What is One Rank-One Pension Scheme (OROP)?

What is One-Rank-One-Pension-SchemeWhat is One Rank-One Pension Scheme (OROP)?

In the last couple of days, there is one pension scheme which is in news is One-Rank-One Pension Scheme. This pension scheme was promised to ex-servicemen, but not yet implemented by Mr.Modi’s government during Lok Sabha Poll. Ex-Service men went hunger strike and planning for next steps. It caught so much attention ahead of Bihar elections. Govt. of India has indicated that One-Rank-One Pension Scheme would be launched by Mr.Narendra Modi any time. What is existing pension scheme for ex-servicemen? What is this One Rank-One Pension Scheme in India is all about? Why this pension scheme became hot news now?

Also Read: Is NPS better retirement option compared to EPF and PPF?

What is existing Pension Scheme for ex-servicemen?

Pension for ex-servicemen retired personnel is based on pay commission recommendations at the time where he or she retired. Pay commission bumps salaries of Government servants, but pension of ex-servicemen remains unchanged. When successive pay commissions enhances salaries and consequent pensions, these are affected only prospectively. Gap between past pensioners and young pensioners is widening year on year. Disparity has become uncomfortably stark after 6th pay commission for equal service. A sepoy retired in 1996 gets 82% lower pension than who retired after 2006. Similarly, a Major retired before 1996 gets 53% lower pension than counterpart retired after 2006.

 What is One Rank-One Pension Scheme?

One Rank-One Pension Scheme is for ex-service men where Mr.Modi’s government has promised to implement. It is a pension plan where uniform pension for defence personnel who retire in samerank, with same length of service, irrespective of the date of retirement would be paid. This also implies that bridging gap between the rate of pension for current pensioners and past pensioners and also future enhancements in the rate of pension automatically passed to past pensioners.

Who would get benefitted from One-Rank-One Pension Scheme?

Acceptance of One Rank One Pension Scheme by Govt. Of India is a victory of Defense personnel. Twenty two lakh ex-servicemen and over 6 lakes war widows would be the immediate beneficiaries of One-Rank-One Pension Scheme.

Why this pension scheme of ex-servicemen became hot news now?

Mr.Modi’s government has promised to implement this scheme during elections. Govt. of India has been fine-tuning this policy for some time.

In his recent 'Mann Ki Baat' radio talk, Modi had assured ex-servicemen that his government would soon resolve the OROP issue, but that has not happened, the former soldiers indicated.

You may also like: What are the benefits of New Pension Scheme and how to enroll to it?

Ex-servicemen went hunger strike in more than 20 cities across the country from Monday. Bihar assembly elections are scheduled in Sep / Oct-2015. Ex-servicemen have decided to hold huge rally in Bihar ahead of assembly elections to put more pressure on Govt. of India.

"We will hold our next Maha Sangram rally in Bihar. We will continue our protest till our legitimate and promised due of OROP is met," Col Anil Kaul (Retd), media advisor to Indian Ex-Servicemen Movement (IESM) said.

Sources from the Defence Ministry said this pension scheme file is with the Finance Ministry for a final budgetary approval.

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What is One Rank-One Pension Scheme


  • mangesh

    Ex service men definitely deserve OROP and it should be immediately implemented with a rider that those who are employed, especially Govt service, should either opt for defence pension or pension which they will get after completely retiring from the existing jobs.


    This is in reply to Mr Ajay Singh And Mr J Dominic. Defence Personnel offer their precious young age to the service
    of the nation and many of them on one pretext or the other have to leave after 12 to 15 years because service needs more energetic persons than they are .This is not the case with other services .All ex servicemen do not get re empl
    oyed (hardly 10%may get new jobs) in private or public sector. A person rendered 15 years of service and retired
    25 years back was given Rs 500 pension per month ( now after all modifications getting Rs 5000 or so ) But if his
    son retires now after rendering service of same number of years gets Rs 8000 . This is the disparity which has occurred in similar circumstances .This can be remedied only by OROP. You may appreciate that maximum
    number of JCOs and ORs are from village back ground and have no access to the canteen facility because the canteens are so far that it takes solid one day journey by walk and by bus/train etc . Seeing the pathetic conditions of the ex servicemen no body should have doubt that OROP is certainly one of the great measures which can improve the retired life of ex servicemen .

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