The Defence Pension Scheme in India is a social security program for retired personnel of the Indian armed forces and their families. It is an important initiative to provide a sense of financial security and stability to the brave men, women and their families who dedicate their lives to serving the country. This article will help you to learn the details and benefits of this scheme in detail.Read more
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Defence Pension Scheme is an initiative of the Government of India to ensure the well-being of retired military personnel and their families by offering a monthly pension scheme and other benefits.
This pension plan recognizes the sacrifices and services rendered by military personnel in the defence of their nation.
The key features of a defence/ army pension scheme are as follows:
|Launched By||Government of India|
|Administered By||Ministry of Defence|
|Beneficiaries||The scheme offers pensions to the following personnel and their families:
|Pension Benefits||Provides a regular defence/ army pension to retired military personnel based on:
|Disability Pension||To the injured or disabled ex-servicemen while serving in the defence services|
|Family Pension||To the spouse or dependent family members of the retired personnel in case of their death|
|Gratuity||Provides a lump-sum payment as a gratuity to the veterans upon retirement|
|Commutation||Allows the retired personnel to commute a portion of their defence/ army pension in exchange for a lump-sum payment|
|Medical Benefits||Provides medical benefits to retired personnel and their dependents under the Ex-Servicemen Contributory Health Scheme (ECHS)|
|Pension Revision||Offers periodic revision of pension to ensure that the pension amount keeps up with inflation|
Let us have a look at the major types of defence pension schemes from the table mentioned below:
|Type of Defence Pension Scheme||Details|
|Family Pension/ Vidhwa Pension||In case of absence of the personnel due to natural death, a pension to their family is provided at:
|Special Family/ Vidhwa Pension||In case of death of the personnel attributed to/ aggravated by the Military Service:
|Liberalized Family/ Vidhwa Pension||
|War Injury Pension||Pension of War Injury Element is provided in case of 100% disability:
|Invalid Pension||The pension for invalided cases due to disability is Neither Attributable Nor Aggravated (NANA) type:
|Reservist Pension||A pension is provided for:
Note: The earlier criteria of a minimum of 10 years of service in the armed forces is not required from 16 July 2020.
The list of regulations under which the Air Force, Navy, and Army pension is provided is as follows:
The scheme of disbursement of defence pensions by government agencies is mentioned below:
21 Public Sector Banks, and
3 Private Sector Banks (HDFC/ ICICI/ Axis Bank)
Here is the grievance Redressal procedure for the aggrieved pensioners on denial of entitlement:
|Defence Pension Adalat||
|Appeal for Disability Pension Grievances||First Appeal:|
|Pensioners aggrieved by First Appeal may file for a Second Appeal|
The important documents required to join the Defence Pension Scheme are as follows:
|ID Proof||Passport/ Aadhar Card/ Driving License|
|Address Proof||Utility Bill/ Bank Statement/ Rent Agreement|
|Bank Account Details||Bank Passbook/ Account Number/ IFSC Code/ Branch Name & Address|
|Nomination Form||Nominees Details|
The Defence Pension Scheme in India offers various benefits to retired personnel of the Indian Armed Forces and their families. Some of the key benefits are:
The defence/ army pension scheme provides a regular income to retired personnel to ensure financial security and stability for the pensioner and their family.
The pension amount is adjusted periodically to account for inflation, which ensures that the pension retains its purchasing power over time.
Retired personnel and their dependents are eligible for various medical benefits, including medical facilities, hospitalization, and treatment expenses, under the Ex-Servicemen Contributory Health Scheme (ECHS).
Retired personnel are eligible for various housing benefits, including allotment of houses, land, and loans for house construction, under various schemes, such as:
Retired personnel are eligible for various travel concessions, including free rail/ air/ bus travel, under various schemes such as the Indian Railways, Air India, and State Transport Undertakings.
Retired personnel are eligible for various post-retirement benefits, including:
The Defence Pension Scheme is a vital support system for the armed forces personnel and their families. It provides financial security to the retired or deceased members of the defence forces and their dependents through various defence/ army pension schemes.
The defence/ army pension amount for a soldier in the Indian Armed Forces depends on several factors such as:
length of service
last pay drawn
The pension amount is calculated based on a percentage of the last pay drawn, and this percentage varies based on the rank and length of service.
Old Pension Scheme
Defence Pension= Average emoluments drawn in last 10 months of service × Percentage factor
Percentage Factor (PF): Determined by the relevant Pay Commission Recommendation and Pension Regulations
PF is determined based on the length of service and rank of the pensioner
New Pension Scheme: National Pension System (NPS)
Calculated based on the contributions made by the employee and the employer in the NPS, along with the investment returns generated by the pension fund
Investment Options: Equities/ Government Securities/ Corporate Bonds
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