Officers on Retirement - Pension and Gratuity.(Indian Army)
Retiring Pension – Qualifying Service.
Pension is granted on completing a minimum qualifying service of 20 years
(15 years in case of late entrant). The weightage element is an inbuilt
factor of the pension and it is meant to compensate comparatively early
retiring age. Maximum pension is admissible if actual service or actual
service including weightage is 33 years. For lesser service, pension is
correspondingly depressed. Weightage is not taken into account to make up 20
years of service. For less than 20 but more than 10 years of service,
Retiring Gratuity may be admissible.
Calculation of Pension.
It is calculated @ 50% of the average reckonable emoluments drawn during
last 10 months of service before retirement for a maximum service of 33
years. Where the actual service plus appropriate weightage is less than 33
years, pension is proportionately reduced.
Formula for calculation of service pension : -
=Average RE for last
10 months X Actual
Q.S + Weightage
Note : On punishment of forfeiture for past service by a
court martial, the past service along with weightage admissible for the rank
will be first restricted to a maximum pensionable service of 33 years and
then the penalty of forfeiture of past service for pension deducted
Weightage in Years
(a) Service Officers
(other than MNS)
Gen and above
(b) MNS Officer
is reckoned only where the officer has completed 20 years of service.
Commutation of Pension.
maximum of 43% of pension can be commuted (See Annexure 1 to Appendix A).
The commuted value of pension is calculated on the basis of an officer’s age
on next birthday, which falls after the date of retirement. Application.
specimen for application for retiring pension and commutation is at Appendix
‘A’ It is to be sent by the Officer to CDA (O), Archives Section, Pune,
atleast 4 months in advance of his retirement. CDA (O), Pune, transmit the
same to PCDA (P), Allahabad, for issuing Pension Payment Order to the banker
with a copy to the Officer.
who have put in a minimum of 5 years qualifying service and are eligible for
service pension/invalid gratuity or pension of any type are entitled for
Retirement Gratuity. It is paid at the rate of one fourth of the emoluments
last drawn for every six months of completed service, subject to a maximum
of sixteen and half months pay, or Rs 3.5 lakhs whichever is less. A
uniform weightage of 5 years is added to actual qualifying service.subject
to the total not exceeding 33 years. Emoluments mean Pay, Rank Pay and NPA
(where admissible). Application.
officer invalidated out of service for causes, which are neither
attributable nor aggravated by service is granted invalid pension/gratuity.
If the service is less than 10 years at the time of invalidment, only
invalidment gratuity is paid. Invalid pension is equal to the service
element of the disability pension and is calculated in the same manner as
officer who retires/is invalided out, for a disability which is accepted as
attributable to or aggravated by military service, is entitled to disability
pension consisting of Service element and disability element. Disability
element will be granted/continued if disability is assessed at 20% or more.
Service element will continue to be paid subsequently irrespective of the
percentage of disability. Officers who proceed on voluntary retirement at
their own request except for the purpose of availing higher value of
Commutation of Pension and that too one month before actual date of
retirement, are not eligible for Disability Pension. Disability Pension
consists of disability and service elements as defined below: -
is granted for 100% disability and it is proportionately reduced for
disability upto 20%.
Element. It consists of pension for service actually
rendered and weightage.
benefit of merger of 50% dearness relief with basic pension will also be
applicable on both service and disability elements separately to those Armed
Forces pensioners who are in receipt of disability pension/war injury
pension/special family pension/liberalized family pension on or after
Compensation in Lieu of Disability Element.
officer with disability, attributable to or aggravated by service, and
assessed at 20% or more for life but retained in service is paid
compensation in lump sum (in lieu of the disability element) equal to the
capitalized value of disability element. For this purpose the rank for
disability element is the rank held at the time of onset of the disability
and age on next birthday is reckoned with reference to the date of onset of
disability with loading to age, if any, recommended by the Medical Board.
Once compensation is paid in lieu of the disability element, there is no
further entitlement to the disability element for the same disability. Such
disability is not counted for grant of pensionary benefit or relief.
Disability Element on Invalidment.
an Armed Forces Personnel is invalided out, the extent of disability of
functional incapacity shall be determined in the following manner for the
purpose of computing the disability element : -
disability as assessed by invaliding medical board
Percentage to be
reckoned for computing of disability element
Less than 50
Between 50 and 75
Between 76 and 100
Lump-Sum Compensation in Lieu of War Injury
(a) Armed Forces personnel who are retained in
service despite disability due to war injury for life and retire
subsequently can opt for compensation in lump sum in lieu of War Injury
Element or for drawal of War Injury element of War injury pension on final
retirement. This provision is applicable to cases occurring on or after 01
Jan 86. With effect from 01 Jan 96, the existing rates for calculation of
lump-sum compensation in lieu of war injury pension for 100% disability for
life are as under: -
Commissioned Officers and Hony Commissioned Officers
- Rs 5200/-PM
- Rs 3800/-PM
- Rs 3100/-PM
(b) For disability due to war injury of less than
100% the rates shall be proportionately reduced. The one time compensation
in lump sum in lieu of War Injury element for the actual percentage of the
disability at the appropriate rate mentioned above. For this purpose, the
rank shall be the rank held at the time of injury sustained by the
individual due to war. Age next birth day will be reckoned with reference
to the date of onset of disability with loading to age, if any, recommended
by the competent Medical Board.
(c) Compensation in lieu of war injury element will
be payable provided the degree of disablement is equal to or more than 20%.
Once the compensation in lieu of War injury element due to disability for
life has been addl, there shall be no further entitlement on account of such
a disability at the time or retirement/discharge from the Armed Forces.
Since this is one time payment on account of compensation, no restoration
will be permitted. War
Injury Pension Admissible when injury has taken
place during action against extremists, terrorists, and antisocial elements,
in war or war like operations. In cases of Invalidment on account of war
injury, he/she shall be entitled to War Injury Pension consisting of service
element and War Injury element as follows: -
Equal to Retiring/Service Pension to which
he/she would have been entitled on the basis of his/her pay on the date of
Invalidment but counting service up to the date on which he/she would have
retired in that rank in normal course including weightage as admissible.
There shall be no condition of minimum qualifying service for earning this
Equal to reckonable emolument last drawn
for 100% disablement. However, in no case the aggregate of Service element
and War Injury element should exceed last pay drawn. For lower percentage
of disablement, War Injury element shall be proportionately reduced.
Provisions contained inPara12
above shall equally apply to individuals invalided out on account of
disability due to war injury.
A Constant Attendance
Allowance at the rate of Rs. 600/- pm may be granted to an officer who is
awarded a disability pension for 100% disablement, if in the opinion of the
IMB/RMB/RSMB, the officer needs the services of a Constant Attendant for at
least a period of three months, and the necessity arises solely from the
conditions of accepted disability /disabilities.
Consideration of claims for Disability Pension/War Injury
formal application is required for grant of Disability Pension/War Injury
Pension. On receipt of Invalidment/Release Medical Board proceedings, the
Min of Def determines whether the disability is attributable to or
aggravated by service. The Govt. decision regarding attributability is
conveyed to the PCDA (P),Allahabad,
(under advice to the individual) to sanction payment of Disability
Pension/War Injury Pension, if admissible.