One Rank One Pension
Without Tears
Scope of Coverage
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Definition
History
Frequently asked Questions
Few Discriminations
DEFINITION
OROP implies that uniform pension be paid to
The Armed Forces personnel retiring in the
same rank with the same length of service,
irrespective of their date of retirement, and
any future enhancement in the rates of
Pension to be automatically passed on to
the past pensioners
HISTORY
• Roman emperor Augustus started the tradition of
military pensions in 13 BC by guaranteeing life
pensions to every legionary who fought 20 years for
Rome. It set the bar for all modern armies and
independent India continued the British tradition of
financially privileging military service until 1973, when
as a gift for the performance of the armed forces in
1971 war the 3 rd pay commission reduced our
pensions.
• The armed forces were getting higher pension than
civilians till 1973
• Defence forces whose pension was based rank wise
had to face reduction from 70% of last pay drawn to
50% where as civil servants went up from 33 % to
50%.
• This kind of discrimination started soon after
independence when Nehru first wanted to disband the
armed forces and stated that he will manage with
police. But when that did not work out thanks to
Pakistan, he wanted to import a British General as
Chief of Indian Army as according to him Indian
officers did not have adequate experience. It is thanks
to a brave general who suggested we also import a
Prime Minister since none of the politicians had any
experience of running the country that the matter was
dropped. Nehru was so anti defence forces that he
took it upon himself to evict the then COAS from his
official residence Teen Murti Marg and the chief had to
pitch a tent in army grounds and stay there.
• Taking advantage of the attitude of Nehru and
what was happening in Pakistan then, the civil
service convinced the politicians that army will
take over the country and took over control of
the Armed Forces.
• Whilst services accept civil control it does not
mean bureaucratic control. May I ask you all who
do you think is responsible for the defence of the
country??????
• Well surprisingly it is the defence Secretary and
not the armed forces chiefs.
• So with this kind of attitude towards the forces it
is not surprising that there has been resistance
to OROP which was actually sanctioned in 1983
but never implemented. The bureaucrats went to
the extent of stating “OROP Over our dead body “
Incidentally OROP is coined by a Committee
appointed by Mrs. Indira Gandhi under the
Chairmanship of Brig K P Singh Deo.
• It is only in 2009 after the discrimination against
defence reached its nadir, post 6 th Pay
commission that the demand for implementation
of this long standing sanction has been
intensified.
Frequently asked Questions
• Is the demand about Money?
No
The fight for equal pensions is at its heart a
proxy battle for what we see as restoring our
lost `izzat', for getting what we see as our
rightful place in the civil-military balance where
political control of the military has translated
into bureaucratic control.
What did the Koshiyari Committee say?
• Page 14 of the report states
• “There is merit in the demand for One Rank One Pension
by Armed Forces Personnel, otherwise the matter would not
have been considered time and again by various
committees of the Government and Central Pay
Commissions. It could have been rejected once and for all
and principle of res judicata (a matter [already]
judged)would have been applied to this demand”
•
•
•
•
•
•
•
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1973
1986
1991
1996
2003
2005
2006
first considered by 3rd CPC,
considered again by 4th CPC
considered by Sharad Pawar committee
considered again by 5th CPC
considered by Inter-Ministerial Committee
considered by Group of Ministers
considered by 6th CPC
• Do Foreign countries have OROP
The UK has embraced one-rank-one pension for soldiers.
Our two biggest strategic challenges, Pakistan and China
have of course always privileged their military.
• What is the Annual Outlay needed to implement
OROP?
• During 2011 a Rajya Sabha Parliamentary Committee
(Koshiyari Committee) was assembled to study all
manifestations of OROP. They interviewed and heard
all stake holders, including Veteran Organizations and
MoD and Ministry of Finance. The Ministerial inputs
from the last two quoted figures of approx Rs 3500 cr.
• The figures worked out by the RM on a simple
calculator were Rs 8300 to 8600 cr which finally
worked out to Rs 8293 cr.
• Before the RM took charge of his bureaucrats he was
fed figures from 1300 cr to 22000 cr to create a scare
of finance shortage.
