Latest news OROP -The three ranks of Subedar / MCPO/ WO, Lt and Capt will not get any benefit in OROP - II.

Indian Military Veterans

Dear Veterans,

Why the ranks of Subedar, Lt and Capt are not included in the table of Press Information Bureau (PIB), Delhi which released the OROP - II pensions of all those retired till Jun 2019.

Having asked me you have to have the patience to read this long reply.

Unfortunately explanations on Pensions or OROP are bound to be long and bit complicated. But if you read carefully, you will understand what I am trying to explain.

I hope you do.

Initially PIB showed two pension revisions i.e. w.e.f Jul 2019 and again from Jul 2021. Having realised their mistake that pension revision in OROP is made only once in five years i.e. OROP - I in Jul 2014, OROP - II w.e.f. Jul 2019 and OROP - III w.e.f. Jul 2024, PIB immediately removed pension revision w.e.f. Jul 2021 in their second bulletin issued on 24 Dec 2022.

Let me go back by two years.

I made a table of likely OROP - II pensions and likely arrears based on the data Air Mshl Sharad Y Savur, PVSM, AVSM,(Retd), former C-in-C obtained under RTI Act from Min of Def when he came to know that PCDA (Pensions) Prayagraj made a presentation on OROP - II  to Jt Secy of Min of Def (ESW) on 24 Apr 2019.

The data furnished by PCDA (P) Allahabad / Prayagraj in the presentation contained average pension of all ranks less Subedar, Lt and Capt.

The same three ranks are missing in the table of pensions which has now appeared in the bulletin of Press Information Bureau, Delhi.

Why does certain ranks do not figure in the table of PIB?

This is very difficult to answer unless you care to focus on what I am telling you now.

You have to understand the concept of OROP. It is basically working out average pension (Max +Min)/2  of those who retired in calendar year 2013 and their pensions are fixed w.e.f. Jul 2014. That is the pension for each rank and for each length of service every six months. To make you understand let me take the case of Havildar. Havildars / POs of Navy / Sgts of IAF retired in calendar year 2013. Someone would have drawn highest pension because he got promoted earlier than his coursemates or batchmates due to availability of vacancies in his trade (like in EME) and someone would have got promoted to the rank of Hav very late. The one who is promoted earlier would have got more number of increments hence his basic is also high. So his pension is maximum. Opposite is the case of Hav / PO / Sgt who got promoted very late and earned least number of increments and that why his pension is minimum in 2013. The average pension (=Maximum pension + Minimum Pension/2) is thus worked out for all ranks from Sepoys to Lt Gen (HAG +) for every six months of service till 33 years.

I will give one example of Havildar group Y with service of 22 years. The Average pension of Havs / POs / Sgt retired in calendar year 2013 is Rs 24,125 pm (as given in Circular 555 of PCDA (P) Allahabad / Prayagraj).

Those who retired with pension higher than Average of Havildar in 2013 will not be affected i.e. they will draw their pension as higher pension can not be reduced. But those Havs /POs /Sgts whose pension is lesser than Average will draw average pension. Say if one's pension is Rs 22,125 then his pension in OROP-I is hiked to Rs 24,125 pm. This way this Havildar is benefitted by Rs 2,000.

Here is the catch. The OROP - I is applicable to all those who retired till 30 Jun 2014. All those who retired from 01 Jul 2014 to 31 Dec 2015 will not get this benefit of getting average pension. They will get their pension which is 50% of last drawn emoluments.  Such pensioners will not get their pension hiked to average.

There are number of cases where those retired after Jul 2014 get lesser pension than those retired in OROP period i.e. till Jun 2014.

When you multiply lesser pension of those retired on or after Jul 2014 with fitment factor of 2.57 for pension w.e.f. Jan 2016, their pension will be lesser than OROP - I pensioners. This is an anomaly. This anomaly will continue till the average of pension of those retired in calendar year 2018 or 2024 is higher than pension being drawn.

I think you need an example to understand this difficult concept of OROP.

Let us take two Havildars. One is  Ram Singh retired in Jun 2014 and eligible for OROP - I  and second one is Hav  Krishna Reddy retired one month later in Jul 2014 and is not Eligible for OROP - I.

Hav Ram Singh retired in Jun 2014 hence gets benefit of OROP. His pension. was only Rs 22,145 but average being Rs 24,145 he got financial benefit of Rs 2,000.

Now take the case Hav Krishna Reddy who retired just after one month i.e. Jul 2014 and he is not eligible for OROP. His pension is only Rs 22,125 pm.

Now fixing pension w.e.f. Jan 2016.

Hav Ram Singh (retired in Jun 2014) and his Pension w.e.f Jan 2016 = Rs 24,125 x fitment factor of 2.57 = Rs 62,001.

Hav Krishna Reddy (retired in Jul 2014 not eligible for OROP - I = pension w.e.f. Jan 2016 = 22125 x 2.57 = Rs 56,861 (for retiring one month later or retired in Dec 2015) one gets lesser pension. This will continue till Jun 2019 when OROP - II is due.

If even in OROP - II if the average of Pension of Havildar Y is say Rs 56,000, then Havildars retired in the period Jul 2014 to Dec 2015 will not any benefit in OROP - II. Their pension being higher than Average in OROP- II will continue to get Rs 56,861 only.

This is exactly what happened in OROP - II w.e.f. Jul 2019.

The three ranks of Subedars / MCPO/ WO, Lt and Capts will not get any benefit in OROP - II. They have to wait till 8th CPC in Jan 2026 and hope the CPC recommends higher pension to them.

TSEWA projected this anomaly to justice L Narasimha Reddy, Chairman of OMJC. But his report is lying in Govt of India since 26 Oct 2016 un-actioned. AFT Kochi directed Ministry of Def to take decision one way or the other on the report of Justice L Narasimha Reddy within four months.

I hope my analysis is wrong and these three ranks of Subedars, Lts and Capts also get higher pension in OROP - II w.e.f. Jul 2019.

warm regards,

Brig CS Vidyasagar (Retd)