. The NFU de-links vacancies from getting higher pay. You can still be a Major and draw pay of Col or Maj Gen or Lt Gen.
(d)   When a 1992 batch IAS officer is posted as Director in Central Govt on 02 Jul 2006, then all Lts / Capts / Major of 1990 batch in PB – 3 will be given pay of PB – 4 of Director (Colonel) irrespective whether there are vacancies or not. But these officers will perform duties of Major. NFU does not promote Officers to higher rank but only gives pay of higher rank. This benefits RCOs / SCOs / SL Officers who might not be able to put in 19 years commissioned service but thanks to NFU they will get pay of Colonel when they cross 14 years of commissioned service. W.e.f 18 Dec 2004 all commissioned Officers are promoted as Lt Col due to AVS Committee.
(e)   Similarly when a 1985 batch IAS officer is empanelled to Jt Secy on 03 Jan 2006, then  all Armed Forces Officers of 1983 batch (two years senior) also get pay scale of Jt Secy (Maj Gen) from 03 Jan 2006.
(f)    When a 1982 batch IAS officer is empanelled as Addl Secy on 07 Aug 2012, then all 1980 batch officers get pay scale of  Lt Gen. Please see the comparative chart in para 7 below when IAS batches are posted to the Centre and when Organised Group A Services to which Armed Forces also belong to, get pay scale of higher ranks in NFU.

4.        Many who speak to me ask all kinds of questions on NFU. I am therefore giving in one long mail running to 37 pages of my understanding of NFU and how it will benefit both serving and retired Armed Forces Officers. You need lot of patience to understand how I went about working out the following: -
(a)   Fixation of notional pay to serving officers w.e.f 01 Jan 2006.
(b)   Revised pay of serving officers in Dec 2013.
(c)   Arrears of pay of serving officers from 23 Dec 2013 to 23 Dec 2016 (as per judgment of AFT Delhi).
(d)   Pension to Pre – Jul 2014 retired officers in OROP – 2013.
(e)   Pay for serving officers w.e.f Jan 2016.
(f)    Pension of retired officers w.e.f. Jan 2016.
(g)   Revised pensions in OROP – 2018  to all Pre – Jul 2019 retired officers.
(h)   I could be totally off the mark, therefore, do not go by what I stated in this mail. But try to understand the rationale as to how these have been arrived at.

5.        To understand NFU, one has to go through the following letters and illustration given for IPS / IFS (Indian Forest Service) etc: -
(a)   Govt of India, Ministry of Personnel, Public Grievances & Pensions Office Memorandum (OM) No:  14021 / 3 /2008 – AIS(II) dated 16 Mar 2010 and illustration: -
ILLUSTRATI0N:- If officers of 1987 batch of IAS are empanelled as Joint Secretary in the grade pay of Rs. 10,000/- in PB-4 and an officer of the batch gets posted at Centre (under Central Staffing Scheme) on 15th January 2008, all the officers of the 1985 batch of IPS/IFS who have not been promoted to the IGP / CCF grade and who are eligible for the same on 1/ 1/2007 for the panel year 2007-08, would be granted the same grade on non-functional basis under these instructions w.e.f. 15 January, 2008. Same would be the case in the event of posting of an officer of particular batch as Deputy Secretary / Director etc under Central Staffing Scheme.
(b)   Govt of India, Ministry of Personnel, Public Grievances & Pensions Office Memorandum OM No: 14017 / 64 /2008 – Estt (RR) dated 24 Apr 2009
Annexure 1
All the prescribed eligibility criteria and promotional norms including 'benchmark' for up-gradation to a particular grade pay would have to be met at the time of screening for grant of higher pay-scale under these orders.
A screening committee would be formed by the Ministry for implementation of these orders. There would be three members in committee so formed and they would at-least be one level above the grade for which up-gradation is being considered. Secretary of the Ministry concerned would chair the committee.
All instructions concerning grant of non-functional up- gradation presently applicable in the case of grant of NFSG to officers of Group 'A' Services would apply in the event of penalty, disciplinary proceedings, suspension etc.
(c)     FAQs issued by Department of Personnel & Training, Ministry of Personnel, Public Grievances & Pensions.

How Does NFU Affect Command & Control in a Unit of Armed Forces?
6.      Please see how Armed Forces are being downgraded with all kinds of silly and illogical reasons as explained below: -
(a)   In any Unit in the Armed Forces, you have CO of the rank of Colonel or equivalent with 15 to 18 years of  commissioned Service or seniority for promotion. 2IC is a Lt Col or equivalent with service of 13 or more years, Coy Cdrs are Majors or equivalent with 6 to less than 13 years’ service or Lt Cols with service of 13 years or more, Platoon Cdrs (in Engr Regts) are Capts or equivalents with less than 6 years’ service and Lieuts or equivalents with service less than 3 years. A Lt can only be promoted to the rank of Capt if there is a vacancy.  So is the situation in other ranks in a unit. What does NFU give to these officers?
(b)   Over a period of time IAS officers have pushed Armed Forces Officers lower in every successive pay commission. Every IAS Officer with 17 years’ service is a Joint Secretary whereas only 2% of Armed Forces Officers become Maj Gen / R Adm / AVMs at 32 to 35 years’ service. A Brigadier with 31 years’ service is junior in hierarchy to an IAS officer of 17 years’ service. Every IAS officer draws higher pay of Colonel or Maj Gen or Lt Gen at much younger age and retires  in rank of Addl Secy and takes higher pay for longer time and also enjoys highest pension. Only 0.08% of Officers can hope to become Lt Gen in 36 to 39 years of service. But all IAS officers become Addl Secys at service of 29 years. A  Maj Gen with 38 years’ service is junior to an IAS officer of 29 years’ service.
(c)   IAS, IPS Officers with the help of politicians created plethora of posts equivalent to Army Chief / Army Cdr. UP has 26 Director General level posts drawing pay of Army Cdr. A small state like Haryana has 4 DGPs.
(d)   Is this blatant down gradation in pay and perks acceptable to Armed Forces Officers?
(e)   Now coming back to unit. CO draws pay of Jt Secy (Maj Gen)  if he puts in 19 years’ service. 2IC draws pay of Director (Colonel) if he puts in 16 years’ service and need not be promoted as Colonel. But he still performs duty of 2IC. Similarly other officers. Everyone gets higher pay after IAS officer two years junior is empanelled to PB – 3 (Lt to Maj), PB – 4 (Lt Col to Maj Gen) and HAG (Lt Gen) yet performing duties of their ranks. 2IC still carries out all orders of CO. Coy Cdrs still implement orders of 2IC. Other officers will still obey orders of their seniors in the unit. Then where is the command and control problems that will arise in Armed Forces if NFU is granted? IAS never wanted officers of Armed Forces to get anything and that is the only reason Min of Def is opposing NFU to Armed Forces very strongly in Hon’ble Supreme Court giving silly and stupid examples saying officers live in palatial bungalows.

