One Rank, One Pension denotes that all officers holding the same rank will receive an equal pension, as can be inferred from the name alone. For the benefit of the people who work for the Indian Armed Forces, this reform effort was started. To comprehend this reform, consider that under one rank, one pension, a general retiring in 1980 would be entitled to the same pension as a general retiring in 2015. On September 5, 2015, the Indian government announced the launch of the One Rank One Pension (OROP) Scheme, a response to the military personnel’s more than 40-year-old demand. One Rank, One Pension has been a long-standing desire of Indian ex-servicemen, and Mr. Manohar Parrikar, the country’s defense minister, just announced this pension scheme to help ex-servicemen and satisfy their persistent demand.
About One Rank One Pension 2023
The concept of One Rank One Pension (OROP) states that regardless of retirement date, a uniform pension will be granted to military members retiring in the same rank with the same amount of service. There is a significant difference between the average pension of a person retiring today and one who retired 40 years ago because, under the earlier scheme, pension was based solely on salary withdrawn at the time of retirement, and increment was also based solely on that. As a result, the majority of servicemen retire at an early age and become dependent on pensions for a very long period of time. The advantage of any future enhancement will be automatically transferred to the past pensioners under this programme. It is important to implement the OROP Scheme for ex-servicemen as soon as possible. Additionally, it clarified what the rank one pension is all about.
Also Read: National Pension Scheme
Objective of One Rank One Pension 2023
Lower Percentage of General Pension:
The program was created to fix the flaws in the previous pension system, which gave a retired Lieutenant General in 1995 a pension that was 10% less than a colonel who retired after 2006.
Lower Percent of Jawan Pension:
In a similar manner, a jawan who retires in the year 1995 receives a pension that is only 20% of the pension that their colleagues who retire on or after January 1, 2006, receive.
The desire for One Rank, One Pension was to eliminate these discrepancies among servicemen working at the same ranking, and this programme was effective in doing so.
Defense officers only work for a very little time before retiring at 33 to 35 years old. Because the defense service requires younger men to serve, this brief duration of service is important. On the other hand, civil service officers begin their retirement at age 60.
The Defense Sector’s Contribution to India’s Security:
The government has a moral duty to consider the well-being of the defense personnel who dedicate their lives to the country since India faces numerous intangible foes that must be defeated in order to secure its inhabitants.
Defense personnel’s enthusiasm and morale will decline if their pay or pension is less than that of civilian officers.
Justice, equity, honor, and national security are promoted by the One Rank, One Pension program.
Key Highlights of One Rank One Pension 2023
|Launched By||PM Narendra Modi|
|Name of Pension||One Rank One Pension 2023|
|Objective||To provide equal pension to all the ex-servicemen|
|Benefits||Equal pension to all servicemen|
|Beneficiaries||Armed forced officers who retired earlier|
|Launched Date||7th of November 2015|
|Age of Beneficiaries||Above 30 years|
Also Read: Indira Gandhi Pension Scheme
Benefits of One Rank One Pension 2023
- The One Rank One Pension will benefit former service members and war widows. This plan will be advantageous to these groups.
- Even when their retirement rates are lower than those of civil service officers, soldiers will still receive an equal pension. In the past, in the year 1996, Sepoys’ pensions were 82% lower than those of Sepoys who retired in 2006.
- The plan restored parity to the pensions of retired military personnel and civil officers.
- After each salary commission, the pension will automatically be enhanced.
- The increase in pension will enable the officers to maintain their standard of living in this period of rising living expenses and to live happy lives after retirement.
- Government support for its troops has increased, which has improved public morale and increased interest in joining the military.
Financial Benefits Provided under OROP 2023
|Financial Year||Amount paid out to settle OROP arrears|
Steps taken by Government under OROP 2023
- The President mentioned “One Rank One Pension” in his address to both Houses of Parliament on June 9, 2014, following the election of the 16th Lok Sabha, and the Government acknowledged it by allocating $1 billion in the 2014–15 budget to implement OROP.
- A number of meetings were convened in the Ministry of Defence to hammer out the specifics of its implementation in response to the Government’s decision to adopt OROP for Defense Forces. Before the Government issued its directive on the implementation of OROP, comprehensive consultations with experts and ExServicemen were held in light of the size and complexity of the Defense Pension.
