Union Defence Minister recently said that he could not fix a date for the implementation of the One-Rank One-Pension (OROP) scheme for ex-servicemen. However, he also made it clear that the government will soon put in place the Scheme.
One-rank one-pension scheme:
This is a scheme which will ensure that soldiers of the same rank and the same length of service receive the same pension, irrespective of their retirement date. In simple words, it demands equal pensions for those who have retired in one particular year, as those who retire in another year at the same position, and for the same duration of services rendered.
- The difference in the pension of present and past pensioners in the same rank occurs on account of the number of increments earned by the defence personnel in that rank.
- So far, there was no such rule. While every pay commission bumps the salaries of government servants, pensions of ex-servicemen remain the same.
The implementation of one rank, one pension is also expected to push up the Centre’s defence pension payments by a record 40%, posing fresh challenges to keep the Centre’s fiscal deficit within the budgetary target of 4.1% of the Gross Domestic Product.
Sources: The Hindu, PIB