7.      Beneficiaries of NFU. Once NFU is sanctioned to Armed Forces Officers, pay will be fixed notionally w.e.f. Jan 2006. But benefit of arrears will only be given for three years from 23 Dec 2013 to serving officers as per judgment of AFT Delhi. The following are likely to get financial benefit from 2013.This is my understanding of NFU after going over many letters on this subject issued by Min of Personnel, Public Grievances and Pensions from time to time. IAS officers count their one year training in LBSNAA of Mussorie (similar to IMA Dehradun / OTA Chennai) as service where Armed Forces officers count their service only from date of passing out from these academies. In effect 100% IAS officers who puts in 16 years ground service become Jt Secy (Maj Gen).


(a)   Director (Level 12) / Colonel.

IAS Batch
Orgnised Group -A Services
Year of Posting / Empanelment
2004
2002
01-Jul-18
2003
2001
01-Jul-17
2002
2000
01-Jul-16
2001
1999
01-Jul-15
2000
1998
01-Jul-14
1999
1997
01-Jul-13
1998
1996
01-Jul-12
1997
1995
01-Jul-11
1996
1994
01-Jul-10
1995
1993
01-Jul-09
1994
1992
01-Jul-08
1993
1991
01-Jul-07
1992
1990
01-Jul-06























(b)   Jt Secy (Maj Gen). The table below shows time frame when IAS officers of various batches are empanelled to Joint Secretary and how officers of Organised Group A Services who are two years senior to IAS are also empanelled to Jt Secy even if vacancies are not existing in their department. NFU permits them to draw pay of Jt Secy (Maj Gen) even when they perform duties of Directors (Colonel).

IAS Batch
Group A Officers Batch
Date of Empanelment to Joint Secretary
1985
1983
03 Jan 2006
1986
1984
26 Oct 2006
1987
1985
15 Feb 2007
1988
1986
19 Mar 2007
1989
1987
18 Feb 2009
1990
1988
24 May 2010
1991
1989
21 Feb 2011
1992
1990
04 Apr 2012
1993
1991
19 Nov 2012
1994
1992
08 Jun 2013
1995
1993
01 Mar 2014
1996
1994
13 Oct 2014
1997
1995
01 Apr 2015
1998
1996
17 Mar 2016
1999
1997
22 Aug 2016
2000
1998
18 Sep 2017
2001
1999
01 Aug 2018

(c)   Addl Secy (Lt Gen). Thanks to NFU, 100% IAS officers draw pay and pension of Addl Secy whether vacancies exist or not from 28 years of ground service.
IAS Batch
Organised Group A Services
Date of Empanelment to  Addl Secy
1982
1980
07 Aug 2012
1983
1981
02 Jul 2013
1984
1982
10 Jul 2014
1985
1983
29 Jul 2015
1986
1984
14 Jul 2016
1987
1985
21 Jul 2017
1988
1986
21 Jul 2017
1989
1987
17 Sep 2018

8.     Effect of NFU on Armed Forces Serving & Retired Officers.
(a)   De-linking of Pay from Rank. NFU delinks pay from rank. One can be in lower rank but get pay of higher rank performing duties of lower rank if they put in required number of years of commissioned service as explained already.
(b)   Arrears of Pay from 23 Dec 2013 to 23 Dec 2016. The pay of serving Armed Forces Officers in NFU is to be fixed w.e.f. Jan 2006 and arrears of pay are to be paid to serving officers for three years from 23 Dec 2013 to 23 Dec 2016.
(c)   Pension of Officers Retired in Calendar Year 2013. Pension of all Armed Forces Officers retired in calendar year 2013 has to be re-fixed due to NFU.
(d)   OROP – 2013.  The pay of all serving officers has to be re-fixed w.e.f. Jan 2006 in NFU. NFU also enhances pensions of Post – 2006 retired officers. Some of serving officers would have retired in calendar year 2013 and sanctioned pension in the rank held by them at the time of their retirement. But NFU gives them pay promotion. If they belong to 1992 batch then they are entitled for NFU from 08 Jun 2013 i.e. pay /pension of Maj Gen for their length of service (please see table at para 7 above). Their pay goes up hence their pension also goes up in 2013. OROP – 2013 and Circular 555 was based on the concept that pension of all past retirees irrespective of date of retirement is same as Average Pension of all retired in calendar year 2013 in the same rank and same qualifying service of past retirees. Therefore, I strongly feel, all Pre – 2006 retirees also may get benefit of NFU and their pension also may be re-fixed in OROP - 2013. If their pension goes up because of NFU, then arrears of OROP from Jul 2014 to Mar 2016 also should be paid over and above what has been paid already from Mar 2016 to Sep 2017. (AFT Delhi in their judgment stated that arrears should be paid only for three years from 23 Dec 2013 to 23 Dec 2016). Therefore Pre – 2006 retired officers also may get arrears of pension for three years only.  Even if not paid due to some weird interpretation of NFU to Armed Forces, then OROP – 2018 will ensure all Pre – 2006 pensioners will get pension of Maj Gens and Lt Gens.
My above contention is supported by Col Mukul Dev:
(From Col Mukul Dev's Time line)
This the equivalence chart...... where we stand. The second coloumn is the  date of commissioning, and the corresponding coloumns are ..... which scale you guys will be eligible for.... from which date. Eg I am 1988 commision.... so I get into level 14 wef 24 may 10 and will be eligible for level 15 wef Sep 19. 
Similarly you can see your commision year incoloumn 2 and accordingly find out your status.....

NFU (Non Functional Upgradation) was introduced from Jan 2006 in r/o Civilian Group A Officers as per the recommendations of 6cpc.  NFU was not implemented in r/o Armed Forces Officers. Under NFU pay of all Group A Civilian Officers was equated to the pay of IAS Officers with a gap of two years.
NFU for civilian Officers has been implemented as under:

"If an IAS Officer of 1993 seniority is empanelled for the post of Joint Secy say in 2010, all other civilian  Officers of 1991 seniority will be placed in the pay scale of Joint Secy simultaneously (irrespective to their present posts). This is equally applicable to other junior and senior posts"  

