The Government has
announced the One Rank One Pension scheme for the Ex-Servicemen. This was
announced by the Defence Minister Shri Manohar Parrikar here today. The
following is the statement of the Defence Minister:
“Government of India
respects its Defence Forces and Ex-Servicemen for their valour, patriotism and
sacrifices. The Government is proud of their devotion to duty and bravery. Our
forces, besides vigilantly and gallantly defending the nation, have displayed
exemplary standards of courage and bravery in natural calamities, law and order
situations and other difficult circumstances.
The issue of “One Rank One
Pension” (OROP) has been pending for nearly four decades. It is a matter of
deep anguish that the various governments remained ambivalent on the issue of
OROP. In February 2014, the then Government stated that OROP would be
implemented in 2014-15, but did not specify what OROP would be, how it would be
implemented or how much it would cost. An estimated Rs. 500 crore provided for
OROP in the budget presented in February 2014 by the then government was not
based on any thorough analysis. It is pertinent to mention that the then
Minister of State for Defence in 2009 had, in reply to a question, informed
Parliament that there are administrative, technical and financial difficulties
in implementing OROP. It is for these reasons that the present government took
some time to fulfil its promise.
Prime Minister Shri
Narendra Modi has, on various occasions, reiterated the Government’s commitment
to implement OROP for Ex-Servicemen under military pension. As stated above,
the previous government has estimated that OROP would be implemented with a
budget provision of a mere Rs. 500 crore. The reality, however, is that to
implement OROP, the estimated cost to the exchequer would be Rs. 8,000 to
10,000 crore at present, and will increase further in future.
The Government held
extensive consultations with experts and Ex-Servicemen. The main argument for
OROP is that the Defence personnel retire early and thus are not able to get
the benefits of serving till normal retirement age. Despite the huge fiscal
burden, given its commitment to the welfare of Ex-Servicemen, the Government
has taken a decision to implement the OROP.
In simple terms, OROP
implies that uniform pension be paid to the Armed Forces personnel retiring in
the same rank with the same length of service, regardless of their date of
retirement. Future enhancements in the rates of pension would be automatically
passed on to the past pensioners. This implies bridging the gap between the
rate of pension of current and past pensioners at periodic intervals.
Under this definition, it
has been decided that the gap between rate of pension of current pensioners and
past pensioners will be bridged every 5 years.
Under the OROP Scheme:
The benefit will be given
with effect from 1st July, 2014. The present government assumed
office on 26th May, 2014 and therefore, it has been decided to make
the scheme effective from a date immediately after.
Arrears will be paid in
four half-yearly instalments. All widows, including war widows, will be paid
arrears in one instalment.
To begin with, OROP would
be fixed on the basis of calendar year 2013.
Pension will be re-fixed
for all pensioners retiring in the same rank and with the same length of
service as the average of minimum and maximum pension in 2013. Those drawing
pensions above the average will be protected.
Personnel who voluntarily
retire will not be covered under the OROP scheme.
In future, the pension
would be re-fixed every 5 years.
It is estimated that the
expenditure on arrears alone would be ten to twelve thousand crores of rupees.
Apart from the fact that the previous government had provided for only Rs. 500
crore in the budget, it is noteworthy that the Koshiyari Committee had accepted
the estimate of Rs. 235 crore as additional financial burden to implement OROP.
The present government has accepted OROP in true spirit without being
constrained by these inaccurate estimates.
OROP is a complex issue. A
thorough examination of interests of retirees of different periods and
different ranks is needed. The inter-service issues of the three Forces also
require consideration. This is not an administrative matter alone. Therefore,
it has also been decided that a One Member Judicial Committee would be
constituted which will give its report in six months.
Prime Minister Shri Modi
has fulfilled his commitment and approved OROP for Armed Forces personnel.
Ministry of Defence will soon issue detailed Government Order.”
NAo/NM/RK