One Rank One Pension (OROP) Policy

Q Why is it in News ?

A The Supreme Court has said that the Centre’s hyperbole on the One Rank One Pension (OROP) policy presented a much “rosier picture” than what is actually given to the pensioners of the armed forces.

Q What is OROP Policy?

A 

• OROP means the same pension, for the same rank, for the same length of service, irrespective of the date of retirement.
• The concept was provoked by the then decision by Indira Gandhi-led government, in 1973, two years after the historic victory in the 1971 Bangladesh war.

Q How did the issue escalate?

A 

• The Rank pay was a scheme implemented by the Rajiv Gandhi-led govt in 1986, in the wake of the 4th Central Pay Commission.
• It reduced the basic pay of seven armed officers’ ranks of 2nd Lieutenant, Lieutenant, Captain, Majors, Lt. Colonel, Colonels, Brigadiers, and their equivalent by fixed amounts designated as rank pay.

Q How was it reviewed?

A 

• In 2008, Manmohan Singh led Government in the wake of the Sixth Central Pay Commission (6CPC), which discarded the concept of rank-pay.
• Instead, it introduced Grade pay, and Pay bands, which instead of addressing the rank, pay, and pension asymmetries caused by ‘rank pay’ dispensation, reinforced existing asymmetries.

Q What are issues with this pension policy ?

A 

• The causes that inform the OROP protest movement are not pension alone, as armed forces veterans have often tried to make clear, and the parliamentary committee recorded.
• The issues, veterans emphasize, are of justice, equity, honor, and national security.
• The failure to address the issue of pay-pension equity, and the underlying issue of honor, is not only an important cause for the OROP protest movement but its escalation.

Q What is the present status ?

A 

• PM Modi-led government has accepted the OROP.
• It has already released Rs. 5500 crores to serve the purpose, but still, there are some grievances from the veterans’ side.
• It refined Pensions for all pensioners retiring in the same rank as the average of the minimum and maximum pensions in 2013.
• The veterans noted governments’ proposal as one rank many pensions since the review of 5 years would lead to differences in pension between senior and a junior.