According to above NFU policy, on implementation of NFU for Armed Forces Officers all Officers of 1991 will be placed in the pay scale of Major General (equivalent to Jt Secy) in 2010 irrespective to their ranks. Generally, an IAS officer is empanelled for the post of Jt secy in about 17 years. 
As per the judgment of AFT Delhi, NFU (as visualized by 6cpc and claimed by petitioners) is to be implemented in r/o all Armed Forces Officers (petitioners and non-petitioners) . However, arrears on a/c of NFU are to be restricted for a period of three years preceding the date of judgment. Since AFT Delhi judgment has been pronounced on 23 Dec 2016, financial benefits will accrue from 23 Dec 13.
In accordance with the above judgment, basic pay in r/o all armed forces officers will be re-fixed notionally right from January 2006 onwards. But arrears will be paid only from 23 December 2013 onwards. This arrangement will raise the pension of those Officers who have retired during 2013 (with arrears from 23 December 2013) thereby raising the average pension of 2013 retiree officers. 
Since OROP (effective from July 2014 in r/o all pre Jun 2014 retiree officers) is based on the average pension of 2013 retiree officers, pension under OROP  will also be raised. This will have consequent impact on 7cpc pension.
NFU under 7cpc has not yet been implemented. AFT Delhi judgment clearly stipulates that armed forces officers will be treated at par with other civilian officers with regard to implementation of NFU under 7cpc.
(e)   Pay of Serving Officers w.e.f. Jan 2016. The pay of all serving officers in 7th CPC will go up considerably from Jan 2016 as most of them now are eligible for pay of Director (Col) or Jt Secy (Maj Gen) or Addl Secy (Lt Gen) depending when IAS batch two years junior to them is empanelled to Director / Jt Secy / Addl Secy in Central Govt.
(f)    Pension of Retired Officers w.e.f. Jan 2016. Pension of all Pre – 2016 retired officers and family pensioners also is likely to go up if their pensions have been enhanced in OROP – 2013 due to NFU. Pension in Jan 2016 = (OROP – 2013 due to NFU x 2.57). If not then it will be paid from OROP – 2018.
(g)   Pay of Serving Officers w.e.f. Jan 2016. Earlier Lt Col got pay for his rank and length of service. But in Dec 2015, his pay will be enhanced to that of Maj Gen due to NFU
(k)    OROP – 2018. All Pre – Jul 2019 pensioner Officers and Family pensioners of Officers will get higher pension in OROP – 2018.

9.      Origin of NFU Case.  This is my understanding of NFU. If you consider I am wrong, then do not waste your time in reading this long article hereafter.
(a)   As we all know,  Col Mukul Dev, a serving Officer of JAG branch filed a legal case in AFT Delhi for grant of NFU to Armed Forces’ Officers. Hon’ble AFT Delhi was pleased to give judgment on 23 Dec 2016 directing Govt of India to grant NFU to Armed Forces Officers from Jan 2006 and pay arrears for a period of three years from 23 Dec 2013.
(b)   Aggrieved by judgment of AFT Delhi, Min of Def filed a case in Hon’ble Supreme Court challenging judgment of AFT Delhi.
(c)   As per information being given by Col Mukul Dev from time to time, it is understood, arguments in the Hon’ble Supreme Court are completed by 12 Mar 2019 and judgment is reserved.
(d)   Hon’ble Supreme Court is likely to deliver their judgment in Apr 2019 or middle of May 2019 at worst.  
(e)   As CAPFs have already won the case for NFU in Hon’ble Supreme Court, there is every possibility of Armed Forces Officers are also likely to get NFU very soon.

10.      Let us see what the 6th CPC stated about NFU. I have taken it from 6th CPC Report submitted to the Government. The rationale for granting NFU is to bridge vast disparity in pay & promotions between IAS and other 64 Organised Group A services. The recommendation of 6th CPC on NFU is given below.

Para: 3.3.12 (Page 173-174)
Whenever any IAS officer of a particular batch is posted in the Centre to a particular grade carrying a specific grade pay in pay bands PB-3 or PB-4 , grant of higher pay scale on non-functional basis to the officers belonging to batches of organised Group A services that are senior by two years or more should be given by the Government. The higher non-functional grade so given to the officers of organised Group A services will be personal to them and will not depend on the number of vacancies in that grade. These officers will continue in their existing posts and will get substantial posting in the higher grade that they are holding on non-functional basis only after vacancies arise in that grade. This will not only ensure some sort of modified parity between IAS and other Central Group A services but will also alleviate the present level of disparity existing between promotional avenues available to different organised Group A services. It is also observed that eligibility criteria prescribed for promotion to SAG in different technical and non-technical organised Group A services are different. In order to bring uniformity, these eligibility criteria should be uniform across various organised Group A services. The Commission recommends accordingly.
NFU for Easier Understanding
11.    Sequence of Activities to Implement NFU. The following actions may have to be taken before NFU results in higher pay and pensions to Armed Forces Officers serving, retired and family pensioners of Officers  : -
(a)   Min of Def will take some time to issue detailed implementation instructions of NFU for serving and retired officers.
(b)   First action by Ministry of Defence is to get approval from Union Cabinet to include Armed Forces also as Organised Group A service.  A cabinet paper on inclusion of Armed Forces as Organised Group A Services has to be made after completing the action mentioned in the following sub paras.
(c)   The Ministry of Defence has to get inputs from three Service HQs regarding formation of Screening Committees and bench marks to filter serving officers to be eligible for NFU.
(d)   PCDAs have to make tables for revision of pay for serving officers due to NFU.
(e)   PCDAs have to make LPCs (Last Pay Certificates) for those retiring.
(f)    PCDA (Pensions) Allahabad / Prayagraj has to make tables and issue a Circular similar to Circular 555 to enhance pensions in OROP – 2013 for officers retired prior to Jul 2014.
(g)   Ministry of Finance (Expenditure) has to give concurrence for additional expenditure on sanction of NFU.
(h)   After actions from sub para 11(c) to 11(g) are completed, the  Cadre Controlling Authority (CCA) i.e. Ministry of Defence has to prepare a cabinet paper to grant status of Organised Group A services to Officers of Armed Forces and place it in the cabinet meeting.
(j)     The Union Cabinet has to give approval to bring Armed Forces also as Organised Group A Services.
(k)    Then Govt of India, Ministry of Defence declares Armed Forces as one of the Organised Group A Services and grant NFU to serving officers w.e.f. Jan 2006.
(l)     PDAs (Banks / Treasury Offices / DPDOs) will work out new pensions based on the new circular on OROP – 2013 & OROP – 2018 and commence remittance of revised pensions and also arrears.
(m)  Time Lines. You can make out how much time it will take before you get higher pay or pension as all actions listed out have to be completed.  Arriving at financial outgo per year due to NFU and how arrears of pay and pensions have to be paid in one go or in instalments will take lot of time. My assessment is even if done on war footing to avoid contempt of court, it will take minimum one year. This will also delay OROP – 2018.

