Oped for Times of India | No need to vilify OROP or disability pensions: Problem of burgeoning military pension bill has practical solution

 

Burgeoning Military Pension Bill- the need for practical solutions

There is a need for ingenious solutions rather than vilification of concepts like OROP or Disability Pension

Major Navdeep Singh

Defence spending is again in news, and with it the common censure of the allocation being consumed mostly by pay and pensions. While we may choose to weigh in with emotional calls of soldierly pride and sacrifice et al, dispassionately seen the hazard the pay and pension bill poses is not easy to ignore. But then the solution does not lie in a maladroit approach of demonising concepts such as ‘One Rank One Pension’ (OROP) or disability benefits.

The heavy bill and its ascension with every pay commission is indeed a cause of worry. Though the defence services have been trying to shed some of their manpower, it is unlikely that this modest curtailment would result in significant savings.

So what is the solution?

The straight response would be to drastically expand the concept of Short Service Commission (SSC), making it more attractive and less exploitative, and also introduce a Short Service Engagement scheme at jawan level with contributory pension, while concomitantly reducing the permanent staff under the existing defined pension (OROP) system. This arrangement can result in maintenance of military strength at the current levels but greatly reduce the pension bill.

Currently, officers are being offered SSC of 10 to 14 years after which they are compulsorily released without any pension, except those who opt (and are selected) for permanent commission. Previously, officers were allowed to exit after 5 years. Needless to state, the current structure leaves them at crossroads without pension or guaranteed employment almost in middle age with peak family commitments. The way out of the quagmire is simple. Such SSC officers must be made members of a contributory pension scheme under the National Pension System (NPS) as is now applicable to civilian employees. Officers under the Short Service Appointment scheme of Indian Coast Guard are already members of NPS, denying the same to their military counterparts is anyway incongruous. There is also a requirement to protect their status or seniority if they opt for civil government employment after release. Similarly, there is a need to introduce a Short Service Engagement scheme for recruitment at lower ranks- individuals who will serve for 10 years and then released with NPS benefits and “ex-serviceman status”. Obviously, these Short Service schemes would be voluntary and concurrent to regular entries which shall continue to be on OROP dispensation. However, gradually the number of the former may be amplified and the latter reduced.

The establishment would have to find ingenious, albeit practical and non-exploitative ways, to reduce the bill, and demonising OROP or disability pensions is not one of them. OROP is mandated by the Cabinet and was promised by successive governments to cater to the massively curtailed tenure of defence personnel who start retiring in their 30s. There is no going back on it. The way out is to reduce future OROP beneficiaries by rationalising permanent staff.

Similarly, the recent furore over disability pensions was unpleasant. Frequent transfers, regimented lifestyle, curtailment of freedoms and inability to cater to domestic commitments result in aggravation of common medical conditions in soldiers, a reality all militaries face globally. Finding ways to reduce disability benefits is a cloddish approach which will not curtail the incidence of disability. Rather, the attempt should be to introduce policies to reduce stress & strain, provide comfort and succour to soldiers to reduce the prevalence of disability and consequently disability benefits. It would be imprudent and indeed irrationally unique for us as a nation to attempt to vilify military disabilities to save pennies rather than making lives of soldiers better.

Lateral induction of soldiers to other organisations such as Central Armed Police Forces (CAPFs) has also been propagated by successive pay commissions but opposed by the Ministry of Home Affairs (MHA). Perhaps the reason might be valid to an extent. CAPFs would not want military veterans parachuting into their ranks and blocking their career progression. But then there could be a solution by simply raising a separate organisation of military veterans under the MHA and employ them for duties configuring with their past expertise or utilize them for national reconstruction roles or executing government schemes.

The military pension bill is not an unruly monster, however what is required to tame it is a balanced but determined and humane political executive, and it seems the current Raksha Mantri might just fit that description.

The author is a high court lawyer and writes on law, military and public policy.

Cabinet approves 5% additional DA/DR due July, 2019

09 Oct, 2019

The Union Cabinet Chaired by Prime Minister Narendra Modi today approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2019 representing an increase of 5% over the existing rate of 12% of the Basic pay/Pension, to compensate for price rise. This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.

The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs. 15909.35 crore per annum and Rs. 10606.20 crore in the financial year 2019-20 (for a period of 08 months from July, 2019 to February, 2020). This will benefit about 49.93 lakh Central Government employees and 65.26 lakh pensioners.

The additional financial implication on account of this increase in Dearness Allowance is estimated at Rs 8590.20 Crore per year; and Rs 5726.80 Crore in the current Financial Year of 2019-20 (for 8 months from July 2019 to February 2020).

