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One Rank One Pension: Finance, defence ministries get to work on military pensions overhaul

Finance, defence ministries get to work on military pensions overhaulShishir Gupta and Gaurav Choudhury, Hindustan Times, New Delhi

With Prime Minister Narendra Modi committed to the one-rank one-pension (OROP) scheme for the armed forces, the finance and defence ministries are working towards hammering out a consensus formula on the proposed retirement benefits. The finance ministry, sources said, has pointed out that a way needs to be found out to fund the payouts, which are likely to increase every year given the definition of OROP.
The finance ministry was inclined to refer the matter to the Seventh Pay Commission headed by Justice Ashok Kumar Mathur to recommend the most appropriate method and roadmap for implementing OROP, sources said.
The ministry of defence (MoD), on the other hand, has communicated to the finance ministry that it wants an early implementation of OROP as it is committed to the interest of jawans who stand to benefit the most from the revised pensions, sources said. “The jawans’ interest is foremost for the MoD for which is why it is pressing for OROP’s implementation at the earliest. The officers are entitled to far higher perks and other benefits than jawans, who deserve OROP the most,” said a source on condition of anonymity.
OROP implementation will cost an estimated Rs 8,299 crore, of which pension arrears and payments for retired jawans and those of persons below officer rank (PBOR) would be about Rs 7,100 crore, sources said. The Prime Minister’s Office (PMO) is also of the view that defence personnel, particularly jawans and PBOR, deserve better retirement benefits.
Sources said that the Prime Minister’s Office (PMO) has taken favourably to an option of doubling the government’s contribution to pension of soldiers as a formula for making OROP work.
The Bharatiya Janata Party (BJP) is also pressing for a roll-out of OROP keeping in mind the jawans’ interest. Last month, Modi, in his monthly radio talk show, Mann Ki Baat, said: “We are committed to OROP”. In February, the Supreme Court had directed the Centre to implement its six-year-old verdict to follow the OROP principle for retired armed forces personnel. OROP will ensure a uniform pension for defence personnel retiring in the same rank with the same length of service, irrespective of their date of retirement. It has been a long-standing demand of over two million ex-servicemen in the country.
Under the current rules, retirement benefits and pensions are calculated according to last draw salary. Thus, a recently retired Colonel, for instance, receives more pension than an officer of similar rank who retired earlier. Besides, the regulation dearness allowances and other hikes, salaries have also gone up because of hikes handed out by successive pay commissions. Moreover, in many cases even similar ranking defence personnel retiring simultaneously do not draw identical salaries. This is because one soldier would have got promoted to a particular rank, say Colonel, much earlier than his colleague, making his last drawn salary greater.
Read at: Hindustan Times


  • sethumadhavan namburath 8 years ago

    The central govt. in VI pay commission enhanced minimum basic pension to ₹.7000/- that is to a class IV employee. Where as the pay band for ORs starts from ₹.5200/-. Till now I could not find a single commment anywhere. ORs of army navy and airforce is considered by our govt. below tne level of class IV employee.

  • Dear sir,
    The only reluctant man in india to scuttle OROP to ex army personnel is mr arun jaitely, it may be the reason that he was defeated by an army man in the lok sabha election, as a retaliatory measure with vengeful act he puts all sorts of trouble , originally not babus mr jaitley may ill advise the babus to put inhibition, such a sort of aversion mr jaitley is having towards ex army personnel. i do not know what we, the ex army personnel commit to him, how daringly he inclines to pass on the buck of OROP to the chairman 7th pay commission, if BJP politicians is unable to provide money let them resign en bloc the government take over the mission of OROP. MR JAITLEY is under the intoxication power, all curses and anger of ex army defense personnel will act on him and modi [maanki badh] than ki path karona

  • Anonymous 9 years ago

    The Finance Ministry will be more happy to refer this issue to tenth pay commission. Shame on them.

  • These bureaucrats can't solve a two parameter based OROP, what sort of school they went in? They are trying to fit in a fixed budget and re engineering the scales of pension and this will result in dilution of the basic definition/principle on which the OROP is based. Rank and service of all officers and Jawans are available in the respective PCDA (P)'s systems. The real time data of the current scales are to be superimposed. All this is a one time job and the final expenditure figure is arrived at. The difference in pension and the varied DRduring the arrears period gives additional expenditure on account of arrears. An eighth standard student will solve it in 15 minutes in an examination. Why not pose such problems in future in an examination which are not understood by these bureaucrats.

  • rustom 9 years ago

    Indias leaders are more interested in cricket and" vested" interest of Shushma in Lalit Modi going to London.
    The leaders of India, the civilians at large , the media , the Corporate houses are not bothered that due to their negligence towards the veterans the armed forces are facing shortage of personnel and professionalism of the armed forces is being lowered to the likes of policing force.

    The enemy within doesn't realise that the external enemy will now not attack bombay or any civilian areas least the civilians wake up from their negligence but will continue to exert pressure onto the armed forces thru terrorism knowing well the ill policies of india herself that has placed sanctions on herself amongst others will be catalyst to threat faced.

    The civilians can thus rejoice make merry till the soldiers are fed up of making widows and orphans or till such time the armed forces eventually sag to the level of any other Indian segment. Then when bombs go hither thither the Indian will blame all and sundry but himself

  • Anonymous 9 years ago

    Finance Ministry would be too happy to refer it to 7CPC.
    Finance Ministry has to make funds available, the scheme has been approved by Ministry of Defence.
    PM must prevail upon Jaitley ji.

  • All the personal of the retired ExServiceMen want OROP. Just harping as to how everything is planned in implementing the scheme and importance being given to the jawans more than officers speak of cunning politics. Divide and rule practice in gaining votes will never work as the Officers and Jawans are a cohesive force to recorn with and this team work is unseperable in the Armed Forces.