In News:

As OROP completes the 10 years in 2024, it is essential to reflect on the immense benefits the scheme has brought to the armed forces community. 

Overview:

• Implemented on: November 7, 2015.
• Announced in: Union Budget 2014, allocation of ?1,000 crore.
• Aim: To ensure uniform pension for military personnel retiring at the same rank with equal service duration, irrespective of retirement date.
• Significance: A landmark reform addressing a four-decade-long demand of ex-servicemen.
• Origin: Longstanding demand since the 1970s; first highlighted by the 3rd Central Pay Commission.
• Key Committees: K.P. Singh Dev Committee (1984) and Sharad Pawar Committee (1991) recommended reforms but faced financial and administrative hurdles.

Key Features:

The policy’s primary elements include:

• Re-fixation of Pensions: The pension of all past pensioners is re-fixed based on the pensions of personnel who retired in 2013, starting from July 1, 2014. This created a new benchmark for pensions, with all retirees getting equal benefits for their service.
• Periodic Revision: The pension is to be re-fixed every five years, ensuring that it continues to reflect changes in the pay and pension structure.
• Arrears Payments: Arrears of pension were to be paid in equal half-yearly installments, although the arrears for family pensioners and gallantry awardees were paid in a single installment.
• Safeguarding Above-Average Pension: For personnel drawing pensions higher than the average, their pensions are protected, ensuring that they do not lose out on the benefits of OROP.
• Inclusive of All Ex-Servicemen: The order covered all personnel who retired up to June 30, 2014, and provided a robust framework for revising pensions for all ranks, including family pensioners.

Impact:

• Veterans and Families:
  • Benefited over 25 lakh ex-servicemen and families.
  • Enhanced financial security, standard of living, and dignity.
• Emotional and Social Value:
  • Strengthened trust between veterans and the government.
  • Recognized sacrifices of armed forces personnel.