The Government took a historic decision of implementing One Rank One Pension (OROP) for Defence Forces Personnel with effect from 01.07.2014. In this regard, Government issued orders on 07.11.2015 and detailed guidelines along with rates of pension were issued on 03.02.2016 for implementation of OROP. OROP implies that uniform pension be paid to Defence Forces Personnel retiring in the same rank with the same length of service, regardless of their date of retirement, which implies bridging the gap between the rates of pension of current and past pensioners at periodic intervals. Salient features of the OROP are as follows:
- Pension of the past pensioners would be re-fixed on the basis of pension of retirees of calendar year 2013 and the benefit will be effective from 01.07.2014.
- Pension will be re-fixed for all pensioners on the basis of the average of minimum and maximum pension of personnel retired in 2013 in the same rank and with the same length of service.
- Pension for those drawing above the average shall be protected.
- Arrears will be paid in four equal half yearly installments. However, all the family pensioners including those in receipt of Special/Liberalized family pension and Gallantry award winners shall be paid arrears in one installment.
- In future, the pension would be re-fixed every 5 years.
- Personnel who opt to get discharged henceforth on their own request under Rule 13(3)I(i)(b), 13(3)II(i)(b), 13(3)III(iv) or Rule 16B of the Army Rule 1954 or equivalent Navy or Air Force Rules will not be entitled to the benefits of OROP. It will be effective prospectively.
In the financial year 2016-17 budget allotment of Rs 12,456 crore was made for OROP payments. No separate allotments have been made in other years. A total of Rs 10,795.40 crore have been disbursed as arrears for implementation of OROP to Defence Forces Pensioners/ Family Pensioners. However, OROP is not paid as a separate element. It is integrated part of pension. As such amount of additional expenditure incurred is not available.
