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PENSION

Ex-Servicemen Pension Portal

Varun Mitra is committed to helping ex-servicemen understand their pension rights and entitlements. We guide them through filing applications, explaining programs, and resolving issues. Our goal is to simplify the complex pension process, ensuring veterans receive the support they deserve and making it more accessible for those who have served our country.

Policy

The Defence Pension Policy in India governs the pension entitlements and benefits for personnel serving in the Indian Armed Forces (Army, Navy, Air Force) and other defense services like the Indian Coast Guard. This policy is designed to ensure that military personnel receive a fair and adequate pension after retirement, recognizing their service and sacrifices for the nation.

The policy is governed by the Ministry of Defence (MOD), and its primary aim is to provide financial security to defense personnel and their families after their service ends. The pension system is distinct from the civilian pension system and includes special provisions due to the nature of military service.

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Key Features of the Indian Defence Pension Policy                                                                                                           

  1. Types of Pensions:

    • Retirement Pension: Awarded to personnel who retire after completing the required minimum service.

      • Full Pension: For those who retire after serving 20 years or more.

      • Pro-rata Pension: For those retiring before completing 20 years, based on the proportion of their service.   

    • Disability Pension: Granted to personnel who are disabled due to service-related causes. The pension is determined based on the extent of disability and the individual's rank. It is either Disability Element (for less than 50% disability) or Disability Pension (for more than 50% disability).   

    • Family Pension: Paid to the eligible dependents (spouse, children, dependent parents) in case of the death of a serving or retired personnel. This ensures that the family of the deceased soldier continues to receive financial support.

    • War Injury Pension: Awarded to personnel who sustain injuries during war or a war-like situation. The pension is higher than the regular disability pension and includes compensation for the nature of the injury.

    • Gallantry Award Pension: Some personnel who are awarded gallantry medals or have demonstrated outstanding courage and valor during their service may be eligible for additional pension benefits or increases in their pension.                                                                                 

  2. Pension Calculation:

    • The pension is generally calculated as a percentage of the last drawn salary or average salary over the last 10 months of service.

    • The 6th Pay Commission recommended a "One Rank One Pension" (OROP) scheme, which ensures that all military personnel of the same rank and length of service receive the same pension, irrespective of the date of retirement. This policy has been implemented for uniformity and fairness in pension distribution.

    • For those retiring before the 7th Pay Commission, pensions are updated periodically to ensure that they remain aligned with the salaries of serving personnel.                                                              

  3. Pension Benefits for Different Categories:

    • Officers: Officers in the Indian Armed Forces (Army, Navy, Air Force) typically receive a higher pension due to their rank and responsibilities.

    • Other Ranks (OR): Soldiers, sailors, and airmen (non-officers) also receive pensions according to their rank and length of service, though it is lower than that of officers.

    • Junior Commissioned Officers (JCOs): A special category between officers and ORs, JCOs receive pension benefits based on their rank and seniority.                                                                  

  4. Contribution and Funding:

    • The pension for defense personnel is funded by the Government of India, and the amounts are paid through the Defence Pension Disbursing Offices (DPDOs) and the Treasury system.

    • The Pension Payment Orders (PPOs) are issued to all pensioners, which act as an official document for pension disbursement.                                                                                                                                                          

  5. Revision of Pension:

    • Pension Revision is done periodically, typically after every pay commission (e.g., after the 6th Pay Commission or the 7th Pay Commission). This ensures that the pensions remain in line with the salaries and benefits of serving personnel.

    • The One Rank One Pension (OROP) policy, introduced in 2015, ensures that pensioners of the same rank and service period get equal pensions, and these pensions are periodically revised.                                                                                                                                                      

  6. Pension Sanctioning Authorities:

    • Ministry of Defence (MOD): Sanctions and processes pension applications for defense personnel.

    • Defence Accounts Department (DAD): Manages the financial aspects of pensions and ensures the timely disbursement of funds.

    • Pension Disbursing Authorities (PDA): Banks and post offices are responsible for actual disbursement.                                                                                                                                                                            

  7. Special Provisions:

    • Pension for Widows and Dependents: The defense pension policy provides for family pension in case of the death of the pensioner or serving personnel. Widows, children, and dependent parents of deceased personnel are eligible for pension benefits.

    • Commuted Pension: Personnel can choose to commute a portion of their pension in exchange for a lump sum amount. This commuted portion is deducted from their monthly pension but is restored after a specified period.                                                                                                                                    

  8. Pension for Pre-1996 and Post-1996 Retirees:

    • Pre-1996 retirees had to wait for pension revisions based on pay commission reports, but the implementation of OROP ensures they now receive equal pension benefits as those retired post-1996.

