OROP OUTLINE BY GEN KADYAN

Dear Colleagues,

           Of late there has been a flurry of emails on OROP. Seeing that it affects all of us, the interest OROP has generated is fully understandable.

          OROP started its journey in the early Nineteen-Eighties. Since then many had been pursuing it. Notable among them is  senior Veteran Col Inderjit Singh, who has been   doggedly chipping away at the government resistance and pushing for OROP in his quiet dignified way. He would be remembered with great admiration by the future generations.

          From 2008 onwards, the IESM put fresh fuel in the fight for OROP. Ours was a mix of presentations and protests, of meetings, memoranda and medal deposits running simultaneously; pressure and persuasion.  Meetings also took place with various political leaders. This included Mr LK Advani, Mr Rajnath Singh when he was BJP President, Mr Nitin Gadkari, Ms Sushman Swaraj, Ms Supriya Sule and many others.

          The Rajya Sabha  Petitions Committee, which itself was the result of efforts by the MP, Mr Chandrashekhar,  came as a shot in the arm. Among others the IESM delegation too made a presentation to the Committee. Some of us also worked behind the scenes. A couple of meetings at the residence of Shri Bhagat Singh Koshyari, who was heading the Committee, helped in inserting the crucial clause that future pension enhancements should be automatically passed on to the past pensioners. As would be seen, with this provision instead of being a one-time benefit, OROP becomes a permanent feature for pension equation. It is  a boon for future pensioners. We also had a few meetings with an influential Committee member Mr Ram Vila Paswan and succeeded in soliciting his support.

           

          The cumulative effect of all these efforts resulted in OROP being announced in the Parliament on 17 Feb 2014. Interaction with Mr AK Antony further ensured that this clause - of future enhancements being given automatically to past pensioners - was inserted in the Note he issued in the fourth week of February 2014. This definition was also later reiterated by the RRM in the Parliament in November 2014. Ever since February 2014, OROP has been only a question of 'when' and not of 'whether' it would come through.

          The bureaucratic hurdles were indeed there. First they wanted 'service in the rank' and not 'total service' as the criterion. This was adequately explained to the RRM and he confirmed that he would overrule the bureaucrats; he did. The second resistance was in the form of a perceived administrative difficulty in implementing the frequent enhancement in pensions. This was again explained to the RRM that pensions could be enhanced once a year and that since the Dearness Allowance was already being enhanced twice a year in the case of all pensioners without any difficulty any apprehension in case of pension is unfounded.  

          The proposal is being sent to the Finance Ministry. With the PM himself having committed grant of OROP repeatedly, it is unlikely that the Finance would even do any pruning of the proposal. After receipt back from the Finance Ministry, tables would be prepared jointly by the MoD and Service HQ. Some of the broad parameters of OROP are  as under:

1.    The definition, as given by the Koshyari Committee stays unchanged.

2.    The existing 'X' and 'Y' Groups would continue. The Service Headquarters had wanted merging of the Groups to 'X' level but   the recommendation was not accepted.

3.    The equation will be with the maximum pensions of past pensioners as explained in my article attached with the Sitrep dated 20 Jan 2015. Extract is given below:

"Keeping the above parameters in mind, a model is suggested here. Let us take the rank of Havildar. The base date of implementing OROP being 1 April 2014, take a sample of the total number of Havildars that retired in the preceding few months or an year. Take the highest pension earned by any Havildar during this period and use that as a benchmark for fixing pension of all Havildars. Since they all retire after a total service of 24 years, the application is simple. In the case of officers, since they retire by age, and the total service varies, take the maximum earned in the chosen sample for different lengths of total service and use these as benchmarks in a similar manner."

4.    At the time of preparing tables, Majors' pension is proposed to be upgraded to Lt Col less the Grade Pay equivalent.

5.    The total estimated annual cost of OROP is Rs 8,200 Crore.

          There are several anxious and even impatient calls being received  daily where ESM keep asking for the progress on OROP.  The Defence Minister in his TV interview had stated that OROP would be implemented by 31 March 2015. There is no change to that timeline. Some queries even pertain to the budget allocation, which should not be our worry/concern at all. A patient wait is required.

