At last, we have a resolution for the vexed one rank, one pension problem. If a few military retirees are still asking for more, they should be ignored. Without doubt, the government has taken the decision with a heavy heart. For, the sums involved are humongous.
And given the precarious state of the finances, the government cannot be blamed for keeping its gaze fixed at the treasury while negotiating with the leaders of the military pensioners. In a country with numerous claimants on the national purse, it is the onerous talk of the political executive to count every penny- and to make every penny count. The end of the 42-year-long OROP problem is set to cost at the current rates of pensions anything between Rs. 9,000 to Rs.10,000 per annum. It is a recurring expense which is bound to rise when the Seventh Pay Commission report, due in December, is implemented with retrospective effect.
The OROP decision also entails a one-time payment of some Rs. 12,000 crores in arrears applicable from July 1,2014, the base year for calculation being 2013. On a rough estimate, a retired colonel can expect up to Rs 10,000 more in pension while a brigadier between Rs 12,000 to 15,000, depending on each retiree’s period of service. Given the significant financial gains, it is not hard to understand the hue and cry for OROP for 42 years.
If the Modi Government has now clinched the issue, it is because the protests had assumed stridency and he was also morally bound by the election-eve promise to do so. The Congress leadership invited public ridicule when at the instance of the Gandhi scion senior leaders, including former Defence Minister A. K. Antony, were wheeled out to condemn what they called the `betrayal of ex-servicemen.’ Antony claimed that the sum offered by the government was `too little.’ He was obviously unaware that as Defence Minister for ten long years he had offered zilch; indeed, in written replies to parliamentary questions he had claimed that OROP was “administratively, financially, and technologically” impossible to implement. The same Antony was ticking off his successor, Manohar Parrikar, for ‘betraying’ ex-servicemen.
We will not pass any comment; we trust you are rational enough to know what to make of Antony’s remarks. Another Congress warrior, Kapil Sibal, rehashed the same thing Antony spoke, but in his case we cannot help but comment that what he said was of a piece with his zero-loss certification in the humongous 2-G telecom scam. The inanities of the Congress aside, the important thing is that a vital section of the people, numbering some 30 lakhs, including the widows of soldiers, has been duly assuaged with the resolution of their long-festering grievance.
The NDA government can rightly claim credit. Yes, a few niggles, such as the period of equalisation of pensions, the constitution of the proposed commission for fixing anomalies in implementing OROP, remain, but these are not such that can be problematic. After the mutual agreement on the major points of OROP, the relatively minor demands can be easily resolved. But a larger question concerns the ever rising amount to be earmarked for military pensions.
Given the early retirement in the armed forces, it will be quite a burden to rustle up funds for pensions in the coming years. As it is, Rs. 54,000 crore goes on military pensions alone at the existing rates. Add about Rs. 10,000 crore on a recurring basis, thanks to OROP, though Rs. 10,000 to 12,000 crore is one-time arrears to be paid in four equal six-monthly installments. Then you have the Seventh Pay Commission report coming soon which will increase the pension bill enormously. In other words, saddling the future governments with such a huge pension bill is not good. Prime Minster Vajpayee had introduced the New Pension Scheme for government servants entering service after 2003. Some such scheme ought to be devised for the Defence personnel as well and be made applicable to the newly-recruited members of the armed forces. Of course, additional contributions by the Government to the military personnel’s pension scheme could be considered in view of the special nature of their responsibilities. But the current pension scheme has become unviable and must be replaced.
