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Arun Jaitley on OROP – Annual pension revision do not happen anywhere in the world

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Arun Jaitley on OROP – Annual pension revision do not happen anywhere in the world

“For the first time, a clause in OROP was openly rejected. The Finance Minister has refused to give annual increment for pensioners like servicemen get.”

“The task of the finance minister is very much like the housewife’s. She has to spend each and every rupee wisely to make sure that there is no cash crunch towards the end of the month,” Finance Minister Arun Jaitley told the reporters during a press meet.

Ex-servicemen have been fighting for the past 78 days demanding the implementation of One Rank One Pension. The finance minister told the reporters, “We are ready to give them OROP, but we cannot give them annual increments like they demand. We can consider revisions once every five years. The 7th Pay Commission will soon submit its report to the Government. If we have to implement their recommendations and the OROP, there will be additional expenses. We’ll have to manage that too.”

He also said that the Central was committed to the long pending demand of One Rank One Pension but the ‘only difficulty’ as the ‘arithmetical translation’.

“My work is very similar to the responsibilities of a housewife. She has to run the family with the money that her husband brings and ensure that there is no cash shortage throughout the month. Therefore, we will not be able to give a 3% annual increment on the pension that is being demanded by the veterans.

“We have the responsibility of looking after these soldiers who retire at the age of 35 or 38. We agree to implement the OROP scheme. Pensioners are likely to see a substantial increase in their pensions. But it is impossible to increase the pension each year. Accepting these “unreasonable concessions” will form the basis for others like BSF and CRPF to make similar demands.

“I have, in my mind, an opinion and formula for OROP scheme. Others too will have their own opinions and formulae, but they have to be reasonable and rational criteria. OROP may not be a scheme with monthly or annual revisions,” he said.

Two major obstacles are, one is yearly increment and another issue of base year. There have been several rounds of talks between the official and the protesting veterans on this issues. But all of those have failed.

The pension drawn by soldiers who had retired earlier much less pension, when compared with the pension received by those who had retired recently. Instead of taking into account the calendar year in which the soldier retires, OROP fixes the pension on the basis of the rank and the number of years the soldier had served, to calculate his pension. Any future enhancement in the rates of pension, it would benefit all the ex-servicemen. This is the most important feature of the scheme.

More than 20 lakh veterans and 6 lakh war widows all over the country are hoping that their pensions will be revised based on OROP Scheme effective from 1.4.2014.

Source: 90paisa.org
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7 comments:

Anonymous said...

My Dear Finance Minister,

Reference Your comments on OROP that'“We are ready to give them OROP, but we cannot give them annual increments like they demand. We can consider revisions once every five years. The 7th Pay Commission will soon submit its report to the Government. If we have to implement their recommendations and the OROP, there will be additional expenses. We’ll have to manage that too.”. It was well known to even lay men that OROP is not possible in the present system of incremental pay scales and pension based on last pay drawn as those who retire later earn lineaments hence draw more pension. But your party leaders no lesser than PM and Defence Minister played with the sentiments of veterans by promising OROP to win over Congress Party. Your Party should have done its home work before promising moon to veterans.In fact whoever promised OROP should dive into sea if cannot fulfill their promises.
As far yearly increase being proposed by veterans is the least cost formula if OROP is to be provided to veterans. Otherwise the only other solution of OROP can be a fixed pension for every rank @ of 50% of pay at top of the scale in each rank or near to that where no one can cross that pay through yearly increments. This would have costed a lot and veterans have shown their patriotism by asking the least and same time to shut up the mouth of opposition critics. But they forgotten that they are dealing with politicians and not 'Faujis'. I remember what Mr Rajesh Pilot said in a interview for 'Faujis' and politicians. He said when I was a 'Fauji' whatever is in my heart will reflect on my face. Where as when I became a politician whatever is on my face is never in my heart.

Dear Finance Minister to update you every central government employee retired prior to 1.1.2006 is already getting 50% of pay fixed as on 1.1.2006 for his pear group, hence OROP for all as on 1.1.2006. If you say no annual increase then where is OROP? Please clarify How?
In fact current government has already done an irreparable damage to the image of veterans by making them to demonstrate on the streets and now whatever your government give is not worth. May God give wisdom to your party and government.

Yours can never be sincere and faithful.

IP Singh
New Delhi

Subhash Chand said...

Sir,

What wiil be the formula of revision of pension after every five year. What will be the mod of calculation?

COL LAMBA said...

