Government implements One Rank One Pension (OROP) Scheme for Defence personnel: A historic step toward pension parity
In a landmark decision aimed at addressing long-standing demands for equity among retired Defence Forces Personnel, the Government of India has successfully implemented the One Rank One Pension (OROP) scheme. Effective from 1st July 2014, this initiative was announced by Prime Minister Narendra Modi and seeks to ensure uniform pension payments for military retirees, regardless of their date of retirement. The scheme bridges the gap between past and current pensioners, providing a much-needed sense of fairness and dignity to veterans.
The OROP scheme was officially launched following the issuance of government orders on 7th November 2015. Detailed guidelines for pension fixation were subsequently released on 3rd February 2016, marking a significant milestone after decades of demands for parity in pension benefits across different generations of retired military personnel.
Under the OROP scheme, pensions for past retirees were re-fixed based on the rates applicable to personnel who retired in the calendar year 2013. This re-fixation ensures that personnel retiring in the same rank with the same length of service receive uniform pensions, regardless of when they retired. The scheme’s implementation has been a crucial step towards achieving fairness and equity in the pensions of Defence Forces Personnel.
1. Uniform Pension for Equitable Treatment
The cornerstone of the OROP scheme is the provision of uniform pensions for all Defence Forces Personnel retiring in the same rank with the same length of service. This ensures that veterans receive the same pension, promoting fairness and equality among all retirees.
2. Arrears Disbursement
To ensure that past retirees benefit from the scheme, arrears under OROP have been disbursed in four equal half-yearly installments. However, family pensioners and gallantry award winners receive their arrears in a single installment, recognizing their special contributions.
3. Periodic Revision
To keep pace with inflation and other economic factors, the OROP scheme includes a provision for re-fixing pensions every five years. This periodic revision ensures that retirees continue to receive adequate financial support throughout their retirement.
4. Financial Implications
The financial commitment to OROP has been substantial, with Rs 10,795.40 crore disbursed as arrears to Defence Forces Pensioners and Family Pensioners. This financial outlay reflects the government’s dedication to honoring its commitments to the armed forces community and ensuring their well-being.
Challenges and Future DirectionsThe implementation of OROP was not without its challenges. The logistical complexities of processing historical pension data and managing the financial implications posed significant hurdles. Despite these challenges, the government has remained committed to the welfare of ex-servicemen, demonstrating a deep respect for the contributions of Defence Forces Personnel.
Recently, the Hon’ble Supreme Court of India directed the re-fixation of pensions under OROP from 1st July 2019. This directive reinforces the scheme’s commitment to periodic adjustments and fairness, ensuring that the benefits of OROP continue to reflect current economic realities.
The implementation of the One Rank One Pension scheme stands as a testament to the government’s proactive measures in addressing the long-standing demands of Defence Forces Personnel. By ensuring uniform pension payments, the scheme not only promotes fairness but also honors the sacrifices and contributions of veterans towards national security.
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