One Rank One Pension
Why in news?
Prime Minister Narendra Modi said on Thursday that the implementation of ‘one rank one pension’ for veterans was a significant step towards reaffirming the nation’s gratitude to its heroes.
What is One Rank One Penson:
The One Rank One Pension (OROP) scheme provides uniform pensions to armed forces retiring with the same years of service and rank, irrespective of their retirement date.
• Under this scheme, those who retire earlier will receive the same pension as those retiring later in the same rank, bringing about fairness in the pension distribution system.
• The OROP addressed the long-standing grievances of unequal pension benefits among military personnel, thus promoting fairness in pension payment within the armed forces.
• The government implemented the OROP scheme in 2014.
The key benefits of OROP:
- Under the OROP, arrears will be paid to armed forces personnel in four equal half-yearly installments. But arrears will be paid in one installment for all family pensioners, including those receiving special, liberalised family pensions and Gallantry award winners.
- The pensions are re-fixed every five years as per ranks for all defence or family pensioners.
- It establishes fairness and equality in the pension payment system for retired armed forces personnel.
- It ensures that retired armed forces personnel get equal pensions for the same rank and service period.
- It removes disparities in pension payments due to different retirement dates of armed forces personnel.
- To honour armed forces personnel contributions and sacrifices, the OROP provides them with adequate financial support in their retired life..
- It provides financial security to retired military personnel, enabling them to meet their post-retirement expenses and needs.