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About One Rank One Pension

Subject: What is One Rank, One Pension?

The Army's One Rank - One Pension 
The ‘one rank, one pension’ rule means that retired soldiers of the same rank and length of service will receive the same pension, regardless of when they retire. 

As of now, the date of retirement determines the amount of pension. With each Pay Commission coming up with its recommendations every 10 years, the military veterans who retire early, receive less pension as compared to those who retired later with the same rank and length of service
Under OROP, a sepoy who retired in 1995, for instance, would get the same amount of pension as the one who retired in 1996.

"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. Future enhancements in the rates of pension would be automatically passed on to the past pensioners. This implies bridging the gap between the rate of pension of current and past pensioners at periodic intervals," said Defence Minister Manohar Parrikar while making the announcement.

Who will benefit from OROP?
Ex-servicemen drawing pensions will benefit from the OROP scheme, especially those who retired before 2006. Why? Because at present, pensioners who retired before 2006 draw less pension than their counterparts and even their juniors. The scheme will benefit all three services -- air force, navy and army.

Details of OROP:
1) The benefit will be given with effect from 1st July, 2014. The present government assumed office on 26th May, 2014 and therefore, it has been decided to make the scheme effective from a date immediately after. Arrears will be paid in four half-yearly instalments.
2) All widows, including war widows, will be paid arrears in one instalment.
3) To begin with, OROP would be fixed on the basis of calendar year 2013.
4) 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. Those drawing pensions above the average will be protected.
5) Personnel who voluntarily retire will also be covered under the OROP scheme.
6) In future, the pension would be re-fixed every 5 years.
7) It has also been decided that a One Member Judicial Committee would be constituted which will give its report in six months.

Key points of Union Govt.’s OROP grant:
OROP granted with effect from 1 July 2014Arrears to be paid in four half-yearly instalments
Widows of casualties to be paid in single instalments
OROP will raise annual pension bill by Rs. 8,000-10,000 crore
This amount will rise in tandem with military salaries
Arrears will involve one-time payment of Rs. 10,000-12,000 crore
Pensions to be equalised and adjusted once every 5 years
Pensions to be average of maximum & minimum in 2013

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