HOW THE MSP OF VETERANS

VANISHED INTO THIN AIR!

Maj Gen Surjit Singh (Retd)

Some Pertinent Questions Regarding Pensions of Veterans

My friends and comrades have, by now, read and re-read the Govt of India letter dated 11
Nov 08. They still turn to me for answers to a few very valid questions, which are not
explicitly stated in the captioned letter
• Are the past pensioners entitled to the benefit accruing from the award of MSP?
• Is Grade Pay to be considered while arriving at their revised pensions?
• How is it that the revised pension of several senior ranks is the same?
The Answers
Having granted the increased MSP to serving soldiers, and after having accepted it as a
part of Basic Pay, the government realized that they could not (or would not like to) bear
the burden of admitting this largess to past pensioners. A very ingenious process was then
invented to admit it to the past pensioners, and yet contain the financial burden to a
negligible amount. Here is how they have achieved it. The formula for revising pensions
is as under:
• Step One The revised pension for all past pensioners is arrived at by
multiplying the current Basic Pension by a factor of 2.26. This Basic Pension
does not include the 50% DA merged as DP on 1.4.2004 (For those who retired
after 1.04.2004, the Basic Pension must first be worked out by dividing the
Pension given in their PPO by a factor of 1.5, since in their case the pension is
inclusive of 50% DP)
• Step Two The pension thus calculated is subjected to ‘the protection clause’
That is, if the pension worked out as above is less than 50% of the minimum of
the Pay of the relevant Pay Band plus Grade Pay plus MSP, then the revised
pension must be stepped up to the amount thus calculated. By coincidence (or
design) the ‘protection clause’ results in a benefit to a small fraction of
officers only. Officers of the rank of Lt Col and below as well as the entire
gamut of PBOR gain nothing from this clause.
• Step Three If, as a result of this stepping up, the revised pension of a given
rank is found to be lower that that of his lower ranks, then the pension of the
senior must be stepped up to become equal to the pension of the lower rank
• An Exception to the Above Rule. Army Commanders, Chiefs and their
equivalents in the civil as also the ex-DGs of Police are an exception to the
rule. They are on apex scale and have, therefore, been granted Rs 40,000 and
Rs 45,000 respectively
The Resultant Picture
The result of this absolutely brilliant piece of villainy is as under
• All PBOR and officers up to the rank of Lt Col will get no benefit of MSP
or the grade pay. Their revised pension has no relation to the pension
granted to the post-2006 retirees.
 • Cols and Brigs pensions shall be stepped up to the level of 26,050 and
26150 respectively. In this the pre-1996 Cols gain a significant amount; the
Brigs, a bit less
• Maj Gen and Lt Gen are not entitled to MSP (though MSP has been taken
into consideration of the fitment of their Pay in the new scale) Now since
their revised pay works out to be lower than the Pension of Brig, their
pension has been stepped up to 26,150 (the pension of Brig)
• Lt Gens who retired after 1996 with a basic pay of more than 23,450 will
get no benefit out of this ‘protection’ clause since their revised pension is
higher than 26,150
• A huge gap has become apparent between Lt Col and Col; as also Lt Gen
and Army Commanders

Can This Dispensation be Challenged?

Military pay in India is governed by the Central Civil Services (CCS) Rules. In this
statute, it is no where written that an officer of a senior rank has to be given a
higher pay or pension than that given to a lower rank. Thus if the pension of a Brig
works out to be lower than that of a Capt, it has merely to be stepped up to be made
equal to the pay of the Capt. If that fouls with the military ethos, the government
could not care less. In the Maj Generals’ case, the government has already stuck
their resolute stand on this issue. The Courts, including the Supreme Court are a
creature of the Government, and it is now clear that the legal route is an elusive and
tortuous path. The Courts can postpone hearings and drag cases indefinitely and
there are enough provisions in the statute for the government to obtain the order
which falls in line with their policy.

Why Has the Government Resorted to this?

Elementary, my dear Watson. This simple device denies a considerable sum of
money to nearly two million PBOR. The “saving” is to the tune of Rs 2,400
crores on account of MSP alone. The total cost of OROP has now risen to a
significant figure. And the government wishes to ‘save’ that money. The plight of
the hapless veteran is less consequential to the polity than the effect on the
economy and inflation. The veterans’ votes which they might lose in the process
are less than those which they might lose if the prices rise. It is a simple electoral
calculation or perception.

The Shape of Things to Come

The story does not end here. The annual increment granted is a compounding factor
of 3% per year. By the time the next Pay Commission is instituted, say in 2016,
the Pay of even a Col would be close to the pay of an Army Cdr, while the past
pensioners would continue to get what they have been granted now. The
situation will become so skewed, that a sensible government may constitute more
frequent review of salaries.
The Tail Piece
We are now faced with a piquant situation. The pension of a Col who retired on
1.2.2006 exceeds that of a Lt Gen who retired a month before. But there is nothing
in the CCS Rules to ‘protect’ the loser! Similarly, a pre-2006 Sepoy will get only
two thirds the pension of his colleague who retired after the crucial date. I do not
know what we should do to remedy this situation, but the Courts are not the
answer. In fact, if we go to the court, the case will become “sub judice” and the
government will find it easy to take no notice of our protests. The serving top brass
can make a difference, but their priorities lay elsewhere. The faceless and
insensitive civil servant are not approachable, and the politicians understand
only one language : the one which they use in the Parliament: screaming,
running to the well of the House and staging walk outs!

* * *

A Post Script
Before signing off I wish to make a confession. I was posted to the Pay Cell in
1983 as a Lt Col. Retirement was something which was a distant event, it happened
to ‘other people’ and not the likes of me. OROP was already an emerging issue, and
I remember an elderly veteran who used to come and try to ‘educate’ us on its
nuances. Let me be honest and admit that I used to find him a pain in the neck.
He had lots of time on his hands, while we were pressed for time. So I used to
excuse myself on some pretext and take leave of him. We did not make a serious
mention of any of his recommendations in our presentations. In my second
tenure during 1996-97, I was more sympathetic to the elders who came to see me,
but my other colleagues thought I was wasting time on less important issues. And
this time also we gave this issue a short shrift. Hence if the serving top brass
including the Chiefs do not pay much attention to OROP, they must be forgiven
their attitude and priorities. OROP will be sanctioned only when (and if) a
committee of elderly members is convened to determine salary systems! I am
tempted to quote from a poem by Ogden Nash.

OLD MEN
People expect old men to die.
They do not really mourn old men
Old men are different. People look,
At them, with eyes that wonder when…
People watch with un-shocked eyes.
But the old men know when an old man dies!