My op-ed for DNA on the need
to make Short Service Commission more attractive, introducing contributory
pension, thereby lowering the pension bill and leading to better cadre &
promotional management, and why the current initiatives may require bolder, tougher
& more innovative decisions-
Making
Short Service Commission
attractive in the military
India Needs Short Service
Major
Navdeep Singh
Military circles were abuzz
with the news that the government was finally in the last stages of fine-tuning
a ‘golden handshake’ for Short Service Commissioned Officers (SSCOs) of the
Defence Services in order to make the scheme more attractive and also to reduce
Permanent Commissioned Officers thereby making the military a lean fighting
machine and also bringing down the pension bill.
Nice aim, wrong route.
Always expected to be
notified ‘very soon’, the proposal for a better payout for SSCOs has been doing
the rounds since last many years in a dusty file sent into an orbit in the
unwieldy space between the ministries of finance and defence. Notwithstanding
the same, the proposal as also projected in the media, is quite imbalanced and
shall be of no help in attracting talent or reducing shortages. The interesting
aspect of the issue is that this topic has been discussed and deliberated by a
Committee of Experts constituted in 2015 (Chapter 7.5) by the then Raksha
Mantri, Mr Mahohar Parrikar, in great detail, of which this author too was a
Member, but knowing the ways of the Defence Ministry, the top hierarchy and the
political executive would have been kept in the dark about the recommendations
pertaining specifically to SSCOs.
Firstly, Short Service
Scheme, for the longest period in the past, was operated on a 5 + 5 + 4 years
basis, that is, initial terms of engagement of 5 years and thereafter
extendable till 14 years. In the year 2006, it was changed to 10 + 4 years,
meaning thereby that SSCOs were mandatorily stuck in the military for 10 years
without any assurance of post-release civil employment, without pension and
without protection of seniority in case of joining civil service. The current scheme
therefore is imbalanced, if not exploitative, since it leaves young men and
women in the middle of nowhere at crossroads of life in the fairly senior rank of
Major or Lieutenant Colonel, and many times unemployed at an age when familial
commitments are at peak. The immediate action that is required is hence to
revert to the time-tested 5 + 5 + 4 system or the 7 years terms of engagement recommended
by the Seventh Central Pay Commission.
Secondly, instead of
providing a higher amount of lumpsum payout as a ‘golden handshake’, the
government should explore the possibility of introducing a handsome gratuity
for SSCOs serving for over 5 years and Contributory Pension Scheme for those serving
above 10 years or making them amenable to the New Pension Scheme (NPS) at par
with civilian employees. This singular step would make the scheme most
attractive amongst all other options, perhaps even more than Permanent
Commission, and being contributory in nature, will keep the government’s pension
bill in check. In fact, a contractual scheme with contributory pension could
even be introduced for jawans willing to serve for fixed terms of engagement of
10 years if they do not want to enrol for longer prevalent terms under the
existing defined pension and ‘One Rank One Pension’ scheme, which can continue
for the ones opting for a permanent career in the military. While keeping the
future pension bill controllable, such personnel would be free to pursue other
vocations on their release from the military with a back-up for survival. This
could be complemented with pre-retirement management, technical or skilling
courses, on which the military is already working quite progressively, and which
would equip personnel on contractual terms for life beyond the uniform.
Thirdly, the government must
immediately take steps to restore the limited medical facilities wrongly
snatched from SSCOs in the mid 2000s on the call of the military medical
establishment. Accepting the recommendation of the Committee of Experts for
rightfully restoring medical facilities, the then Raksha Mantri had directed
action on the same in August 2016, but
till date the establishment is resisting the issuance of implementation
instructions based on the directions of the Defence Minister. In fact, taking
the clock further back, Mr AK Antony, in November 2009, had even announced in the
Parliament the extension of the Ex-Servicemen Contributory Health Scheme (ECHS)
to SSCOs, but nine years later, nothing has materialized.
Encouraging the Short Service
Scheme or contractual terms in the military with a balanced contributory
pension scheme is the call of the day. Besides making the military an
attractive option for those who would only like to spend a few years in uniform
and then carry on with the civvy street, it would also make the defence services
leaner and meaner while reducing the overall pension bill of the future. It
would also result in optimum cadre management and better promotional avenues and
prospects for those who opt for a permanent career in the forces.
But the pertinent question,
like always, is whether reformatory and innovative schemes will ever see the
light of the day and whether the political executive and decision-makers would
consult the right people- the stake-holders, the experts, former and current
SSCOs facing the practical predicament of the existing scheme, or would the decision-making
mechanism only rely upon the notings of some bored junior bureaucrats of the
finance and defence ministries sitting in a prosaic section of those grand old
buildings designed with the assistance of Herbert Baker in the 1910s.
Only time would tell.
The
author is an Advocate in the Punjab & Haryana High Court and writes on law,
public policy and military related issues.
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