New pension formula based on last pay – Tribune News

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Forces seek new pension formula based on last pay – Ajay Banerjee, Service
New Delhi, January 12
The suggestions
The memorandum says that 75% of last pay drawn should be the benchmark for calculating pensions for jawans
In case of officers, 60%of last pay drawn be the benchmark
The memorandum also says the Military Service Pay be fixed at 30% of basic pay for jawans and 15% of the basic pay for officers

Even as the retired veterans from forces are asking for one-rank-one pension (OROP), the ‘joint services’ memorandum submitted to the 7th pay commission has recommend a pension formula that is based on the last pay drawn.

Sources told the Tribune that the memorandum submitted on behalf of the three services, the Army, the IAF and the Navy, to the commission has suggested that 75 per cent of the last pay drawn should be the benchmark for calculating pension for jawans. In case of officers, 60 per cent of last pay drawn be the benchmark for calculating pension.

This demand has been put forward as the government is yet to implement the one rank-one pension (OROP). On its part, the government has accepted the OROP. Its modalities are being worked out over the past 12 months.

The Rajya Sabha Petitions Committee chaired by Bhagat Singh Koshyari in December 2011 stated that clubbing the defence personnel with the civilian employees for pension purposes was not a considered decision.

The committee laid down the definition of OROP: “It implies that uniform pension be paid to Armed Forces personnel retiring in the same rank with the same length of service, irrespective of their date of retirement, and any future enhancement in the rates of pension to be automatically passed on to the past pensioners.

This implies bridging the gap between the rate of pensions of the current pensioners and the past pensioners and also future enhancements in the rate of pension to be automatically passed on to the past pensioners.”

Three weeks ago, Defence Minister Manohar Parrikar had promised “OROP will be implemented….it has a lot of financial implications which are being worked out”. On the civilian side, the pension is 50 per cent of the last pay drawn and the same formula was applied for the forces in the last pay commission.

The forces have argued that 50 per cent of the last pay drawn was more in tune for civilians. People in forces retire early and only 2 per cent of them make it to the rank of Major General or equal in the IAF and Navy that is at a par with Joint Secretary.

The memorandum also says the Military Service Pay (MSP) amount is very small and suggested it be fixed at 30 per cent of basic pay for jawans and 15 per cent of the basic pay for officers.

In case of disability pension, a minimum 10 years of service is required to be eligible. And if a person is injured critically within 10 years and cannot continue further in the forces, he cannot get pension. This 10-year period should be waived, the memorandum suggested.

Read at: The Tribune