Comparing The OROP Revision Amount
Measuring Possible Outcomes Of The OROP Litigation : Officer Veterans
What follows would be a repeat of several ideas
recorded on the matter in the past. But considering the stage of finality
reached in litigation in the matter, now that the petition has finally been
represented, with a truly commendable and heroic effort on part of the
petitioners, the judgment having been reserved by the Hon’ble Supreme Court, it
may not hurt to put on record a brief gist as it would not be out of place for
armed forces veterans in all ranks to have some yardsticks for the outcome they
expect.
One main issue with the coverage of the case on social
media or blogs has been the lack of full details of all the issues sought to be
addressed in the petition. The broad points are known, of course, that:
- Implementation of OROP for older retirees should have been from the same year (in year 2013 or 2014) that the pensions of current retirees with the same rank and the same years of service had been taken into account.
- OROP for older retirees should have been fixed at
the maximum pension of retirees with the same rank and same years of
service (2013 or 2014) and not at the average of minimum and maximum
of pensions.
- Revision of OROP should have been done annually and
not at intervals of five years.
- The frequently quoted phrase that OROP should not be
“One Rank Many Pensions”.
In order to restrict any view on the subject to manageable dimensions, it may be best to take the example of a smaller subset of the veteran pensioners where uniform concepts can be applied in respect of the degree of relief that could be justifiably anticipated.
OROP for Officer veterans can be a case in point.
Here, a review of the concept of equity and parity is essential. The OROP abbreviation needs an application of mind. The implication of “One Rank”, that is talked and written about so much, needs to be understood fully. I had mentioned this in previous posts, in Tweets as well as in direct messages. It may be useful to highlight the same briefly even as we wait for the judgment.
Essentially, OROP needs to deliver parity between deferred wage of older ESM pensioners with the deferred wage of service personnel who have rendered the same amount of service and retired in a benchmark/base year (presently the year 2013).
That would sync with the well established concept of “Equal Remuneration For Equal Work”. However, there is a need for rationally establishing logical parameters that would define “same amount of service” and “equal work”.
“One Rank” when combined with “Equal Service (in years)” is a very reasonable basis for defining “Same Service” or “Equal Work” and for forming a basis for delivering pension parity in most cases.
In the case of a Col (select), for example, the
common parameters would be:
- The type of commission (eg Regular
Commission).
- The categorisation for pensions conventionally
followed based on Arm/Branch/Service [such as in the common table
for "Regular Commissioned Officers Of Army And Equivalent Ranks In
Navy And Air Force (Other Than Officers Of AMC/ADC/RVC, EC/SSC, MNS)].
- The fact of having been promoted to select rank of Col.
- The qualifying service in number of years.
In other words, OROP of a Col(select) who retired
with 25 years of service before the “benchmark/base year” (presently 2013) date of implementation viz., 01 Jul 2014, needs to be equal to the pension (the highest and not the average, as per the
petition) drawn by a Col (select) with equal service retiring in the benchmark
year. The same logic would appear to hold for higher selection based Officer
ranks of Brigadier, Maj Gen and Lt Gen.
Therefore, as all select Officer ranks in the benchmark/base year (presently 2013) have a one-to-one equivalence with select ranks of veteran Officers who had retired prior to the benchmark year, there would not be much of a problem in fixing OROP for these veteran Officers.
The problem arises, and it is a real one, when OROP is considered for ranks of Lt Col, Maj, Capt. These are now time-bound ranks and as these ranks are obtained on the basis of qualifying service and not by the common factor of promotion by selection, the actual "Rank" has to take a backseat relative to other factors required for determining what constitutes "equal work" or "same service".
Attributes of time-bound Officer ranks have changed over time. The concept has found resonance in several sections of the blogosphere that a "Major" rank of yesteryear is not the same as the "Major" rank of 2013. There was a time Major rank would be attained at a service of 14 years. In the benchmark/base year (presently 2013), Major rank is attained at a QS of 6 years. In the benchmark year Officers progress on time-bound basis to rank of Lt Col on completing a service of 11 years. How can the OROP of older pensioners in that old rank of "Major" be fixed based on "One Rank"? How can these two Major ranks, with different attributes, be considered "One Rank"? These are disparate in terms of their attributes.
