One Rank One Pension: Explained

One rank one pension implies equal pension for having served in the same rank and having rendered the same length of service. In simple words,

it demands equal pensions for those who have retired in one particular year, as those who retire in another year at the same position, and for the same duration of services rendered. So far, there was no such rule. While every pay commission bumps the salaries of government servants, pensions of ex-servicemen remain the same. An officer, for example, who retired prior to 2006, when the Sixth Pay Commission was implemented, was getting lower pension than a colonel who retired after 2006 as he had the benefit of additional increments.

OROP had been projected as a demand for the first time in 1982. It had been simmering since then. It was rekindled and put in forefront by the Indian Ex-servicemen Movement in 2008 whose chairperson was/is Lt Gen Raj Kadyan(Retd). 

Armed forces personnel have to be young in age in keeping with their roles and tasks that require a high standard of physical fitness. Therefore, unlike all other central government employees, they are compulsorily retired at an early age. Nearly 85 percent defence personnel retire before they reach 40 years of age. It is a big blow to a person to be thrown out of his job at an age when his financial commitments are at the peak.

A Supreme Court ruling from 1983 stated, "Pension is not a bounty nor a matter of grace depending upon the sweet will of the employer. It is not an ex-gratia payment, but a payment for past services rendered". The significance of OROP is therefore justified.

This decision of One rank One Pension will be implemented prospectively from the financial year 2014-15. The requirement for 2014-15 is estimated at Rs 500 crore and the sum will be transferred to the Defence Pension Account in the current financial year itself.

Source: The Tribune and India Today.