Saturday, 17 January 2015

What is the confusion in Modalities for OROP?



Political language is designed to make lies sound truthful, murder respectable.
- George Orwell

A person has two reasons for doing anything: a good reason and a real reason.
-J. P. Morgan


Where is the confusion in working out modalities? May be the Hon'ble RM and the Hon'ble MoS for I & B have not been privy to the Services HQ DGL (worked out based on 5 years data provided by AFCAO).

Here it is quoted verbatim 

 "Modalities of OROP

5.         Till now, Qualifying Service (QS) was rounded off to nearest six months.  QS was reckoned for calculation of pensions and was linked to 33 years of service for full pension. In the revised pay structure, annual increment is admissible to all personnel on 01 July of each year and linkage of 33 years for full pension has also been done away with.   Therefore, there is no need now to have QS for six monthly periods.  Instead, it will be calculated by rounding off the length of service to the nearest completed year for each pensioner.  However, the minimum actual service required for eligibility of pension will remain unchanged.

6.         The best pay scale of the group for each rank across the three services was accepted for the purpose of revision of pensions in respect of pre 2006 pensioners.  It was determined based on the notional maximum for the ranks across the three Services.  In case of officers the pension was fixed with respect to the minimum of pay in the fitment table as given in SAI/SNI/SAFI 2/S/2008.  The modified parity in pension based on the best pay scale across the services was promulgated vide Govt of India, Ministry of Defence, letter No 1(13)/2012/D (Pen/Policy) dated 17.01.2013.

7.         In view of the above, notional pension based on the highest pay, as on 01 July, actually drawn by each rank with reference to the length of QS is extended to all past pensioners.  The annual increments are now admissible only on 01 July each year.  Therefore, the highest pay for the rank and length of service drawn on 01 July, after taking into account the annual increment admissible on that day, will be reckoned for notional pension under OROP.

8.         The definition of OROP does not differentiate between different pay groups/services for the purpose of OROP.  Therefore, Reckonable Emoluments based on highest pay drawn by each rank with reference to years of Qualifying Service, irrespective of pay group, will be taken into account across three services from 01.07.2013 to 31.03.2014. 

9.         The OROP will be implemented in the following manner: -

(a)       In order to implement OROP, the initial upgradation of pension will be made with effect from 01 Apr 2014 and thereafter on 01 July every year starting 01 July 2014 (after taking into account the annual increment).  This will ensure automatic enhancement of rates of pension for past pensions based on the future enhancements in pensions.

(b)       The linkage of full pension with 33 years qualifying service is removed for all past pensioners like in the case of current pensioners.

(c)        For Hav & below and their equivalents, the ceiling of 32 years of qualifying service is removed.

(d)       In no case pension will be reduced due to implementation of OROP.  In case the pension already admissible for the rank and QS is higher than the revised pension under OROP based on notional pension, the higher rates of pension will be admissible to the pensioner.
           
(e)       Where the revised pension for junior rank is higher than senior rank for same qualifying service, pension of senior rank will be stepped up to the level of the pension for junior rank.

(f)         Where the revised pension of a rank at any length of service is lower than the pension of that rank for lower length of service, the pension of higher length of service will to be stepped up to the level of the lower length of service for that rank.

(g)       When the revised pension of an individual at any length of service is lower than the revised pension of another individual who was drawing lower pension in the pre OROP stage, then the former pension to be stepped up to the latter. 

(h)        In order to ensure that officers of the rank of Major General, Lieutenant General (HAG), Lieutenant General (HAG+), Lieutenant General (NFS), Army Commander, COAS and their equivalents always draw higher pension than an officer  ranked junior to them, the benefit of MSP will be granted notionally to such senior officers in order to determine their pensions under OROP.

