More information on OROP equalisation - Reply to RTI

RTI No. DEXSW/2019/50600 & Reply thereto: OROP Equalisation

Online RTI Request Form Details

RTI Request Details:-

RTI Request Registration number DEXSW/R/2019/50600

Public Authority Department of Ex-Servicemen Welfare

Personal Details of RTI Applicant:-

Name Air Mshl S Y Savur PVSM AVSM retd

Gender Male

Address Deleted

Request Details :-

Description of Information Sought

It is understood that TRIPAS has taken up with DESW, MoD for 5 yearly equalisation of OROP vide C/7026/VII CPC/84/OROP dated 11.03.2019.

2. It is further understood that DESW, MoD has requested O/o CGDA to prepare for the equalisation vide ID No. 1(1)/2019/D (Pen/Pol) dated 28.03.2019.

3. It is also understood that JS (ESW) in DESW, MoD has received a reply from the O/o CGDA (Jt CGDA Pension) vide a UO dated 05.04.2019 requesting clarifications and methodology etc.

4. It is requested that CPIO may provide photocopies of the TRIPAS letter dated 11.03.2019 quoted in Para 1 above, of the MoD ID dated 28.03.2019 quoted in Para 2 above and of the CGDA UO dated 05.04.2019 quoted in Para 3 above.

5. Information may be provided online if convenient to CPIO or if CPIO desires to provide hard copies, he may enable online payment of additional fees for photocopying @ Rs 2 per page as directed in RTI Act 2005.

Reply received online on 16 Jul 2019

 Speed Post/RTI Matter

F No. 237/RTI/2014/D(P/P) – Part II

Ministry of Defence

Department of Ex-Servicemen Welfare

D (Pen/Policy)

New Delhi, Dated 15^th July 2019

To

            Shri S Y Savur

Subject: Seeking information under RTI Act, 2005 - reg

Sir,

            Please refer to your online RTI application bearing Registration No. DEXSW/R/2019/50600 dated 13.06.2018 received in this office on the subject mentioned above.

2.         In this connection, please find enclosed copies of following letters:

            TRIPAS letter No. C/7026/VII CPC/84/OROP dated 11.03.2019 (01 page)

            MOD ID No. 1(1)/2019/D(Pen/Pol) dated 28.03.2019 (01 page)

            CGDS UO No. 5699/AT-P/OROP-2/Vol-I dated 05.04.2019 (06 pages)

3.         Sh. A. K. Agarwal, Dy Secretary, Room No. 226, B Wing, Sena Bhawan, New Delhi is the first appellate authority. 

Encl: as above

Sd/--------------

15/07/2019

(Ashok Kumar)

CPIO & Under Secretary (Pen/Pol)

Telephone: 23797491

C/7026/VII CPC/84/OROP                                                                         11 Mar 2019

Tri Services Pay Staff (TRIPAS)]

Room No. 116, Kashmir House

OROP REVISION 2019

1.         Reference is made to MoD Dept of DESW letter No. 12(1)/2014/D(Pen/Pol)-Part II dated 07 Nov 2015 (Copy enclosed).

2.         The salient features of OROP were given in the above mentioned Govt letter. As per para 3(v) of the MoD letter under mention, the first revision of OROP is due on 01 Jul 2019.

3.         It is pertinent to mention that basis of calculation of pension as per OROP differs from the basis of calculation for pension in 7^th CPC. This may have resulted in lower fixation of pension for post 2016 retirees than the one who retired prior to 1.1.2016. It is requested that during the revision of OROP in Jul 2019, pension protection for post 2016 retirees be taken care of.

4.         In view of the above and to avoid similar situation in future, it is requested that a timeline may be promulgated to review the OROP. The data considered for formulating the revised OROP 2019 for pensioners be shared with Service HQs before finalising the pension tables. 

5.         It is also submitted that recommendations of One Man Judicial Committee be declassified at the earliest as it may have an effect on the revision of OROP.

