After 66 yrs, Army Officers'' benevolent fund to shut

Vijay Mohan

Tribune News Service

Chandigarh, December 6

Over 66 years after it was instituted, the Army Officers Benevolent Fund (AOBF), a contribution-based welfare scheme for widows and aged veterans, is being closed down. There will be no contribution to the scheme or release of grants with effect from January 1, 2018.

The fund was set up in April 1951 with the sole aim to extend financial help to widows or next of kin of subscribers who die in harness or after retirement. The scheme, when launched, was visualised to be more like an insurance scheme. Over the years, the scope of the fund was enhanced to include a Platinum Grant and Centenarian Grant to all veteran officers who attained the age of 75 and 100 years, respectively.

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“When instituted in 1951, there were no welfare schemes available to next of kin of officers. With various welfare schemes now in place vis-à-vis the meagre assistance being given from the AOBF, it has been opined that maintaining an organisation like AOFB is no more cost-effective,” a letter issued on December 4 by the Ceremonials and Welfare Directorate at Army Headquarters states.

Subscription towards the AOBF is mandatory for all Army officers, including those on deputation. At present, the Army’s officer cadre numbers about 41,000 against the authorised strength of 49,737 officers (excluding the medical stream), who are required to contribute Rs 120 per month.

All subscribers or next of kin are entitled to receive either the Platinum Grant or the Demise Grant, whichever becomes applicable earlier. For officers who die in harness, retired officer with 20 years of service and those invalided out, irrespective of the length of service, receive a lump sum grant of Rs 50,000. This is proportionately reduced for retired officer having service less than 20 years.

On closure of the fund, the subscriptions made by all officers, equivalent to the savings component of an insurance scheme, will be refunded on a pro-rata basis, depending on the total subscription made and availability of the fund.