One Rank One Pension Scheme (OROP)

One Rank One Pension

The OROP scheme was devised by the Central Government to facilitate a better and just retirement policy for the Armed Forces of our country. It was observed that war veterans who had retired earlier are receiving a much lesser amount of pension money than those who have joined later and would be retiring later, after serving the same number of years and being in the same rank in their job. The reason was the revision of pension amounts which is based on the last salary drawn by an armed force officer. The Third Pay Commission was given the charge to look into the scheme.

Hence, keeping in mind the fact that army personnel retire much earlier than civilians and considering their better livelihood and resettlement, a just and equal scheme had to be brought into place which propagated that officers in the same rank, serving the same number of years will receive the same pension irrespective of their retirement dates. For example, a Major who retired in 2000 after serving 15 years of service would get the same pension as another Major who has retired in 2020 after serving the same number of years in service.

Details in the Scheme

  • The OROP scheme implementation orders were given by the Central Government in 2014.
  • The grant given by the Govt for OROP was Rs.60,000 Crore in 2015.
  • The scheme would especially help war widows as beneficiaries.
  • Revision of pension would be done every 5 years due to ‘inflation’.
  • It would include personnel who have served their full term and would not retire voluntarily.
  • The arrears would be disbursed in 4 installments and in a few exceptional cases like family. pension and gallantry award winners would be handed over the arrears in 1 installment.

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