    

Best regards,

Lt Gen Raj Kadyan

Chairman IESM

262, Sector - 17A

Gurgaon - 122 001

Will 'One Rank, One Pension' Take A Physical Form In Budget

BENGALURU: The government is likely to fulfill a long standing demand of adopting ‘One Rank One Pension’ norms made by ex-personnel in particular. It may categorize military pension as a different pension category.
One rank one pension (OROP) is a demand by armed forces in order to ensure that the military pension cannot be equated with other pensions. This move is to bring a motivational and inspirational value to the armed forces.
The information collected from The Times of India reveals that an estimation of 8,000 crore seems to be allocated by the government to accomplish its commitment made to the ex- servicemen, who have been stridently demanding one rank one pension for many years.
Predominantly, if an officer is retired in 1990 then he is not entitled to get this enhanced pension if the same is implemented during the later years.
The basic idea of OROP demand is that, the pension for the officers with the same rank must remain same all the time since the cost of living is reaching to the sky. OROP basically implies payment of pension uniformly among the retiring army personnel with the same rank and length of service.
The soldiers, airmen and the sailors retire much earlier than their other civilian counterparts like BSF or CRPF receive aborted pension. The government has taken it into account along with considering other hardship factors like risky and life threatening duties and long hours of efforts.
Being a long standing demand by 2 million ex- servicemen in the country for OROP, the Modi’s budget seems to ensure to bring goods future for army men in the long run.
SOURCE- http://www.siliconindia.com/finance/news/

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SC asks Centre to fulfil one rank, one pension promise in 3 months

The Supreme Court has directed the Centre to implement its six-year-old verdict to follow the one rank, one pension (OROP) principle for retired armed forces personnel, reminding the BJP government that it had promised to do so in the run-up to last year’s Lok Sabha elections.
A bench of justices TS Thakur and AK Goel warned the government of contempt if it failed to abide by its order within three months.
“We make it clear that no further time will be granted for the purpose of implementation of the judgment,” the bench told additional solicitor general Pinky Anand who assured the bench that modalities would be worked out till then.
“This was part of your manifesto for the Lok Sabha elections. You must keep your word,” justice Thakur reminded Anand while hearing a contempt petition filed by retired Major General SPS Vains who dragged the defence ministry to court demanding the OROP scheme.
Armed forces personnel holding the same rank will get the same pension, regardless of the last drawn pay, years of service and the years served in a particular rank, under the OROP scheme.
Vains’s counsel, senior advocate Nidhesh Gupta, said the government wasn’t doing charity since there was a court order in his clients’ favour. “We have a judgment. It has been six years and we are still waiting,” Gupta told the court.
He later told HT, “Before this judgment came, there was disparity among retired armed forces personnel receiving pensionary benefits that were calculated as per their pay-scale. So a major general, who retired before 1996 when the fifth pay commission was introduced, drew pension lower than not just a similarly ranked officer who retired post-1996 but also a brigadier, colonel and a lieutenant colonel. The 2008 judgment brought everyone at par as the verdict said there should be no classification due to the date of retirement.”
Successive governments in the past have opposed OROP on the grounds that it would not be financially feasible.
However, the Modi government has promised to implement the policy that will benefit around 25 lakh ex-servicemen. OROP for the armed forces is likely to be part of the Union budget and could be implemented soon. 
http://www.hindustantimes.com/ 

OROP LATEST NEWS BY IESM

Dear Members

Further to the information given in the report of rally held on 1 Feb 15. On 1 Feb 15 a delegation of 30 ESM including four veernaris met RM at Kotah house. RM had promised to take action on OROP latest by 17 Feb 15. 

IESM has a good news for you. Your dream of OROP has moved a step closer to its approval. 

As promised by RM to IESM delegation that he will personally monitor the progress on OROP.  True to his promise he has chaired a meeting today of OROP action committee. The meeting was attended by CGDA,DESW, MOD and Army pay cell Maj Gen Aggarwal and Col Pruthi. Col Rathore also attended the meeting. It is confirmed that OROP file has finally reached MOD.

