WHAT IS THE DEMAND
FOR 'ONE RANK ONE PENSION' ALL ABOUT?
For several decades, ex-servicemen have been demanding, as a special dispensation to veterans, that no matter when an officer or jawan has retired from service, they should get equal pension. For example, an officer with 25 years of service who retired, say, in 1995 as a Colonel is currently getting pension based on his last salary drawn. While this is revised annually, his pension is pegged to the 1995 Colonel salary.
For several decades, ex-servicemen have been demanding, as a special dispensation to veterans, that no matter when an officer or jawan has retired from service, they should get equal pension. For example, an officer with 25 years of service who retired, say, in 1995 as a Colonel is currently getting pension based on his last salary drawn. While this is revised annually, his pension is pegged to the 1995 Colonel salary.
However, veterans say retired officer should get a pension based on the salary that a Colonel with an equal number of years of service gets today. The rationale being that it is unjust for, say, a Maj Gen who retired 15 years ago to draw today less pension than a Colonel who retired a year ago.
HOW OLD IS THIS ISSUE AND WHY DO VETERANS DEMAND SPECIAL
TREATMENT?
While the matter has been festering for decades, it came out in the open only after the Sixth Pay Commission formally dismissed the OROP demand in 2008. Veterans protested, saying that a parliamentary committee had recommended its implementation in 2004.
While the matter has been festering for decades, it came out in the open only after the Sixth Pay Commission formally dismissed the OROP demand in 2008. Veterans protested, saying that a parliamentary committee had recommended its implementation in 2004.
They argued for special treatment citing the
exceptional nature of their job and the fact that most soldiers are forced to
retire before the age of 42, leaving them unemployable and in a state of
penury.
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WHAT IS THE FINANCIAL IMPLICATION?
The finance ministry's main argument is that the full OROP would prove to be a crushing burden on the economy. But veterans argue that by the government's own calculation the ORP bill would be Rs. 8,600 crore a year, which is not that major an addition to the Rs. 54,500-crore defence pensions expenditure estimated for this financial year.
The finance ministry's main argument is that the full OROP would prove to be a crushing burden on the economy. But veterans argue that by the government's own calculation the ORP bill would be Rs. 8,600 crore a year, which is not that major an addition to the Rs. 54,500-crore defence pensions expenditure estimated for this financial year.
WHAT IS THE IMMEDIATE PROVOCATION FOR MASS PROTESTS?
Unfortunately, the issue has become highly politicised. After almost a decade of continuously turning down the OROP demand, the UPA suddenly changed its stance as the 2014 general elections neared. It accepted the OROP demand after the personal intervention of Rahul Gandhi and assigned an amount of Rs. 500 Crore for OROP.
Unfortunately, the issue has become highly politicised. After almost a decade of continuously turning down the OROP demand, the UPA suddenly changed its stance as the 2014 general elections neared. It accepted the OROP demand after the personal intervention of Rahul Gandhi and assigned an amount of Rs. 500 Crore for OROP.
OROP also became a BJP election plank. After taking
over, Modi too announced that OROP would be implemented. However, even after a
year the issue appears no closer to resolution with the finance ministry taking
a contrary stand on the OROP interpretation. This one year of uncertainty has
led to fresh OROP protests.
WHY IS THE GOVERNMENT
PERCEIVED TO BE BACKING AWAY?
While OROP has been 'accepted' by government, the devil is in the details. The finance ministry has a different way of calculating OROP, saying that it is impossible to match pensions month after month whenever there is an increase in pay. It has suggested a benchmarking at 2011 levels.
Or a pay-band system that would give equal pension to soldiers over a broad, 10-year period. It has also pointed out that the sheer financial burden of pegging up pensions at regular intervals would be staggering and would increase the Fiscal deficit as well.
While OROP has been 'accepted' by government, the devil is in the details. The finance ministry has a different way of calculating OROP, saying that it is impossible to match pensions month after month whenever there is an increase in pay. It has suggested a benchmarking at 2011 levels.
Or a pay-band system that would give equal pension to soldiers over a broad, 10-year period. It has also pointed out that the sheer financial burden of pegging up pensions at regular intervals would be staggering and would increase the Fiscal deficit as well.
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Conclusion: OROP is a necessity as army personnel
is provided 50 per cent as pension of what he drew in his last salary. If the
veteran had retired, say 30 years back, it would obviously be impossible for
him to financially accommodate himself due to the ever-rising inflation. The
retired servicemen are not provided any alternate government job either to
maintain a healthy income. Since the country wants to maintain a young army,
the soldiers are forced to retire at 35 years of age. On the other hand,
civilian officers within the government can extend their duty till the age of
60.It is the moral responsibility of government to sustain comfortable
post-retirement lives for those who risked their lives to guard the nation.
On the other hand,
the veterans also must understand the criticality of the situation the
government is facing and must convey their message in a soft manner considering
the fact that OROP might full fill their wishes but it might also take the
country back as the fiscal deficit will grow and this is not, what they joined
the service for.
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About the Author:
Pranav Nikam is an Electrical and Electronics engineer who is working in a renowned MNC in Chennai. He likes to work out in gym, do photography and play badminton. Through his articles he wants to spread awareness among other defence aspirants.
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