The additional financial implication on account of the Dearness Relief to pensioners is estimated to be Rs 7319.15 Crore per annum and Rs 4870 Crore in the current FY.

Dear Allowance/Dearness Relief is paid to Central Government employees/pensioners to adjust the cost of living and to protect their basic pay/pension from erosion in the real value. Dear Allowance/Dearness Relief is revised twice a year from 1st January and 1st July.

Battle Casualities Welfare Fund - Enhancement by Four times of Ex-Gratia to War Widows

The Hon’ble Raksha Mantri enhancing the ex-gratia to a war widow four fold from the Battle Casualities Welfare Fund when Govt of India does not contribute even a paisa to it. The Indian public donates to the Battle Causualities Welfare Fund as a mark of gratitude to the soldiers who made supreme sacrifice in line of duty. The Corporates who donates get 100% IT relief and they are expected to expend 2% of their profits as part of their Corporate Social Responsibilities. The fund is administered by Min of Def. The Indian public is emotionally driven creature. They do not know War widows today get anything between Rs 80 lakhs to Rs 1.25 crores on martyrdom of husbands. They get liberalized family pension which is equal to the last drawn emoluments of her husband. She and her dependents get free bees right from rail travel, free education for her children, free health care to many other benefits. She also gets ex-gratia from State Government, 300 sq yd of house site and a government job (like in Andhra Pradesh and Telangana).

2.      What does a widow of an Ex-Serviceman who unfortunately dies within two or three years of his discharge from Armed Forces? She gets 50% of last drawn emoluments as her Enhanced Rate of Ordinary Family pension (against 100% of a war widow) for just 10 years and then it comes down to 30% of last drawn emoluments. She is still in her early 30s with responsibility of bringing up her children. She does not get a job. Her pension is not adequate to bring up her children and give decent standard of living to her kids. I have seen how such young widows suffer.

3.      This is not to show that war widows should not be given more financial assistance. After all, her husband has made ultimate sacrifice in the line of duty. But Governments both at Centre and State do nothing to alleviate suffering of poor & young widows whose husbands died just within two or three years of discharge. She does not get a job because she is widow of an Ex-Serviceman. I have seen many such young & poor widows struggling to make both ends meet. She is thrown out of her home by her in-laws the moment her husband dies.  Smt Zalengkim of Imphal whom TSEWA helped to clear her debts of Rs 5.39 lakhs she owed to greedy money lenders is one such pathetic case when her husband died within 5 months of his discharge.

4.      War widows easily gets anything between Rs 80,000 to Rs 1 lakh per month if she invests her money even public sector banks. What does a widow of an Ex-Serviceman get? The Indian public does not know these details as they do meet such widows.

Indian Railways has today made the reservation charts for all trains public On Web Site

Indian Railways has today made the reservation charts for all trains public on the IRCTC website.

Indian Railways passengers, take note! You don’t need to run behind the TTE for vacant berths on Indian Railways trains. 

The national transporter has now made the IRCTC train reservation charts public! 

In a big step aimed at ensuring greater transparency and eliminating on ground corruption, Piyush Goyal-led Indian Railways has today made the reservation charts for all trains public on the IRCTC website irctc.co.in. 

Indian Railways says that the new step will help prospective passengers get information of any vacant berths that are available in the train after chart preparation. 

The information will be made available after preparation of the first chart around 4 hours before the departure of the train and the second chart will be available around 30 minutes before the train leaves the originating station. 

The second chart will accommodate changes based on current reservations and any cancellations made after the first chart.

The new feature will be available on both the web and mobile version of the IRCTC e-ticket booking platform. 

Based on the information of seat availability, passengers will be able to approach the TTE on board for ticket booking as well, says Indian Railways. 

The new interface gives graphical representation of the train coaches along with berth-wise accommodation status on the irctc.co.in website. 

The layout of 9 classes of coaches will be displayed.

The most important takeaway for passengers is that TTEs will not be able to deny berths on ad-hoc basis. 

Additionally, passengers will have the facility to view the exact position of the berth allocated to a PNR in the graphical coach layout during PNR enquiry. 

Here is how you can check reservation charts on IRCTC website:

1. On the IRCTC website, a new option of view “Charts/Vacancy” is being made available.

2. The train journey details such as train number, journey date and boarding station will be required as an input from the user and after that the class-wise and coach-wise number of vacant berths can be seen.

3. The user can also click on a specific coach to see the layout along with berth-wise accommodation status such as; occupied for full journey, occupied for part journey and vacant for full journey.

