Defusing The Pension Bomb

A leaked defence ministry note proposing pension cuts triggers controversy. But without major reforms, the Indian Armed Forces’ pension problem is unlikely to disappear

- Sandeep Unnithan

Over the past 11 months, India’s first Chief of Defence Staff(CDS), General Bipin Rawat, has opened many fronts in the battle for reform. He has attempted to bring down military expenditure, create new joint commands and encourage joint manship among the forces. All of these are part of his mandate to create a leaner, meaner military. The Department of Military Affairs (DMA), which he heads within the MoD (ministry of defence), is responsible for ‘all major aspects of armed forces functioning’—this includes the organisation, recruitment, training and terms and conditions of service for personnel, as well as career management of all ranks of service members.

However, some of his proposals, though well-meaning—like cutting down on ceremonies and the number of officers’ messes in peace stations—have attracted scorn from service members and turned into social media flamebait. Yet nothing has created as much discontent as the proposal to increase the retirement age of Indian Army personnel and to slash defence pensions. Among other changes, the proposal suggests the retirement age for colonels be increased from 54 to 57, brigadiers from 56 to 58 and major-generals from 58 to 59. The DMA wants a similar increase in retirement ages for personnel in the navy and air force as well.

Another proposal is that officers who retire prematurely should get only a percentage of the stipulated pension: for instance, those with 26 to 30 years of service would get only 60 per cent and those with 31 to 35 years of service would get only 75 per cent of entitled premature retirement pensions (see