The issue of "same or equal service" can't be addressed by spellings of the rank alone. The equivalence of two measures of a commodity can't be established if these are weighed on two different scales which both display the weight as "5" if the first measure is weighed in a scale that reads in Pounds Avoirdupois and the second one on a scale that reads in Kilograms.
Some far from enlightened reasoning has surfaced in recorded "wisdom", as reflected in official correspondence/Minutes of Meetings obtained through RTI by veterans actively engaged on ESM issues. In some circles, it has been actually stated that benefits in terms of enhanced remuneration resulting from cadre restructuring need not be passed on to older retirees.
Just let us consider this for a moment, if an Officer with a regular commission retired in a time-bound rank at a QS of 20 years, in benchmark year of 2013, with a pension of Rs.31305/-, then would there be any justification in fixing the pension at Rs.21530/- of an older, pre Dec 2004, Officer veteran, with a regular commission, who also retired in a time-bound rank at a QS of 20 years? Yet, OROP has been fixed in just that fashion, ignoring the "same service" of both veterans as well as completely disregarding the fact that if the former retired in the old rank of Major and the latter in the new time-bound rank of Lt Col, that forms no justifiable basis for fixing the OROP at such different levels.
The same considerations apply to OROP for older pensioners in rank of Lt Col who had completed 26 years of service. Nowadays, as in the base year of 2013, officers progress on time bound basis to rank of Col(TS).
I have seen this question repeated across several online discussions, blogs and twitter accounts, in different forms, and fully understand the relevance as to the pension of which Major retiree of base year 2013 with service with QS more than 20 years was used for determining OROP of older Maj pensioners? Why were these Maj retirees of 2013 not Lt Col? The same applies to pensions of Lt Col with more than 26 years of service.
That is why, the following blog posts may still be relevant:
- The need to recognise that parity of pensions in OROP can not be limited by the words "One Rank" as these may not really be applicable to time bound ranks. ➡ https://bit.ly/3nfEvv0
- For veterans in time-bound Officer ranks, there is a need for notionally progressing to a level of remuneration based on the distinct defining parameters that define the quantum of Service they have rendered, viz., the nature of their Commission, the grouping associated with pension fixation and their QS at retirement. Rank can only be a secondary determinant of OROP in their case. ➡ https://bit.ly/3aXotAi
Whether or not these issues found a place in the petition or will receive a consideration by Hon'ble Supreme Court would only be revealed when the judgment is available
{Addendum: They didn’t 😶}
The Case For Lt Col Pension For Old Veterans Who Retired As Major (updated with emphasis)
(Readers are requested to consider using the “share buttons” at the end of this and other blog-posts in case they feel sharing of the contents could be of interest to others affected. Contents of the post may change in case of new developments or articulation of others’ views)
If it had not been for a chance viewing of another blog some time ago, with a blog-post in it on a different topic and some comments/replies, this particular development would have been missed altogether.
The development is of the negative kind. Some may say that the curse of 16 December 2004 has struck again. But, before those affected give up on the matter as a lost cause, they could consider reviewing some past opinions on this specific issue and matters intimately related to it. Perhaps, what is required is a wider point of view rather than a narrow focus on just one rank.
The development relates to a petition filed by veterans who had retired in the rank of Major with more than 20 years of service before that date. The petition was dismissed by the Hon'ble Supreme Court of India. The petition had sought parity of the petitioners' pension with pension of Lt Col veterans who retired after 16 Dec 2004 with the same QS as the petitioners.
A copy of the judgement can be viewed on the website of the Hon'ble Supreme Court with the link placed at the end of this blog-post.
