Monday, September 14, 2015

#OROP - HOW LONG WE CHOOSE TO REMAIN AS BUNCH OF FOOLS?


HOW LONG WE CHOOSE TO REMAIN AS BUNCH OF FOOLS?
Dear Sir,
               My apprehension that all faujis have been paid less pension even after 24 Sep 2012 all along has been proved correct.

               You have two choices.

               Choice 1. Read this long mail of mine and understand how Govt of India has robbed you of your entitled pension w.e.f 24 Sep 2012 telling you they improved your pensions like nobody did so far.

               Choice 2.  Press DELETE button. Gulp your large whisky with soda. Choice is entirely yours.

               The judgments have to be read, re-read and re-re-read to understand subtle nuances. Since we abhor such careful study and drown our sorrows in two large whisky with soda, we remain what we are and where we are.

               When this wonderful judgment is there, where is the need for agitation for OROP? 

               We don’t read wonderful judgments delivered on our pay, promotions & pensions and do not challenge the Govt of India when injustice after injustice is heaped on us. We naïvely believe that our Mai Bap Sarkar will look after our interests and we should look after Nation’s interests. In the meantime, the bureaucrats improve their salaries and go laughing all the way to their banks.

               I am quoting three relevant paras of Judgment of hon'ble Supreme Court of famous Maj Gen SPS Vains Vs UOI delivered on 09 Sep 2008 (By Justice Markendaya Katju whom I admire a lot) & Justice Altmas Kabir) to make you understand hon’ble Supreme Court has mandated that all pre – 1996 Maj Gens irrespective of date of retirement have to be given the same pension as post – 1996 Maj Gens. Is it not OROP?

               If any one intelligent guy (after Maj AK Dhanapalan and RDOA who got us Rank pay arrears, all of us including myself have gone to sleep) would have gone to AFTs immediately in 2008 requesting similar benefit be given to Capts to Brigs quoting this judgment, he would have done all of us some good.
               After reading my longish mail you will realise there was no need for us to organise RHS and FUD at Jantar Mantar, Delhi.
               What we should have done is go to AFTs all over India and demanded that judgment of Maj Gen SPS Vains Vs UOI be applied to all ranks.

               Now our tiny organisation in Hyderabad known as Tri Services Ex-Servicemen Welfare Associaton (TSEWA) has decided to file a case in AFT Chennai as we come under its jurisdiction. We shall do so after seeing the judgment of hon’ble Supreme Court in a case filed by 52 Maj Gens or equivalents Vs Union of India and the judgment is likely to be delivered by 28 Sep 2015.
  
               Let me take Para 24 of the ibid judgment and explain to you (I am not a law graduate) how this judgment of Maj Gens is equally applicable to us with illustrations.

24. The said decision of the Central Government does not address the problem of a disparity having created within the same class so that two officers both retiring as Major Generals, one prior to 1.1.1996 and the other after 1.1.1996, would get two different amounts of pension. While the officers who retired prior to 1.1.1996 would now get the same pension as payable to a Brigadier on account of the stepping up of pension in keeping with the Fundamental Rules, the other set of Major Generals who retired after 1.1.1996 will get a higher amount of pension since they would be entitled to the benefit of the revision of pay scales after 1.1.1996.
25. In our view, it would be arbitrary to allow such a situation to continue since the same also offends the provisions of Article 14 of the Constitution.
               You need to relate the above para to our various ranks. Since Colonel is the rank in which all officers will retire after 16 Dec 2004, let us take their case. The above para of judgment says Maj Gens who retire prior to 5thCPC and post 5th CPC have to be given the same pension by refixing pay of pre – 1996 Maj Gens notionally and accordingly fix their pension so that at no stage a Brig post 1996 will get pension more than a Maj Gen.

               How do you do for Col?

