Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Wednesday 8 July 2015

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

hcp@RecruitGuru.com

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