It is not known what the precise submissions of the petitioners were. Text of the judgement states the petition to be,"...for grant of pensionary and other benefits at par with the benefits which accrue as a consequence of the communication dated 21 December 2004 of the Government of India in the Ministry of Defence" and, I quote again, "....to grant pension equal to the pension of Lt. Col. by applying the principle of “equal pension for equal work” to the petitioners under the provisions of Constitution of India".
The "communication" referred to is, most probably, the one that contained the sanction for implementing, with effect from 16 December 2004, Phase-I recommendations of AV Singh Committee. In previous tribunal orders and court judgements, policy letters of year 2005 had been mentioned as the ones implementing said recommendations retrospectively from 16 Dec 2004. Till such documents are accessed, it would be imprudent to hold forth on the timeline of that "implementation".
The text of the judgement, quoted above, poses a few questions:
- Did sanction for implementing phase-I recommendations of AV Singh Committee specifically mention that older pensioners in time-bound ranks would not be entitled to parity of their pensions with those fixed for officers retiring after 16 December 2004 with the same type of commission and equal service?
- Did the petition actually seek "benefits" flowing out of the letter implementing recommendations of AVS Committee wef 16 Dec 2004 or did it seek parity with benefits of the post 16 Dec 2004 rank of Lt Col?
- Is it a matter of "application" per se? Did the petitioners seek that they be promoted retrospectively as per the 2004 order and that too at stages of their former career corresponding to lower QS for promotion than they had actually been promoted at and to be paid arrears on account of enhanced pay and earlier promotions for the years they had been service?
- Wasn’t their petition meant to seek parity of their deferred wage, to be paid in the period after 16 Dec 2004 with the deferred wage of similarly placed Officers who retired after 16 Dec 2004?
- The petitioners had served for 20 years or more as commissioned Officers. Their pension is a deferred wage based on the service they had rendered which can truly be measured only by consideration of their cadre, nature of commission and their qualifying service combined. Their ranks did not have the same attributes after 16 Dec 2004 and, therefore, can the rank be used as measure of entitlement to the deferred wage after 16 Dec 2004 or for establishing parity thereof?
- Can the quantum of their entitlement of their deferred wage vary depending on whether they retired before or after 16 Dec 2004 and can they be given a deferred wage after 16 Dec 2004 which is lower than that of similarly placed Officers retiring with the same QS in a time-bound rank with changed attributes post 16 Dec 2004?
* This may be highlighted once again, that regardless of the specific contents of the petition in question, the principle of parity of pensions for older Maj retirees would have been applicable from whatever retrospective date the recommendations of AV Singh Committee had been implemented. For this pension parity issue, the specificity of that date is immaterial except for the consideration that a disparity exists across the date between pensions of two veterans who had the same type of Commission and had the same QS and retired in time-bound ranks.* However, the selection of the date becomes much more relevant for all the Officers who were in service on the specific date the Government formed the Committee in 2001 when their status got official recognition as members of a uniform group of similarly placed Officers, all suffering from stagnation in their cadre. Is it not true that the benefit of relief from stagnation was not equally applied when the date of implementation, of recommendations of the Committee, was chosen as 16 Dec 2004?* Consider the case of a serving Major with 13 years of service in 2001, when the Committee was formed in recognition of the fact that the serving Major formed part of a homogeneous group suffering from career stagnation. He had to wait till 16 Dec 2004 to pick up the new time bound rank of Lt Col when he attained a QS of 16 years, stagnating for 3 years in the pay-scale without getting the higher pay and allowances, whereas his junior with just 13 years of service as on 16 Dec 2004 picked up the same rank without any delay, suffering no stagnation in the process.* Did these Officers, who were in service at the time of formation of AV Singh Committee in 2001, receive equitable adjustment of their ranks, in-service pay and/allowances as a result of the implementation of AV Singh Committee recommendations even if they continued to serve beyond 16 Dec 2004? But if the Officers serving in 2001 had the bad luck to retire before 16 Dec 2004, then they missed even parity in terms of pension vis-a-vis Officers with the same type of Commission and equal QS retiring after 16 Dec 2004.
