One Rank One Pension

INTRODUCTION

One rank one pension (OROP) means that military personnel retiring in the same rank with the same amount of service will receive a uniform pension regardless of when they retire, and that any future increases to pension rates will immediately be transferred to the previous pensioners.
In November 2015, the OROP policy was ultimately passed. According to the 2015 policy, veterans who left the military before January 1, 2014, would be eligible for pension payments based on the average of the highest and lowest wage awarded for their rank in 2013. Pensions for veterans who left the service after January 1, 2014, were calculated using their final salary. Revisions to the pension rates would occur every five years.

ARGUMENTS IN FAVOUR OF OROP    

• The gap between the pensions of current and former retirees has widened with each pay commission. Veterans contend that justice, equity, honour, and national security are at stake in this.
• Military employees' morale is lower when they receive less money than their civilian counterparts. The active-duty officers and troops will also be impacted by this.

ARGUMENTS AGAINST OROP

The exchequer will bear an enormous financial burden as a result of the execution of this strategy. It is anticipated that the yearly financial burden will range from 8000 to 10000 crore. Additionally, this sum will rise with each salary modification.    

WHAT ARE THE ANAMOLIES IN THE SCHEME

According to the 2015 plan, the pension rate for former military retirees was set at the same level as that of current retirees.
Since lieutenant colonel is currently the minimal rank of retirement to acquire pensionable service, some anomalies have emerged in the pension tables for captains and majors due to improper data of the officers in the ranks of regular captains and majors.
In order to offer a solution for this anomaly, the Ministry of Defence established the One Man Judicial Committee (OMJC) in 2016. However, the Ministry did not take any more action on the problem.
The ministry was then given a deadline by the Kochi Bench of the AFT to address the problem in accordance with the OMJC's recommendations.

DEVELOPMENT SO FAR

The Union was instructed by the Armed Forces Tribunal (AFT) Kochi to resolve issues with OROP back in 2021. The Union, however, opted to challenge this order through an appeal.
The Supreme Court ordered the Centre to pay the arrears within three months on March 16, 2022, while maintaining the OROP system. Later, in September 2022, the deadline was extended by an additional three months. The deadline was moved up to March 15, 2023, in January 2023.
Subsequently, in defiance of the court ruling, the Defence Ministry unilaterally extended the date through a circular. The Defence Secretary may face contempt charges, the Supreme Court declared, strongly objecting to the Defence Ministry's action. The Supreme Court granted a final extension in March 2023 to pay off the OROP arrears in installments by February 2024.
The Union was forewarned by the Supreme Court on July 24 that it was likely to impose exemplary costs and to order a 20% pension enhancement for regular Captains.

LATEST DEVELOPMENT

A bench of Justices Sanjiv Khanna and R Mahadevan granted the Centre until November 14th, 2024, as their final chance to address the irregularities pertaining to the pension of these retired officials under the scheme.
It stated that the sum of Rs 2 lakh will be paid into the Army's welfare coffers and forewarned the government that it would order retired regular captains' pensions to be increased by 10% if no action was taken by November 14.
It scheduled a follow-up hearing for November 25.