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.