OROP IMPLEMENTATION LETTER

                                             

Concerns regarding Implementation of OROP

 Persistence of Existing Anomalies  

OROP by itself will not solve or set at rest all the pending issues which need to be first sorted out before formulating the modalities of implementing OROP. Otherwise, the existing anomalies and inconsistencies would not only persist but also be carried forwarded and incorporated in OROP, thus vitiating the proper adoption of OROP in true spirit.”

 Application of OROP.

(a) The concept of OROP needs to be well defined and properly understood. Simply stated, OROP means that a person who retired prior to 01-01-2006 should get the same pension as a person of the same rank retiring after 01-01-2006 based on common parameters for fixing the pension. In the application of VI CPC, different parameters were used for pre and post 2006 retirees. The pension for all pre 2006 retirees was based on the minimum of the pay in the scale for the rank (as corrected by the Govt letter of 17-01-20013). For post 2006 retirees the basis was the last pay drawn which would be different for different individuals depending on the length of service in the last rank held. “

 “(b) If the post 2006 set of parameters were to be applied to pre 2006 retirees, complete data on the total length of service and service in the last rank held need to be collected and the pension re-fixed for each individual. This would be a laborious and time consuming process besides data being unavailable particularly in the case of pre 1986/1996 retirees. If the pre-2006 parameters were to be adopted for all, the benefit, if any, of length of service in the last rank held presently enjoyed by post 2006 retirees would be lost.”

“(c) At least three different sets of common parameters have been suggested. One such suggestion is to adopt the maximum pay in the pay scale for the rank as the basis of fixing the pension with a provision for pro rata deductions for shortages, if any, in the minimum qualifying service. This is the most acceptable, practical, easily implementable and least cumbersome and time consuming solution which will satisfy all categories of veterans. It may be mentioned that most, if not all, veterans would have become entitled to pay at the top end or at least beyond the mid-point of the scale for the rank while in service. The extra benefit that may accrue to a very small number of veterans who may not have drawn any increment in the pay scale while in service should not be grudged.”

 VII CPC.

The constitution of VII CPC without any meaningful representation in it from the services has been announced. If the pending issues flowing from the anomalies and inconsistencies relating to IV, V And VI CPC s are not resolved urgently and OROP is also implemented as envisaged with effect from April this year, VII CPC may start functioning under the burden of incomplete, carried over and inconsistent terms of reference resulting in a spate of fresh anomalies in its final report.”

Action Required

 Clear and unambiguous instructions should be issued on the implementation of the decision on OROP. Points mentioned above should be kept in view while doing so.”

Courtesy-: AVM(Retd) S Krishnaswamy

CONTEMPT PETITION ADJOURNED AGAIN

The contempt petition No.158/2012 filed by pre-2006 pensioners for the Non-implementation of CAT PB judgement  in OA 655/2010 even after the dismissal  of appeals for  the same by Delhi High Court & Supreme Court.The arguments of both the counsels were heard today on 26/03/2014 but could not be concluded. Hence  the case was adjourned to 03/04/2014 for further hearing.

CONTEMPT PETITION IN CAT PB AGAIN ADJOURNED

THE PRE-2006 PENSIONERS CONTEMPT PETITION IN CAT PB WAS HEARD ON 05/03/2014 BY THE FULL BENCH. THE CASE WAS ADJOURNED TO 26/03/2014 SINCE THE UOI WANT TO FILE COUNTER AFFIDAVIT

TERMS OF REFERENCE OF 7th PAY PANEL

The Union Cabinet gave its approval to the Terms of Reference of 7^th Central Pay Commission (CPC) as follows:

a)To examine, review, evolve and recommend changes that are desirable and feasible regarding the principles that should govern the emoluments structure including pay, allowances and other facilities/benefits, in cash or kind, having regard to rationalization and simplification therein as well as the specialized needs of various Departments, agencies and services, in respect of the following categories of employees:

i.Central Government employees industrial and non

industrial;

ii.Personnel belonging to the All India Services;

iii.Personnel of the Union Territories;

iv.Officers and employees of the Indian Audit and Accounts

Department;

v.Members of regulatory bodies (excluding the Reserve Bank of India) set up under Acts of Parliament; and

vi.Officers and employees of the Supreme Court.

