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DIFFERENCE BETWEEN IOR & MULTIPLICATION FACTOR
The multiplication factor was increased from 2.57 to 2.67 for Brigadiers, but we are getting pension as multiplied by 2.57. We thought the anamoly would be rectified when the the pension tables are issued. Please clarify.
With regards
Brig K M Rao (Retd)
Member TESWA
1. The Index of Rationalisation ( IOR) for Brigadiers has been enhanced to 2.67 and not multiplication factor which remains same at 2.57.
2. Permit me to explain a difference
3. Multiplication Factor. It is nothing but ratio between Minimum pay in 7th CPC and Minimum pay in 6th CPC. The minimum pay of Central Govt Civilian Employee is Rs 7,000 in 6th CPC which has been enhanced to Rs 18,000 in 7th CPC. The ratio is Rs 18000 / 7000 = 2.57. Therefore the pay of all those pensioners in Dec 2015 is multiplied by 2.57 to arrive at pay in Jan 2016. So are the pension of all Pre - 2016 pensioners. For Brig with 32 years' service the pension in Dec 2015 was Rs 37,280. In Jan 2016 it goes by 2.57 times i.e. 37280 x 2.57 = Rs 95,810 pm.
Let us take an example to understand how pay of serving Brigadier is fixed as on Jan 2016.Let us assume his Pay in Pay Band in Dec 2015 is Rs 51,100 and Grade Pay is Rs 8900. The sum is Rs 51100 +8900 = Rs 60,000. To get his pay in 7th CPC multiply this with Multiplication Factor of 2.57 as explained. The pay in Jan 2016 before Def Pay Matrix is Rs 60000 x 2.57 = Rs 1,54,200. But this cannot be less than what is given in the Def Pay Matrix ( Entry pay of Rs 52290 x 2.67 of IOR). The figure in Def Pay Matrix closest is Rs 1,57,100. Therefore the matrix pay of Brigadier as in Jan 2016 is Rs 1,57,100. To get the Last Drawn Emoluments (LDE) add MSP of Rs 15,500. The LDE is Rs 157100 + 15500 = Rs 1, 72,600.If this Brigadier retires in Jan 2016 then his pension is 0.50 x LDE = Rs 0.50 x 172600 = Rs 86,300 + DR.
From this long explanation you can make out is : Multiplication Factor and IOR are both used in fixing pay of Serving soldiers. IOR has no effect on Pre – 2016 Pensioners. Their pension is Pension in Dec 2015 x 2.57 only.
6. When will IOR Benefit Pre – 2016 Brigadiers? As explained, the IOR has no effect on pension of Pre – 2016 Brigadiers till Jun 2019. When OROP – 2018 is implemented w.e.f. Jul 2019, then Average Pension of Brigadiers retired in calendar year 2018 is taken in fixing pension of Pre – 2016 Brigadiers. Since Post – 2016 Brigadiers are benefited by IOR of 2.67 and their pensions have gone up since Jan 2016 all Pre – 2016 Brigadiers will get the benefit of IOR of 2.67 only w.e.f. Jul 2019.
7. Sir, I hope I have cleared the doubt about IOR and Multiplication Factor.Though these two have different meanings, yet for Post – 2016 serving soldiers, IOR and Multiplication factors have been used in fixing pay as in Jan 2016. Now I am sure you know what is IOR and what is Multiplication Factor.
Brig CS Vidyasagar (Rtd)
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DIFFERENCE BETWEEN IOR & MULTIPLICATION FACTOR
Sivasankar Vidyasagar
July 14 ,2018
Dear sir,
The multiplication factor was increased from 2.57 to 2.67 for Brigadiers, but we are getting pension as multiplied by 2.57. We thought the anamoly would be rectified when the the pension tables are issued. Please clarify.
With regards
Brig K M Rao (Retd)
Member TESWA
Dear Brig
1. The Index of Rationalisation ( IOR) for Brigadiers has been enhanced to 2.67 and not multiplication factor which remains same at 2.57.
2. Permit me to explain a difference
between IOR and Multiplication Factor.
3. Multiplication Factor. It is nothing but ratio between Minimum pay in 7th CPC and Minimum pay in 6th CPC. The minimum pay of Central Govt Civilian Employee is Rs 7,000 in 6th CPC which has been enhanced to Rs 18,000 in 7th CPC. The ratio is Rs 18000 / 7000 = 2.57. Therefore the pay of all those pensioners in Dec 2015 is multiplied by 2.57 to arrive at pay in Jan 2016. So are the pension of all Pre - 2016 pensioners. For Brig with 32 years' service the pension in Dec 2015 was Rs 37,280. In Jan 2016 it goes by 2.57 times i.e. 37280 x 2.57 = Rs 95,810 pm.