Following decisions have been taken in the meeting today 17 Feb 15.  

1. OROP will be as per approved definition.
2. In most of cases ESM will get fixed at highest of their rank pay band. 
3. OROP equalization will be done annually. 
4. Some issues of Major's pension are under discussion and will be sorted out soon.  

 RM gave special instructions to Gen Aggarwal to inform Gen Satbir singh about this development. Gen Aggarwal informed IESM asap he came out of the meeting. File is under final scrutiny and preparation and file will be dispatched to MOF on 23 Feb as RM is going to attend Annual Aero Show at Bangaluru from 17 to 22 Feb.

CGDA has already issued circular no 536 giving increase in pension of widows w.e.f. 24 Sep 12. This circular fixes the pension of widow at 60% of the pension of the ESM as given in circular 500. Widows will get this enhanced pension from 24 Sep 2012. They will further get arrears from 1 Jan 2006 as and when the MOD issues such instructions. 

Dear Members hold your celebration till budget. We will finally come to know how much funds get allotted for OROP in this years budget and will raise a toast for OROP on that day.

IESM salutes sincerity of RM Sh Manohar Parrikar. He is a man of his words. He had promised action on OROP by 17 Feb and he has executed it. 

Regards
Gp Capt VK Gandhi VSM
Gen Sec IESM
Block N5, Flat no 801

Narmada Block

Pocket D6, Vasant Kunj
New Delhi. 110070
Mobile   09810541222

ACHEY DIN FOR ESM AYEGA?

