What is One Rank One Pension Scheme:
In today’s Interim Budget, FM Piyush Goyal addressed in his budget regarding “One Rank One Pension”. Also added that expenditure amount of Rs. 35,000/-Cr will be incurred on this Scheme.
What is this scheme?
- In simple terms, OROP implies that 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 the past pensioners. This implies bridging the gap between the rate of pension of current and past pensioners at periodic intervals
- “Under this definition, it has been decided that the gap between rate of pension of current pensioners and past pensioners will be bridged every 5 years.
- To begin with, OROP would be fixed on the basis of calendar year 2013.
- Personnel who voluntarily retire will not be covered under the OROP scheme.