* The act of selection of 16 Dec 2004 as the date for implementing phase-I recommendations of AVS Committee was, by itself, discriminatory. The act of selection of that date discriminated not only against many Officer veterans who had been in service when the committee was formed but superannuated before the implementation date but it (the selection of that date) also discriminated against Officers who continued to serve beyond that date. In-service earnings (pay and allowances) of both these sub-sets suffered disparities on account of just selection of that date. The sub-set of Officers who retired prior to date of implementation lost out in terms of parity of their pension as well.
* Regardless of the above, if pension is a deferred wage and the only rational measure of service rendered in the case of time-bound ranks are the type of commission and length of service, then, forequitableparity, pensions for time-bound ranks with the same type of commission and qualifying service would need to be the same across that date for an equitable and fair resolution. Let us not. forget, ranks are not constant standards across the cut-off date and do not serve as a just measure for ensuring parity of deferred wages as a pre 16 Dec 2004 Major or Lt Col rank is not the same as the post 16 Dec 2004 Major or Lt Col rank. The only reliable and logical basis for comparing service rendered, in the case of time-bound ranks, is the type of commission and the QS of retirees before and after the cut off date.
A Few Queries On Concordance Tables For Pensioners In Rank Of Major
The first example is the Concordance Table for the rank of Major.
The first thing for pre 2006 (I'll repeat here, 2006) Major retirees to note is that the maximum notional pay of Rs. 118100/- in the last column should, by all logic, correspond to the 7CPC pay of a Major with about 25 years of QS, even though no Officer with that QS would be in the rank of Major nowadays.
That means the highest pay of 14850/-+975/- of a Major retiree in the period 01-01-1996 to 31 Dec 2005 corresponds to the equivalent 2016 notional pay of 101900/-, which when referring to the matrix should be the pay of a Major of 2016 having a QS of about 20 years. Now those Major retirees of the period 01-01-1996 to 31 Dec 2005 who were drawing a basic pay of 14850+975 at the time of retirement can compare their own QS at retirement with the figure of 19 ~ 20 years at which their fixed "notional pay" of 101900/- would be earned by someone serving/retiring as Major in 2016 or later.
The question arises whether or not first three columns of basic pay (01/01/86 to 31/12/95, 01/01/96 to 31/12/2005 and 01/01/2006 to 31/12/2015) as well as the fourth column for "pay range from 01/01/2006 to 31/12/2015, have attempted to take into cognizance the equivalence of qualifying service rendered by retirees in that time-bound rank in the three distinct time-frames mentioned above. At first glance, it does not appear to be the case.
Pension Fixation Based On Notional Progression (Cont'd) : OROP
{Edit}: A little clarification appears in order. The notional progression as suggested in the table needs to be governed by some constraints.
Notional pay, hence pension, of an older retiree in a certain rank must progress to the level suggested in the table provided currently serving Officers in the older retirees' cadre and with the same type of commission progress on basis of time, i.e. length of service alone, to the higher level as shown.
The progression would, by and large, be applicable up to the rank of Major in most types of commission. But progression to the notional level of current level of Lt Col at service of 13 years may exclude those types of commissions with which Officers do not currently progress automatically to rank of Lt Col at a service of 13 years.
Similarly, notional progression to pay, hence pension, of Col(TS) at a QS of 26 years, as suggested in the table, would be justified for those types of commission with which Officers currently get the rank of Col(TS) after completing a service of 26 years.
Some Notions Of Progression For Pension Fixation
A critical and basic requirement for the validity of such a downward-sideways progression is, if the older pensioner had been in service after 16 Dec 2004, would he or would he not have been eligible, based on the QS in the extreme left column, for time-based progression to the next higher level shown in the progression path in the table. If the answer to that is in the affirmative, then fixing his pension in the lower pay-band would be a straight-forward case of discrimination.
