OROP
One Rank One Pension (OROP)
The implementation of One Rank One Pension (OROP) by Defence Pension is a game-changer for retired soldiers and their families. It fulfills a promise to ensure fair compensation for their service and sacrifices. This scheme is a testament to the government's commitment to honoring veterans, providing them with financial security and dignity. We take pride in playing a crucial role in making OROP a reality for those who served our nation.
Policy
One Rank One Pension (OROP) Policy: Overview and Description
What is OROP?
The One Rank One Pension (OROP) policy is a pension scheme for armed forces veterans in India. It aims to provide uniform pension to all military personnel who retire at the same rank, irrespective of their date of retirement. The idea behind OROP is that individuals who serve the same tenure and retire at the same rank should receive the same pension, regardless of when they retired.
This policy seeks to bridge the disparity between pensioners of the same rank but different retirement dates, ensuring equality in their post-retirement benefits. Prior to OROP, pensioners who retired earlier received a lower pension than those who retired later, even if they served the same period or held the same rank.
Key Features of OROP:
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Equal Pension for Same Rank and Length of Service:
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Armed forces personnel of the same rank who retire with the same length of service will receive the same pension, regardless of when they retired.
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Revised Pension on Periodic Basis:
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Under the OROP scheme, pension rates will be updated periodically (every 5 years) to keep them in line with the average pension of serving soldiers in that rank. This ensures that pensioners' incomes remain relevant to the inflation rate and current pay scales.
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Restoration of Anomalies:
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The implementation of OROP was meant to address the issue of disparity in pensions based on the date of retirement, ensuring that veterans who retired earlier are not left with lower pensions compared to those retiring later.
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Exclusion of Certain Categories:
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The scheme is mainly for officers, junior commissioned officers (JCOs), and other ranks in the armed forces. It does not cover civilian employees or personnel from other defense services such as the police.
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Financial Commitment:
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The scheme involves a substantial financial commitment from the government. The estimated cost of implementing OROP has been significant, involving the payment of arrears, with the government initially committing around ₹10,000 crore in arrears for veterans.
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Historical Background:
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Pre-OROP Situation: Prior to the implementation of OROP, armed forces personnel who retired at the same rank and with the same length of service received different pensions based on the pay scales at the time of their retirement. For example, those retiring in the 1990s would get lower pensions compared to those who retired in the 2000s, even if they were of the same rank and served the same number of years.
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Announcement and Implementation: The OROP policy was announced in 2014 by the Government of India, specifically under the leadership of Prime Minister Narendra Modi, fulfilling a long-standing demand of the armed forces personnel and veterans. After some deliberations, the government began the formal implementation of the policy in 2015.
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Challenges and Controversies: While OROP has been widely celebrated by veterans and their families, it has also faced challenges:
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Financial Burden: The government has faced challenges in managing the financial burden due to the substantial allocation of funds required to implement the scheme.
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Arrears Payment: The payment of arrears was one of the primary concerns when the policy was introduced, with veterans demanding quick disbursement.
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Anomalies in Implementation: Even after implementation, some veterans have raised concerns regarding the proper implementation of the policy, arguing that certain technical issues still affect the uniformity of pension benefits.
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Cost Concerns: The scheme has led to debates regarding the long-term sustainability of such a financial commitment.
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Benefits of OROP:
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Fairness in Pensions: Ensures equal treatment of all armed forces personnel of the same rank, providing them with a fair pension, regardless of when they retired.
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Addressing Grievances of Veterans: It has helped address long-standing grievances of ex-servicemen who had campaigned for a fairer pension system.
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Improvement in Veterans' Welfare: By providing a more predictable and uniform pension system, it enhances the welfare of military veterans and their families.
Criticism of OROP:
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Unequal Implementation Across Ranks: Some argue that the system doesn’t equally benefit lower-ranked personnel and veterans who retired at lower pay grades.
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Arrears and Payments: The system for paying arrears has faced delays, and many veterans believe that the payments have not been made in a timely or efficient manner.
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High Cost for Government: The OROP scheme places a heavy financial burden on the government, with concerns about its long-term sustainability.
