OROP Defence Forces Personnel

Government of India
O/o THE PRINCIPAL CONTROLLER OF DEFENCE ACCOUNTS (PENSIONS)
DRAUPADI GHAT, PRAYAGRAJ- 211014

Circular No. 679

Dated: 04.12.2024

To

1. The Chief Accountant, RBI, Deptt. of Govt, Bank Accounts, Central Office C-7, Second Floor, Bandra- Kurla Complex, P B No. 8143, Bandra Hast Mumbai- 400051
2. All CMDs, Public Sector Banks
3. The Nodal Officers, ICICI/ HDFC/ AXIS/ IDBI Banks
4. All Managers, CPPCs
5. Military and Air Attache, Indian Embassy, Kathmandu, Nepal
6. The CDA (PD), Meerut
7. The CDA Chennai
8. The Director of Treasuries, All States
9. The Pay and Accounts Officer, Delhi Administration, R K Puram and Tis Hazari, New Delhi
10. The Pay and Accounts Office, Govt. of Maharashtra, Mumbai
11. The Post Master, Kathua (J&K) and Camp Bell Bay .
12. The Principal Pay and Accounts Officer, Andaman and Nicobar Administration, Port Blair

Subject: One Rank One Pension (OROP) to the Defence Forces Personnel.

Reference: Circular No. 555 dated 04.02.2016.

Pension Disbursing Agencies (PDAs) are aware that as per this office Circular No. 555 dated 04.02.2016, pension of Armed Forces Personnel was to be revised w.e.f. 01.07.2014 as per tables attached with the Circular,

2. Now, Competent Authority has decided that terms of engagement mentioned in Appendix “X” of Circular No. 555 dated 04.02.2016 for under mentioned ranks may be revised w.e.f. 30.05.1998 as under:-

3. All other terms and conditions shall remain unchanged.
4, Hindi version will follow.

No. Gts/Tech/ 0183/Vol-X
Dated: 04.12.2024

(S.K. Tripathi, IDAS)
ACDA(P)

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MoD ID No. 1(1)/2023/D (Pen/Pol) dated 18.05.2023

रक्षा मंत्रालय/ Ministry of Defence
पूर्व सैनिक कल्‍याण विभाग /Department of Ex-Servicemen Welfare
रक्षा पेंशन (नीति)/D (Pension/Policy)

Room No. 220A, B-Wing,
Sena Bhawan, New Delhi-110011.

Subject: Separate table No. 8 issued with OROP letter dated 20.01.2023 for post 01.01.2016 retired JCOs/ORs who were drawing Group X pay @ Rs. 6200/- after implementation of 7th CPC recommendation – reg.

This Department has been receiving several representations of pre-01.01.2016 retirees for making them eligible for revised Group X Pay of Rs. 6200/- which was granted to post-01.01.2016 retired PBORs in implementation 7th CPC recommendation.

2. As per recommendations of the 6th CPC, groups X and Y were given a common 7th pay scale w.e.f. 01.01.2006, i.e. they are at the same notches in Pay Bands 1 and 2 and receive the same grade pay, with one distinguishing feature viz, ‘X-pay’ to those in Group X.

3. The 7th CPC vide para 6.2.88 of their Report have recommended:

• (i) X Pay for JCOs/ORs in Group X at Rs. 6200/- PM for all X trades which involve obtaining a qualification which is equivalent of a diploma recognized by AICTE. This amount is the difference in the minimum of the Pay level 6 (corresponding to Grade Pay of Rs. 4200/- in VI CPC) and Pay level 5 (corresponding to Grade Pay of Rs. 2800/- in VI CPC).
• (ii) X Pay for JCOs/ORs in Group X at Rs. 3600/- PM (standard fitment of 2.57 on the existing X pay of Rs. 1400), for those currently in X pay, but not having a technical qualification recognized by AICTE.

4. The above recommendation of the 7th CPC has been accepted by the Govt. and the X Pay of the X-Group personnel were revised accordingly, w.e.f. 01.01.2016. The recommendations of the 7th CPC are applicable to those personnel who were in service on or after 01.01.2016 and drawing pay in the revised pay scales applicable w.e.f. 01.01.2016. The recommendations of the 7 CPC are not applicable to those who have already retired from service before 01.01.2016. 

5. Hence, there are two rates of X Pay w.e.f. 01.01.2016 for X-Group Personnel and they are eligible for pension as per reckonable emoluments drawn by them at the time of retirement from service. Reckonable emoluments towards pensionary benefits includes Pay in Pay matrix, Military Service Pay and X-Group Pay & Classification Allowance, if any, drawn by the JCOs/ORs. Accordingly, the JCOs/ORs who have drawn the X Pay of Rs. 6200/- during their service are eligible for benefits of the higher rate of X-Pay in pension also. Other are eligible for lower rate of X-Pay. 

6. in the OROP revision w.e.f. 01.07.2019, the pension of all the Defence Forces pensioners/family pensioners has been re-fixed on the basis of the average of minimum and maximum pension of Defence Forces personnel retired in calendar year 2018 in the same rank with the same length of service. The scheme of two different rate of X Pay has been made operational from 01.01.2016 and the same can be applied prospectively. Hence, separates tables have been prepared for pre-01.01.2016 retirees and post-01.01.2016 retirees. Pension Table No. 7 applicable for the personnel who retired before 01.01.2016 and table No. 8 has been prepared for those who have drawn the higher rate of X Pay i.e. Rs. 6200/- w.e.f. 01.01.2016.

7. it may also be pointed out that Hon’ble Supreme Court in its order dated 16.03.2022 in WP(C) No. 419/2016 has observed that “It is not a legal mandate that the pensioners who held the same rank must be given the same amount of pension. The varying benefits that may be applicable to certain personnel which would also impact the pension payable need not be equalised with rest of the personnel.” Hon’ble Supreme Court has also observed that the benefit of new element in a pensionary scheme can be prospectively applied.

