MILITARY PENSION FACES AXE

By: Express News Service | Published on:March 9, 2015 12:00 am

 

There is an urgent need to debate the rising defence pension bill. In 2004, a debate over the mounting civilian pension bill led to the New Pension System for government employees, where pension contributions were defined and not benefits. But the armed forces were excluded from that system. Now, a beginning can be made by including pensions in the official defence budget.
In 1985, when Rajiv Gandhi was prime minister, defence pensions were removed from India’s overall defence expenditure, presumably to assuage global concerns about India’s defence bill, which was linked to its regional ambitions. The defence expenditure was then 3.6 per cent of India’s GDP. When that ratio has now come down to 1.75 per cent, the lowest in the post-1962 era, defence pensions still continue to be excluded from the defence bill. Over the years, defence pensions have grown exponentially — from Rs 1,670 crore in 1990-91 to Rs 15,244 crore in 2007-08 to Rs 50,000 crore in the current year — at a much faster pace than the defence budget. Next year, defence pensions are budgeted at Rs 54,500 crore, placed outside the official defence budget of Rs 2,46,727 crore. The pension bill is likely to rise by another Rs 8,400 crore with the implementation of the One Rank One Pension (OROP) scheme for military veterans. Every successive Pay Commission has raised the pension burden exponentially and the Seventh Pay Commission, coupled with the effect of OROP, will hit the exchequer even harder.
Approximately 60,000 soldiers retire from the 1.3 million-strong armed forces every year but early recruitment and retirement age, coupled with increased life expectancy, means that military veterans get pensions for a longer period than their civilian counterparts. Thus India now has 1.7 defence pensioners on its rolls for every serving soldier, compared to civilian employees where the ratio is 0.56 pensioners per employee, and defence pensions will soon exceed defence salaries. Even if military veterans and soldiers can’t be moved to a New Pension System, there is a need to look at other measures, such as reducing the minimum military service period, pushing for early retirement with lateral absorption schemes and identifying a new model of defence pensions for new recruits. These are desirable not only on the grounds of fiscal prudence, but also to keep the military lean and young.

http://indianexpress.com/article/opinion/ 

BRIEFING OF IESM MEETING WITH DM ON OROP

Dear Members

IESM delegation of five members met RM Sh Manohar Parrikar today at 1400 h. The salient points of the issues discussed in the meeting are given below and are attached. I am sure this will satisfy most of the queries of veterans arising out of budget speech given on 28 Feb 15. This is now clear that one needs to be optimistic and OROP will be out soon. However hold your celebrations till Notification of OROP is out as there is many a slip between the cup and the lip. 

Meeting of IESM Delegation with RM Sh Manohar Parrikar on 2 Mar 2015

IESM contacted Sh Manohar Parrikar Raksha Mantri at the end of the budget presented on 28 Feb 15 and communicated to him that ESM in general are disappointed because OROP has not been mentioned in the budget speech of Finance Minister and allocation of funds for OROP has not been announced. RM explained on telephone that OROP has been approved in two budgets and hence it is considered approved and therefore there was no need to mention in the budget speech. He was kind enough to invite the IESM delegation at 1400h on 2 March 15 to clear any doubts if we had any.

Following five members of IESM met Sh Manohar Parrikar RM at 1400h on Monday 2 March 2015.   

1. Maj Gen Satbir Singh SM
2. Col Kirit Joshipura
3. Col Anil kaul VrC
4. Wg Cdr CK Sharma
5. Gp Capt VK Gandhi VSM
6. Major DP Singh was also invited by RM for discussion on disability pension issue.

RM made everyone comfortable in the beginning itself that OROP for Armed Forces and Ex-servicemen is NDA Government’s commitment and he has worked out the expenditure for the OROP. He advised that there was no need to cover this issue in budget presented by NDA Government on 28 Feb 15  as it already stands approved by Parliament as part of budget for financial year 14-15. He confirmed that he had discussed the issue with officers of MOD and ironed out all issues of OROP. He also confirmed that OROP is genuine demand of Armed Forces and must be met in full; hence there is no difference in thinking of Armed Forces and MOD. Accordingly file has been prepared and is in process for approval from Ministry of Finance. After approval of the file from Finance Minister, it will be put up for approval of CCPA (Cabinet Committee for Political Affairs). RM has confirmed that MOD has recommended giving OROP for X group and Y group separately. He also confirmed that all ranks including widows have been included in the OROP. He further confirmed that he is attempting to meet the date line for issuance of Government letter (OROP Notification) given by him on 1 Feb 15 meeting with IESM delegation.