Achchey Din seems likely to dawn on the armed forces, or ex-personnel in particular. The government is giving final shape to their long standing demand of adopting One-Rank One-Pension (OROP).
Bureaucrats are currently burning midnight oil to pore over the fine print of at least four options to implement the OROP scheme. A source in government, aware of the developments, says a decision is expected soon and a large provision in the Budget, or soon after.
"We are very hopeful that the long overdue injustice to the armed forces will be reversed in this budget," says Maj Gen Satbir Singh (Retd) who leads the IESM or Indian Ex-Servicemen Movement, which lobbied intensely for OROP since 2008. "Both UPA and NDA have agreed to our OROP so we see no reason that it will be held back now," he says.
For 40 years the retirees, now numbering three million, have been bristling under what they perceive as "neglect and humiliation" by political parties and successive governments. Its extreme manifestation, from their perspective, was the denial of OROP. Lack of empirical data on the cost of this pension, plus political reluctance of the parties fuelled much of the denial and delay. The former military staff launched public agitations to make their case, often embarrassing the government.
Regardless of which of the four options the government decides upon ultimately, the roughly Rs 8,000 crore likely to be set aside for OROP should go a long way to calm the angry (wo)men in uniform, besides providing them a lifestyle befitting the status, say, one that a retired colonel or brigadier enjoys.
One choice before the government, says the same government source, is to do exactly as the ex-servicemen want: Give future and past retirees of the same rank from the Army, Navy and Air Force exactly the same pension. Essentially, this means that all Brigadiers or, say, Air Vice Marshals, would get the same pension regardless of when they retired, taking into account only their years in service and the number of years they held the rank. This formula, a literal interpretation of the phrase One-Rank One-Pension, has been accepted by government committees, including the Parliamentary Standing Committee on defence.
For instance, a colonel with 30-32 years of service, whose basic pay was around Rs. 26,000 before 2004 would have earned around Rs. 37,000 in 2014. OROP is expected to bridge the pension gap that arises due to this pay discrepancy. "Our demand is very simple: Today's pension for all previous retirees," says Singh.
But the government's estimates of cost of this pension have it pedalling back a little. Taking 2012 as the cut-off date, giving past retirees hikes that bring them on par with the highest pension paid to that rank in 2012, would cost a whopping Rs 16,000 crore, they argue. This has prompted a hunt for other options, meant to "balance" the exchequer with meeting armed force expectations.
A second option involves fixing the pension for pre-2006 retirees according to the 6th Pay Commission. Then, the government may pull a trick out of its hat and select the lowest pension paid since 2006 as the norm for older retirees. A version of this formula is already under implementation for Junior Commissioned Officers, Non-Commissioned Officers, and other ranks. It's possible this formula, with some tweaks, will be accepted, and result in the roughly Rs 8,000 crore allocation.
"It's obvious OROP is going to happen," says this government official. The discussions, this person says, is now in its final stage. There was a third choice, which involved bringing all ex-servicemen on par with the basic pay of the 6th Pay Commission, then calculate each retiree's pension individually, taking into account each one's years in service and length of time spent in the rank. This option is an "administrative nightmare" dogged, reportedly, by unavailable past data with the Controller of Defence Accounts, a wing of the ministry of defence. The lack of data is also a clear sign that the OROP debate has been based on weak databases and much groping in the dark.
A fourth and final option is where pension is to be fixed on the basis of an average or median. Separate groups of retirees who superannuated in bands of years, say, between 1990 and 2000, would be made. Those earning a pension below the average would get an enhanced pension, while the rest would be protected. This option, apparently easy to implement, is technically not OROP at all as it implies a different pension for retirees in the same rank, if they retired at different points of time.
The defence forces are mounting tremendous pressure on the government to ensure OROP isn't watered down. Earlier this month, they questioned defence minister Manohar Parrikar for saying that OROP would satisfy them "80 per cent." Their vociferous protest had the government assure full satisfaction. In 2009, angry retired armed personnel signed a petition in their own blood for then President Pratibha Patil. Reeling under such tough tactics, the UPA finally accepted OROP in 2012. But the Rs. 500 crore for it in last year's interim budget presented by finance minister P Chidambaram was seen as woefully inadequate. The veterans switched sides, now pinning their hopes on to the BJP's then prime minister-aspirant, Narendra Modi.
Five lakh ex-servicemen had assembled last spring at Rewari, on the outskirts of Delhi, to hear Modi promise OROP, should his party form the government. Behind the scenes, the ex-servicemen had already got an assurance from the party to consider their demand and publicly announce it, as a precondition for pulling in the spectacular crowd in Rewari. "For years we had requested, protested and demanded OROP. In 2014 we realised what would make a difference to politicians—votes. With our strength and influence over the village population, we could swing elections in many places," Gen (retd) Singh says.
OROP is an issue which could trip the BJP. It considers and projects itself as a fiercely nationalist party, a narrative meaningless without a robust national defence policy. It can scarcely afford to disappoint the defence forces. Nevertheless, the different versions of OROP indicate just how conflicted the issue is. The ex-servicemen never agreed that OROP will cost the Rs. 16000 predicted by the bureaucracy. They still hope for a Rs. 9000-12000 crore allocation for full OROP. The usually docile military retirees started getting heated up only after 2006. That year, the Sixth Pay Commission hiked central government pay significantly, to counter the private sector's fantastic offers to the similarly educated. As pension is always a proportion of salary, after this hike, the gap between pensions of ex-servicemen who retired before and after 2006 grew wider. Most jawans retire in their mid-thirties, and only an eighth of officers rise beyond the rank of colonel. The belief that the army would never catch up with the civil services' benefits also grew.
http://www.outlookindia.com/article/Achchey-Din 

AAP Manifesto includes One Rank One Pension issue

Just a day after defeating the might of Narendra Modi-led Bharatiya Janata Party (BJP) in the Delhi Assembly elections, Chief Minister-designate Arvind Kejriwal today asked Delhi Chief Secretary D M Spolia to prepare a road map for implementation of Aam Aadmi Party‘s (AAP) 70-point manifesto which includes Ex-serviceman's issues at Sl. 64.  

64. Respecting Our Ex-Servicemen: Delhi is home to a large number of ex-servicemen and women from the Armed Forces. AAP will stand by the nation’s ex-servicemen in their fight for “One Rank, One Pension”. We will ensure the existing quota in government jobs for ex-servicemen is filled up.