Why some JCO/Or are saying the demand is
officer centric?
• This is a myth being spread by people to split the
veterans community.
• Some JCO /OR are raising demands that are not
related to OROP .The demands may be valid but
are being mixed up with OROP to delay the
implementation.
• Let us look at the table that shows who will gain
how much and the myth will be exposed purely
from OROP point of view .
Rank
Table Showing % age increase Rank wise wef 01.01.2006 to grant of OROP
Pension as on Pension as on
Pension
Over all %
01.01.2006
24.09.2012 per
based on gain since
circular 397
circular
DGL as
01.01.2006
500/501/5002
known to
IESM
Over all %
gain since
24.09.2012
Sep QS 15 yrs Gr Y
4035
5102
8365
107
64
Hav QS 17 Yrs Gr Y
4498
5301
9625
114
82
Sub Maj QS 25 Yrs Gp Y
9812
0
14405
47
0
Hon Lt QS 28 Yrs
13500
15465
17130
27
11
Maj QS 25 Yrs
14100
18205
32526
131
79
Lt Col (S) QS20 Yrs
21028
21490
32490
55
51
Col QS 26 Yrs
26050
27795
35275
35
27
Brig QS 28 Yrs
26150
29145
37255
42
28
Maj Gen QS 28 yrs
24566
29145
41500
69
42
Sep QS 15 yrs Gr Y
3500
3500
5646
61
61
Hav QS 17 Yrs Gr Y
3500
3500
5958
70
70
Sub Maj QS 25 Yrs Gp Y
4830
9612
99
0
Hon Lt QS 28 Yrs
8100
10278
27
0
Maj QS 25 Yrs
8460
10923
19977
136
83
Lt Col (S) QS20 Yrs
15420
15759
20589
34
31
Col QS 26 Yrs
15630
16677
23319
49
40
Brig QS 28 Yrs
15690
17487
23421
49
34
Maj Gen QS 28 yrs
15390
18210
24900
62
37
Widows of
Note :
1. All JCO and below(Except Hon Ranks and Sub Maj/Sub) got an increase in 2009 as well
2. Ranks upto Hav and Maj will gain the most as they had been subject to total injustice so far
What do the Raksha Mantri say about implementation?
•Arun Jaitly: He said no shortage of money for OROP,
but asked the ESM to lower their expectations???,
meaning accept change in definition as accepted by
various committees of Parliament. He went on to
suggest his intent to refer the matter to a Tribunal to
reconcile differences between the Service Hq and MoD.
Such delaying tactics would obviously place the OROP
into a long Cold Storage, in line with MoD tactics of
attrition though delay. He also states there are many
definitions of OROP
•Manohar Parrikar: Initially declared that OROP needs
a complicated formula to be worked and it can't be
treated as a dynamic thing .However later he
understood the issue and of late has said that he has
done his work correctly and the file is with FM. Clearly
indicating his having thrown up his hands vis a vis the
FM
Is the complexity of OROP the only factor
holding up the issue?
No .
In fact there is no complexity in OROP
It is a myth being created by those who wish to
sabotage the BJP promise of OROP by
1. Stating other will ask for it. None can as the
terms of service condition are not same.
2. The one time amount required is high .The figure
given is 22000 cr. Fully proved to be wrong by RM
himself.
3. Will be referred to 7 PC. Not a part of 7 CPC
Charter.
4. There can be different definitions. There is only
one definition approved by parliament.
5. The annual increment of .85% will increase the
annual load on budget. Let us look at this aspect
with care in the next slide.
Is OROP imminently affordable?
• It must be clarified that the current defence pension
expenditure of Rs 54,500 crores (2015-16) also
includes defence civilians who approximately number
400,000.
• The perceived exponential rise in pension bill needs to
be put in the correct perspective. The figure would
rise in absolute numbers of course but when viewed
as a percentage of the nation’s GDP, the expenditure
on defence pension shows an overall declining trend
as the table below will illustrate:
• The defence pensions as a percentage of GDP thus
shows a clear long term declining trend despite an
absolute rise in numbers (the spike in 2009-10 was
due to payment of arrears for years 2006, 2007 and
2008 after the award of the 6th pay commission).