8. Further, Indian Ex-Servicemen Movement had filed MA No. 499/2023 in WP(C) No. 419/2016 for seeking intervention of Hon’ble Supreme Court in the matter. Hon’ble Court on 17.04.2023 has found the said MA misconceived and dismissed it accordingly in view of Hon’ble Supreme Court Judgement dated 16.03.2023.

9. It is requested that the representations received in the matter may be disposed of at your end on the basis of above mentioned facts.

(B L. Meena)
Under Secretary to the Govt. of India

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O/o THE PRINCIPAL CONTROLLER OF DEFENCE ACCOUNTS (PENSIONS)
DRAUPADI GHAT, PRAYAGRAJ- 211014

Circular No. 667

Dated: 28th Feb 2023

To

1. The Chief Accountant, RBI, Deptt. of Govt, Bank Accounts, Central Office C-7, Second Floor, Bandra – Kurla Complex, P B No. 8143, Bandra East Mumbai-400051
2. All CMDs, Public Sector Banks.
3. The Nodal Officers, ICICI/HDFC/AXIS/IDBI Banks
4. All Managers, CPPCs
5. Military and Air Attache, Indian Embassy, Kathmandu, Nepal
6. The PCDA (WC), Chandigarh
7. The CDA (PD), Meerut
8. The CDA, Chennai
9. The Director of Treasury, All States
10. The Pay and Accounts Officer, Delhi Administration, R K Puram and Tis Hazari, New Delhi.
11. The Pay and Accounts Office, Govt. of Maharashtra, Mumbai
12. The Post Master Kathua (J&K), Camp Bell Bay.
13. The Principal Pay and Accounts Officer Andaman and Nicobar Administration Port Blair.

Subject: Implementation of One Rank One Pension (OROP) revision to the Defence pensioners w.e.f. 01.07.2019.

Reference:- This office Circular No. 666 dated 20.01.2023 and MoD ID No. 4(5)/2016-D(P/L) Vol-IV dated 27.02.2023.

Government of India, Ministry of Defence letter No. 1(1)/2019/D(Pen/Pol) /Vol-II dated 20.01.2023 and No. 1(1)/2019/D(Pen/Pol) dated 04.01.2023 on the above subject have been issued in implementation of OROP w.e.f. 01.07.2019. This office has also issued necessary directive to all PDAs in implementation of same vide Circular No. 666 dt 20.01 2023.

2. Attention is invited to para 3 of this office Circular No. 666 dt 20.01.2023 vide which it has been directed that payment of arrears accrued on account of revision of pension, if any, shall be made in four equal half yearly installments, however. all the family pensioners including those in receipt of Special/Liberalised Family Pension and all Gallantry award winners shall be paid arrears in one installment as stipulated earlier.

3. In pursuance to Hon’ble Court order dt 27.02.2023 w.r.t. MA No. 219/2023 in WP(C) No. 419/2016, MoD has issued directions vide MoD ID No. 4(5)/2016-D(P/L) Vol-IV dated 27.02.2023 to pay full arrear in one instalment on account of OROP revision w.e.f. 01.07.2019 to all eligible pensioners by 15th March 2023. In order to ensure timely payment of arrears may be authorised before 15th March 2023 (in one go).

4. A copy of this circular along with the Government of India, Ministry of Defence ID No. 4(5)/2016-D(P/L) Vol-IV dated 27.02.2023 are also available on the website of this Office (www.pcdapension.nic.in).

Hindi version will follow.

No. Gts/Tech/OROP-II/ 0183/Vol-V
Dated: 28.02.2023

(Rajendra Kumar Gupta)
Asstt. Controller of Defence Accounts (P)

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One Rank One Pension to the Defence Pensioners: OROP-2 Pension Table issued on 20.01.2023

No. 1(1)/2019/D (Pen/Pol)/Vol-II
Government of India
Ministry of Defence
Department of Ex-Servicemen Welfare

New Delhi, Dated: 20th January 2023

To
The Chief of the Defence Staff
The Chief of the Army Staff
The Chief of the Naval Staff
The Chief of the Air Staff

Subject: One Rank One Pension to the Defence Forces Pensioners.

The undersigned is directed to refer to this Ministry’s letter No. 1(1)/2019/D(Pen/Pol) dated 04.01.2023 notifying revision of pension under One Rank One Pension Scheme (OROP) with effect from 01.07.2019 to all Pre 01.07.2019 Defence Forces Pensioners/Family Pensioners. Para 3 of the letter provides that detailed instructions relating to implementation of OROP along with tables indicating revised pension for each rank and each category shall be issued separately.

2. The undersigned is now directed to say that in order to quicken the process of revision of pension/family pension, total 121 tables indicating rates of pension/family pension under OROP scheme are appended to this order. The appended tables indicate revised rates of Retiring/ Service/ Special/ Disability/ Invalid/ Liberalized Disability/ War Injury Pension including Disability/ War Injury Element and Ordinary/ Special / Liberalized Family Pension of Commissioned Officers, Honorary Commissioned Officers, JCOs/ORs and Non-Combatants (Enrolled) of Army, Navy, Air Force, Defence Speciality Corps & Territorial Army Retired / Discharged / Invalided. Out from Service/died in service or after retirement. The existing pension of all Pre- 01 .07.2019 (except pensioners entered on or after 01 .07.2014 pre-matrix retirement/own request as provided in para 4 of MoD letter No. 1 2(1)/2014/D (Pen/Pol)Part.II dated 07.11.2015 as amended vide Ministry of Defence, Department of Ex-Servicemen letter No. 12(1)/2014/D (Pen/Pol) Pan-II dated 06.06.2017) pensioners/ family pensioners shall be enhanced with reference to applicable table for the rank (and group in case of JCOs/ORs) in which pensioned with reference to the actual qualifying service as shown in Column-1 of the tables subject to maximum term of engagement front time to time. The rate of pension of pensioners/ family pensioners drawing more than the revised rate of pension/ family pension indicated in annexed tables, shall remain unchanged.

