One Rank One Pension

What is OROP ??

One Rank One Pension’  means that 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/year of their retirement.

What's the Issue ? Why Army men are protesting ??

A Pay Commission sits every 10 years and gives recommendations for enhancing the pay and allowances of the serving personnel based on the various factors like inflation, price hikes, and increase in living expenditures to meet the explicit needs of the lifestyle befitting the stature of a defence officer, etc.

Pension of the officers superannuating is based on the last salary drawn by them at the time of retirement.

Hence, with each consecutive Pay Commission, the military veterans who retired earlier received lesser pension as compared to those who retired later with the same rank and length of service.

Currently, all pre-2006 (the year the 6th pay panel report became effective) pensioners receive lesser pension than not only their counterparts but also their juniors.

For instance, a Major General who retired in 1995 draws a basic pension of Rs 30,350 but an officer retiring in the same rank after 2006 gets Rs 38,500.

Similarly, a colonel who retired in 2003 gets Rs 26,150, compared to Rs 34,000 drawn by a colonel who retired this year.

is OROP a NEW DEMAND by ARMY MEN?? 

It was already there till 1973 

• It is a pension scheme for the armed forces personnel which was in existence till 1973.
• This scheme provided same pension for same rank and for the same length of service irrespective of the date of retirement which was the basis for determining the pension and benefits of the Indian Armed Forces till 1973.
• OROP was terminated by the government in 1973.

Then came the Koshiyari committee – 

Bhagat Singh Koshiyari headed a committee which comprised 10 members (an all party parliamentary panel). It was formed in 2011.

What were the recommendations of the committee?

1. OROP should be implemented in the defence forces at the earliest and a separate commission should be formed to take decisions on pay allowances, pension, family pension etc. in respect of the defence personnel should be taken into the account by that committee.
2. The committee recommended to absorb the Armed Forces personnel after their military engagement into other services of government which is a custom in countries like U.S. and China.

What would be the financial Implications?

1. Early estimates were around 3000crores for OROP.( by Ministry of Defence)
2. Revised estimates vary between 8000 to 9000 crores.
3. According to the Koshiyari committee the estimates for implementation of OROP were around 12000 crores.

Is OROP expensive for the government?

1. OROP may be  affordable by the government as it is a small fraction of the military pension budget.
2. It includes about 4,00,000 defence civilians.
3. Defence civilians, which includes the entire civilian bureaucracy in the ministry of defence ,retire at  the age of 60 are mostly based permanently in Delhi and they are not covered by OROP.
4. It is alleged that they oppose the OROP due to their exclusion from the scheme.

Government of India on OROP

1. The government does not subscribe to the definition of Koshiyari committee, but states that there is a need for a new definition of OROP which should be acceptable to all the other ‘stakeholders’.
2. The stakeholders were neither defined nor identified by the government.
3. The government stand on the OROP prompted widespread dismay, disappointment and outrage amongst Armed Forces pensioners.
4. The ministry of defence recommended the proposal for implementation after the approval of the Defence minister.
5. Final Call has been taken by  Defence minister  manohar parikkar ...and OROP will be implemented from 1 july 2014 and base year would be 2013 ....

Cheers to Army Men !!!!

I am Proud of Indian Army !!!!!

You Deserve more than this !!!!