Source: http://www.indianmilitary.info/
Courtesy: Major Navdeep Singh
Based on the newly introduced concepts of 6th CPC, fresh instructions were issued by the Govt of India, Department of Personnel and Training vide Letter No 3/19/2009-Estt (Pay II) dated 05 April 2010 in which all modalities of pay fixation of re-employed ex-servicemen pensioners were explained. The said letter however was vague and ambiguous as far as the treatment of Military Service Pay (MSP) was concerned. As a result, civil organisations including banks, started deducting MSP from the pay fixed in the re-employed organisations, meaning thereby, that MSP was not being included in the protected pay in such organisations.
Accordingly on the issue being raised by ex-servicemen, a clarification was sought from the Ministry of Finance and a fresh letter was thereafter issued by the DoPT of even number dated 08 November 2010 in which the following was explicitly clarified by the Govt of India :-
“Hence in respect of all those defence officers/personnel, whose pension contains an element of MSP, that need not be deducted from the pay fixed on re-employment”
The above clarification, wherein it was provided that MSP would not be deducted from the pay fixed on re-employment, was endorsed by the Govt of India, Ministry of Finance, Department of Financial Services, to all Banks etc for compliance vide Letter No 4/1/2010-SCT(B) dated 22 Nov 2010.
However later, on receiving letters for clarification of the subject from The Indian Banks’ Association, the Department of Financial Services issued another letter No F No 4/1/2010-SCT(B) dated 23 March 2012 based on the earlier DoPT letter dated 08 Nov 2010 but in which it was surprisingly incorrectly stated in the last lines that MSP shall not be included in pay fixation, meaning thereby that MSP shall be deducted from the pay fixed on re-employment. This however was actually in contravention of the actual DoPT letter dated 08 Nov 2010 which in fact clearly states that MSP need not be deducted from pay fixed on re-employment. The following lines of the letter dated 23 March 2012 created chaos:-
“Therefore Ex-servicemen re-employed in the banks who retired on/or after 01.01.2006 are eligible to pay fixation in banks based on the pay drawn by them at the time of discharge from the Defence Services which would include band pay Plus grade pay but does not include MSP”
The said clarification dated 23 March 2012 signed by Mr LK Meena, Director of Financial Services, rather than clarifying the issue unnecessarily created confusion and banks thereafter started deducting MSP from the pay fixed on re-employment while the DoPT had stated just the opposite.
When I pointed out the anomaly to the Department of Financial Services, no action was taken by them and even RTI Applications were stonewalled.
However, it goes to the credit of Mr LK Meena, Director, Department of Financial Services, Ministry of Finance, Govt of India, that on my pointing out the fact that his staff had not briefed him correctly before getting the letter issued, he has promptly withdrawn the incorrect direction dated 23 March 2012 and has now directed all Banks and Insurance Companies to follow DoPT directions dated 08 Nov 2010 in letter and spirit. The letter withdrawing the earlier letter and containing the aforesaid directions has been issued on 28 Aug 2012. Mr Meena has also stated that his Public Information Officer had not replied to the RTI Application in a proper manner.
With this, the problem of not taking into account the Grade Pay and MSP of defence personnel on re-employment in Banking and Insurance institutions stands resolved.
SIR KINDLY UPLOAD THE COPY OF THE SUBJECT LETTER OF CORRECTION BY MR. L K MEENA
ReplyDeleteyes, so that it can be used if the banks dont agree.
DeletePAY FIXATION OF EX-SERVICEMEN RE-EMPLOYED IN PUBLIC SECTOR BANKS – IMPLEMENTATION OF FINANCE MINISTRY GUIDELINES
ReplyDeleteIndian Banks’ Association
HR & Industrial Relations
No./HR&IR/CIR/2013-14/589/8764
January 30, 2014
Chief Executives of Public Sector Banks
Dear Sir,
Pay Fixation of Ex-Servicemen Re-Employed in Public Sector Banks
We refer to our letter No.HR&IR/CIR/2012-13/76/589/5850 dated 6.9.2012 regarding re-fixation of pay of ex-servicemen re-employed in Banks on or after 1.1.2006.
2. Keeping in view the fact that all the Public Sector Banks are enjoying autonomy in their HR matters, the Ministry of Finance, vide its letter dated 22nd March, 2013, requested IBA to frame uniform guidelines for fixation of pay of Ex-Servicemen upon their re-employment in PSBs, in consonance with the Government of India’s policy in the matter and the principle of fairness. The letter further stated that the system of re-employment should be reviewed comprehensively to allow Ex-Servicemen to have their pay protected upon re-employment in PSBs. IBA was requested to have these issues considered and examined in consultation with the PSBs and send their considered opinion/comments to the Ministry of Finance, Department of Financial Services for necessary action.
3. Accordingly, IBA constituted a Working Group, consisting of three senior officers drawn from banks and prepared a report. With the approval of the Managing Committee at its meeting held on 6th June, 2013, the Report of the Working Group was sent to DFS for their consideration and to issue necessary guidelines. The Ministry of Finance, vide letter dated 19th July, 2013, advised IBA to take appropriate decision in the matter of pay fixation of re¬employed Ex-Servicemen in PSBs as deemed fit. While doing so, IBA was asked to ensure that such pay fixation is in consonance with DOPT guidelines issued from time to time that all PSBs follow the guidelines uniformly to avoid disparity in pay fixation across PSBs.
4. As desired by DFS, a “draft” guidelines to be issued to PSBs was sent to the DFS vide our letter dated 27th August, 2013 for their examination and their approval.
