Maj Gen Jagatbir Singh,VSM ( Retd)
On December 23, the Union Cabinet approved the One Rank-One Pension (OROP) revision for Ex Servicemen. This welcome development surprisingly came a week after the government had asked the Supreme Court for extension of time till March 15 2023 for payment of arrears of the OROP scheme. It had first moved the Supreme Court in June and sought three months to compute and make payment.
The approved revision of pension of Armed Forces Pensioners/family pensioners under OROP will be effective from July 1, 2019. All the Armed Forces Personnel who retired up to 30 June 2019, will be covered under this revision, said the government. It is estimated that over 25.13 lakh Armed Forces pensioners/family pensioners will be benefited.
The government said that the pension for those drawing above the average will be protected and be extended to family pensioners, including war widows and disabled pensioners. While the arrears will be paid in four half-yearly installments all family pensioners, including those in receipt of special/liberalised family pension and Gallantry Award winners, shall be paid arrears in one installment.
The estimated annual expenditure for the implementation of the revision has been calculated as approximately Rs 8,450 crore at 31 percent Dearness Relief (DR).
The arrears with effect from July 1, 2019 – December 31, 2021, have been calculated as over Rs 19,316 crore based on DR at 17 percent for the period from July 1, 2019 to June 30, 2021 and at 31 percent for the period from July 1, 2021 to December 31, 2021. Also arrears with effect from July 1, 2019 to June 30, 2022 have been calculated as approximately Rs 23,638 crore as per the applicable dearness relief.
Earlier on November 7, 2015, the government had issued a policy letter for revision of OROP pension with effect from July 1, 2014. In the letter, it was mentioned that in future the pension would be re-fixed every five years. Approximately Rs 57,000 crore has been spent at Rs 7,123 crore per year in eight years in the implementation of OROP.
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. 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. This equalisation of pension was to happen periodically every five years which meant that it should have been revised on July 1 2019.
The rank-wise pension figures for OROP in the tables as provided in the official press release are only broad figures meant for information. The actual figures would vary for each rank as per length of service. There are many other factors & sub-categories, for example the rank of Lt Gen has three grades (HAG, HAG+, Apex/Levels 15, 16, 17). Then there are sub-categories among other ranks also such as Honorary Ranks.
There is no doubt that an examination of the tables which have been released show a substantial increase in the basic pensions across all ranks from Jan 1 2016 and that as July 1 2021. Though the announcement has been delayed, it has brought relief to pensioners and closure to one of the major anomalies with regards to the demands of a certain section of ESM’s regarding the implementation of the OROP and is a welcome step.
The PCDA in consultation with the MoD Finance would have worked out the various tables which reflect the changes in pension for every rank depending on the length of Service in great detail after a great deal of deliberation and with due diligence. This equalisation will no doubt give a fillip in the pensions being received.
There will no doubt be some anomalies in specific cases that may emerge and these will need to be examined, addressed and resolved as per the existing rules and provisions. However, on the face of it there has been a substantial increase in the basic pensions, for example as per the tables released a Naiks basic pension between 2016 and 2021 has gone up by approximately Rs 3500 and Colonels by approximately Rs 15,000. This represents an increase of 16 percent and 14 percent respectively.
While the equalisation was to take place once every five years the tables show the same as having been carried out July 1 2019 and July 1 2021 which means that the equalisation is being carried out once in two years which is extremely beneficial to the pensioners.
There is no doubt that this announcement by the government is a very welcome step and has resolved one of the most contentious issues pertaining to the OROP that is the fixation of pay and is a huge relief particularly for those pensioners who felt that they had not been adequately equated.
The author is an Indian Army Veteran.
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