APPLICABILITY

3. The provisions of this letter shall be applicable to all pensioners/ family pensioners who had been retired/ discharged/ invalided out from service/ died in service or after retirement in the rank of Commissioned Officers, Honorary Commissioned Officers, JCOs/ORs and Non- Combatants (Enrolled) of Army, Navy, Air Force, Defence Security Corps, Teritorial Army & Ex-State Forces and are in receipt of pension/ family pension as on 01.07.2019 (except pensioners retired after previous OROP revision on pre mature retirement/own request).

3.1 The provisions of this letter, however, do not apply to UK/ HKSRA/ KCIO pensioners, Pakistan & Burma Army pensioners, Reservist pensioners and pensioners in receipt of Ex-gratia payments and pensioners retired after previous OROP revision on pre-mature retirement/own request (as provided in para 4 of MoD letter dated 07.11.2015).

METHODOLOGY FOR IMPLEMENTATION

4. It is provided in para-2.6 of MoD letter dated 04.01.2023 that the pensioners retired on or after 01.07.2014 on premature retirement/own request are not eligible for benefits of OROP. The information regarding premature retirement/own request is not available in the Pension Payment Order (PPO). Hence, table-based revision by PDA in such cases is not feasible.

4.1 Therefore, it is decided that the pension of all pensioners retired/discharged on or after 01.07.2014 and before 01.0.7.2019) will be 7fy/6f/fC/f/6 High corrigendum PPO. Since most of the data of pensioners/family pensioners have been migrated in SPARSH application, therefore, revision of pension of migrated pensioners/family pensioners wil1 be done through SPARSH application only. The corrigendum PPO in the case of remaining pensioners retired/discharged on or after 01.07.2014 and before 01.07.2019 will be issued by Pension Sanctioning Authorities in affected cases, so-moto (where rates of pension under these orders are beneficial than the rates of their pension as on 01.07.2019).

4.2 In all other cases i.e pensioners retired/discharged rip to 10.06.2014, invalided out prior to 01.07.2019 and family pensioners, this revision will be implemented based on the pension tables as appended with this order. All Pension Disbursing Agencies (PDAs) hand high disbursement of pension to Defence pensioners are hereby authorized to carry out revision of Retiring/ Service/ Special/ Disability/ invalid/ Liberalized Disability/ War Injury Pension including Disability/ War Injury Element and Ordinary/ Special/ Liberalized Family Pension of all, such pre-01.07.2019 pensioners/family pensioners drawing pension as on 01.07.2019 in terms of this order with applicable rates of dearness relief without calling for any applications from the pensioners and without any further authorization from the Pension Sanctioning Authorities concerned.

4.3 The revised rates of pension under this letter are average of in minimum & maximum rate of pension for a rank and a qualifying service of live data of 2018 retirees. Wherever, the rates of higher qualifying service of a rank are lower than rates of lower qualifying service in sane rank or data is/are blank for higher qualifying service then the same have been protected by higher rate of lower qualifying service, due to this, many rates in same column appears equal. Similarly, wherever the revised rate of pension under this order are lower in higher rank than rate in lower rank in same qualifying service then the same have been protected with higher rates of pension in lower rank in same qualifying service resulting similar rate in some qualifying service in two adjacent columns.

5. Where the revised pension as on 01.07.2019 worked out in terms of this letter, happens to be less than the existing pension/ family pension as on 01.07.2019, the pension shall not be revised to the disadvantage of the pensioner/ family pensioner.

6. Arrears on account of revision of pension front 01.07.2019 till date of its implementation shall be paid by the Pension Disbursing Agencies in four half yearly installments. However, all the family pensioners including those in receipt of Special/Liberalized family pension and all Gallantry award winners shall be paid arrears in one installment.

7. The initial Pension Payment Order (PPO) or its Corrigendum PPO (Corr PPO) indicates rank, group and qualifying service for which the individual has been pensioned. This information is available with Pension Disbursing Agencies as they have revised pension of all such pensioners in the recent past in terms of Government orders issued for implementation of recommendations of 7th CPC. Hence, however, any information regarding qualifying service, rank, group etc., is not available with Pension Disbursing Agencies, such cases may be referred to Pension Sanctioning Authority concerned on the Piofollra enclosed as Annexure A. The Pension Sanctioning Authorities concerned will provide the requisite information from the available records within 15 days of the receipt of request from the Pension Disbursing Agencies.

8. In case of any doubt relating to revision of pension in terms of this letter, Pension Disbursing Agencies way immediately take tip the matter with Nodal Officers of respective PSAs, details of which shall be notified by Pr. CDA (P), Prayagraj in their implementation instructions.

9. The revised rates of pension under this letter shall be basic pension from 01.07.2019 and therefore, additional pension as applicable to the old age pensioners/family pensioners on attaining the relevant age (80 years and above) shall also be enhanced by the PDAs from 01.07.2019 or the date from which the pensioner attains the age of 80 years or more, whichever is later.

PAYMENT OF LIFE TIME ARREARS (LTA)

10. If a pensioner to whom the benefit accrues under the provisions of this letter has died/dies before receiving the payment of arrears, the Life Time Arrears of pension (LTA) shall be paid in the following manner .-

• a) If the claimant is already in receipt of Family Pension or happens to be the pensioner in whose favour Family Pension already stands notified and the awardees has hot become ineligible for any reason, the LTA under the provisions of this letter should be paid to such a claimant by the PDA on their own.
• b) If the claimant has already received LTA in the past in respect of the deceased to whom the benefit would have accrued, the LTA under the provisions of this letter should also be paid to such a claimant by the PDA on their own.
• c) If the claimant is a person other than the one mentioned at 10(a) & 10(b) above, payment of LTA shall be made to the legal his /hers as per extant Government orders.

