Reviewing Pay and Allowances of Armed Forces Personnel The Government entrusted the task to a Pay Commission in 1973, at the time of setting up of 3rd Central Pay Commission. The Government had set up a Post War Pay Committee in 1947, a departmental pay committee (Raghuramiah Committee) during 1959-60 and another Departmental Committee in 1967 for review of pay and allowances of Defence Forces Personnel. There was general discontentment amongst the Services with respect to the recommendations of these Committees. Thereafter, the Government decided to entrust the examination of structure of emoluments, including benefits in cash and kind and death cum retirement benefits of the Armed Forces to the 3rd Central Pay Commission. The terms of reference with respect to the Armed Forces personnel were different to the extent that the 3rd Central Pay Commission was not required to make recommendations on the conditions of service of the Armed Forces personnel. Though, the matters related to pension of Defence Service personnel was referred to 3rd Pay Commission, there has been no clubbing with civilians. The Commission felt that by and large, the principles followed by Armed Forces Pension Revision Committee (AFPRC) continue to be valid. The 3rd Pay Commission had considered the peculiar conditions of service and hierarchical set up of the Services, age of retirement, period of qualifying service pension etc. in respect of Armed Forces personnel. As such there has been no mistake in entrusting the matter to 3rd Central Pay Commission. This information was given by Defence Minister Shri Manohar Parrikar in a written reply to Shri Mahendra Singh Mahra in Rajya Sabha today. DM/NAMPI/RAJ
