Modi government announces OROP: Six things to know about 'One Rank One Pension'

By ECONOMICTIMES.COM | 5 Sep, 2015, 06.40PM IST

NEW DELHI: Ending a four decade long wait of veterans, Prime Minister Narendra  Modi-led NDA government on  Saturday announced the 'One Rank One Pension' scheme for ex-servicemen. 

"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," said Defence Minister Manohar Parrikar while making the announcement. 

"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," he  said. We take a look at six salient features of the OROP scheme, as announced by  Parrikar: 

1. 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. 

2. Arrears  will be paid in four half-yearly instalments. All widows, including war widows, 

will be paid arrears in one instalment. 

3. To begin with, OROP would be  fixed on the basis of calendar year 2013. 

4. 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. 

5. Personnel who voluntarily retire will not  be covered under the OROP scheme. 

6. In future, the pension would be  re-fixed every 5 years

"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," Parrikar said.