Basis For Fixation Of Pension : Length Of Service Vis-A-Vis Rank

Post VI CPC, most of the adjustments, corrections and rationalisations that the authorities found the need to incorporate in the original awards have already been put into place.

However, the matter of parity of pensions on the basis of length of service rendered continues to remain unaddressed.

At a few times in the past decades, the minimum service required to attain time-bound elevation to the next higher, non-select, rank has seen a quantitative reduction, but the defence services personnel who retired prior to these reductions, continue to be considered for pensions on the basis of the ranks they retired in and not on the basis of the higher ranks they would have automatically been given, had they continued to serve, based purely on the length of the service they had rendered.

This discriminates against older retirees in spite of the equal, or even longer, service they might have put in relative to subsequent retirees. In a scenario of variable qualifying service for time-bound promotions, the length of service rendered assumes significance.

This applies to most cadres across the services at the levels of Officers, JCOs and all other ranks.

A specific example can be cited in the case of Officers who were affected in this manner by the implementation of Phase I recommendations of AV Singh Committee which were implemented with effect from 16 December 2004. A Lt Col/Lt Col(TS) retiree, who retired before 16 December 2004, with more than 26 years of service, would have automatically been eligible for being given the rank of Col(TS) if he had continued to serve beyond 16 Dec 2004. But his pension, inspite of the length of service rendered, is that of Lt Col.

In this case, the most just resolution would, of course, have to be a retrospective implementation of Phase-I of AV Singh Committee recommendations. But that may involve dealing over prolonged periods of time with intractable issues. Besides, it is hard to find a justification for retrospective implementation, of AV Singh Phase I recommendations, earlier than the date of convening the committee.

But, there's an immediate stop-gap resolution feasible at least for pensionary benefits. The pre AV Singh Phase I retirees in the ranks of Lt Col/Lt Col(TS), with the requisite length of service that would have made them automatically eligible for the rank of Col(TS), presently 26 years, need to be placed alongside Col(TS) in the column listing pensions post VI CPC.

A similar step is required for the post pre 16 December 2004 retirees in the rank of Major with the same proviso, viz., of completing the requisite length of service that would have made them eligible for the next post AVS Phase-I rank of Lt Col. {Edit: As an afterthought, it's difficult to not agree with the viewpoint, emerging elsewhere, as to why a pre 16 Dec 2004 Maj retiree with more than 26 years of service would not be eligible for the same pension as a post 16 Dec 2004 Col(TS) who would have retired before implementation of VI CPC}

The primary rationale here is the length of service is just as valid a yardstick for parity of pensions as are the ranks held at retirement, provided due consideration is applied to the fact that the next higher ranks attained through selection, as opposed to those based purely on length of service rendered, would certainly justify higher pensions.

This is an extension of part of the logic put forth in this blog post.

Beyond The OROP "Slogan"

"One Rank One Pension", or OROP in short, is not just a single issue. It is a concept and represents a whole spectrum of underlying concerns, ideas and principles related to fairness, equity and justice. The chief danger in the term OROP being tossed about in the media, as well as in sundry blogs and forums, is that the finer details and nuances of the concept are likely to become victims of hype and the low quality of discourse and discussion overseen by the not exactly keen intellects that are usually the first to get engaged in great numbers with hype of any nature.

Presently, a common understanding is evolving to a loosely held notion that OROP would mean that an armed forces retiree would get the same pension applicable to his rank regardless of when he or she retired. This brief idea now seems to represent to vast numbers amongst those affected the totality of "OROP" which has in a way been reduced to a slogan without any common understanding as to what OROP should precisely mean.

Now, let us not dispute the usefulness of slogans, per se. In order to convey a range of issues to those affected in an abbreviated form, slogans are particularly useful as devices for capturing the 'popular imagination'. A slogan can also be the platform for engaging in negotiations and discussions on the complete range of issues covered by the single slogan. The caution that needs to be exercised is the slogan be discussed and amplified to explain its full meaning so that people do not confuse the whole depth of the matter with the wording or text of the slogan.

In that sense, OROP meaning equal pension for all retirees in the same rank would fall well short of a state of equity for a veteran of the armed forces vis-a-vis a civilian counterpart. For even a reasonable, not perfect, mind you, resolution of the imbalances tilted against the veteran, OROP needs to take into account the following principle-based considerations:

*There is a need to redress the imbalance in earnings, to the veteran's detriment, on account of his truncated career vis-a-vis a civilian counterpart. The present day veteran retirees' pensions therefore must be fixed at a higher level than those of 'equivalent' civilian counterparts as the latter serve for longer periods drawing incrementally enhancing emoluments for longer periods and also, as a result, getting higher pensions at super-annuation.