    • Post-1996 retirees have had their pensions revised according to new pay scales and benefits announced by subsequent pay commissions.                                                                                     

  9. Pension in the Event of Death in Service:

    • In case of death during service, the dependent family members are eligible for Special Family Pension or Liberalized Family Pension, which offers higher compensation than the regular family pension.                                                                                                                                             

  10. Taxability of Defense Pensions:

    • The pension income of defense personnel is taxable, though there are specific exemptions and rebates for defense personnel, particularly for veterans and widows. For example, veterans over the age of 80 years are entitled to an income tax exemption on pensions, up to a certain limit.                                                                                                                                   

Recent Reforms and Changes in Defence Pension Policy:

  • OROP: The One Rank One Pension (OROP) scheme, which ensures that defense personnel retiring at different times but of the same rank and length of service receive equal pensions, has been a landmark reform.

  • Pension for Gallantry Award Winners: Certain gallantry awardees and family members of personnel who have made extraordinary sacrifices are eligible for special pension provisions and bonuses.

  • Increased Minimum Pension: After the 7th Pay Commission, minimum pension entitlements have been enhanced to ensure that no veteran or family member receives a pension below a set threshold.        

 

Conclusion:

The Defence Pension Policy of India provides comprehensive and fair financial support to defense personnel and their families after retirement or in the event of disability or death. It recognizes the unique nature of military service and aims to ensure that personnel who serve the nation receive adequate benefits for their service. Through periodic revisions and reforms, the policy continues to adapt to the changing needs of veterans and their families.

Eligibility

The Indian Defence Pension Eligibility refers to the criteria that determine which individuals are entitled to receive a pension after serving in the Indian Armed Forces (Army, Navy, Air Force) and other defense services like the Indian Coast Guard. The eligibility for pension is governed by various factors, including the nature of service, the length of service, and the specific type of pension being applied for (retirement, disability, family, etc.).   

                        

Key Eligibility Criteria for Defence Pension                                                                                                                                 

  1. Retirement Pension:

    • Minimum Service Requirement: A minimum of 15 years of service is required to be eligible for a pension. However, the pension is typically calculated based on the length of service.

    • Full Pension: To receive full pension, personnel must complete a minimum of 20 years of service.

      • For short service personnel who serve for less than 20 years, a pro-rata pension is provided based on the number of years of service.

    • Retirement: Personnel who retire from the Armed Forces after completing the required service period are eligible for retirement pension.                                                                                             

  2. Disability Pension:

    • Eligibility Based on Disability: Personnel who are injured or disabled while serving in the Armed Forces are eligible for disability pension. The pension is based on the degree of disability and whether it is service-related or not.

      • Disability Element: For disabilities less than 50%, personnel are entitled to a disability element.

      • Disability Pension: For disabilities over 50%, personnel are eligible for a disability pension.

    • Disability must be assessed and confirmed by an Army Medical Board or an equivalent board in the Navy or Air Force.

    • Injury during Service: The disability must be caused by service-related activities (e.g., during war, operational duty, or training).                                                                                                                

  3. Family Pension:

    • Eligibility for Dependents: In case of the death of a serving or retired defense personnel, eligible family members are entitled to family pension. This includes:

      • Spouse: The surviving spouse is entitled to receive the family pension, either dependent on the service rank and length of service of the deceased personnel.

      • Children: Dependent children (up to the age of 25 years) can receive the family pension if they are unmarried or financially dependent.

      • Dependent Parents: In some cases, dependent parents of the deceased personnel can also be entitled to the family pension.              

    • Special Family Pension: If the death of the service member occurred due to service-related reasons, the family is eligible for a special family pension, which is higher than the regular family pension.                                                                                                                                                              

  4. One Rank One Pension (OROP):Eligibility :

    • The One Rank One Pension (OROP) scheme ensures that personnel of the same rank and length of service, irrespective of their retirement date, receive the same pension. The OROP was introduced to address disparities in pensions between retired personnel of different time periods.

    • All ex-servicemen who have retired after completing the required minimum service period and are receiving pensions are eligible for OROP benefits.                                                                

  5. Pension for Gallantry Award Winners:

    • Gallantry Awardees: Personnel who receive gallantry awards such as the Param Vir Chakra, Ashoka Chakra, Vir Chakra, Shaurya Chakra, etc., may be eligible for enhanced pensions or special benefits based on their award.                                                                                

  6. Retirement/Resignation Conditions:

    • Regular Service: Personnel who have served on a regular basis and have completed the necessary service requirements are eligible for pension.

    • Short Service: Short Service Commissioned Officers (SSCOs) who have served for at least 10 years are eligible for pension, but the pension is pro-rated.

