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Defence Pension Scheme

The Defence Pension Scheme is a comprehensive framework of financial benefits offered to retired military personnel and their respective family members in India. This scheme aims to provide adequate financial support for the armed forces' continued support and contribution. It takes into consideration different types of pensions and gratuities designed to meet the unique needs of defence personnel.

Continue reading this blog to gain detailed insights about the pension schemes for defence employees and their features, benefits, and more.

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Defence Pension Scheme

What Is a Defence Pension Scheme?

Defence Pension Scheme
November 11, 2024

Table of Content

 

The Defence Pension Scheme is an initiative by the Government of India to provide financial stability and security to retired individuals in the Indian Armed Forces. By opting for this scheme, retired personnel and their families can get monetary assistance during times of need.

These people devote their entire lives to our nation. Thus, in return, the government pays tribute to these dedicated people with different benefits, including medical pay, monthly pension payments, and other advantages. This scheme ensures that military personnel who have served the nation are leading a comfortable and relaxing life post-retirement.

Features of the Defence Pension Scheme

Here are some distinguishing features of the Defence Pension Scheme:

Features

Details

Launched By

Indian Government

Administered By

Ministry of Defence

Beneficiaries

The Defence Pension Scheme provides pensions to the following families and personnel:

- Former non-officer personnel served for the last 15 years minimum

- Former officers who have served for at least 20 years

- Families belonging to deceased military personnel

- Civilians being employed in the defence sector

Pension Benefits

All retired military personnel receive a regular defence/army pension considering these factors:

- Length of service

- Rank

- Other criteria

Family Pension

In case of the sudden demise of a retired individual, an army/defence pension is provided to their beneficiaries.

Gratuity

A lump sum amount is provided in army/defence as gratuity upon retirement

Commutation

The retired individual is allowed to commute a large portion of their defence/army pension in exchange for a lump sum payment amount.

Medical Benefits

Retired personnel, along with their dependents, receive medical benefits under the Ex-Servicemen Contributory Health Scheme (ECHS)

Pension Revision

The pension amount is revised often to keep up with the pace of inflation

Types of Defence Pension Scheme

There are several types of Defence Pension Schemes available. If you are looking for an investment plan post-retirement, gaining a proper understanding of each of these schemes is important.

Types of Defence Pension Scheme

Details

Service Pension

Minimum pension amount: Rs. 9000 per month

Maximum pension amount: Can be the higher of:

- 50% of the average of the emoluments drawn during the last 10 months

- 50% of the emoluments last drawn

- Eligibility Criteria: Here are the eligibility criteria to follow to qualify for the service pension scheme:

- Minimum 15 years of service as personnel below the Officer's rank

- Minimum 20 years of service as a Commissioned Officer

Family Pension/Vidhwa Pension

Upon a personnel’s sudden death, the family members will receive either of these options:

- At least Rs. 9,000 per month

- 30% of the emoluments last drawn

Special Family/Vidhwa Pension

If the death of personal attributes to the service in the military:

- The personnel’s family receives a special pension amount

- 60% of the emoluments drawn at last by the deceased personnel

Liberalized Family/Vidhwa Pension

Under the Vidhwa Pension Scheme, a personnel’s family receives a pension if the death of personnel takes place because of these incidents:

- Confrontation with terrorists

- Counter-insurgency operation

- War or any war-like situation

The pension amount equals the emoluments last drawn by the deceased personnel.

Disability Pension

Defence/army pension is provided in cases where the personnel was invalidated-out from the armed forces because of their disability.

Disability factors of this pension include:

- In proportion to the desired level of disability

- In case of 20% disability or less, no disability pension is provided

- Upon full disability, pension is provided up to 30% of the emoluments last drawn

Service element of the pension: The retirement pension provided is 50% of the emoluments last drawn.

War Injury Pension

In cases of 100% disability, the pension is provided following the below criteria:

- Discharge cases: 60% of the emoluments last drawn

- Invalid cases: Equals the emoluments last drawn

- The pension amount reduced as per the disability level

Invalid Pension

In cases of disability that is NANA (Non-Attributable Nor Aggravated) type, pension is provided following the below criteria:

- Personnel’s serving from 4th July 2019

- If the personnel is terminated from military service permanently and re-employed in a different private sector.

- If the personnel is left invalid because of NANA-type mental or body injury

Reservist Pension

Under this scheme, a pension is provided following the below-mentioned criteria:

- Completed at least 15 years in the prescribed and combined Color and Reserve Service

- At least two-thirds of the pension amount as provided to a Sepoy

Benefits of the Defence Pension Scheme

The Defence Pension Scheme is designed specifically to provide financial stability to retired military personnel and their families after retirement. Thus, by providing a stable source of income, the scheme looks after the financial well-being of those contributing to the nation’s defence. The main benefits of the defence retirement plan are as follows:

  • Regular Income

This pension scheme provides a regular source of income to respective retired personnel employed in the Indian armed forces. With a steady flow of income post-retirement, pensioners and their families can achieve financial stability and security.

  • Inflation Adjusted

The pension amount changes on a regular basis as per the rate of inflation, ensuring that soldiers' purchasing power is retained over time. Furthermore, the pension amount is equalised for every personnel of the same rank every five years.