12.    This paper is laid out in the following parts: -
(a)   Part I: Approximate pay of serving officers from 23 Dec 2013 to 23 Dec 2016 and likely arrears as per judgment of AFT Delhi.
(b)   Part II: Revised OROP – 2013 due to NFU and likely increase in pension & arrears to Pre – Jul 2014 Officers and family pensioners.
(c)   Part III: Approximate Increase in pay of serving Officers in Jan 2016 and approximate arrears from 01 Jan 2016 to date of implementation of NFU.
(d)   Part IV: Approximate increase in Pension of Pre – July 2014 Officers and Family Pensioners w.e.f. Jan 2016 and approximate arrears.
(e)   Part V: Likely pensions in OROP – 2018 for all those who retired till Jul 2019.
(f)    Part VI: Likely hike in pay and pension of Majors.
Part I: Approximate Arrears of Pay of Serving Armed Forces Officers from 23 Dec 2013 to 23 Dec 2016

How does NFU Enhance Pay of Serving Armed Forces Officers?
13.    As mentioned earlier, if a 1985 batch IAS officer is empanelled as Jt Secy in Central Govt on 03 Jan 2006, then all batches senior by two years i.e. 1983 batch of Armed Forces Officers also will get pay scale of Jt Secy (Maj Gen). All Officers of 1983 batch cleared by Screening Committee will get pay of Maj Gen fixed from 03 Jan 2006. This pay will increase with annual increments. PCDA(O) Pune and other PCDAs of Navy and IAF have to work out revised pay for serving officers as per NFU notionally w.e.f. Jan 2006 and then remit the arrears of Maj Gen and Lt Gen for the period 23 Dec 2013 to 22 Dec 2016 to them.

14.    Request. To get accurate results, I need data of pay and pension of Officers retired in calendar years 2016 & 2018 all ranks from Lieut to Lt Gen from the three services. The retired officers can scan and send me their PPOs to my e-mail id: csvidyasagar@gmail.com so that I can refine my calculations. For any reason whatsoever, you cannot send PPO  then kindly send me the following information: -
                (a)     Rank.
          (b)     Date of Commission.
          (c)     Date of Retirement.
          (d)     Date of Seniority for promotion.
          (e)     Pension sanctioned.

15.    In the absence of data, to understand how NFU enhances pay of serving Armed Forces Officers, we can work out the figures approximately. To work out arrears of pay for three years (Dec 2013 to Dec 2016) of such serving officers we need data such as (a) Rank (b) Length of commissioned service batch wise (c) Pay in previous rank and (d) Pay in the higher rank which we do not have. As we do not have data, yet we can make an endeavour to work out roughly how much NFU will enhance pay / pension of all officers from Lieut to Lt Gen. We have to take the following steps to get approximate arrears of pay for three years from 23 Dec 2013. This is as per my understanding of NFU and I could be totally wrong. But see the rationale as to how the revised pay has been worked out.

Fixation of Pay of Serving Officers in 2013
16.    Step 1. We just have to find out what is the pay of Maj Gen & Lt Gen and their equivalents in the other two services in Dec 2013 depending upon when IAS officers of various batches got posted to Central Govt in the cadre of Director / Joint Secretary / Additional Secretary. For example a  Lt Col to Brig of 1983 batch will also get pay of Maj Gen and also get arrears of pay from 23 Dec 2013 to 23 Dec 2016 as IAS Officers of 1985 batch are empanelled as Jt Secy w.e.f. 03 Jan 2006. But they were paid in their  ranks of Lt Col to Brigadier so far, hence, their pay will be enhanced to that of Maj Gen due to NFU w.e.f. 23 Dec 2013. Similarly serving Maj Gens will be paid pay of Lt Gen whenever IAS officer two batches junior are empanelled in Central Govt as Addl Secy.

Approximate Arrears of Pay from 23 Dec 2013.  
17.    Step 2.       Arrears of pay is difference between Pay Due as Maj Gen and Pay Drawn on 23 Dec 2013 for Lt Col to Brig.  
(a)     Due = pay now authorised in the rank of Maj Gen
(b)     Drawn = pay actually drawn in the rank of Lt Col / Colonel/ Brig.
(c)     Arrears = Pay of Maj Gen on 23 Dec 2013 – Pay of Lt Col / Col / Brig as on 23 Dec 2013.

18.    Step 3: Revised Pay of Col (TS). Our aim is to arrive at pay of Maj Gen in 2013. That will be the pay of all serving officers of 1983 or earlier batches irrespective of rank they held (Lt Col to Brig). See the table below and note how the pay of Maj Gen is progressed every year by giving increment @ 3% of (Pay in Pay Band + Grade pay) w.e.f. Jan 2006 till Jun 2009. Say a Lt Col of 1983 batch is screened and found fit to get NFU. His pay will be enhanced as under:-
(a)   Arrears : Pay of Maj Gen – Pay actually drawn as Lt Col till 25 years of service i.e. Jun 2009.
(b)   Arrears: Pay of Maj Gen – Pay of Col (TS) drawn when the officer was promoted as Col (TS) after completing 26 years’ commissioned service in Jun 2009.

19.    Step 4: Approximate Pay of Maj Gen.  As you can see if you have data of pay of Maj Gen retired in 2013 and pay of Col (TS) retired in 2013 then you can simply work out his arrears for three years. That is why I am asking retired officers to give me the data of their pay and pension if they have retired in calendar year 2013. In the absence of data, you have no other option but to use available data of pay and pensions. For this, you have to see table of pay scales of Armed Forces Officers in SAI 2 / S / 2008, pensions in Circular 555 and pay from Jan 2016 from New Defence Pay Matrix published as Gazette of India on 22 Jun 2017 enhancing IOR from 2.57 to 2.67. In the absence of data, we can take OROP – 2013 pension of Maj Gen for 30 years’ service (1983 batch officer would have put in 30 years’ commissioned service by Jun 2013) from Circular 555 which shows it as Rs 37,275. Pay is 2 x 37275 = Rs 74,550. Add increments @ 3% of (PIPB + GP). You can get PIPB from total pay by simple equation
Pay = PIPB + GP of Rs 10,000 + MSP of Rs 6,000 (notional)
PIPB in 2013 = pay – GP of Rs 10,000 – MSP of Rs 6,000
Increment to get PIPB of 2014 = 0.03 x (PIPB of 2013 + GP of Rs 10000) = Rs 2,060.
(PIPB         -        Pay in Pay Band
GP    -        Grade Pay
MSP -        Military Service Pay)
Repeat this exercise till Dec 2015.
Col (TS) has put in 30 years’ service till Jun 2013.
His service is 31 years in Jun 2014 and his pension is hiked to that of Lt Gen of 31 years’ service due to NFU from Jul 2014. This will continue till Dec 2016.



20.    Step 5: Approximate Pay of Maj Gen / Lt Gen from 23 Dec 2013 to 23 Dec 2016. The Maj Gen with 30 years’ service in 2013: -

Maj Gen : 30 Years of Service
Year
PIPB
GP
Increment
Pension
Total Pay
2,013
58,550
10,000
2,060
37,275
74,550
Jan to Jun 2014
60,610
10,000
76,610
Lt Gen from Jun 2014 : Rs 67,000 - 79,000
Jul to Dec 2014
77,671
2,015
79,000
2015 Dec
79,000
2016 Jan
2,03,030
New Pay Matrix with IOR of 2.67
2,11,300
Jul to Dec 2016
2,17,600

  
 21.    Pay of Col (TS) from Dec 2013 to Dec 2016


Col (TS) of 1983 Batch in 2013 : 30 Years of Service
Year
PIPB
GP
Increment
Pension
Total Pay
2,013
57,560
8,700
1,990
36,130
72,260
2,014
59,550
8,700
2,050
37,125
74,250
2,015
61,600
8,700
2,110
38,150
76,300
2015 Dec
63,710
8,700
78,410
2016 Jan
1,86,094
New Pay Matrix with IOR of 2.67
1,86,200
2016 Jul to Dec
1,91,800































22.    Step 6: Approximate Arrears of Pay of Col (TS). The arrears is the difference in pension between Maj Gen from Dec 2013 to Jun 2014 and Col (TS). From Jul 2014 it is difference in between Lt Gen with 31 years’ service and Col (TS). This is repeated till 23 Dec 2016.

