One Rank One Pension Scheme
(Ministry Of Defence)
Time line of one rank one pension
In 1973 – the pension of civilian government servants, was increased with 15% But, pension of the armed forces personnel, was decreased with 20% of last pay drawn.
In 1980s – Armed Forces (army, navy, air force) Veterans started demand for one rank one pension.
In 1991 – Sharad Pawar Committee rejected the OROP but approved one-time pay hike.
In 2002 – Congress party added OROP in Poll Manifesto.
In 2006 – Conflict between civil and military started with the Series of protests followed.
In 2008 – the Veterans decided to surrender the medals and awards. The government ignored their protest.
In 2013- Narendra Modi promised OROP at a massive rally of ex- servicemen at Rewari, Haryana.
In 2014 – UPA Government announced in February 2014 to implement OROP from April 2014 and allocated Rs 500 crore for it. The decision was left to the next government.
In 2015 – OROP was announced by NDA Government on September 5, 2015.
Meaning of OROP
The scheme promises equal pension to military personnel retiring in the same rank with the same length of service, regardless of the date of retirement.
For Example –
- Soldier ‘A’ retires as colonel in 2015 after 30 years of service and his pension is Rs. 70,000 per month.
- Soldier ‘B’ retires as colonel after 30 years of service but in 1980 and he gets pension of Rs. 45,000.
After OROP –
Both the colonel will get the same pension i.e. Rs. 70,000 each.
Key points of the Scheme
(1) Based year for OROP –
OROP would be fixed based on the calendar year 2013 as the average of minimum and maximum pension in 2013 and those drawing pensions above the average will be protected.
(2) Date of effectiveness:
- The benefit will be given with effect from 1st July 2014.
- Arrears will be paid in four half-yearly instalments. All widows, including war widows, will be paid arrears in one instalment.
(3) Eligibility Criteria:
Eligible– Only those who retired before the plan kicked in would be entitled to OROP.
Not eligible – Personnel who voluntarily retire will not be covered under the OROP scheme.
(4) Re-fixed of the pension- In future, the pension would be re-fixed after every 5 years.
(5) Estimated Cost: The estimated cost to exchequer is expected to be Rs 8,000 to 10,000 crore and will increase in future.
Importance of OROP
Persons in the civil service and civil police organisations (BSF, CRPF etc.), serve till full retirement age (60) while in the armed forces, people retire from the 37 years onwards to 54 years of age. This way from the date of retirement to the age of 60, they (armed forces veterans) get only pension instead of the full pay which is a huge loss of earning. The scheme covers this gap of earning.