NEW DELHI: The Narendra Modi government is set to announce the one-rank, one pension package that will kick in from July 2014 and use 2013 as the base year for calculations.
But it will stick to its position on a five year reset clause for veterans — as against 10 years for civilians — factoring in the complications resulting from a quicker adjustment. The ex-servicemen had demanded an annual adjustment.
READ ALSO: Don't let babus derail OROP, override them with strong political mandate
The pension for veterans of the same rank and those who retire with full pensionable service, will be the average of the maximum and minimum paid. But to protect any retired servicemen from losing out, there will be an additional safeguard to ensure that those who are already drawing above the average would not impacted.
Sources said the government is of the view that OROP should mean that an ex-servicemen of the same rank and with the same amount of service should receive the same pension, irrespective of the year of retirement. "The principle is that any increase in pension should result in a similar enhancement for someone who retired earlier to ensure that the new and old pensioner are at the same level. This will be done through adjustments once every five years," explained an official.
The government is expected announce the package in the next two-three days.
The he benefit of OROP would be available to war widows too but those who have opted for voluntary retirement would not be eligible.
The government is planning to pay the arrears from July 2014 in four installments spread over two years. In case of widows, however, it would be cleared in one shot. Sources said implementing OROP would cost the government Rs 8,000-10,000 crore annually. For the current fiscal year, the government has budgeted for defence pension of Rs 54,500 crore.
While the ex-servicemen were demanding that OROP should be implemented from April 2014, the government has opted for the July cut-off as the Modi administration took charge on May 26, 2014, explained an official.
Given the complexities in dealing with the duration of service and when someone retired, the government is also expected to announce a one-member judicial panel that will submit its report in six months.
Sources in the government said that an issue that had been hanging fire for several years has been resolved, at least for the moment. Although the UPA government had initially allocated only Rs 500 crore for OROP, the deal was sweetened after the PMO stepped in. Sources said that government took the view that there is a need to resolve the issue although it may put additional pressure on the resources available with the Centre.
But it will stick to its position on a five year reset clause for veterans — as against 10 years for civilians — factoring in the complications resulting from a quicker adjustment. The ex-servicemen had demanded an annual adjustment.
READ ALSO: Don't let babus derail OROP, override them with strong political mandate
The pension for veterans of the same rank and those who retire with full pensionable service, will be the average of the maximum and minimum paid. But to protect any retired servicemen from losing out, there will be an additional safeguard to ensure that those who are already drawing above the average would not impacted.
Sources said the government is of the view that OROP should mean that an ex-servicemen of the same rank and with the same amount of service should receive the same pension, irrespective of the year of retirement. "The principle is that any increase in pension should result in a similar enhancement for someone who retired earlier to ensure that the new and old pensioner are at the same level. This will be done through adjustments once every five years," explained an official.
The government is expected announce the package in the next two-three days.
The he benefit of OROP would be available to war widows too but those who have opted for voluntary retirement would not be eligible.
The government is planning to pay the arrears from July 2014 in four installments spread over two years. In case of widows, however, it would be cleared in one shot. Sources said implementing OROP would cost the government Rs 8,000-10,000 crore annually. For the current fiscal year, the government has budgeted for defence pension of Rs 54,500 crore.
While the ex-servicemen were demanding that OROP should be implemented from April 2014, the government has opted for the July cut-off as the Modi administration took charge on May 26, 2014, explained an official.
Given the complexities in dealing with the duration of service and when someone retired, the government is also expected to announce a one-member judicial panel that will submit its report in six months.
Sources in the government said that an issue that had been hanging fire for several years has been resolved, at least for the moment. Although the UPA government had initially allocated only Rs 500 crore for OROP, the deal was sweetened after the PMO stepped in. Sources said that government took the view that there is a need to resolve the issue although it may put additional pressure on the resources available with the Centre.
TIMES OF INDIA
