Tuesday, 17 May 2016

Through the Looking Glass, Nothing is What it Seems



Through the Looking Glass, Nothing is What it Seems
Faith: not wanting to know what is true.

- Friedrich Nietzsche
[ http://www.brainyquote.com/quotes/authors/f/friedrich_nietzsche.html]

If you want people to get to believe something really, really stupid,
 Just stick a number on it.
- Charles Seife
Proofiness: The Dark Art of Mathematical Deception (Viking Publishers)
*        *        *        *        *
Caution
1.       The contents of this post are based on notes taken down when the Chairman, Army Pay Commission Cell (APCC) gave a PowerPoint aided description by Services HQ on anomalies in the 7th CPC Report and on OROP at the ASC Centre & College auditorium, Bangalore on 13 May 16. It was to be followed up with an interaction with this author.        

2.      As the interaction with Chairman APCC did not take place, many aspects  of his presentation/talk could not be discussed and clarified/confirmed for a better understanding of the Services’ perspective. Therefore, this post attempts to place information as jotted down by this author while Chairman APCC went through his presentation/talk, and the analysis is based on available information in the public domain. For ease of reference the source(s) of information have been quoted in appropriate places.
Summary of Presentation/Talk
3.       Chairman, APCC summarised his presentation/talk as follows: -
(a)     The contents of the presentation/talk have been discussed with the Hon’ble Raksha Mantri and also with the Empowered Committee of Secretaries (ECoS),         
(b)     MSP for Officers is at a lower percentage than for JCOs/ORs. MSP for JCOs should be higher than for ORs.
[Comment by Aerial View: - Factually, the Lt gets 27.6% and the Sepoy gets 23.96% of respective Basic Pay.]
(c)     Risk & Hazard Allowance – there is a gain for junior officers and JCOs/ORs (2 to 5 times).
 [Comment by Aerial View: - please see in RHA below.]
 (d)    Training Allowances – all ranks gain (from 24% for officers to 12% for JCOs & ORs)
(e)     By introducing HRA for all ranks, there is an all-round benefit for JCOs/ORs.
 [Comment by Aerial View: - HRA is paid for all ranks from 6th CPC onwards.]
(f)      Pension calculation option II is better than Pension calculation option I.
(g)     Necessary provision has not been made for truncated career span and resulting in lesser life-time earnings for ORs.
[Comment by Aerial View: - MSP is element for truncated career as stated in th 7th CPC Report.]
(h)     Disability benefits for Defence personnel on the slab basis is less advantageous than the percentage basis for civilians.
(j)      Not Attributable Nor Aggravated (NANA) clause – onus has been shifted to Authority in all cases.
(k)     National Pension Scheme (NPS) – disinformation is being spread by civilians that it is disadvantageous because the element of 10% matching contribution by Govt is not being mentioned.
(l)      Separate pay matrix for Defence personnel is disadvantageous.
(m)   Non-reciprocity and lack of rationalisation in allowances
(n)     Incorrect pensionary awards with no weightage and hence adverse for JCOs/ORs,
[Comment by Aerial View: - Weightage was removed even in 6th CPC tenure.]
(p)     JCOs should have GP of Rs 4200, Rs 4600 and Rs 4800 as they are Class B Gazetted officers.
(q)     Joint Services Memorandum is available on the Army intranet.
(r)     In reply to a question, Chairman APCC stated that rumours that 7th CPC recommendations would be made applicable to those paid OROP vide MoD letter of 03 Feb 16 only in  2018 is disinformation spread to vitiate the environment.   [Comment by Aerial View: - Cassandras and Defence experts on TV may like to factor this into their future comments and TV appearances.]
Core Anomalies
4.      The 5 core anomalies were understood to be as follows: -
          (a)     Shortened pay matrix for Defence Forces,
          (b)     Stagnation for middle rank officers in the above pay matrix,
          (c)     Depression of Grade Pay,
          (d)     Non-Functional (Financial) Upgradation, and
          (e)     HAG+ Grade for all Lt Gens.
Proposal & Analysis
5.       Briefly, this is what the composite Pay matrices up to Col/NFSG (SG) would look like: -

Lt
Civilian
Capt
Civilian
Major
Civilian
Lt Col
Col
Civilian
GP
5400
5400
6100
6600
6600
7600
8000
8700
8700
EP
21000
21000
22960
25350
25980
29500
45400
48900
46100
Lvl
10
10
10B
11
11
12
12A
13
13
Index
2.67
2.67
2.67
2.67
2.67
2.67
2.57
2.57
2.57
1
56100
56100
61300
67700
69400
78800
116700
125700
118500
2
57800
57800
63100
69700
71500
81200
120200
129500
122100
3
59500
59500
65000
71800
73600
83600
123800
133400
125800
4
61300
61300
67000
74000
75800
86100
127500
137400
129600
5
63100
63100 (4)
69000
76200
78100
88700 (13)
131000
141500
133500
6
65000
65000
71100
78500 (9)
80400
91400
135200
145700
137500
7
67000
67000
73200
80900
82800
96900
139300
150100
141600
8
69000
69000
75400
83300
85300
99800
143500
154600
145800
9




87900
102800
147800
159200
150200

Numerals in brackets (4), (9), and (13) indicate the increments on promotion for IAS/IFS (and soon IPS and IFoS) officers is/will be. 
6.      Common Pay Matrix: - This author understood from what Chairman APCC said that the Services HQ are demanding a common pay matrix in the following manner: -

Lt existing
Capt existing
Capt prop
Major existing
Major prop
Lt Col existing
Lt Col prop
Col existing
Col prop
GP
5400
6100
6600
6600
7600
8000
8700
8700
8900
EP
21000
22960
25350
25980
29500
45400
48900
46100
48900
Lvl
10
10B
11
11
12
12A
13
13
1
Index
2.67
2.67
2.67
2.67
2.67
2.57
2.57
2.57
2.57
1
56100
61300
67700 à (I)
69400
78800 à (II)
116700
125700 à (III)
118500
131100
2
57800
63100
69700
71500
81200
120200
129500
122100
135000
3
59500
65000
71800
73600
83600
123800
133400
125800
139100
4
61300 (4)
67000
74000
75800
86100
127500
137400
129600
143300
5
63100
69000
76200
78100
88700 (13)
131000
141500
133500
147600
6
65000
71100
78500 (9)
80400
91400
135200
145700
137500
152000
7
67000
73200
80900
82800
96900
139300
150100
141600
156600
8
69000
75400
83300
85300
99800
143500
154600
145800
161300
9



