AFVOA Newletters of Year 2008

Page 37 of 56 It computed the projected employment between 2001 and 2010 under the heads of total numbers, numbers superannuating, seeking voluntary retirement, and total retirees. It computed projected pension payments increasing by 7.6% which was the lowest among civil(7.6%). Railways (8.1%), Telecom (15.3%) and Post (9.3%). With rises in GDP up to near 9%, it is possible for increases in rates of pension. 14. All this not with standing, the Dept. of Economic Affairs, MOF floated an RFP on 15 Oct 2005 for operationalising the New Pension Strategy. A separate pension fund was proposed to be created for civilians joining after 01 Jan 2004. By excluding Armed Forces, it was evident that the Govt, was implementing 5th CPC recommendations for civilians. I responded to the RFP by forming a team of retired officers of all three Services, who were knowledgeable of pensions and had worked with me during Pay Commissions. I felt that NPS was eminently suited to our SSC officers and PBOR. The RFP had been allocated a sum of $2,00,000. In my long years in logistics, I had not seen a GOI RFP in a foreign currency. Anyway my RFP response was returned saying that since there was a change in TOR could a fresh response be submitted, which I did. Nothing further was heard and the structure for accounting the recoveries has not been put in place. Where the recovery from the individuals is going for two years is not known. 15. Reverting to the 6th CPC only for pensions, it does not talk of the 5th CPC recommendation for enhancing the rate of pension to 65%. It negates OROP by recording that pension parity given by 5th CPC would suffice. It does not talk of how this pension parity will be maintained, since MSP counts for pension for post 1.1.2006 retirees but is not admissible to pre 1.1.2006 retirees. (Very Important). 16. It has abolished weightage since reference to 33 years service is also abolished. It has simplified pension to just 50% of LPD. The edge in commutation has been retained. 17. So where do we go from here? 18. My wish list from the 6th CPC would be as follows for pensions alone:- (a) Rate of retiring pension be raised to 65% as recommended by the 5th CPC and accepted by the Armed Forces. (b) The formation of a service pension fund as recommended by TECS and approved by 5th CPC is not approved as the Government has the capacity to pay (see paragraph 13 above). In any case whenever increases in rates of pension viz 33% to slab system to the present 50%, no pension fund was talked of or required. Why now? (c) Pension parity as recommended by 5th CPC and ratified for continuation by 6th CPC is only hence forth applicable to civilians. With MSP being applicable to only those in service as on 1/1/06 and counting for pension, the post 1/06 retirees will not have parity with pre 1/06 pensioners. This can be resolved by granting an equivalent to MSP as an add on to all pensioners irrespective of vintage. (d) In so far as OROP is concerned, there are two dimensions. All pensioners irrespective of vintage but of the same rank must get same pension. This has been largely met till 6th CPC by pension parity. The second aspect is that pension must be rank based as existed till 3rd CPC. This means that all Colonels should have same pension. All MWOs should have same pension. SSC officers should receive pension now that 6 th CPC has done away with 33 years and weightage. (????) (e) Medical insurance should be applicable to pensioners for both OPD treatment and medicines and hospitalization. Medical insurance schemes could managed by respective Service GIS. ECHS like its counter part CGHS has not proved successful.