Period
Arrears
DR in %
DR Amount
Total Arrears
Arrears for the Period
23 to 31 Dec 2013
2,290
90
2,061
4,351
1,263
Jan to Jun 2014
3,421
100
3,421
6,843
41,055
Jul to Dec 2014
2,700
107
2,889
5,589
33,534
Jan to Jun 2015
590
113
667
1,257
7,540
Jul to Dec 2015
590
119
702
1,292
7,753
Jan to Jun 2016
25,100
0
0
25,100
1,50,600
Jul to 23 Dec 2016
25,800
2
516
26,316
1,51,105
3,91,587

Note:
1.      These calculations are based on data taken from Circular 555 of OROP - 2013. To get correct arrears, one must know the correct pay of Maj Gen and Col (TS) which is not available. Therefore take these figures as just representative and these may not be correct. The correct arrears may be different than what is shown in the table above. But the approximate arrears of Rs 2,53,870 could be somewhat closer to accurate arrears if we have the correct data.
2.      Secondly you may not find a Lt Col who puts in 30 years’ service as most of them when superseded take PMR.
My Calculations Proved to be Correct
3.      I requested retired officers of 2016 and 2018 to scan and send me their PPO. Immediately Lt Col Pravesh Kumar Singh (SL-4529X) sent me his PPO. I worked out assuming I only know his length of service (19 years 2 months being SL Officer) and rank (Lt Col). See my calculations and what his PPO shows.

PPO of Lt Col PK Singh
DOC
25 Apr 1997
DOR
30 Jun 2018
Length of Service
19 years 2 months
DOB
01 Jul 1961
Period
PIPB
GP
Increment
Total Pay
Pension
2013
38,770
8,000
1400
52770
26385
2014
40,170
8,000
1450
54,170
2015
41,620
8,000
1490
55,620
2015 Dec
43,110
8,000
2016
1,31,353
New Def Pay Matrix
1,32,400
Jul-16
1,36,400
Jul-17
1,40,500
Jul-18
1,44,700
Pension = 0.5 x (144700+15500)
=80,100
His PPO shows his Matrix Pay as Rs 1,44,700. This figure tallies with my calculations shown above to the dot. It shows my method of finding out pension in future date by taking pension given in Circular 555 is absolutely correct. Thank you Lt Col PK Singh.
23.    In similar manner officers of various ranks can find out their pay and arrears for the period 23 Dec 2013 to 23 Dec 2016 for various length of commissioned service.

Part II: Revised OROP – 2013 due to NFU for Pre – Jul 2014    Retired Officers
24.    Principle. Pension of Pre – Jul 2014 Officers in OROP-2013 was same as the Average of Pension (= Maximum Pension + Minimum pension) / 2 of all those who retired in calendar year 2013 with same rank and length of qualifying service. With NFU, pay of all Officers who retired in calendar year 2013 goes up so is their pension. All Pre – Jul 2014 officers will also get same pension as those officers retired in calendar year 2013 whose pension has been enhanced due to NFU. 60% of the pension of the deceased husbands is the Ordinary family pension to widows of deceased officers.
25.    Methodology of Revision of Pension of Those Officers Who Actually Retired in Calendar Year 2013.
(a)   Revise pay of all Officers in NFU w.e.f. Jan 2006 based on date of empanelment of IAS officers. Method of working was shown in Part I.
(b)   PCDA (Pensions) Allahabad has to issue  a Circular similar to Circular 555 showing tables of OROP for all Pre – Jul 2014 Officers based on revised pensions of all those offices who retired in calendar year 2013 with pensions of Maj Gen / Lt Gen.
OROP Arrears of Colonel (SG/TS) with 30 Years’ Commissioned Service in 2013 (1983 batch) and Retired in Calendar Year 2013.
26.    Let us take a simple example of an officer commissioned in 1983 to understand how OROP – 2013 is to be re-fixed by PCDA (Pensions) Allahabad by taking LPCs from PCDA (O) Pune of those officers retired in calendar year 2013. All officers are promoted as Lt Col after 13 years of commissioned service w.e.f. 18 Dec 2004 due to AVS Committee. The Lt Col of 1983 batch is promoted to the rank of Col (TS) after 26 years of commissioned service by Jul 2009.  But with NFU having been cleared by AFT Delhi and hopefully by Hon’ble Supreme Court, pay of this Officer will be fixed in NFU from Jan 2006 in the rank of Maj Gen though performing duties of Col (TS). But he will be given arrears of pay only for three years from 23 Dec 2013.
27.    Aim:  To ascertain pay of Maj Gen and of Col (TS) in 2013 to find out arrears from Jul 2014 to Mar 2016 .
28.    When Officers retire in 2013, their Average Pension is given as OROP – 2013. All Pre – Jul 2014 retired officers also will get higher pension of Maj Gen if they put in required commissioned service. Now in NFU, the pay is based on commissioned service and is not linked to rank at all. Therefore depending upon the length of service, all retired officers will get pension in OROP – 2013 of Col / Maj Gen / Lt Gen. Lt Col commissioned in Jun 1983 becomes Col (TS) in Jun 2009 having put in 26 years’ commissioned service. His pension in NFU is as under;-
(a)   Arrears in 2013 = Pension in the rank of Maj Gen for 30 years’ service – Pension in the rank of Col (TS) for 30 years’ service.
29.    Approximate Revised OROP in 2013 and Arrears to be Paid Over and Above What Has Been Paid Already. To work out pension in the rank of Maj Gen in 2013, we know Average pension from Circular 555. As you can make out even if an officer is Col (TS), his pension will be that of a Maj Gen. Once new Circular showing OROP – 2013 – NFU is made then  PDAs (banks, treasury offices or DPDOs) will work out revised OROP – 2013 due to NFU and pay arrears if due.  
30.    We do not have revised average pay of officers in NFU who retired in calendar year 2013 to fix OROP for all Pre – Jul 2014 retired officers. But we can hazard a guess to know approximately what would be OROP of Pre – Jul 2014 retiree officers for any rank. For ease of understanding, let us take a case of an officer of 1983 batch (30 years’ service in 2013) who is eligible to get NFU from 03 Jan 2006 (IAS Officer of 1985 batch was empanelled from 03 Jan 2006). The arrears of OROP – 2013 are:-
Pension of Maj Gen in 2013 of 30 years’ service = Rs 37,275 pm (see para 20 above and Circular 555)
Pension of Col (TS) of 30 years’ service in 2013 in OROP = Rs 36,130 (given in Circular 555)
Arrears = Rs 37275 – 36130 = Rs 1,145 pm + DR



