One Rank One Pension

Without Tears
 Scope of Coverage
Definition
History
Frequently asked Questions
Few Discriminations
 DEFINITION
OROP implies that uniform pension be paid to

The Armed Forces personnel retiring in the

same rank with the same length of service,

irrespective of their date of retirement, and

any future enhancement in the rates of

Pension to be automatically passed on to

the past pensioners

 HISTORY
Roman emperor Augustus started the tradition of
military pensions in 13 BC by guaranteeing life
pensions to every legionary who fought 20 years for
Rome. It set the bar for all modern armies and
independent India continued the British tradition of
financially privileging military service until 1973, when
as a gift for the performance of the armed forces in
1971 war the 3 rd pay commission reduced our
pensions.
The armed forces were getting higher pension than
civilians till 1973
Defence forces whose pension was based rank wise
had to face reduction from 70% of last pay drawn to
50% where as civil servants went up from 33 % to
50%.
 This kind of discrimination started soon after
independence when Nehru first wanted to disband the
armed forces and stated that he will manage with
police. But when that did not work out thanks to
Pakistan, he wanted to import a British General as
Chief of Indian Army as according to him Indian
officers did not have adequate experience. It is thanks
to a brave general who suggested we also import a
Prime Minister since none of the politicians had any
experience of running the country that the matter was
dropped. Nehru was so anti defence forces that he
took it upon himself to evict the then COAS from his
official residence Teen Murti Marg and the chief had to
pitch a tent in army grounds and stay there.
 Taking advantage of the attitude of Nehru and
what was happening in Pakistan then, the civil
service convinced the politicians that army will
take over the country and took over control of
the Armed Forces.
Whilst services accept civil control it does not
mean bureaucratic control. May I ask you all who
do you think is responsible for the defence of the
country??????
Well surprisingly it is the defence Secretary and
not the armed forces chiefs.
 So with this kind of attitude towards the forces it
is not surprising that there has been resistance
to OROP which was actually sanctioned in 1983
but never implemented. The bureaucrats went to
the extent of stating OROP Over our dead body
Incidentally OROP is coined by a Committee
appointed by Mrs. Indira Gandhi under the
Chairmanship of Brig K P Singh Deo.

It is only in 2009 after the discrimination against

defence reached its nadir, post 6 th Pay
commission that the demand for implementation
of this long standing sanction has been intensified.
 Frequently asked Questions

Is the demand about Money?

No
The fight for equal pensions is at its heart a
proxy battle for what we see as restoring our
lost `izzat', for getting what we see as our
rightful place in the civil-military balance where
political control of the military has translated
into bureaucratic control.
 What did the Koshiyari Committee say?
Page 14 of the report states
There is merit in the demand for One Rank One Pension
by Armed Forces Personnel, otherwise the matter would
not have been considered time and again by various
committees of the Government and Central Pay
Commissions. It could have been rejected once and for all
and principle of res judicata (a matter [already]
judged)would have been applied to this demand

1973 first considered by 3rd CPC,

1986 considered again by 4th CPC
1991 considered by Sharad Pawar committee
1996 considered again by 5th CPC
2003 considered by Inter-Ministerial Committee
2005 considered by Group of Ministers
2006 considered by 6th CPC
 Do Foreign countries have OROP
The UK has embraced one-rank-one pension for soldiers.
Our two biggest strategic challenges, Pakistan and China
have of course always privileged their military.
What is the Annual Outlay needed to implement OROP?
During 2011 a Rajya Sabha Parliamentary Committee
(Koshiyari Committee) was assembled to study all
manifestations of OROP. They interviewed and heard all stake
holders, including Veteran Organizations and MoD and Ministry
of Finance. The Ministerial inputs from the last two quoted
figures of approx Rs 3500 cr.
The figures worked out by the RM on a simple calculator were
Rs 8300 to 8600 cr which finally worked out to Rs 8293 cr.
Before the RM took charge of his bureaucrats he was fed
figures from 1300 cr to 22000 cr to create a scare of finance
shortage.
Why some JCO/Or are saying the demand is
officer centric?

This is a myth being spread by people to split the

veterans community.
Some JCO /OR are raising demands that are not
related to OROP .The demands may be valid but
are being mixed up with OROP to delay the
implementation.
Let us look at the table that shows who will gain
how much and the myth will be exposed purely
from OROP point of view .
 Table Showing % age increase Rank wise wef 01.01.2006 to grant of OROP
Rank Pension as on Pension as on Pension Over all % Over all %
01.01.2006 24.09.2012 per based on gain since gain since
circular 397 circular DGL as 01.01.2006 24.09.2012
500/501/5002 known to
IESM
Sep QS 15 yrs Gr Y 4035 5102 8365 107 64
Hav QS 17 Yrs Gr Y 4498 5301 9625 114 82
Sub Maj QS 25 Yrs Gp Y 9812 0 14405 47 0
Hon Lt QS 28 Yrs 13500 15465 17130 27 11
Maj QS 25 Yrs 14100 18205 32526 131 79
Lt Col (S) QS20 Yrs 21028 21490 32490 55 51
Col QS 26 Yrs 26050 27795 35275 35 27
Brig QS 28 Yrs 26150 29145 37255 42 28
Maj Gen QS 28 yrs 24566 29145 41500 69 42