               Here is the table of 6th CPC. We have to prove to AFTs that present pension system where in a Colonel in spite of putting 14 years as Colonel (age of superannuation 54 – age at the time of commission 20 = 14 years) or lesser service is being given pension of Rs 27,795 which is equivalent to a post – 2006 Colonel who has put in less than one year service. We have to compare pay & pension of Lt Cols and prove that their pay hence pensions post 2006 is more than that of pre – 2006 Colonel.

               Pl read the above sentence second time.

               If we can do it, Sir, we have won the case. The courts go by principles. What principles apply to Maj Gens equally apply to all ranks right from Sep to Maj Gen.
Pay scale of Col in 5th CPC : Rs 15100 – 450 – 17350 and Rank Pay of Rs 2000
SER NO
BASIC PAY IN 5TH CPC
PAY IN PAY BAND IN 6THCPC
GRADE PAY
MSP
TOTAL PAY
PENSION
1
15100
40890
8700
6000
55590
27795
2
15550
42120
8700
6000
56820
28410
3
16000
42120
8700
6000
56820
28410
4
16450
43390
8700
6000
58090
29045
5
16900
43390
8700
6000
58090
29045
6
17350(Top of Scale)
44700
8700
6000
59400
29700
7
17800 (Stagnation)
44700
8700
6000
59400
29700
8
18250
46050
8700
6000
60750
30375
9
18700
46050
8700
6000
60750
30375
              
               I will make another table for Lt Cols and show you how pre – 2006 Colonels have been taken for a ride by paying lower pensions and proclaim to the world that their pensions have been improved w.e.f. 24 Sep 2012.
Pay Scale of Lt Col in 5th CPC: 13,500 – 400 – 17,100
SER NO
BASIC PAY IN 5TH CPC
PAY IN PAY BAND IN 6TH CPC
GRADE PAY
MSP
TOTAL PAY
PENSION
1
13500
38530
8000
6000
52530
26,265
2
13900
38530
8000
6000
52530
26265
3
14300
39690
8000
6000
53690
26845
4
14700
39690
8000
6000
53690
26845
5
15100
40890
8000
6000
54890
27445
6
15500
40890
8000
6000
54890
27445
7
15900
42120
8000
6000
56120
28,060 higher than pension of of pre – 2006 Colonel which is only Rs 27795
8
16300
42120
8000
6000
56120
28060
9
16700
43390
8000
6000
57390
28695
10
17100 (Top of scale)
43390
8000
6000
57390
28695
11
17500
44700
8000
6000
58700
29350
12
17900
44700
8000
6000
58700
29350
13
18300
46050
8000
6000
60050
30025
               If you see carefully pension of post – 2006 Lt Col (in Red colour in above table) is more than that of pre – 2006 Colonel (Rs 27,795) violating judgment of hon’ble Supreme Court.

               How much then a pre – 2006 Colonel should get w.e.f. Jann 2006?

               For this go through para 31 of ibid judgment.

31. We, accordingly, dismiss the appeal and modify the order of the High Court by directing that the pay of all pensioners in the rank of Major General and its equivalent rank in the two other Wings of the Defence Services be notionally fixed at the rate given to similar officers of the same rank after the revision of pay scales with effect from 1.1.1996, and, thereafter, to compute their pensionary benefits on such basis with prospective effect from the date of filing of the writ petition and to pay them the difference within three months from date with interest at 10% per annum. The respondents will not be entitled to payment on account of increased pension from prior to the date of filing of the writ petition.
               What does the judgment say if you relate to our case ?

               Fix pay of pre – 2006 Colonel notionally at the rate given to similar officers (post – 2006 Colonels) after the revision of pay scales with effect from 1.1.2006.

               What does it mean?

               If you are a pre – 2006 Colonel whose basic pay in 5th CPC is say Rs 16,900 then your notional pay as on 01 Jan 2006 is Rs 58,090 and your pension is therefore Rs 29,045 and not Rs 27795  what you are drawing now.

               Samaj Mein Aagaya Sirjee?

               Similarly see the table for Colonels. See your PPO and find out what was your basic pay at the time of your retirement, go horizontally and find your notional pay as on Jan 2006 and find your pension which should be more than Rs 27,795.
               Now you have two more choices.  
    