11. The following elements shall continue to be paid as separate elements in addition to the pension revised under this order .-

• i) Monetary allowance attached to gallantry awards viz. Param Vir Chakra, Ashok Chakra etc.
• ii) Constant Attendance Allowance, where admissible.
• iii) Dearness relief as sanctioned by the Government from time to time.

MISCELLANEOUS INSTRUCTIONS

12. No arrears on account of revision of pension/family pension shall be admissible for the period prior to 01.07.2019.

13. No commutation of pension Small be admissible on revised/additional amount of pension accruing as a result of revision of pension under this letter. However, the existing amount of pension, if any, that has been commuted will continue to be deducted from the revised pension.

14. As a result of this letter, there will be no change in the amount of gratuity already determined and paid with reference to the rules in force at the time of retire/discharge/invalidment/death.

15. Any overpayment of pension coming to the notice or under process of recovery shall be adjusted in full by the Pension Disbursing Agencies against arrears becoming due on revision of pension on the basis of this order.

METHODOLOGY FOR REPORTING

16. An intimation regarding disbursement of revised pension shall be furnished by the Pension Disbursing Agencies to the office of the Pr. CDA(P), Prayagraj in the format prescribed as Annexure-B to this letter in the following month in which revision takes place. PDAs shall also ensure that an intimation regarding revision of pension is invariably conveyed to the pensioners concerned for their information ii respective of the fact that the same is beneficial to them or not. The Public Sector Banks disbursing defence pensions through Central Pension Processing Centers (CPPC), the progress report shall be furnished by the CPPC of the bank directly to the office of Pr. CDA (Pensions) Prayagraj through electronic sections.

17. All other terms and conditions which are not affected by this order shall remain unchanged.

18. This issues with concurrence of Finance Division of this Ministry vide their ID No10(01)/2019/Fin/Pen dated 16.01.2023

19. Hindi version will follow.

(B L Meena)
Under Secretary to the Govt. of India

Index of Tables in Appendix to MOD Letter No. 1(1)/2019/D (pen/Pol)/Vol-II dated 20th January 2023.

SPECIAL FAMILY PENSION

ENHANCED RATE OF ORDINARY FAMILY PENSION

NORMAL RATE OF ORDINARY FAMILY PENSION

SPECIAL DEPENDENT FAMILY PENSION /2ND LIFE AWARD OF SPECIAL FAMILY PENSION

LIBERALISED FAMILY PENSION

LIBERALISED FAMILY PENSION TO CHILD/CHILDREN

LIBERALISED DEPENDENT PENSION/ 2ND LIFE AWARD OF LIBERALISED FAMILY PENSION(RATES FOR BOTH PARENTS)

LIBERALISED DEPENDENT PENSION/ 2ND LIFE AWARD OF LIBERALISED FAMILY PENSION(RATES FOR SINGLE PARENTS)

DISABILITY ELEMENT OF DISABILITY PENSION

WAR INJURY ELEMENT OF WAR INJURY PENSION (DISCHARGE ON ATTENDING PRESCRIBED AGE OF RETIREMENT FOR ICOS AND ON COMPLETION OF TERM OF ENGAGEMENT FOR JCOS/ORS

WAR INJURY ELEMENT (INVALIDED OUT)

PRE 01.06.1953 DISCHARGED PERSONNEL

The rates of Ordinary Family Pension, Special Family Pension, 2n  Life Award of SFP, Liberalized Family Pension, 2nd Life Award of LFP, Disability/Liberalized Disability Element for 100% Disability, War Injury Element for 100%Disability (Invalid out cases) meant for Post-53 retirees JCOs/ORs of Regular Army of Group “Y” may be allowed to the families of Pre-1953 retirees as per OROP Revision w.e.f. 01.07.2019.

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No. 1(1)/2019/ D(Pen/Pol)
Government of India
Ministry of Defence
Department of Ex-Servicemen Welfare

Sena Bhawan, New Delhi,
Dated, the 4th January, 2023

To

The Chief of Defence Staff
The Chief of Army Staff
The Chief of Naval Staff
The Chief of Air Staff

Subject: Next revision of pension of Defence Forces Personnel/ family pensioner under One Rank One Pension (OROP)

Sir,
The undersigned is directed to refer to the provisions contained in para 3(v) of this Ministry’s letter No. 12(1)/2014/D (Pen/Pol)-Part-Il dated 7.11.2015 regarding re-fixation of pension of Defence Forces Personnel under OROP in future every 5 years.

2. The President is pleased to decide that next revision of pension under OROP Scheme would be effective from 1.7.2019. Revision of pension is based on the principles adopted in MoD letter dated 07.11.2015 which are as under:

• 2.1. Pension of the past pensioners would be re-fixed on the basis of pension of Defence Forces retirees of calendar year 2018 and the benefit will be effective from 01.07.2019.
• 2.2. Pension will be re-fixed for eligible Defence Forces pensioners/family pensioners on the basis of the average of minimum and maximum pension of Defence Forces Personnel retired in calendar year 2018 in the same rank and with the same length of service.
• 2.3. Pension for those drawing above the average shall be protected.
• 2.4. The benefit would also be extended to family pensioners including war widows and disabled pensioners.
• 25. Arrears will be paid in four half yearly instalments. However, all the family pensioners including those in receipt of Special/ Liberalized Family Pension and Gallantry Award Winners shall be paid arrears in one instalment.
• 2.6. Personnel who opt to get discharged w.e.f. 01.07.2014 (on or after 01.07.2014) on their own request under Rule 13(3)i(i)(b), 13(3)II(i)(b), 13(3)II(iv) or Rule 16B of the Army Rule 1954 or equivalent Navy or Air Force Rules will not be entitled to the benefits of OROP.

