Tuesday, June 16, 2015

Latest news on OROP

Update : 
  • PTI News :OROP scheme likely to be rolled out ahead of Bihar polls
  • New Delhi, Jun 16 (PTI) The long-pending 'One Rank One Pension' (OROP) scheme for ex-servicemen is likely to be rolled out ahead of the Assembly polls in Bihar later this year, top government sources indicated today.
    The government is working out the modalities for OROP and the announcement will be made by Prime Minister Narendra Modi, they said.
    "It (OROP) is being worked out. We will need to have a separate category so that it cannot be legally challenged later on and nor do others stake claim. This would be separate from other government pensions," the sources said.
    Asked when it will be rolled out, they indicated that the scheme is likely to be announced ahead of Bihar election if all modalities are worked out.
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  • Earlier News :
With Prime Minister Narendra Modi committed to the one-rank one-pension (OROP) scheme for the armed forces, the finance and defence ministries are working towards hammering out a consensus formula on the proposed retirement benefits. The finance ministry, sources said, has pointed out that a way needs to be found out to fund the payouts, which are likely to increase every year given the definition of OROP.

The finance ministry was inclined to refer the matter to the Seventh Pay Commission headed by Justice Ashok Kumar Mathur to recommend the most appropriate method and roadmap for implementing OROP, sources said.
The ministry of defence (MoD), on the other hand, has communicated to the finance ministry that it wants an early implementation of OROP as it is committed to the interest of jawans who stand to benefit the most from the revised pensions,
sources said. “The jawans’ interest is foremost for the MoD for which is why it is pressing for OROP’s implementation at the earliest. The officers are entitled to far higher perks and other benefits than jawans, who deserve OROP the most,” said a source on condition of anonymity.
OROP implementation will cost an estimated Rs 8,299 crore, of which pension arrears and payments for retired jawans and those of persons below officer rank (PBOR) would be about Rs 7,100 crore, sources said. The Prime Minister’s Office (PMO) is also of the view that defence personnel, particularly jawans and PBOR, deserve better retirement benefits.
Sources said that the Prime Minister’s Office (PMO) has taken favourably to an option of doubling the government’s contribution to pension of soldiers as a formula for making OROP work.
The Bharatiya Janata Party (BJP) is also pressing for a roll-out of OROP keeping in mind the jawans’ interest. Last month, Modi, in his monthly radio talk show, Mann Ki Baat, said: “We are committed to OROP”. In February, the Supreme Court had directed the Centre to implement its six-year-old verdict to follow the OROP principle for retired armed forces personnel. OROP will ensure a uniform pension for defence personnel retiring in the same rank with the same length of service, irrespective of their date of retirement. It has been a long-standing demand of over two million ex-servicemen in the country.
Under the current rules, retirement benefits and pensions are calculated according to last draw salary. Thus, a recently retired Colonel, for instance, receives more pension than an officer of similar rank who retired earlier. Besides, the regulation dearness allowances and other hikes, salaries have also gone up because of hikes handed out by successive pay commissions. Moreover, in many cases even similar ranking defence personnel retiring simultaneously do not draw identical salaries. This is because one soldier would have got promoted to a particular rank, say Colonel, much earlier than his colleague, making his last drawn salary greater.


Anonymous said...

The Govt had appointed a committee to define OROP and accepted it's report. Then why it has confusion now on definition of OROP? The scheme should be implemented immediately without any further delay as ex-servicemen are already in the street protesting the delay in the implementation of OROP.

S.Lakshman Rao said...

The same principle can be adopted,when the sixth pay commission was implemented.This view is to supplement the huge financial commitment.Seventh Pay commission Report and implementation there of is a separate topic.In other words,!!! Sixth Pay Commission!!! is totally different from Seventh Pay commission findings which are under process. Thus,Retiring/Retired government Officials may be on par, as far as the monthly New Pension which will be effective probably from 01.01.2016.

S.Lakshman Rao said...

The relief required may be to bring retired/retiring pensioners/family pensioners on par with one and the same date.Since very huge financial commitment will be the concern to the Central Government,the principles adopted for sixth pay commission in relation to date of effect needs to be examined by the competent authorities, before implementation orders are issued,by the concerned ministry.

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