There was no doubt left in our minds after such a clear statement by RM and IESM delegation was convinced that OROP is now in safe hands will see the day light soon. General Satbir Singh thanked him and told him that it is first time that the demands of ESM are being given proper consideration and attention. IESM delegation then discussed following issues with RM.

1. Increase in Widow’s pension w.e.f 24 Sep 12; General Satbir Singh informed him that widow’s pension was not increased in 2012 when pension for all ranks was increased as per recommendations of 6 CPC. Widows must be given that increase in pension. RM expressed concerned on this issue and asked the delegation to give him the note for his consideration.
2. Major’s Pension Retired pre 1996; It was brought to RM’s attention that MOD is not paying Lt Col pension to Major rank officers who retired pre 1996 on completion of 21 years of service. Major Thomas of pre 1996 retirement had gone won the case in AFT and had been paid enhanced pension. It should be applicable for all Majors who had retired pre 1996 and had completed 21 years of service. RM asked for a detailed note on the issue for his consideration.
3. Major’s Pension who had retired on completion of 20 yrs but with less than 21 yrs of service; RM was informed that there will be only few hundred Majors who will fall in that category and MOD must consider giving them Lt Col Pension with Major’s grade pay as a special case. RM demanded a paper on this issue also for his consideration.

IESM will be sending the detailed paper on above issues to RM at the earliest.

IESM delegation was encouraged with the response and encouragement given by RM. One can now say that OROP is in safe hands will soon be approved.

Regards

Gp Capt VK Gandhi VSM
Gen Sec IESM
Flat no 801, Tower N5

Narmada Apartments

Pocket D6 

Vasant Kunj

Nelson Mandela Marg
New Delhi. 110070
Mobile   09810541222

Defence budget hike not for OROP, veterans cry foul

CHANDIGARH: A day after Union finance minister Arun Jaitley presented the Budget in the Parliament, defence veterans' hopes for 'achhe din' turned into sheer ache. Hoping for an announcement from the FM on the one rank one pension (OROP) scheme, they were an anguished lot on Sunday as they realized that the increase in defence allocation was just good enough to take care of the inflation factor.
Those who had pinned their hopes on minister of state for information and broadcasting Rajya Vardhan Singh Rathore's tweet on Saturday that Rs 8,300 crore for OROP was included in the Rs 22,000-crore increase in the defence allocation were also disappointed to know that the hike would only defuse the inflation element.
Experts in defence accounts department said the Budget announced 10.95% hike in the defence allocation as compared to the previous year, which would be spent on ration, salaries, allowances and procurement of equipments and weaponry. They claimed that the hike has nothing to do with the implementation of OROP, which requires around Rs 8,000 crore.
Also, in 2014-15 Budget, the increase in allocation was 12.75% more than 2013-14.
"It seems the politicians are doing a 'double speak' to hoodwink the gullible faujis," said defence veterans.
The statement made by the finance minister after the Budget that the issue of OROP is pending as the method of calculating pension is stuck between the armed services and the defence ministry has added to the retired personnel's woes.
Brig K S Kahlon (retd), President of All India Defence Brotherhood (Punjab), said the "entire drama" since Saturday shows that the government has not taken OROP issue seriously and it is making another attempt to delay it. "Pulse of the veterans is that they should unite together again and protest on the roads against the government till the OROP is not implemented," he said.
"I have never seen such ambiguity on an issue even the Prime Minister had promised. If they don't have any funds, they can issue bonds but maintaining silence frustrates and demoralizes the veterans," said Air Marshal Randhir Singh (retd). http://timesofindia.indiatimes.com/ 