               Choice I. Form a group of all pre – 2006 Officers from the rank of Capt to Brig in the area of jurisdiction of your AFT. For AFT Mumbai you have to reside in the states of Maharashtra, Goa and Gujarat. Find a good and reliable ESM Advocate who practices in your AFT and negotiate with him for his fees. More the number of litigants per head cost comes down. Analyse whether the same applies to JCOs and OR (Pl do not tell me to do it for you. I am very tired after so many ESM activities). Then number of litigants will be in thousands and your advocate can earn enough moolah for rest of his life. He will also ask for share of your arrears you are to get from Jan 2006 to 23 Sep 2012. Can you imagine how much money your advocate will earn?

                Choice 2.  Become a member of TSEWA. Get a temporary address either in Telangana or A.P or Tamilnadu. I am sure you have number of relatives in any of these states. We will include you in our list of litigants. We will negotiate with our advocate and get the lowest legal fees per head.
               I am quite confident that if a principle is for Maj Gens, then the same principle will be applied to Capts to Brigs pre – 2006.

               You have two more choices if you are in Northern India.
                Choice 1. Go and spend your time in Jantar Mantar, cheer those who are in RHS, put your hard earned money in donation boxes kept there, help IESM fill their coffers as much as Bill Gates has acquired his wealth.
               Choice 2. Move around and inform similarly placed officers from Capt to Brig. Get them together. Find a good Advocate and file a case in AFT Principal bench, New Delhi. If this judgment can get you OROP then what is this revision once in 5 years, Average of Maximum and Minimum and such a non-sense?

               Govt of India, Ministry of Def have already enhanced pensions of 52 Maj Gens i.e.OROP by a simple judgment of AFT Chandigarh.

               Will you not get it?

               Choice is entirely yours.
               My profound thanks to Cdr Chandrashekhar (Retd) of JAG Branch of Navy who opened my eyes. We foolishly observed Relay Hunger Strike in Hyderabad from 01 to 06 Sep 2015 instead of reading this wonderful judgment of hon’ble Supreme Court, discussed it threadbare like we did today and firmed up our plans.

               DHER HAIN LEKIN DHRUST  HAI.

               All staunch supporters of IESM will say AUR EK JAYACHAND SECUNDERABAD MEIN HAI
Regards,
Brig CS Vidyasagar (Retd)
9493191380

Sunday, September 13, 2015

#OROP What the families have to say



#OROP      A analysis by Air Mshl Savur.......
One Rank One Pension (OROP) – Satyam Ev jayate
(Will Truth Prevail?)

Some one who has the ears, eyes and trust, mark the word, trust, some where in the byzantine maze of South and North Blocks, must be laughing about the briefs prepared for the Raksha Mantri (RM) and Prime Minister (Pradhan Mantri, Pradhan Sevak and, of course, Pradhan Santri)  on OROP and recalling Thomas A Edison’s words, “I have not failed. I've just found 10,000 ways that won't work.” How else can the learned RM read out on OROP something prepared by ‘someone’ on 5th and, more seriously, the notes for the PM’s ex-tempore public address on 6th September 2015 contain factual errors (gaffe for us lesser Indians)?

OROP – The Origin 

          The first fact those ‘some one’ did not disclose to the RM & also the PM is that the OROP issue first came to the conscious knowledge of the Public, the Governments, and Ex-Servicemen (ESM) not 68 years ago (in 1947), not 42 years ago (in 1973), but actually 35 years ago (in 1980-81) when the Estimates Committee on Resettlement of ESM noticed the disparity in pensions of pensioners of Armed Forces retiring in different Central Pay Commission (CPC) regimes. 

Then a torturous process of righting the wrong started.

          In 1984, Shri K P Singh Deo, the MoS, MoD (Congress Government), chaired a High Level Empowered Committee, which recommended that the 4th CPC should consider the matter in line with the principle of pensions of Judges of the High Courts and the Supreme Court. The 4th CPC did not make any observation or recommendation.       

