Implementation of One Rank One Pension

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its ex-post facto approval for implementation of One Rank One Pension (OROP). The details are as follows:

1. The benefit will be given with effect from 1st July, 2014.

2. Pension will be re-fixed for pre 1.7.2014 pensioners retiring in the same rank and with the same length of service as the average of minimum and maximum pension drawn by the retirees in the year 2013. Those drawing pensions above the average will be protected.

3. The benefit would also be extended to family pensioners including war widows and disabled pensioners.

4. Personnel who opt to get discharged henceforth on their own request under Rule 13(3) 1(i)(b), 13(3) 1(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. It will be effective prospectively.

5. 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.

6. In future, the pension would be re-fixed every 5 year.

7. Constitution of Judicial Committee headed by Justice L. Narasimha Reddy, Retd. Chief Justice of Patna High Court on 14.12.2015 which will give its report in six months on the references made by the Government of India.

The implementation of OROP will result in enhanced pension for the pensioners/family pensioners of Defence Forces. The setting up of the Judicial Committee headed by Justice L. Narasimha Reddy will help in the removal of anomalies that may arise in the implementation of OROP order dated 7.11.2015.

Financial implications on account of grant of OROP including Pre-Matured Retirees (PMR) cases would be Rs. 10925.11 crore for payment of arrears and annual financial implication would be Rs. 7488.7 crore. Till 31st March, 2016, 15.91 lakh pensioners have been given the first instalment of OROP, which amounts to Rs. 2,861 crore. Information is being gathered for processing on priority basis, the cases of 1.15 lakh pensioners after filling in the gaps of information such as the length of service being assessed, etc.

Source: PIB

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The Minister of State for Finance, Jayant Sinha, has said that implementing the One Rank One Pension scheme for military pensioners and the recommendations of the 7th Pay Commission will not bankrupt the nation.

The Union Minister of Finance Arun Jaitley had a meeting with the financial experts in New Delhi yesterday. Following the meeting, Mr. Jayant Sinha spoke to the mediapersons. He said –

“We are managing the country’s finances very well. Experts have appreciated our efforts. The government’s financial condition is very stable. Therefore, there wouldn’t be a cash deficit even if the government implements the recommendations of the 7th Pay Commission. Similarly, the government can very well manage the additional cash burden incurred by implementing the One Rank One Pension scheme for the military.

Implementing the OROP will result in additional expenses of Rs.8000-10,000 crores this year. The 7th Pay Commission’s recommendations will be submitted to the government in December this year. Giving increments to the Central Government employees will result in additional expenses to the Government. He confirmed that the government can comfortably manage these expenses.
A lot of important issues, including financial burdens, increasing employment opportunities and agricultural outputs, were discussed at the pre-Budget consultation. Some of the leading names in financial management in India had participated in the meeting. It is normal for governments to hold such meetings prior to the annual budget, but it is unusual that such a meeting was held with six months to go before the next Budget is due. Sinha said that the valuable suggestions that were given by the experts have made the meeting worthwhile, and have convinced them that holding such meetings in advance was a good move.

A number of useful suggestions were given on the schemes that have to be implemented in the current and the next Financial Years. The meeting also paved way for the joint implementation of many a schemes, he said.

Discussions on agriculture and the issues related to it took up most of the time at the meeting. “We discussed a number of suggestions on how to improve our agricultural production. We talked about financial deficits and ways to reduce expenses and austerity measures. We had also discussed public investment options and the importance of making them profitable.

“The other most important topic that we had talked about was the Ministry of Finance. We had discussed the need for increasing the loans offered to farmers, and to the micro-, small- and medium-sized enterprises, and the necessity for increasing job opportunity for youngsters. We had also discussed the steps that need to be taken to boost the large-scale and production-based industries, which are among the biggest sectors that offer employment.”

Source: centralgovernmentemployeesnews.in

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