87900
102800
147800
159200
150200
166100
 [Notes: -
1.         Prop - proposed
2.         Depression of GP would be corrected by placing the Major in GP Rs 7600 (Level 12), Lt Col in GP Rs 8700 (Level 13A), Col in GP Rs 8900 (Level 14) and Brig in GP Rs 10000 (Level 15).
2.         à (I) on completion of (4), à (II) completion of (9), and à (III) completion of (13) years service indicate the commonality being sought corresponding increments on promotion for IAS/IFS (and IPS/IFoS) on completion of (4), (9) and (13) years of service.
3.         Chairman 7th Army PCC elucidated that two different ranked Defence officers can be in the same level “because in Defence Forces what matters for seniority is Rank, not pay.
Caution:
1.         It could not be noted whether Defence Forces officers will continue in the common matrix with higher Entry Pay (EP) or EP will be same as in Pay matrix for civilians.
2.         The above Common Pay Matrix is an approximation of what was screened.
3.         The above table may not be entirely correct due to inadequate time for this author to copy down details.]   
The proposed implementation of the Common Pay Matrix (as understood)
(a)     Lt ‘A’ (and equivalent, hereinafter) enters level 10 of the Pay Matrix at Grade Pay of Rs 5400 and Basic Pay of Rs 56100.
(b)     Lt ‘A’ when promoted to Capt (after 2 years service) continues down same Level 10 till the 4th year of service and reaching Basic Pay of Rs 63100 but at this stage his Grade Pay will be enhanced to Rs 6600 (not Rs 6100, because it is inferred that Grade Pay has been depressed).
(c)     At the 5th years stage, Capt ‘A’ transitions to the next Level 11 and Basic pay of Rs 76500 but retains Grade Pay of Rs 6600 till completion of 6th year.
(d)     On completion of the 6th year, Capt ‘A’ is promoted to Major, and enters remains in Level 11 with an increased Grade Pay of Rs 7600 (not Rs 6600) till he completes 9th year of service. At this stage Major ‘A’ enters Level 12. 
(e)     On completion of 13th year of service, Major ‘A’ is promoted to Lt Col and enters Level 13 with a higher Grade pay of Rs 8700 (not Rs 8000) and Basic pay of Rs 125800.
(f)      In the 18th year Lt Col ‘A’ enters level 13A as a Colonel with Grade pay of Rs 8900 (not Rs 8700).
(g)     In the 24th year Col ‘A’ is promoted to Brig with Grade Pay of Rs 10000 (not Rs 8900) and enters level 14.
(h)     In the 28th year Brig ‘A’ is promoted to Maj Gen and continues in level 14 and GP of Rs 10000 with transit to Level 15 or HAG (presently Rs 67000-79000) to avoid stagnation.
(j)      As Lt Gens will be in HAG+, Maj Gen ‘A’s emoluments will not be impinging on them. 
7.       Depression of Entry Pay in Defence Pay Matrix: - The following may be considered vis-à-vis anomaly that entry pay is depressed by the amount of Grade Pay (GP):-
(a)     If there is a proposal for factoring the current timeline for functional promotions in the Defence Services in preparing common replacement scales, then the present position would contradict it. 
(b)     Entry pay is a function of existing (6th CPC) GP approved by the Govt of India after consideration of the representation by Defence Forces (who maintain that the GP recommended by the 6th CPC was one stage level lower). 
(c)     Seeking a common pay matrix does not take into consideration that the GP issue has been settled by the Government after CSCs recommendations of 2009 and 2012. Therefore, consequent to the disposal of the Defence Forces representation, there may be no justification for seeking a common matrix based on the 6th CPC GP regime.
(d)     The entry pay for Defence Forces officers is correct and higher in the light of the GP actually sanctioned. The 7th CPC has gone by available evidence and not dictated by what is demanded by Services HQ. Factually, the entry pay is better for Defence Forces than for civilians granted the same GP.
(e)     So as long as the GP is not revised and the approved 6th CPC rates prevail, there is no rationale in seeking a common pay matrix. In fact the Colonels and Brigadiers (and equivalents) are distinctly higher than NFSG (SG) and DIG levels in the civil side.
(f)      Chairman, APCC could not be asked to clarify
(i)      Whether by demanding a common pay matrix, the Defence Forces would surrender the edge in entry pay for common levels in junior and middle ranks (Major Rs 630 per month, Colonel Rs 2800 per month). Unless the intention, unstated of course, is that it will be in just as entry pay of Maj Gens and their respective civilian counterparts is the same, or
(ii)    Defence Forces want to maintain the above Entry pay advantage and seek two increments on completion of 4, 9, and 13 years.
8.      Stagnation and Length or span of Defence Pay Matrix: -        The length or span of the Pay matrix (indices) for Defence Forces needs to be seen in the light of the following: -
(a)     Recommendation of every CPC is meant for those who come into the regime in a steady state.
(b)     The new Pay matrix does not take into the effect those who come to new scales having transited from the previous pay commission in higher indices i.e. more increments,
(c)     The supposed ‘anomaly’ appears to be that the pay matrix for Defence Forces is faulty as it will lead to stagnation especially in the senior ranks (Brigs and above). To begin with this is not something that 7th CPC thrust upon the Services and is being misconstrued as an anomaly of the 7th CPC. The seniors in any rank, if not promoted, will stagnate at some point in time as the pay scales are finite and not meant to obviate stagnation. If that was so, there would have been no need for stagnation increments at all.