Even though implementation of 7 CPC pay fixation is reportedly being held in abeyance, the principles of pension parity, as illustrated in the following table, would still be valid regardless of any enhancements in pay levels that might come about):
A Straight Forward Set Of Pension Parity "Equations" For 7 CPC : Maj, Lt Col, Col(TS) Pensions {Pre Dec 2004 Retirees}
|
{Update: With recent, May 2017, amendments to IOR (multiplication factors), the figures displayed in different “levels”
Pay
Band Ã
|
15600-39100
|
37400-67000
|
|
Grade
Pay -Ã
|
6600
|
8000
|
8800
|
Level
–>
|
11
|
12A
|
13
|
1
|
69400
|
121200
|
130600
|
2
|
71500
|
124800
|
134500
|
3
|
73600
|
128500
|
138500
|
4
|
75800
|
132400
|
142700
|
5
|
78100
|
136400
|
147000
|
6
|
80400
|
140500
|
151400
|
7
|
82800
|
144700
|
155900
|
8
|
85300
|
149000
|
160600
|
9
|
87900
|
153500
|
165400
|
10
|
90500
|
158100
|
170400
|
11
|
93200
|
162800
|
175500
|
12
|
96000
|
167700
|
180800
|
13
|
98900
|
172700
|
186200
|
14
|
101900
|
177900
|
191800
|
15
|
105000
|
183200
|
197600
|
16
|
108200
|
188700
|
203500
|
17
|
111400
|
194400
|
209600
|
18
|
114700
|
200200
|
215900
|
19
|
118100
|
206200
|
|
20
|
121600
|
212400
|
|
125200
|
|||
129000
|
|||
132900
|
|||
136900
|
Pay Band
|
15600-39100
|
37400-67000
|
|||||
Grade Pay
|
6600
|
8000
|
8700
|
||||
Entry Pay (EP)
|
25980
|
45400
|
48900
|
||||
Level
|
11
|
12A
|
13
|
||||
Qualifying Service
|
Increment
Stage | Increment Stage | Increment Stage | ||||
6
|
1
|
69400
|
|||||
7
|
2
|
71500
|
|||||
8
|
3
|
73600
|
|||||
9
|
4
|
75800
|
|||||
10
|
5
|
78100
|
|||||
11
|
6
|
80400
|
|||||
12
|
7
|
82800
|
|||||
13
|
8
|
1
|
121200 ✓
|
||||
14
|
9
|
2
|
124800
|
||||
15
|
10
|
3
|
128500
|
1
|
130600
|
||
16
|
11
|
4
|
132400
|
2
|
134500
|
||
17
|
12
|
5
|
136400
|
3
|
138500
|
||
18
|
13
|
6
|
140500
|
4
|
142700
|
||
19
|
14
|
7
|
144700
|
5
|
147000
|
||
20
|
15
|
8
|
149000
|
6
|
151400
|
||
21
|
16
|
9
|
153500
|
7
|
155900
|
||
22
|
17
|
10
|
158100
|
8
|
160600
|
||
23
|
18
|
11
|
162800
|
9
|
165400
|
||
24
|
19
|
12
|
167700
|
10
|
170400
|
||
25
|
20
|
13
|
172700
|
11
|
175500
|
||
26
|
21
|
14
|
12
|
180800
|
|||
27
|
22
|
15
|
13
|
186200
|
|||
28
|
23
|
16
|
14
|
191800
|
|||
29
|
24
|
17
|
15
|
197600
|
|||
30
|
18
|
16
|
203500
|
||||
31
|
19
|
17
|
209600✓
|
||||
32
|
20
|
18
|
215900
|
||||
33
|
19
|
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{Edit: The contents of this blog post have been cut and pasted on this Yahoo! Group Post of a group located at Bangalore without my per...
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{ Edit : 16Apr2017: It is gratifying to know this blog-post continues to draw views and interest almost five years after it was published. ...
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It increasingly appears that OROP may not turn out to be a simple issue as far as implementation goes. My personal view gets firmer in my m...