3. Detailed instructions along with tables for revision of pension for each rank and each category under OROP Scheme, shall be issued separately.

4. This issues with the concurrence of Finance Division of this Ministry vide their ID Note No. 10(01)/2019/Fin/ Pen dated 30.12.2022.

5. Hindi version will follow.

Yours faithfully,

(B.L Meena)
Under Secretary to the Govt. of India

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Armed Forces Personnel retired up to June 30, 2019 to be covered; Over 25.13 lakh to be benefitted

Rs 23,638 crore to be paid as arrears from July 2019 to June 2022

Estimated additional annual expenditure for implementation of the revision calculated as approx. Rs 8,450 crore @31% Dearness Relief

Posted On: 23 DEC 2022

The Union Cabinet, headed by Prime Minister Shri Narendra Modi, has approved revision of pension of Armed Forces Pensioners/family pensioners under One Rank One Pension (OROP) w.e.f. July 01, 2019. Pension of the past pensioners would be re-fixed on the basis of average of minimum and maximum pension of Defence Forces retirees of calendar year 2018 in the same rank with the same length of service.

Beneficiaries

The Armed Forces Personnel retired up to June 30, 2019 {excluding pre-mature (PMR) retired w.e.f. July 01, 2014} will be covered under this revision. More than 25.13 lakh (including over 4.52 lakh new beneficiaries) Armed Forces Pensioners/family pensioners will be benefitted. Pension for those drawing above the average shall be protected. The benefit would also be extended to family pensioners, including war widows and disabled pensioners.

Arrears will be paid in four half-yearly instalments. However, all the family pensioners, including those in receipt of Special/Liberalised Family Pension and Gallantry Award Winners, shall be paid arrears in one instalment.

Expenditure

The estimated annual expenditure for the implementation of the revision has been calculated as approx. Rs 8,450 crore @31% Dearness Relief (DR). Arrears w.e.f. July 01, 2019 to December 31, 2021 have been calculated as over Rs 19,316 crore based on DR @ 17% for the period from July 01, 2019 to June 30, 2021 and @31% for the period from July 01, 2021 to December 31, 2021. Arrears w.e.f. July 01, 2019 to June 30, 2022 have been calculated as approx. Rs 23,638 crore as per the applicable dearness relief. This expenditure is over and above the ongoing expenditure on account of OROP.

Rank wise likely estimated increase (in rupees) in service pension under OROP w.e.f. July 01, 2019:

Background

The Government took a historic decision to implement OROP for the Defence Forces Personnel/family pensioners and issued policy letter on November 07, 2015 for revision of pension w.e.f.July 01, 2014. In the said policy letter, it was mentioned that in future, the pension would be re-fixed every 5 years. Approx. Rs 57,000 crore has been spent @Rs 7,123 crore per year in eight years in the implementation of OROP.

PIB

Download Union Cabinet approves revision of pension of Armed Forces Pensioners/ family pensioners w.e.f. 1st July 2019 PDF

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LOK SABHA
UNSTARRED QUESTION NO. 2288
TO BE ANSWERED ON 29th July, 2022

ONE RANK ONE PENSION SCHEME

2288. SHRI RAJMOHAN UNNITHAN:
Will the Minister of DEFENCE be pleased to state:

(a) the current status of implementation of the One Rank One Pension (OROP) scheme;

(b) whether the army veterans have been demanding revision in OROP scheme for a long time and if so, the details thereof;

(c) whether the Supreme Court on March 22 this year has instructed the Government to revise the pension of ex-servicemen within three months; and

(d) if so, the response of the Government thereto?

ANSWER

MINISTER OF STATE (SHRI AJAY BHATT)
IN THE MINISTRY OF DEFENCE

(a): The Government has implemented One Rank One Pension (OROP) vide MoD letter no. 12(1)/2014/D (Pen/Pol) – Part-II dated 07.11.2015 and tables for fixation of pension were issued vide MoD letter no. 12(1)/2014/D (Pen/Policy)-Part-II dated 03.02.2016.

(b) to (d): Hon’ble Supreme Court vide its order dated 16.03.2022 directed that in terms of the communication dated 7th November 2015, a re-fixation exercise shall be carried out from 1st July 2019, upon the expiry of five years. Revision of pension under OROP with effect from 01.07.2019 is under process.

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On Wednesday, the Supreme Court concluded that the Armed Forces One Rank One Pension (OROP) scheme is a policy decision with no constitutional defects.

According to a bench of Justices DY Chandrachud, Surya Kant, and Vikram Nath, the Centre’s OROP policy choice is not arbitrary, and it is not for the court to intervene in government policy decisions.

It was ruled that the outstanding OROP re-fixation procedure, which had not been completed due to the pendency of a case before the court after the five-year deadline had elapsed, be completed on July 1, 2019, and that the pensioners’ arrears be paid within three months.

The Supreme Court dismissed an appeal by the Ex-Servicemen Association, which wanted to implement the Bhagat Singh Koshyari Committee’s suggestion of one rank, one pension, with an automatic annual review rather than the present five-year review.

The Supreme Court has stated that whatever decision it makes would be based on concepts rather than numbers.

It said that when revising after five years, the five-year arrears are not taken into consideration. Ex-troubles servicemen’s can be alleviated to some extent if the period is decreased from five to a shorter one.

According to the Centre, when the pay is revised after five years, the maximum last drawn pay, which takes into consideration all circumstances and is provided to the lowest in the bracket, is the golden mean.

On February 16, the Supreme Court ruled that the Centre’s exaggeration of the OROP programme painted a “far rosier picture” than what is actually delivered to Armed Forces retirees.

