Govt likely to increase and merge dearness allowance with basic pay

Mahendra Kumar SinghMahendra Kumar Singh,TNN | Feb 20, 2014, 01.08 AM IST

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The move will facilitate announcement of interim relief to more than 50 lakh government employees and 30 lakh pensioners by the newly-constituted pay commission before the code of conduct for the Lok Sabha polls come into force.

 

 

NEW DELHI: The government may increase and merge dearness allowance (DA) with basic pay with the Union Cabinet expected to include the proposal as part of the terms of reference of the 7th pay commission.

The move will facilitate announcement of interim relief to more than 50 lakh government employees and 30 lakh pensioners by the newly-constituted pay commission before the code of conduct for the Lok Sabha polls come into force.

Central government employees unions have been demanding that besides raising DA to 100%, the government should revise the pay and merge DA with basic pay, considering market inflation and price hike of essential commodities.

As per practice, DA is merged with basic pay when it breaches the 50% mark. DA merger helps employees as their other allowances are paid as a proportion of basic pay.

An official said if merger of 50% DA with basic pay was decided, it could lead to hike in salary by around 30-35%. He added that there were instances of announcing interim relief to employees apart from DA by a newly constituted pay commission prior to their implementation.

Merger of 50% DA with basic pay was done in the 5th pay commission, but the 6th commission did not recommended it.

The Centre is expected to announce next month a hike in dearness allowance by 10% which would make it 100% of basic pay. It will be the second double digit DA hike in a row as the government had announced a hike of 10% in September last year, effective from July 1, 2013.

An official said hike in DA will not be less than 10% and would be effective from January 1 this year.

(Source-toi)

 

One-rank,one-pension : 14 gun salute for Forces

       


In a desperate bid to woo the defence community comprising 14 lakh serving and over 25 lakh retired military personnel in the run-up to the Lok Sabha elections,the Centre pulled the long-demanded one-rank,one-pension rabbit out of its hat.
It will be implemented prospectively for armed forces from 2014-2015,finance minister P Chidambaram said on Monday,with the government transferring Rs 500 crore to the defence pension account.The defence community swells into a sizeable vote bank of close to two crore people if family members are taken into account.
This comes just after Congress vice-president Rahul Gandhi told a group of ex-servicemen last week that he fully backed their OROP demand,in what now seems to be a scripted interaction.The defence community,after all,swells into a sizeable and vocal vote bank of close to 20 million people if family members are also taken into account OROP basically implies payment of uniform pension to personnel retiring in the same rank with the same length of service irrespective of their date of retirement.

UNIFORM BENEFITS - Govt targets Forces with pension salvo 
 

In a last-ditch gambit to woo the defence community of 14 lakh serving and over 25 lakh retired military personnel, the government has yanked the long-demanded, much-promised but never-implemented one-rank,one-pension (OROP) rabbit out of its hat in the run-up to general elections.

F M P Chidambaram said the OROP decision will be implemented prospectively for armed forces from 2014-15, with the government transferring Rs 500 crore to the defence pension account in the current fiscal to close the gap for all retirees (pre-2006 and post-2006 ) in all ranks. This comes just after Congress vicepresident Rahul Gandhi told a group of exservicemen last week that he fully backed their OROP demand,in what now seems to be a scripted interaction.The defence community,after all,swells into a sizeable and vocal vote bank of close to 20 million people if family members are also taken into account.

OROP basically implies payment of uniform pension to personnel retiring in the same rank with the same length of service irrespective of their date of retirement.Consequently,any further hike in pension rates is automatically passed on to past pensioners.

Irate ex-servicemen have been returning their medals and holding rallies over the past five years, which included one with BJP prime ministerial nominee Narendra Modi and former Army chief General V K Singh at Rewari last September, to protest against the non-implementation of OROP. On Monday, there was again scepticism about whether it was full OROP or just the eyewash of modified parity yet again. The UPA was in power for the past 10 years but this comes only now. Moreover, Rs 500 crore seems paltry. Earlier, the MoD and the CGDA had calculated Rs 1,730 crore for 2014-15. Another official figure was Rs 3,000 crore per year for OROP, said a senior military officer.

