OROP Status Report

by Lt Gen Raj Kadyan

General

1.      Politicians speaking in the Parliament add a lot of dressing to the substance of what they say. The Finance Minister did the same on 14.02.2014 while speaking on OROP. He first floridly announced that the gap between pre-2006 and post-2006 retirees for all ranks needs to be closed. Later, coming to the gist he had stated that the government has now decided to walk the last mile and implement the scheme of One Rank One Pension for all Armed Forces personnel and their dependents.

2.    In the follow-up meeting held on 26.02.2014 the Defence Minister, who was in chair, had reiterated the following definition of OROP:

       "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."

3.   This definition accords with what the IESM has been projecting (except we had not used the term 'uniform pension'). This was also the definition given by the Rajya Sabha Committee  on Petitions that submitted its report on 19.12.2011.

4.    The Services prepared a draft government letter in April giving out detailed modalities of OROP. The draft still remains under discussion.

Meetings of Stake Holders

5.      In a subsequent meeting held on 22.04.2014, the Defence Minister constituted a committee to work out the modalities and submit its report within three weeks. (It is learnt that the Minister wanted the report much faster but the PCDA expressed inability to do it in lesser time frame).

6.    The Committee has had five sittings starting with the first meeting on 02.05.2014. Some of these were chaired by the RRM.  The PCDA has been consistently displaying an obstructionist approach and has been the main stumbling block. He has been giving his own interpretation to various aspects of OROP. Some of these, including the counter by the Services are given in following paras.

7.    Definition of OROP.   According to PCDA, definition of OROP should be drawn from the Finance Minister's budget 2014-15 speech vide which the gap between pre-2006 retirees and post-2006 retirees for all ranks needs to be closed. Here he is quoting the first part of the FMs speech while conveniently ignoring the second part as given in Para 1 above. The Service representatives attending the meetings have pointed this out in the meeting and have also drawn attention to the definition given by the Rajya Sabha Committee on Petitions.

8.      Interpretation of the Term 'Uniform Pension'.  The PCDA has opined that 'Uniform' pension means pension under a uniform pay/pension structure i.e. under the same pay scales with same qualifying service & pension calculation formula. According to him it need not necessarily lead to same pension for all the retirees (past & present) in the same rank and same qualifying service because of the annual increments being given to the serving personnel. The Services have of course countered saying uniform pension means one/same/equal/identical pension.

9.      Length of Service.  The PCDA has further held that the 'length of service' in the OROP definition is to be treated as the number of years of service put in by the pensioner in the rank last held. Alternatively, according to the PCDA, if total qualifying service is to be treatedfor the purpose of OROP then qualitative aspects relating to length of service in terms of number of years rendered in each rank the service person has served before the retirement in the last rank held, needs to be taken cognizance of. This they concede will be difficult to implement in practice. The counter by the Services is that length of service and qualifying service are synonymous as given in Rule 19 of Pension Regulations 2008 as also in the MoD letter dated 17.01.2013.

10.   Bridging the Gap.    The PCDA has further held that while bridging the gap between the pre-2006 and post-2006 pensioners the benefits of improved service conditions (viz. method of faster promotion applicable to the current personnel) should not be extended to past pensioners. This in fact runs against the concept of automatically passing on future enhancement to past pensioners, which is intrinsic to the definition of OROP. The Services have pointed this out, also underscoring the fact that the benefit of MSP and Grade Pay for calculation of pension has already been extended to past pensioners. The Services have further suggested that there should be a periodic review of OROP say on yearly basis, wherein any anomaly can be addressed.

Conclusion

11.    For reasons best known to them the outgoing government announced OROP too late and could not get it implemented during their tenure. With their term nearing the end, the bureaucratic hierarchy reportedly stopped being responsive to political orders. The dunderheaded obduracy of some financial bureaucrats can delay it for some time but cannot stop OROP. It is reiterated that OROP has come about after a long effort of over three decades. While some delay in its implementation is understandable, any hint ofdilution will be resisted and will result in renewal of the struggle by The IESM.

9000 SFT OFFICE SPACE AVAILABLE AT SOMAJI GUDA HYDERABAD

There is big space of about 9000 sq.ft for office use is available in prime area of somajiguda at ARAM GHAR COMPLEX, PLOT NO.10, SURYANAGAR, SOMAJIGUDA, HYD. In Ground and 1st floor, with all emenities big Parking Area also there. This is new building & This area Usefull for all CORPORATE OFFICES. BANKS. & OTHER SOFTWEAR COMPANIES
Interested persons may  contact ph no. 9440039383 

EX-SERVICEMAN IS REQUIRED FOR GATED COMMUNITY AS RESIDENT MANAGER NEAR KOMPALLY, HYDERABAD

 A Resident Manager is required  to perform the following jobs at a Gated Community. 

The requirements are:

1.The job needs good skills in terms of man management and idea of getting works done in organised way      with in time frames given. 

2.Procurement of material , labour and management of differnet resident complaints and solving them with in a time frame are some basic requirements of the job.  

3.Should be able to speak english/hindi and telugu languages.

4.Salary will commensurate with experience. 

Interested Ex-Servicemen near by Kompally may call on Mr.Sandeep Reddy mobile: 9885399123

Sri.Sreenesh Kumar Sainik Welfare Officer R.R.District is likely to be the new Director of Sainik Welfare to Telangana State

Sri.Sreenesh Kumar

According to the information available it is most likely that Sri.Sreenesh Kumar Sainik Welfare Officer R.R.District is likely to be the new Director of Sainik Welfare to Newly formed Telangana State.

Terms of Reference of 7th Central Pay Commission (CPC)

The Union Cabinet today gave its approval to the Terms of Reference of 7th 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 the 7th 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.

