Revision of OROP after 5 years aka OROP-2019 vs Notional Pay Based Pension

I have relied on the following documents before writing this post: -

(a) Relevant portions of Para 6 of the 142nd Report of the Rajya Sabha Committee on Petitions aka Koshyari Committee report re-produced below, specifically the submissions by representatives of the Army, Air Force and not relevant submissions of Navy on periodicity: 

"6.4 He (Army Representative) further submitted that there is administrative difficulty on the part of the Ministry that pensioners cannot be given increment every year. So, perpetually they will never be at par with current retirees. As a way out, he suggested fixing a period of five years or every Pay Commission to Pay Commission, for bringing all pensioners at par. He suggested a similar exercise for the family pensioners also.

6.5 The representative of the Air Force submitted that to bridge this gap the suggestion regarding fixation of pay in five-year period or Pay Commission to Pay Commission was a good one and informed the Committee that the long pending issue may be sorted out this way.
 

6.6 The representative of the Indian Navy apprised the Committee about the unique life and difficulties which were experienced by a man in uniform. He stated that the family as well as the men in uniform was living in such a difficult conditions and they had to sacrifice so much in their life that special recognition should be given to boost the morale of the Armed Forces. He also added that even after retirement, a man in uniform cannot pursue any other business and they have a very limited job opportunity after retirement.

(b) Para 3 of the MoD letter 12(1)/2014/D(Pen/Pol) - Part II on OROP dated 07.11.2015: -

  ...ii. Pension will be re-fixed for all pensioners on the basis of the average of minimum and maximum pension of personnel retired in 2013 in the same rank and same length of service.

iii. Pension for those drawing above the average will be protected.

 ....v. In future the pension would be re-fixed every 5 years.

(c) Tables of OROP vide PCDA (P) Circular No. 555 which is 50% of the average of the minimum and maximum reckonable (for pension) emoluments drawn by a similarly situated officer retiring in 2013. It must be borne in mind that this amount is not 50% of the minimum of, say, the Pay Band-4 of Rs 37400 and maximum of the same pay band Rs 67000 + Grade Pay as appropriate.

Illustratively, the OROP amount for same rank and same years of service on date of retirement would vary because 

(i) those promoted earlier to say Col would have earned more number of increments whilst 

(ii) those promoted later would have earned lesser number of increments, and 

(iii) the average would be somewhere in between, with

(iv) protection for those in (i) as by law, their pension cannot be reduced.

(d) Recommendations of the 7th CPC for more beneficial of (i) pension as drawn on 31.12.2015 multiplied by 2.57 as an interim measure, or (ii) 50% of the Notional Pay drawn on date of retirement as the final pension. Accordingly, tables were provided in PCDA (P) Circular No. 608 dated 17.10.2018.

2. Revision of Pensions: Pensions were revised w.e.f. 1.1.2016 as an interim measure at d(i) above and now the concerned PSA is in the process of issuing e-PPOs in compliance with d (ii) above.

3. CGDA has sought advice from MoD before actioning the clamour for revision of pension in Jul 2019 stating: -

(a) Revision of pension vide Para 1 (d) (i) above w.e.f. 1.1.2016 meets the criteria for enhancement of pension within the 5 year period, and is in consonance with the Army and Air Force reps submission that pension be revised every 5 years or from Pay Commission to Pay Commission

(b) PSAs' are actioning the GoI/MoD order dated 17.10.2018 for Notional Pay based pension vide issue of e-PPOs and that these take into consideration increments earned by those promoted to a certai rank earlier than others but all retire with the same number of years of service.

(c) What are the modalities for revision in Jul 2019 i.e. OROP 2014 was based on pension drawn by personnel retiring in a particular rank with same years of service now that pension of the average amount indicated in Circular 555 and also higher as protected by MoD letter of 07.11.2015 of has been revised w.e.f. 1.1.2016.

(d) ACAS (Accts) as Chairman PARC has stated that there are cases of personnel retired in 2015 and 2016 drawing lesser pension as compared to those drawing OROP w.e.f. July 2014,   

4. In my personal opinion OROP is RIP because of the Notional Pay based pension because personnel of the same batch/course are promoted to higher ranks at different time frames (eg. Army has 0 year for Combat Arms, +1year for Combat Support and +2 years for Services as per Command Exit Policy), thereby earning more increments which results in higher reckonable emoluments on date of retirement than those promoted later. 

For instance, in Cir 555, Table 1, if a Col's pension value of Rs 36130 is taken, the pay (multiplied by 2) would be Rs 72260 and pension as on 1.1.2016 as per Option (i) of 7th CPC would be Rs 92854.  

However, on page 196 of Cir 608, for Col drawing Rs 72260 (OROP Rs 36130), there is a pay range of Rs 70360 - 72450 (i.e. OROP of Rs 35180 to Rs 36225) for which the notional pay in 7th CPC is shown as Rs 186200; so pension as per Option (ii) in 7 CPC would be Rs 93100.

P.S: A fresh RTI has been filed on 28.8.2020 requesting for the latest file notings on OROP - 2.