Now why does the military have higher number
of pensioners as compared to their civilian
counterparts?
• Simple.
• The nation needs a young army and therefore soldiers
are recruited young and retired early (most of them
between 34-37 years). On the contrary, all nonmilitary government employees (including jawans of
the Central Armed Police Forces—CAPFs) have the
luxury of serving till the age of 60. The ratio of
pensioners to serving personnel in the military is thus
1.7:1 as against 0.56:1 among the civilians. But that’s
the price the nation needs to pay for maintaining a
standing army.
• Had the long-standing recommendations for lateral
absorption of this vast, disciplined and ready
made pool of manpower in various non-military
organisations been implemented, perhaps the pension
bill could have been reduced but that has not
happened because of lack of political will and
bureaucratic resistance.
• There is one more reason why the military
pension bill will further reduce in terms of
percentage of the GDP:
• All civilians in defence ministry who joined
service on or after 1 January 2004, have
now come under the ambit of the
contributory National Pension Scheme
(NPS).
• Soldiers unfortunately cannot be brought
under the ambit of the NPS because of their
short service span. The benefit of NPS, it
should be noted, accrues over a long span
of time (30 years or more) deriving the
benefit from the power of compounding the
accrued amount!
How pension Bill will actually decline?
•Bunching Effect Will Peter Out. Bunching implies same
salary, and hence pension, for a particular rank even with
different years of service, despite the Running Pay Band
System introduced by 6th Central Pay Commission—CPC-(salary increases automatically with three per cent annual
increment in Running Pay Band System; hence higher
salary for higher number of years of service).
How pension Bill will actually decline?
Experts say another way to comprehend the
declining financial implication of annual review is
to draw an analogy from the ‘Damping Out’ of a
Sinusoidal Wave. Unless there is an external
impulse, the sinusoidal wave gets damped
out. Similarly, as Bunching Effect and other
anomalies exit the system of pay and pensions,
with no external impulse (i.e, change in terms
and conditions of service), the additional financial
implications of annual review of OROP will
continuously reduce and in steady state will be
almost zero.
How pension Bill will actually decline?
•Theoretically, if there are 300 Cells in the OROP table (10
Ranks as Column Heads, 30 Qualifying Service as Row
Heads) and all 300 Cells are to be enhanced by one and
half per cent next year, the additional financial
implication will still be capped at one and half per
cent. However, actually only few Cells may change
through annual review of OROP tables and additional
financial implication of each Cell may range from 0 to one
point five per cent approximately. Hence, overall
additional financial implications will be much lower than
one and half per cent.
•It was actually mathematically computed as 0.85 per cent
using CGDA (Comptroller General, Defence Accounts)
data for JCOs/OR.
How will the OROP be implemented?
Pension on 01.04.2014
Pension on 01.07.2014
X
X+ Increment
X = Pension of an
individual who retires
on 01.04.2014 and this
can be taken from
readily available data.
All past pensioners are
brought at par as on
01.04.2014 The table
does not include groups
as the definition
does not mention them.
X+ increment = First Annual
increment to bring all
pensioners at par on
01.07.2014
This brings all on par as on
01.07.2014 so that future
annual increment in Jul
every year.
Pension on 01.07.2015
onwards till 7 PC
X+ increment+ Annual
increment
X+ increment+ Annual increment
=50% of annual increment due i.e
3% which ll increase pension by
1.5% every year.
Defence Minister has stated that OROP will be
implemented soon. So, why is IESM protesting for non
implementation of OROP? dont' you trust the PM? RM?
