- 08-Jun-2025
- Cyber and Technology Law
The One Rank One Pension (OROP) scheme is a pivotal reform in the Indian Armed Forces aimed at ensuring equal pension for military personnel who retire at the same rank and length of service, irrespective of the date of their retirement. The implementation of OROP has been a complex and multi-step process involving legal, financial, and logistical challenges.
In-principle approval: The Government of India gave in-principle approval for OROP in 2014 and announced the scheme's implementation in 2015 after extensive deliberations with military associations and stakeholders.
The government issued a formal notification on the revised pension scheme, making it applicable to all retired personnel of the Army, Navy, and Air Force.
The revised pensions under OROP are based on the average of the minimum and maximum pension for personnel of the same rank and length of service.
The last drawn pay and rank of the individual are considered, and pensions are recalculated according to the new pay scales.
For those who retired before the implementation of OROP, their existing pensions are adjusted to match the new norms.
The central government set up a committee to determine the average pension for each rank and service length.
One of the key features of OROP was to pay arrears to those retirees who were adversely affected by the pre-OROP pension disparities.
These arrears are calculated from the date of implementation and are typically paid out in phases, ensuring veterans receive the backdated amount.
The payment of arrears, while positive, has been a significant financial burden for the government, leading to delayed disbursements.
OROP is not a one-time implementation. The government has committed to revising pensions every 5 years to keep up with inflation and subsequent pay revisions made by the Pay Commission.
This ensures that veterans’ pensions remain updated and aligned with the pay increases of serving personnel.
The OROP scheme has had a positive impact on the financial security of retired personnel, particularly those who retired in earlier years when pay and pensions were lower.
However, the disbursement of arrears and the recalculation of pensions has led to varying experiences among retirees, as there have been delays in timely implementation.
Pension recalculation for thousands of retirees from different periods of service required substantial administrative resources. The process was time-consuming, and challenges arose in identifying correct service records for accurate pension calculation.
Special care was needed to verify length of service, rank details, and last drawn pay for each individual.
The financial cost of implementing OROP, including arrears, pension revisions, and regular adjustments, has been substantial. The government has had to bear this long-term financial commitment, which has been a significant point of contention in budget allocations.
The arrears payments to retired personnel have been delayed due to financial constraints, bureaucratic hurdles, and the complexity of recalculating the pensions of millions of retirees.
Veteran organizations have frequently raised concerns regarding the delayed disbursements of these arrears.
The administration of OROP faced legal challenges as several military associations argued that the implementation was delayed, or that the process was not adequately streamlined.
Reconciliation of records for personnel who had served decades ago created practical challenges in accurately determining their entitlement to revised pensions.
OROP has also been a subject of political debate. Some parties argued that the scheme was not being implemented efficiently and required additional funds, while others supported the veterans and insisted on the government fulfilling its promise.
A Sepoy who retired in 2002 may have been receiving a pension of ₹15,000, whereas a Sepoy who retired in 2017 with similar service length could have received ₹30,000, due to periodic pay revisions. With OROP, the Sepoy from 2002 will have their pension revised to ₹30,000, and they will also receive arrears for the difference since 2015, the date OROP was implemented.
The implementation of One Rank One Pension (OROP) in India has been a revolutionary policy, ensuring pension parity among military personnel of the same rank and service length. Despite the financial burden, administrative challenges, and delays in disbursements, the scheme has provided much-needed fairness and financial security to retired military personnel and their families. Over time, OROP continues to evolve, and its future is closely tied to how effectively these challenges are addressed.
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