Minutes of First Meeting of the Working Group for Implementation of
One Rank One Pension
1. In order to discuss the modalities of implementation of One Rank One
Pension (OROP), first meeting of Working Group constituted as per MoD’s
decision dated 24th April, 2014 was held on 2nd May
2014 in the conference hall of CGDA’s office. The meeting was chaired by CGDA.
2. Opening the discussion, CGDA welcomed the members and intimated
the mandate given to the working group as per MoD ID dated 24th April
2014. CGDA also stated that for implementation of OROP, the solution be
practicable and implementable within the reasonable time frame.
3. Pr, CDA (P) Allahabad made a presentation amplifying the
definition of OROP and key terms used in the same. Pr. CDA (P) presented two
options for consideration of the working group for implementation of OROP. Copy
of presentation made by Pr. CDA (P) is attached herewith. After presenting the
options, it was stated that working group may make a consensus on basic
parameters viz. cut off date, definition of current and past pensioners, future
enhancements etc to finalise the proposal in real terms. Pr. CDA (P) further
opined that Option – I which provides revision of pension based on arithmetical
mean rates of pension of Post-2006 pensioners having equal
qualifying service, is practicable one and could be expeditiously implemented
by Pension Disbursing agencies in a reasonable time frame.
4. Reps of Services made following points for consideration of the
working group:-
(a) Enhancement
taken place during service of a personnel has been average down in Option –I.
(b) Cut-off date
shall be taken as 1.4.2014 and pensioners retired prior to this date shall be
treated as past pensioners.
(c) As future
enhancements have to be automatically passed on to the pensioners, Service
proposal for annual revision of OROP tables could also be considered.
(d) Option
projected by Pr. CDA (P) will just bridge the gap and will not establish OROP.
(e) Benefits
shall also be considered for JCO/OR.
5. After detailed discussion, the following points were deliberated
upon: -
(a) As mandate
given to the working group is to establish parity in pensions, establishing pay
parity is beyond its purview.
(b) In his
Interim Budget speech for the years 2014-13 (attached as Annexure -2), the
Hon’ble FM announced that Government has accepted the principle of OROP for
Defence Forces and thus decided to close the gap in pensions between Pre-2006
retirees and Post-2006 retirees. He also specifically mentioned that as a
result of changes in Pension Rules applicable to Defence Forces notified on
three occasions in 2006, 2010 & 2013, the gap between Pre-2006 retirees and
Post-2006 retirees has been closed in ranks – Havildar, Nb Subedar, Subedar and
Subedar Major. The gap that exists in the ranks of sepoy, Naik, and in the
ranks of Major & above is now proposed to be bridged by walking “the last
mile and close the gap for all retirees in all ranks.” Based on this inference
is drawn that Pre-2006 retirees shall be considered Past
retirees. Accordingly, those who have travelled in the regime of 6th CPC
and retired thereafter shall be treated as Current Retirees.
(c) Date of
implementation of new recommendations shall be from 1.4.2014.
(d) Annual
incremental increase in pension as proposed by Services would lead to change in
existing pension structure which is not in the domain of working group and also
not practical one. Hence, further enhancements in pension shall be considered
based on Seventh Pay Commission recommendations.
6. CGDA stressed on the need to understand the key terms used in
the definition of OROP provided by MoD through the minutes of the meeting held
on 26.2.2014, with greater clarity so as to arrive at the best possible
solution. Reps of Services concluded that for better appreciation of the two
options presented by Pr. CDA (P) during the meeting, they need a thorough
examination and they will revert on the same. However, it was suggested to have
formal discussion between reps of Services and reps of CGDA/Pr. CDA (P) to
discuss some points of doubt. Keeping in view the time line given to the
working group CGDA advised to have the discussions on the same day and views of
Services shall be given to CGDA office positively by 5th May
2014 to examine the same.
7. Meeting ended with a vote of thanks to the chair.
Signed by all participants
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Appendix –I
Points Of Discussion Held Between Reps Of Services And Reps Of CGDA,
PCDA (P) On 2nd May 2014
The discussion was chaired by PCDA (P) Allahabad.
1. Reps of Services intimated that they have gone through option-I
and have the following points for consideration/clarification:-
(i) Anomaly in rated
for pension for higher qualifying service vis-à-vis lower qualifying service in
same rank shall be considered for removal.
