FAQs on One Rank-One Pension

Defence Minister Manohar Parrikar said on Thursday that the government has completed processes and will implement “one rank, one pension” for the armed forces soon.

“My ministry has completed all formalities and OROP will be implemented,” Parrikar said at a function boycotted by two war veterans who were to be felicitated.

Here are some frequently asked questions about the scheme.

What is One Rank, One Pension?

The ‘one rank, one pension’ rule means that retired soldiers of the same rank and length of service will receive the same pension, regardless of when they retire.

As of now, the date of retirement determines the amount of pension. With each Pay Commission coming up with its recommendations every 10 years, the military veterans who retire early, receive less pension as compared to those who retired later with the same rank and length of service

Under OROP, a sepoy who retired in 1995, for instance, would get the same amount of pension as the one who retired in 1996.

Who will benefit from OROP?

Ex-servicemen drawing pensions will benefit from the OROP scheme, especially those who retired before 2006. Why? Because at present, pensioners who retired before 2006 draw less pension than their counterparts and even their juniors. The scheme will benefit all three services — air force, navy and army.

How much will the OROP scheme cost the government?

The United Progressive Alliance government in their interim budget had announced an amount of Rs 500 crore for the scheme. However, NDA’s Finance Minister Arun Jaitley in his Budget announcement allotted Rs 1,000 crore for the scheme.

Source – Rediff

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