Widows of
Sep QS 15 yrs Gr Y 3500 3500 5646 61 61
Hav QS 17 Yrs Gr Y 3500 3500 5958 70 70
Sub Maj QS 25 Yrs Gp Y 4830 9612 99 0
Hon Lt QS 28 Yrs 8100 10278 27 0
Maj QS 25 Yrs 8460 10923 19977 136 83
Lt Col (S) QS20 Yrs 15420 15759 20589 34 31
Col QS 26 Yrs 15630 16677 23319 49 40
Brig QS 28 Yrs 15690 17487 23421 49 34
Maj Gen QS 28 yrs 15390 18210 24900 62 37

Note :
1. All JCO and below(Except Hon Ranks and Sub Maj/Sub) got an increase in 2009 as well
2. Ranks upto Hav and Maj will gain the most as they had been subject to total injustice so far
What do the Raksha Mantri say about implementation?
Arun Jaitly: He said no shortage of money for OROP,
but asked the ESM to lower their expectations???,
meaning accept change in definition as accepted by
various committees of Parliament. He went on to
suggest his intent to refer the matter to a Tribunal to
reconcile differences between the Service Hq and MoD.
Such delaying tactics would obviously place the OROP
into a long Cold Storage, in line with MoD tactics of
attrition though delay. He also states there are many
definitions of OROP
Manohar Parrikar: Initially declared that OROP needs
a complicated formula to be worked and it can't be
treated as a dynamic thing .However later he
understood the issue and of late has said that he has
done his work correctly and the file is with FM. Clearly
indicating his having thrown up his hands vis a vis the
FM
Is the complexity of OROP the only factor
holding up the issue?
No .
In fact there is no complexity in OROP
It is a myth being created by those who wish to
sabotage the BJP promise of OROP by
1. Stating other will ask for it. None can as the
terms of service condition are not same.
2. The one time amount required is high .The figure
given is 22000 cr. Fully proved to be wrong by RM
himself.
3. Will be referred to 7 PC. Not a part of 7 CPC
Charter.
4. There can be different definitions. There is only
one definition approved by parliament.
5. The annual increment of .85% will increase the
annual load on budget. Let us look at this aspect
with care in the next slide.
 Is OROP imminently affordable?
It must be clarified that the current defence pension
expenditure of Rs 54,500 crores (2015-16) also includes
defence civilians who approximately number 400,000.
The perceived exponential rise in pension bill needs to be put
in the correct perspective. The figure would rise in absolute
numbers of course but when viewed as a percentage of the
nations GDP, the expenditure on defence pension shows an
overall declining trend as the table below will illustrate:

The defence pensions as a percentage of GDP thus shows a

clear long term declining trend despite an absolute rise in
numbers (the spike in 2009-10 was due to payment of
arrears for years 2006, 2007 and 2008 after the award of
the 6th pay commission).
Now why does the military have higher number
of pensioners as compared to their civilian
counterparts?
Simple.
The nation needs a young army and therefore soldiers
are recruited young and retired early (most of them
between 34-37 years). On the contrary, all non-military
government employees (including jawans of the Central
Armed Police ForcesCAPFs) have the luxury of serving
till the age of 60. The ratio of pensioners to serving
personnel in the military is thus 1.7:1 as against 0.56:1
among the civilians. But thats the price the nation needs
to pay for maintaining a standing army.
Had the long-standing recommendations for lateral
absorption of this vast, disciplined and ready made pool
of manpower in various non-military organisations been
implemented, perhaps the pension bill could have been
reduced but that has not happened because of lack of
political will and bureaucratic resistance.
 There is one more reason why the military
pension bill will further reduce in terms of
percentage of the GDP:
All civilians in defence ministry who joined
service on or after 1 January 2004, have now
come under the ambit of the contributory
National Pension Scheme (NPS).
Soldiers unfortunately cannot be brought under
the ambit of the NPS because of their short
service span. The benefit of NPS, it should be
noted, accrues over a long span of time (30
years or more) deriving the benefit from the
power of compounding the accrued amount!
 How pension Bill will actually decline?

Bunching Effect Will Peter Out. Bunching implies same

salary, and hence pension, for a particular rank even with
different years of service, despite the Running Pay Band
System introduced by 6th Central Pay CommissionCPC--
(salary increases automatically with three per cent annual
increment in Running Pay Band System; hence higher
salary for higher number of years of service).
 How pension Bill will actually decline?

