Wednesday, August 19, 2015

OROP- Are Defense Forces Same Class of Public Servants as Civil Govt or PMF or Police Employees? Are Their Enough Funds?

Following two reasons are being given in media debate for Govt being hesitant on giving OROP to defense forces

1.       If OROP given to armed forces the other civil, paramilitary and police employees will also ask for it. The demand is based on assumption that defense forces are of same class of public servants as civil govt, para military and police employees.

2.       Govt doest have funds to give OROP

Both the above questions are not only being popped up due to vested interests but are also to create deception based on lies. Let me explain the above two issues?

Are defense forces of same class of public servants as civil, para military and police?

Before we come to above question let us ask one question? Are, President, PM, MPs, Judges paid like civil govt servants? No. But why as they are also public servants? Because they have a distinct constitutional identity and are separate class of public servants?
Same is the case with armed forces. Constitutionally they are distinct class of public servants because of following reasons
a.       President wears yet another distinctly separate hat of supreme commander of defense forces.
b.      That is why Armed forces are not part of govt but attached to Govt for administrative reasons only.
c.       Officers of defense forces therefore are commissioned officers and exercise unique absolute powers of command. The concept of command entails exercising sovereign functions of state, judicial powers, powers of magistrate, operational executive powers and administrative powers vested in single person who is in command. Such concept is unique to only military. Civil Govt on other side has different institutions for each of these functions. 
d.      Clause of pleasure of President as mentioned in article 309 to 313 applies in a different manner on soldiers of defense forces than civil govt servants.
e.      Job profile of defense forces is totally different wherein he commits his life to the nation against certain sovereign guarantees and these liabilities even continue after retirement from service. No other civil govt service including PMF and police carry after retirement liabilities. A retired soldier technically can always be recalled for duty any time after his retirement subject to his fitness. That is reason member of defense forces are given title of ranks like Colonel, which they use as prefix to their names till death. A soldier is always a soldier of state till his death. It is his service to the sovereignty of the state.
Profession of soldiering therefore is a commitment for life. Constitution accordingly makes a distinct identity for them.  So if they have a distinct identity and service conditions then they need to be paid accordingly like you pay President, PMs, MPs, Judges etc and surely not like civil govt employee or PMF or police for the reasons as explained above.
That is the reason worldwide military pay and pension fixation is done by separate pay commissions or appropriate bodies. In India the same pay commission does it but it is given a separate terms of reference to maintain distinct identity of military. That is the reason Pay Commission Report contains separate chapter for defense forces.
Defense Forces have been demanding a separate pay commission for themselves to recognize their distinct constitutional identity.
As soldiers serve for life and commit it to the nation, they have been given certain sovereign commitments and one of it is lifelong assured pension as per length of his service and title of rank on the concept of OROP and model of Pay As You Go.
OROP was being given to soldiers and we all under what circumstances it was mischievously dropped. When the mistake was pointed out to Govt assurance was made that it will be restored. Since than soldiers are struggling for OROP.

Govt doesn’t have enough fund.

Is that true when you see the way for votes the public funds are been distributed or the way civil govt employees are being paid. The financial burden of civil pay and pension has risen from 1% of GDP to 2.5% of GDP where in terms of % of GDP soldiers pay and pension has gone down . No authentic figures are available but it is reported to have gown down from .75% of GDP to .35% of GDP. How is that happening if there are no funds?
Can it be said that we will pay all other public servants at will but make soldiers to beg?
Another way of saving funds is cutting corruption in defense procurements and modernizing structure of defense forces ( It is still based on WW II model). Easily 30% of the defense budgets could be saved.  You can pay OROP and also spare funds for national development schemes.

In Nutshell

In nutshell both the arguments as being given to stall restoration of OROP to soldiers doesn’t stand to scrutiny. These questions do not stand to reason. It is pure lack of will on part of poltical leadership or may be a design to keep soldiers helpless and begging which looks to be a strategy to deny OROP to soldiers.



There is need to give justice to soldiers by adopting best practices as followed in world by most democratic nations while paying their professional armies and first step is to give OROP. It shall be followed by constituting a military commission as promised by BJP Govt in their election manifesto. The same commission can then undertake all pay and pension issues separately in addition to issues of resettlement and rehabilitation.

Sunday, August 16, 2015

Point Blank Talk - One Rank One Pension

This blog is in reply to blog http://ajayshahblog.blogspot.in/2015/07/what-is-cost-of-one-rank-one-pension.html 

Thanks for writing this blog which many IAS officers are quoting. I am indeed grateful. I wish it was such a simple arithmetic.  I am sure we all agree that best practices shall be followed while deciding such issues. Lots of researches have been done on structuring military and civil pensions. Best coming from Japan and Singapore which is even followed by west. Mr Dave is one who has done some work but his findings are not authentic and needs validation. Nevertheless let me highlight few points for assisting writer of this blog and raising certain questions to him. I am sure it will help him and others understand this complex issue in its right perceptive.

My comments on blogs are

1.       As far this blog is concerned it has been written purely from a perceptive of an insurance company and no insurance company insures war casualties or gives a total package to a soldier.

2.       Professional soldiers (mind you it is profession of arms and not job) are given certain sovereign commitments to prevent becoming mercenaries.  Choice is of state you want a professional army or an army of mercenaries.   India made a choice to go for a professional army and gave certain sovereign commitments and same needs to be respected and it has a cost.


