Thursday, 9 July 2015

A Time to Introspect ?

amitabh.kant@nic.in




Dear Amitabh ,


You may like my following blog

with regards,


hemen

PS :

I have not heard so far from MakeInIndia web development team but I presume they are working on hyper linking

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One   Rank ,  One   Pension   (  OROP  )
 

As against 14 lakh serving military personnel , there are some 25 lakh retired military persons , in India , today


They are demanding , " One Rank , One Pension "


In simple terms :


>  Col Mhatre retired in 1985 , with last drawn salary of Rs 10,000 pm


>  Col Chari retired in 2000 , with last drawn salary of Rs 50,000 pm , and


>  Col Patel retired in 2015 , with last drawn salary of Rs 100,000 pm


They all served for 30 years at the time of retirement


As per present Pension Rules, by way of pension :


>  Col Mhatre may be getting Rs 2000 pm


>  Col Chari may be getting Rs 10,000 pm


>  Col Patel may be getting Rs 20,000 pm


Under OROP , all of them would  today , get Rs 20,000 pm  !


And as salaries keep climbing , with each passing year , they will all keep getting the same amount as pension, as the latest retiree in the same rank , who has put in same length of service , at the time of retirement


A kind of " Indexation " , aimed at neutralizing the ever-rising " cost of living " which is same for all three retirees !


And , the argument goes :


" Why not ?


  Those who are serving , get their " cost of living " neutralized thru DA ( Dearness Allowance ) which automatically keeps rising every month , as CPI / WPI etc rise !


Why should early-retirees be made to suffer , for having been born earlier / served earlier ? "


One cannot find fault with such an argument !


But if OROP is implemented , the Governments ( Central + States ) must get ready with answers to the following :


>   Will this lead to similar demands from millions of retired para-military forces and Police personnel , in all the States  ?


>  Could this lead to similar demands from all retired Civil Servants , at the Centre as well as , in the States ?


>  Can this demand find an " Echo " in all retired Municipal / Panchayat employees , all over India  ?


>  Will private sector retired employees make similar demands on Corporate Employers  ?


After all , no retiree ( of any kind ) , can escape the ravaging effects of ever - rising inflation ( cost of living )  ! Be rest assured , they will all be justified in making similar demands  !


This raises following further questions :


>  Will this set in motion , a Vicious Circle ?


>  Will this make India , a " High Cost Economy "  ?


Only time will tell


But one thing is crystal clear


Each succeeding generation will be required to bear the burden of ensuring that its preceding generation manages to live a life of dignity , which could well run into Rs lakhs of Crores  !


I cannot escape comparing this potential scenario with the present Greek Tragedy , where almost all citizens ( whether serving in Government or in private companies ) ,


>  Retire at the age of 50


>  For the rest of their lives , draw a pension equal to 90 % of their last drawn salary !


I am not against OROP


I am for creating awareness of the issues and for starting a National Debate


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hemen  parekh

09  July,  2015


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