The MoD on Wednesday said 86 per cent of the total expenditure on the one rank one pension scheme for ex-servicemen would be for those retiring as personnel below officer-rank (jawans) who would retir
The MoD on Wednesday said 86 per cent of the total expenditure on the one rank one pension scheme for ex-servicemen would be for those retiring as personnel below officer-rank (jawans) who would retire as JCOs or other ranks. The jawans constitute an overwhelming majority in the 1.2 million-strong Indian Army which has only about 36,000 officers.
The MoD also said an increase of 20 per cent in the defence pension outlay budget for the coming financial year 2016-17 compared to the current financial year, after it issued detailed instructions on the implementation of the provision on Wednesday along with the “OROP tables” for ex-servicemen who stand to gain from the move. The government said the annual cost henceforth from implementation “at the current rate” would be Rs 7,500 crore, along with arrears of about Rs 10,900 crore. By proclaiming that 86 per cent of the total expenditure for OROP would benefit the jawans, the government is pressing home its point that the benefits of OROP will reach those ex-servicemen more who get lower pension and therefore need the money badly. But it remains to be seen whether the retired officers — who have mostly led the OROP agitation by ex-servicemen — accept the government’s implementation plan.
The representatives of ex-servicemen are expected to study the OROP tables in detail before deciding whether they are satisfied with the implementation or not. “The scheme fulfilled the long standing demand of the defence forces personnel and benefited over 18 lakh ex-servicemen and war widows.”
“The annual recurring financial implication on account of the implementation of OROP at the current rate will be approximately Rs 7,500 crore. The arrears from July 1, 2014, to December 31, 2015, would be approximately Rs 10,900 crore. 86 per cent of the total expenditure on account of OROP will benefit the JCOs/ORs. Payment of arrears and revision of pension under OROP is to be made by the Pension Disbursing Authorities in four installments, except for family pensioners and pensioners in receipt of gallantry awards who will be paid arrears in one installment. The total increase in the defence budget for pensions is estimated to go up from '54,000 crore (BE 2015-16) to around '65,000 crore (proposed BE 2016-17), thereby increasing the Defence Pension Outlay by about 20 per cent,” the MoD said.
“The government of India had taken the historic decision to implement OROP in November, 2015. This fulfilled the long standing demand of the defence forces personnel after 42 years and benefited over 18 lakh ex-servicemen and war widows. In pursuance of the order issued on November 7, 2015, detailed instructions along with OROP tables have been issued today,” the MoD added.
