Thread #OROP fallacies over social media.
1. 'In 1973, Indira Gandhi terminated ‘One Rank One Pension.'
2. 3rd CPC increased pension of civilians from 30% to 50% & reduced pension of PBORs from 70% to 50% of basic pay. Facts submitted are courtesy Wg Cdr RK Bali & AM SY Savur
For ease of understanding, I will try & split this into two sub threads.
1. Circumstances Pre 3rd CPC (Headed by Justice Raghubir Dayal) &
2. Post 3rd CPC.
P.S. 3rd CPC was the first Commission to review pay & allowances of The Armed Forces of India.
@arunp2810
@rwac48
Pay & pensions were lower than those of British personnel in the Indian Army. During WW2, these were hiked. After the war, these were reduced & brought at par with civilians. Post Independence, pensions were fixed by Armed Forces Pension Revision Committee (AFPRC).
AFPRC recommendations were implemented wef 01.06.53. Pensions remained more or less fixed till next pay commission for civilians was finalised. A Lt Col drew a fixed pension of Rs.625/- from Jun 1953 till Oct 1961. No DA/DR was admissible to pensioners before 3rd CPC.
Later pension was increased to Rs 675 in Oct 1961. In Sep 1970 pension was reduced to Rs 587/- to compensate for grant of Death Cum Retirement Gratuity (DCR).
PBORs upper retirement age was 50 years for Army & 55 years for other two services. For officers and PBOR,...
..AFPRC used formula of 1/60 to work out pensions rank wise. Max pension was capped at 30 years of service. Person retiring with 30 years or more of service got a pension 30/60 (50%) of rank emoluments. Instead of indl calculation of pension, it was done as per rank.
Rank was to be held for at least 2 years to get pension for the same rank. However, it was based on the minimum pay of the rank for officers & mean of the pay group for PBOR. There was a depression of 2 years for PBOR who served from 15 years to 25 years.
Therefore soldiers were compensated for 13 years of service while they actually served for 15 years & so on. This anomaly was removed in 1968. Service pensioners did not receive any DCR till 1970. In 1970, DCR was introduced. Civilians were receiving DCR since 1950 with
their pensions reduced proportionately from 1/60 (50%) to 1/80 (37.5%). Loss of pension was 12.5% to compensate for DCR. On similar lines, to compensate for DCR in 1970, officer's pension was reduced by appx 8% and PBOR 11%. It is evident that before 3rd CPC a PBOR
retiring with 30 & more years of service got 30/60 (50%) less 11%, appx. 39% of his emoluments as pension. It is clear that no PBOR got a pension of more than 39% of emoluments contrary to the belief that the PBOR pensions were 70% before 3rd CPC and OROP was in vogue.
Indra Gandhi, for the first time, introduced Liberalised Family Pension for war widows & their children. It was made effective from 1947 to include all past ops including CI Operations. In case of death of an Armed Forces personnel under certain circumstances, ...
the eligible member of family was entitled to Liberalised Family Pension equal to reckonable emoluments last drawn, both for officers & PBOR. Liberalised Family Pension was admissible to the widow in the case of officers and to the nominated heir in the case of PBOR
until death or disqualification.
G.O.I, M.O.D. vide letter No. 200847/Pen-C/71 dt. 24.2.72, decided to grant Liberalized Pensionary Awards equivalent to basic pay +increments +rank pay +good service pay+ dearness pay + home saving element to the nominated heir of PBORs
of Armed Forces pers as well as NCs(E), (including APS & DSC personnel), who were killed in action or disabled in operations - both external & internal.
As far as Civilian pensions were concerned, retirement age varied from 50 years for senior officers to 58 years..
for class 4 employees. Till 1950, their was no DCR & their pension was based on 1/60 formula and capped at 30 years of service. They received 30/60 (50%) of the last three years of average emoluments as pension. In 1950 DCR was introduced and their maximum pension...
reduced to 30/80 (37.5%). This continued till 3rd CPC. Therefore, Civilians as well as PBORs were drawing less than 40% of emoluments as pension by more or less using similar formulas. Both were getting similar DCR too. There was no DA/DR for any one. PBORs had no...
advantage on account of early retirement.
In 1972, vide the same letter under reference, civilians serving in field fmns (cooks, washermen, water carriers etc.) were given uniform & made NC(E)s.
@VishnuNDTV @manaman_chhina @sudhiranjansen @ajaynewsman @HappymonJacob
Civilian pension formula wasn't altered much. Significant change was to increase qualifying service for pension from 30 to 33 years. Thereafter, max pension improved to 33/80 (41.25%) for 33 years of service. Formula for DR was worked out.
@kjsingh2 @shreyadhoundial
The relief was to be given as & when there is a 16 points rise in the 12-monthly average of the All India Working Class Consumer Price Index (1960=100).
On the other hand, service pensions were revamped. Same 33/80 formula was used to work out defence pensions.
There was no change in rank criteria for earning pension. Pensions were granted as per rank held for two years. Improvements were done to base pensions on the maximum pay of the rank and not minimum/mean pay as was the case earlier. Main highlight of 3rd CPC was that..
for the first time weightage was given to Armed Forces for early retirement and DR granted. PBORs, Lt Cols,Colonels & Brigs got a weightage of 5 years, Majors 6 years and Captains & below 7 years. This resulted in a PBOR retiring with 15 years of service getting a...
pension @ 20/80 (25%) compared to 15/80 (18.75%) received by a civilian. A PBOR retiring with 28 years of service received 33/80 (41.25%) in comparison to a civilian who received a lower percentage of 28/80 (35%). For the first time since Independence Armed Forces had
Blaming Mrs Indra Gandhi for punishing Armed Forces for winning the war and rewarding civilians instead is an absurd statement without any truth in it. Unfortunately, we fall into these traps and circulate these with out verification.