*There is a need to ensure parity in pensions of veterans who retired in the past and those who super-annuate currently.

*Rank of an armed forces retiree, though an important yardstick for OROP, cannot by itself be the sole criterion for ensuring parity of pensions for veterans. For past retirees, parity of pensions with present day retirees needs to be established considering the service rendered in a particular rank and, most importantly, pegging the parity at the current pension for the rank the former would have been currently entitled to purely on the length of service they, the past retirees, had rendered at the time of retirement.

There is an urgent need for all affected retirees to comprehend all aspects of the matter and to begin to list out and consolidate the various relevant ideas that have a bearing on this issue. Some ideas on the same subject have been highlighted in this Blog in the past.

A New Angle To OROP

With the recent news of the increase in the age of superannuation for civilian employees, the defence fraternity could consider factoring in the resultant effect on the parity of defence pensions with those applicable to civilian counterparts. 

The "One Rank One Pension" issue may, perhaps, need to be viewed not only from the viewpoint of parity amongst defence veterans but also with reference to what a civilian pensioner, in an equivalent post to the one the veteran retired in, would get by way of pension. 

Let's take the example of a Col, or equivalent rank in IAF or IN, retiring at the approximate age of 55, depending on the branch or arm. Now, when he reaches the age of 62, would his pension equal that of a civilian in an equivalent post retiring at 62? 

The disparity would have been considerable even without the increase in retirement age for civilians by two years. That is why there may be some relevance to the apparently abstract points raised in a previous blog post.

Matters Related To The Rank Pay Case

Though considerable effort has gone into keeping all affected up-to-date on the awaited judgement regarding the rank pay litigation, some issues need to be listed as FAQs by the appropriate Forums and Blogs, along with clear answers, for the guidance and information of all. 

As an example, the following could easily be included in such a list of FAQs: 

* Would rectification of the anomaly consist of calculating arrears of pay and allowances, and interest thereon, wef 01 Jan 86 till 31 Dec 95? 
* Would the rectification also consist of re-fixation of salary and allowances for the period O1 Jan 96 to 31 Dec 2005 and arrears paid along with interest? 
* Would the amount of pension paid to retirees also be recalculated and arrears paid with interest due to the expected increase in pay for the period of service? 
* As the fifth pay commission had introduced parity in pensions, would any upward revision in pensions as a result of the awaited judgement also have an impact on the pensions of pre Jan 86 and Jan 96 retirees? 
{Edit 1} : It is apparently in everyone's interest to address all such queries to websites/blogs such as that of RDOA and to be wary of mistakes such as duplication of litigation as advised in this Blog Post. 
{Edit 2} : Record of proceedings on the hearing on 24th February, the date previously fixed by the Hon'ble Supreme Court for a "final disposal" of the case, contains a new order. (link now expired)
{Edit 3} : The hearing of the case on 09 March resulted in an adjournment till 13 April, as recorded in this court order. (link now expired).

The Rank Pay Matter Relating To IV CPC{ continued :-) }

As had been suspected, pre-mature self-congratulations in some sections of the affected populace notwithstanding, the Government has indeed succeeded in delaying a resolution of the matter by clubbing all manners of subjects with the clear and distinct issue of the rank pay arrears of IV CPC. A final verdict has now been put off till such time the Hon'ble Chief Justice is presented with the matter and then, if it is so decided, the case would have to be referred to another bench. It is anybody's guess as to what sort of timeline could be assigned to the legal process. One can only look forward to updates in the media like this one . Edit 1: The Record of Proceedings of the Hon'ble Supreme Court has now been updated Edit 2: The Hon'ble Supreme Court has fixed 24 February 2011 as the date of "final disposal", as seen from the Record Of Proceedings. Edit 3: The next hearing is on the 8th March. Full details here.

OROP {continued :-)}

As the issue remains unresolved, one gets to read fresh "updates" and opinions on the matter every other day. There is a noticeable lack of clarity, however, as to what sort of structure "One Rank One Pension" is eventually intended to assume. It is time for the ESMs, currently in the forefront on the matter, to give some formal shape to the desired outcome.

For instance, the following aspects have never been fully explained:

*How do the proponents of OROP propose to take the length of service in a retiree's last rank into account for the calculation of pension? As an example, would a Lt Col (Retd.) who superannuated in 2001 with, say, 10 years of service as Lt Col, be entitled to the same pension as a Lt Col who superannuated in 2007 with just 3 years of service in the same rank?

