Tuesday, 8 July 2014

OROP (A little belated) Update: Meeting of 12 Jun 14

Definition of OROP approved by RM – Same rank, same years of service, same amount of pension as drawn by officers & Other Ranks after 1.1.2006 and also future enhancements in pension; please note there isn’t any distinction between groups in Other Ranks

Working Group approved by RM - comprising representatives of the Service HQ (Army, Navy, Air Force Pay Cells) and ESM where appropriate as determined by Service HQ


Ø Entrusted to coordinate the discussions of the Working Group

Ø Had asked the Service HQ to provide a Draft Government Letter (DGL) though it was the mandate of the CGDA to do so

Ø Has estimated that taking pay in the pay band as on 31 Mar 2014 for paying OROP w.e.f. 01 Apr 2014, a sum of Rs 9100 crores would be the annual Cost to the Public Exchequer (CPE).

Back of the Envelope Calculations

Ø Rs 9100 crore is possible only if: -

§ Even at Sepoy level, pension of 20 years would have to be paid though the Sepoy level personnel are discharged at 17, 15 and 15 years service from the Army, Navy, and Air Force respectively.

§ That all officers retire with 30 years of qualifying service as indicated in PCDA (P) Circular 500 thereby inflating the estimated CPE
§ Not taking into consideration that ORs can opt to change from Gp Y to Gp X after 13 years of service and therefore weightage needs to be been given to this aspect

§ Not considering that after AVSC, some officers (Majors to Brigadiers) will reach the top of the pay Band 4 (Rs 67000) and adding Grade Pay + MSP will draw more emoluments than an Army Cdr. Examples are available from amongst serving officers (Lt Cols to Brig).

· Lt Col Rs 67000+GP 8000+ MSP 6000= Rs 81000

· Col Rs 67000+GP 8700+MSP 6000 = Rs 81700

· Brig Rs 67000+ GP 8900 + MSP 6000 = Rs 81900

· Pay of VCOAS/Army Cdr = Rs 80000 making a case for notional MSP for Maj Gens and above
Ø Whether sums paid on the implementation of the following have been added to/subtracted from to arrive at a figure of Rs 9100 crores: -

§ PCDA (P) Circular No. 453 - Revision of pension of pre-1.1.2006 Armed Forces Pensioners/Family Pensioners vide Annexure to MoD letter No. 17 (3)/2010-D (Pension/Policy) dated 15 Nov 2010

§ PCDA(P) Circular No. 471 - Implementation of Govt decision on recommendations of the 6thCPC – Pension of PBOR discharged from service on or after 01 Jan 06

§ PCDA (P) Circular No. 482 - Revised Pension Payments made due to OROP for certain categories of Other Ranks vide Appendix to MoD letter No. PC.10 (01)/2009-D(Pen/Pol)-Vol II dated 27 Mar 2012,

§ PCDA (P) Circular No. 494 dated 19 Mar 2013– Enhanced Ordinary Family Pension of pre-2006 Armed Forces family pensioners vide MoD letter No. 2(1)/2012/D(Pen/Policy) dated 16 Jan 2013

§ PCDA (P) Circular No. 500 Enhanced Minimum guaranteed Pension to pre-2006 Commissioned Officers/Family Pensioners vide Annexures A, B, C, D, E, F, G to MoD letter No. 1(11)/2012-D (Pension/Policy) dated 17 Jan 13,

§ PCDA (P) Circular No. 502 - Enhancement of ordinary family pension in respect of pre-2006 LCOs/ORs Family Pensioners vide Appendix to MoD letter No. 1 (14)/2012/D (Pension/Policy) dated 17 Jan 2013,

§ PCDA (P) Circular No. 503 dated 17 Jan 2013– Improvement in Casualty Pensionary Awards for Pre-2006 Armed Forces Officers, JCOs/ORs vide MoD letter No. 1(16)/2012/D (Pen/Policy) dated 17 Jan 2013 and

§ Re-fixation of pay due consequent to Hon’ble Supreme Court order of 04 Sep 12 and Opinion of Ld Attorney General dated 03 Sep 13 in the Rank Pay case which will increase the pay due from 1996 to 2005, and arrears thereof

§ Re-fixation of pay in the pay bands in the Sixth CPC consequent to payment of Rank Pay due to restoration of the deduction and arrears thereof

§ Arrears due to Hon’ble Supreme Court dismissing the SLP (C) 23055 of 2013 and related cases, Review Petition (C) No. 2492 of 2013 and Curative Petition (C) No. 126 of 2014 in Hon’ble High Court of Delhi CWP No. 1535 of 2012 in PB CAT OA No. 655 of 2010 and tagged cases in Central Government SAG (S-29) Pensioners vs UoI for change of date of effect from 24 Sep 13 to 01 Jan 2006 for payment of pension and arrears.

Conclusion: CGDA needs to take into confidence Service HQ to ensure speedy implementation of OROP as assured by this Government as recent as 23 Jun 14, as reported by NDTV 24x7.

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