But MoD contended that the contours of OROP and its implementation will be worked out in the coming weeks.The Rs 500 crore is just a provisional figure to show the governments intent, said an offi cial.Chidambaram,too,said MoD had asked for Rs 500 crore but if more was required, it would be fully provided. The government, however, was mum on the legal and administrative reasons used in the past to junk the OROP proposal. Civilian pensioners, for instance, would demand the same with a heavy financial implication of Rs 8,000-9,000 crore per annum, it had held.

There will be no spurt in military modernization. It will continue to meander in its usual slow manner, with the defence outlay being marginally hiked to Rs 224,000 crore in the 2014-15 interim budget. The 10% hike over the previous outlay of Rs 203,672 crore basically just caters for inflation. In dollar terms,there has actually been a dip from $37.86 billion to $36.13 billion due to depreciation of the rupee. The worry among military experts is that Indias budgeted defence expenditure is merely 1.74% of the projected GDP for 2014-15, much less than the 3% being demanded for years to ensure modernization and requisite deterrence against both China and Pakistan. In fact, its even less than the 1.79% and 1.9% figures, respectively, of the last two fiscals.

Moreover, revenue expenditure(day-to-day costs &salaries) has gone up to Rs 134,412 cr. surpassing by far capital expenditure for new weapons,sensors and platforms at Rs 89,588 crore. A major chunk of the capital outlay will go to committed liabilities, not leaving much for new projects despite the armed forces being desperate for submarines and howitzers, air defence weapons and helicopters. The major project is the $20 billion medium multi-role combat aircraft deal for 126 fighters, with final commercial negotiations under way for French Rafale jets. This alone will see an outgo of over Rs 10,000 crore as the first instalment after the contract is inked. Some other important deals close to finalization include the acquisition of 22 Apache attack helicopters (around $1.4 billion), 15 Chinook heavy-lift helicopters (around $1 billion), and 145 M-777 ultra-light howitzers ($885 million), all from the US.

10% outlay hike will only cover inflation

(Source-TOI)


           
 

OROP - One Rank One Pension Accepted by Central Government

Monday, February 17, 2014

The Central Government has accepted the principle of ‘one rank one pension’ for the defence forces and has allocated Rs. 500 crore for this purpose.

The Government has allocated Rs. 500 crores to the Defence Pension Account in the current financial year itself for implementation of One Rank One Pension scheme for the Defence Forces of the country. Making the announcement in Parliament today during his Interim Budget Speech, the Finance Minister Shri P. Chidamram said that this decision will be implemented prospectively from the financial year 2014-15. The Finance Minister said the Government had decided to walk the last mile and close the gap for all retirees in all ranks. He said the demand of the Defence Services for One Rank One Pension (OROP) had been there for a long time and had been an emotive issue. 

Extract of Budget Speech :

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 Rs.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.

Source: PIB News

Defence budget hiked 10 per cent, government accepts 'one rank, one pension'

New Delhi:  The Centre today announced that it has accepted the "one rank, one pension" principle for the forces as part of a 10 per cent hike in the defence budget, a decision that the ruling Congress hopes will win it the support of lakhs of soldiers ahead of the national election, due by May.

In his interim budget speech, Finance Minister P Chidambaram announced that the defence budget was being raised to Rs.2,24,000 crore.

"Rs. 500 crore will be transferred in 2014-15 for implementing the one rank one pension decision," he added.

Under the "one rank, one pension" rule, retired soldiers of the same rank and length of service will receive the same pension, regardless of when they retire. Currently, pensioners who retired before 2006 receive less pension than their counterparts, even their juniors.

The mega announcement comes three days after Rahul Gandhi endorsed it after meeting a delegation of ex-servicemen last Friday.

Prime Minister Manmohan Singh said the subject had been addressed comprehensively and he was confident that "our forces, officers and jawans will welcome the announcement." There are 14 lakh serving and 24 lakh retired military personnel in the country.

Rahul Gandhi is expected to address a rally of ex-servicemen in Uttarakhand on Saturday.

The BJP welcomed the announcement on one rank, one pension for the forces, but party veteran Jaswant Singh, a former defence minister and a retired soldier, raised doubts about its implementation.

"This doesn't fully address the concerns of the forces. The budget helps UPA's politics more than the economy," Mr Singh told NDTV.

