SOME IMPORTANT RELIEFS IN BUDGET 14-15 FOR EX-SERVICEMEN

ONE RANK ONE PENSION

56.       Hon’ble Members are aware of the long standing demand of the Defence Services for One Rank One Pension (OROP).  It is an emotive issue, it has legal implications, and it has to be handled with great sensitivity.   During the tenure of the UPA Governments, changes in the pension rules applicable to the defence services were notified on three occasions in 2006, 2010 and 2013.  As a result, the gap between pre-2006 retirees and post-2006 retirees has been closed in four ranks (subject to some anomalies that are being addressed): Havildar, Naib Subedar, Subedar and Subedar Major.  There is still a small gap in the ranks of Sepoy and Naik and a gap in the ranks of Major and above.  We need a young fighting force, we need young jawans, and we need young officers.  We also need to take care of those who served in the defence forces only for a limited number of years.  Government has therefore decided to walk the last mile and close the gap for all retirees in all ranks.  I am happy to announce that Government has accepted the principle of One Rank One Pension for the defence forces.  This decision will be implemented prospectively from the financial year 2014-15.  The requirement for 2014-15 is estimated at `500 crore and, as an earnest of the UPA Government’s commitment, I propose to transfer a sum of `500 crore to the Defence Pension Account in the current financial year itself.

EDUCATION LOANS

64.       Hon’ble Members will recall that my predecessor, Shri Pranab Mukherjee, had, in the Budget of 2009-10, introduced the Central Scheme for Interest Subsidy (CSIS) in respect of education loans disbursed after 1.4.2009 under which Government took over the burden of interest for the duration of the period of study and a little beyond.  The scheme brought great cheer to student-borrowers and their families.  However, I have noticed a sense of discrimination among students who had borrowed before 31.3.2009, struggled to pay interest during the period of study, and continued to service the loans afterwards.  I think they deserve some relief.  I therefore propose a moratorium period for all education loans taken up to 31.3.2009 and outstanding on 31.12.2013.  Government will take over the liability for outstanding interest as on 31.12.2013, but the borrower would have to pay interest for the period after 1.1.2014.  It is estimated that nearly 9 lakh student borrowers will benefit to the tune of approximately `2,600 crore.  I intend to provide the funds in the current financial year itself.  Accordingly, a sum of `2,600 crore will be transferred to the Canara Bank, the designated CSIS banker.  Details of the scheme will be announced shortly. 

One rank one pension from apr 2014 just announced by FM in Budget

ONE RANK ONE PENSION IS ANNOUNCED BY SRI. CHIDAMBARAM THE HON'BLE FINANCE MINISTER TODAY IN HIS BUDGET SPEECH. THIS WILL BE EFFICTIVE FROM 1.4.2014. SINCE HE EXPRESSED FURTHER BRIDGING GAP BETWEEN PRE-2006 AND POST-2006, WE MAY GET LITTLE MORE THAN WHAT IS GIVEN EARLIER BUT NOT THE REAL OROP.

Defence Minister withdraws controversial circular ordaining en masse litigation against military veterans ( posted on Indianmilitary.info)

This is in reference to the post of 12 January 2014 in which it had been pointed out that the Department of Ex-Servicemen Welfare (DESW) of the Ministry of Defence (MoD) had issued a letter ordaining en masse appeals in the Supreme Court against judicial verdicts rendered by Courts in favour of military veterans without seeking legal opinion on individual cases. The MoD had also officially admitted that it had filed appeals against disabled soldiers in the Supreme Court in ‘almost all types of cases’.

Mr Rajeev Chandrasekhar of Bangalore, Member of Parliament, had consequently taken up the issue with Mr AK Antony through a letter endorsed on 18 January 2014 followed by another one on 28 January 2014. Now the Raksha Mantri has informed Mr Chandrasekhar that the controversial circular is being withdrawn.

The defence of Mr Antony (though I am sure not his own, but of one of the Under Secretaries of the DESW) in the said matter is interesting. He says that the letter had been issued to simplify decision-making.

Mr Antony, decision-making on what? Of filing ruthless appeals against your own disabled veterans? You wanted to simplify the process of unleashing legal terror on the defenders of your own nation?

Though the circular stands withdrawn, it would be otiose to expect any positive change on ground.

The sadism shall continue unabated till the time the higher bureaucracy and the political executive apply their minds properly to the problems at hand without blindly affixing initials on noting sheets put up from below. 

/

Justice Mathur to head 7th Central Pay Commission

     Former Supreme Court Judge Ashok Kumar Mathur will head the seventh Pay Commission, which will revise salaries of over 50 lakh Central government employees and remuneration of 30 lakh pensioners.

“The Prime Minister has approved the composition of the 7th Central Pay Commission,” the Finance Ministry said in a statement on Tuesday.

“The Prime Minister has approved the composition of the 7th Central Pay Commission,” the Finance Ministry said in a statement on Tuesday.
The announcement for composition of the Commission comes ahead of imposition of model conduct which would come into force once the schedule for the general election due in April-May is notified.
The Retired Supreme Court Judge, who had also headed the Armed Forces Tribunal, has been appointed chairman of the Commission.
The Commission has been mandated to submit its report in two years time and its recommendations would be implemented from January 1, 2016.
The other members of the Commission, include, Oil Secretary Vivek Rae (full time member), NIPFP Director Rathin Roy (part-time Member) and OSD in Expenditure Department Meena Agarwal (Secretary).
Earlier in September 2013, the Prime Minister had approved setting up of the 7th Pay Commission.
The recommendations of the Commission will benefit about 50 lakh central government employees, including those in defence and railways, and about 30 lakh pensioners.
The government constitutes Pay Commission almost every ten years to revise the pay scales of its employees and often these are adopted by states after some modification.
The sixth Pay Commission was implemented with effect from January 1,2006, the fifth from January 1, 1996 and fourth from January 1, 1986.