(d)     Civilian employees who may continue in service in levels 1 to 9 even if not promoted to superannuate at age of 60 years. Defence Forces personnel transit from one level to the next at specified intervals, subject to fulfilling certain requirements and being in promotable medical category. So they are either promoted to the next level if found fit, or exit through compulsory retirement at different, but lesser ages (except for Lt Gens and equivalents who serve till the age of 60 years).
(e)     Thirteen (13) is the maximum number of years that any Defence Forces officer will hold the same rank (in the case of Lt Col and equivalent). A Lt Col and equivalent’s Level 12A has 17 indices (increments) and the NFSG (SG) Level 13, which has 20 indices (increments).
(f)      To “stick a numeral” (as disparaged by Charles Seife), take the example of a Lt Colonel and equivalent (commissioned at 21 yrs of age; DOB 1.1.1979) in today’s Defence Forces to whom the pay matrix will be more applicable. Assuming the earliest consideration for promotion by a Promotion Board may soon be at 16 years of service for Colonel and equivalent, who on promotion will be 37 years of age on say, 1.1.2016.
(g)     If he/they is/are not promoted, he/they will be promoted to Colonel & equivalent (TS) on completion of 26 years of service (age 47 years; date 1.1.2026) at level 12A, index (increments) 13, BP Rs 166300.   
(g)     He/they will enter the Colonel (Time Scale) and equivalent in Level 13 in index 11, Basic Pay Rs 168900, age 47 years on 1.1.2026 (i.e. probably in the 8th CPC!)
(j)      Pay Matrix for Defence Forces at Level 13 has 15 indices. The Colonel & equivalent may stagnate, at index 16, or 5 years after being promoted Col (TS) & equivalent, age 52, date 1.1.2031, for two years and superannuate at age 54 years on date 1.1.2033 if 8th CPC makes no changes on 1.1.2026 to the Levels, indices, methodology adopted by 7th CPC.
(k)     In the absence of the efficiency bar, other than just lesser number of vacancies, one also needs to consider the relative efficiency vis-à-vis juniors who have been considered along with them but are promoted ahead of them in two subsequent Promotion Boards.
 (l)     Brigadiers and equivalents stagnated in 4th CPC the moment they were promoted. Major Generals and Brigadiers (and equivalents) both stagnated on promotion itself in 5th CPC as the scales of both ranks were overlapping. Similarly in later part of 6th CPC, despite an open ended running pay scale, the Major General and equivalent are stagnating on promotion date itself while today 24 Brigadier and equivalents have progressed to draw more total emoluments than VCOAS/Army Cdrs (and equivalents). The Brigs are drawing Pay in the Pay Band of Rs 67000 + Grade Pay Rs 8900 + MSP Rs 6000 = Rs 81900). And now the Brig & equivalents are stagnating at the maximum!!

(m)   7th CPC, probably learning from this experience, has maintained the start and end points of Levels 14, 15 and 16 at the same indices in both Pay Matrices.
9.      It is germane that one considers two Standing Committee Reports to Parliament, which may have a bearing on stagnation and the way it is being handled by MoD and Services HQ.
A.      Standing Committee on Defence (2008-2009) (Fourteenth Lok Sabha), Ministry of Defence Thirty Second Report, December 2008 – Recommendation (Para Nos.2.53 and 2.54, page 29): -

“The Committee note that the Ministry had constituted A. V. Singh Committee with the representative from Ministry of Defence and Service Headquarters to look into all aspects of the Service conditions of Defence personnel and make recommendation for implementation. The Committee further note that the Ministry have put efforts for Phase-wise implementation of some recommendation of A. V. Singh Committee. The Phase-I is complete and the Phase-II is under scrutiny at the Ministry of Defence. The Committee desire that the Ministry should furnish detailed Action Plan at the earliest for the Phase-II implementation of the recommendations of the A. V. Singh Committee which is under scrutiny of the Ministry of Defence. The Committee note that as per A. V. Singh Committee’s recommendation, an officer shall get the rank of Colonel or equivalent after putting in 26 years of service. After the post of Colonel, there are four more ranks available for promotion. If an officer puts in minimum of three years of service in each rank, he will reach the age of 60 years and it would be difficult to maintain young profile in the armed forces and shall also result in dearth of officers to lead the Armed Forces. The Committee, therefore, strongly recommend that the need of the hour is to examine the whole scheme of promotions (emphasis supplied).

The Committee desire that the practice followed by neighbouring countries for keeping young profile at the senior levels of the armed forces should be examined to take a decision in the matter and the Committee should be apprised in this regard.”

Reply of the Government

A. V. Singh Committee recommendation regarding the reduction of rank/age profile of non-select ranks were implemented in the three services w.e.f. December, 2004. For implementation of remaining recommendation of the report it was desired that the three Services Chiefs should take a conscious views as to whether they were seeking implementation of a new proposal or the recommendations as contained in AVSC Report. The consensus among three Services could not be arrived at as yet and the matter is under consideration in consultation with Service Headquarters (emphasis supplied). [Ministry of Defence O.M. No. H.11013/25/2007/D (Parl) dated 05.03.2008]

B.      Tenth Report of the Standing Committee on Defence (2010-2011) (Fifteenth Lok Sabha) on Ministry of Defence

D. Time Scale Promotion

Recommendation (Paragraph No. 15)

15. The Committee had recommended as under:—

The Committee note that the substantive promotion upto the rank of Lt. Colonel or equivalent in the three services is made by timescale on completion of the stipulated period of 13 years of reckonable commissioned service. However, promotion of the officers to the rank of substantive Colonel not promoted by selection is made subject to their being fit, only after completion of 26 years of reckonable commissioned service. The Committee’s examination has brought out the rank structure in armed forces being of steep pyramidal shape has little scope for the officers to climb up the hierarchical ladder. The opportunities for their promotion are further restricted because of limited availability of training facilities for Higher Command Course. Needless to say that the officers not selected for promotion or for Higher Command Course feel de-motivated which ultimately results in adverse effect on the overall efficiency of the armed forces. The Committee, therefore, desire that in order to achieve the functional efficiency, combat effectiveness, and to keep down the age profile of the brigade commanders or equivalent in the three Services of armed forces, the MoD should take appropriate measures to introduce a system whereby the strength of permanent commissioned officers vis-à-vis SSC Officers is gradually brought to level of 30 per cent of the authorised strength in each of the three Services and the time scale promotions upto the rank of Brigadier and equivalent in all the Services are made by bringing in appropriate reduction in the length of reckonable commissioned service so as to fulfil the individual career aspirations as well as to keep the morale of officers high. The Committee need hardly point out that such a measure would have negligible financial implications consequent upon implementation of new pay-bands in the armed forces besides going a long way in keeping the rate of attrition at lower levels.

16. The Ministry in their action taken reply has stated as under:—

The A. V. Singh Committee had recommended that the ratio of Permanent Commissioned officers to Short Service Commissioned officers should be brought down. The Cabinet has already granted its approval ‘in principle’, to the reduction in the Permanent Commissioned officers cadre and corresponding increase in the support cadre (including Short Service Commission Officers). Specific proposals in this regard, keeping in view the specific requirements of the three Services, are being examined by the Ministry.

