Government announces One Rank One Pension for ex-servicemen

New Delhi: Defence Minister Manohar Parrikar on Saturday announced the implementation of the long-awaited One Rank One Pension or OROP.

“Despite huge financial burden, government has taken a decision to implement OROP”, Parrikar said, explaining that implementing OROP would cost Rs 10,000 - 12,000 crore to the exchequer and will increase further in future, contrary to the previous government’s estimate of Rs 500 crore.

“PM Modi has fulfilled his commitment and implemented OROP,” said Parrikar.

The scheme will be effective from July 1, 2014 with arrears that will be paid in four half-yearly instalments. The base year for calculating the arrears has been fixed at 2013.

The veterans had demanded that OROP should be applicable to those who have sought voluntary retirement and are getting pension, but the government has rejected this demand. The Defence Minister said that personnel who retire voluntarily will not be covered under the scheme. But the government will stick to a revision of pension every five years.

Parrikar further said that a judicial committee is going to be constituted, which will submit its report in six months.

However, the announcement was rejected by the military veterans who vowed to continue with the agitation, saying they are not fully satisfied.

"They accepted one point and rejected six points... we are not fully satisfied," said Major General Satbir Singh (retd.).

Singh said, “We don't accept the decision not to give OROP benefits to those who have taken voluntary retirement. We also disapprove of setting up of one-member judicial committee. It should be under Defence minister and not given more than one month.”

Agitating ex-servicemen demanded clarifications on issues like pre-mature retirement benefits and averaging of pension.

Singh said they will shortly decide the future course of action in response to defence ministry announcement.

Here are the highlights of Manohar Parrikar's speech:

    I appeal to the veterans now to continue the task of nation building.
    PM Modi has fulfilled his commitment and implemented OROP.
    One member judicial committee will be constituted, will give reports in 6 months,
    Pension would be rationalised every 5 years.
    Personnel who retire voluntarily will not be covered under One Rank One Pension scheme.
    Pension will be fixed keeping 2013-14 as the base year.
    Widows will be paid arrears first. They will be paid in 1 instalment.
    Arrears will be paid 4 half-yearly instalments.
    OROP is that uniform pension for people who retire from the same rank irrespective of when they do so. It involves rationalization of pensions.
    Government has decided to implement One Rank One Pension.
    The previous government allocated Rs 500 crores but the reality is that it would take Rs 8,000-10,000 crores.
    PM Modi has reiterated his commitment to OROP many times.
    It is for these reasons that the current government took some time to fulfil the promise.
    The government in 2014 said that OROP would be implemented by 2014 December, but there were no steps taken.
    It is a matter of deep anguish that various governments remained ambivalent on OROP.
    The government is proud of our armed forces personnel.

Earlier in the day, a group of ex-servicemen met Defence Minister Manohar Parrikar. After the meeting Parrikar met BJP President Amit Shah.

The ex-servicemen were demanding that the pension revision should take place at least in every two years. 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. According to the draft, the basis for the implementation of the scheme would be 2013 and arrears would be paid in four instalments.

Close to 26 lakh retired servicemen and over six lakh war widows stand to be immediate beneficiaries of the scheme, which envisages a uniform pension for the defence personnel who retire in the same rank with the same length of service, irrespective of their date of retirement.

Currently, the pension for retired personnel is based on the Pay Commission recommendations of the time when he or she retired. So, a Major General who retired in 1996 draws less pension than a Lt Colonel who retired after 1996.