Union Government issued notification for implementation of OROP

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Who: Notification for implementation of OROP
What: Issued by the Union Government
When: 7 November 2015
Why: To bring uniformity among pensions of Defence personnel

Union Government on 7 November 2015 issued the notification regarding implementation of One Rank One Pension (OROP) in respect of Defence Forces personnel.

The notification is in tune with the modalities for implementation announced on 5 September 2015.

Features of OROP scheme

• 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.
• The benefit will be given with effect from 1 July 2014 to the ex-service men of all the three forces.
• Those drawing pensions above the average will be protected.
• In future, the pension would be re-fixed every 5 years.

• Arrears will be paid in four half-yearly instalments.
• All widows, including war widows, will be paid arrears in one instalment.
• Personnel who voluntarily retire will not be covered under the scheme.
• The estimated cost to the exchequer would be 8000 to 10000 crore at present, and will increase further in future.

What is OROP?

In simple terms, OROP implies that uniform pension be paid to the armed forces personnel retiring in the same rank with the same length of service, regardless of their date of retirement.

At present, ex-servicemen receive differential pensions as it is calculated on the basis of their salary at the time of their retirement.

Differential payments occur as the salaries of personnel are frequently revised on the basis of pay commission’s recommendations.

For example, personnel who retired in 1990 receive fewer pensions compared to their juniors who retired in 2006 though they retired at the same rank with same length of service.