b)To examine, review, evolve and recommend changes that are desirable and feasible  regarding principles that should govern the emoluments structure, concessions and facilities/benefits, in cash or kind, as well as retirement benefits of personnel belonging to the defence Forces, having regard to historical and traditional parities, with due emphasis on aspects unique to these personnel.

c)To work out the framework for an emoluments structure linked with the need to attract the most suitable talent to Government service, promote efficiency, accountability and responsibility in the work culture, and foster excellence in the public governance system to respond to complex challenges of modern administration and rapid political, social, economic and technological changes, with due regard to expectations of stakeholders, and to recommend appropriate training and capacity building through a competency based framework.

d)To examine the existing schemes of payment of bonus, keeping in view, among other things, its bearing upon performance and productivity and make recommendations on the general principles, financial parameters and conditions for an appropriate incentive scheme to reward excellence in productivity, performance  and integrity.

e)To review the variety of existing allowances presently available to employees in addition to pay and suggest their rationalization and simplification, with a view to ensuring that the pay structure is so designed as to take these into account.

f)To examine the principles which should govern the structure of pension and other retirement benefits, including revision of pension in the case of employees who have retired prior to the date of effect of these recommendations, keeping in view that retirement benefits of all Central Government employees appointed on and after 01.01.2004 are covered by the New Pension Scheme (NPS).

g)To make recommendations on the above, keeping in view:

i.the economic conditions in the country and need for fiscal prudence;

ii.the need to ensure that adequate resources are available for developmental expenditures and welfare measures;

iii.the likely impact of the recommendations on the finances of the State Governments, which usually adopt the recommendations with some modifications;

iv.the prevailing emolument structure and retirement benefits available to employees of Central Public Sector Undertakings; and

v.the best global practices and their adaptability and relevance in Indian conditions.

h)To recommend the date of effect of its recommendations on all the above.The Commission will make its recommendations within 18 months of the date of its constitution.It may consider, if necessary, sending interim reports on any of the matters as and when the recommendations are finalised.The decision will result in the benefit of improved pay and allowances as well as rationalization of the pay structure in case of Central Government employees and other employees included in the scope of the7th Central Pay Commission.

Background

Central Pay Commissions are periodically constituted to go into various issues of emoluments’ structure, retirement benefits and other service conditions of Central Government employees and to make recommendations on the changes required.

Government committed to provide required fund to implement OROP: Antony

New DelhiFebruary 27, 2014
Defence Minister AK Antony has assured the Services that the Government was fully committed to implement the One Rank, One Pay (OROP) policy and that required funds will be made available to ensure its implementation.
Chairing a meeting of the top brass of the Services and senior officials of MoD, here, last evening, Antony said the Finance Minister had clarified that the figure of Rs 500 crores made available to implement the scheme was only 'indicative'.
The meeting was convened by Antony to discuss the modalities for implementation of OROP. It was attended among others by the Minister of State for Defence Jitendra Singh, Defence Secretary RK Mathur, Secretary Ex- Servicemen's Welfare Sangita Gairola, Secretary Defence Finance Arunava Dutt, the three Service Vice Chiefs and AG from the Services Headquarters.
It was noted that, "OROP implies that uniform pension be paid to the Armed Forces personnel retiring in the same rank with the same length of service irrespective of their date of retirement and any future enhancement in the rates of pension to be automatically passed on to the past pensioners.
This implies bridging the gap between the rate of pension of the current pensioners and the past pensioners, and also future enhancements in the rate of pension to be automatically passed on to the past pensioners."
Antony directed that the Controller General of Defence Accounts should initiate immediate necessary steps in consultation with the three Services, MoD Finance and Department of ESW to give effect to the decision.
He also emphasized that family pensioners and disability pensioners would be included. Ex-Servicemen may also be appropriately consulted by the Services, Antony said.
It may be recalled that improvements in the pension for Defence Services have been effected by the Government on three occasions in recent times - in 2006, 2010 and 2013.
As a result of these changes, the gap in pension amount between pre-2006 and post-2006 retirees has been bridged substantially. However, keeping in view the long- standing demand, the Government has accepted the principle of OROP for Defence Services.