Conclusion:
OROP remains a critical policy for India’s armed forces and has brought some level of equity in pensions for veterans. While it has been a significant victory for military personnel in terms of pension parity, its successful implementation requires constant evaluation and adjustments to ensure that it continues to serve its intended purpose of fairness and welfare for retired defense personnel.
Eligibility
Eligibility for One Rank One Pension (OROP) Scheme
The One Rank One Pension (OROP) scheme is designed to provide uniform pension to all Armed Forces personnel of the same rank, who have served the same length of service, regardless of when they retired. However, the eligibility criteria for receiving OROP are specifically outlined and pertain to certain categories of personnel. Here’s a breakdown of the key eligibility requirements for the OROP policy:
1. Category of Beneficiaries:
A. Armed Forces Personnel:
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Army, Navy, and Air Force Personnel: OROP is primarily applicable to personnel from the Indian Army, Navy, and Air Force. This includes:
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Officers (including General, Colonel, Lieutenant Colonel, Major, etc.)
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Junior Commissioned Officers (JCOs) (including Subedar Major, Subedar, Naib Subedar, etc.)
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Other Ranks (such as Sepoys, Havildars, and Naiks)
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B. Ex-Servicemen and Widows:
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Ex-Servicemen who retired from service before the implementation of OROP are eligible for the benefit. This includes personnel who retired after serving the minimum required tenure and at any rank within the military.
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Widows of Deceased Personnel are also eligible to receive the revised pension under the OROP scheme. The pension will be recalculated based on the applicable rank and service tenure of the deceased personnel.
2. Conditions for Eligibility:
A. Minimum Service Requirement:
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The personnel must have served in the armed forces for a certain minimum period to be eligible for the OROP benefits. While there is no strict minimum service requirement mentioned in the policy, personnel who have served for at least 15 years (on average) are eligible for pension under the OROP scheme, which is consistent with India's military pension rules.
B. Rank and Length of Service:
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Same Rank: The individual must have served at the same rank as the other personnel receiving OROP benefits.
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Same Length of Service: Pensioners who served the same length of time at the same rank are eligible for the same pension under the OROP policy.
C. Date of Retirement:
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The policy applies to all veterans, whether they retired before or after the implementation of OROP. Even those who retired earlier than others will have their pensions adjusted to reflect the OROP rates. The only differentiator is the date of retirement, which impacts the pension initially, but under OROP, the pension will be uniform for those with identical rank and service length.
D. Rank at the Time of Retirement:
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Personnel who retired at a specific rank, e.g., Colonel, Major, or Sepoy, are eligible for pension under OROP. The pension will be based on the corresponding pension scale for their rank, irrespective of their date of retirement.
3. Ineligibility:
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Civilians in the Armed Forces: OROP is not applicable to civilian employees working in the Ministry of Defence or other government departments. Only active and retired military personnel are covered under the scheme.
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Personnel from Paramilitary or Police Forces: The OROP scheme applies strictly to the armed forces (Army, Navy, and Air Force), and does not extend to paramilitary forces like the Border Security Force (BSF), Central Reserve Police Force (CRPF), or state police personnel.
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Personnel Who Opt for Voluntary Retirement (VRS): While voluntary retirement is generally respected, personnel who take Voluntary Retirement before reaching the minimum retirement age or tenure may not be eligible for OROP unless they meet the service requirements.
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Posthumous Adjustments: If a veteran has already passed away before the implementation of OROP, the widow or legal heir can claim the revised pension benefits, but not the veteran themselves.
4. Impact on Pension Calculation:
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The pension of eligible personnel is recalculated based on the OROP formula, which provides uniform pension for those retiring in the same rank with the same length of service. The pension is revised every five years to reflect changes in the average salary of serving personnel in that rank.
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The arrears payment is also a part of the eligibility. Personnel who retired before OROP's implementation are entitled to arrears for the period between the announcement and implementation of the policy.
5. Special Considerations:
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Family Pensioners: Widows, children, and dependent parents of deceased personnel are entitled to a pension based on the deceased service record and rank, which will be recalculated according to OROP rules.