Period
Arrears
DR in %
DR Amount
Arrears + DR
Arrears for Period
Jul 2004 to Dec 2014
1,145
107
1,225
2,370
14,221
Jan 2015 to Jul 2015
1,145
113
1,294
2,439
14,633
Jul 2015 to Dec 2015
1,145
119
1,363
2,508
15,045
Jan to Mar 2016
1,145
0
0
1,145
3,435
Total
47,334

Note: This is only representative of how to work out arrears of OROP due to NFU. You have to work out your arrears for your rank and length of service once new Circular for OROP – NFU is issued by PCDA (Pensions) Allahabad / Prayagraj.
Part III:  Pay of Officers in 2016 Due to NFU         
31.    Principle. Pay of serving officers has gone up from 01 Jan 2016 by formula
pay in Jan 2016 = Pay in Dec 2015 x 2.57 in 7th CPC.
The new defence pay matrix issued vide Gazette Notification of 22 Jun 2017 enhancing IOR from 2.57 to 2.67 of Lt Cols to Brigadiers shows what is the pay w.e.f Jan 2016. NFU enhances pay of all Officers from Jan 2006 in the rank of Maj Gen & Lt Gen. But these officers drew pay in their existing ranks only (Lt Col to Brig). Now their pay is required to be revised as per NFU in the rank of  Maj Gen /  Lt Gen and arrears from 01 Jan 2016 so arrived at are to be paid to date of implementation of NFU.
32.    Let us take a case of pay of Lt Col with 22 years’ service in Jan 2016 (commissioned in Dec 1993). 1995 batch IAS Officers are empanelled as Jt Secy in 01 Mar 2014. Hence Lt Col is entitled to NFU from 01 Mar 2014.
Pay in Jan 2016 = Pay in Dec 2015 of Maj Gen  i.e. (PIPB +GP) x 2.57.
Then see where does it fit in New Def Pay Matrix with IOR of 2.67 (enhanced from 2.57).
Arrears = Pay Due as Maj Gen in Jan 2016 – Pay actually Drawn as Lt Col in Jan 2016.
33.    Approximate Method. I do not have data of pay of Lt Col or Maj Gen in Dec 2015. Thus, it is not possible for me to work out the arrears of pay due to NFU from Jan 2016 to Jun 2019. However the approximate method gives fairly acceptable figures. The serving Officers can simply substitute the figures of their pay as in Dec 2015 in the table below and find out how much approximate arrears they will get till Jun 2019 (from Jan 2016). Circular 555 gives Average pension of all those who retired in Calendar year 2013. To know pay of Lt Col with 22 years’ service in Jan 2016, we can take help of Circular 555.  This Lt Col would have put in 20 years in 2013. His pay is 2 x OROP in 2013. Then his pay in Jul 2014 is pay in Jul 2013 + increment (3% of sum of PIPB +GP). Repeat it till Jul 2015 which is same pay as in Dec 2015.
34.    Pay of Serving Lt Col with 22 Years’ Service in Jan 2016 (Pension of Lt Col with 22 years’ service in 2013 in Circular 555 is Rs 32,428 and Maj Gen with 22 years’ Service in 2013 is Rs 33,320)

Lt Col 20 Years in 2013
Period
Pension Lt Col in Circular 555
PIPB
GP
Increment
Total Pay Drawn
2013
31,305
48,610
8,000
1,700
62,610
2014 Jul
50,310
8,000
1,750
64,310
2015 Jul
52,060
8,000
1,800
66,060
2015 Dec
53,860
8,000
67,860
2016 Jan
1,58,980
2016 in Def Pay Matrix
1,62,800

35.    Pay of Maj Gen with 20 Years’ Service in 2013

Maj Gen 20 Years in 2013
Period
Pension Maj Gen in Circular 555
PIPB
GP
Increment
Total Pay Drawn
2013
31,990
47,980
10,000
1,740
63,980
2014 Jul
49,720
10,000
1,790
63,720
2015 Jul
51,510
10,000
1,850
65,510
2015 Dec
53,360
10,000
69,360
2016 Jan
1,62,835
2016 in Def Pay Matrix
1,67,200

36.    Arrears from Jan 2016 to Jun 2019

Period
Incre-ase in Pay
DR in %
DR Arrears
DR + Arrears
Arrears for Period
Jan to Jun 2016
4,400
0
0
4,400
26,400
Jul to Dec 2016
4,400
2
88
4,488
26,928
Jan to Jun 2017
4,400
4
176
4,576
27,456
Jul to Dec 2017
4,400
5
220
4,620
27,720
Jan to Jun 2018
4,400
7
308
4,708
28,248
Jul to Dec 2018
4,400
9
396
4,796
28,776
Jan to Jun 2019
4,400
12
528
4,928
29,568
1,95,096

Part IV: Arrears of Pension for Pre – Jul 2019 Pensioners from Jan 2016 to Jun 2019

37.    Since the pay of Officers of various ranks retired in calendar year 2013 is to be revised due to NFU as explained, the OROP – 2013 will give higher pay and therefore higher Average pension. That is the pension in OROP – 2013 due to NFU of all Pre – Jul 2014 Officers. Therefore, pension on Jan 2016 will be Pension Revised in OROP - 2013  x 2.57.
38.    As mentioned earlier, the new Circular of OROP - 2013 based on NFU hopefully will be issued by PCDA (Pensions) Allahabad after they receive LPC of serving officers from PCDA (O) Pune for Army Officers retired in calendar year 2013 and CDAs of Navy and IAF for Naval and IAF Officers.  The new Circular will show the revised OROP – 2013 due to NFU. But we worked out what would be the OROP- 2013 approximately  as explained in Part II.
39.    Arrears. Let us take the case of Brigadier with 32 years’ Service and retired in 2005. He will get pension of Lt Gen in NFU. We need to find out what is the pension in OROP of 2013. His pension was fixed in OROP 2013 based on Average pension of Brig / Cmde / Air Cmde retired in calendar year 2013. But the pension now is that of Lt Gen in NFU since he put in more than 31 years’ service. Our aim is fond the pension of Lt Gen in OROP – 2013 with 32 years’ service and also of Brig in 2013 with 32 years’ service. 