17. With regard to the recommendation of the Committee to introduce the system of time scale promotions upto the rank of Brigadier and equivalent in all the Services by bringing in appropriate reduction in the length of reckonable commissioned service, the Ministry has chosen not to respond to the issue. The Committee again emphasize that the said initiative would certainly increase the functional efficiency and keep the morale of the officer high. The Committee therefore urges the Ministry to take expeditious action on the recommendation of the Committee (emphasis in original report).

10.     AVSC in the Command & Exit Policy. In a recent case (UoI vs Lt Col P K Choudhary & Others, Civil Appeal No. 3208 of 2015), the objective of a younger Army in particular (and the Navy & Air Force) was stated to be the reason for the Ajai Vikram Singh Committee (AVSC) recommendations. The Armed Forces have additional posts in select ranks and implemented in a 5 year period as follows: -

Rank
Present
Additional
Total
Pre-AVSC age
Post- AVSC age
Army*
Lt Gen
61
20
81
56-57
55-56
Maj Gen
191
75
266
54-55
51-52
Brig
824
222
1046
50-51
44-45
Colonel
3389
734
4123
41-42
36-37
Navy


Vice Admiral
15
4
19
56-57
55-56
Rear Admiral
43
14
57
54-55
51-52
Commodore/Captain^
418
324
742
40-51
36-45
Air Force


Air Marshal
22
6
30
56-57
55-56
Air Vice Marshal
47
27
74
54-55
51-52
Air Commodore
131
61
192
50-51
44-45
Group Captain
476
415
891
41-42
36-37

[* From Para 4 of judgment of Honourable Supreme Court dated 15 Feb 2016 in Civil Appeal No.3208 of 2015, UoI & Another Vs. Lt Col P K Choudhary & Others.
^ Age for Commodore/Captain (IN) extrapolated.] 
(a)     If that is the reason why almost 1900 vacancies of Colonels and above were sanctioned (with the adverse consequences of top heavy Services), is it time for the Services HQ to consider their promotion and retention policies, given that now retirees are entitled full pension after 20 years instead of the necessity of 33 years as before?
(b)     Disproportionate number of vacancies vis-à-vis number of officers considered in a Promotion Board has been cited as the main reason for lack of promotional avenues by the Services numerous times. So if every officer gets 3 chances, but juniors are selected on merit to be promoted by three successive Promotion Boards over their seniors, does it not mean that the senior has been comparatively less efficient?
11.     Veterans took to the streets bemoaning the disregard by the MoD of the Koshiyari Committee Report on OROP but nobody has mentioned Standing Committees of the 14th and 15th Lok Sabha and the disregard for the recommendations of the two Lok Sabha committees for leaner, meaner and younger Defence Forces!
12.     If the intention of the Army HQ proposal which subsequently became the AVSC is to lower the ages of different ranks, why should Lt Cols (and equivalents) who have not been cleared for promotion by three (3) successive Promotion Boards, continue to earn increments and serve 26 years for a time scale promotion to Cols? Why should superseded General/Flag/Air officers earn increments till superannuation? Isn’t earning annual increments, even after being passed over for promotion, a sort of Non-Functional Upgradation?
13.     The 7th CPC has recommended (in Chapter 5.1.46) withholding of increments of non-performers after 20 years of service for civil services (which the old Fundamental Rule 25 stated “Where an efficiency bar is prescribed in a time-scale, the increment next above the bar shall not be given to a Government servant without specific sanction of the authority empowered to withhold increments”).
14.     Thus, if stagnation because of the shortened Pay Matrix for Defence Forces is being made out into an issue, then it will be contradicting its own proposals to AVSC and MoD.
15.     Stagnation in the Civil Pay Matrix: - Based on the assumption that the qualifying service of an IAS officer commences when he/she is 24 years of age, it will become evident from the Pay matrices that

(a)     An IAS officer aged 37 years has 21 indices in the SAG level and ends at Rs 214100. He/she would be 57 years of age. She/He would, due to the “2 increments on appointment to SAG” policy, also stagnate for 4 years, if she/he is not found fit for promotion to Super Time Scale (Jt Secy) where the empanelment is in the 17th year of service and promotion in her/his turn.

(b)     An AIS officer in GP 8900 (presumed for this analysis) would be aged 42 and would have 18 indices and he/she would be aged 6o years and will superannuate.

16.     The 2 increments Edge vis-à-vis Military Service Pay Edge: -        The Pay Matrices indicate that the Defence Entry pay scales are higher upto Grade Pay of Rs 8900. Total Pay for Defence Forces exceeds the edge of two increments (of 3% each) that AIS Officers get on completion of 4th, 9th and 13th years of service, if one includes MSP, the edge for Defence Forces, into the calculation. The argument of lower entry pay of Defence Forces officers may not stand scrutiny by the Govt as it is not borne out by Pay Matrices in Chapters 5.1 (Civilian) and 5.2 (Defence Forces). As for the argument that the edge of two increments for AIS officers be brought into the equation for comparison purposes but not the edge of MSP, will also sound petty.
17.     The fact is that MSP is a replacement for Rank Pay, which was a proposal of the Defence Forces to the 4th CPC as would be proved by the proceedings of the Services Pay Commission Cells. That MSP introduced by the 6th CPC is an edge (X-factor) is also not the full truth as it is more of a replacement for the Rank Pay in the common pay structure. This is why it is given only upto Brigadiers and equivalent rank and not granted to Major Generals or Lt Generals and equivalents, who did not have Rank Pay ever. If one is to add the MSP element, then the defence pay is better than the civilians at all levels even after taking into consideration the two additional increments for the AIS officers on completion of  4, 9 and 13 years of service.
18.     However, if two increments, i.e. the edge for AIS (Chapter 7.2.38), would result in higher Basic Pay and therefore higher status, there is neither any rationale nor any sensible reason why Service HQ should not point out that MSP, the edge for Defence Forces (Chapter 6.1.31), be added to Basic Pay and the Defence Forces demand that it be reckoned for status/parity/relativity. After all, both are ‘The Edge’, and the double increments for AIS as well as the MSP are paid out of the same Consolidated Fund of India! 