4. The position of berth allocated to a PNR in the coach layout can be seen in PNR Enquiry & book ticket history.

....

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Government Zeroes In On Single Exam, NEET, For MBBS Admission

Admission to MBBS courses in medical colleges across the country including JIPMER and all the AIIMS will be through the common national entrance test NEET from 2020.

Updated : October 05, 2019 16:46 IST

NEET 2020: No AIIMS MBBS or JIPMER MBBS, only one national medical entrance test from 2020.

New Delhi: 

From 2020 academic year, medical admission aspirants will have to sit for a single entrance examination for getting a seat in medical colleges across India. Union Health Minister Dr. Harsh Vardhan announced today the NEET or National Eligibility cum Entrance Test, which replaced the All India Pre Medical Test (AIPMT) in 2013, will come to force as the only entrance test for medical admission from next academic year. Till 2019-20 academic year, there were two other entrance examinations which were held nationally, AIIMS MBBS entrance test and JIPMER MBBS entrance test. The announcement comes after the enactment of National Medical Commission Act.

With the country is going to have single entrance test for all the undergraduate MBBS admissions, students will also have the benefit of a single counselling window for all the all India admission, which is expected to be under the new National Medical Commission as espoused in the new act.

Apart from this, counselling for all the seats which come under various states' quota will be managed by the state-level counselling committees.

Currently, admissions to all medical colleges except All India Institute of Medical Science (AIIMS) and JIPMER (Jawaharlal Institute of Post-Graduate Medical Education and Research) are done through the NEET.

NEET 2020: From next academic year onwards, AIIMS MBBS entrance test will cease to exist.

While, currently, though the AIIMS MBBS, the admission process is done for more than 10 AIIMSs across India, JIPMER AIIMS counselling is done for the seats available the campuses of Puducherry-based medical institute.

"The common national entrance test -- NEET -- applicable to institutes of national importance like AIIMS and JIPMER and common counselling for MBBS, as per the National Medical Commission Act, will come into force from the next academic year (2020).

"This will help set common standards in medical education sector in the country," Dr. Vardhan said.

Last year, more than 15 candidates had registered for the NEET while about 2 lakh appeared for the AIIMS MBBS. Over 1.4 lakh students appeare for JIPMER MBBS in 2019.

NEET 2020: From next academic year onwards, JIPMER MBBS entrance test will cease to exist 

This year, the online application process for NEET will begin on December 2, 2019 and conclude on December 31, 2019. The National Testing Agency or NTA, the government examination conducting body came to form in 2017, will be conducting the NEET test.

The downloading of admit cards for NEET 2020 will begin on March 27, 2020. The NEET exam is scheduled on May 3, 2020. The result for NEET UG will be released on June 4 next year.

The National Medical Commission Act, 2019 provides for common national entrance test - NEET - along with common counselling for MBBS, and a common final year MBBS exam which will be applicable to all institutes including those of national importance like AIIMS.

According to the NMC Act, the NEXT results would be the base for admission to PG courses and to obtain licence to practice. It would also act as a screening test for foreign medical graduates.

Click here for more Education News 
 

No need to vilify OROP or disability pensions: Problem of burgeoning military pension bill has practical solution

Defence spending is again in the news, and with it the common censure of the allocation being consumed mostly by pay and pensions. While we may choose to weigh in with emotional calls of soldierly pride and sacrifice et al, dispassionately seen the hazard the pay and pension bill poses is not easy to ignore. But then the solution does not lie in a maladroit approach of demonising concepts such as ‘One Rank One Pension’ (OROP) or disability benefits.

The heavy bill and its ascension with every pay commission is indeed a cause of worry. Though the defence services have been trying to shed some of their manpower, it is unlikely that this modest curtailment would result in significant savings. So what is the solution?

The straight response would be to drastically expand the concept of Short Service Commission (SSC), making it more attractive and less exploitative, and also introduce a Short Service Engagement scheme at jawan level with contributory pension, while concomitantly reducing the permanent staff under the existing defined pension (OROP) system. This arrangement can result in maintenance of military strength at the current levels but greatly reduce the pension bill.

Currently, officers are being offered SSC of 10 to 14 years after which they are compulsorily released without any pension, except those who opt (and are selected) for permanent commission. Previously, officers were allowed to exit after 5 years. Needless to say, the current structure leaves them at a crossroads without pension or guaranteed employment almost in middle age, with peak family commitments.

