Showing posts with label iesm. Show all posts
Showing posts with label iesm. Show all posts

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”.
What is not very clear at present is whether or not the petition also sought to get a resolution of other glaring anomalies of OROP implementation. It would also not be wise to speculate whether all dimensions of parity and equity in OROP implementation would be taken into account by the Hon’ble Supreme Court if these did not form part of the Petition. 

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 😶}

 

Table Time, Again!

A recent statement in news media by a representative of IESM threw some light on thinking on the ESM associations' and, probably the Government's approach to calculating OROP pensions for older retirees.

The rep spoke of asking for fixation at top of pay band rather than based on the average of the pay band. This makes me feel that the old manner of pension fixation across CPCs, through fitment tables and then fixing minima on older pensions, still governs reasoning on OROP. To my mind a radically new approach is required as OROP is a totally different paradigm.

The statement of IESM rep gives rise to several questions:

*If the OROP pension is to be based on the average of pensions for a rank in the base year, which in turn, as per inference drawn from the statement, is to be calculated on the average of pay (for that specific rank) in the pay band, then how would the element of years of service be taken into account? Let us not forget, post 2006, there is no pro-rata reduction in pension. If we calculate on the basis of the average of  pay in pay band for a particular rank, the pension will be the same regardless of number of years of service (from 20 to 33). Also, as the pay band remains constant, the average of pay in the pay-band remains constant. So how is it expected to increase from year to year for which an annual review is being sought?

*The same logic would apply even if top of the pay in pay band was used. How would variation in number of years of service  and variation from year to year be accommodated in such a pay-band based pension calculation?

*Are we to infer that top of the pay-band would have been reached in the base-year for someone with a certain number of years of service? This is another way of asking the same old question as to what is the average of pensions? Average of pensions actually paid in base year or of pensions based on pay in pay band? Or are they going to see the highest pay and the lowest pay drawn by a certain rank with a certain number of years of service, even if not retiring in the base year, and then calculate the average pension for that "rank_years of service" combination?

Now, regardless of the way they decide to calculate the OROP pension, there are rough indications available how it would impact pensions after OROP is implemented. Firstly, let us go back to the GOI letter of 2008 that spelt out how pensions would first be consolidated. Would that be the case here? Considering it is the pension in the base year that is to be a benchmark for earlier pensions, there is a need to skip the consolidation bit. Let us not forget it is not a transition from one CPC to another. The only parallel could be the application of the minima to older pensions. Here the ESM rep's statement and the Govt statement appear to suggest that instead of the minimum of pay in payband specified in 2008, as embedded below, it will be the "average" pension in base year based on average of pay in pay band.

Min of Pay In Pay Band Stipulation : GOI Letter Of 2008


 

PCDA circular 500 described this manner of fixing the minimum pension as modified parity as shown here :


 

Whether or not that will be the manner in which OROP pensions will be calculated remains to be seen. But it is not difficult to generate figures based on pay in pay band considerations and arrive at different, purely hypothetical, figures for OROP for some relative comparisons as shown in the following table :


 


Even with these hypothetical figures, it is easy to see how the enhancement in pensions could vary from one manner of fixation to another. The actual amounts may differ but the range of variation in percentages could be in the same region.


 
The above, purely speculative, exercise can only serve to indicate what other surprises may be in store. It may not be out of place for the Government and ESM Associations to bring everyone on board by sharing the precise modalities that the OROP implementation letter is to be based on. Perhaps inviting feedback in a transparent manner could resolve issues faster than keeping the cards close to their chests.

From Contours To Vague Outlines


It has been more than one year since an attempt was made by me to list out the various possible shapes of this entity called OROP, given all the options floating about in the air at the time. It was a kind of an abstract, admittedly half-baked, exercise in imagineering.

A lot of water has flown under the OROP bridge since then. It would be uncharitable to say that we are nowhere closer to knowing what OROP will be after all the recent sloganeering, fasting and shouting coupled with some very true to norm lack-of-clarity from the powers that be.

We do know a few things now that were shrouded in mists of uncertainty back then. These are:

*Under OROP, pensions of older retirees would be bench-marked to "average of minimum and maximum pension in 2013".

*The pensions would be reviewed after five years.

Did I mention a "few things"? Well, no, sorry, two actually, if you can call that "knowing", considering the text of the statement holds more vagueness than what we started out with.

I have already outlined all my doubts over this "average business".

The strangest thing is how ESM Associations so visibly, not to forget, vocally in the forefront of the most recent episodes of the agitation, have been seen to be very reluctant to part with details, as if they were almost in competition with the Government in keeping a tight lid on what exactly they are negotiating for and what in their view should be the nuts and bolts of the final OROP paradigm.

The DGL attributed to some sections within the Services HQs hierarchy, un-authenticated, of course, had more to say on the subject than the hundreds of TV interviews with the leading lights, and their support structure, of the "movement" have yielded. Apart from what they have vociferously "rejected".

An interesting example is a recent news item. The ESM representative, while voicing his concern for a pre 2006 retiree in Major rank has simply glossed over the fact that the parity point of the Major retiree may not be the "highest pension" that the ESM association's valiant efforts are directed towards but to a much higher level keeping in view the Major's years in service and the current rank a retiree would automatically attain with the same service.

The ESM representative also does not mention that the "highest pay" for a current Major would probably correspond to a length of service much less than the older Major retiree would have put in, hence, in effect dooming his chances by voicing the opinion that the retirees' pension should be at the maximum of the current scale. I would be the happiest person to be informed that my misgivings are misplaced and based on ignorance. But I'd like to know what would be the factual reason for such information coming my way. 



Arising from that news item, the simplest query to the member of Governing Body and Pension Cell of IESM in that report, would be which Officer with Major rank retired with pensionable service of 20 years in the base year 2013, or the year 2014_15 mentioned by the IESM member, and what was his pension?

The tables with PCDA circular 500 state the pension of a pre 2006 Major retiree is Rs 15447/- to Rs. 17930/- from years of service 20 to 24.5 and is constant at Rs.18205 from years of service 25 onwards as against the figure of Rs.19205/- as quoted in the article. What IESM need to clarify is how will they find Majors retiring with the same years of service in base year 2013 or in 2014-15, forget about bench-marking pensions of older retirees with these "imaginary" post 2006 Major retirees?

This is just an isolated question on the subject, but it does reflect, if not the opaqueness then certainly the translucence of the manner in which information is being shared with stake holders.