Risk & Hazard Allowance (RHA) at Siachen Vs Special Duty Allowance
19.     First, the Siachen Risk and Hazard allowance is paid for a short stay at the glacier and it has no comparison with the Special Duty Allowance (SDA) being given to civilians. Second, it is still not final that Govt will grant 30% of BP as SDA and even if it does Defence Forces can seek parity only on the ground that all other benefits related to field concessions are being taken away including field service and CI Ops allowances. The proposal in its present form needs to be re-examined comprehensively as one needs to consider the feasibility of SDA in addition to Field Service Allowance for Defence Forces, if that is the case being made out.
20.    The 7th CPC has proposed Rs 31500 and Rs 21000 as (Siachen) RHA for Defence Forces Officers and JCOs/ORs respectively (Chapter 8.10.64 to 8.10.77). At Chapter 8.17.118, the 7th CPC recommends that Special Duty Allowance should be paid at the rate of 30% of Basic Pay for AIS officers and for other civilian employees at the rate of 10% of Basic Pay.
21.   Demanding 30% of Basic (as recommended for All India Services – IAS, IFS, maybe soon for IPS & IFoS Officers also) as Siachen RHA will mean a financial loss as shown below compared to Rs 31500 for officers and Rs 21000 for JCOs & ORs. But if it is at 10% of Basic Pay as recommended for others civilian employees, then the financial lost will be immense: -
Rank
Recommended
Basic Pay
30% of Basic Pay
10% of Basic Pay
Colonel
Rs 31, 500
125700
37710
12570
Lt Col
Rs 31, 500
116700
35010
11670
Major
Rs 31, 500
69400
20820
6940
Captain
Rs 31, 500
61300
18390
6130
Lt
Rs 31, 500
51600
15480
5160
Sub Major
Rs 21, 000
47600
14280
4760
Subedar
Rs 21, 000
44900
13470
4490
Nb Subedar
Rs 21, 000
35400
10620
3540
Havildar
Rs 21, 000
29200
8760
2920
Naik
Rs 21, 000
25500
7650
2550
Sepoy
Rs 21, 000
21700
6510
2170

Disability Benefits – Percentage Vs Slab Rate
22.    In the case of lower ranks the slab rate disability element is beneficial because 
(a)     A Havildar will get Rs 12000 from the slab system while in percentage terms he will get Rs 10320.
(b)     A Lieutenant will get Rs 27000 in slab system compared to Rs 21480 @ 30 %of BP.
(c)     A Maj with BP + MSP of Rs 84900 will get Rs 27000 in slab system while he will get only Rs 25470 if paid @30% of BP.
(d)     The losers, if one may term it that, due to slab rates will be the General/Flag/Air ranks. 
23.     At Chapter 10.2.41, the 7th CPC avers “Armed forces personnel retired with disability attributable to or aggravated by such service and assessed at 20 percent or more are awarded disability pension. Those invalided out with any disability attributable to or aggravated by such service are also awarded disability pension.”
24.     At Chapter 10.2.54, 7th CPC states “While the number of officers retiring with disability element has shown a significant increase at levels of Brigadier and above in recent years, it is notable that since 2010-11, no officer in these ranks has been invalided out.”
25.     7th CPC’s analysis is flawed in its concept as it betrays a lack of the Pay Commission’s reputed holistic view for the following reasons: -
(a)     Invalidment is as per the Guide to Medical Officers issued by DGAFMS. It applies uniformly to all affected personnel, especially as there is now recourse to the AFT and higher Courts for redress.
(b)     As per Chapter III, Regulation 58 (b) of the Army Pension Regulations, “low medical category personnel who are retired/discharged for want of alternative employment compatible with his low medical category is eligible for invalid pension.” So, why should the Armed Forces invalided out those who are otherwise fit for alternative employment?
(c)     Further, Chapter IV, Regulation 82 gives examples like heart and renal diseases, prolonged illness, accidents while on leave etc and,
(d)     Regulation 85 holds that award of disability element of pension otherwise admissible may be withheld or be granted at a reduced rate …..if the personnel unreasonably refuses to undergo an operation or other medical treatment which in the opinion of the service medical authority would cure or reduce the disablement” (emphasis supplied).
(e)     Surely it is not imputed that a Brig or Maj Gen, even Lt Gen with, say heart or renal problems or psychological bi-polar disorder and unfit for alternative employment, is not invalided out while an OR or a JCO with the same disability is? And worse, there has been no appeal by OR(s) or JCO(s) with the same affliction who has/have been invalided out?
26.    Let us look at just the disability but not invalided out category for officers including and above the rank of Lt Col for year 2013-14 (apropos statistics provided by CGDA), at Chapter 10.2.51 & 10.2.52: -
 Rank
Strength
( from CDM except ORs/JCOs )
Disability and superannuated (%)
Actual number with disability but superannuated
Lt Gen & equivalent
132
14.3
19
Maj Gen & equivalent
284
16.5
47
Brig & equivalent
1176
17.6
207
Colonels & equivalent
4100
21.1
865
Lt Col & equivalent
6776
20.8
1410
JCOs/ORs & equivalents
13,19, 481
7.2
95003
27.     Nowhere, right from Chapter 10.2.40 to 10.2.55, there isn’t any mention of any call for information and taking of such evidence from Director General, Armed Forces Medical Services (DGAFMS) who provides, guidelines to Armed Forces Medical Officers for deciding disability, reviews and approves or rejects the recommendations.  
28.    That begs the question affecting the larger number of ORs/JCOs who are entitled to disability benefits - just because a larger proportion, but lesser number, of senior officers with disabilities is not invalided out, does the 7th CPC seek to punish the ORs & JCOs by introducing the slab basis?
29.   However, the silver lining in the case of lower ranks is that the slab rate disability element is beneficial.
(a)     A Havildar or equivalent in the slab will get Rs 12000 while in percentage terms only Rs 10320.
(b)     A Major or equivalent with BP + MSP of Rs 84900 will get 27000 in slab system while he will get only Rs 25470 if paid @30% of BP.
(c)     A Lieutenant of equivalent will get Rs 27000 in slab system compared to Rs 21480 @ 30 %of BP.
Non-Functional (Financial) Upgradation
30.    In one fell swoop, 6th CPC wrote off inefficiency and FR 25 and the bureaucracy embraced the NFU. The Hon’ble Supreme Court, in its judgment in Civil Appeal No. 3208 of 2015 has quoted (Para 4) that the intention of implementing the AVSC was to reduce the ages of officers for attaining the next rank. Presuming that an Army officer is commissioned at 21 years of age, Defence Forces should have a situation as follows: -