The way out of the quagmire is simple. Such SSC officers must be made members of a contributory pension scheme under the National Pension System (NPS) as is now applicable to civilian employees. Officers under the Short Service Appointment scheme of Indian Coast Guard are already members of NPS, denying the same to their military counterparts is anyway incongruous. There is also a requirement to protect their status or seniority if they opt for civil government employment after release.

Similarly, there is a need to introduce a Short Service Engagement scheme for recruitment at lower ranks – individuals who will serve for ten years and then be released with NPS benefits and “ex-serviceman status”. Obviously, these Short Service schemes would be voluntary and concurrent to regular entries which shall continue to be on OROP dispensation. However, gradually the number of the former may be amplified and the latter reduced.

The establishment would have to find ingenious, albeit practical and non-exploitative ways, to reduce the bill, and demonising OROP or disability pensions is not one of them. OROP is mandated by the Cabinet and was promised by successive governments to cater to the massively curtailed tenure of defence personnel who start retiring in their 30s. The way out is to reduce future OROP beneficiaries by rationalising permanent staff.

Similarly, the recent furore over disability pensions was unpleasant. Frequent transfers, regimented lifestyle, curtailment of freedoms and inability to cater to domestic commitments result in aggravation of common medical conditions in soldiers, a reality militaries face globally. The attempt should be to introduce policies to reduce stress and strain, provide comfort and succour to soldiers to reduce the prevalence of disability and consequently disability benefits. It would be imprudent to attempt to vilify military disabilities to save pennies rather than making lives of soldiers better.

Lateral induction of soldiers to other organisations such as Central Armed Police Forces (CAPFs) has also been propagated by successive pay commissions but opposed by the Ministry of Home Affairs (MHA). Perhaps the reason might be valid to an extent. CAPFs would not want military veterans parachuting into their ranks and blocking their career progression. But then there could be a solution by simply raising a separate organisation of military veterans under the MHA and employ them for duties configuring with their past expertise, or utilise them for national reconstruction roles or executing government schemes.

What is required to tame the military pension bill is a balanced but determined and humane political executive, and it seems the current defence minister might just fit that description.

DISCLAIMER : Views expressed above are the author's own.

AUTHOR

Navdeep Singh

The writer is a high court lawyer and author

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TOP COMMENT 

(1)

No easy or swift solution suggests itself. However, with increasing life spans, a way will have to be found to limit the expenditure on pensions, now about one trillion. With proper training and orientation, retiring jawans are ideal for induction into the CAPF. Not an issue on which undue deference should be shown to their career planning and progression.

DA July 2019 waiting for Central Government Employees and Pensioners

DA July 2019 waiting for Central Government Employees and Pensioners

7th pay commission latest news: Big boost in salary! Cabinet to approve 5% per cent DA today?

7th pay commission latest news today: The long wait of over one crore central government employees as well as pensioners for increase in dearness allowance (DA) is likely to end today.

7th pay commission latest news today: The long wait of over one crore central government employees as well as pensioners for increase in dearness allowance (DA) is likely to end, as Centre is all set to give the biggest gift to them and that too today itself. If sources are to be believed, a decision to increase the dearness allowance of government employees may be taken in the meeting of the Union Cabinet slated today. However, there may be a problem. In view of assembly elections in Maharashtra and Haryana, the government would have to first get the approval of the Election Commission of India.

There are 1.1 crore employees and pensioners in the central government, and the cabinet approval will benefit them the most, because they would possibly get the maximum increase in DA by 5 percent. If the government goes ahead with this increase, the salary of these employee under the 7th Pay Commission pay scale will increase from Rs 900 to as much as Rs 12500 per month.

Harishankar Tiwari, former chairman of the AG Office Brotherhood, Prayagraj, who has been involved with computation process of DA, told Zee Business Online that AICPI figures between January and June 2019 have risen. The DA for June has been 17.09 per cent which is more than 5 per cent as compared to December.

Notably, the central government had increased the DA by 3 per cent from January 2019. HS Tiwari said that anyway, the central government has been announcing DA hike before the festival of Dussehra. Earlier, it has been announced in the month of March and September.

If this announcement is made by government, central government employees would see the biggest benefits in 3 years. Currently, the dearness allowance of central government employees stands at 12 per cent, and this has witnessed a maximum increase of 3 per cent

The calculation of DA is in fact done according to the AICPI data. This is done in the following manner.

June 2019: AICPI-316
Total 12 months: 3673 (301 + 301 + 301 + 302 + 302 + 301 + 307 + 307 + 309 + 312 + 314 + 316) / 12) - (261.4) x100 / 261.4)
Increase in DA: 17% -12% = 5%