Arrears of Pension
Pension of Brig with 32 years' Service in 2013
37,280
Pension of Lt Gen with 32 years' Service in 2013
38,315
Arrears
1,035
Period
Arrears
DR %
DR Amount
DR + Arrears
Arrear of Period
Jan to Jun 2016
1,035
0
0
1,035
6,210
Jul to Dec 2016
1,035
2
21
1,056
6,334
Jan to Jun 2017
1,035
4
41
1,076
6,458
Jul to Dec 2017
1,035
5
52
1,087
6,521
Jan to Jun 2018
1,035
7
72
1,107
6,645
Jul to De 2018
1,035
9
93
1,128
6,769
Jan to Jun 2019
1,035
12
124
1,159
6,955
45,892

Note: On similar lines officers of other ranks with length of service can work out their own new pension in OROP – 2013 and arrive at likely arrears
Part V: Likely OROP - 2018
40.    OROP – 2018 will be similar to OROP – 2013 in that the pension of all Pre – Jul 2019 pensioners will be equal to the Average of Pension of all those officers retired in calendar year 2018. PCDA (Pensions) Allahabad / Prayagraj by now should have made a Circular (similar to Circular 555) by now and be ready to remit pension as per OROP – 2018 from Jul 2019. When will PCDA (Pensions) Allahabad / Prayagraj will do is better left to your imagination. Now they have another excuse to delay it further. They will say now that NFU is likely to be approved to Armed Forces they are awaiting instructions on implementation of NFU from Min of Def. So two more years of delay to get OROP – 2018. More delay means more deaths of veterans and lesser financial outgo as widows have to be paid only 60% of pension of their deceased husbands.  
41.    We can safely take it that empanelment of IAS officers is somehow stabilized and all of them are empanelled as Jt Secys by 17 years and Addl Secy by 29 years. Tables for OROP – 2018 are to be made by PCDA (Pensions) Prayagraj after seeing the Maximum and Minimum of pension of all Maj Gens and Lt Gens who actually retired in calendar year 2018. In similar manner they have to make tables for Lts to Brig with varying length of commissioned service.
42.    How can we arrive at approximate average of pension of Maj Gens and Lt Gens in 2018 In the absence of data? That is the reason I am asking all retired Cols / Capts IN / Gp Capts, Maj Gens / R Adms / AVMs and Lt Gens / V Adms / Air Mshls in calendar year 2018 to scan and send me their PPOs to work out OROP – 2018 more accurately.  Till the, we have to take the following steps to arrive at approximate OROP – 2018 :-
(a)   Take OROP – 2013 for all ranks whose service is 33 years in 2018. i.e. 28 years in 2013.
(b)   Average pay in 2013 = Pension in Circular 555 x 2
(c)   Give Increment @ 3% of (PIPB + GP) to take pay to Jul 2014.
(d)   Repeat this to arrive at pay of Jul 2015 / Dec 2015 (Increment is given only in July of the year)
(e)   Multiply pay in Dec 2015 with fitment factor of 2.57 to arrive at pay in Jan 2016 before Def Pay Matrix.
(f)    See the pay in the New Def Pay Matrix with IOR of 2.67 for Lt Cols to Brigs.
(g)   See the next higher figure in New Def Pay Matrix for the pay in Jan 2016.
(h)   See the matrix table for Jul 2016, Jul 2017, Jul 2018.  
(j)     In this way we can roughly come to likely pay in Jul 2018 which is same as Dec 2018.  Add notional MSP of Rs 15,500 to matrix pay to get total pay. 50% of that is the pension. That can be taken as OROP – 2018.

43.    Detailed calculations are to be carried out in the absence of PPOs of officers of all ranks retiring in calendar 2018 in the rank of Colonel (SG), Maj Gen and Lt Gen. With NFU any officer who puts in 16 years’ service gets pay of Director (Colonel), 19 years commissioned service gets pay of Maj Gen and pension of Maj Gen on retirement. Officers who have put in commissioned service of 31 years are likely to get pay / pension of Lt Gen. My calculation of Average pay in of Maj Gens and Lt Gens of 33 years’ service tells me that in 2018 their pay and pension is likely to be as shown in the table : -

Maj Gen with 28 Years' Service in 2013
Period
Pension in Circular 555
PIPB
GP
Increment
2013
36,420
56,840
10,000
2,010
2014
58,850
10,000
2,070
2015
60,920
10,000
Matrix Pay
2016
1,82,264
Matrix Pay in New Def Pay Matrix
1,82,700
2016 Jul
1,88,200
2017 Jul
1,93,800
2018 Jul
1,99,600
15,500
2,15,100
1,07,550

Pension of Maj Gen in 2018 could be : 0.50 x 215600 = Rs 1,07,550 + DR pm.

Lt Gen with 28 Years' Service in 2016 in scale of  Rs 67000 - 79000
Period
Pension in Circular 555
Total Pay
2013
36,420
72,840
2014
79,000
2015
79,000
Matrix Pay
2016
2,03,030
Matrix Pay in New Def Pay Matrix
2,05,100
2016 Jul
2,11,300
2017 Jul
2,17,600
2018 Jul
2,24,100

Pension of Lt Gen with 33 years’ service could be Rs 0.5 x 224100 = Rs 1,12,050 + DR pm

44.    If OROP – 2018 is implemented in letter and spirit all Officers who put in 20 years can hope to get pension of Maj Gen of 20 years’ service and pension of Lt Gen with 31 years’ service.

My Calculations Proved to be Correct
1.      I requested retired officers of 2016 and 2018 to scan and send me their PPO. Immediately Lt Col Pravesh Kumar Singh (SL-4529X) sent me his PPO. I worked out assuming I only know his length of service (19 years 2 months being SL Officer) and rank (Lt Col). See my calculations and what his PPO shows.
PPO of Lt Col PK Singh
DOC
25 Apr 1997
DOR
30 Jun 2018
Length of Service
19 years 2 months
DOB
01 Jul 1961
Period
PIPB
GP
Increment
Total Pay
Pension
2013
38,770
8,000
1400
52770
26385
2014
40,170
8,000
1450
54,170
2015
41,620
8,000
1490
55,620
2015 Dec
43,110
8,000
2016
1,31,353
New Def Pay Matrix
1,32,400
Jul-16
1,36,400
Jul-17
1,40,500
Jul-18
1,44,700
Pension = 0.5 x (144700+15500)
=80,100

2.      His PPO shows his Matrix Pay as Rs 1,44,700. This figure tallies with my calculations to the dot. It shows my method of finding out pension in future date by taking pension given in Circular 555 is absolutely correct. Thank you Lt Col PK Singh.
3.      Again if my calculations are correct for Maj Gen of 19 years’ service in 2018, then Lt Col PK Singh’s OROP – 2018 is Rs 88,900 and he should get arrears from Jul 2018 to Jun 2019 of Rs 1,07,096 for the period Jul 2018 to Jun 2019

