The pay commission has not accepted Armed Forces demands for graded rates for military service pay (MSP), incentives for select ranks from Colonels to Lt Generals and inclusion of Lt Generals in higher income group. The commission was divided on the contentious issue of non-functional upgradation (NFU) for defence officers. According to the report, Chairman A K Mathur felt that "NFU should be extended to the officers of the defence forces and CAPFs (Central Armed Police Forces)". However, members Vivek Rae and Rathin Roy said in the report that they "have not agreed with the views of the chairman" and were "of the considered view that NFU till SAG (senior administrative grade) and HAG (higher administrative grade) level, granted to Organised Group 'A' Services, should be withdrawn." While accepting that the nature of duties of the armed forces is unique and calls for retention of MSP, the commission rejected the demand of the service headquarters to implement "graded rates for MSP as a percentage of pay in the pay band and grade pay" against the existing fixed MSPs corresponding to ranks.