- By releasing an order on November 7, 2015, the Indian government made the historic decision to adopt OROP as a sign of its dedication to the welfare of Ex-Servicemen. The scope of this Order included retired members of the armed forces as of June 30, 2014.
Who Benefits From Reforms
- Up until June 30, 2014, family pensioners and retired members of the armed forces were eligible for OROP. 20,60,220 Defense Forces Pensioners and Family Pensioners have received payments totaling 10,795.40 crores as arrears as a result of the implementation of OROP.
- The annual recurrent expense for OROP is roughly 7,123.38 crores. The entire expenditure for the roughly six-year period beginning on July 1, 2014, exceeded 42,740 crores.
- In addition, OROP participants benefited from the fixation of pension during the 7th CPC when the pension was calculated using the multiplication factor of 2.57.
Features of OROP 2023
- Starting with the 1.7.2014 benefit date, the pension of former pensioners will be recalculated using the pension of retirees for the calendar year 2013.
- The average maximum and minimum pension of employees who retired in 2013 in the same rank and with the same amount of service will be used to recalculate pensions for all pensioners.
- Pension benefits for people drawing more than the norm must be safeguarded.
- Areas will receive four equal semi-annual payments. However, all family pensioners, including those receiving special, liberalized family pensions and winners of gallantry awards, must get their back pay in one lump sum.
- The pension would be adjusted in the future every five years.
New Updates under One Rank One Pension 2023
- One Rank One Pension (OROP) pension modification for members of the armed services and their families has been approved by the Union Cabinet, led by Prime Minister Narendra Modi, the ministry announced in a statement.
- This selection will help more than 25.13 lakh veterans. My appreciation to the Prime Minister for keeping his promise to the nation’s ex-servicemen.
Under the NFSA, the government provides 81.35 billion people with free food for a year
- The National Food Security Act (NFSA), which the government chose to implement on Friday, will see 81.35 crore people receive free food grains for a year at an estimated cost of Rs 2 lakh crore.
- The recipients of the NFSA currently pay Rs. 1-3 per kg.
- According to the Act, foodgrain is distributed at highly subsidized prices of Re 1, Rs 2, and Rs 3 per kg for coarse cereals, wheat, and rice, respectively, and is allocated at 5 kilogramme per person per month for priority households and at 35 kg per family per month for Antodaya Anna Yojna (AAY) families.
- Beneficiaries of the NFSA will receive foodgrains at no cost for one year, through December 2023, thanks to the Cabinet’s decision on Friday.
- The Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) is set to expire on December 31, 2022, just days after the decision is made.
The Government Increases the MSP for Copra
- The minimum support price (MSP) for milling copra and the MSP for ball copra have both been raised by the government, respectively, by 270 and 750 rupees per quintal.
- According to a formal release, the Minimum Support Prices (MSPs) for copra for the 2023 season have been authorized by the Cabinet Committee on Economic Affairs, which is presided over by Prime Minister Narendra Modi.
- The Commission for Agricultural Costs and Prices (CACP) recommendations and the opinions of the principal coconut-growing states served as the foundation for the approval.
- For the 2023 season, the MSP for milling copra of Fair Average Quality has been set at Rs. 10,860 per quintal and for ball copra at Rs. 11,750 per quintal. In comparison to the previous season, this is an increase of Rs 270 per quintal for milling copra and Rs 750 per quintal for ball copra.
Challenges the Scheme Faces
- The estimated cost of the scheme’s implementation, which is expected to cost between 8000 and 10,000 crore rupees and will rise with each wage revision, will present an additional financial challenge for the government.
- Arrears-related expenses are expected to cost around 10,000 crores of rupees.
- The introduction of this programme would spur requests from other army personnel, including the CRPF, CISF, and others.
- The government would face a hurdle since it is quite difficult to look back over many years of historical data and then provide benefits to individuals who are entitled to them.
Negative aspects of the OROP Scheme
- Given that the overall cost of the programme is so large, the government will be under more financial strain.
- Because the pension is dependent on rank, those with higher ranks will benefit from higher pensions than those with lower ranks.
- It is unjust to those soldiers who have contributed more to the defense when all the weight is placed on rank and nothing on service time.
- The programme will place a greater strain on the government in the future because there is a possibility that it will give ex-servicemen a higher pension than it does working men.
- The plan would undoubtedly inspire additional service members, who would then demand higher pensions. The government would find it extremely challenging to deal with public pressure, which would put additional strain on the federal coffers.