Govt of India announced ‘One rank, One pension’ Scheme for Ex-servicemen

Narendra Modi led NDA government on 5th September announced implementation of ‘One Rank, One Pension’ (OROP) scheme for the ex-servicemen.

The decision will be applicable to over 24 lakh ex-servicemen and 6 lakh war widows in the country.

The decision was made over 40 years after the OROP scheme was first demanded. Moreover, it is 84 days after military veterans intensified their demand by sitting on dharna and even going on a fast-untodeath. PM Narendra Modi in his Independence Day speech had pledged to deliver his poll promise of OROP.

The detailed government order for OROP will be issued in a month or so under the special category of “military pension”

This decision is going to put the huge fiscal burden of Rs 8,000-10,000 crore every year.

Still Unhappy

However, there is still some discontent among the ex-servicemen veterans as the personnel opting for voluntary retirement have been kept out of the benefits of OROP.

What is One Rank, One Pension?

What?

The ‘one rank, one pension’ scheme means that retired soldiers of the same rank and length of service will receive the same pension, regardless of when they retire.

Why?

Up till 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.

How?

Under OROP, a soldier who retired in 1995, for instance, would get the same amount of pension as the one who retired in 1996.

Who will benefit from OROP?

• Ex-servicemen getting pensions will benefit from the OROP scheme.
• Especially those who retired before 2006 will benefit more from this. Because at present, pensioners who retired before 2006 get less pension than their counterparts and even their juniors.
• The scheme will benefit all three services i.e. air force, navy and army.

How much will the OROP scheme cost the government?

• The UPA government in their interim budget had announced an amount of Rs 500 crore for the scheme.
• However, NDA’s Finance Minister Arun Jaitley in his Budget announcement allotted Rs 1,000 crore for the scheme.