9/10/2015

BankersAdda:ABriefonONERANKONEPENSIONSCHEME

ABriefonONERANKONEPENSIONSCHEME
DearReaders,
Todayweareprovidingyouabriefontherecentlyapprovedschemebythe
UnionGovernmentnamedOneRankOnePensionScheme.Wereallyhope
thatyouallwilllikethispost.

TheUnionGovernmentannouncedOneRankOnePension(OROP)scheme
forexservicemen.Theschemewaspendingfornearlyfourdecades.
LetsdiscussWhatreallythismeans?
WhatisOneRank,OnePension?
Theonerank,onepensionrulemeansthatretiredsoldiersofthesamerank
andlengthofservicewillreceivethesamepension,regardlessofwhenthey
retire.
As of now, the date of retirement determines the amount of pension. With
eachPayCommissioncomingupwithitsrecommendationsevery10years,
the military veterans who retire early, receive less pension as compared to
thosewhoretiredlaterwiththesamerankandlengthofservice
UnderOROP,asepoywhoretiredin1995,forinstance,wouldgetthesame
amountofpensionastheonewhoretiredin1996.
"In simple terms, OROP implies that uniform pension be paid to the Armed
Forces personnel retiring in the same rank with the same length of service,
regardless of their date of retirement. 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," said Defence Minister Manohar Parrikar
whilemakingtheannouncement.
WhowillbenefitfromOROP?
Exservicemen drawing pensions will benefit from the OROP scheme,
especially those who retired before 2006. Why? Because at present,
pensionerswhoretiredbefore2006drawlesspensionthantheircounterparts
andeventheirjuniors.Theschemewillbenefitallthreeservicesairforce,
navyandarmy.
DetailsofOROP
1) The benefit will be given with effect from 1st July, 2014. The present
government assumed office on 26th May, 2014 and therefore, it has been
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9/10/2015

BankersAdda:ABriefonONERANKONEPENSIONSCHEME

decidedtomaketheschemeeffectivefromadateimmediatelyafter.Arrears
willbepaidinfourhalfyearlyinstalments.
2)Allwidows,includingwarwidows,willbepaidarrearsinoneinstalment.
3)Tobeginwith,OROPwouldbefixedonthebasisofcalendaryear2013.
4)Pensionwillberefixedforallpensionersretiringinthesamerankandwith
the same length of service as the average of minimum and maximum
pension in 2013. Those drawing pensions above the average will be
protected.
5) Personnel who voluntarily retire will also be covered under the OROP
scheme.
6)Infuture,thepensionwouldberefixedevery5years.
7)IthasalsobeendecidedthataOneMemberJudicialCommitteewouldbe
constitutedwhichwillgiveitsreportinsixmonths.

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