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Revision of Pension Vth CPC of  Pre-86 Pensioners/Family Pensioners

Subject:- Implementation of Govt. decision on the recommendations of the Vth Central Pay Commission; Revision of pension of Pre-1986  Service pensioners etc./ Ordinary family pensioners belonging to Armed Forces Commissioned Officers. 

Authy. :- Govt. of India , Min. of Defence letter no. 1(3)/98/D(Pens/Sers) dt. 27-05-1998 as modified vide Govt. of India, Min. of Defence letter no. 1(1)/99/D(Pens/Sers) dt. 07-06-1999. 

Applicability :- The above Govt. letter is applicable to all Pre-86 pensioners/family pensioners who were in receipt of following types of pensions as on 01-01-1996. 

(a)    Retiring Pension

(b)   Invalid Pension

(c)    Ordinary Family Pension

(d)   Service Element of Disability Pension

(e)    Service Element of War Injury Pay 

These orders apply to all the Armed Forces Commissioned Officers i.e. P.R.C., including M.N.S., E.C./S.S.C. and T.A. officers and officers of State forces and their N.O.Ks who were drawing pension/family pension as on 01-01-1996 under the Pension Regulations of the three Services/State Forces and various orders issued from time to time. 

Summary :- Under the above Govt. letter revision of Pension/Ordinary family Pension is to be done based on the notional pay fixed as on 01-01-1986. The notional pay so arrived as on 01-01-1986 shall be treated as average emoluments for the purpose of calculation of Pension /Ordinary family pension and accordingly the pension shall be calculated as on 01-01-1986 as per pension formula then prescribed. For calculation of pension with reference to notional pay as on 01-01-1986 weightage as admissible vide para 5(b) of Ministry of Defence letter no. 1/(5)/87/D(Pension/Services) dt. 30-10-1987 shall be added to actual qualifying service (including former service), if any, already admitted and notified in Army/ Naval / Air Force list. The pension/ ordinary family pension  shall be worked out/ consolidated as on 01-01-1996 in accordance with the provisions contained in Govt. of India, Ministry of Defence letter dt. 27-05-1998 & 24-11-1997 cited above. However, as per modified provisions contained in Govt. of India, Ministry of Defence letter dt. 07-06-99, the pension/ ordinary family pension so consolidated shall not be less than 50% / 30% of the minimum pay in the revised scale of pay introduced w.e.f. 01-01-1996 of the rank last held by the pensioner/ deceased officer. The existing provisions in the rules governing qualifying service and minimum pension shall continue to be operative.  

Conditions:- The Provisions of the above letter do not apply to the following categories:- 

      i.        Gallantry awradees-monetary allowance attached to the award, such as Param Vir Chakra, Ashok Chakra, etc.

     ii.        UK/HKSRA Pensioners

   iii.        KCIOs who were in receipt of pension in pound sterling as on 01-01-1996

   iv.        Persons in receipt of Disability element only.

 Implementation :- Under mentioned agencies are involved in implementation of above order for revision of pension:

(a)                Pensioners/family pensioners

(b)               Pension Disbursing Authorities

(c)                Pay Accounting Authorities

(d)               Pension Sanctioning Authorities.


(a)                Pensioners: Pensioner is to apply in the Prescribed form (Annexure-II) to the PDA. 

(b)               PDA:            PDA will authenticate relevant entries (Col 1 to 10) and forward the application to CDA(O) Pune. 

(c)                CDA(O) : CDA(O) Pune will fix Notional Pay as on 1-1-86 and submit the application to the PSA Viz Principal CDA(P). 

Note: In the case of Naval and Air Force officers, who retired or died in harness on or after 1-11-85, shall be forwarded to CDA(Navy) and CDA(AF).   

(d)               Pr. CDA(P): As per Govt. orders pension of all Pre 86 retirees may be updated by notional fixation of their pay as on 1.1.86 by adopting the same formula as for the serving Armed Forces officers and thereafter for the purpose of consolidation of their pension/family pension as on 1.1.86, they may be treated alike those who have retired on or after 1.1.86. Necessary Corr. PPOs shall be issued by the Pr. CDA(P) keeping in view the modified provisions contained in Govt. letter dt. 24-11-1997, dt. 27-05-1998 and dt. 7-6-99. 

Model Calculation  






Date of Birth




Date of Retirement




Qualifying Service


31 yrs 4 months 12 days


Rank Weightage


8 yrs.




39 yrs 4 months 12 days

Restricted to Max. 33 yrs.


Retiring Pension granted w.e.f. 1.10.79


Rs. 875/-


Ordinary Family Pension:-





Enhanced Rate


Rs. 420/-



Normal Rate


Rs. 210/-


Notional Pay fixed as on 1-1-86


Basic Pay - Rs. 3400/-

Rank Pay  - Rs.  600/-

Total         - Rs. 4000/-


Pension admissible under Govt. letter dt. 27-5-98 & consolidated under Govt. letter dt. 24-11-97

(Detailed calculation given below.)


Retiring Pension - Rs. 5640/-

F.P. (Normal)      - Rs. 2438/-



Retiring Pension admissible as per Govt. letter dt. 7.6.99 (Modified Parity Orders) i.e. 50% of minimum of revised pay scale of Major w.e.f. 1.1.96 (Min. pay of Major Rs. 11600 + Rank Pay Rs. 1200/-)


Rs. 6400/- w.e.f. 1.1.96



Ordinary Family Pension (Normal Rate) i.e. 30% of minimum of the revised pay scale of Major (Min. pay of Major Rs. 11600 + Rank Pay Rs. 1200/-)


Rs. 3840/-



Since the officer has attained the age of 65 yrs. as on 1-1-96 Enhanced rate of Family Pension is not admissible.




 Calculation of consolidation of Retiring Pension as shown in column 6

 Basic Pension                           Rs. 2000/-

(i.e. 50% of Rs. 4000/- (Notional Pay fixed on 1-1-86))

111% DR                                 Rs. 2590/- (Minimum)

IR1                                          Rs. 50/-

IR2                                          Rs. 200/-

Fitment Weightage (40%)  Rs. 800/-

Total                                        Rs. 5640/-


Calculation of consolidation of Normal Family Pension 

Normal rate of Family Pension as on 1-1-86 @ 15% of Rs. 4000 (Notional Pay)

Rs. 600/-

Consolidated Family pension as admissible on 1-1-96 under Govt. letter dt. 24-11-97

Rs. 1838/-

Family pension as admissible on 1-1-96 @ 30% of Notional Pay

Rs. 1200/-

Additional Family Pension as admissible on 1-1-96

(Rs. 1200 - Rs. 600 )

Rs. 600/-

Total Family Pension as admissible on 1-1-96

(Rs. 1838 + Rs. 600)

Rs. 2438/-