(Source-PIB)

SOME IMPORTANT RELIEFS IN BUDGET 14-15 FOR EX-SERVICEMEN

ONE RANK ONE PENSION

56.       Hon’ble Members are aware of the long standing demand of the Defence Services for One Rank One Pension (OROP).  It is an emotive issue, it has legal implications, and it has to be handled with great sensitivity.   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.  There is still a small gap in the ranks of Sepoy and Naik and a gap in the ranks of Major and above.  We need a young fighting force, we need young jawans, and we need young officers.  We also need to take care of those who served in the defence forces only for a limited number of years.  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.  This decision will be implemented prospectively from the financial year 2014-15.  The requirement for 2014-15 is estimated at `500 crore and, as an earnest of the UPA Government’s commitment, I propose to transfer a sum of `500 crore to the Defence Pension Account in the current financial year itself.

EDUCATION LOANS

64.       Hon’ble Members will recall that my predecessor, Shri Pranab Mukherjee, had, in the Budget of 2009-10, introduced the Central Scheme for Interest Subsidy (CSIS) in respect of education loans disbursed after 1.4.2009 under which Government took over the burden of interest for the duration of the period of study and a little beyond.  The scheme brought great cheer to student-borrowers and their families.  However, I have noticed a sense of discrimination among students who had borrowed before 31.3.2009, struggled to pay interest during the period of study, and continued to service the loans afterwards.  I think they deserve some relief.  I therefore propose a moratorium period for all education loans taken up to 31.3.2009 and outstanding on 31.12.2013.  Government will take over the liability for outstanding interest as on 31.12.2013, but the borrower would have to pay interest for the period after 1.1.2014.  It is estimated that nearly 9 lakh student borrowers will benefit to the tune of approximately `2,600 crore.  I intend to provide the funds in the current financial year itself.  Accordingly, a sum of`2,600 crore will be transferred to the Canara Bank, the designated CSIS banker.  Details of the scheme will be announced shortly. 

Justice Mathur to head 7th Central Pay Commission

  Former Supreme Court Judge Ashok Kumar Mathur will head the seventh Pay Commission, which will revise salaries of over 50 lakh Central government employees and remuneration of 30 lakh pensioners.

“The Prime Minister has approved the composition of the 7th Central Pay Commission,” the Finance Ministry said in a statement on Tuesday.

“The Prime Minister has approved the composition of the 7th Central Pay Commission,” the Finance Ministry said in a statement on Tuesday.
The announcement for composition of the Commission comes ahead of imposition of model conduct which would come into force once the schedule for the general election due in April-May is notified.
The Retired Supreme Court Judge, who had also headed the Armed Forces Tribunal, has been appointed chairman of the Commission.
The Commission has been mandated to submit its report in two years time and its recommendations would be implemented from January 1, 2016.
The other members of the Commission, include, Oil Secretary Vivek Rae (full time member), NIPFP Director Rathin Roy (part-time Member) and OSD in Expenditure Department Meena Agarwal (Secretary).
Earlier in September 2013, the Prime Minister had approved setting up of the 7th Pay Commission.
The recommendations of the Commission will benefit about 50 lakh central government employees, including those in defence and railways, and about 30 lakh pensioners.
The government constitutes Pay Commission almost every ten years to revise the pay scales of its employees and often these are adopted by states after some modification.
The sixth Pay Commission was implemented with effect from January 1,2006, the fifth from January 1, 1996 and fourth from January 1, 1986.

Clarifications on ECHS CARD UPGRADING:

Clarifications on ECHS CARD UPGRADING:

Dear All

I am reproducing mail received from Central Organization ECHS clarifying certain issued raised with them recently.

I would like to thank the MD and his team for being so prompt in accepting our point of view and responding positively.

Thank you Gen George and all your team.

Pathak

Dear Sir,
We in ECHS Central Organisation are receiving reports from veterans that undermentioned aspects are being highlighted by various Ex Servicemen Associations alongwith clarifications against each :-
(a) Inclusion of UID in ECHS Application Form. Clarification : This is Not Compulsory.
(b) Deposit of ECHS Cards while applying for Upgraded Cards. Clarification : This policy on deposit of ECHS Cards while applying for Upgraded Cards has been reverted. Now ESM have to carry their New Cards with the Old Cards to ECHS Polyclinic for registration where the Old Card will be deposited.
(c) Compulsory Upgradations from 16 kb Card to 32 Kb Card and to be done before 01 Jan 2014. Clarification : There is no such compulsion and where ESM finds that the Card Text is not readable or the Biometric check is not working for the card, the same may be changed through existing process.

You are requested to please give the above inputs to all veterans so as to avoid any confusion.

Cdr Ravindra Waman Pathak I.N. (Retd)

Member Governing Body and Pension Cell

Indian Ex Servicemen Movement

JOB OPPORTUNITY TO EX-SERVICEMEN

M/s. Aurobindo Pharma requires Security Managers(only ex-servicemen). Salary will be 25-30 thousand. Should be fluent in English. Probably the jobs are in Hyderabad & Andhra Pradesh. Interested Ex-Servicemen are required to apply to HRABI@AUROBINDO.COM OR HUDHA@AUROBINDO.COM with full bio data or contact 040-39325000 

65th Republic Day Celebrations at Tejaswi Car Coats, Kothapet

Sri. Sreenesh Kumar Sainik Welfare Officer Ranga Reddy District Hoisting the National Flag.

Members attended the meeting 

P.
Vigneshwar Raju Vice-President speaking on the occasion

P.Manohar Reddy Gen.Sec. speaking on the occasion 

Sri.Sreenesh Kumar speaking on the occasion