The top court took notice on a petition filed by IEMS through attorney Balaji Srinivasan on July 11, 2016, seeking adoption of OROP as proposed by the Koshyari Committee, with an automatic annual revision rather than the current policy of periodic review every five years.

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One rank One Pension latest news 2021

OROP

Contents

1. Gaps in the Earlier Pension Policy. 02
2. A long pending issue. 03
3. Steps taken by the Government 07
4. OROP benefits 08
5. Financial Benefits.. 09
6. Who benefits from the reform. 10
7. OROP Media Reports. 12

CHAPTER 1

GAPS IN THE EARLIER PENSION POLICY

Before implementation of OROP, the computation of pension was linked to the pay drawn by the personnel in a particular pay scale/ pay band at the time of his/her retirement. Pay scales are revised to the higher side generally on the recommendation of Pay Commissions. As such, the personnel retiring after the revision of the pay scales got more pension than those who had already retired. Hence, the gap remained in the pension of the past and present retirees.

Our soldiers were patient for 40 years. They have never been out of discipline. They have always respected the system. They kept asking for this scheme, and our soldiers who are ready to sacrifice their lives for our country, were lied to.

-Prime Minister Narendra Modi

CHAPTER 2

A LONG PENDING ISSUE

Ex-Servicemen had been agitating for implementation of OROP for more than 40 years, but the same was not finalized prior to 2015. The issue of ‘One Rank One Pension’ has been considered in the past by various committees and bodies and generally not found acceptable on account of the principles as well as significant financial implications not only for defence services but also for the civilian employees as a whole. The substance of recommendations of these committees and bodies is summarized as under:

3rd Central Pay Commission: It recommended weightages in qualifying service for pension from 3 to 9 years depending on the ranks.

High Level Committee on problems of Ex-Servicemen – 1984 (K.P. Singh Dev Committee): The Committee recommended that the Government should consider the issue of ‘One Rank One Pension’ particularly in the light of the principle, which has been already established with respect to the pension of judges of the Supreme Court and the High Courts.

The 4th Central Pay Commission: The Commission observed that it is difficult to accept the suggestion for equalization of pension. Moreover, this would involve a considerable administrative and accounting work without conferring any uniform benefits to various categories of pensioners.

High Level Empowered Committee –1991 (Sharad Pawar Committee): No specific recommendation on the issue of ‘One Rank One Pension’ was given by the Committee.

5th Central Pay Commission: The Commission did not recommend grant of ‘One Rank One Pension’ by stating that every Pay Commission gives certain benefits in pay which are over and above the impact of inflation, either due to up gradation of recruitment qualifications or change in job contents. The benefits accorded on this account need not necessarily be passed on to the pensioners.

RM’s Committee Report (June, 2003): The RM’s Committee left the issue to be considered by the Inter-Ministerial Committee set up by the Government on the issue of ‘One Rank One Pension’.

Inter-Ministerial Committee: An Inter-Ministerial Committee was set up on 27.02.2003 by the Department of Pension and Pensioners’ Welfare to consider the demand of ‘One Rank One Pension’. The Committee, in its report submitted on 24.09.2004 did not favour grant of ‘One Rank One Pension’, but recommended grant of modified parity based on the maximum of the revised scale of pay introduced with effect from 01.01.1996 for PBOR.

The Parliamentary Standing Committee on Defence: The Committee in its 20th and 21st report reiterated their earlier recommendations for providing ‘One Rank One Pension’ to the Armed Forces Personnel.

Views of Ministry of Law on ‘One Rank One Pension’: “The present system has stood the test of judicial scrutiny. The same cannot be said for ‘One Rank One Pension’ and the legal feasibility of the same stands open to be adjudicated. Besides, there are financial aspects too that need to be kept in view”.

Group of Ministers: A Group of Ministers (GOM) was set up in January 2005 by the Government to look into this demand. GOM did not recommend ‘One Rank One Pension’.

6th Central Pay Commission: The 6th Pay Commission has also not recommended ‘One Rank One Pension’.

Cabinet Secretary Committee, 2009: The Committee went into this demand and other related issues, but did not recommended ‘One Rank One Pension’.However,it made seven recommendations aimed at narrowing the gap between past and current pensioners.

Standing Committee: The Standing Committee in its 7th and 9th (15th Lok Sabha) Report again reiterated their stand on ‘One Rank One Pension’.

Rajya Sabha Petition Committee: Rajya Sabha Petition Committee in its 142nd Report stated that the Government should implement ‘One Rank One Pension’ in the Defence Forces across the board.

Cabinet Secretary Committee (2012): The Committee did not recommend implementation of ‘One Rank One Pension’, however, it recommended various other ways to enhance pension of past retirees.

I had made a resolution before you for One Rank One Pension. You had to struggle a lot and launch movements during the tenure of previous governments. The nation is a witness to the same. Now the nation and you all are witnesses to the fact that not only has the One Rank One Pension been implemented but so far Rs.35 thousand crore has been distributed by our government. The government’s pension budget has increased from Rs.44 thousand crores to more than Rs.1 lakh 12 thousand crores.

– Prime Minister Narendra Modi

CHAPTER 3

STEPS TAKEN BY THE GOVERNMENT

The Government accepted the ‘One Rank One Pension’ by way of its mention in the President’s address to both Houses of Parliament on 09.06.2014 after the constitution of 16th Lok Sabha and an allocation of ₹ 1000 crore was provided in the Budget 2014-15 for implementation of OROP.

In pursuance of the Government decision to implement OROP for Defence Forces, a series of meetings were held in the Ministry of Defence for working out the details of its implementation. Keeping in view the magnitude and complexity of Defence pension, extensive consultations were held with experts and Ex- Servicemen before issue of Government order on implementation of OROP.

