Tuesday, January 13, 2015

Forces seek new pension formula based on last pay

New Delhi, January 12
Even as the retired veterans from forces are asking for one-rank-one pension (OROP), the ‘joint services’ memorandum submitted to the 7th pay commission has recommend a pension formula that is based on the last pay drawn.
Sources told the Tribune that the memorandum submitted on behalf of the three services, the Army, the IAF and the Navy, to the commission has suggested that 75 per cent of the last pay drawn should be the benchmark for calculating pension for jawans. In case of officers, 60 per cent of last pay drawn be the benchmark for calculating pension.
This demand has been put forward as the government is yet to implement the one rank-one pension (OROP). On its part, the government has accepted the OROP. Its modalities are being worked out over the past 12 months.
The Rajya Sabha Petitions Committee chaired by Bhagat Singh Koshyari in December 2011 stated that clubbing the defence personnel with the civilian employees for pension purposes was not a considered decision.
The committee laid down the definition of OROP: “It implies that uniform pension be paid to 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 pensions 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.”
Three weeks ago, Defence Minister Manohar Parrikar had promised “OROP will be implemented....it has a lot of financial implications which are being worked out”. On the civilian side, the pension is 50 per cent of the last pay drawn and the same formula was applied for the forces in the last pay commission.

The suggestions

  • The memorandum says that 75% of last pay drawn should be the benchmark for calculating pensions for jawans

  • In case of officers, 60%of last pay drawn be the benchmark

  • The memorandum also says the Military Service Pay be fixed at 30% of basic pay for jawans and 15% of the basic pay for officers
  • =================================================
The forces have argued that 50 per cent of the last pay drawn was more in tune for civilians. People in forces retire early and only 2 per cent of them make it to the rank of Major General or equal in the IAF and Navy that is at a par with Joint Secretary.
The memorandum also says the Military Service Pay (MSP) amount is very small and suggested it be fixed at 30 per cent of basic pay for jawans and 15 per cent of the basic pay for officers.
In case of disability pension, a minimum 10 years of service is required to be eligible. And if a person is injured critically within 10 years and cannot continue further in the forces, he cannot get pension. This 10-year period should be waived, the memorandum suggested.

(Source- Ajay Banerjee - Tribune News Service)


  1. The Military brass deserves kudos for overcoming the cantonment syndrome and projecting the aspirations of their commands in spite of history of accepting whatever is thrown including reduction of pensionery benefits in 76. We are happy that the Military brass has corrected themselves and taken the path of gallantry instead of tradition of defeats. Financial smartness is almost non existence in the Military brass and it is time that bright sparks are trained and groomed in the military finance to prevent short changing and charging by finance bureaucracy. Due weight age to get rid of weakness in financial field must be initiated to prevent unnecessary unhappiness in subsequent years

  2. MSP (Military service Pay) – It must not be linked with Basic pay or the Rank pay at all. Sep to General is doing military service and it must be same for all ranks.

    For example at Leh – Ladakh on the same point a sep and a officer is on duty now you can see both are human beings and having the same feelings of difficulties ,coldness and loneliness . In the 6th CPC for MSP SubMaj put with Jawan for MSP Rs 2000/- , and JCO’s knowingly down graded.
    The members of the 7th CPC are wise and learned people and having the experience of service and life in the civil society. In the Public service there must be difference in the Basic Pay and Grade pay for the public servants but facilities to be given on the humanitarian ground and the dignity of subordinates also be considered.
    The humanitarian ground not considered for grant of MSP para 3(i) of this
    Memorandum the MSP given to the officers is Rs 6000/ and below officers is Rs
    2000/ for the same nature of duty in the respective ranks is one of the example. In the
    Socio–Democratic country such British type rules and regulations to be modified with the time.

  3. Irrespective of the view of our learned burocrats and their poor knowledge of the working conditions of the Armed Forces and the peculiarities of their service, THE CHIEFS OF STAFF should be firm to project their views and ensure that orop as accepted by logical definition should be implemented soon so that the disciplined and loyal servicemen and ex-servicemen get their due without agitating unlike othe couterparts in the civilian departments