          It was followed in 1991 when a High Level Empowered Committee headed by then RM (Congress Govt) Shri Sharad Pawar did not recommend OROP but recommended a one time increase for ORs, JCOs, Honorary Commissioned Officers, and Officers below the rank of Colonels and equivalents.

          In 1994-97, the 5th CPC considered OROP but did not recommend it but the CPC did recommend full parity for personnel who had retired before 1986 and notional parity for those who retired after 1986.

          It was followed by, in 2003 when the first BJP Govt constituted an Inter-Ministerial Committee, serviced by Deptt of Pensions and Pensioners Welfare (DP & PW). The Committee submitted its report in Sep 2004 (UPA-I Govt) but the Ministry of Finance rejected (déjà vu?) it stating that it was not in consonance with the 5th CPC recommendations and termed it as “a side door entry” for OROP.

          From 2005 to 2011, OROP was rejected by or not decided upon by different Ministries and Committees of Secretaries till on 19th December 2011, the Bhagat Singh Koshiyari Committee recommended OROP and even defined OROP.      

          After the Koshiyari Committee came the Prime Minister constituted Cabinet Secretary  Committee in July 2012, which submitted its report in August 2012 that OROP is not viable, financially, administratively or legally and recommended passing the OROP baby and the hot water to the 7th Central Pay Commission to consider it “holistically.”

          However, perhaps driven by the oratory of the PM-Candidate and the frenzy that ensued, the UPA Govt declared its intent of implemented OROP in the Interim Budget 2014-15.   
  
Assessment by the Koshiyari Committee and…..

          Let us now walk across the figures that ubiquitous ‘some one’ supplied to the Prime Minister, which he mentioned in his speech on 6th September 2015.      

The estimated financial impact of implementing OROP was estimated by the Koshiyari Committee was Rs 1300 crore if implemented in 2011-12 (Para 11 of the Report) and not Rs 300 crore. The Koshiyari Committee recommended Rs 1300 crore in 2011-12, and the breakdown as Rs 1065 crore for PBOR pensioners and Rs 235 crore for officer pensioners. The Committee also estimated that outlay for OROP would increase at 10% annually , so contrary to what the esteemed FM states, the annual increase is not the figment of greedy imaginations of ESM but a fact recommended by a Parliamentary Committee. 

In Para 11.1, the Committee noted and recorded “it is heartening to note that the Govt has ….spent Rs 2200 crore for the purpose of meeting the grievance of defence pensioners. The net result is that while the demand for OROP stands almost met in the case of PBOR, the officers’ category remains much behind the target…” This also substantiates the enhancement/improvement in pensions on 17th January 2013! 

A prior reading of the observations by the Committee at Para 11 would have been very illuminating for those who prepared the notes for the PM, the RM and, those Cassandras who advance the bogey of others demanding OROP or India facing a problem like Greece. But that Greece bit is for another day.

…..Only Rs 500 crore set aside by the UPA

The third fact omitted by that ubiquitous ‘some one’ is that speeches and pitch of the ‘candidate for PM’ starting from September 2013, might have compelled the UPA Govt to open the OROP box by including it in the Interim Budget statement on the floor of Lok Sabha on 17th February 2014, and setting aside Rs 500 crore Interim Budget 2014-15. 

Omitted from the notes for the PM was the truth that UPA’s Defence Minister and the Finance Minister (FM) stated that “Rs 500 crore was just a token amount and more would be forthcoming as soon as the amount could be worked out.”  

This also was reiterated by then Defence Minister in his letter to Shri Rajeev Chandrasekar vide MoD ID No. 12(1)/2014-D (Pen/Pol) dated 26th February 2014. 

            It appears that the Prime Minister was not informed/reminded  by that ‘some one’ that Shri Jaitley, our learned FM in the NDA/BJP Govt, went one better, setting aside an additional Rs 1000 crore for OROP and the reading of the Budget (indiabudget.nic.in/ub2015-16/eb/sbe22.pdf). May be the Gujarat cadre loaded PMO did not understand the Dilli durbar to ask relevant questions when preparing notes for the PM’s speech of 6th September 2015. 