PPO of Lt Col PK Singh
DOC
25 Apr 1997
DOR
30 Jun 2018
Length of Service
19 years 2 months
DOB
01 Jul 1961
Period
PIPB
GP
Increment
Total Pay
Pension
2013
38,770
8,000
1400
52770
26385
2014
40,170
8,000
1450
54,170
2015
41,620
8,000
1490
55,620
2015 Dec
43,110
8,000
2016
1,31,353
New Def Pay Matrix
1,32,400
Jul-16
1,36,400
Jul-17
1,40,500
Jul-18
1,44,700
MSP
15,500
Total Pay
1,60,200
Pension as Lt Col
80,100
Maj Gen 19 years' Service in 2018
OROP - 2013 for 19 years
31,990
OROP - 2013 for 18 years
30,825
PIPB next =[ PIPB prev-(0.03 x GP)] / 1.03
OROP - 2013 for 17 years
29,694
OROP - 2013 for 16 years
28,597
OROP - 2013 for 15 years
27,531
OROP - 2013 for 14 years
26,496
Period
PIPB
GP
Increment
Total Pay
Pension
2013
26,496
8,000
1030
52770
26385
2014
27,526
8,000
1070
41,526
2015
28,596
8,000
1100
42,596
2015 Dec
29,696
8,000
2016
96,878
New Def Pay Matrix
1,44,200
Jul-16
1,48,500
Jul-17
1,53,000
Jul-18
1,62,300
Pension in 2018
88,900
Arrears
8,800
Period
Arrears
DR in %
DR Amount
DR + Arrears
Arrears for Period
Jul - Dec 2018
8,800
9
792
9,592
47,960
Jan - Jun 2019
8,800
12
1056
9,856
59,136
Arrears due to NFU
1,07,096




Part VI: Likely Hike in Pay and Pensions of Majors

45.    Presently officers do not retire in the rank of Major as all of them get promoted to time scale rank of Lt Col after 13 years commissioned service. There was only one Major in 2013 with 22 years’ service who could not pass promotion examination Part D and got PMR in 2013. Hence OROP – 2013 fixed pension of all officers from 22 years to 33 & more service at Rs 23,815 in OROP – 2013 on the pretext that Majors with more than 22 years did not retire in 2013. It is unlikely to have even one Major retiring in 2018. Unless there are some SCOs / SL officers who due to their age on getting commission being on higher side and retired before 13 years will retire as Majors. Otherwise all would have been promoted to Lt Col after putting 13 years commissioned service. But there are many Pre – 2006 Majors who retired much earlier than in 2013. They all get very low pension even when they put in more than 30 years’ service. Similarly Maj MNS did not get any benefit in OROP as no majors retired in calendar year 2013 in MNS.
46.    As and when Hon’ble Supreme Court gives judgment granting NFU to Armed Forces, then Pre – 2013 Majors need not worry as they will get pension of Maj Gen. Presently majors with 22 or more years’ service get pension of Rs 23,815 w.e.f. Jul 2014. I hope they will get pension of Maj Gen for their length of service in 2013.
47.    If this assumption is correct then the Major with 22 years’ service should get pension in 2013 of Maj Gen with 22 years’ service which is Rs 33,320 (from Rs 23,815).

Maj Gen : 22 Years of Service
Year
PIPB
GP
Increment
Pension
Total Pay
2,013
50,640
10,000
1,820
33,320
66,640

Major of 1983 Batch in 2013 : 20 Years of Service
Year
PIPB
GP
Increment
Pension
Total Pay
2,013
32,930
6,600
1,190
23,815
47,630

Period : Major 22 years
Arrears
DR in %
DR Amount
Total Arrears
Arrears for the Period
Jul to Dec 2014
9,505
107
10,170
19,675
5,712
Jan to Jun 2015
9,505
113
10,741
20,246
1,21,474
Jul to Dec 2015
9,505
119
11,311
20,816
1,24,896
Jan to Mar 2016
9,505
0
0
9,505
57,030
Arrears
7,90,458


Conclusion

48.    Majors who put in 20 years’ service are likely to be the biggest beneficiaries in NFU. If NFU is implemented in letter and spirit as it was done for IAS guys, then we need not go to AFTs demanding pension of Lt Col to Majors & equivalents who put in 21 years’ service and 20 years’ service (from 2000) as rank has no linkage to NFU.
49.    We really do not know how Min of Def will implement NFU. What I did was only letting my imagination fly. Therefore, do not take my analysis as correct. We have to await the letter from Min of Def on implementation of NFU and tables on NFU from PCDA (Pensions) Prayagraj.
50.    Financial Effect on Implementation of NFU to Armed Forces. This is the job of CGDA. As a layman I can say financial effect of implementation of NFU has to be done as under:-
(a)   Serving Officers.
(i)       Arrears of Pay from 23 Dec 2013 to 23 Dec 2016 of all ranks from Lt to Maj Gen.
(ii)      Arrears of pay from 23 Dec 2016 to Date of Implementation of NFU with DR.
(b)   Retired Officers.
        (i)      Arrears of OROP 2013 from Jul 2014 to Mar 2016.
(ii)      Arrears of pension from Jan 2016 to Date of implementation.
(iii)     Arrears of pension from Jul 2019 onwards due to OROP – 2018.

51.    Modus Operandi. The Govt of India mandated every cadre controlling authority (CCA) which is parent ministry of Organised Group A Service Officers ( Min of Def for Armed Forces) to set up a screening committee to select Officers to get NFU provided they meet certain benchmarks. I hope the MS Branch makes the bench mark simple so that maximum number of officers get benefit of NFU. Since the financial effect is going to be very high when NFU is implemented, the modus operandi of Govt of India, Min of Def is to delay issue of implementation instructions of NFU as long as possible till 2023. The party in power can sit on files as they have sitting on the report of Justice L Narasimha Reddy submitted to the Govt on 26 Sep 2016. When 2024 general elections approach then the same party in power will promise veterans that they will implement NFU. More delay means more veterans reaching their heavenly abode and less cash out go as widows get only 60% of benefit of their deceased husbands. Two respondents out of 259 of NFU case filed in AFT Delhi along with Col Mukul Dev have already become Pyare to Allah.

52.    Just enjoy your life and leave NFU to God Almighty who may give some sabhbudhi to these wily politicians not to fool faujis anymore with all false promises but use them to get votes in general elections.

Warm regards,
CLICK ON THIS TABLE TO ENLARGE
Brig CS Vidyasagar (Retd)
040-48540895


Grant of NFU to Armed Forces:
For those who talk of cost to Govt for Armed Forces....
Take the case of Haryana as an example. It has 4 DGPs ( Pay equal to Army Commander) & 8 ADGPs.The 1990 batch officers are ADGPs and drawing pay equal to a Corps Commander. The state has one IG,one DIG and 5 Armed Police Battalions at Maduban ( Karnal) and yet, it had to ask for Army columns when the time came.The Police Range earlier headed by a DIG is now headed by an IG and there are four police Rgs (Karnal,Rohtak,Hissar & South). Beside , there are three police commissionarates, (Ambala-Panchlula,Gurgaon & Faridabad) headed by the Commissioners (DIG rank officers).The SCRB (State Crime Record Bureau) is headed by an officer of ADGP rank, over paid but under employed. With so many highly paid IPS lot, the law and order had to be restored by Army Columns led by Majors/ Lieutenant Colonels with half of the service of these IPS Offrs.
What a contrast of leadership in two organizations and yet the Armed Forces are a forgotten lot when it comes to seeking parity with their Civ counterparts.....


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