The great betrayal on OROP front

During his interview after the Budget speech, the Union finance minister, when asked about the fate of “one rank, one pension” (OROP) for the defence personnel, remarked that modalities were being worked out between the defence services and the Ministry of Defence (MoD). He went on to say that he had given an additional 12.5% to the defence budget, giving the impression that he had done great personnel favour to the defence services. He does not appear to know how far removed are the Indian defence forces from the state-of-the-art weapon systems and how long has it been crying for modernisation.
Surely he would know that this additional amount for the defence budget, as such, has no link with OROP, because pensions for the defence personnel do not flow out of the defence budget. This additional allocation barely covers inflation in the cost of defence equipment. In the remaining Budget, there is no allocation of funds for OROP.
Soldiers at disadvantageThe demand for OROP has been pending for well over two decades. The rationale for this demand has been articulated umpteen times. More than 80% of the soldiers retire between the age of 34 and 36, and the remaining 20% at varying ages, with only 0.2% retiring at 60, when all the central services employees retire. Early retirement and extremely limited avenues for career advancement (promotions) place the defence personnel at great disadvantage vis-à-vis their counterparts in the civil services.
This early retirement places defence personnel at great financial disadvantage and takes its toll on them in way of shortening their lives: of both officers and soldiers, notwithstanding the fact that on retirement, they are physically much fitter in every respect compared with their civilian counterparts. The average life expectancy of the officers is 72.5, of the JCOs is 67, and of the soldiers is 64. These are figures from the Institute of Applied Research and Manpower (IARM). The life expectancy figure for civil servants is 77 years. The Railways, in their study, arrived at a figure of 78.
This issue of the shortening life of soldiers was raised in Parliament and the-then defence minister (the present President and supreme commander of the Indian forces) had stated that it would be examined in detail. Those were his famous words!
Babus flummox defence ministerThe demand for OROP became all the more strident when the civilian counterparts granted to themselves what is called non-functional upgrade (NFU). Simply stated, it implies that that their pay and allowances will have no relation to their job content but only to the length of the service; and that their advancement in career will have no bearing on the availability of higher posts and performance.
Political parties have repeatedly been promising the grant of OROP. Narendra Modi, as prime ministerial candidate of the Bharatiya Janata Party (BJP), during his election rally at Rewari had promised that on coming to power, his party would announce OROP. Later, speaking to the troops in Siachen as Prime Minister, he said he had granted them this benefit.
More recently, the defence minister has been giving all manner of assurances to veterans, assurances which include specific dates when the case would be finalised and forwarded to the Finance Ministry: well before the Budget date.
Now it appears that the MoD has not been able to resolve the modalities for working out the details. Obliviously, the babus in the MoD have flummoxed the defence minister successfully and made him cut a sorry figure before the nation’s veterans.
Today’s soldiers tomorrow’s veteransNeither the PM and nor the DM appears to realise that there exists a very strong bond between the veterans and the serving troops. Today’s soldiers are tomorrow’s veterans, and this betrayal on part of the government cannot go unnoticed by them, and will impact their morale surely.
The government’s general lack of sensitivity to the disadvantages of military service and the consequent disinterest of suitable youth in joining the defence services has led to both fall in standards on one part and a huge shortage in the officer cadre. The nations that do not send the better lot to the defence services will one day suffer the consequences.
Finally, a quote from Phillip Mason, ICS, would be appropriate in the present setting. While commenting on India’s dismal war record, he notes in his book, “A Matter of Honour”, that: “Indian disadvantage lay in the nature of organisations of armies and, in the end, in politics and the kind of governments that had grown up in India.” One may venture to ask, if the state of affairs are any different today?gen_harwant@hotmail.com
(The writer is a former deputy chief of the army staff and an expert on defence matters. The views expressed are personal)
http://www.hindustantimes.com/chandigarh/the-great-betrayal-on-orop 

OROP DO NOT FIND PLACE IN BUDGET, ESM CRIES FOUL

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One Rank, One Pension stuck between Services and Defence Ministry

Finance Minister Arun Jaitley arrives in Parliament to present the annual budget 2015-16 in New Delhi on Saturday. (Source: PTI)

By: Press Trust of India | New Delhi | February 28, 2015 5:01 pm

Reinstating government’s commitment on implementing the ‘One Rank, One Pension’ policy, Finance Minister Arun Jaitley on Saturday said the issue is pending as the method of calculating pension is stuck between the Armed Services and the Defence Ministry.