            Or, may be, the revelation would have taken the sheen off UPA bashing!

Definition of OROP & Methodology for implementation

Curiously, the ID of 26th February 2014 also contained the definition of OROP. This definition was reproduced verbatim by the RM in his preface to the “Yes, we have given OROP” speech on 5thSeptember 2015.  

To take the OROP forward, Shri A K Antony constituted a Joint Working Group (JWG) about two months (24th April 2014 to be exact) after the announcement in the Interim Budget 2014, even beseeching the CGDA to be “considerate.”  

The chairperson of the JWG was then CGDA, later promoted to Secretary & Financial Adviser in the MoD. Members of the JWG were from the MoD’s Deptt of Ex-Servicemen Welfare, Defence/Finance, and representatives from Service HQ (Chairmen of the Army, Navy and Air Force Pay Commission Cells and a few officers). But there was no representation from ESM organisations, though they could be consulted if Service HQ so decided, as stated in the ibid ID.  

The first meeting of the JWG was convened on 2nd May 2014 in the office of the CGDA, recorded by the O/o CGDA that “As future enhancements have to be automatically passed on to the pensioners, Services proposal for incremental increase in pension on 1st July every year shall be considered.”  

Chairman of Pay & Remuneration Committee (PARC) and also Chairman, Naval Pay Commission cell, being the senior-most from the Services at that meeting, scored out, repeat scored out the words incremental increase in pension on 1st July every year, shall” and substituted with “annual revision of OROP tables should be considered.”      

In his Action Taken report (on the Budget of 2014-15) and in the Budget speech of 28th February 2015, Shri Jaitley reported having held a meeting with the Defence Secretary, Secretary (ESW), Secretary (Defence/Finance), and CGDA on the implementation of OROP on 26th August 2014. He added, “The modalities are under consideration” (source: indiabudget.nic.in). Curiously again, neither the Services HQ nor the ESM were part of the confabulations. They could have contributed facts and figures that now place the Government in a different light than “I love the Army men, so….” oratory.    

A dispassionate but intelligent perusal of calculations by Service HQ would have shown that up to the rank of Major (and equivalents) that are in service will have lower pay in April 2014 than, say, April 2007. Similarly, in higher ranks there is no guarantee that a Colonel with 28 years service in Apr 2014 will draw a lower pay and pension than a Colonel in the 28th year completed in Apr 2015 or Apr 2016, simply due to the fact of higher fixation to the 2014 retiree in January 2006.

  Why the Annual Revision of OROP tables

          A perusal of the Koshiyari Committee Report brings out some aspects that will give a more rounded, and less strident, demand and rejection of the Annual or even a Bi-Annual Revision.

At Para 6.4 of the Report, the Army’s representative agrees that a 5 yearly review is agreeable. At Para 6.5 of the Report the Air Force’s representative concurs with this 5 yearly review. At Para 6.6 of the Report, the Navy’s representative is silent.

At Para 7 of the Report one will see a more comprehensive statement from the Deptt of Expenditure (MoF).

The DoE places the initial estimate in 2011-12 at Rs 1300 crore and projects a 10% annual increase to Rs 1430 crore in 2012-13, Rs 1573 crore in 2013-14, Rs 1730 crore in 2014-15, Rs 1903 crore in 2015-16 and a 25% increase to Rs 2379 crore in 2016-17 due to the 7th Pay Commission’s recommendations.

At Para 8 the DP & PW  projects the demands from others but is silent on the estimate while the Cabinet Secretariat projects an amount of Rs 8000 crore to Rs 9000 crore. 

