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Monday, December 14, 2015

Judicial Committee on One Rank One Pension (OROP) notified

The Judicial Committee on OROP has been notified today by the Ministry of Defence.

The One-person Committee shall comprise Justice L Narasimha Reddy, former Chief Justice of the Patna High Court.

The Terms of Reference shall be:

Measures for removal of anomalies, if any, that may arise out of implementation of OROP

Measures for removal of anomalies that may arise out of inter-service issues while implementing OROP

Implication on Service matters

Any other matter referred by Central Government on OROP or related issues.


Anonymous said...

Maj Navdeep,
Have the instructions and tables for OROP been issued or it will be issued after the recommendations of this committee are accepted/rejected by the government ?

P.Vigneshwar Raju said...

This notification does not cover the representations of stake holders.How come they do justification to us.

Manohar AM said...

Now that there are three proposals of new pension are before the veterans:

1. The 07 Nov 2015 Government notification on OROP in diluted form. As per the media it will be implemented in Jan 2016 with arrears coming in mid-March.
2. When implemented the 7th CPC pensions, and
3. The actual/factual/real OROP to be realised in course of time once the PIL (yet to be filed) gets positive judgement from the Supreme Court.
....which one will come first and which one be beneficial to veterans. (Obviously the last one)

All this confusion is because of Mr Modi not taking initiative to settle theOROP issue.

Vishnu Chari said...

The OROP is an intractable issue and cannot be implemented without detailed studies. All pre -2006 veterans want parity with post 2006 veterans stating that the basic pension of post 2006 veterans is more than the pre-2006 veterans. But the reality on ground is that the pre-2006 veterans draw more residual pension (monthly carry home pension) than the post-2006 veterans. All veterans including those who retired pre-maturely can be classified into three categories: - (1) All veterans (pre & post 2006 era) who commuted pension as per govt. orders (2) All veterans who did not commute pension as per govt. orders (3) All veterans who had commuted pension partially. If one carries out a study of these three categories of veterans, one would come to the following conclusions:-

(a) Veterans who had availed pension commutation. The present residual pension of pre-2006 veterans is more than the post 2006 veterans. Besides, the pre 2006 veterans enjoyed greater opportunity cost than the later because the market price went up considerably after implementation of 6 CPC benefits. Since pre-2006 veterans are already drawing more residual pension there is no need for immediate hike of pension. The basic pension of pre-2006 veterans need be raised only when the post 2006 veterans starts drawing more residual pension than the former. A large percentage (more than 99%) of veterans comes in this category.

(b)Veterans who had not availed commutation of pension. The percentage of this category is negligible. If you compare the monthly pension, it can be seen that pre-2006 veterans are presently getting less pension than the post 2006 veterans. In fact this is the category which really needs OROP at present and to be given parity immediately.

(c) Veterans who had partially commuted pension. In this category also the pre-2006 veterans are likely to draw more residual pension than the post 2006 veterans. When the govt. permits one to avail full commutation of pension at the time of retirement, one should have availed the full facility and enjoyed the opportunity cost.

Since the commutation of pension is refundable with interest to govt. it is, therefore, futile to discuss on the issue of commutation amount one got it at the time of retirement. Therefore, it is of paramount important to stress upon the residual pension rather than the basic pension. I personally feel that since commutation value is refundable all veterans whether pre or post 2006 era must get same amount of monthly pension.

Unknown said...

Once I met the chairman of 5cpc and explained him about hard life of a submarine sailor and their living conditions, he was shocked to know these facts,and I was shocked when he told me navy brass did not feed him correct information about submarine. Dr.Andithevar, Ex. Navy