By P Chidambaram |
The other mystery
story running on our screens is One Rank One Pension (OROP).
Actually, there is no mystery. All the facts are recorded
and documented. However, in the race to claim credit (and disown criticism),
the OROP issue is being presented as a big controversy shrouded in mystery.
Get facts right
Let’s get the facts right. The Indian Armed Forces are
voluntary forces. There is no conscription. Men and women join the forces as
jawans or officers for a variety of reasons and, among them, is the security of
a job. While the job is reasonably secure, it is not a job for the entire
working life. According to the report of the Koshiyari Committee, 85% of the
Armed Forces personnel retire by the age of 38 years and another 10% retire by
the age of 46 years. They have to work for a living for many more years, but
there is no guarantee of a post-retirement job.
Retirement at an early age is good and necessary to keep the
forces young and fighting fit. Hence the case for an honourable pension.
There is another reason to make pension an attractive term
of service that has not been noticed adequately: it is to attract new
volunteers. The attrition rates, and the vacancy levels, are alarmingly high
and, if the Armed Forces have to remain voluntary forces, recruitment must
remain robust. The promise of an honourable pension is an important factor in
recruitment.
OROP is an honourable pension. The time to debate the merits
and demerits of OROP is over. It was a decision taken by the UPA government and
reiterated by the NDA government. Both may share credit.
Some more undisputed facts: While presenting the interim
budget for 2014-15 on 17 February, 2014, I had said: “During the tenure of the
UPA governments, changes in the pension rules applicable to the defence
services were notified on three occasions in 2006, 2010 and 2013. As a result,
the gap between pre-2006 retirees and post-2006 retirees has been closed in
four ranks (subject to some anomalies that are being addressed): Havildar, Naib
Subedar, Subedar and Subedar Major….. Government has therefore decided to walk
the last mile and close the gap for all retirees in all ranks. I am happy to
announce that government has accepted the principle of One Rank One Pension for
the defence forces.”
What is OROP?
On 26 February, 2014, the ministry of defence defined OROP
and the following definition was communicated to the chiefs of the three
services: “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.”
It was a four-page, 12-paragraph letter that left no doubt
on what was intended to be done. The conditions, modalities and the manner of
implementation were spelt out in detail. On 22 April, 2014, a Working Group was
constituted with the Controller General of Defence Accounts as the chairperson
with Terms of Reference that included “to work out the detailed financial
implications.” It was specifically stated that “since substantial increase is
anticipated in expenditure on OROP, FA (DS) would thereafter seek additional
funds as per requirement.”
Much is made of the fact that the interim budget provided
only Rs 500 crore. It was, as I had said, an estimate and the money was
provided as “an earnest of the UPA government’s commitment.” Mr Arun Jaitley
reaffirmed the commitment in his Budget Speech on 10 July 2014. And, pray, how
much did he provide? He said, “we propose to set aside a further sum of Rs 1,000
crore to meet this year’s requirement”!
So, why is the government adding ifs and buts? Why is the
government adding unacceptable riders or conditions that will dilute the
“commitment” of two successive governments?
Reject the objections
The sticking points are entirely due to bureaucratic
back-pedalling and the inability of the government to overrule the objections.
The promise must prevail over the objections, even if some of them appear
valid. The promise was to implement OROP from 1 April, 2014, and not 1 July,
2014. The promise was same pension to personnel retiring in the same rank with
the same length of service, and not grant of same pension by looking into the
cause of retirement. The promise was that future enhancements in the rate of
pension will be automatically passed on to the past pensioners, and not that
the adjustment will be made every five years.
OROP is indeed a defined benefit pension and different from
the National Pension System (NPS) which is a contributory pension scheme. A
person who has a short working life in the Armed Services cannot contribute
enough during that period to earn an honourable pension. Hence OROP.
Whatever it takes to implement OROP, the resources must be
found. In 2010-11, the RBI transferred to government a surplus of Rs 15,009
crore. Who thought RBI would transfer Rs 65,896 crore in 2015-16? If there is
will, a way can be found.
Website: pchidambaram.in
1] WOULD THEY LIKE TO STEP DOWN FROM SERVICE FROM 60 YEARS TO 35 YEARS AS IN THE ARMY ,, 35 YEARS
ReplyDelete2] WOULD YOU LIKE TO SHED NFU STATUS ,AS IT IS NOT AVAILABLE TO THE ARMY
3] WOULD LIKE TO SERVE FOR 24X7 AS IN ARMY & ,,, WITHOUT OVERTIME
4[ WOULD YOU LIKE TO FORE GO ALL RAILWAY FREE PASSES & FREEBEES AFTER RETIREMENT
5[ WOULD YOU LIKE TO SERVE IN DIFFICULT AREAS.. LIKE SNOW BOUND,JUNGLES,DESERTS EXTRA WITHOUT LIGHT & HOUSE ALTHOUGH MSP WILL BE PAID TO YOU AS PER ARMY SCALE.
6[ WOULD YOU LIKE TO WORK UNDER ENEMY FIRE OF THREAT 24X7
7[ YOUR ONE DAY STRIKE COST TO GOVT IS 25000 CRORES , SO GOVT SHOULD RECOVER THIS LOSS AS FORCES CANNOT GO ON STRIKE SO SHOULD BE,. MOREOVER YOUR ABSENCE SHOULD BE RECORDED IN DOCUMENTS SO THAT YOU FORE GO PENSION
8] Govt has infused 500000 crores to off set NPA of banks , Result of non performer babus & bankers, that does not pinch to you but pension of old warriors & widow pinches to you . WE ARE PUNISHED FOR LOSS,, WOULD YOU LIKE IN SUCH CASES BANKERS &BABUS SHOULD ALSO BE PUNISHED
9] THEIR WILL BE NO AID TO CIVIL POWER .. PAY FOR YOUR DEEDS & FAILURES. ARMY DOES NOT ASK FOR SUCH AIDS
10] ] LET ALL OF US ACCEPT 1973 STATUS.. 70 % PENSION TO FORCES & 30 % FOR CIV
11] INITIALLY PRINCES & CHILDREN FROM ELITE FAMILIES USE TO COME TO ARMY , SO ELITE MUST BE FORCED TO JOIN AGAIN TO HAVE BETTER QUALITY
12] SHED HOLIDAYS OF SATURDAY & SUNDAY -104 DAYS LOSS TO NATION .WORK LIKE ARMY 24X7
13[NO HOME POSTINGS AS THEIR OUTPUT DECREASES. HOME WORRIES
COL LAMBA[ ONE MAN ARMY]
Modi is being clever by half. He must be made to pay for it. But why are people fasting etc? You think the Indian citizen will EVER support you? NO. Just fight Modi directly.
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