One Rank One Pension scheme 2015: Government have announced to implement “One Rank, One Pension” scheme (OROP). The “One rank, One Pension” rules means that retired soldier of the some rank of service will receive the pension in equitable manner, despite of the retirement date.

Scheme
Scheme

What is OROP?

Koshyari committee inspected the grant of OROP to armed forced personnel and presented its report on December 19, 2011. Koshyari committee suggested that Government should implement OROP scheme. According to this committee the definition of OROP is given below:

OROP says that uniform pension be paid to armed forced staff retiring in the same rank setting aside the date of retirement and enhancement in the rate of pension in future to be itself passed to the former pensioner.”

 Key highlights: OROP Scheme

  • OROP scheme will provide pension to ex-servicemen of same rank and same length of service, especially those who have retired before 2006. It would be implemented from 1 July 2014.
  • Government offered that Pension will be revised every five year and modification in pension would be passed to the former pensioner. But this was the main issue of disagreement between government and veterans. Veterans wanted annual revision of OROP.
  • Beneficiaries: The benefits of OROP will avail all three services including, Army, Navy and Air force employee. It would be applicable for disables and war widows. But OROP scheme is not for those who are retired and left voluntary in between. This Point created scene of disagreement between veterans and government.

Implications:

The implementation cost of “One Rank, One Pension” scheme will goes around Rs. 8000-Rs.9000 crores estimated. It is a small fraction of the military pension budget allocated Rs. 54,500 crores. The military pension budget included approx. 4, 00,000 civilians and hence estimated expenditure on OROP is affordable.

Approx. 22 lakh retired servicemen and more than six lakh war widows stands to be in the immediate beneficiaries of the scheme OROP.

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