Why in news? Union Cabinet approves pending One-Rank-One-Pension revision for veterans

Highlights

• Arrears will be paid from July 1, 2019 to June 30, 2022 approximately Rs23,638 crore as per the applicable dearness relief
• Pension of the past pensioners would be re-fixed on the basis of average of minimum and maximum pension of defence forces retirees of calendar year 2018 in the same rank with the same length of service
• Armed forces personnel with a retirement date up to June 30, 2019, excluding premature retirees with effect from July 1, 2014, will be covered under this revision, the Ministry
• Pension for those drawing above the average shall be protected and the benefit would also be extended to family pensioners, including war widows and disabled pensioners.
• All the family pensioners, including those in receipt of special, liberalised family pensions, and gallantry award winners, shall be paid arrears in one instalment

What is One Rank, One Pension?

• It implies a uniform pension for defence personnel retiring in the same rank with the same length of service, regardless of their date of retirement.
• OROP bridges the gap between the rates of pension of current and past pensioners at periodic intervals.

How it is implemented ?

• The armed forces personnel who retired by June 30, 2014, are covered under the scheme.
• From Retrospective effect from July 1st, 2014 with 2013 as the base year.
• The pension of past pensioners was re-fixed on the basis of the pension of retirees of calendar year 2013 and the benefit was effective July 201

What was the cause of Concern?

• Computation was linked to the pay drawn by the personnel in a particular pay scale at the time of his/her retirement.
• Pay scales are revised to the higher side generally on the recommendation of Pay Commissions.
• Personnel retiring after the revision of the pay scales got more pension than those who had already retired. Hence, the gap remained in the pension of the past and present retirees.