Demonstrating its commitment to the welfare of Ex-Servicemen, Government of India took the historic decision to implement OROP by issuing order on 07.11.2015. Armed Forces Personnel retired up to 30.06.2014 were covered under this Order.

CHAPTER 4

OROP BENEFITS

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. Thus, OROP implies bridging the gap between the rate of pension of the current pensioners and the past pensioners at periodic intervals. Salient features of OROP order were as under:

1. Pension of past pensioners would be re-fixed on the basis of pension of retirees of calendar year 2013 and the benefit will be effective from 01.07.2014
2. Pension will be re-fixed for all pensioners on the basis of the average of minimum and maximum pension of personnel retired in 2013 in the same rank and with same length of service.
3. Pension for those drawing above average shall be protected.
4. Arrears will be paid in four equal half yearly instalments. However, all the family pensioners including those in receipt of Special/Liberalized family pension and Gallantry award winners shall be paid arrears in one instalment.
5. Pension would be re-fixed every 5 years.

CHAPTER 5

Financial Benefits

To quicken the process of revision of pension/family pension under OROP, Government issued detailed orders on 03.02.2016 along with 101 pension tables indicating rates for revision of pension/family pension under OROP.

The existing pension of all pre 1.7.2014 pensioners/family pensioners were enhanced with reference to applicable table for the rank (and group in case of JCOs/ORs), with reference to the actual qualifying service as shown in the tables subject to maximum term of engagement for each rank as applicable from time to time. Pension of Public Sector Undertaking (PSU) absorbees who had opted for 100% commutation of pension, were also revised with reference to revised pension of the rank determined for regular category of pensioners.

Additional pension as applicable to the old age pensioners/family pensioners on attaining the relevant age (80 years and above) was also enhanced by the Pension Disbursing Authorities (PDAs) from 1.7.2014 or the date from which the pensioner attained the age of 80 years or more, whichever was later.

Years-wise details of actual expenditure made on release of arrears for implementation of OROP are as under:

Financial year – Amount disbursed on account of OROP arrears
2015-16 – Rs.2,861.55 crore
2016-17 – Rs.5,370.61 crore
2017-18 – Rs.2,563.24 crore
Total – Rs.10,795.40 crore

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Minutes of Virtual TSEWA Core Committee Meeting held at 1000 hrs on 27 March 2021

The following members attended:

1. Brig CS Vidyasagar President, in Chair
2. Cmde Sudheer Parakala Vice President
3. Col Dr GB Sethi General Secretary
4. Lt Col G Parvathesam Treasurer
5. Hony Capt B Joseph Joint Secretary
6. Brig SKS Rana, VSM President, TSEWA (Legal)
7. Col Srikatha Seshadri President, TSEWA (Karnataka)
8. Maj Gen SN Mukherjee President, TSEWA (WB)
9. WO Thiruchelvam President, TSEWA (Tamilnadu)
10. Cmde Kuldip Sandhu President, TSEWA (Mumbai Metro)
11. Cmde Ashok Kota Member
12. Lt Col Dr. K Bhaskar Reddy Member
13. Maj Dr. B Bhikshapathy Member

The President welcomed all present in the meeting and thanked them for their efforts to attend the virtual meeting. He requested the General Secretary to commence the proceedings.

Points of Discussion

Item No. I – OROP Case: The General Secretary informed that TSEWA has received a reply from the Min of Defence on 18 March 2020, to our letter dated 24 Nov 2020. The reply was a typical bureaucratic one which said that OMJC Report was submitted by Justice L Narasimha Reddy on 26 Oct 2016 and that it was referred to the committee for detailed examination. He requested the Core Committee to consider sending a letter to Hon’ble Justice Dr. Chandrachud of the Supreme Court to deliver the judgement in the OROP case filed by IESM at the earliest, with a copy to the three Service Chiefs, RM, FM, PM, and the President of India. He further informed that the case filed by IESM was listed on 24 Mar 2021 but no arguments were done due to paucity of time and other urgent cases. The next date of hearing is 07 Apr 2021.

Decision. It was decided that the matter be left with the President Legal Division to pursue the case.

Item No. II – Filing of Cases in AFT Mumbai: The General Secretary informed that the rates quoted by Shri YP Singh to take up TSEWA cases in Mumbai AFT are too high. Cmde KS Sandhu informed that he has explained to Advocate Shri YP Singh, about the details of fees being paid by TSEWA for AFT Cases filed in other courts. Brig SKS Rana, VSM, President, Legal Division interacted with him and found him to be quite knowledgeable.
Decision. It was decided that the President Legal Division pursue the matter with Shri YP Singh and finalise the rates and terms and conditions.

Item No. III – TSEWA Madhuri Sewa Fund: Brig SKS Rana, VSM has expressed his serious concern about the way TSEWA is working to utilize the Madhuri Sewa Fund to help civilian students instead of trying to help ESM Children. He has expressed that General Secretary should not have permitted misuse of the TSEWA platform by Col Nagesh Gupta for promoting the Madhuri Sewa Fund created in memory of his wife.

General Secretary informed that he is in no way involved in the Charity Activities performed by TSEWA Charity Division headed by Cmde Sudheer Parakala. Further, he explained how the clause of charity for Civilians was thrust by the IT Commissioner at the time of granting exemption under Section 12 A. However, he expressed his concern that students from only one College viz: Railway Degree College, Secunderabad were beneficiaries and other colleges were not considered.

Cmde Sudheer Parakala, Chairman of, Charity Division has explained that Col Nagesh Gupta is a 94-year-old veteran, staying in US, and has requested TSEWA to help him in finding suitable meritorious students at the earliest to utilize Madhuri Sewa Fund. He explained that a detailed mail was sent to TSEWA State Presidents to send the recommendations but in the absence of any recommendations, civilian children from Railway Degree College, Secunderabad were considered as recommended by Dr. Bhashyam, Principal who is related to Lt Col G Parvathesam. He reiterated that there was no favouritism and that the beneficiaries really deserved financial assistance. He also emphasized that all recommendations made by State Presidents should follow the checklist/Guidelines circulated a number of times before sending the recommendations since the cases are examined by IT Officials.