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Ex-Gratia Payment: For certain categories of veterans, an ex-gratia payment may be made, but this is separate from the OROP scheme.
6. Implementation and Periodic Updates:
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The pension rate is updated every 5 years, and the revision is based on the average pension of serving personnel of the same rank.
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The arrears are also paid to those eligible, and this can sometimes be a large sum for veterans who retired years ago but will now receive a revised, higher pension.
Conclusion:
The OROP policy is designed to create equity among military veterans who have served in the same rank for the same length of time, offering them a uniform pension. Eligible personnel include all officers, JCOs, and other ranks from the Indian Army, Navy, and Air Force, as well as the widows and dependent family members of deceased personnel. However, civilian and paramilitary forces are excluded from its benefits. The policy ensures that veterans, regardless of their retirement date, receive the same pension benefits, creating fairness and addressing long-standing grievances regarding pension disparities.
Here are 10 frequently asked questions (FAQs) about the One Rank One Pension (OROP) scheme and their corresponding answers:
1. What is the OROP scheme?
Answer:
The One Rank One Pension (OROP) scheme is a policy introduced by the Indian government that ensures uniform pension for armed forces personnel who retire at the same rank and with the same length of service, irrespective of their date of retirement. It aims to eliminate the disparity in pensions between veterans who retired at different times but held the same rank and served the same tenure.
2. Who is eligible for OROP?
Answer:
The OROP scheme is applicable to:
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Army, Navy, and Air Force personnel who retired from active service.
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Officers, Junior Commissioned Officers (JCOs), and Other Ranks in the armed forces.
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Widows and dependent family members of deceased military personnel. It does not apply to civilians or paramilitary forces.
3. How is the pension calculated under OROP?
Answer:
Under OROP, pension is calculated based on the following:
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The rank of the individual at the time of retirement.
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The length of service in that rank.
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The average pension of serving personnel in that rank.
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The pension is updated every five years to keep it in line with the average pay scales of the serving forces.
4. Are pensioners who retired before the implementation of OROP eligible for arrears?
Answer:
Yes, veterans who retired before the announcement of OROP are eligible for arrears from the time of the policy's announcement (2014) until its implementation (2015). The arrears are paid to ensure that all veterans, regardless of when they retired, receive the same pension benefits.
5. What happens if someone takes Voluntary Retirement (VRS)?
Answer:
Personnel who opt for Voluntary Retirement (VRS) are still eligible for OROP benefits, provided they meet the minimum service tenure required for pension benefits. However, the benefits may not be as substantial as those for individuals who retire under normal retirement terms, as VRS typically reduces the amount of pension.
6. Does OROP cover civilian employees in the Ministry of Defence?
Answer:
No, OROP only applies to armed forces personnel (Army, Navy, and Air Force). It does not cover civilian employees working in the Ministry of Defence or other government departments.
7. How often will the pension be revised under OROP?
Answer:
The pension will be revised every five years to reflect changes in the average salary and pension of serving personnel in the same rank. This revision ensures that pensioners' benefits remain in line with inflation and the pay scale of current serving personnel.
8. What if the pension under OROP is lower than the one received by veterans who retired later?
Answer:
The OROP policy ensures that personnel who retired earlier receive pension adjustments to match the current pension of those who retired later in the same rank with the same length of service. Thus, all pensioners of the same rank and tenure will eventually receive the same pension, regardless of when they retired.
9. Are there any financial concerns related to OROP?
Answer:
Yes, the financial burden of implementing OROP is significant. The government has faced challenges in managing the costs, as it involves a large-scale revision of pensions and the payment of arrears. The total cost is estimated to run into several thousands of crores of rupees, with periodic revisions adding to the financial commitment.
10. Does OROP apply to veterans of paramilitary forces or the police?
Answer:
No, OROP is strictly applicable to personnel of the Indian Army, Navy, and Air Force. It does not extend to paramilitary forces (such as the Border Security Force, Central Reserve Police Force) or state or central police forces. However, there are separate pension schemes for such forces, but they are not covered by OROP.
These FAQs address common concerns and provide clarity about the One Rank One Pension policy, its eligibility, and its impact on veterans and their families.
