At the beginning of this month, the three Chiefs met with Expenditure Secretary Sushama Nath to discuss the four core demands of the armed forces. Nath later briefed Pranab Mukherjee on this meeting.
Anyway, during the meeting between Nath and the three chiefs, the definition of Rank Pay came up. She indicated that there had been a Cabinet decision in 2000 which stated that Rank Pay did not form part of Basic Pay. In response, the Chiefs told her that if such a decision had indeed been taken, then the affected party, i.e. the services, were neither consulted nor made a party to the decision. And that even if such a decision had been taken, the Services Instructions issued by the MoD were not amended, adding that amendment of Service Instructions was a mandatory requirement, since it involved restructuring of the pay of service officers.
The contents of the GoI letter of 2000 (which Nath was referring to) with regard to Rank Pay were scrutinised during the meeting. It emerged that the contents of the letter were "entirely in consonance" with what the Chiefs were saying. The 2000 letter says "Rank Pay will be taken into account for determining their entitlements to such of those financial benefits, concessions, etc, including retirement benefits as are directly related to the basic pay or their pay scales."
Will be reporting more about this meeting on my channel shortly. Timings will be posted ahead.
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