Lt Col G Parvathesam clarified further that the students identified are from four different colleges and not from a single college. Due to the prevailing pandemic conditions, we could not ascertain the economic condition of the students by physical verification at their residences. He assured the Core Committee that the students were from a very poor background and essentially needed urgent help to pay the college fees.

Cmde Kuldip Singh Sandhu, President, Mumbai Metro, TSEWA elucidated at length the method of charity and appreciated that Charity Div approved and helped a divorced daughter of a DAD employee whom he recommended. He further suggested TSEWA should be more flexible and respect the wishes of a donor who wants to help out somebody. As long as poor and meritorious children get financial assistance, it should not matter whether they are from school / college or different schools / colleges. That should be acceptable to all. The credit for such help goes to TSEWA and in the future, more and more donors will send their contributions to TSEWA. TSEWA he further added is respected by many veterans for the good work being done.

Brig CS Vidyasagar appreciated the efforts of the Charity Division of TSEWA for providing selfless services and in identifying and helping the poor students. He explained the need of considering the wishes of donors as long as it does not interfere with the functioning of TSEWA. He further added that all TSEWA executives are serving the organization devotedly and there is no scope of doubting their integrity and selfless services.

Item No. IV – Receipt of Donation by TSEWA: Maj Gen SN Mukherjee, President, TSEWA, West Bengal suggested that the donations from the donors should be received by TSEWA to extend the facility of Tax exemption to the donors. TSEWA should not ask the donors to deposit the donations directly into the beneficiary’s account.

Item No. V – Reimbursement of Hospital Charges by ECHS: Maj Gen SN Mukherjee has pointed out that the ESM is not able to get reimbursement of Hospital Charges in full when they are admitted to a non-empaneled Hospital. Col Srikantha Seshadri, a member of the Oversight Committee of ECHS has explained that the patient admitted in a Non- the empaneled hospital has to intimate the ECHS Polyclinic within 2 days from the date of admission and submit the bills within 90 days from the date of discharge. Patients are eligible for full reimbursement once the bill is sent for reimbursement through proper channel to MOD and approved by it. He added further that unfortunately the MOD has been found to be not so helpful to the ESM in this matter.

The President informed of the latest judgment of the Hon’ble Supreme Court in the case of possibly a member of CGHS who got admitted to a non-empanelled hospital. His bill for reimbursement was disallowed. He challenged the decision of CGHS authorities right up to the Hon’ble Supreme Court. The Hon’ble Supreme Court upheld the argument of the petitioner and directed CGHS to reimburse the expenditure incurred in the non-empanelled hospital. However, it is better to inform OiC ECHS Polyclinic within 48 hrs of admission in a non-empanelled hospital. The reimbursement is limited to CGHS rates. Maj Gen Shibnath Mukherjee informed that some of the ECHS members admitted in non-empanelled hospitals get only 60% of the expenditure incurred. The President cited the example of some of the empanelled hospitals in Hyderabad and Secunderabad when some of the ECHS members get admitted for certain medical procedures like heart valve replacement etc, the hospital informs the patient that the CGHS rate for that medical procedure is less than what the hospital charges and ask him to pay the balance. Though this is not ethical, the patient or his spouse has no alternative but to cough up the balance amount to get the medical treatment. These empanelled hospitals after accepting the rates of CGHS indulge in such practices.

Item No V- Financial Assistance: WO Thiruchelvam, President, TSEWA informed that a case he sent to help out a widow with three unmarried daughters was not actioned upon. Lt Col G Parvathesam, the Treasurer, informed that he himself went and met the old lady and her daughter in Secunderabad to check on the ground the economic condition of the family. They have some dispute on the ownership of an ancestral house. The case was considered by the Charity Division and a sum of Rs 25,000 was paid to her.

On this WO Thiruchelvam said that the case he sent 3 years back is for a widow in Tamilnadu and not in Secunderabad. On this, the President suggested to WO Thiruchelvam to remind the Charity Div. As far as his knowledge goes, Charity Div never turned down any proposal from any State Presidents of TSEWA who sent all documents required. It is very essential to check the genuineness of the case on the ground as the funds available are very limited. He gave an example of Smt Indira Arunachalam of Mumbai on the recommendation of Cmde Kripal Sandhu, President, TSEWA, Mumbai Metro got Rs 25,000 twice. She is the divorced daughter of Mr. Arunachalam who retired from PCDA (Navy) Mumbai. TSEWA helped those dependents of Def Accts Dept also when their own Department did not help the dependent of their own employees. He further cited the case of Reservist Mathew from Kerala who on the recommendation of Lt Gen Vinod Nayanar of Kannur was given Rs 25,000 for purchase of cow and a second-time similar amount was sent to him as a son of Reservist Mathew was found to be medically unwell.

Cmde Sudheer Parakala, Chairman of Charity Div added that in few cases documents are not received but only an email saying the case be considered and financial assistance be rendered. He further stated that since we got 12(A) and 80(G) all our financial assistance is scrutinized by the Income Tax department hence documents are necessary before financial assistance is rendered. He stated that it is not possible for Charity Div based in Hyderabad to go all over the country to check the authenticity of the case. Therefore the State Presidents have to take the initiative to check on the ground the genuineness of the case and send all the documents which have been sent to them time and again.

There being no further points, the meeting was closed at 12:20 PM. It was decided that the next Core Committee Meeting will be held at 1000 hrs on 10 Apr 2021.

Brig CS Vidyasagar (Retd)
President, TSEWA

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