*Would the proposed OROP take into account the change in rank structures pre and post AV Singh Phase I implementation. As an example, how would the pension of a Lt Col(TS) (Retd.) who super annuated on 30 Nov 2004, before the implementation date of AV Singh Committee, with, say, 29 years of service be treated vis-a-vis the pension of a Col(TS) who super-annuated, with the same sort of commission and an equivalent length of service, on 30 Nov 2007 after the date of implementation of AV Singh Phase I? Or would the non-retrospective implementation of AV Singh Phase-I cast a shadow on OROP as well, especially for Officer retirees.

*Why are ESMs not countering the repeated assertion by the political classes that OROP would be required to be extended to all Govt employees and hence would be prohibitively expensive? After all, civilian employees do not have to bear the burden of a truncated career and there is very little justification for a universal OROP as has been explained previously.

But, the continued thrust on the matter is indeed heartening. Till such time some positive official development is forthcoming, occasional updates do serve an important function, viz., of keeping all concerned abreast of the situation.

One Rank One Pension

The more one thinks about the issue of "One Rank One Pension", the greater is the number of conflicting ideas that flood the mind. So much has been written about the issue and there's been so much media attention, not always well informed and rational, focussed on the subject. It is now the subject of litigation and is beginning to take on political overtones.

Essentially, how does one justify the OROP demand? To be absolutely objective and fair, one joined the armed forces fully equipped with the publicly held knowledge that there would be no such thing as "OROP" at the end of one's career. There was no coercion or compulsion at play in the process of making the career choice. It was also known the career would be 'truncated' as compared to the career of a civilian counterpart. So, if all other things had remained constant, probably the cry for a special dispensation regarding pensionary benefits would have sounded like a petulant whine unbecoming of armed forces veterans. However, other things have not remained constant.

One of the possible reasons for the dissatisfaction amongst veterans could be the gradual, though slow, upgradations of emoluments of serving personnel over the years that translate into pensionary benefits as well. The personnel who retired before the upgradations took place have lost out, in comparison, in terms of pensionary benefits. This is inspite of the various formulaic tinkerings with pre/post pay commission pensionary benefits.

Even to obtain some form of equalisation in pre/post pay commission pensionary benefits, veterans have had to protest loudly and make very vocal as well as visible representations. There seems to be a widely held belief amongst ex-servicemen that they'd be deprived of their due entitlements by the political and bureaucratic classes. The 'OROP' is a kind of security blanket that's now being sought as a form of guarantee that ex-servicemen would be assured of the absence of such attempts, perceived or otherwise, to deny them their fair entitlements.

On media forums it has been pointed out on several occasions that in all civilian organisations present day and past retirees do have differences in the amount of pensions paid for the same service and the same post. This invariably draws the response that the armed forces cannot be compared to other organisations, civil or private. That's also something that cannot be argued against.

If the oft repeated rationale of truncated careers is considered, several alternative remedies suggest themselves. To make it a level playing field for civilian retirees and armed forces veterans, why not peg the pensions of the latter at the level of the payscale at which they retire? They would continue to draw the same pay and allowances and would continue to get increments as they would have whilst they were in service. This would continue till they attained the age of superannuation fixed for their civilian counterparts. After attaining this age of super annuation, common to both civilians and those in the armed forces, a common fixation of pension could be arrived at.

All the present retirees would require to have their pensions adjusted retrospectively from the date of their retirement and be paid the difference between pensions actually drawn and pensions due as per the proposal suggested. There would be no rationale for an 'OROP' based on the 'truncated career' argument then. It'd be fair to both civilian retirees and veterans.

Now, to be fair to those who might be upset by the notion of the Government paying actual salary and allowances to veteran retirees, it could also be left to the Government to offer employment to the veterans in civilian posts/grades appropriate to the payscales at which they retire. {Edit}  : For defence veteran retirees offered such appointment, there'd be no pension till such time they retire from the second goverment career. {End of edit} For those retirees who choose not to accept such employment offered to them, the Govt could then fix their pensions as per present non "OROP" practice without giving them the benefit of the continuation of salary/allowances till the common age of super-annuation. The Govt. could also apply the same rationale for a "non-OROP" fixation of pension for armed forces personnel who opt for pre-mature retirement voluntarily.

However, one feels that expectations of some such miraculous development would amount to the proverbial existence in a fool's paradise. So, the OROP slogan is not likely to disappear anytime soon. In a few years from now, if the Govt. finds itself in the fortunate situation of being able to introduce the concept of individual contributions to pension funds for those in Government service, all this would seem so trivial. But for the individuals who are presently pensioners, the matter does appear in need of resolution on an urgent basis.