Tuesday, February 24, 2009

IESM: OROP Vs OTI

Date: Monday, 23 February, 2009, 5:04 PM
Dear Gen Kadyan,
I tend to agree with you that perhaps the media is suffering from OROP fatigue. Irrespective of what political leaders say, it is doubtful if GOI will grant it the way it is being projected by us. My experience in dealing with Govt in such matters is that they blow hot and cold on this issue and finally put it on the back burner Now they can claim it to be sub judice.

The closest we got the Govt to grant us this was when OTI was granted as a poor substitute. The speed with which OTI increases were computed and promulgamated was mind boggling. Many of us in service were not convinced nor happy with this turn of events. But being comparitively junior in service we were silenced. Much of the inside story I learnt many many years later from the PCDA(Navy) who was DS(Pensions) working and implementing OTI .

Therefore it is essential that a fallback position acceptable to all and called by another name is discussed and firmed up. In doing this greater reliance on known truths and not emotions alone should be the cornerstone. The following facts are of relevance:
  • Defence Pensions were traditionally different from Civillian pensions right upto 1974. In fact they were termed SERVICE PENSION as distinct from Retiring Pension for civillians and was applicable to all pensioners irrespective of vintage except of course KCIOs.
  • Service pension was Rank based. Each rank had a distinct pension related to the years of service specified by DSR/RegsNavy requiredto reach that rank. This was called Standard Service. If one did more than standard service pension remained the same till superannuation. If one did less than standard service prior to retiring then a monetary amount was deducted.

    The Third CPC which did maximum harm to the Armed Forces salary structure demolished Service Pension and brought them on par with the civillian retiring pension. Weightage in years of service was given to defence personnel to bring them notionally on par with the civillian retiring age in view of their truncated career. The Armed Forces were unhappy with this which lead to the GOI forming the famous KP Singh Deo Committee which reccommended going back to Service Pension calling it ONE RANK ONE PENSION. The GOI did not accept this reccommendation and today we are still fighting to get it.

    The Pension Regulations have not been ammended and still refer to Service Pension. Therefore we are not asking for any thing new. We had Rank based pensions till as late as 1974. All that we want is Service Pension back as existing till 1974 duly updated to match current conditions of service and inflation. We need make out that we are projecting a case in consonance with the Pension regulations.
    Warm regards
    Vice Admiral Barin Ghose (Retired)
    Member Core Group IESM

    Problems of Ex-Servicemen
    Questions Tabled in Parliament
    *356. MAJ. GEN. (RETD. ) BHUWAN CHANDRA KHANDURI: Will the Minister of DEFENCE be pleased to state:
    Written Answers 50
    (a) whether the Government have received a large number of complaints regarding anomalies and lacunae in the One Time Increase (OTI) in pension to the Armed Forces pensioners;
    (b) if so, the details hereof;
    (c) whether the Government have set up any committee to review the same;
    (d) if so, its composition, terms of reference, and the time by which the report is likely to be submitted;
    (e) whether this committee would also look into the demands of the demobilized soldiers of the Second World War; and
    (f) if not, the reaction of the Government to their demands?

    THE MINISTER OF STATE IN THE MINISTRY OF DEFENCE (SHRI MALLIKARJUN): (a) to (f). A statement is attached.
    Statement
    Government have received various representations regarding anomalies in the Scheme of One Time Increase (OTI) in pension. These mainly relate to the grievances against the exclusion of certain categories such as re-employed pensioners,State Forces pensioners, and pensioners in receipt of two pensions, from eligibility to receive OTI. A Committee has been set up to examine such demands. It is headed by Additional Secretary, Ministry of Defence and includes an Additional Secretary each from the Ministry of Law, the Ministry of Finance, the Deptt. of Pension & Pensioners' Welfare; Adjutant General, Army Hqrs; Joint Secretary, Ministry of Defence; Additional Controller General of Defence
    51 Written Answers
    Accounts; AddI. Financial Adviser, Ministry of Defence; Deputy Secretary (Pens), Ministry of Defence.
    2. The terms of reference of the Committee are:
    (a) To deal with the problems/ anomalies arising from
    the implementation of the scheme for grant of One Time Increase (OTI) in pensions to Armed Forces-personnel who retired before 1.1.1986.
    (b) To work out suitable methodology to determine actual quantum of OTI to pre 1.6.1953 Armed Forces personnel who have been authorised OTI in pension as an interim measure.
    (c) To look into the problem relating to rent of OTI to State Forces pensioners; -Territorial Army pensioners; pensioners in receipt of only the disability element of pension; PAK,BURMA and HKSRA pensioners; non- regular Commissioned Officers etc.
    3. The Committee is likely to submit its report soon.
    4. Another Committee, set up to examine the remainder problems of ex-Servicemen, is dealing with the demand for provision of suitable relief to the World War veterans.
    One Time Increase- Muddle

    Existing Pension: means the basic pension inclusive of commuted portion, if any, and One Time Increase (OTI), if any, due on 31.12.1995. It covers all classes of pension including Disability pension granted under the Pension Regulations of the three services / State Forces and various other Orders issued from time to time on the subject. This also includes additional pension sanctioned to Havildar granted Honorary Rank of Naib Subedar. However, it will not include Adhoc ex-gratia payment and personal pension (PP) and unabsorbed personal pension (UPP), if any.
    Implementation of Government's decision on the recommendations of the Fifth Central Pay Commission - Rationalisation of pension of pre - 1996 pensioner / family pensioners belonging to the Armed forces.

    Comment: Bureaucratic impotence, muddle and red tape at its best. Multiple committees/ pension orders to address a simple welfare measure of ESM- gets entangled in a web of "Hollow echos of nothingness" with no material benefit to the deserving ESM! The Politicians who are clueless of ground realities beat around the bush in the Parliament. Supreme Commander has no time for her Veterans!
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