3.       There are certain wrong assumptions made like life expectancy which in fact in case of soldiers is lesser than civilian by 8 years. It may come as surprise to writer but that is true soldiers though healthy die early due to certain psychological and physical disorders which they develop due to stress of service

4.        Issue of OROP cannot be seen in isolation. It is part of whole compensation package and structure as adopted in India and in particular reference to military where sovereign commitments have been made. The issue has risen as soldiers pension was reduced from 75% to 50% violating orders of Nehru Govt.  Writer may like to search and read orders of Nehru Govt on how to fix compensation package for soldiers and mind you it is still valid.

5.        Worldwide as a standard practice military pay and pensions are structured in different manner than civil and it has reasons of adhering to best HR practices and also certain sovereign commitments which state gives to soldiers for having committed their life to nation and mind you this commitment is for life. That means even after retirement soldiers of the state carry that commitment till his death and that is the reason military personals are given title of rank by law which they use as prefix to their names forever. It becomes part of identity. No civil or police service carry such liability and that is the reason pension model of PAY AS YOU GO is adopted for soldiers worldwide and NPS and other models s applicable to civilians.

6.       Military constitutionally has a distinct identity like judges. Military officers are commissioned officers and it is a separate class. I am sure writer understands certain functional implications and responsibilities of being a commissioned officer.  A civilian president is a supreme commander of defense forces. There are two separate hats which he wears and that is the reason military forces are attached with govt only for administrative reason. No civilian except president therefore has command authority over the forces. This is also the reason worldwide separate pay decisions are made for soldiers and it is not clubbed with civilians. Unfortunately in India same pay commission deals with both subjects which violate constitutional identity of soldiers.

7.       Issue being complex as mentioned above after due research for most of the modern armies following principles have been accepted while deciding their compensation package and India shall be no exception ( Order of Nehru Govt on administration of pay and pension of soldiers)

a.       Considering job profile of soldiers, Average Career Earnings of soldiers shall be 10-30% more than civilian staff and this in addition to cost attached to provide certain functional facilities to make them perform their jobs. Average career earning is worked out as pay and pension cost during entire life.

b.      Considering sovereign commitments which govt makes to soldiers (for not becoming mercenaries and certain security compulsions) and soldiers make to state for life, assured pension is a sovereign commitment and not favor.

c.       While deciding above title of ranks shall not be considered as a benchmark for parity as these are unique to military but their length of service. Therefore Average Salary Index is worked out to bring parity in relation to length of service( Nehru Govt order makes it clear)

d.      Govt retains the discretion to reduce cost by assuring jobs or compensations in other forms in returns. In any case minimum returns for having been a soldier cannot be reduced. In USA while soldiers are in civil govt or corporate jobs, makes suitable adjustments in pensions but it is restored if the jobs are lost. ( in USA a soldier can even earn 100% pension :) )

8.       Issue of soldiers pay and pensions have been lingering on for decades now. Whole complexities were created by Mrs  Indra’s Govt due to certain political game of revenge and her aspirations to have total control over military ( may be before emergency). Avoiding that, I can only say the issue is taking heavy toll on moral of soldiers risking sure defeat in next war. Nation has to make a choice what does it want? A professional Army or an army of mercenaries or slightly more armed para military force, or wish to outsource defense of country to other nation like Japan or have no military but a police force in hope that nukes will give you security or multiple forces created to take care of self perceived coup phobia? Everything has a cost. Choice has to be made. If you can’t pay a professional army than give liberty to soldiers to look for employment anywhere in world like any civilian. There are enough countries which have shortage of men ready to pay Indian soldiers more especially when security environment is deteriorating and cold war II has already started. Russian and French offers are already there. Britain, Canada and Australia are already thinking giving soldiers of India under commonwealth a status of their own veteran. In fact Canada has already given. USA is ready to open her army for Indian soldiers. In any case Pakistan won’t mind and do it happily. It is question of oath and commitments which all public services take. Soldier’s commitment to state is in terms of their oath which they take in return to certain sovereign commitments. If you can assure sovereign commitment its fine and if state can’t then also it is fine soldiers are free thereafter to take decision like any other citizen of this country. (in any case who is abiding by oath in this country).
  
9.       As far as cost is concerned 30% cost of defense can be reduced in India if corruption is eliminated and military is structured as per modern armies. We are still structured as per WW II model and our procurement systems are highly corrupt. State can easily pay to soldiers then. In fact soldiers are asking lesser. OROP doesn’t compensate fully as per standard practice. In any case as per writers estimates the increase in cost is only 231% which if corrected with right figures of soldiers life expectancy and inflation will be not more than 150%. Which is peanuts for the quality of defense nation is getting. 


10.   It is not question of simple’ arithmetic but is related to survival of India in most hostile region of world. Considering long history of slavery, I only hope nation learns. After all it is men behind weapons who win wars where there are no space for runners up. Nation may like to know about cost benefit analysis of .75% of GDP spend on soldiers cost versus 2.5% of GDP spent on civil govt staff (increased in name  of economy from 1 to 2.5%).  Per penny returns received. After all India is a poor country and it is tax payers money.