This has reference to a piece titled “Budget 2016 : Pensions Sink Defence Modernisation” by Shri Manu Pubby appearing at Page 7 in the Economic Times on 01 Mar 2016.
The above piece conveys an unambiguous impression that the grant of One Rank One Pension (OROP) has been at the cost of modernisation of the Defence Forces and has forced the Government to drastically cut the outlay on Capital Expenditure; namely new acquisitions.
The above hypothesis is nothing but misinformation meant to discredit the veterans in the eyes of the countrymen. It needs to be understood that like any other profession, including media persons, soldiers (sailors and airmen included) have also to be paid for their service to the Nation. Traditionally and the world over, military salaries and pensions are inter-related and interlinked. Military pensions have a special significance, i.e. these are deferred wages as Service personnel retire young, depending on different ranks. Secondly, they have to be compensated for hazards of military service which are substantial and unique.
Unlike the civilian employees where the EPF has a matching contribution of 12 per cent from the government or the employer (8.33 per cent of this is the pension component), there is no such matching contribution for the Armed Forces personnel, be they officers (DSOP Fund) or personnel below officer rank (AFPP Fund). These funds are entirely their own savings.
It is grossly unfair to link forces modernisation or its combat readiness to military salaries and pensions. The size of the Armed Forces is determined by external threats to a country’s security. Human Resource is the most important component of military capacity and is as important as the military hardware. As for any government / private / corporate sector this human resource for the military has to be compensated by salaries and pensions catering for their special conditions of service and should not be grudged, least so by media who shape public opinion.
The report also brings out that clubbing the defence pensions under the Defence Budget gives a false impression of substantial increased allocation of nine per cent where as in actual fact, it is barely 1.16 per cent. The reasons for this need to be gone into. Perhaps, here also the aim appears to be to discredit the OROP. Traditionally till 1973, military pensions have always been based on the principle of “same pension for the same rank and length of service, irrespective of the date of retirement”. There was no reason to change that as the nature of job or conditions of service have not changed. In fact, by denial of OROP since 1973 successive Governments have saved substantial sums of money and the amount now being given, i.e. about 8300 crores amounts to a pittance.
Such articles, like the one in question do more harm than good to any cause of the nation. Above all, it is important to be first educated on the structure, functioning and responsibilities of the Defence Forces before writing on military matters.
Major General PJS Sandhu (Retd) is the Deputy Director and Editor at USI.