Answer: Please see the following table to arrive at your own conclusions.
Both the Army Jawan and the Policeman start at the same basic pay of Rs 21700. An Army Jawan also gets Military Service Pay of Rs 5200.
An Army Jawan is retired at the age of 35 onwards. Almost 80% Jawans retire by the age of 40 when they are in the prime of their youth, energy and health. That is time they have maximum family committment. No further employment is assured to them. Hardly 20% get reemployment.Most of them land up doing jobs of security guards at measly salary of Rs 8000 or so.
A Policeman retires at 60 and thus is able to serve another 20 years more than an Army Jawan.
At the time of retirement, Policeman will get pension of Rs 37150 whereas an Army Jawan will get pension ranging from of Rs 21100 to Rs 24000.
Thus a Policeman gets around 65% more pension than the Army Jawan due to the truncated career of the Jawan.
Thus inspite of the much hyped OROP (one rank one pension) and the MSP, an Army Jawan continues to be at a great loss careerwise and pensionwise.
Question 2: Which Pension Formula is the best for the Army Jawans?
Answer: It is believed that before the 3rd Pay Commission, Army Jawan used to get pension as 70% of the last pay drawn compared to the civilians who used to get 33% of the last pay drawn as pension.
Before the 6th Pay Commission, Army Jawan used to get pension based on the 50% of top of the payscale.
However after the 6th pay Commssion, Army Jawan was given pension at 50% of the last pay drawn. Military Service Pay of Rs 2000 was given and included in the pay.
After the 7th Pay Commission, the MSP has been hiked to Rs 5200 and is included in the pay on which pension is calculated at 50% of the last pay drawn.
The following table gives the pension due to the Jawan under the various formulae.
It is very clear, that Jawans were benefitted the most by the pension formula in vogue before the 3rd CPC.
A Jawan retiring after 17 years at basic pay of Rs 37000 would have got pension of Rs 25900 with this formula without any MSP; pension of Rs 21780 with the pre-6th CPC formula. However in spite of getting MSP of Rs 5200, a Jawan will get much lower pension at Rs 21100 after the 7th pay Commission. This repersents a loss of Rs 4800, almost 19% in pension.
Hence it is desirable that Jawans should be given pension at 70% of the last pay drawn.
Grant of MSP along with tinkering of the pension formula has actually lowered the pensions, in fact. Surprising! Sadly, the Pay Commission officials have overlooked this fact.
