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Saturday, September 5, 2015

NDA Govt Announces '' One Rank One Pension (OROP) '' Saturday Sep 05,2015

Fulfilling one of its major election promises in the run up to the Lok Sabha elections of the BJP, Defence Minister Manohar Parrikar on Saturday Sep 05,2015 announced the implementation of the long delayed One Rank One Pension (OROP) for ex-servicemen.

The avowed aim of this announcement, to end the strike by veterans demanding OROP was however hanging in fire with protesting veterans rejecting the “unilateral” announcement as it “dilutes” several core issues from the accepted definition.
Defence Minister Manohar Parikar addressing a press conference on OROP issue at South Block, New Delhi, on Saturday. Photo: Shanker Chakravarty
“Despite the huge fiscal burden, given its commitment to the welfare of ex-servicemen, the government has taken a decision to implement the OROP,” Defence Minister Manohar Parrikar while announcing the plan, and said the ministry of defence would soon issue a detailed government order. 


The base year would be calender year 2013 for calculation of the OROP and it will be implemented from July 2014, Defence Minister Manohar Parrikar said while making it clear that ex-servicemen who have taken voluntary retirement would not be eligible for the scheme.

Almost 85% of military personnel retire before age of 40 but civilian employees serve till the age of 60. Only 1% of military personnel serve upto age of 60. While the number of registered ex-servicemen is 24.25 lakh and there are over 13 lakh serving military personnel. The estimated cost of OROP will be Rs 8,300 crore

All about One Rank One Pension (OROP)
 
1 Defence Minister Manohar Parrikar announced thedecision to implement the One Rank One Pension, w.e.f July 1, 2014.

2 OROP arrears to be paid in four half-yearly instalments; all widows, including war widows, to be paid arrears in one instalment.

3 The ex-servicemen, who have been agitating for the last 82 days, said they will not accept review of the pension after every five years.

4 It is understood that a draft proposal on OROP was circulated at a RSS meeting on Friday, which envisaged commencement of the scheme from July 2014, besides revision of pension every five years.

5 Veterans have opposed to excluding ex-servicemen, who had opted for pre-mature retirement, from the ambit of OROP.

6 Defence Minister Manohar Parrikar announced the setting up of a One member Judicial Committee, which will give its report on OROP in six months.

7 Veterans have rejected this committee, and instead demanded a committee under the Defence Minister which will include an ex-serviceman too.

8 To begin with, OROP would be fixed on the basis of calender year 2013.

9 Officials said the annual burden on the pension bill will be about Rs. 8,000 crore which would progressively go up with revision in pensions. The current pension bill of the defence ministry stands at Rs. 54,000 crore.

10 Close to 22 lakh retired servicemen and over six lakh war widows stand to be the immediate beneficiaries of the scheme


What veterans demand and what government is conceding ?

concession_1 

concession_2 

concession_3 

Highlights of One Rank One Pension as announced by the Centre

The benefit will be given with effect from 1st July, 2014. 

The present government assumed office on 26thMay, 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 installment.
# 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.
# One Member Judicial Committee would be constituted which will give its report in six months


Note

One Rank One Pension scheme has been a long-standing demand of the ex-servicemen. It seeks to ensure that a uniform pension is paid to defence personnel who retire at the same rank with the same length of service, irrespective of their date of retirement.

Several retired defence personnel have been protesting at Delhi's Jantar Mantar for One Rank One Pension. Some of them are also on fast-unto-death.


The number of military veterans is over 24.25 lakh, there are nearly 6 lakh widows, too, who are entitled to lifetime pension. The current pension of defence forces is Rs 54,000 crore and it will increase to Rs 75,000 crore after OROP is implemented.

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