Pension hike will cheer 30,000 families, says Defence Ministry

Ordinary family pension will be calculated at a uniform rate of 30 per cent of the last pay drawn by the deceased officer in all cases instead of earlier slab system and shall be subject to a minimum of Rs 1,275 per month and maximum of 30 per cent of the highest pay in government. The additional ordinary family pension becoming due on account of difference between ordinary family pension admissible under the slab and at the revised rate of 30 per cent shall be added to theconsolidated family pension of the pensioners. The order said that no arrears on account of revision of pension or family pension on notional fixation of pay will be admissible for the period prior to January 1, 1996.

Meanwhile, the Defence Ministry has also issued orders for revision of pension of armed forces personnel who retired on or after January 1, 1996 and family pension for those personnel dying in harness or after retirement beyond January 31, 1995. The orders said, the formula for calculation of service pension for officers and retiring pension for personnel below officer rank will remain unchanged. The revised pension would be based on the pay admissible following implementation of the Fifth Pay Commission recommendations.

However, the orders said that full dearness allowance admissible on the date of retirement or death will now be taken into account for calculation of gratuity. The maximum ceiling on gratuity has been enhanced to Rs 3.5 lakh.

There is also no change in percentage ofcommutation of pension. The commuted portion of pension will continue to be restored after 15 years.