The Centre had earlier raised the subsidy cap on cooking gas cylinders from nine to 12, after Rahul Gandhi made an appeal to Prime Minister Manmohan Singh from a Congress party platform.

The decades-old "one rank, one pension" demand has seen many protests by former soldiers; many decorated veterans have returned their medals and some have even gone on hunger strikes to fight for it.
 

(Source - NDTV Update)

One Rank One Pension for armed forces approved in budget

Great news for ex servicemen. Finance Minister in his interim budget granted Rs 500 Crores for implementation of OROP for the ex servicemen. It will be effected prospectively from 01.04.2014.
Chidambaram says the government has accepted the one rank one pension scheme for the defence forces. "Rs 500 crore will be transferred in 2014-15 for implementing the 'one rank one pay' decision,"

(Source- Pay Commission blog)

Rahul backs one rank, one pension for ex-servicemen

Saturday, February 15, 2014

Rahul backs one rank, one pension for ex-servicemen: Deccan Herald

Congress vice-president Rahul Gandhi on Friday lent his support to the long-standing demand of ex-servicemen for “one rank, one pension” (OROP).

“I am on your side. I understand your concerns. You give your life for the country, I will do all that I can to see that your demands are met,” Gandhi told various state delegations of ex-servicemen who met him.

The delegations from Haryana, Rajasthan, Himachal Pradesh and Punjab met the Congress vice-president on Friday and pressed for implementation of OROP.

There are over two million defence pensioners who receive differential retirement benefits. All pre-2006 pensionersreceive lesser pension than those who retired in the same rank later and even than those of junior rank.

A colonel who retired in 2003 gets Rs 26,150 as pension compared to Rs 34,000 drawn by a colonel who retired this year. BJP prime ministerial candidate Narendra Modi had also reached out to them when he addressed a huge rally of ex-servicemen in Rewari last year with former Army Chief V K Singh joining him on the dais.

Gandhi assured the ex-servicemen that he would make all efforts to ensure that this long-standing demand is met at the earliest. [Source]

Rahul backs 'One-Rank-One-Pension' demand of ex-servicemen: IBN Live

New Delhi: Rahul Gandhi on Friday backed the long-pending demand of "One-Rank, One-Pension" for ex-servicemen assuring them that he will make all efforts to ensure it is met at the earliest.

"I am on your side. I understand your concerns. You give your life for the country, I will do all that I can to see that your demands are met," Gandhi told a gathering of 1000 odd ex-servicemen during an interaction.

Gandhi is holding interactions with various sections to get their direct feedback for Congress manifesto for 2014 Lok Sabha elections. Delegations of ex-servicemen from Haryana, Rajasthan, Himachal Pradesh and Punjab met Gandhi on Friday and requested him to push for the implementation of the "One Rank, One Pension" [source]

राहुल ने पूर्व सैनिकों को दिया एक रैंक-एक पेंशन का भरोसा: Jagran

नई दिल्ली। पूर्व सैनिकों की लंबे समय से चली आ रही 'एक रैंक-एक पेंशन' मांग का कांग्रेस उपाध्यक्ष राहुल गांधी ने समर्थन किया है। उन्होंने पूर्व सैनिकों को वादा किया कि वह जल्द से जल्द उनकी मांगों को पूरा करने का प्रयास करेंगे।

यहां करीब एक हजार पूर्व सैनिकों से मुलाकात में राहुल गांधी ने कहा, 'मैं आपके साथ हूं। आपने देश के लिए अपना पूरा जीवन दिया। आपकी मांगों को पूरा करने के लिए भरसक प्रयास करूंगा।' बता दें कि राहुल गांधी आगामी आम चुनाव के मद्देनजर कांग्रेस के चुनावी घोषणापत्र पर राय लेने के लिए विभिन्न तबकों से मिल रहे हैं। इसी कड़ी में हरियाणा, पंजाब, राजस्थान और हिमाचल प्रदेश के पूर्व सैनिकों के प्रतिनिधिमंडल से शुक्रवार को राहुल की मुलाकात हुई। पूर्व सैनिकों के संगठन के चेयरमैन मेजर वेद प्रकाश ने बताया कि मुलाकात में उनकी तरफ से सशस्त्र बलों में कार्यरत सैनिकों का भी मामला उठाया गया। राहुल से गुजारिश की गई कि ये सैनिक पारिवारिक जिम्मेदारियों का निर्वहण करने से पहले ही सेवानिवृत्त हो जाते हैं। ऐसे में उन्हें अर्धसैनिक बलों या सरकारी नौकरियों में समायोजित किया जाए। [Source]

