Indian Express today has published a mischievous article titled “Need to debate the Rising Defence Pension Bill” copy of the Article is enclosed.
1. Indian Express today has published a mischievous article titled “Need
to debate the Rising Defence Pension Bill” copy of the Article is
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
Maj Gen Satbir Singh, SM (Retd)
Mob: +919312404269, 0124-4110570
Email ID: email@example.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
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.