Sd/----------------

(P S Babu)

AVM

ACAS (Accts & AV)

& Chairman PARC

Enclosure: As stated

JS (ESW) MoD

Copy to: -

Defence Secretary                            ]

Secretary, ESW                                  ] For information please

FA (DS), MoD                                   ]

MoD (Pen/Pol)                                 ]

Ministry of Defence

Department of Ex-Servicemen Welfare

D(Pen/Policy)

Room No. 222, B Wing

Sena Bhawan, New Delhi – 11

Subject: Re-fixation of pension under OROP - reg

           

            Please find enclosed a copy of TRIPAS letter Bo. C/7026/VII CPC/84/OROP dated 11^th March 2019 of TRIPAS (Tri Services Pay Staff) regarding re-fixation of pension under OROP. It has been mentioned that as per para 3 (v) of Govt letter No. 12(1)/2014/D (Pen/Pol) – Part II dated 7^th November 2013 (OROP order), the pension would be re-fixed every 5 years i.e. the first revision is due on 1^st July 2019 as the benefit of OROP was given w.e.f. 1.7.2014.  

2.         Regarding implementation of 7^th CPC pension was revised in following two methods:

(i)         Notional pay fixation method: revised pension/family pension of all  Armed Forces personnel who retired/died prior to 1.1.2016 be revised by notionally fixing their pay in the pay matrix recommended by the 7^th CPC in the level corresponding to the pay in the pay scale/pay band and grade pay at which they retired/died. This has been done by notional pay fixation under each intervening Pay Commission based on the formula for revision of pay.

MoD has issued Concordance Table to implement this method of pension revision w.e.f. 1.1.2016.

(ii)        By multiplying Basic Pension as on 31.12.2015 into 2.57: For existing pensioners, who have retired/died before 1.1.2016, the revised pension/family pension with effect from 1.1.2016 be determined by multiplying the Basic Pension (before commutation)/Basic Family Pension (exclusive of Dearness Relief) as had been drawn as on 31.12.2015 by 2.57 to arrive at revised pension under 7^th CPC.    

                                    (iii)       Pensioners are entitled to the higher of the two above.

3.         CGDA Hqrs is requested to look into the matter and start preparatory work for re-fixation of pension under OROP within stipulated time, as per para 3 (v) of Govt letter No. 12 (1)/2014/D(Pen/Pol)-Part II dated 7^th November 2015 (copy enclosed). 

Sd/--------------

28.3.2019

(Ashok Kumar)

Under Secretary to the Govt of India

Telefax: 23012973

e-mail: us-pen-pol@desw.gov.in

Jt CGDA (Pension), O/o CGDA, Ulan Batar Road, Palam, Delhi Cantt 

MoD ID No. 1(1)/2019/D(Pen/Pol) dated 28.3.2019.

Office of the CGDA, Ulan Batar Road, Palam, Delhu Cantt-10

Sub: Re-fixation of pension under OROP - reg

            Ministry may kindly refer to their ID No. 1(1)/2019/D(Pen/Pol) dated 28.03.2019 forwarding a copy of TRIPAS letter No. C/7026/VII CPC/84/OROP dated 11.03.2019. However, copy of ibid TRIPAS letter has not been found enclosed. It is requested to kindly forward the same.

2.         Further, vide Para 3 of ibid ID, Ministry has requested to start preparatory work for re-fixation of pension under OROP as per para 3(v) of MoD letter dated 7.11.2015. In order to begin work, Ministry is requested to clarify the following:

(a)        With reference to Para 3 of GoI, MoD letter dt. 7.11.2015, it may be confirmed whether the same methodology is to be employed for calculating OROP rates viz. average of minimum and maximum pension. If so, the year from which data of current retirees is to be used may be specified. 

(b)        OROP was implemented w.e.f. 01.07.2014. Similarly date of effect of this next round of revisions may kindly be intimated.

(c)        It may be recalled that several issues and anomalies regarding OROP implementation has been raised earlier. Government has referred three (03) major categories of these issues to a One Man Judicial Commission appointed vide No. 12 (1)/2014-D (Pen/Pol) dated 14.12.2015. Various ESM associations had also made reference to this OMJC. The report of OMJC is pending with the Ministry. It may be clarified whether any of the recommendations of the OMJC are to be factored into the new calculations.   

