The government on Saturday decided to implement the “One rank, one pension” (OROP) scheme for veterans of the armed forces. Over 25 lakh veterans would benefit from the implementation of the OROP scheme. However, the ex-servicemen who have been on agitation rejected key details of the decision and said their 84-day stir will continue.
OROP intends to ensure uniform pension payments to ex-servicemen who served at the same rank and for the same amount of time, regardless of the year they retired, among other measures. “Despite the huge fiscal burden, given its commitment to the welfare of ex-servicemen, the government has decided to implement OROP,” defence minister Manohar Parrikar said at a press conference that was attended by the three service chiefs, General Dalbir Singh of the army, Admiral RK Dhowan of the navy and Air Chief Marshal Arup Raha of the air force. Defence secretary G Mohan Kumar was also present.
The scheme will be effective from July 1, 2014, with arrears that will be paid in four half-yearly installments. Widows and war widows will get arrears in a single installment. The base year for calculating the pension has been fixed at 2013. Parrikar said the pension would be recalculated every five years.
However, the ex-servicemen said they were not “fully satisfied” with the government’s decision. Maj Gen (retd) Satbir Singh, spearheading the campaign for OROP, said they would take a decision later on whether to continue with the agitation for the implementation of the scheme.
Parrikar said the previous government had set aside a sum of Rs 500 crore for OROP, but it was “not based on a thorough analysis”. He said experts have now estimated that the cost to the exchequer will be Rs 8,000-10,000 crore. “This will increase further,” he said. The expenditure on arrears alone will be around Rs 10,000-12,000 crore. Those drawing pensions above the average will be protected.
Personnel who opt for premature retirement will not be covered under the OROP scheme, Parrikar added.
The veterans have been protesting at Jantar Mantar in Delhi for nearly three months to demand the implementation of the scheme. They had said they would step up their protest if their demand was not met.
Since there are many cases of veterans of the same rank earning different pensions, the government has proposed to take the average of the maximum and minimum pension paid per rank in 2013, while protecting those who earn above average pensions in their rank. The defence minister also announced that a one-member judicial committee will be set up to work out details of OROP and will submit its report in six months.
The veterans and the government had been involved in negotiations for months. The Prime Minister’s Office stepped in last month after the strike escalated into a hunger strike.