Irresponsible Chain Mails on pensions of Jawans and JCOs

By: Major Navdeep Singh

Though the instant post was not ideally required, but I feel compelled to throw light on a subject, which, since the last few days has led to a massive disinformation campaign fuelled by irresponsible chain-mails regarding pensionary benefits of ranks other than Commissioned Officers.

As was brought out in the last post on this blog, the Government has issued the sanction order implementing the Supreme Court decision on removal of a pensionary anomaly with effect from 01 Jan 2006, that is, the date of implementation of the 6^th Central Pay Commission (6^th CPC) recommendations. There have been mails floating around and queries raised that the benefit as granted to Commissioned Officers and Civilians on 24 Sept 2012 has now been applied from 01 Jan 2006 but similar benefit has not been extended to ranks other than Commissioned Officers. Some mails have been nauseatingly abusive towards the Government and some have raised needless irresponsible conspiracy theories.

Let me attempt to clarify this issue for the benefit of readers.

When the 6^th CPC recommendations were implemented, the pensions of pre-2006 retirees were fixed at 50% of the minimum of the applicable pay band with effect from 01 Jan 2006 rather than the pay within the pay band for each rank according to fitment tables. This was implemented for all Central Govt pensioners, irrespective of rank or service. This was objected to by pensioners and led to massive litigation since as per pensioners, the pensions were to be based on minimum of pay within the pay band for each rank/grade and not the minimum of the pay band itself.

While this controversy was simmering, the Government introduced a new system of pension calculation for ranks other than Commissioned Officers wherein they scrapped the system of minimum of the pay band but initiated a system of calculation by taking the maximum of the 5^th CPC scales fitted notionally into the new 6^th CPC pay bands and alongwith enhanced weightages. This new system came into force on 01 July 2009. The weightages were further enhanced with effect from 24 Sept 2012. Hence, the controversy of minimum of pay band vis-a-vis minimum of pay for each rank/grade within the pay band became redundant for ranks other than Commissioned Officers with effect from 01 July 2009 but the said anomaly continued to hold field for Commissioned Officers and Civilians. Ranks other than Commissioned Officers who were now fixed on notional top of the 5^th CPC scales w.e.f 01 June 2009 were however hit by the minimum of pay band vis-a-vis minimum of pay within the pay band anomaly from 01 Jan 2006 till 30 June 2009.

On the other hand, in the case of Commissioned Officers and Civilian retirees, the pension continued to be based on minimum of pay of the pay band itself and later the Government itself rectified the anomaly with effect from 24 Sept 2012 and provided that from Sept 2012 onwards the pension would be based on minimum of pay for each rank/grade within the pay band. The letter was issued in Jan 2013 with retrospective effect from Sept 2012. Various Tribunals and more importantly the Delhi High Court however ruled that the removal of the anomaly would have to be effectuated from 01 Jan 2006 rather than the future artificial cut-off date of 24 Sept 2012, and the said decision was ultimately affirmed by the Supreme Court.

In implementation of the decision of the Delhi High Court affirmed by the Supreme Court, the Government has issued the implementation instructions under question. For ranks other than Commissioned Officers, the instructions would apply from 01 Jan 2006 till 30 June 2009 since from 01 July 2009 onwards the anomaly stood removed and rendered redundant since all such personnel were as it is fixed on notional top of scales. For Commissioned Officers and Civilian pensioners, the instructions would apply from 01 Jan 2006 till 23 Sept 2012 since the anomaly was only removed on 23 Sept 2012.

Those who are cursing the Government and Commissioned Officers and Civilian pensioners must realize the contours of the controversy before jumping the gun based on half-baked information. It is for the information of all, that pre-2006 retiree ranks other than Commissioned Officers are granted pensions based on notional maximum while Commissioned Officers and Civilians are granted pensions based on notional minimum within the pay band. The Government letter rather protects the enhanced pensions of Jawans and JCOs from 01 July 2009/24 Sept 2012 and this should have brought joy to such pensioners, even if the arrears are not that massive, rather than disaffection.

Please do not go by chain-mails being circulated based on half baked information of self styled experts since reliance on such information leads to needless frustration based on non-existent controversies.

Thank You.

OROP Rolled Out, But Veterans Want More

Fulfilling one of its major election promises in the run up to the Lok Sabha elections of the BJP, Defence Minister Manohar Parrikar on Saturday announced the implementation of the long delayed One Rank One Pension (OROP) for ex-servicemen.

