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Current affairs forms an important component of several competitive exams such as the UPSC Civil Services Examination, SSC CGL, Bank PO & PSU entrance tests, etc. Therefore, understanding new initiatives terms/concepts/schemes that are in the news is critical for aspirants.
New initiatives and socio-economic policies or what are known as flagship programmes announced by the Union government and State governments are often asked in competitive examinations. Therefore, to help deepen your understanding of the same, we at PaGaLGuY bring you information on such initiatives.
In today’s article, we will look at the recently approved One Rank One Pension (OROP) Scheme.
Why soldiers demand implementation of the OROP scheme?
The One Rank One Pension (OROP) scheme pertains to the pension provisions for the servicemen of the Indian Armed Forces.
Soldiers have been demanding implementation of the OROP scheme because they feel the present system is unfair. Currently, the basic pension amount of a retired soldier is typically 50% of his last salary drawn while in service plus the Dearness Relief which is linked to inflation.
As a result, soldiers who have recently retired in a particular rank draw a higher pension income vis-à-vis those who retired in the same rank a few years ago. For example – a Lieutenant Colonel who retired in 2014 will draw more pension than a Lieutenant Colonel who retired in 1980 due to salary revisions effected by pay commissions over time and other rules and regulations.
Thus, in all fairness to the service of these personnel, OROP scheme advocates uniform pension for servicemen retiring in same rank and with the same length of service, irrespective of their year of retirement.
Arguments in favour of OROP
Major arguments made in favour of implementation of the scheme are:
1. Recruited young, retire young – A nation always requires a young army, and India is no different. An Indian jawan is recruited at a very young age and retires at the age of 35. Thus, they do not have the benefit of longer service as other government officials and are consequently deprived of higher pay and pension after retirement. As a result of the short service soldiers lose out on opportunities for promotion, increment, salary revision, etc.
2. No alternate government jobs post retirement – Military personnel serve the nation during the best years of their life. However, at the end of their short career they have limited opportunities for re-employment. Neither do they have any other means of income nor are they assured of absorption in other government services of the same grade. Thus, defence personnel deem that the OROP scheme is the government’s moral obligation.
3. True recognition of soldiers’ service to the nation– Many military personnel feel that their efforts to protect the nation go unnoticed by the society at large. Such sentiments not only hamper the progress of serving defence personnel but also impact the mindsets of future soldiers. Therefore, implementation of this scheme would send a signal that the nation cares about its veterans and soldiers.
Arguments against OROP
The failure of successive governments to implement OROP is as old as the demand for its implementation. Major arguments made against the implementation of OROP are:
1. Administrative and legal complications – In 2011, the Ministry of Defence clarified that more than 25-year-old records were not available and this would be the most fundamental administrative difficulty in the scheme’s implementation. Moreover, calculating the pension amounts of an estimated 20 lakh pensioners would be a highly time-consuming and complicated process.
In some cases, soldiers get more pension for serving in the same rank as they may have served for a longer duration. However, stating provisions of the OROP scheme, a Lieutenant who served for 6 years may demand same pension as another Lieutenant who served for 20 years. As it is difficult to equate their pensions, this may result in legal complications.
2. Financial burden – By far the biggest hurdle is the cost of implementation of OROP. It is estimated that the one-time cost would be Rs.8300 crore. This is expected to increase each time a pay commission makes recommendations and old pensioners would also have to be paid as per the new rates.
3. Govt. fears similar demands from other forces- The government worries that the implementation of OROP would subsequently see a rise in demands from paramilitary and police forces, among others. In addition, civil servants who accepted contributory pension services (wherein government employees also contribute to their pension) in 2004 may also demand the OROP scheme. The resultant burden on the government treasury would thus be beyond control.
Conclusion:
Though the government has approved the OROP scheme, there is much disagreement over its provisions. Ex-servicemen demand annual revision of pension as against the government’s offer of a review once in five years. While the pensioners demand fixing highest pension for respective ranks, the government put forth the idea of pension being the average of the highest and lowest pensions with protection to those with higher pensions.
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