RESPECTED SIR, 1/ KINDLY SEE THE MATH & FUNDAMENTAL LAW OF EQUALITY 2] COMMENTS FOR QUICK IMPLEMENTATION OF OROP & CORRECTING MATH OF BABUS 3[ ENSURE IMPLEMENTATION OF FUNDAMENTAL LAW OF EQUALITY TO FORCES PENSIONERS A SIMPLE MATH BUT FM / BABUS HAVE PROBLEM IN UNDERSTAND BEING FROM OTHER STREAM ONE RANK ON PENSION MEANS 1] SAME RANK 2] SAME LENGTH OF SERVICE 3] SAME PENSION HOPE BABUS HAVE CONFUSED FM IN SAME PENSION ASPECT, AS PER 6TH CPC.. PAY & PENSION INCREASE BY 3% WEF 1/1/2006 TILL 31/12/2015, EACH RANK HAS SLABS OF INCREMENT & ON REACHING UPPER SLOT PENSION WILL BE HIGHEST THUS NO MORE FURTHER INCREMENTS ARE FEASIBLE. THE UPPER SLAB PEOPLE MAY REACH IN 1 TO 6 YEARS,, DEPENDING ON PAY DRAWN,,, SO PENSION IS NOT INCREASED FOR 10 YEARS ON YEARLY OR MONTHLY BASIS AS GIVEN OUT BY FM,, NO PROB HE IS LAW GRADUATE WE CAN UNDERSTAND GAP IN HIS MATH BUT HE IS EXPERT IN LAW SO AT LEAST ADHERE TOO BASIC FUNDAMENTAL RIGHT OF EQUALITY FOR PENSIONERS. THEN YOU HAVE TO OROP PRINCIPLE WHICH HAS BEEN AGREED BY 2 GOVTS ,PASSED BY PARLIAMENT & BACKED BY SUPREME COURT PRESENT/PAST /FUTURE PENSIONERS IN SAME RANK ,SAME LENGTH OF SERVICE ARE TO BE TREATED EQUAL TO MAINTAIN LAW OF EQUALITY THUS 3% INCREMENT HAS TO BE PAID , IT IS THEIR RIGHT & NOT A BONUS HOPE GOOD SENSE PREVAILS ELSE PRESENT SERVING WILL BE RETIREE SOON ,, THE MORALE OF STANDING ARMY WILL GO IN BOOTS WITH EACH DAY OF DELAY[ FORCES ARE LOYAL TO NATION & ALL OF YOU ENJOYING SAFE LIFE AT COST OF THEIR BLOOD RESPECT THEM & HONOUR THEM GIVE US NFU STATUS & BRING BACK STATUS OF PRE-1973, FORCES PENSION AT 70% & BABUS AT 30 %,, BABUS HAVE DONE ENOUGH DAMAGE TO FORCES 1. Pay us equal to civil Govt employees. 2. Change our duty hrs to six hrs. 3. Pay us over time like civil servants if employed for more than 6 hrs. 4. Do not employ us in aid to civil authority. 5. Do not employ us in Natural calamities. 6. Do not force us to remove dead bodies after earth quake .Get it done from Elite class of employees

Anonymous said...

After the kind of OROP these veterans are asking, the dream of this nation will be to join services and enjoy for the rest of your life even after retirement as they are assured of regular enhancement of pension against the other country men where pension has become contributory, they are given whole lot of facilities for life like free rations, CSD canteens, life long hospital care free of cost, during service period good life at army bases , dedicated schools for children, enhanced salary alongwith Military service pay which is agian equal to separate pay, lot of allowances which are not even thought for CAPFs who during their life keep struggling for an honourable life,and with contributory pension reduced pay without MSP reduced entitlement of leave, hardly any family stations. Poor
Sons of lesser gods

Anonymous said...

Dear sir,
With a very high respect to the soldiers who laid down their lives for this nation, we should do our best for the bereaved families, but at the same time we have to understand the practical aspect of it.The claims like all central govt servants are already paid very high more than services is a misnomer. The services already have tremendous advantage in pay and perks post implementation of AVSingh commitee recommendations wherein the services put their officers in PB4 scale on time scale basis whereas it is selection grade for the rest of the country. In CAPFs achieving this scale is a dream for the individual who is paid less treated stepmotherly and pension is on contributary basis for those who joined post 2004.As regard aid to civil power, the services are trained for it and it is their charter, they are trained to kill the enemy with all their might whereas the other organisations are not adequately trained for it. there is no provision for overtime and NFU for CAPFs as suggested in the views of Col LAMBA above and also no fixed duty hours. In fact these honoured gentleman will be surprised to know the duty hours of a policeman on duty and his pay he gets, even he deserves some respect. Forces have been given that wherewithal to deal with any situation and accordingly infrastructure is provided by the government. I only pray god that these respected veterans understand the financial situation of the country and contribute for nation building.

Anonymous said...

My all sympathies to our CAPF brothers and sisters and support for all assistance from government to make their life comfortable. In fact it is for their senior leaders DGs to look after their men whom they command.

Wg Cdr IP Singh

Anonymous said...

Dear Respected Finance Minister,

With due respect to all the Armed forces, I am to inform you that most of our soldiers retire at an early age between 35-38 years after going through all the difficulties in protecting our nation therefore they deserve to be saluted and also helped for a better living. OROP needs to be considered atleast at the lower levels.

We also need to understand that there are lot of poor people in our country who are to be provided with the basic requirement of food, shelter, clothing and education and health care also.

Further, I am to inform you that, I have observed many young retired armed forces personnels take up jobs in private sector or run business in others name and are living a very happy life and are also avoiding taxes.

Therefore, I am of the opinion that in Government service we need to make up a law for giving there first five years of service in Armed forces so as get all the contry men to serve their nation and also to bring dicipline in works they carry out and later to be posted in Government departments at their native place or nearby so that the same dicipline will be carried while doing their duty and also will not retire at an early age.

The Government of the day needs to think and think hard to bring to reality.

For giving opportunity to the needy and not the greedy.

Thank You,

Hope I have not hurt any one.



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