• We have high hopes and regard for our PM. We
believe him. Yet, we are very skeptical of and have
experienced the machinations of the Indian
Bureaucracy, particularly the MoD. They are old hands
at scuttling any move by the Legislative and any
rulings by the Judiciary that favors or uplifts the
conditions of the Faujis. One e.g
• ‘Maj Gen Vains case’ the Supreme Court (SC) ruling
did restore his pension to be marginally above
Brigadiers but less than the Maj Generals who retired
after 2006, was a grudging saving grace. However,
the ignominy continued because the government did
not implement the full SC ruling which actually
amounted to OROP.In the last hearing the Gov rep
stated OROP will be implemented in 3 months and
that was in Mar 2015
• Given the reality of veterans being close to ‘passing
on’, the issue of OROP assumes great expediency.
Why the lack of Trust?
The Koshiyari committee recommendations submitted in
2011 were ignored till February 2014 to the detriment of
the UPA, but where was the vocal BJP on the issue of
OROP when it stalled the Parliament for several weeks and
months on other issues?
If the BJP did mention OROP in Parliament as often as the
impression is being conveyed, there must be something
on the record of Parliament after 2011.
How has the OROP fared from 2004 in Parliament? Here is
the data available on the internet though Lok Sabha and
Rajya Sabha websites and only the following information
was available (Pls try and keep track of BJP members
questions): -
Why the lack of Trust?
08 Dec 2004 – Shri Prabhunath Singh (RJD) raises a
query but is absent (details not available)
28 Apr 2005 – Dr Col (retd) Dhani Ram Shandil (Shimla
- INC) raises a question (details of reply not available)
18 Aug 2006 – Shri Kishan Singh Sanghwan (BJP,
deceased 2012) raises a question and Shri B K
Handique, MoS Defence replies that OROP is not possible
due financial, administrative, and legal reasons as
recommended by a Committee of Secretaries
23 Aug 2007 – Shri P K Dhumal (BJP) raises a question
(details of reply not available)
26 Feb 2009 – Shri Karan Singh Yadav (Alwar - INC)
raises a question (details of reply not available)
Why the lack of Trust?
21 Aug 2010 – Shri Pratap Singh Bajwa (Gurdaspur –
INC) raises a question (details of reply not available)
25 Aug 2010 – Shri Arun Jaitley (BJP) – Nonimplementation of OROP by Govt (in his tenures in Rajya
Sabha from Feb 2009 to Feb 2014;
08 Jul 2014 - The principle of One Rank One Pension for
the Armed Forces has been accepted by the
Government. The modalities for implementation were
discussed with various stakeholders and are presently
under consideration of the Government. It will be
implemented once the modalities are approved by the
Government. This information was given by Minister of
State for Defence Rao Inderjit Singh (BJP)in a written
reply to Dr T Subbarami Reddy in Rajya Sabha on July 8,
2014.
Why the lack of Trust?
08 Nov 2014 - The principle of One Rank One Pension for the
Armed forces has been accepted by the Government. The
modalities for implementation were discussed with various
stakeholders and are presently under consideration of the
Government. It will be implemented once the modalities are
approved by the Government. No Budget was allocated for the
purpose in the Budget 2013-14. Total number of beneficiaries
for OROP will be known once the modalities are
approved. This information was given by Minister of State for
Defence Rao Inderjit Singh (BJP) in a written reply to Shri
Hukum Singh and others in Lok Sabha today.
25 Nov 2014 – Statement in respect of Para (a) to (c) of Rajya
Sabha Starred Question No. 31 for 25.11.2014 regarding
implementation of One Rank One Pension:
Reply (a) to (c): The principle of One Rank One Pension for
the Armed Forces has been accepted by the Government. The
modalities for implementation were discussed with various
stakeholders and are presently under consideration of the
Government. It will be implemented once the modalities are
approved by the Government.
Few Discriminations
Type of Allowance
Disabled Employees
(a) Protection of Service
(b) Pay and Allowances
(c) Pension
(d) Right to life of dignity
of self and family
Civilian Employee
Govt has to retain them
till 60 yrs under Disability
Act
Full protection under
Section 47 of the Act. Will
not be discharged on
account of disability.
Full pay and allowances
admissible till the age of
60 even if unable to attend
any official duty. Can even
be kept on supernumerary
post and paid all pay and
allowances.
