Aerial View : August 2022

Revision of OROP and related aspects

The honourable Supreme Court has awarded the petitioners a revision of One Rank One Pension (OROP) with effect from July 2019. This is in consonance with the Cabinet decision of 2015 submitted to the Hon’ble Prime Minister for approval under Rule 12 of the Transaction of the Business Rules vide this Department’s OM No. 12 (1)/2014/D (Pen/Pol) (Part II) dated 5.9.2015 to the Cabinet Sectt with the following proposals:

1. The benefit will be given from 1.7.2014.

2. Pension will be re-fixed for all pensioners retiring in the same rank and with the same length of service as the average of minimum and maximum pension drawn by the retirees in the year 2013. Those drawing above the average will be protected.

3. The benefit would also be extended to family pensioners including war widows and disabled pensioners.

4. Personnel who voluntarily retired/retired will not be covered under the OROP scheme.

5. Arrears will be paid in four half-yearly instalments. Widows will be paid arrears in one instalment.

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

7. OROP is a complex issue. A thorough examination of interest to retirees of different periods and different ranks is needed. The inter-service matters of 3 Forces also require consideration. This is not an administrative matter alone. Therefore, it is proposed that a One Member Judicial Committee may be constituted, which will give its report in 6 months.

The Cabinet Sectt vide its ID No. 144/1/1/2015-Cab dated 7.11.2015 also communicated the approval of the Hon’ble PM to the said proposals as contained in Para 7 with the following modifications:

Personnel who opt to get discharged henceforth on their own request under Rule 13 (3) (1) (i) (b), 13 (3) 1 (iv) or Rule 16B of the Army Rules 1954 or equivalent Navy or Air Force Rules will not be entitled to the benefits of OROP. It will be effective prospectively.

The proposal is for constituting One Member Judicial Committee; instead the approval is for Judicial Committee.

This article focuses attention on three aspects

Has the formula for calculating Pension of Personnel Below Officers Rank been changed?

1. Has the approval of 1997 that pension for Personnel Below Officers rank (PBOR) to be determined as 50% of the highest across the three Services for a given rank, group and years of qualifying service been reversed as brought out in the Cabinet Secretary Committee Report of 2009 quoting the GoM of 2006 where the following recommendations were made by the Committee: -

"Personnel Below Officer Ranks

(i) The proposal of Ministry of defence to bring pre 10.10.1997 PBOR pensioners on par with post 10.10.1997 PBOR pensioners may be agreed to. Since this is a new concession aimed at improving the pension of PBORs, the benefit will be given prospectively and no arrears are to be given. The financial implications for the proposal would be Rs 470.66 crore per annum.

(ii) The proposal of the Ministry of Defence to reckon the enhanced rate of classification allowance w.e.f.1.1.2006 on notional basis for the purpose of calculation of pension (as in the case of reckoning MSP for determination of pension) may be agreed to. This recommendation would benefit around 88,000 PBORs who retired between 1.1.2006 and 31.8.2008. The average increase in pension of these PBORs is estimated to be Rs 60 p.m. in Basic Pension. The financial implications for this proposal will be Rs 7.73 crore per annum. This proposal emanates from Sixth CPC’s recommendations and may be implemented w.e.f 1.1.2006. Accordingly, arrears will be paid.

(iii) In order to reduce the gap between the pensions of pre and post 1.1.2006 PBOR pensioners, its is proposed to follow the principle of the Award of GOM of 2006 in the following manner: -

(a) To reckon the pension of all pre 1.1.2006 PBOR pensioners with reference to a notional maximum in the post 1.1.2006 revised pay structure corresponding to the maximum of pre-Sixth Pay Commission pay scales as per fitment table of each rank.

(b) Also to continue with enhanced weightage awarded by the GOM.

This dispensation, which will be applicable to service pension as in the case of GOM award of 2006, will result in average monthly increase in pension of pre 1.1.2006 PBORs in the range of Rs 800 to Rs 1400 for Group Y depending on the rank and years of service. This will benefit approximately 12 lakh pre-1.1.2006 PBOR pensioners. The financial implications on account of this proposal would be Rs 1636 crore per annum. Since this is a new concession aimed at improving the pension of PBORs, the benefit will be given prospectively and no arrears are to be given.

The answer is “Yes” on the basis of Serial No. 2 of the Cabinet’s approval. That effectively nullifies the submission of the Petitioner in its Review Petition which was dismissed after a hearing in chambers.

Will the Revision of OROP be beneficial?

2. Will the revision of OROP w.e.f 2019 be financially beneficial?

The answer is a mixed and is the apprehension expressed in the following words, from Ref No. C/7026/VII CPC/84/OROP dated 11 Mar 2019 from Tri Services Pay Staff (TRIPAS), Room No. 116, Kashmir House, on 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.”

This apprehension is more glaring in the case of PBOR than in the cases of Commissioned Officers as per the sample tables furnished by PCDA (P) to the MoD. Some of these tables are re-produced below: -

"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)

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

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 4^th CPC (w.e.f 1.1.1986)	1.1.86	689	1057
2	Revision in 5^th CPC	1.1.96	2104	3201
3	Revision 6^th 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 7^th CPC (Col 7 x 2.57)	01.01.2016	20067	28741
9	Pension as on 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 (4^th CPC)		Min Pay	Max Pay	Min Pay	Max Pay
4		Pay	3900	5100	4950	5100
5	Pension	4^th CPC	2208	2772	3075	3150
6	Pension under 5^th CPC under consolidation	w.e.f. 1.1.1996	5953 to 7286		7993 to 8105
7	Pension under modified parity 5^th CPC	w.e.f. 1.1.1996	7093		9550
	Range	01.01.96	7093 to 7286		9550 to 9550 (?)
8	Pension under 6^th 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 7^th 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

Fate of Report of One Man Judicial Committee

The Third Aspect that remains unfulfilled is the Report of the One Man Judicial Commission. Smt Nirmala Sitharaman, as Raksha Mantri constituted a 3 member Internal Committee (Shri Ravi Kant, then Joint Secretary Ex-Servicemen Welfare (later Secretary ESW and now superannuated ; Shri R K Karna Addl FADS and Joint Secretary, Def/Fin and Shri Kanwaldeep Singh, Jt CGDA). The Internal Committee was constituted in July 2017 and mandated to submit its report within 2 months. Not so surprisingly, a reply to a RTI application elicited a reply that no record exists of any dates of meetings of this Committee, even when the Central Information Commission intervened on 29 Apr 2021 in Second Appeal No. CIC/DEXSW/A/2019/127359-DODEF. It has now been intimated by Deptt of Ex-Servicemen Welfare that the Internal Committee has reportedly been re-constituted on 10.12.2021. Ironically, the new OM states that all other conditions remain unchanged, which means the IC should have submitted its report to Shri Rajnath Singh latest by March 2022!

[Please note: All information quoted above is based on replies provided by Chief Public Information Officers of Department of Ex-Servicemen Welfare of the Ministry of Defence, Govt of India).

Aerial View

Friday, 12 August 2022

SPARSH - Information to some Frequently Asked Questions

Wednesday, 10 August 2022

Revision of OROP and related aspects