(ii) Anomaly in rates
of pension for higher rank vis-à-vis lower rank in same qualifying service
shall also be considered for removal.
(iii) Methodology may
be drawn for arriving at revised pension where there is no retiree available
for any length of qualifying service.
(iv) Tables for rates
of pension shall be prepared for less than 20/15 years of qualifying
service.
(v) Same tables shall
be prepared for Col (TS) and Col (S).
(vi) Qualifying
service shall be rounded off to one year due to change of increment policy in
July each year for serving personnel. It will not make any change in the
financial effect.
2. After detailed discussion, issues at (i) & (ii) above were
agreed to in principle subject to finding out a suitable method for achieving
this. PCDA (P) suggested that further examination will be required to arrive at
any decision for issues (iii), (iv) & (v) above. There was no consensus for
the issues as at (vi) above.
3. Reps of Services stated that they had not examined option-II
presented to the working group – and their detailed comments will be provided
to CGDA office as early as possible.
Signatures of participants
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Record of discussions of Second meeting of the Working Group for
Implementation of One Rank One Pension
1. The second meeting of the Working Group constituted as per MoD’s
decision dated 24th April 2014 was held on 8th May
2014 in the conference hall of CGDA’s office. The meeting was chaired by Addl
CGDA.
2. Opening the discussion, Addl CGDA welcomed the members of the
Working Group and desired feedback from the Services on the proposals of Pr.
CDA (P) presented during the first meeting of Working Group held on 2nd May
2014.
3. Reps of Services put forth following points for clarification by
members of the working group:-
a) From where the
Terms of references of the Working Group have been taken
b) The aim is to
grant OROP or is it one time increase to bridge the gap.
4. Reps of Services further submitted that Terms of Reference
should be taken from the suggestions/recommendations made in the Report of
Rajya Sabha Committee on Petitions dated 19.12.2011 and subsequently
re-iterated in the definition approved by Hon’ble RM and circulated by Ministry
vide their ID dated 26.2.2014. Speech of Hon’ble FM is a reference point and
not Act of parliament ad hence, it should be viewed in that light.
5. Pr CDA (P) stated that the Terms of Reference for the Working
Group has been clearly spelt out by Ministry of Defence in order dated
24.4.2014 and there is no need for further elucidation. Pr. CDA (P) also
intimated that the key terms have been taken in his last presentation held on 2nd May
2014 read with Interim Budget Speech 2014-15 of Hon’ble Finance Minister. The
later one is considered to elaborate the key terms which are silent in the
definition circulated by MoD vide their ID dated 26.2.2014.
6. After discussion, it was considered that the points of
disagreements may be recorded and referred to the Ministry. These points of
disagreement recorded during the meeting are enclosed as Annx-2 to these
minutes of meeting.
7. Meeting ended with a vote of thanks to the chair.
Signature of participants
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Points Of Disagreement In The Second Meeting Of Working Group On
OROP Held On 8.5.2014 In The Office Of CGDA
Points of Differences: -
1. Definition of OROP
Definition of OROP should be drawn from the Hon’ble FM Interim Budget
2014-15 speech vide which the gap between pre-2006 retirees and post-2006
retirees for all ranks needs to be closed.
As per Services, the definition of OROP is given by the Rajya Sabha
Committee on Petitions presented on 19.12.20111 and re-iterated by the Hon’ble
RM in his directions given in meeting held on 26.2.2014, which states that “One
Rank One Pension implies that uniform pension be paid to the Armed Forces
personnel retiring in the same rank with same length of service, irrespective
of their date of retirement and any future enhancements in the rates of pension
to be automatically passed on to the past pensioners.” Services also feel that
essence of the Hon’ble FM speech in parliament is also the same. However,
details emerge only from the OROP definition give above which has not cut-off
date like 1.1.2006 as brought out in Para 3 of draft Government letter
submitted by the Services. In other words, in the opinion of the Services there
is no cut off date like 1.1.2006.
2. Interpretation of the term “Uniform Pension” in the OROP
definition
Uniform pension means pension under a uniform pay/pension structure i.e.
under same pay scales with same qualifying service & pension calculation
formula. It need not necessarily lead to same pension for all retiree (past
& present) in the same rank and same qualifying service because of the
annual increments being given to the serving personnel.