In fact most cells in the OROP tables in the Draft Government Letter (DGL) prepared by Service        HQ in April 2014 would not have changed every year except for cases like the following: -    

Firstly, Col/Nb Sub/Hav ‘A’, with 30 years service, whose birth date is 15 June will retire on 30thJune 2015 and be denied an increment of 3% which falls due on 1st July every year. Col/Nb Sub/Hav ‘B’, also with 30 years service, but whose birth date is 7th July will retire on 31st July 2015 and get an increment of 3% and therefore a higher pension. 

Shouldn’t Col/Nb Sub/Hav ‘A’ also get the same pension as Col/Nb Sub/Hav ‘B’, both having served for 30 years and retired just a month apart in year 2015? It will not happen to others who might retire after 1st July 2015 because they will be in receipt of the increment.

Secondly, on 16th December 2004, the Ajai Vikram Singh Committee recommendations were implemented and time frames for promotions up to the rank of Colonel were reduced drastically. But there were promotees with 18 years of service who were promoted to rank of Major or Lt Col before 15th December 2004. Their pensions will be to be rationalised because an officer with lesser number of years of service cannot, by the Govt’s Fundamental Rules, draw more pay than an officer with higher years of service. This is also the crux of the Apex Court’s judgment in Maj Gen S P S Vains (retd) Vs UoI.

Thirdly, a sepoy is paid Rs 7065 as pension if he has service between 20 and 27 years. But a sepoy who serves 27.5 years (a rarity) is paid a pension of Rs 7175. Shouldn’t the pension tables be rationalised so that all with 27 years of service draw the same pension and the next slab should be at 28 years instead of the half year?

          What would be the financial effect? Would we have a Greece like situation as some trolls, and even a learned managing editor of a financial periodical state? 

The financial effect was calculated to be about Rs 185 crore in the first year and would reduce every subsequent year because all pensioners would reach the top of the pension table in 5 years, if the 7th CPC did not change the methodology!     

Any one with the Higher Secondary School standard of knowledge of computers would have correctly briefed the Defence Minister (an IIT alumni) and the PM who has dealt with many a budget in his 12 years as CM of Gujarat.

And the VRS Issue

          This aspect was never discussed openly nor disclosed (for a Govt that maintains transparency as one of its virtues). Any knowledgeable persons amongst 125 crore Indians, let alone the RM, would be chagrined that the Armed Forces do not have VRS i.e a Golden Handshake where a lump sum is given and matter is closed. 

The some one who prepared the brief/notes would have been more anxious that the RM & PM should not be told about nor read the Defence Services Regulations 2008, Army Pensions Rules – 2008, for only then, in an otherwise moment of generosity, the RM let Mr Scrooge prevail by denying OROP to those personnel (about 40% to 50%) who have opted out on PR from Service. 

Defence Services Regulations, Army Pension Rules, Chapter VII, Section 5 define the types of pensions (pensions on PR are not mentioned) and Section 9 gives the legal status for withholding, suspending or discontinuing pensions. It can only be because, while in service the Serviceman committed an act construed as waging war against the Government of India or of a conspiracy to wage war against the Government of India and punishable under Section 121 of the IPC.  

Didn’t the Chiefs or the Defence Secretary, who had places at the high table, know? Or just like on 26th August 2014, the Chiefs were kept in the dark till that dark hour of 3 pm on 05 Sep 2015.
Finally, if the PR personnel are denied OROP, then the Prime Minister would deny OROP to between 40% and 50% of ESM and to many whose wives would be widowed in subsequent years.  

By denying OROP to PR personnel, the financial impact, first time and subsequent, will be half of Rs 8300 crore or Rs 10000 crore or Rs 12000 crore.

In Conclusion

In conclusion the Prime Minister has kept his word to implement OROP. But some one in his Government has found the myriad ways to ensure OROP as defined by the Koshiyari Committee and approved by Parliament in March 2014 and July 2015 will not work. 

Therefore, it is difficult not to recall the words of Thomas A. Edison, “I have not failed. I've just found 10,000 ways that won't work.” Will those words be carved on the tombstone of this Government’s commitment to OROP?  

Satyam Ev Jayate?