MISCHIEVOUS ARTICLE IN INDIAN EXPRESS CONCERNING

Dated: 09 Mar 2015

 

MISCHIEVOUS ARTICLE IN INDIAN EXPRESS CONCERNING

DEFENCE PENSIONS

 

 

Dear Veterans

 

1.   Indian Express today has published a mischievous article titled “Need to debate the Rising Defence Pension Bill” copy of the Article is enclosed.

 

2.   The timing of the article is a suspect as it appears to put a spoke in the Implementation of the OROP which is in the final stages of execution.

 

3.   Suggestions made in the article are not only inimical to the interests of Armed Forces but have serious ratifications as for as the national interests are concerned.

 

4.   There is need to nip this serious mischief in the bud.  You are requested to appropriately responded to the Article to the editor of the concerned  News Paper and also send your responses on the Twitter of PM & RM.  You may also write articles refuting the scandalous suggestions made. 
 

 

With regards

 

 

Maj Gen Satbir Singh, SM (Retd) 

 Chairman IESM
Mob: +919312404269, 0124-4110570
Email ID: satbirsm@gmail.com

 

 

 

Copy to :-

 

 

 

 

General Dalbir Singh                             PVSM, UYSM, AVSM, VSM, ADC          Chief of the Army Staff Integrated HQs of Ministry of Defence (Army) South Block, New Delhi-110011	For information and necessary action as deemed fit.
Air Chief Marshal Arup Raha                           PVSM, AVSM, VM, ADC                                                                             Chief of the Air Staff & Chairman, Chiefs of Staffs Committee (CoSC),                                   Integrated HQs of Ministry of Defence (Air Force) Vayu Bhawan, New Delhi 110011	Our request as above.
Admiral R K Dhowan, PVSM, AVSM, YSM, ADC                                                                                                  Chief of the Naval Staff                                                                                 Integrated HQs of Ministry of Defence (Navy)  South Block, New Delhi -110011	Our request as above.

 

 

By:

 

 Express News Service |

 

 Published on:March 9, 2015 12:00 am

 

 

 

There is an urgent need to debate the rising defence pension bill. In 2004, a debate over the mounting civilian pension bill led to the New Pension System for government employees, where pension contributions were defined and not benefits. But the armed forces were excluded from that system. Now, a beginning can be made by including pensions in the official defence budget.

 

 

 

 

In 1985, when Rajiv Gandhi was prime minister, defence pensions were removed from India’s overall defence expenditure, presumably to assuage global concerns about India’s defence bill, which was linked to its regional ambitions. The defence expenditure was then 3.6 per cent of India’s GDP. When that ratio has now come down to 1.75 per cent, the lowest in the post-1962 era, defence pensions still continue to be excluded from the defence bill. Over the years, defence pensions have grown exponentially — from Rs 1,670 crore in 1990-91 to Rs 15,244 crore in 2007-08 to Rs 50,000 crore in the current year — at a much faster pace than the defence budget. Next year, defence pensions are budgeted at Rs 54,500 crore, placed outside the official defence budget of Rs 2,46,727 crore. The pension bill is likely to rise by another Rs 8,400 crore with the implementation of the One Rank One Pension (OROP) scheme for military veterans. Every successive Pay Commission has raised the pension burden exponentially and the Seventh Pay Commission, coupled with the effect of OROP, will hit the exchequer even harder.

 

 

 

Approximately 60,000 soldiers retire from the 1.3 million-strong armed forces every year but early recruitment and retirement age, coupled with increased life expectancy, means that military veterans get pensions for a longer period than their civilian counterparts. Thus India now has 1.7 defence pensioners on its rolls for every serving soldier, compared to civilian employees where the ratio is 0.56 pensioners per employee, and defence pensions will soon exceed defence salaries. Even if military veterans and soldiers can’t be moved to a New Pension System, there is a need to look at other measures, such as reducing the minimum military service period, pushing for early retirement with lateral absorption schemes and identifying a new model of defence pensions for new recruits. These are desirable not only on the grounds of fiscal prudence, but also to keep the military lean and young.

 

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