S No.
Rank
Pre-AVSC
(age in years)
Years of Service
   Post AVSC
(age in years)
Years of Service


1
Colonel
41-42
20-21
36-37
15-16
2
Brigadier
50-51
29-30
44-45
23-24
3
Maj Gen
54-55
33-34
51-52
30-31
4
Lt Gen
56-57
35-36
55-56
34-35
31.     It is common knowledge that Colonel (Select) are promoted in the 18th year of service (almost the same time-frame as an IAS officer being promoted to the Super Time Scale or Joint Secretary). The Colonel would be 39 years of age, a marginal improvement from before 2004! It is not out of place that the 6th CPC rewarded inefficiency by removing the efficiency bar and recommending non-functional financial upgradation, it itself a paradox of being financially upgraded while being non-functional. Perhaps the (black) humour was lost on the ‘wise’ bureaucrats, and for a decade they have been laughing all the way to respective bank accounts, unfettered by the Efficiency Bar!!
HAG+: Lt Gens vis-à-vis Directors General of Police
32.    Vide Para 4 (a) (ii) of SAI 2/S/2008, Lt Gens who are fit for promotion as Army Cdrs, but overlooked due to lack of residual service of 2 years are granted scale of Army Cdrs (Apex Scale of Rs 80000 – fixed).  
33.     The factual position is as follows: -
(a)     Vide GoI, Min of Personnel, Public Grievances and Pensions, DoP & T No. 14021/3/2008-AIS-II dated 27 Sep 2008, published as GSR 692 (E) in Gazette of India, Extraordinary, Part II, Rule 3, Section D is as follows: -
D      Super Time Scale:
(i)      Additional Director General of Police – Pay Band Rs 37400-67000; plus Grade Pay Rs 12000;
(ii)    HAG+: Rs 75500-annual increment @ 3%)-80000; Grade Pay: nil;            
(iii)   Apex Scale: Rs 80000 (fixed); Grade Pay: nil (by upgradation of one existing post of Director General of Police as head of police force in each State cadre);
Note 2:     The post of Director General of Police in the apex scale shall be filled by selection from amongst the officers holding the post of Director General of Police in the State cadre in the HAG+ scale of Rs 75500 (annual increment 3% - 80000.
34.    Re-produced below is an extract from a post on the blog of Maj Navdeep Singh (Veteran) dated 30 Apr 2009, with his approval: -
Myth: Only 33% of Lt Generals and equivalent would be promoted to HAG+.

Reality: Wrong. It is not that only 33% of Lt Generals and equivalents would be able to attain HAG+. The fact is that at any given point of time, only 33% of total number of Lt Generals (excluding Army Commanders and equivalent) and equivalents would be placed in HAG+. As the top Lt Generals & equivalents retire, the Lt Gens lower in the chain shall get placed in HAG+ by seniority. Hence ultimately, in the present situation (wef 01 Jan 2006), most of the Lt Generals & equivalents (approximately 90%) would retire in HAG+ and the percentage should further go up with time.
Myth: HAG+ is applicable only to Lt Generals of the Arms.
Reality: There is no discrimination between Arms, Support Arms, and Services. All Lt Generals shall be placed in HAG+ by seniority.
Myth: The 6th CPC had lowered the status of Lt Generals & equivalents and the placement of 33% of Lt Generals & equivalents in HAG+ is a rectification of that anomaly.
Reality: The 6th CPC had not tinkered with the status of Lt Generals & equivalents. Even after the 5th CPC, Lt Generals & equivalents were lower than DsGP in pay. The following was the pay equation of Three Star officers of the IPS and the Defence Services post-5th CPC which was continued by the 6th CPC:
Indian Police Service
Defence Forces
Addl Director General of Police
Lt Gen & equivalents
Director General of Police

Selected DGP (one per CPO and one for each State cadre)
Army Commander & equivalents
After placement of 33% Lt Gens & equivalents in HAG+
Addl Director General of Police
Lt Gen & equivalents
Director General of Police
Top 33% of Lt Gen & equivalents
Selected DGP (one per CPO and one for each State cadre)
Lt Gen (Army Commanders) and Lt Gens & equivalents including Corps Commanders who are not placed as Army Commanders due to lack of residual service.

E & O E

23 comments:

  1. Sir,

    Please consider the fwg scenario:-

    Col Selection Board (Illustrative figures after Comd Exit Model)

    Inf - cut off 85%
    Arty - cut off 87%
    Armd - cut off 89%
    Engrs and Sigs -cut off 92%
    Services cut off - 95%

    Can you please tell me, who is 'efficient' and who is not?

    ReplyDelete
    Replies
    1. Sir,

      My apologies as I, for some reason, could not log in into my google account before posting above query of mine and hence it got submitted as an annonymous comment.

      Warm regards,
      - Harry

      Delete
    2. No worries. My analysis is not related to individual arms/support arms/services/branches or individual service.

      I will wait for others with similar views and then write.

      Delete
  2. It is like asking cut off BA Eng (Hon) 85%, BA Eng Litt 87%, BA (Pass) 89%, Commerce 92%, Biology 95%.

    Can you tell us who is better?

    ReplyDelete
    Replies
    1. Exactly Sir, you really cannot! And that is the whole point about efficiency.

      Unless of course we are talking of efficiency in 'vacancy management', then it is abundantly clear to everyone!

      Please read the following link

      http://www.newindianexpress.com/thesundaystandard/Cracks-in-army-over-promotion-discrimination/2016/05/15/article3433020.ece

      Delete
  3. Sir,

    It is like comparing a 100m sprinter with a 3000m steeple chaser with a marathon runner. They are specialists in their area just like Arms, Support Arms and Services are.

    The Army (Navy and Air Force) in their wisdom have decided on ratios of vacancies on 'need' basis. The Army's policy was challenged and was turned down in CA 3208 of 2015. There is nothing in the public domain if the Navy's or Air Force's promotion policies were/are under legal challenge.

    Now look at link http://indianexpress.com/article/cities/chandigarh/a-year-on-army-holds-selection-board-to-promote-officers-to-rank-of-colonel/

    States that 65 vacancies were available for 391 Lt Cols of Arty - i.e promoted were 16%.