4. Index of Rationalisation (IOR). This is term used to show the degree of responsibility of serving soldiers. The responsibility of Lt and Brig is not same. Therefore higher is the rank, higher is IOR. For Brigadiers it was initially fixed at 2.57 whereas for DIG in CAPFs it was 2.67. This anomaly was brought to the notice of Ministry of Defence by the three Service HQs. The same was later rectified by enhancing IOR of Brig to 2.67. (IOR of Lt Cols and Cols has also been enhanced to 2.67 but IOR for Brigadier who shoulder more responsibility than Colonel has been kept at 2.67. Had it been for IAS they would have got it enhanced to 2.70). IOR is more relevant to serving soldiers. The Defence Pay Matrix is constructed using two terms i.e. one is IOR and another is Entry Pay. The first cell in the Defence Pay Matrix is arrived by simple formula which is IOR x Entry Pay. For Brigadiers Entry pay is Rs 52,290. Vide SAI 2/S/2008, the Pay in Pay Band for Brigadier in Jan 2006 is Rs 43,390 and Grade pay is Rs 8900. Therefore the sum of Pay in Pay Band + Grade comes to Rs 43390 + 8900 = Rs 52,290. Therefore 7th CPC fixed Entry Pay of Brigadier at Rs 52,290. With IOR being 2.67 the first cell in Def Pay Matrix is IOR x Entry Pay = 2.67 x 52290 = Rs 1,39,614 rounded off to Rs 1,39,600. The next lower cell in Def Pay Matrix with increment of 3% is Rs 139600 x 1.03 = Rs 143800 pm. In this manner the pay scale in Def Pay Matrix for Brig has been worked out for 16 years with maximum being Rs 2,17,600 pm + DR.
5. Relationship Between IOR and Multiplication Factor. IOR as explained above is more relevant for serving soldiers and not for Pre – 2016 pensioners. The minimum pay of serving Brigadier in Jan 2016 is arrived by taking his Pay in Pay Band + Grade pay in Dec 2015. Then to go from 6th CPC to 7th CPC it is multiplied by Multiplication Factor of 2.57 ( i.e. 18000 / 7000).
Let us take an example to understand how pay of serving Brigadier is fixed as on Jan 2016.Let us assume his Pay in Pay Band in Dec 2015 is Rs 51,100 and Grade Pay is Rs 8900. The sum is Rs 51100 +8900 = Rs 60,000. To get his pay in 7th CPC multiply this with Multiplication Factor of 2.57 as explained. The pay in Jan 2016 before Def Pay Matrix is Rs 60000 x 2.57 = Rs 1,54,200. But this cannot be less than what is given in the Def Pay Matrix ( Entry pay of Rs 52290 x 2.67 of IOR). The figure in Def Pay Matrix closest is Rs 1,57,100. Therefore the matrix pay of Brigadier as in Jan 2016 is Rs 1,57,100. To get the Last Drawn Emoluments (LDE) add MSP of Rs 15,500. The LDE is Rs 157100 + 15500 = Rs 1, 72,600.If this Brigadier retires in Jan 2016 then his pension is 0.50 x LDE = Rs 0.50 x 172600 = Rs 86,300 + DR.
From this long explanation you can make out is : Multiplication Factor and IOR are both used in fixing pay of Serving soldiers. IOR has no effect on Pre – 2016 Pensioners. Their pension is Pension in Dec 2015 x 2.57 only.
6. When will IOR Benefit Pre – 2016 Brigadiers? As explained, the IOR has no effect on pension of Pre – 2016 Brigadiers till Jun 2019. When OROP – 2018 is implemented w.e.f. Jul 2019, then Average Pension of Brigadiers retired in calendar year 2018 is taken in fixing pension of Pre – 2016 Brigadiers. Since Post – 2016 Brigadiers are benefited by IOR of 2.67 and their pensions have gone up since Jan 2016 all Pre – 2016 Brigadiers will get the benefit of IOR of 2.67 only w.e.f. Jul 2019.
7. Sir, I hope I have cleared the doubt about IOR and Multiplication Factor.Though these two have different meanings, yet for Post – 2016 serving soldiers, IOR and Multiplication factors have been used in fixing pay as in Jan 2016. Now I am sure you know what is IOR and what is Multiplication Factor.
Warm regards,
Brig CS Vidyasagar (Rtd)
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