“I have already in the last Budget said that we are going to implement ‘One Rank, One Pension’. This need not be stated on every occasion. We are completely committed to it,” Jaitley told reporters here when asked about the delay in launching the scheme.
Explaining the reasons behind the delay, the Minister said: “The methodology of calculating the One Rank, One Pension is an issue pending between the Services and the Defence Ministry.” As and when that idea is formulated, not only it should be implemented, it will be implemented, he added.
“You may only notice that I have today, despite the squeeze, increased the allocation for Defence by almost Rs 25,000 crore,” Jaitley said.

Last month, Defence Minister Manohar Parrikar had said that ‘One rank, One pension’ scheme will be rolled out soon.
The scheme, which seeks to ensure that a uniform pension is paid to defence personnel who retire at the same rank with the same length of service, irrespective of their date of retirement, has been a long-standing demand of the over two million ex-servicemen in the country.
http://indianexpress.com/article/india/india-others/OROP 

PAT for Tarun Vijay MP

Tarun Vijay meets Parrikar, demands 'one rank,       one pension' for forces

Feb 26, 2015, 07.56PM IST TNN

NEW DELHI: BJP MP Tarun Vijay, who is also member, parliamentary standing committee on defence and president, Uttarakahnd's Society to Help Armed Retired Personnel met defence minister Manohar Parrikar on Thursday and gave him a memorandum demanding that the long standing issue of 'one rank, one pension' be resolved in favour of the soldiers.
He said that if the government feels a crunch of funds, please take away the privileges given to the MPs and MLAs and give the funds to the forces so that their legitimate and logical demand to get 'one rank, one pension' is met.
He said that soldiers give their best to the nation but they are forced to die early and run from pillar to post after retirement. Tarun Vijay told the minister that soldiers were disappointed by the UPA, they have great hopes from PM Modi and him, as a minister.
Tarun Vijay told media persons that Parrikar was very sympathetic to his demands and fully agreed that the government must act sympathetically to the long standing demands of the forces. He said, "as the defence minister I stand with my soldiers". Their demands will certainly receive sympathetic consideration.
Tarun Vijay also said that there are more than 3000 cases regarding disability pension pending in courts. Soldiers' basic pension was revised in line with 6 CPC recommendation from 24 Sep 2012 (instead of 1-1-2006) but disability pension has not yet been revised notwithstanding various letters written on the subject by various associations. CAT had given clear verdict but legitimate dues are being denied. Broad banding of disability pension has been denied in spite of AFT/ SC orders.

OROP struggle looks nearing end

The Indian Ex-Servicemen’s Movement (IESM) spearheading the veterans’ one rank, one pension (OROP) demand has correctly applied three of the principles of war albeit in a peaceful struggle, namely maintenance of aim and momentum and concentration of force to set themselves on the road to what could be a victory. The timing of their rally in New Delhi pushed all the right buttons forcing the govt to act. It’s now up to politicians to show some decisive will.The rally itself was attended by 10,000 determined veterans and included war widows. Defence minister Manohar Parrikar invited a delegation of the IESM for discussions even as the rally was underway. 

He assured them that the proposal to implement OROP would be despatched to the finance ministry by February 17 (it has been delayed till the 23rd). In the proposal, there would be no dilution of the OROP, which would be as per the definition approved by Parliament. This is welcome news considering all the confusion created by ministers’ ill-considered statements. General Satbir Singh, chairman and members of the IESM, can rightly claim this as a victory.
In addition, the military pension would be treated as a special pension, different from others, because of the hardships innate in a career in the defence services. Another decision communicated to the veterans was that in cases of personnel of the same seniority being promoted at different times, the highest pension of that year of that rank would be granted. Also, OROP equalization will be done annually. Lastly, the OROP would be applicable with effect from April 1, 2014, irrespective of the date the government letter is issued. Now, we await budgetary provisions. This is not the end, however, and veterans need to keep their powder dry. 

http://www.hindustantimes.com/chandigarh/orop