Showing posts with label nffu. Show all posts
Showing posts with label nffu. Show all posts

Current Speculations On The Recommendations Of Government Panel On Armed Forces Pay Anomalies

 



With recent news trickling in on the latest Government view-point on OROP and NFFU, a list of probable scenarios can be drawn up, viz.,
*The proposal for OROP would not be accepted.
*NFFU would be introduced for serving Officers.
*Modified Parity would be the basis of enhancing pensions of past  (preVI CPC) retirees.
*New pay bands would be created rank wise for fixing pensions.
This leads to the very basic, fundamental and principle-based consideration that lies at the core of the OROP matter. In other words, litmus-test questions, based on two primary considerations of truncated careers and intra-veteran-parity, can be posed for establishing the validity of such a readjustment of pensions, as follows:
*Would the truncation of careers of armed forces personnel vis-a-vis those of equivalent civilian employees be compensated for in terms of pensionary benefits? A very basic, rule of the thumb yardstick for comparison would be whether the pension of a person in the armed forces retiring today at age 50 equal, ten years later, the pension of an equivalent civilian employee, who had joined at the same time as the armed forces retiree, the civilian retiring 10 years later at age 60 years?
*Would the pensionary benefits of a person retiring in the armed forces today at age 50 years have appropriate compensation for the shortfall in the pension he’d draw over the next 10 years as compared to the pay and allowances the equivalent civilian employee would be drawing over the same period? This compensation would, of course, not be required if the person from the armed forces was absorbed in a Government civilian post for the said period.
*Though one rank one pension may not have been agreed to, for some manner of parity, or modified parity, within the set of retired personnel of the armed forces, would the re-fixation of the pension of pre VI CPC retirees take place in:
                **Pay-band of the rank in which the veteran retired?
**Pay-band of the rank the retiree would have automatically attained under present rules merely on the basis of the length of his service? Example: A pre VI CPC retiree in rank of Major (PC) with more than 20 years of service would have been automatically in the Pay-band of Lt Col now.
**Pay-band of the rank the retiree would have been placed in based on the length of his service AND after application of NFFU? Example: A pre VI CPC AND pre AVS-I retiree in the rank of Lt Col (TS) with 30 years of service would have been in the pay-band of Col (TS) without NFFU and Brig with NFFU.
Another yardstick for checking the rational basis of the rejigged pensions would be the enhancement factor for the pension of an Honorary Officer or, say, a Branch Commissioned Officer of IAF, who suffer negligible truncation of career, as compared to the enhancement factor applied to the pension of an Officer with a Permanent Commission who might have retired at age 52 in the rank of Lt Col or a non-commissioned Officer retiring at an even younger age. This is not to say a Hony Officer or an IAF BC Officer should not have an enhancement in pensions, but the factor for truncation needs to be proportionally higher for those retiring at earlier ages.



Inputs for arriving at basic assumptions for the foregoing were provided by the contents and comments on this ---> valuable blog post


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