    Similarly, 18 vacancies were available for 136 in Armd - i.e promoted were 13%.

    But 137 vacancies were available for EME etc for 230 i.e promoted were 59%.

    Aerial View has used (and highlighted) 'comparatively less efficient' i.e 85% is more efficient than 84% in Arty, but 84% may be as efficient in Services because the promotion percentage is 51%! But what of the Review (Second look-in) and Special Review (Third look-in)cases? Were they as efficient prior to the Second/Third look-in? If not are not comparatively less efficient?

    The article you quote may not have reported the full discourse knowing, as you do, that MS Branch is more secrecy obsessed than the banks in tax havens.

    What is necessary is to introspect whether 100% vacancies are the panacea, then why have promotion boards?

    ReplyDelete
    Replies
    1. Sir,

      Let us take all your points one by one.


      100m sprinter, 3000m steeple chaser, Marathoner..

      1. They may well be specialists as per you alright but army has publicly admitted in SC that services are not even operational (for this there will be lot to pay in the long run!)

      2. Going by your analogy now org wants eight 100m runners (inf) to be given medals (promotions), six steeple chasers (support arms) to be awarded and for marathoners the figure is only three!


      IE link

      Let me tell you the actual selection figures of SB3 result declasified on 25 Apr.

      AC (Batch 2000) - 18/60 - 30%

      Arty (Batch 2000) - 60/172 - 34.88%

      Mech (Batch 2000) - 12/36 - 33.33%

      Int (Batch 1999) - 7/29 - 24.14%

      ASC (Batch 1998) - 24/78 - 30.77%

      AOC (Batch 1998) - 13/50 - 26%

      EME (Batch 1998) - 37/137 - 27.01%

      RVC (Batch 1996) - 1/5 - 20%

      JAG (Batch 2000) - 5/5 - 100 %

      Inf (Batch 2000) D/W cases - 22/25 - 88%

      Inf (previous batches) Spl Review - 6/19 - 31.58%


      Please see, result of review cases of inf is more than fresh cases result of services. And D/W cases of Inf result is at whopping 88% (ever heard that?)!!!

      Also, since 100m finishes early so rightly Inf is ahead (look at batch under consideration) than steeple chasers (in second position) and lastly come marathoners.


      100% vacancies are panacea

      No Sir, no one is claiming 100% promotion, all one expects is some fairness and justice form what is availble within the org.

      And let us not grudge and deny even the basic annual increment to those who were left outside the enclosure just because after the race had long begun, someone decided to change the timings for Ex, Good, Sat, Fail! #CEM.

      Delete
  4. Sir,precise and to the point as always.on the lighter side being located at Bangalore you can seek a second career as a data analyst which as per the TOI is the hottest job around these days :)

    ReplyDelete
    Replies
    1. Data analyst??? What about my status and etc etc???

      This is hotter, at least for some readers!

      Delete
  5. An amazing in depth study and analysis.Sir Hats off to u.Hope the concerned officers in Services HQs study this and the Top Brass apply their brains,particularly to the recommendation of MSP being included, for all purposes as pay-status n parity.Thanks

    ReplyDelete
  6. Sir,

    Thanks a ton for the detailed analysis. Wish the services project their views after taking all aspects into account.

    There is a slight mismatch in the scales as per 6th CPC and the one proposed by the 7th CPC. I don't know if it is due to some misunderstanding at my part or there is some other reason. Sharing the query so that it can be analysed and clarified.

    As per OROP tables the pay of a Lt Col with 21 yrs of service should be Rs 163004/- (Pension*2*2.57 i.e 31713*2*2.57). As per the proposed 7th CPC tables it is Rs 159000/- i.e 143500 plus MSP of Rs 15500.

    Does it mean that we are getting placed at lower pay in the 7th CPC pay matrix. Let others are calculate the figures based on actual figures of existing pay/pension.

    Regards,

    RC

    ReplyDelete
    Replies
    1. Sir,

      What does OROP have to do with the pay matrix? It is pay in the pay band as on 31.12.2015 + present grade pay x rationalisation factor.

      For example Lt Col is 37400 + 8000 = 45400 x 2.47 = 116678 say 116680.

      Now to your pension example and OROP table. New pension will be Rs 31713 x 2.57 = Rs 81502.

      I am not able to understand the 2 x 2.57x 31713!

      Delete
    2. Sir,

      It seems I was not able to put across the point correctly. The explanation is given below.

      As per OROP tables pension of a Lt Col with 21 years is Rs 31713/- and 2.57 is the proposed multiplication factor for Lt Col in the 7th CPC (the pension of Rs 31713 should increase 2.57 times). Since revised pension is 50% (half) of pay the revised pension when multiplied by 2 should give the pay of the Lt Col with 21 yrs of service. Figs as as under:-

      Pension as per OROP table = 31713
      Multiplicatiion factor as per 7th PC = 2.57
      Revised Pension after 7th PC = 31713*2.57 = 81502/-
      Revised pay of Lt Col to get the pension of Rs 81502/ should be double the amount and hence we multiply this figure of pension by 2 i.e 31713*2.57*2 = Rs 163004/

      The pay mentioned in the proposed table of 7th PC for Lt Col with 21 yrs is Rs 159000/ (Rs 143500 plus MSP of Rs 15500).

      Unable to find a reason for this difference between two figures of Rs 163004 and Rs Rs 159000.

      Does the difference between the two means that proposed pay scales are depressed?

      Hope Have been able to put across my doubt.

      With regards,

      RC

      Delete
    3. Sir,

      My assumption is that
      1. The 7th CPC did not have the advantage of the OROP tables methodology.
      2. The 7th CPC has started the pay matrix with Pay of Rs 37400 + GP Rs 8000 = Rs 45400 for Lt Cols.

      3. Lt Col starts at Rs 37400 + GP Rs 8000 = Rs 45400 in 14th year.

      4. With annual increment he arrives at Pay in the Pay Band + GP = Rs 55836 in 21st year.

      5. Multiplying Rs 55836 x 2.57 the pay (even in 7 CPC) comes to Rs 143499 say Rs 143500. Add Rs 15500 as MSP and one gets Rs 158999 or Rs 159000.

      OROP tables have hidden many a googly. From QS 22 to 24.5 years the OROP is Rs 32428 i.e there was no increment; then 25 years QS has Rs 32775 but 25.5 and 26 years QS are the same Rs 32813 again!

