Sunday, August 23, 2015

The OROP is causing headache to the Modi Goivt In INDIA ie Bharat

The attractively titled & packaged Brand OROP is hitting the right buttons : It is easy,simple & comprehensive & is equitable. Narenadra modi fell for it & used it extensively during election campaign.The UPA-2 belatedly recognised the importance of it & allotted a mere 500 crores: The Babu secretaries & the Generals & their equivalents in Air Force & Navy draw a fixed pay(Top) at the time of retirement: The fifth pay commission (1996)took care to see that all future increases are reflected in the FUTURE revisions. They will get FIFTY PERCENT OF the last pay drawn.
The armed forces were given an edge over the civilian babus on account of the special nature of their service conditions/physical fitness requirements /hard tenure service in field areas/life in snow clad glaciers/separated families etc.etc. This logic is still valid even today: Till the year 1973,the pay of defense personnel was reviewed separately . The officers did not want the other ranks to get better pay and allowances; Due to hard times the Govt stagnated the pay during 1970 & the defence pensioners suffered very badly(third pay commission-1973) The civil pension & military pension ware made same at 50 %( Reduction from 70% to 50% for defence pensioners & increase of 20 % for civil pensioners: from 30% to 50%)
Under the 4th pay commission, (1986)real Basic Pay got doubled but adjustment for inflation was only partial: The fifth pay commission(1996) the pay was doubled and 100 % cover was given for inflation.The 6th pay commission(2006)tripled real pay,but because of the pension adjustment lagged behind salary revision ; with every pay revision ,pensioners fall further behind. The OROP agitation was taken up by the forces only because,the public sympathised with their cause:
The sharp pyramidical structure,limits the scope for promotions. The pay is linked to the Rank & Position held,where as it is not so in the case of civilians. The edge,which forces enjoyed,becomes only notional after first 16 years(of Civilians) from then on the civilians LEAD. Jawans retire much earlier ,b’coz of strict health requirements in the services Soldiers retire at the age of 35 and 60 % of officers retire at the age of 54 : The civilians keep on earning promotions & pay hikes till they reach 60 years.
Short service span & fewer promotions make a Jawan get 40% less salary than a civilian,who starts his career at the same time, The pension pay out should be 75%,as it was ,till the 3rd pay commission.
Theoritically the OROP is FLAWED b’coz it is not consistent with principle of efficiency & violates the principle of contract: Pension is a future payment,for pas & capacity of the country to pay: Pension is like a fixed annuity(indexed to inflation) Increasing in  the base pension, amount  as pay increases ,envisage in orop is not defensible.

The govt should restore pre 1973 pay - out  0f 75% only for pre 1973  and 1995 retirees(when pension was not 100 % inflation indexed)

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