Entitled to full service
length till superannuation
and pension thereafter.
Full pay and pension and
complete Government
protection/cover with
entitled facilities
Admissible to dependents
Faujis
Invalided (Thrown) out
of service immediately
Defence Forces exempted
from operation of Section
47. Hence no protection of
employment available in
case of disability.
Employee can be
discharged on account of
disability.
Nil Admissible
Nil Admissible
Nil. No facilities or
protection for self and
dependents
Increase in Pension of 108 times
highest rank employee Highest Civilian Functionary
from 1973 to 2006
Pension
1973 - Rs 416.50/-pm
2006 - Rs 45000/-pm
45 times
Highest Def Rank Pension
1973 - Rs 1000/-pm
2006 - Rs 45000/-pm
Period of Service
Upto60 years of age
85%
compulsorily
retired
between 35 -37 years age.
12-13% compulsorily retired
between 40-54 years age
Career Progression
Three
Promotions
at Three promotion at 8, 16, 24
10,20,30 years of service
years of service.
85% compulsorily retired at
15-17 years’ service; thereby
denied 3rd career progression
Officer’s Promotion
opportunities
100%
years’
100%
years’
Non-functional
Upgradtion (NFU)
•
•
JS Pay at approx22 yrs.
Addl Secy Pay at 32yrs
Nil
Support of Heath Care
•
Per member approx Rs
10000/-
Per member approx Rs
10000/-
Joint Secy at 16-18 1% Maj Gen at 32-33 years of
Service
service.
Addl Secy
at 32 3% Lt Gen 33-35years
Service
Who are getting OROP already?
Top five ranks in the army comprise only 10%
of the officer strength. Contrast this with the
civil services where entire batches become
Joint Secretaries. Thus with majority entitled
to NFFU they are getting OROP.
To sum up
From the Finance Minister statement in the Economic Times of
05 May 2015,we know that “Tax exemptions and incentives to
corporate have resulted in a revenue impact of Rs 62,398.6 cr. to
the exchequer in 2014-15, 8 per cent higher than the previous
fiscal, Parliament was informed today. In a written reply to a
question in the Rajya Sabha , Finance Minister Arun Jetly said the
details of revenue impact on central taxes due to various
concessions and exemptions have been detailed in the Budget
document for 2015-16” but the same Minister is baulking at
giving Rs 8300 crores as estimated by the Defence Minister for
OROP.
So it is the FM with his Congress mind set who is the stumbling
block in implementation of OROP and his intentions were clear
from the meager allocation in his budgets knowing fully well the
actual financial implications.
How do we trust when the PM says he has four more years to
implement OROP? Is he buying time to once again fool the ESM
till next elections?
In the end let me quote extracts from a mail from Col
Karan Kharb after his visit to Jantar Mantar
“I learnt that Ram Chander (60) a teacher in Jhunjunu
(Rajasthan) was planning to commit suicide either by hanging from
the tree or by self-immolating himself.
Why? Because his son - a Hav in a Grenadiers unit had sacrificed
his life in a terrorist encounter in Kupwara (J&K) in 2012 leaving
behind three younger siblings, a daughter and a son.
"Why are you so angry. Your daughter-in-law must be getting "full
last drawn salary" of your son which is much higher than any family
pension rate? You are not even affected by OROP.“
Kya baat kar rahe ho aap? Mera beta apne ghar walon ke liye
Kupwara mein jakar marne gaya tha kya? Nahin Sahb wo desh ke
liye qurban hua hai. Mera dil aaj saari Fauj ke liye ro raha hai. Yeh
Neta, ye Tehsildar se lekar Chief Secretary tak ke officer log loot
machaye hue hain. Udhar Jo sainik desh ki sarhadon par khun
bahakar ya to mar jate hain ya pension aa jate hain -- aur yeh
unka haq nahin de rahe. OROP jise koi bhi nakar bhi nahi raha lekin
de bhi nain raha. Aise desh mein mein jeena hi nahi
chahta.mein.....Iss se to angrezon ki ghulami achchi thi....."