EXPECTED EFFECTS ON NEW CASUALITY AWARDS FOR DEFENCE PERSONNEL.

 

Dear Veteran brothers,

If the latest MOD letter No: F.16(3)/2023/D( Pen/Pol) Vol-II dated 21-9-2023 is implemented ,

In our understanding the following  disadvantages will be there:

1. Name of Disability pension is changed as Impairment Relief-  the Disability Relief  is not a pension.

     It is only a relief for disablement. It looses the status of pension.

2. Any Relief is not eligible for  Dearness Relief , hence our Disability element  is not eligible for DA.

3. Only  Disability pension  ( service element + Disability element)   is exempted from Income Tax,

    Now, the  Disability element is not a pension, hence it is not exempted from IT.  All Disabled 

    Veterans are to pay income Tax.   

4.   At present  the Disability Element is added with Service element and DA calculated,  Hereafter,

      The DE is not eligible for DA as it is a Relief, hence a LOSS.

5. Commutation  on Disability is only on the initial sanction i.e  20%/ 30%  and so on.

     The broad banding effect is not applicable .  that is to say , no further enhancement on commutation.

6.  Likewise,    War Injury pension  is called  WAR  Impairment  RELIEF,  It is not a pension.

           Liberalised Disability pension is called as Liberalised Impairmentss Relief.   Ir is not a pension.

            ONLY PENSION IS ELIGIBLE FOR DA,    HENCE THESE RELIEF ARE NOT ELIGIBLE FOR DA.

Note:    We understand that  this order is applicable for  Serving Soldiers and  Future retirees.

               Also this order  supersedes all the previous circulars on casuality awards.

               There is no effect of FAMILY PENSION.

  Example :   Existing   calculation   :  For a  sepoy   Group Y   QS 17 yrs:  DE: 50%

                        Service element……………..18807.00

                       Disability Element…50%..... 5642.00

                                          Total ………… 24449.00SS

                        DA at 42%..........................10269.00

                         Net monthly pension……34718.00   as on date  as per OROP-II

 

        After this order – future retirees   will receive:

                      Service   element……………..18807.00

                            DA at 42%....................  7899.00

                                       Total…………. 26706.00

                 DE-Impairment Relief 50%...5642.00.

              NET MONTHLY PENSION……   32348.00…AS PER NEW ORDER.

 

     Now note the difference    :  34718 – 32348=  2370  -  loss per month .

     In addition to this loss , one has to pay Income Tax if  assessed.

Now, the futrue  pensioner with same Rank. Group, length of service,  will get lesser pension tan the present pensioner.      One more anomaly. 

Dear veteran brothers,  there are objections and protest is going on against this Rule.

 All are requested to raise our voice about this anomaly in where possible forum.