राहुल ने ‘एक रैंक-एक पेंशन’ मांग का समर्थन किया : Zee News

नई दिल्ली : कांग्रेस उपाध्यक्ष राहुल गांधी ने शुक्रवार को पूर्व सैनिकों के लिए लंबे समय से चली आ रही ‘एक रैंक-एक पेंशन’ की मांग का समर्थन किया और उन्हें आश्वासन दिया कि यह जल्दी से जल्दी पूरा हो इसके लिए वह पूरा प्रयास करेंगे।

राहुल गांधी ने यहां करीब एक हजार पूर्व सैनिकों की एक बैठक में उनसे बातचीत के दौरान कहा, ‘मैं आपके पक्ष में हूं। मैं आपकी चिंताओं को समझता हूं। देश के लिए आपने अपना जीवन दिया है। आपकी मांगे पूरी हों, इसके लिए मैं वह सब करूंगा जो मैं कर सकता हूं।’

हरियाणा, राजस्थान, हिमाचल प्रदेश और पंजाब के पूर्व सैंनिकों के एक प्रतिनिधिमंडल ने यहां राहुल गांधी से मुलाकात कर उनसे ‘एक रैंक-एक पेंशन’ की नीति को लागू करने की मांग को आगे बढाने का अनुरोध किया।

भारत के करीब 20 लाख पूर्व सैनिकों की ‘एक रैंक-एक पेंशन’ की मांग लंबे समय से चली आ रही है। पूर्व सैनिकों का कहना है कि बाद में एक ही रैंक पर रिटायर होने वाले जूनियर लोगों को ज्यादा पेंशन मिलना अन्यायपूर्ण है। उन्होंने राहुल गांधी से यह सुनिश्चित करने का अनुरोध किया कि यह विसंगति दूर हो।

गांधी ने पूर्व सैनिकों से कहा कि वह यह महसूस करते हैं कि उनकी मांग काफी पुरानी है और वह यह सुनिश्चित करने का पूरा प्रयास करेंगे कि लंबे समय से चली आ रही उनकी मांग जल्द से जल्द पूरी हो। कांग्रेस के पूर्व सैनिक प्रकोष्ठ के अध्यक्ष मेजर वेद प्रकाश ने प्रेस ट्रस्ट से कहा कि पूर्व सैनिकों ने इस बैठक के दौरान इस बात का भी उल्लेख किया कि सेना में काम करने वाले जो लोग जल्द रिटायर हो जाते हैं और यहां तक कि उनकी पारिवारिक जिम्मेदारियां भी पूरी नहीं हुई होती हैं वैसे लोगों को अर्धसैनिक बलों और अन्य सरकारी नौकरियों में जगह मिलनी चाहिए। (एजेंसी) 

[Source - by cgenewstools@gmail.com]

Prime Minister Approves Composition of 7th Central Pay Commission Under the Chairmanship of Justice Ashok Kumar Mathur

Prime Minister Approves Composition of 7th Central Pay Commission Under the Chairmanship of Justice Ashok Kumar Mathur, Retired Judge of the Supreme Court and Retired Chairman, Armed Forces Tribunal

The Finance Minister Shri P. Chidambaram has issued the following statement:

“The Prime Minister has approved the composition of the 7th Central Pay Commission as follows:

1.	Shri Justice Ashok Kumar Mathur (Retired Judge of the Supreme Court and Retired Chairman, Armed Forces Tribunal)	Chairman
2.	Shri Vivek Rae (Secretary, Petroleum & Natural Gas)	Member (Full Time)
3.	Dr. Rathin Roy (Director, NIPFP)	Member (Part Time)
4.	Smt. Meena Agarwal (OSD, Department of Expenditure, Ministry of Finance)”	Secretary

Source: PIB News