5. Now, the Ministry of Finance, DFS, vide their letter dated 30th December, 2013 (copy enclosed), has advised thatthe draft guidelines prepared by IBA generally appear in order. However, before issue of these guidelines to all PSBs, it is desirable to ensure that no decision is contradictory to established Government Policy and that none of these are violative of DOPT or Ministry of Defence (MOD)/Ministry of Finance instructions on this subject.
6. Draft guidelines, approved by the Ministry of Finance, Department of Financial Services with some suggestions were put up to the Management Committee of IBA at its meeting held on 28.1.2014 for approval. The Committee has approved these guidelines as per annexure enclosed for compliance by Banks.
All the Banks are therefore advised to implement these guidelines regarding pay fixation of ex-servicemen on their re-employment on or after 1.1.2006.
Yours faithfully,
sd/-
( K Unnikrishnan )
Deputy Chief Executive
Download IBA letter No./HR&IR/CIR/2013-14/589/8764 dated 30.01.201
Regarding inclusion of MSP element, It seems it is back to square one. The Guidelines issued by IBA is against the instructions of DOP & T's letter.
ReplyDeletePAY PROTECTION IS GIVEN TO EX SERVICEMEN WHO JOIN BANKS,WHY ON JOINING CENTRAL GOVT JOBS PAY PROTECTION IS NOT BEING GIVEN ?
ReplyDeleteSituation in respect of MSP is back to square, all banks are asking to recover the MSP paid, is the PPO not a valid document to Prove as last pay drawn
ReplyDeleteAny one who is having the scan copy of MOD Letter No: 1/69/2008/D (PAY/SERVICE) Dated 24/07/2009 please provide me on my email ananth.rallabandi@gmail.com I am urgently in need of copy of the same, as I am moving the civil court for want of stay order on recovery of MSP. Also any material in support of proving MSP and X Group Pay as last pay drawn. Please oblige
ReplyDeleteSir, if you got a copy of MOD Letter No: 1/69/2008/D (PAY/SERVICE) Dated 24/07/2009, please send copy to me also at geo123abram@gmail.com
DeleteDear Sir,
ReplyDeleteI am EX JWO AP BABU RDO FIT RETIRED IN 1999, and reemployed in Canara Bank Since 07/06/1999. My pension account in SBI, sooner i declared that I am employed in Canara Bank in 1999, they stopped dearness relief on my pension from the day one. Since begining of my pension I am only drawing only BASIC pension till date. Now I came to know that various circulars issued by PCDA Cir 165 166 and 173, defining the MINIMUM PAY on reemployment of Re employed ex servicemen, I applied and got Pay Fixation Certificate, stating that Basic Pay, Dearness Relief and Good Conduct Badge Pay (ie., 5905 + 1890 + 60 =7,855.) are only taken in to account and other components are taken in to account while fixing my pay in Canara Bank. If i do not get my arrears of dearness relief, can my Dearness Relief restored from now on wards vide point (b) ii of pcda cir 165 166 and 173. As mine is a case pre 2006 reemployed pensioner, pse clarify whether i will be eligible or not. The Cir (b)ii says that " The Reemployed Ex servicemen retired below officer rank and reemployed in below Group A post and his pay is fixed on reemployment by granting advanced increments and protection of last pay not given, he pay on reemployment is treated as fixed at minimum only, and he is eligible to draw dearness relief on pension".
Sir, I Came out from IAF after serving for 20 yrs in Feb 2005 and I got Job in Heavy Vehicles Factory which come under Min. Of Defense joined in the month of Nov 2005 same year. Now problem is that regarding pay fixation of last pay drawn. . they say pay will fixed only those who retired from services pre 2006 and joined civil services after 2006.pls give info or any letters or DOPT Orders for us to get. we r 50 ex serviceman r waiting for ur reply.my mail id is. prabathulam@yahoo.co.in. tks a lot gd day.
ReplyDeleteDear Sir, Kindly refer your post. You are eligible for pay protection in terms of hard ship faced while re-employment. But under hard ship clause, there is provision of advance increment instead of pay protection and how they are being granted required to be confirmed from your HR section. Further the provision of giving advance increment is mention in very old circular of Govt i.e around 1954 to 1964. Please try to get that circular, this can only help you.
Deletestill this problem persists sir, SBI, hyderabad circle is recovering the msp paid and refixing the ex-servicemen payment. what to do? please guide us.
ReplyDeleteSir Please let know that is there any policy for re-fixation of pay re-employed ex-serviceme i gentral governent departments.
ReplyDeleteI shall be highly grateful to your kind gesture.
What happened to stay by kerala highcourt in pay fix anomaly???
ReplyDeletePara 2.1 referred in case of Ex-servicemen retired before 01-01-2006, hence advised vide OM No. 3/19/2009-Estt.(Pay II) dated 8th November 2010 to define pre-retirement pay.
DeleteBut in the succeeding sub para (i) refers to Pre-retirement pay for those who retired after 1.1.2006.
As the sub para (ii) specified particularly for In case of Officers who retired before 1.1.2006 and also those who retired after 1.1.2006, and then sub para (i) is defined for Personnel Below officer Rank only.
no one knows what is the fate of exserviceman in bank IBA is on silent mode because they have issued the guidelines but these guidelines are only for the officer not for the PBOR only banks extended the benifit of fixation to PBOR now see who will correct it. DOPT alredy made it clear that this letter is not for PBOR and they are not authorise for pay fixation. those who got enjoy it all the best every thing is possible in india where without doing miltary job you can get duble msp in bank one in pension and another in pay protection.
ReplyDeleteGovernment is interested in Service Personnel only till they are putting on Uniform. The day hang their Uniform become Ex-Servicemen, the game starts. In the Uniform they are Governed by Military Law and afterwards they are slogging on the road for the anomly created by Babus. May God help our Armed Forces personnel.
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ReplyDelete