3.         It may be mentioned here that there have been several developments since the issue of OROP orders in 2015-16. The most significant is the implementation of the recommendations of the VIIth CPC. The impact of these recommendations with respect to revision of defence pensions was not factored into the OROP orders. As per the VIIth CPC orders, pension revision is to be undertaken by two methods and pension disbursed by the more beneficial of the two. The first method requires multiplication of pension as on 31.12.2015 by a factor of 2.57. This has been done by PDAs. The other method requires notional revision of pay across subsequent Pay Commission scales to arrive at a notional pay (and pension) under VIIth CPC scales. This revision has raised the following issues:  

(a)        The notional pay formula brings all past pensioners to current rates, almost as if they were serving under VIIth CPC. This is also the formula used in various Court judgments seeking to equate past pensioners with current retirees. For example, Hon’ble Supreme Court judgment in SPS Vains vs. UoI (2008) case and in DS Nakara case. As such it is a matter for consideration as to whether any logic exists to initiate the process of OROP revision once the pension of past and current pensioners has been equated w.e.f.1.1.2016.  

(b)        The notional pay based revision in respect of defence pensioners has just commenced. The final pension of past pensioners (as on 1.1.2016) is not available until this is completed. Therefore, data for comparing past pensioner with current pensioners is incomplete to that extent.

(c)        Ministry may also kindly refer to WP No. 419/2016 – Indian Ex-Servicemen Movement and others vs. UoI. While preparing to brief Ld ASG, Ministry had requested to compare pension under various Pay Commissions. The result was forwarded to Ministry vide this HQrs UO dated 23.08.2018 (copy enclosed). The sample study indicated that application of multiplication factor to OROP pension has created an anomaly whereby past pensioners are drawing higher pension that those who have retired between 1.7.2014 and 31.12.2015 and post 1.1.2016 retirees. It may be recalled that Service HQrs have also forwarded proposals citing this anomaly and seeking protection of pension of current retirees with respect to OROP pension. If this anomaly turns out to be widespread, the logic of revising pension of past retirees to bring them to the level of current pensioners would not subsist.  

4.         Ministry is requested to give directions of how to proceed further in view of the points mentioned above.

Sd/---------------------

(Kanwaldeep Singh)

Jt. CGDA (Pension)

Shri Pudi Hari Prasad, Joint Sec (ESW)

MoD, Deptt of ESW

South Block, New Delhi

5699/AT-P/OROP-2/Vol-I dated 05.04.2019

Copy to

1.         Shri RK Karna, IDAS, MoD (Fin)       For information w.r.t. above

            South Block, New Delhi        

2.         PCDA (P) Allahabad                           For information with request to compile data in r/o para

3 (c) above.

Sd/---------------------

(Kanwaldeep Singh)

Jt. CGDA (Pension)

Office of the CGDA, Ulan Batar Road, Palam Delhi Cantt - 10

Sub:     Writ Petition (Civil) No. 419/2016 – Indian Ex-Servicemen Movement & Others Vs Union of India & others

            Ref:      MoD D (ESW) letter No. 4 (5)/2016-D (Pen/Legal) dated 30.07.2018

*          *          *          *          *

            Ministry may please refer to their above mentioned letter, calling for a comparative table indicating amounts of pension drawn under various Pay Commissions with reference to OROP.

2.         In this regard it is submitted that calculation has been made, as a representative sample, for two ranks of JCOs/ORs (Havildar and Naib Subedar) and two ranks of Commissioned Officers (Lt Col & Brigadier). The calculation sheet is attached as Annexure A & B for JCOs & Ors and Commissioned Officers respectively. 

3.         It is submitted that since 6^th CPC, two revisions have been made for pre-2006 PBOR pensioners i.e. w.e.f. 01.09.2009 (CSC-2009) and 24.09.2012 (CSC-2012) with the intention to bring them at par with current pensioners. In addition, OROP benefits were given w.e.f. 01.07.2014. On analysing the data of post OROP pensioners, it is seen that: -

(a) Out of 668 retirees in the period 01.07.2014 to 31.12.2015 in the rank of Havildar, more than 20% of post OROP retirees are drawing pension less than OROP rate i.e. OROP pension is higher than pension of future retirees.

(b)        The difference is more prominent in the rank of Nb. Sub where more than 95% of post-OROP retired Nb. Subedars are drawing less pension than OROP rates.