The avowed aim of this announcement, to end the strike by veterans demanding OROP was however hanging in fire with protesting veterans rejecting the “unilateral” announcement as it “dilutes” several core issues from the accepted definition. In an effort to get the veterans on board, Mr. Parrikar met representatives of ex-servicemen later in the day and some understanding has been reached.

“Despite the huge fiscal burden, given its commitment to the welfare of ex-servicemen, the government has taken a decision to implement the OROP,” Mr. Parrikar while announcing the plan, and said the ministry of defence would soon issue a detailed government order.

Government's Offer	What veterans want
Effective from July 1, 2014	April 1, 2014
OROP will be average of minimum and maximum pension scale in 2013	Base for pension should be maximum of the pension scale in 2013
Revision every 5 years	One or two years
One-member judicial commission to submit report in six months	Five-member team under Defense Minister to submit report in one month

Mr. Parrikar said 2013 would be taken as the base year for calculation and it would be implemented from July 1, 2014 the earliest date after the government assumed office. Equalisation of pensions would be done every five years as against the usual practice of once a decade. As per definition OROP implies uniform pension be paid to the armed forces personnel retiring in the same rank and length of service regardless of their date of retirement.

“Under this definition, it has been decided that the gap between rate of pension of current pensioners and past pensioners will be bridged every five years,” Mr. Parrikar said. This has been the key issue of disagreement between the government and the veterans who wanted annual revision in line with the definition. Arrears would be paid in half-yearly instalments, however, all widows would be paid in one instalment.

Another hitch

While OROP would be applicable for the disabled and war widows, those opting for voluntary retirement and not complementing full service will be out of its ambit. This has raised a new point of disagreement between the veterans and the government. Mr. Parrikar said the government would give details on the voluntary retirement in the government order. Asked if the decision would be acceptable to the veterans, Mr. Parrikar said, “I want the veterans on board on all issues”.

After meeting Mr. Parrikar, Major Gen Singh expressed satisfaction on the explanation by the government on the issue of VRS. “Premature retirement is the one point we wanted to discuss. Defence Minister confirmed that Army doesn’t have VRS,”he said. On future course of action he said they would take a decision on the agitation after “discussing with the core group”.

Veterans react

Responding to the statement, ex-servicemen while thanking the government for implementing the scheme rejected the modalities. They have been demanding an annual revision and implementation from April 1, 2014. “The government has taken a decision, this is what we can give,” added Minister of State for Defence, Rao Inderjit Singh.

To address complexities and sort out inter-services issues the government will appoint a one member judicial commission which will give its report within six months. The veterans in turn demanded a five member directly under the Defence Minister and the report submitted within one month.

Given details on the cost of OROP to the exchequer, Mr. Parrikar stated that it would cost between Rs. 8,000-10,000 crore at present which would increase in future. The expenditure on arrears alone would be Rs. 12,000 crore. Currently the pension bill of the defence ministry stands at Rs. 54,000 crore.

There are about 2.45 million veterans and six lakh war widows who stand to benefit from the scheme.

All about OROP:

1	Defence Minister Manohar Parrikar announced thedecision to implement the One Rank One Pension, w.e.f July 1, 2014.
2	OROP arrears to be paid in four half-yearly instalments; all widows, including war widows, to be paid arrears in one instalment.
3	The ex-servicemen, who have been agitating for the last 82 days, said they will not accept review of the pension after every five years.
4	It is understood that a draft proposal on OROP was circulated at a RSS meeting on Friday, which envisaged commencement of the scheme from July 2014, besides revision of pension every five years.
5	Veterans have opposed to excluding ex-servicemen, who had opted for pre-mature retirement, from the ambit of OROP.
6	Defence Minister Manohar Parrikar announced the setting up of a One member Judicial Committee, which will give its report on OROP in six months.
7	Veterans have rejected this committee, and instead demanded a committee under the Defence Minister which will include an ex-serviceman too.
8	To begin with, OROP would be fixed on the basis of calender year 2013.
9	Officials said the annual burden on the pension bill will be about Rs. 8,000 crore which would progressively go up with revision in pensions. The current pension bill of the defence ministry stands at Rs. 54,000 crore.
10	Close to 22 lakh retired servicemen and over six lakh war widows stand to be the immediate beneficiaries of the scheme.

 Source: The Hindu