    • Resignation: Personnel who resign from their service before completing the minimum service requirements (15 years) are generally not eligible for pension, except in cases of disability or death in service.                                                                                                                                      

  7. Commuted Pension:

    • Personnel who are eligible for pension can commute a portion of their pension in exchange for a lump sum payment at the time of retirement.

    • The commuted pension is restored after a specified period (typically 15 years), but the lump sum payment is received immediately upon commutation.                                                     

  8. War Injury Pension:

    • Personnel who are injured during war or during war-like situations (such as counter-insurgency operations) are entitled to a war injury pension. The eligibility criteria and the amount are higher for those injured in active conflict compared to regular disability pensions.

    • War injury pensions are granted as a combination of disability element and war injury element.                                                                                                                                                                       

  9. Taxability of Defence Pensions:

    • Tax Exemption: Defence pensions have certain exemptions. Veterans over 80 years of age and their families are generally exempt from paying income tax on their pension up to a certain amount. Additionally, war widows and gallantry awardees are eligible for income tax exemptions.                                                                                                                                           

  10. Pension for Pre-1996 and Post-1996 Retirees:

    • Pre-1996 Retirees: Personnel who retired before the implementation of the 6th Pay Commission are entitled to pension revision based on the OROP scheme and other subsequent updates.

    • Post-1996 Retirees: Those retiring after the 6th Pay Commission are eligible for pension updates as per the revised pay structure under the 7th Pay Commission.                                                        

Summary of Defence Pension Eligibility:

  • Serving personnel must serve a minimum of 15 years to be eligible for pension benefits.

  • Retired personnel are eligible for pension according to their length of service, rank, and category (e.g., disability, gallantry award).

  • Family members are eligible for family pension in case of the death of the serving or retired defense personnel.

  • Disability or injuries sustained during active service may qualify for disability pensions or war injury pensions.

  • Short Service Commission officers and those with at least 10 years of service may be eligible for pension, though it is pro-rated.

  • One Rank One Pension (OROP) ensures equal pension for personnel of the same rank and length of service.

  • Tax exemptions and additional benefits exist for veterans, gallantry awardees, and their families.                                                                 

Conclusion:

The Indian Defence Pension eligibility criteria are designed to provide financial security and welfare for personnel who have served the nation, as well as their families. Various types of pensions, such as retirement, disability, family, and war injury pensions, ensure that defense personnel and their dependents are supported even after their service concludes.

FAQ

Here are 10 frequently asked questions (FAQ) related to defence pensions:                                                                                                 

  1. What is a defence pension?
    A defence pension is a financial benefit provided to retired military personnel, their families, and dependents as compensation for their service to the nation.                                                                                                                        

  2. Who is eligible for a defence pension?
    Retired Armed Forces personnel, including army, navy, air force veterans, and their dependents, are eligible for defence pensions.                                                                                                                                                                                                         

  3. What is One Rank One Pension (OROP)?
    OROP is a scheme that ensures all retired personnel of the same rank receive the same pension, regardless of their retirement year, ensuring equity in pension benefits.                                                                                                   

  4. How is the defence pension calculated?
    The pension is generally based on the last pay drawn, rank, and length of service. Various formulas apply based on the type of pension scheme and the date of retirement.                                                                                                                                                                   

  5. What is SPARSH?
    SPARSH (System for Pension Administration Raksha) is an online platform developed by the Ministry of Defence for efficient pension disbursement and management for Armed Forces personnel.                                                                                                                                                                                

  6. How do I apply for a defence pension?
    Pension applications can be filed through the Defence Accounts Department or through the SPARSH platform, depending on your pension scheme.                                                                                                                                                 

  7. Can I get my pension revised?
    Yes, pension revisions are possible based on policy changes, pay commission recommendations, and other government orders. Veterans can apply for pension revision if applicable.                                                                                                                                                                          

  8. What is the procedure for pension payment after death?
    The family or legal heirs of the deceased veteran can apply for family pension, following specific documentation and procedures through the Defence Pension Disbursing Agency (DPDO) or SPARSH.                                                                                              

  9. What is a family pension?
    A family pension is a financial benefit provided to the eligible family members (spouse, children, etc.) of a deceased military personnel, ensuring they receive financial security.                                                       

  10. How can I resolve issues related to my defence pension?
    Issues related to pension can be resolved through the pensioners' grievance redressal system, SPARSH, or by contacting the concerned Defence Pension Disbursing Agency (DPDO) or the Ministry of Defence.                                                                                                                          

These FAQs aim to help veterans and their families understand the pension system and procedures.                                                                    

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