As per Services, uniform pension means ( as in the term
OROP)/same/equal/identical pension amount for Armed Forces personnel retiring
in the same rank and same length of service i.e. qualifying service ( as
defined in Pension Regulations for the Army 2008) as per para 3 of the report
of the Rajya Sabha Committee on Petitions presented on 19.12.2011. There is no
intention of introducing annual increments for pensioners.
3. Interpretation of the term “Length of Service” in the OROP
definition
The term “Length of Service” in the OROP definition (i.e. same pension
for same rank for same length of service) is to be treated as number of years
of service put in by the pensioner in the rank last held. Alternately, if total
qualifying service is to be treated for the purpose of OROP then qualitative
aspects relating to length of service in terms of numbers of years rendered in
each rank the service person has served before the retirement in the rank last
held, need to be taken cognisance of. While this will be difficult to implement
in practice, appropriate mechanism which is workable and implementable, can be
worked out to implement the spirit of OROP so as to bridge the gap in pension
of pre & post 2006 pensioners.
Whereas Services feel that length of service and qualifying service are
synonymous and any other interpretation gives rise to certain anomalies viz.
reduction or no benefits in pension on promotion (one illustration was given).
Services interpretation is based on Rule 19 of Pension Regulations 2008 as also
the precedence of MoD letter No. 1(11)/2012-D (Pen/Policy) dated 17.1.2013
wherein qualifying service and length of service are synonymous for determining
pension. The alternative interpretation of “Length of service” being the
service only in the rank last held is not only violative of existing
regulations but also near impossible to implement with existing format of PPOs
only indicating the qualifying service.
4. Bridging the gap in the pension amount between current &
past pensioner vis-à-vis extending the benefit of changes of improved service
conditions of serving pensioners to past pensioners
It is a considered that a method has to be worked out with a view to
bridge the gap in pension amount between pre & post 2006 pensioners without
extending the benefits of improved service conditions (viz. method of faster
promotion applicable to the current personnel) to past pensioners.
Services view is that OROP is not only bridging the gap but removing the
gap with a view of granting same/equal pension to all retirees with same rank
and same qualifying service with future enhancements to be passed to the past
pensioners automatically as enunciated in the definition of OROP. It is also
brought out that benefit of MSP and Grade Pay for calculation of pension has
already been extended to past pensioners vide MoD letter No. 1(11)/2012-D
(Pen/Policy) dated 17.1.2013. Similarly, other future benefits, if any, should
be passed on to the past pensioners.
5. Modalities for automatically passing of the benefit of future
enhancement in rate of pension
As and when there is enhancement/changes in the basic rate of pension
(either based on pay commission recommendations or Government policy), the
benefit is to be passed on to past pensioners.
The Services endorse the above with the qualification that there will be
a need for periodic review of OROP tables, say on a yearly basis wherein a few
anomalies which may have emerged (junior drawing more pension than senior) will
require to be addressed.
Signatures of Members
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Record Of Discussions Of Third Meeting
Of The Working Group For
Implementation Of One Rank One Pension
1. In order to decide the modalities for implementation of OROP, the
third meeting of Working Group constituted as per MoD’s decision dated 24th April
2014 was held on 9th May 2014 in the conference hall of CGDA’s
office. The meeting was chaired by CGDA.
2. Opening the discussion, CGDA welcomed the members of the Working
Group. Addl CGDA briefed the development taken place in the last two meetings
and sought views of reps of the Services on the average method proposed by PCDA
(P) Allahabad. Reps of the Services stated that the period of span taken for
calculating average is too big (1.1.2006 to 31.03.2014) and the Services felt
that the period be restricted to one year i.e July 13 to March 14. Reps of
Services further re-iterated that instead f taking average pension, maximum
value of pension for each qualifying service should be taken for making OROP
tables.
