Union Cabinet of India approved the Demands of Ex-servicemen for One Rank One Pension

The Union Cabinet of India, under the Chairmanship of Prime Minister Manmohan Singh on 24 September 2012 approved the long awaited demand for One Rank One Pension (OROP) and other benefits of ex-servicemen. The cabinet also gave a nod for enhancement of pension for family and dual family pension. The approved demand will cost the government about Rs 2300 crore per year.

The cabinet also approved family pension grants for mentally or physically challenged children of personnel from armed forces.

Issue

The ex-servicemen association and defence forces demanded payment of uniform pension to the defence personnel retiring at same rank with same length of service period irrespective of their date of retirement. The OROP also demanded passing of future enhancements to the past pensioners.

The cabinet approved following things on the issue of one rank one pension:

To bridge the gap created between the pension of the JCO/OR retirees as per the pre 1 January 2006 and post 1 January 2006 after determining the pensions of the pre 1 January retirees.

The gap will be bridged on the basis of estimated maximum for ranks and groups among the three categories of services following the case of the post retirees. The weightage for qualifying into the service for Naik, Sepoy and Havaldar ranks would be increased by two years in case of both pre and post retirees.

For the pre- 1 January 2006, commissioned officer pensioners the pensions will be decided after referring to the minimum of the fitment table for the ranks in place of the minimum of the pay band. In relation to the family pension, the cabinet in its decision stated that the pensions of the pre- 1 January 2006 retirees like Honorary Commissioned Officers, Commissioned Officers, JCOs/Ors will be decided following the fitment table instead of the minimum pay-band.

For establishment of links with the family in cases, where death of the JCOs/ORs have occurred after the retirement than the dependants of the pensioner will be entitled for 60 percent of the determined pension incases the normal family pensions can be calculated to be 30 percent of the last pay drawn by the pensioner. In cases, where the pension is decided on the basis of ranks, length of service and group of employment, the normal family pensions after the death of JCOs/ORs will be 60 percent of the determined pension on notional basis.

Dual family pension

The cabinet also made its stand clear that in cases, the dual family pension will be allowed in both present and future scenario, where the pensioners drew or is drawing or will draw the pension for both the civil employment as well as for the military service. In cases of the family pension for mentally/physically challenged children, the family pension scheme will continue even after the marriage for those who are drawing or drew or may draw the pensions.

Panel report

The approval of the Union Cabinet came on the OROP after the six member committee formed by the Prime Minister submitted its report. Ajit Seth was the head of this committee.