 "Govt accepts one rank, one pension; ex-servicemen continue agitation")
Addressing a packed press conference here on Saturday, Defence Minister Manohar Parrikar announced the government had accepted ‘one rank, one pension’, or OROP. “The government respects its armed forces and ex-servicemen,” Parrikar said.
OROP would be implemented with effect from July 1, 2014, and would cost the government Rs 18,000-22,000 crore this year.
The government has committed to pay Rs 10,000-12,000 crore as arrears, and another Rs 8,000-10,000 crore towards this year’s enhanced pensions. With Budget 2015-16 allocating Rs 54,500 crore for military pensions this year, actual spending on defence pensions will now rise to Rs 72,500-76,500 crore.
“In simple terms, OROP implies uniform pension be paid to the armed forces personnel retiring in the same rank with the same length of service, regardless of their date of retirement. Future enhancements in the rates of pension would be automatically passed on to past pensioners,” Parrikar said.
However, former soldiers, sailors and airmen who have staged an almost three-month-long public agitation for their demand of OROP took just minutes to reject some of the government’s offers, which failed to meet key demands.
Ex-servicemen agitation leaders in New Delhi expressed particular unhappiness about the exclusion from OROP of those who took premature retirement (PMR) before reaching the age of superannuation from service. When a delegation of agitation leaders conveyed this to Parrikar soon after his announcement, the defence minister quickly addressed their concern, providing an assurance that even soldiers who took PMR would be granted OROP.
Retired general Satbir Singh, who heads the Indian Ex-Servicemen Movement, agreed to withdraw the fast-unto-death of ex-servicemen, subject to the latest decision being given in writing. However, he said the larger agitation would continue until all the demands were met.
According to the government’s OROP award, there will now be dynamic and continually rising pension scales for ex-servicemen, as pay commissions invariably raise military salaries and, therefore, pensions of the beneficiaries when they retire.
“This implies bridging the gap between the rate of pension of current and past pensioners at periodic intervals,” said Parrikar. “It has been decided that the gap between rate of pension of current pensioners and past pensioners will be bridged every five years.”
Ex-servicemen groups have flatly rejected this. Satbir Singh told Business Standard pensioners couldn’t wait five years for parity in pensions. Instead, pensions should be adjusted (equalised) every year, he said.
Indicating the ex-servicemen’s vote bank had acquired a new salience, Parrikar issued a detailed critique of the United Progressive Alliance government, which, like other governments for the preceding four decades, had “remained ambivalent” on OROP. He said the complexity of OROP was the reason the National Democratic Alliance government had taken so long in announcing its implementation.
“In February 2014, the then government stated OROP would be implemented in 2014-15, but did not specify what OROP would be, how it would be implemented or how much it would cost. An estimated Rs 500 crore provided for OROP in the Budget presented in February 2014 was not based on any thorough analysis. It is pertinent to mention the then minister of state for defence in 2009 had, in reply to a question, informed Parliament that there were administrative, technical and financial difficulties in implementing OROP. It is for these reasons that the present government took some time to fulfil its promise.”
Talking to Business Standard after the announcement, Minister of State for Defence Rao Inderjit Singh said, “The government has taken a decision that this is what we can give them (ex-servicemen). It will now be put to them and one can only hope saner elements among them will prevail.”
OROP would be implemented with effect from July 1, 2014, and would cost the government Rs 18,000-22,000 crore this year.
The government has committed to pay Rs 10,000-12,000 crore as arrears, and another Rs 8,000-10,000 crore towards this year’s enhanced pensions. With Budget 2015-16 allocating Rs 54,500 crore for military pensions this year, actual spending on defence pensions will now rise to Rs 72,500-76,500 crore.
ALSO READ: All you need to know about OROP
“In simple terms, OROP implies uniform pension be paid to the armed forces personnel retiring in the same rank with the same length of service, regardless of their date of retirement. Future enhancements in the rates of pension would be automatically passed on to past pensioners,” Parrikar said.
| BASIC FEATURES OF THE OROP GRANT |
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However, former soldiers, sailors and airmen who have staged an almost three-month-long public agitation for their demand of OROP took just minutes to reject some of the government’s offers, which failed to meet key demands.
Ex-servicemen agitation leaders in New Delhi expressed particular unhappiness about the exclusion from OROP of those who took premature retirement (PMR) before reaching the age of superannuation from service. When a delegation of agitation leaders conveyed this to Parrikar soon after his announcement, the defence minister quickly addressed their concern, providing an assurance that even soldiers who took PMR would be granted OROP.
Retired general Satbir Singh, who heads the Indian Ex-Servicemen Movement, agreed to withdraw the fast-unto-death of ex-servicemen, subject to the latest decision being given in writing. However, he said the larger agitation would continue until all the demands were met.
According to the government’s OROP award, there will now be dynamic and continually rising pension scales for ex-servicemen, as pay commissions invariably raise military salaries and, therefore, pensions of the beneficiaries when they retire.
“This implies bridging the gap between the rate of pension of current and past pensioners at periodic intervals,” said Parrikar. “It has been decided that the gap between rate of pension of current pensioners and past pensioners will be bridged every five years.”
Ex-servicemen groups have flatly rejected this. Satbir Singh told Business Standard pensioners couldn’t wait five years for parity in pensions. Instead, pensions should be adjusted (equalised) every year, he said.
Indicating the ex-servicemen’s vote bank had acquired a new salience, Parrikar issued a detailed critique of the United Progressive Alliance government, which, like other governments for the preceding four decades, had “remained ambivalent” on OROP. He said the complexity of OROP was the reason the National Democratic Alliance government had taken so long in announcing its implementation.
“In February 2014, the then government stated OROP would be implemented in 2014-15, but did not specify what OROP would be, how it would be implemented or how much it would cost. An estimated Rs 500 crore provided for OROP in the Budget presented in February 2014 was not based on any thorough analysis. It is pertinent to mention the then minister of state for defence in 2009 had, in reply to a question, informed Parliament that there were administrative, technical and financial difficulties in implementing OROP. It is for these reasons that the present government took some time to fulfil its promise.”
Talking to Business Standard after the announcement, Minister of State for Defence Rao Inderjit Singh said, “The government has taken a decision that this is what we can give them (ex-servicemen). It will now be put to them and one can only hope saner elements among them will prevail.”