Faced with huge discontentment among military personnel over their long-standing pay and pension grievances, the government on Monday finally announced an annual Rs 2,300 crore additional pension package for ex-servicemen but stopped short of granting them full one-rank, one-pension (OROP).
For one, the Union Cabinet approved the “bridging of the gap” between the pensions of the JCOs/ORs who retired before January 1996 and those who superannuated after that date. Download Latest (dated 17 Jan 2013) Notification along with revised tables.
It was also decided to increase the “weightage of qualifying service” for pension by two years in the ranks of sepoys, naiks and havaldars for both pre and post January 1996 retirees.
Moreover, the pension of pre-January 1996 retired officers will also be stepped up “with reference to the minimum of fitment table for the ranks instead of the minimum of pay band” as it exists now.
For another, the government has approved enhancement in family pension, allowed dual family pension (where the pensioner was drawing pension for military service as well as civil employment) and family pension to mentally challenged children of armed forces personnel even after they get married.
This is the third time that the government has increased the pensions of ex-servicemen after the 6th Pay Commission. On implementation of the latest package, the pensions of officers will go up from 10% to 28% (Rs 565 to Rs 3,741 per month), while that of other ranks will increase by 9.7% to 13% (Rs 500 to Rs 800 per month).
But all this is modified parity and not the OROP. They said the package would merely “bridge the gap” between the pensioners who retired before January 1996 and those who superannuated after that date. OROP means ‘removal of the gap’ and not ‘bridging the gap’.
Stung by trenchant criticism of ex-servicemen who have called the Rs 2,300 crore pension package announced for them “a joke and mere eyewash”, the government said it was taking “steps in phases” towards meeting the eventual aim of one-rank, one-pension (OROP). “The journey towards the OROP goal is a continuous process. ”The OROP story has turned out to be a government joke. The government has just rectified anomalies created by bureaucrats in earlier pay commissions. They in any case would have been enforced through court orders.
Current State of Pension Package Approved: The cabinet has approved the pensionary part of the PM appointed Committee of Secretaries. What has been accepted and promulgated is enumerated below. An official press release can also be accessed by clicking here.
Service pension for various ranks shall now be the following:
For Other Ranks (OR): Add two years in the existing tables which can be accessed by clicking here. For example, to get to know the basic pension now admissible at 15 years, the amount reflected at 17 years may be seen.
For JCOs: No Change for pre 2006, only a minor change (between Rs 21 – Rs 52) with regard to those who retired before 1996.
For Officers: The admissible basic pension for pre-2006 retirees for full service (33 years) shall be as below:-
Lieut : Rs 13,500
Capt : Rs 15,350
Maj : Rs 18,205
Lt Col : Rs 26,265
Col : Rs 27,795
Brig : Rs 29,145
Maj Gen : Rs 30,350
Actual OROP or Full Pension with 15 years of service: OROP basically implies that uniform pension be paid to the personnel retiring in the same rank with the same length of service irrespective of their date of retirement and any further enhancement in pension rates be automatically be passed on to past pensioners. Since the date of retirement also determines the quantum of pension, with each Pay Commission every 10 years, the military veterans who retire early receive lesser pension compared to those who retired later with the same rank and service. If OROP were to be accepted in full, the recalculated basic pension for Chief Artificer with 2 years’ service (2 increments) will be as follows:
V PC Pay Scale: 6000 – 125 – 8250, Basic Pay = 6250
VI PC Pay Band 2: 9300 – 34800, increment @ 3% of basic
Corresponding position of basic drawn (i.e. 6250) in new scale after adding two increments is = Rs 9866
Basic Pension is half (50%) of Pay in PB + Grade Pay + MSP + X group Pay = 9866 + 4200 + 2000 + 1400 = 17466/2 = 8733
Basic pension = 8733
DA @ 72% = 6288
Total Pension = 8733+6288 = 15021 – Commutation.
But the defence ministry in the past has contended that full OROP is not financially, legally or administratively feasible. Full OROP implementation would mean an annual outgo of another Rs 1,200-1,300 crore, apart from payment of arrears in the range of Rs 4,000 crore.
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