Experts say another way to comprehend the

declining financial implication of annual review is
to draw an analogy from the Damping Out of a
Sinusoidal Wave. Unless there is an external
impulse, the sinusoidal wave gets damped
out. Similarly, as Bunching Effect and other
anomalies exit the system of pay and pensions,
with no external impulse (i.e, change in terms
and conditions of service), the additional financial
implications of annual review of OROP will
continuously reduce and in steady state will be
almost zero.
 How pension Bill will actually decline?

Theoretically, if there are 300 Cells in the OROP table (10

Ranks as Column Heads, 30 Qualifying Service as Row
Heads) and all 300 Cells are to be enhanced by one and
half per cent next year, the additional financial
implication will still be capped at one and half per cent.
However, actually only few Cells may change through
annual review of OROP tables and additional financial
implication of each Cell may range from 0 to one point
five per cent approximately. Hence, overall additional
financial implications will be much lower than one and half
per cent.
It was actually mathematically computed as 0.85 per cent
using CGDA (Comptroller General, Defence Accounts)
data for JCOs/OR.
How will the OROP be implemented?
Defence Minister has stated that OROP will be
implemented soon. So, why is IESM protesting for non
implementation of OROP? dont' you trust the PM? RM?

We have high hopes and regard for our PM. We believe him.
Yet, we are very skeptical of and have experienced the
machinations of the Indian Bureaucracy, particularly the
MoD. They are old hands at scuttling any move by the
Legislative and any rulings by the Judiciary that favors or
uplifts the conditions of the Faujis. One e.g
Maj Gen Vains case the Supreme Court (SC) ruling did
restore his pension to be marginally above Brigadiers but
less than the Maj Generals who retired after 2006, was a
grudging saving grace. However, the ignominy continued
because the government did not implement the full SC
ruling which actually amounted to OROP.In the last hearing
the Gov rep stated OROP will be implemented in 3 months
and that was in Mar 2015
Given the reality of veterans being close to passing on, the
issue of OROP assumes great expediency.
 Why the lack of Trust?
The Koshiyari committee recommendations submitted in
2011 were ignored till February 2014 to the detriment of
the UPA, but where was the vocal BJP on the issue of
OROP when it stalled the Parliament for several weeks and
months on other issues?
If the BJP did mention OROP in Parliament as often as the
impression is being conveyed, there must be something
on the record of Parliament after 2011.
How has the OROP fared from 2004 in Parliament? Here is
the data available on the internet though Lok Sabha and
Rajya Sabha websites and only the following information
was available (Pls try and keep track of BJP members
questions): -
 Why the lack of Trust?
08 Dec 2004 Shri Prabhunath Singh (RJD) raises a
query but is absent (details not available)
28 Apr 2005 Dr Col (retd) Dhani Ram Shandil (Shimla
- INC) raises a question (details of reply not available)
18 Aug 2006 Shri Kishan Singh Sanghwan (BJP,
deceased 2012) raises a question and Shri B K
Handique, MoS Defence replies that OROP is not possible
due financial, administrative, and legal reasons as
recommended by a Committee of Secretaries
23 Aug 2007 Shri P K Dhumal (BJP) raises a question
(details of reply not available)
26 Feb 2009 Shri Karan Singh Yadav (Alwar - INC)
raises a question (details of reply not available)
 Why the lack of Trust?
21 Aug 2010 Shri Pratap Singh Bajwa (Gurdaspur INC) raises
a question (details of reply not available)

25 Aug 2010 Shri Arun Jaitley (BJP) Non-implementation

of OROP by Govt (in his tenures in Rajya Sabha from Feb 2009 to
Feb 2014;

08 Jul 2014 - The principle of One Rank One Pension for the
Armed Forces has been accepted by the Government. The
modalities for implementation were discussed with various
stakeholders and are presently under consideration of the
Government. It will be implemented once the modalities are
approved by the Government. This information was given by
Minister of State for Defence Rao Inderjit Singh (BJP)in a written
reply to Dr T Subbarami Reddy in Rajya Sabha on July 8, 2014.
 Why the lack of Trust?
08 Nov 2014 - The principle of One Rank One Pension for the Armed
forces has been accepted by the Government. The modalities for
implementation were discussed with various stakeholders and are
presently under consideration of the Government. It will be implemented
once the modalities are approved by the Government. No Budget was
allocated for the purpose in the Budget 2013-14. Total number of
beneficiaries for OROP will be known once the modalities are
approved. This information was given by Minister of State for Defence Rao
Inderjit Singh (BJP) in a written reply to Shri Hukum Singh and others in
Lok Sabha today.