3. Rep of MoD made a point that Maximum of Fitment table as done in
the case of JCO/OR can be taken. Reps of Services were not agreeable on the
proposal ad stated that rate of pension being drawn by a current pensioner (viz
post 1.7.2013) should be allowed to the past pensioners in order to implement
OROP in the true sense. On the issue of referring Report of Rajya Sabha
Committee of Petition for determining terms of reference, JS (E) pointed out
that there are large number of Parliament Committees whose
findings/recommendations may or may not be accepted by the Government. As such,
Terms of Reference derived from the FM speech made in Parliament or as per the
definition provided by RM.
4. Services also put forth s separate Model of calculation of
pension which was a modification to the Model II presented by the PCDA (P)
Allahabad vide his presentation on 2.5.2014. Reps of Services also agreed that
extreme deviations in a range could be excluded to avoid undue/unintended
benefits across the board.
5. CGDA suggested that Services may provide a write up on their
proposal with assumptions for examination. Addl CGDA also stated that Pr CDA
(P)’s option-I may also be examined by the Services by considering mean or mode
value in last one year data starting from 1st July 2013 to 31st March
2014. It was agreed upon that all the methods suggested to the Working
Committee should be examined in detail with reference to the live data of three
Services.
6. Meeting ended with a vote of thanks to the chair.
Signatures of participants
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Record Of Discussion Of Fourth Meeting
Of The Working Group For
Implementation Of One Rank One Pension
1. The fourth meeting of the Working Group constituted as per MoD’s
decision dated 24th April 2014 was held on 15th of
May 2014 in the conference hall of CGDA’s office. The meeting was chaired by
Addl CGDA and list of participants is attached as Annx-I to this minutes.
2. Opening the discussion, Addl CGDA welcome members and referred
the discussion held on 9th May 2014 in which the Services
wanted to examine a revised proposal based on Mean, Mode, and Maximum value
(after excluding extreme values) by taking data of last one year retirees
starting from 1st July 2013 to 31st March 2014.
Addl CGDA stated that the new methods suggested by the Services on 12th May
2014 have been gone thorough and it is found that both the methods have some
reservations as already pointed out on the Services initial proposal given to
the working group by Ministry. The main issues highlighted were annual revision
of pension, allowing maximum pension of post 1.7.2013 retiree, extending
benefits of current promotion/service conditions to the past retirees, current
& past pensioners etc.
3. Reps of Services made the following points for consideration of
the working group: -
a) Pension data for
last one year as agreed to in last meeting was yet to be made available.
b) Instead of
taking maximum value amongst mean, median and mode, the Max function should be
taken.
c) The values of
OROP tables based on maximum pension after removing extreme points shall
approximately be same as proposed by Pr CDA (P) to determine pension on mean
value. Fr this, different pension tables could be issued for different entry
grades in JCO/OR as well as Officers.
d) On adopting
ay other method for implementation of OROP, pension structure anomalies will
continue. If maximum pension is taken, it will be conforming to the definition
of OROP and would not generate grievances and litigations by Ex-Servicemen post
implementation.
e) The data
available for the Air Force (all ranks) pensioners retired between 1.7.2013 to
31.3.2014 was made available to the Working Group for working their proposals
across the three Services.
f) As far as the
issue of annual revision of pension is concerned, the Services emphasised that
there is no intent to upgrade pensions annually. Only an annual review of OROP
tables is envisaged to take care of any anomalies which may have crept in. It
was also clarified that once steady state is achieved, there will be no
requirement of annual review of OROP tables.
g) As far as
extending benefits of current promotions/service conditions to the past
retirees is concerned, the Services proposal does not envisage notional
promotion to past retirees for the purpose of OROP.
4. Reps of Ministry also made the following points for
consideration of the working group: -
i) Removal of 33
year conditionality for pre-2006 Defence pension is sub-judice and should not
be considered by the Working Group.
ii) Post-2006
pensioners could not be equated with current retirees as benefit of OROP has to
be considered only for pre-2006 pensioners.
iii) As giving
rates of pension maximum or otherwise has to be decided by Ministry of Finance,
financial implication for all possible proposals should also be worked out.
5. After detailed discussion, it was decided that Pr CDA (P) may
check the difference in rates of pension working out revised pension on mean,
median, mode and max function along with financial implication in each
scenario. Pr CDA (P) may also provide data of last one year retirees of Army
pensioners to reps of Services for their analysis.
6. Meeting ended with a vote of thanks to the chair.
Signatures of participants
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