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Ministry of Defence

ONE RANK ONE PENSION (OROP)

Posted On: 03 NOV 2021 15:27 PM

One of the long-standing demands of the Indian armed forces, One Rank One Pension (OROP), implyingthat retired soldiers of the same rank, who have retired after serving for the same length of service, will receive the same pension, irrespective of the date and year of their retirement, implemented.

Key Points:

 

  1. Ex-Servicemen had been requesting for implementation of OROP for more than 40 years, but it was not finalized until 2015.
  1. The historical decision to implement OROP was taken on 7th November 2015, with benefits effective from 1st July, 2014.
  1. The ‘One Rank One Pension’ had been considered in the past by various committees and bodies and was generally not found acceptable.
  1. K.P. Singh Dev Committee (1984): The Committee recommended that the Government should consider the issue of ‘One Rank One Pension’ particularly in the light of the principle, which has been already established with respect to the pension of judges of the Supreme Court and the High Courts.
  1. 4th Central Pay Commission: The Commission observed that it is difficult to accept the suggestion for equalization of pension. Moreover, this would involve considerable administrative and accounting work without conferring any uniform benefits to various categories of pensioners.
  1. Sharad Pawar Committee (1991):  No specific recommendation on the issue of ‘One Rank One Pension’ was given by the Committee.
  1. 5th Central Pay Commission: The Commission did not recommend grant of ‘One Rank One Pension’ by stating that every Pay Commission gives certain benefits in pay which are over and above the impact of inflation, either due to upgradation of recruitment qualifications or change in job contents. The benefits accorded on this account need not necessarily be passed on to the pensioners.
  1. RM’s Committee Report (June, 2003): The RM’s Committee left the issue to be considered by the Inter-Ministerial Committee set up by the Government on the issue of ‘One Rank One Pension’.
  1. Inter-Ministerial Committee: An Inter-Ministerial Committee was set up on 27.02.2003 by the Department of Pension and Pensioners’ Welfare to consider the demand of ‘One Rank One Pension’. The Committee, in its report submitted on 24.09.2004 did not favour grant of ‘One Rank One Pension’, but recommended grant of modified parity based on the maximum of the revised scale of pay introduced with effect from 01.01.1996 for PBOR (Personnel Below Officer Rank).
  1. 6th Central Pay Commission: The 6th CPC has also not recommended ‘OROP’.
  1. Cabinet Secretary Committee, 2009: The Committee went into this demand and other related issues, but did not recommend ‘One Rank One Pension’. However, it made seven recommendations aimed at narrowing the gap between past and current pensioners.
     
  2. Standing Committee: The Standing Committee in its 7th and 9th (15th Lok Sabha) Report again reiterated their stand on ‘One Rank One Pension’.
  1. Rajya Sabha Petition Committee: Rajya Sabha Petition Committee in its 142nd Report stated that the Government should implement ‘One Rank One Pension’ in the Defence Forces across the board.

 

  1. Cabinet Secretary Committee (2012): The Committee did not recommend implementation of ‘One Rank One Pension’, however, it recommended various other ways to enhance pension of past retirees.
  1. The Government accepted the ‘One Rank One Pension’ through its mention in the President’s address to both Houses of Parliament on 09.06.2014.
  1. An allocation of Rupees 1000 crore was provided in the Budget 2014-15 for implementation of OROP.

Benefits: Salient Features of the OROP Order

  1. Pension of past pensioners would be re-fixed on the basis of pension of retirees of calendar year 2013 and the benefit will be effective from 01.07.2014.
  1. Pension will be re-fixed for all pensioners on the basis of the average minimumand maximum pension of personnel retired in 2013 in the same rank and with the same length of service.
  1. Pension for those drawing above average shall be protected under OROP.
  1. Arrears will be paid in four equal half yearly installments. However, all the family pensioners including those in receipt of special/liberalized family pension and gallantry award winners shall be paid arrears in one installment.
  1. Pension would be re-fixed every 5 years.

Financial Benefits:

  1. A sum of Rs 10,795.40 crore has been disbursed to 20,60,220Defence ForcesPensioners/Family Pensioners as arrears on account of implementation of OROP.
  1. The yearly recurring expenditure on account of OROP is about Rs 7,123.38 crores.
  1. Benefits of fixation of pension fall under 7th Central Pay Commission.
  1. For about 6 years starting from 01.07.14, the total expenditure was over Rs42,740 crore.
  1. OROP beneficiaries got the benefit of fixation of pension under 7th CPC while calculating the pension by multiplication factor of2.57.
  1. Year-wise details of actual expenditure made on release of arrears for implementation of OROP are as under:
  • 2015-16: Rs. 2,861.55 crore
  • 2016-17: Rs. 5,370.61 crore
  • 2017-18: Rs. 2,563.24 crore

TOTAL – Rs.10,795.40 crore

 

Source: PIB e-Booklet on One Rank One Pension (OROP)

 

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