SOURCE;-CLICK LINK BELOW
http://www.business-standard.com 

EX-SERVICEMEN DIVIDED IN THE NAME OF OROP

NDTV's Barkha Dutt speaks to Finance Minister P Chidambaram. Here's the full transcript of the interview:

NDTV: Let's then focus to what's our 9th budget. There are those who would say that in this Interim Budget, it couldn't be too much of an event but the one, but the one pattern that could be spotted was that you were trying to woo a constituency that was not being typically being wooed by the Congress, the military constituency, the ex-servicemen with One Rank One Pension, the urban Indian. Usually the Congress is quoted in rural India. Let's start with One Rank One Pension. It was typically something that was pending for at least 5 years. Has it now been pushed through because Rahul Gandhi said it should be so?

P Chidambaram: These are such predictable questions

NDTV: Because there seems to be a script. He meets the servicemen last week and then he announces the 500 crore sop

P Chidambaram: Please remember that the One Rank One Pension has been corrected three times by the UPA government

NDTV: But partially implemented not to the satisfaction of the community.

P Chidambaram: That's not correct. I have the facts and you and your viewers should know the facts. We corrected it in 2006, we corrected it again in 2010, we corrected it again in 2013 and we closed the gap for 4 ranks, so what is left is 2 Other Ranks, OR, and 2 other ranks and the officers category. That is what is left out. And therefore we've got the last rank in this journey of correction, we have walked a substantial distance since 2006 and we walked the last mile and we said let's close the gap completely. So this is a process. That process which the Vice President of the Party met with ex-servicemen at some point and said I'll take up your cause. Well I congratulate him for that. The point is these are discussions that have been going on for quite some time within the government, within the Finance Ministry or Defence Ministry before I drafted my speech, I started writing it a several days before.

NDTV: Well before Mr Gandhi met with ex-servicemen?

P Chidambaram: Drafting started much before that, but the process is going on since 2006. But consultations within the Party, within the government, I can share with you, have been going on for at least a month now.

NDTV: There are military personnel who have raised concerns that 500 crores are not enough and that the Defence Ministry estimated 1300 cores, now it is 1700 crores. Will this be implemented? Now it is up to the next government.

P Chidambaram: In fact I gave this news, the first estimate was about 1300 crores, the second estimate was based on earlier calculations, 1700 crores. The final estimate is 500 crores, the number is not relevant

NDTV: And you believe that number is sufficient to be implemented for years?

P Chidambaram: The number is not relevant. I have made it absolutely clear in my post budget discussion. This number I've taken because the MoD has given me this number. But whatever it requires will be given next year. As an earnest, I have given the 500 crores due next year, even this year. I'm transferring the 500 crores this year. I'm not passing on the burden. In fact I'm relieving the burden in the next fiscal year.

 

 SOURCE: CLICK LINK BELOW

http://www.ndtv.com

DA MERGER LIKELY SOON

NEW DELHI: The government may increase and merge dearness allowance (DA) with basic pay with the Union Cabinet expected to include the proposal as part of the terms of reference of the 7th pay commission.
The move will facilitate announcement of interim relief to more than 50 lakh government employees and 30 lakh pensioners by the newly-constituted pay commission before the code of conduct for the Lok Sabha polls come into force.
Central government employees unions have been demanding that besides raising DA to 100%, the government should revise the pay and merge DA with basic pay, considering market inflation and price hike of essential commodities.
As per practice, DA is merged with basic pay when it breaches the 50% mark. DA merger helps employees as their other allowances are paid as a proportion of basic pay.
An official said if merger of 50% DA with basic pay was decided, it could lead to hike in salary by around 30-35%. He added that there were instances of announcing interim relief to employees apart from DA by a newly constituted pay commission prior to their implementation.
Merger of 50% DA with basic pay was done in the 5th pay commission, but the 6th commission did not recommended it.
The Centre is expected to announce next month a hike in dearness allowance by 10% which would make it 100% of basic pay. It will be the second double digit DA hike in a row as the government had announced a hike of 10% in September last year, effective from July 1, 2013.
An official said hike in DA will not be less than 10% and would be effective from January 1 this year. http://timesofindia.indiatimes.com/ 

CONTEMPT PETITION IN CAT PB ARGUMENT CONTINUES

The contempt petition came up  before the principal bench of CAT PB today on 
19/02/2014. Both sides pleaded their views.
The court asked both parties to give their pleas in writing.The case is posted to 05/03/2014 for further hearing.