  • Medical Benefits

The defence personnel and their beneficiaries can experience several medical-related benefits that include costs of treatment, medical bills, and hospitalisation expenses under the ECHS.

  • Housing Benefits

Retired personnel employed in the Indian armed forces can also avail various housing benefits that include land and loans relating to the construction of houses, allotment of land, and houses under different schemes that include:

a) Army Welfare Housing Organization (AWHO)

b) Armed Forces Flag Day Fund

c) Navy and Air Force Housing Boards

  • Travel Concessions

Retired personnel can avail travel concessions that include air/bus/free rail travel under different schemes of Air India, Indian Railways, and State Transport Undertakings.

  • Post-Retirement Benefits

Other post-retirement benefits that every retired personnel in the Indian armed forces can experience include:

a) Educational assistance provided to children

b) Canteen facilities

c) Scholarships provided for higher education

Defence Pension Regulations

The pension rules applicable for the Army, Navy, and Air Force under which the Defence Pension is provided are listed below:

  • Pension Regulations for the Air Force, 1961
  • Pension Regulations for the Army (PRA), 1961 [Revised PRA in 2008]
  • Entitlement Rules for Casualty Pensionary Awards, 2008
  • Navy (Pension) Regulations, 1964

Documents Required for Defence Pension Scheme

To avail the Defence Pension Scheme, keeping documents ready is of utmost importance for a smooth approval and verification process. Here is the required set of documents mandatory to avail the benefits of this scheme:

  • Address Proof: Verification of the existing residential address
  • Discharge Certificate: Proof of service and retirement
  • Bank Account Details: For smooth transfer of pension funds
  • Pension Payment Order (PPO): Issuance during the time of retirement
  • Proof Of Identification: PAN card, Aadhaar card, and military ID
  • Medical Certificates: Applicable only to those applying for invalid and disability pensions
  • Details of Family: For claiming pension for families, including the birth certificates of dependents as well as a marriage certificate

Conclusion

For the valuable contribution of the armed forces personnel, the Government of India provides nearly every one of them with a pension upon retirement, disability or death. Similar to the Defence Pension Scheme, the government has different other income schemes designed specifically for the armed forces personnel to assist them with retirement planning. These schemes are updated frequently to keep up with the pace of inflation with other factors.

However, there are certain problems and challenges that impact the on-time payment of income. Thus, the Indian armed forces and associations of retired personnel should work together to solve these problems to bring about significant improvements for the Indian armed forces.  

The HDFC Life Retirement Plans and Pension, as part of the broader suite of income schemes, play a crucial role in providing additional financial security and peace of mind for the brave men and women who have served the nation.

FAQs on Defence Pension Scheme

1. Who is eligible for a Defence Pension?

Any retired military personnel fulfilling the eligibility criteria and serving the tenure based on their rank are eligible for a Defence Pension.

2. How is the amount of my Defence Pension calculated?

There are several factors to consider when calculating the defence pension amount for military personnel. These factors include length of service, rank, and last drawn salary of the employed personnel, along with adjustments for inflation and equalisation of pay.

3. What is the new pension scheme for Defence?

A new pension scheme for Defence in India is the National Pension System (NPS). Introduced in 2004, this scheme provides additional benefits to those employed in the Central Government, including defence personnel. This pension scheme is based on the recommendations of the Pay Commission and the Defence Pension Regulations.

4. How much is the army pension for a month?

A soldier’s army pension for a month depends on their rank and service provided during their employment. The pension amount thus calculated is a significant portion of the pension payable received if they were alive. The family pension amounts are updated over time based on the Pay Commission's recommendations.

5. What is a PPO (Pension Payment Order)?

The PPO (Pension Payment Order) is an important document that military personnel can get from the Government of India. This document entails detailed information on the pension amount provided on a monthly basis, other details relating to your pension, and the commutation amount (if applicable).

6. How can I access my Defence Pension information online?

To access your Defence Pension information online, visit different official government portals such as the Centralised Pension Processing Centre (CPPC) and the Defence Pension Disbursing Office (DPDO).

7. How can I apply for a Defence Pension?

To apply for a Defence Pension, make sure to submit the necessary documents to the required pension office or through an online portal. The documents include a Pension Payment Order (PPO), discharge certificate, and others.

8. Can family members of deceased defence personnel receive pension benefits?

Yes, the family members of deceased defence personnel can receive pension benefits under the Family Pension Scheme and Liberalised Family Pension Scheme.

9. What if I have a question or problem with my Defence Pension?

If you have a question or problem with your Defence Pension, contact the Central Pension Authorities (CPA) or any pension disbursement agency for further assistance regarding your defence pension.  

Related Articles.

References

https://cgda.nic.in/training/trgDPTI/dpg.pdf

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Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

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1. Provided all due premiums have been paid and the policy is in force.

2. Tax benefits & exemptions are subject to conditions of the Income Tax Act, 1961 and its provisions. Tax Laws are subject to change from time to time.

NOTE- This article is for information purpose only and not intended to provide any investment, legal, tax, accounting or financial advice. The reader(s) should rely solely upon their own independent judgments, assumptions, experience and knowledge with respect to any particular decision.

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