25 Nov 2014 Statement in respect of Para (a) to (c) of Rajya Sabha

Starred Question No. 31 for 25.11.2014 regarding implementation of One
Rank One Pension:
Reply (a) to (c): The principle of One Rank One Pension for the Armed
Forces has been accepted by the Government. The modalities for
implementation were discussed with various stakeholders and are
presently under consideration of the Government. It will be implemented
once the modalities are approved by the Government.

Type of Allowance
Disabled Employees
(a) Protection of Service
(b) Pay and Allowances
(c) Pension
(d) Right to life of dignity
of self and family
Few Discriminations
Civilian Employee
Govt has to retain them
till 60 yrs under Disability
Act
Full protection under
Section 47 of the Act. Will
not be discharged on
account of disability.
Full pay and allowances
admissible till the age of
60 even if unable to attend
any official duty. Can even
be kept on supernumerary
post and paid all pay and
allowances.
Entitled to full service
length till superannuation
and pension thereafter.
Full pay and pension and
complete Government
protection/cover with
entitled facilities Admissible
Faujis
Invalided (Thrown) out
of service immediately
Defence Forces exempted
from operation of Section
47. Hence no protection of
employment available in
case of disability.
Employee can be
discharged on account of
disability.
Nil Admissible
Nil Admissible
Nil. No facilities or
protection for self and
dependents
Increase in Pension of 108 times 45 times
highest rank employee Highest Civilian Functionary Highest Def Rank Pension
from 1973 to 2006 Pension 1973 - Rs 1000/-pm
1973 - Rs 416.50/-pm 2006 - Rs 45000/-pm
2006 - Rs 45000/-pm

Period of Service Upto60 years of age 85% compulsorily retired

between 35 -37 years age.
12-13% compulsorily retired
between 40-54 years age
Career Progression Three Promotions at Three promotion at 8, 16, 24
10,20,30 years of service years of service.
85% compulsorily retired at
15-17 years service; thereby
denied 3rd career progression

Officers Promotion 100% Joint Secy at 16-18 1% Maj Gen at 32-33 years of
opportunities years Service service.
100% Addl Secy at 32 3% Lt Gen 33-35years
years Service
Non-functional JS Pay at approx22 yrs. Nil
Upgradtion (NFU) Addl Secy Pay at 32yrs
Support of Heath Care Per member approx Rs Per member approx Rs
10000/- 10000/-
 Who are getting OROP already?

Top five ranks in the army comprise only 10%

of the officer strength. Contrast this with the
civil services where entire batches become
Joint Secretaries. Thus with majority entitled
to NFFU they are getting OROP.
 To sum up
From the Finance Minister statement in the Economic Times of
05 May 2015,we know that Tax exemptions and incentives to
corporate have resulted in a revenue impact of Rs 62,398.6 cr. to
the exchequer in 2014-15, 8 per cent higher than the previous
fiscal, Parliament was informed today. In a written reply to a
question in the Rajya Sabha , Finance Minister Arun Jetly said the
details of revenue impact on central taxes due to various
concessions and exemptions have been detailed in the Budget
document for 2015-16 but the same Minister is baulking at
giving Rs 8300 crores as estimated by the Defence Minister for
OROP.
So it is the FM with his Congress mind set who is the stumbling
block in implementation of OROP and his intentions were clear
from the meager allocation in his budgets knowing fully well the
actual financial implications.
How do we trust when the PM says he has four more years to
implement OROP? Is he buying time to once again fool the ESM
till next elections?
In the end let me quote extracts from a mail from Col
Karan Kharb after his visit to Jantar Mantar
I learnt that Ram Chander (60) a teacher in Jhunjunu
(Rajasthan) was planning to commit suicide either by hanging from
the tree or by self-immolating himself.
Why? Because his son - a Hav in a Grenadiers unit had sacrificed
his life in a terrorist encounter in Kupwara (J&K) in 2012 leaving
behind three younger siblings, a daughter and a son.
"Why are you so angry. Your daughter-in-law must be getting "full
last drawn salary" of your son which is much higher than any family
pension rate? You are not even affected by OROP.
Kya baat kar rahe ho aap? Mera beta apne ghar walon ke liye
Kupwara mein jakar marne gaya tha kya? Nahin Sahb wo desh ke
liye qurban hua hai. Mera dil aaj saari Fauj ke liye ro raha hai. Yeh
Neta, ye Tehsildar se lekar Chief Secretary tak ke officer log loot
machaye hue hain. Udhar Jo sainik desh ki sarhadon par khun
bahakar ya to mar jate hain ya pension aa jate hain -- aur yeh
unka haq nahin de rahe. OROP jise koi bhi nakar bhi nahi raha lekin
de bhi nain raha. Aise desh mein mein jeena hi nahi
chahta.mein.....Iss se to angrezon ki ghulami achchi thi....."