(j)         All Honorary Nb Sub, MACP, Nb Sub and equivalents will be granted the pension of Nb Sub. Similarly any change/improvement in Hony Lt/Capt & equivalent shall be applicable to regular commissioned officers in the ranks of Lt and Capt and equivalent ranks, if it is more beneficial to them than hitherto.

(k)        In case live data is not available for any rank and length of service, the corresponding pension for the next higher rank with same length of service to be taken reducing the pension by half the amount of difference in Grade Pays of the two ranks.

(l)     The length of existing pension tables will be extended upto the maximum possible service in each rank.

(m)      The condition for counting two third of the service in the ranks for pre 1986 retirees officers and half of service for pre 1967 retirees is hereby removed in order to pay all retirees with the same criteria.

(n)        The pension of current pensioners for all time bound ranks (i.e. up to the rank of Col and equivalent) will be extended to past pensioners with the same length of commissioned service applicable to each rank, if the past pensioners had retired before 16 Dec 2004 before the time period for promotions was reduced. For this purpose the years of service will only be relevant and the table for the higher rank shall be taken into consideration to determine the pension of such retirees. In all cases of future changes in the time period for any time bound rank/pay scale, the OROP pension shall include this benefit for all past pensioners only if they become eligible for promotion had they still been in service.

10.       Since OROP extends the pension of current pensioners to all past pensioners, any changes in policy regarding pay or promotion which affect the pay/pension of future pensioners, shall also be passed on to the past pensioners from the same date."

Unquote

5 comments:

  1. Sir, "(n) The pension of current pensioners for all time bound ranks (i.e. up to the rank of Col and equivalent) will be extended to past pensioners with the same length of commissioned service applicable to each rank, if the past pensioners had retired before 16 Dec 2004 before the time period for promotions was reduced. For this purpose the years of service will only be relevant and the table for the higher rank shall be taken into consideration to determine the pension of such retirees".

    If such a "happy" resolution of the problem does ever take place, at least in terms of OROP, a long standing anomaly, resulting from the manner of implementation of phase I recommendations of AV Singh Committee as well as the 70s cadre review, would stand removed for Officer retirees.

    But, in fact, this manner of pension parity needed to be put in place from 01 Jan 2006, if not right from 31 Dec 2004, for the period that will not be 'governed' by OROP. If in the non-OROP period of 01 Jan 2006 to, hopefully, 31 Mar 2014, the minimum of pay in pay-band is to remain the criterion for fixation of pensions, then the 26 years rule for pensions of Lt Cols, Select and Time Scale, to be treated at par with pensions of Col(TS), needs to be implemented, albeit without OROP being applied for period ending 31 Mar 2014.

    As the litigation for "Minimum Guaranteed Pension" is still awaiting a hearing, it is not clear whether RDOA have considered including this aspect in their case for rationalisation as well.

    I had put forward a table, strictly in non-OROP terms, based on figures for minimum in pay-band, in that blog post.

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  2. Just curious.

    As Lt Col Rathore, is a MP and is entitled to a MP's pension as well as Def Officers pension - will he draw both? And will that be more than the OROP for his years of service in the rank, or total years of service?

    Just curious!

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  3. See brother we have already calculated and kept. Do you think that Babujis have not done this? Their intention is not to implement that. But we have waited quite long time. We cannot simply leave this and keep quite hereafter. Otherwise let us find some other way to earn more than this.Since we are trained in all respects which will take hardly a minute to switch over. jai hind.

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  4. There is no confusion at all, they all from Babu to politician, willfully denying/dragging this rightful demand, which is accepted and approved twice by highest authority. It is disgusting, and shameful on part of.....

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  5. Sir, you have rightly conveyed the concern. The soldiers are trained in all respect and I too believe that can perform in any circumstances, but feel very bad when I see a Jco to stand for group D open market recruitment to make the ends. It may become a big problem to leave well trained force to suffer, whereas their experience can be utilised in better ways and hope that our policy makers needs to understand the point. They can't keep on ignoring the fact. Jai Hind.

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