(c)        More than 95% of post 01.01.2016 retirees in the rank of Nb. Sub draw less pension than the revised pension amount of OROP beneficiaries.

4.         This indicated that a significant proportion of post OROP retirees are getting less pension than past pensioners whose pension has been ameliorated as per OROP.

Sd/------------

Accounts Officer (AT-Pen)

Shri R K Arora, Under Secretary (P/L-II)

MoD, Deptt of ESW

Room No. 224, B-Wing, Sena Bhawan, New Delhi    

UO No. 5699/AT-P/OROP/Vol-XiX dated 23.08.2018

Copy to           

1.         Shri Manoj Sinha, Under Secretary

            MoD, Deptt of ESW                                       For information w.r.t. above

            222, B Wing, New Bhawan

            New Delhi

2.         PCDA (P) Allahabad                                       For Information w.r.t. above

Annexure A

                        REPRESENTATIVE SAMPLE CALCULATION FOR JCOs/ORs

Sl No.	Rank	Date	Havildar	Nb. Subedar
	Group		Y	Y
	QS (Term of engagement)		24	26
	1	2	3	4
1	Pension in 4th CPC (w.e.f 1.1.1986)	1.1.86	689	1057
2	Revision in 5th CPC	1.1.96	2104	3201
3	Revision 6th CPC	1.1.2006	5085	7486
4	Modified Pay Parity	1.1.2006	5820	8330
5	Revision as per CSC - 2009	1.07.2009	6465	10029
6	Revision as per CSC – 2012	24.09.2012	7375	10029
7	Revision as per OROP	1.07.2014	7808	10405
8	Revision in 7th CPC (Col 7 x 2.57)	01.01.2016	20067	28741
9	Pension as 1.1.2016 if OROP not given (Col 6 x 2.57)	01.01.2016	18954	25775

ANALYSIS OF POST 01.07.2014 RETIREES

Time period	Havildar			Naib Subedar*
	Total No. of pensioners with QS 24 Yrs in Gp Y	Pensioners drawing less than OROP rate	% of pensioners drawing less than OROP	Total No. of pensioners with QS 26 Yrs in Gp Y	Pensioners drawing less than OROP rate	% of pensioners drawing less than OROP
1.07.2014 to 31.12.2015	668	134	20.06	463	450	97.19
01.01.2016 onwards	4091	Nil		432	418	96.75
* Majority of Nb Sub who have retired after 2014 are currently drawing less pension than OROP

Annexure B

REPRESENTATIVE SAMPLE CALCULATION FOR COMMISSIONED OFFICERS

1			Lt Colonel		Brigadier
2	Standard Qualifying Sevice		24		28
3	Pay (4th CPC)		Min Pay	Max Pay	Min Pay	Max Pay
4		Pay	3900	5100	4950	5100
5	Pension	4th CPC	2208	2772	3075	3150
6	Pension under 5th CPC under consolidation	w.e.f. 1.1.1996	5953 to 7286		7993 to 8105
7	Pension under modified parity 5th CPC	w.e.f. 1.1.1996	7093		9550
	Range	01.01.96	7093 to 7286		9550 to 9550 (?)
8	Pension under 6th CPC by multiplication method	w.e.f. 1.1.2006	16032 to 16487		21583
9	Pension under Modified Parity	w.e.f. 1.1.2006	26265		29145
10	Revision under OROP	w.e.f.1.7.2014	32428		36420
11	Revision in 7th CPC (Col 10 x 2.57	w.e.f 1.1.2016	83340		93600
12	Revision if he had not been granted OROP (Col 9 x 2.57)	w.e.f. 1.1.2016	67502		74903

            ANALYSIS OF NON-OROP BENEFICIARIES

Time period	Lt Col *			Brigadier
	Total No. of pensioners with QS 24 years	Pensioners drawing less than OROP rate	% of pensioners drawing less than OROP	Total No. of pensioners with QS 28 years	Pensioners drawing less than OROP rate	% of pensioners drawing less than OROP
1.07.2014 to 31.12.2015	246	232	94.3	97	8	8.25
01.01.2016 onwards	514	401	78.02	239	1	0.42
* Majority of Lt Col who have retired after 2014 are currently drawing less pension than OROP

 *             *             *             *             *