The Central Government has accepted the principle of ‘one rank one pension’ for the defence forces and has allocated Rs. 500 crore for this purpose.

The Government has allocated Rs. 500 crores to the Defence Pension Account in the current financial year itself for implementation of One Rank One Pension scheme for the Defence Forces of the country. Making the announcement in Parliament today during his Interim Budget Speech, the Finance Minister Shri P. Chidamram said that this decision will be implemented prospectively from the financial year 2014-15. The Finance Minister said the Government had decided to walk the last mile and close the gap for all retirees in all ranks. He said the demand of the Defence Services for One Rank One Pension (OROP) had been there for a long time and had been an emotive issue.

Extract of Budget Speech :

One Rank One Pension

56. Hon’ble Members are aware of the long standing demand of the Defence Services for One Rank One Pension (OROP). It is an emotive issue, it has legal implications, and it has to be handled with great sensitivity. During the tenure of the UPA Governments, changes in the pension rules applicable to the defence services were notified on three occasions in 2006, 2010 and 2013.

As a result, the gap between pre-2006 retirees and post-2006 retirees has been closed in four ranks (subject to some anomalies that are being addressed): Havildar, Naib Subedar, Subedar and Subedar Major. There is still a small gap in the ranks of Sepoy and Naik and a gap in the ranks of Major and above. We need a young fighting force, we need young jawans, and we need young officers. We also need to take care of those who served in the defence forces only for a limited number of years. Government has therefore decided to walk the last mile and close the gap for all retirees in all ranks.

I am happy to announce that Government has accepted the principle of One Rank One Pension for the defence forces. This decision will be implemented prospectively from the financial year 2014-15. The requirement for 2014-15 is estimated at Rs.500 crore and, as an earnest of the UPA Government’s commitment, I propose to transfer a sum of `500 crore to the Defence Pension Account in the current financial year itself.

Source: PIB News

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Some model Calculations are done here

Being a commissioned officer of Regular Army, the revision is to be done as per Annexure –A (table No 1) annexed to PCDA (P) Circular No 500. Look in relevant column for the rank and relevant row for qualifying service.

The revised pension w.e.f. 24.9.2012 comes out to 27795/- P.M.

Case – I
Name of Pensioner     J.S. Bala
Name of Bank     SBI Chandigarh
Existing Pension    26050/- ( Circular No. 397 )
Rank    Colonel
Qualifying Service    26 Years 05 Months
Date of Commencement    07/06/1990

Being the family of a commissioned officer of Army, the revision is to be done as per annexure –A (table No -2) annexed to PCDA (P) Circular No 500. The revised pension w.e.f. 24.9.2012 comes out to 10923/- p.m.

Case – II
Name of Pensioner     Smt. Amarjit Kaur
Name of Bank    SBI Mohali
Existing Pension    8679/- ( Circular No. 397 )
Rank    Major
Date of Commencement    19/07/1990

Case – III
Name of Pensioner     Sukhvinder Singh
Name of Bank    SBI Ropar
Existing Pension    13500/- ( Circular No. 397 )
Rank    MWO-Hony.Flying Officer
Qualifying Service    34 Years
Date of Commencement    01/01/1985
Date of Birth     08/12/1929

The existing pension of the pensioner is not in order. Firstly, it needs to be raised to 13590/- from 13500/- P.M. wef 01/07/2009 as per PCDA (P) Circular No 482 dt 19/04/02012. Then look for revised pension for the Rank and QS in Table -20 (Air Force) annexed to Circular NO 501. The revised pension should be 15465/- wef 24/09/12.

Moreover, as the pensioner is more than 80 years old, he is also entitled to additional pension corresponding to revised pension.

Nodel Officer for Queries Complaints Related to CSC 2012

Shri S. K. Mahajan, SAO
O/o The PCDA(P)
Draupadi Ghat, Allahabad
211014
Contact No. : 0532- 2421877, 2421879
Ext : 307, 327
Email Address : cda-albd@nic.in,
orop.pcdapension@gmail.com

Source: www.pcdapension.nic.in
[http://pcdapension.nic.in/gen/mcalcu.htm]

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FAQ of CSC – 2012 : The department of Principal Controller of Defence Accounts (Pensions) has issued clarifications as Frequently Asked Questions on implementation of One Rank One Pension to pensioners / family pensioners…

FAQs on Implementation of OROP vide Govt. Order dated 17.01.2013

Q: 1 Are these orders applicable to those pensioners also whose date of commencement of pension is exactly 01.01.2006 ?
A: Yes, these orders are applicable to all the pensioners/family pensioners whose date of commencement of pension is on or before 01.01.2006.

Q: 2 The date of commencement of family pension in respect of a family pensioner is 01.04.2006 whose late husband had retired from the service on 31.08.1999. Will the family pension of the family be revised under these orders?
A: Yes, the family pension will be revised under these orders because the deceased soldier was a pre-2006 retiree.

Q: 3 It is being contended by some pensioners/their associations that the arrears on account of this revision should be paid w.e.f. 01.01.2006 as the orders are merely an amendment to GOI, MoD letter dated 11.11.2008. Please clarify?
A: As the provision of these orders are effective from 24the September 2012. Hence no arrears shall be allowed for the past period.

Q:4 Will the additional pension also be revised accordingly ?
A: The improved pension will be the basic pension from 24.09.2012 and hence additional pension payable will also be revised accordingly by the PDA.

Q:5 The basic pension of a pre-2006 pensioner (Rank – Havildar , Group ‘D’) of Army having total qualifying service of 15 years is slated to be increased from 3500/- p.m. to 5301/- P.M. Is such a high increase in Basic Pension is in order?
A: The increase in BP from 3500/- to 5301/- P.M for the pensioner with particulars as mentioned above is in order. It is evident from the existing basic pension of 3500/-PM and the particulars given above that the PDA has not revised pension of the individual correctly w.e.f. 01.07.2009. The correct entitlement of the individual is as under:

Basic Pension w.e.f. :

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