      Now how does one explain that? I have been denied information on the methodology adopted by MoD/DESW quoting Sec 8 of the RTI Act, 2005.

      Delete
    4. Sir,

      On a few previous occasions on my own blog, I had noticed a dangerous trend of thought amongst some veterans in relation to the 2.57x factor.

      As there is complexity involved in thinking through the manner in which current fixation of pension should be done based on the matrix, there is a tendency to jump to the conclusion that the simpler 2.57 factor calculation will somehow meet requirements.

      This blog post, as it should have, focused on the relative parities between civilian and armed forces in-service pay. Within the over-all context of disparities that emerge in relation to these issues, the pension parities of older pensioners is equally critical. So, in a sense, OROP and the 7 CPC matrix do need to have a co-relationship.

      In the case of Officers, though some criticism of NFU for civilian group A officers is justifiable on grounds of merit being ignored etc, but at least it does provide for a reasonable parity between older and current pensioners. With the matrix now applicable to civilian pensioners, it is almost as if they will now have the benefit of NFU with OROP.

      Unless services HQs can come to grips with issues like the number of increments to be considered for fixing pensions of older retirees while factoring in their QS and resolving parity issues for retirees in time-bound ranks then armed forces retirees will continue to be at a dis-advantage.

      Just taking the example of Wg Cdr (and equivalent) pensions can serve to bring out what could be involved. https://goo.gl/F1lnRj

      Delete
  7. Dis Pen-The %age system is likely to be more beneficial for a very large no of disabled offrs retirees as,with time scale promotions,
    almost all of them will retire in higher ranks ( lt col/col & higher)& with a service of over 20 yrs will get pension in higher matrix slab.No one is likely to retire as Lt/Maj as given in example given by you.(However the past retirees of Lt-Maj rank will
    stand to loose, the number is very small & progressively reducing).

    ReplyDelete
    Replies
    1. Sir,

      There is a large difference for pensioners in the rank of even Lt Col and Col who would have retired early say in the age bracket of 20-25 years. Take the figures of Lt Col with 21 yrs as given above.

      With a pension of Rs 81502 (Rs 31713*2.57) the disability pension for 100% disability should be Rs 48901/ based on percentage method. But as per slab method it will be only Rs 27000/- i.e a difference of RS 21908/- at the time of implementation. The difference will keep on increasing every year as the DA rates increase.

      Pl also note that Most of the existing pensioners with medical conditions are unlikely to have served till the age of retirement. Up to 5th PC such persons would have taken retirement once they would have reached the figure of 33 yrs (physical service plus weightage) if not earlier.

      The slab system will be only marginally beneficial for ranks up to Maj. But for others the loss could be substantial and most will start getting a lesser disability pension then what they are getting now if the slab system is implemented. This will seriously hurt old disabled pensioners.

      Rgds,

      RC

      Delete
    2. Sir,

      7th CPC's intention is made clear that the number of Cols and above superannuating with Disability benefits has been rising because of the percentage basis.

      Unsaid is perhaps that it is manipulated. If you recall there is loud talk that an Army Cdr got his 'promotable' medical category back when there was rumour that he may be the next COAS.

      You may wish to read Chapter 10.2.

      Delete
    3. "number of Cols and above superannuating with Disability benefits has been rising"
      This is because ,with TS promotions,the bulk of offrs are/would be retiring at col & above.Therefore irrespective
      of when/in which rank the disability has occured the
      offr will get the DisPen in the higher rank in which he is
      superannuating ,which in almost all cases will be Col & above.

      Delete
  8. Sir,

    Thanks for your revert.

    There is some truth about manipulation but is is restricted to very limited number and that too at very senior level. There was a Chief also who either got or was trying to get medically downgraded before his retirement due to hearing issues. Going by the logic of hearing problems a large percentage of armd/arty/infantry offrs should retire in low med cat but the fact that they do not retire in low medical category is a testimony that even in genuine cases the medical categories are not always lowered and loopholes/discretion are available only to a selected few. Pity that some black sheep get involved in such practices and bring bad name to organisation.

    If the number of officers with disabilities have risen then we need to analyse it and put procedures in place so that the system is not exploited. It will not fair to punish all for the misdeeds of select few through a blanket policy. Also accepting different policy for civilians and services will mean that in other fields also different policies for the two can be adopted and most of these policies will be to the detriment of services (going by previous experience).

    Some aspects that need to be taken into account for increased percentage of officers getting disability benefits are:-

    1. Before 1.1.06 anyone taking premature retirement were not entitled to any disability pension. It is only after the implementation of recommendation of 6th CPC that they are entitled to disability pension. Such offrs were given benefits after 2009 once they took up the case. Hence the spike after 2009. Pl note that these benefits were not extended automatically along with other arrears of pay but were given only when the individuals wrote to concerned office (therefore the spike is spread over a few years. I know of an offr who took up the case only in 2013 when he got to know of the change in policy after 6th CPC)

    2. The increase in percentage is also due favorable court judgments in recent years. In case of JCOs/ORs they do not have access to judiciary system due to lack of knowledge, resources and access to lawyers/AFT and hence they have lagged behind in taking the benefits of these court judgments.

    3. By the time one reaches 50 plus there are certain routine problems of blood pressure etc in a large number of individuals and due to court rulings on the subject even such cases are entitled to disability benefits these days. Because of retiring age of offr in 50s more number of offrs are likely to be downgraded on this count.

    4. The tendency to hide the medical condition has undergone a change and more offrs come out with problems due to financial and other reasons.

    Hope the concerned persons in service HQs read these views through your blog here and take appropriate steps to apprise the review committee/enviornment rather than meekly accept the adverse anti services views of 7th CPC on the subject. The planted newspaper articles on the subject after the report was made public is a proof of the anti services bias.

    Opposition of slab system may be looked down upon as it amounts to opposing a policy favorable to ranks upto Majors but it better project all the view points.

    Rgds,

    RC

    ReplyDelete
  9. @Raghu P,

    Your comment was not related to the post or any other topic on this blog. Therefore, it has not been published.

    ReplyDelete
  10. Sir,
    There is an anomoly in the comment of RC on 20 May 2016.
    The pay mentioned in the proposed table of 7th PC for Lt Col with 20 yrs (not 21 yrs) is Rs 159000/ (Rs 143500 plus MSP of Rs 15500).

    ReplyDelete