Disability Pension Loopholes: After CAG Rap, Armed Forces Set Up Panel To Review Criteria

The Department of Military Affairs (DMA), headed by the Chief of Defence Staff (CDS), General Anil Chauhan, has set up a panel to look into the increase of disability pensions among armed force personnel.

This comes after the Comptroller and Auditor General (CAG) released a report last month which questioned the rise of disability pensions of retired officers, especially of medical officers.

The report questioned the Defence Ministry as to how over 35 to 40 per cent of officers are able to take disability pensions compared to 15-18 per cent of jawans, after retirement.

Moreover, the report questioned that why more than 22 per cent officers and 13 per cent Personnel Below Other Ranks (PBOR) are taking disability pensions for lifestyle diseases like hypertension and diabetes.

In addition, a ‘significantly higher’, 44 to 58 per cent of the medical officers retired with disability pensions.

The Army HQ, however, has acknowledged that the officers are utilising a loophole in the process. Some top officers, just days before retirement, are able to get disability certificates to get higher pensions.

According to a report, a disability pension, on an average, is more than 20 to 50 per cent of the normal pension.

Armed forces personnel experience disabilities which can be categorised as battle casualties caused during wars or due to harsh service conditions. Those with 100 per cent disability receive 30 per cent of their last salary, while lower ratings receive a proportionally reduced amount.

However, individuals with less than 20 per cent disability do not qualify for any benefits. Medical boards are responsible for grading the percentage of disability.

The precise value of total disability pensions, which is also exempt from income tax, is not public information but it has increased significantly in the last 20 years and was valued at approximately Rs 4,000 crore in 2022-23. In 2023-24, the total defence pension is estimated to be around Rs 1.38 lakh crore.

The panel is set up on the directions of Gen Anil Chauhan. It will assess the reasons behind the higher percentage and report back to the Defence Ministry.

A senior medical officer from the Directorate General Armed Forces Medical Services (DGAFMS), as well as representatives from the Department of Ex-Servicemen Welfare, MoD (Finance), Department of Military Affairs (DMA), and the Adjutant General’s Branch comprise the panel.

Moreover, the committee will include members of the personnel branch, for officers and men, of the three services.

Over the last five years, defence pensions have surged from Rs 1.08 lakh crore in 2018-19 to Rs 1.38 lakh crore in 2023-24. The increase in pensions is due to higher disability pensions, the revision of the ‘One Rank, One Pension’ scheme and arrears amounting to Rs 28,138 crore.

The CAG report found that incomplete data in the pension disbursing authority's database hindered the analysis of disability causes among the defence forces and the identification of potential solutions to reduce such cases.

The disability pension payout of approximately Rs 4,000 crore has raised concerns in the government due to the auditor's observation that 40 per cent of all officers retire with disabilities.

Rather than just saving money, having a comprehensive database of pensioners is essential. The Defence Ministry should keep a full record of pensioners to analyse the causes of disability, such as lifestyle diseases, for potential corrective measures.

Government officials stated that serving in challenging areas like high altitude and insurgency-prone regions has resulted in armed forces personnel acquiring disabilities, both major and minor, and worsening of lifestyle diseases. Personnel can also claim pension benefits for disabilities like partial hearing loss and lower backache.