Indian Military Veterans

UNDERSTANDING THE CIRCULAR 677 ON ONE RANK ONE PENSION (OROP) EFFECTIVE WEF 01.07.2024

The Ministry of Defence (MoD), Government of India, has released a new circular to clarify the One Rank One Pension (OROP) scheme. This circular 677 released by PCDA is meant for defence pensioners and provides guidelines for the revision of pensions starting from 01.07.2024. This article explains the contents of this circular in simple terms to help you understand how the new pension rules affect you or your family. Source: DESW

What is One Rank One Pension (OROP)?

The One Rank One Pension (OROP) scheme is a policy that ensures that defence pensioners with the same rank and years of service receive the same pension, no matter when they retired. Before OROP, pensioners who retired earlier used to get lower pensions than those who retired later because of changes in salary structures over time. OROP solves this issue by updating and equalizing pensions for all retirees of the same rank and service length.

Key Points from the Latest OROP Circular 677

When Does the New Pension Start:

The new pension revision will take effect from 01.07.2024. If there are any unpaid amounts (arrears) because of this revision, they will also be paid starting from that date.

Who Will Benefit from This:

The new OROP 3 rules apply to a large number of defence personnel. This includes:

• Commissioned Officers, Junior Commissioned Officers (JCOs), and Other Ranks (ORs) in the Army, Navy, and Air Force.
• Personnel from the Defence Security Corps (DSC) and Territorial Army.
• Family pensioners of retired, deceased, or invalided-out personnel.
• Basically, if you retired or your family member retired before 01.07.2024, you are likely covered under the OROP revision.

Who Will Not Benefit from This:

Not everyone is eligible for the OROP 3 revision. The following categories will not benefit:

• Pensioners from the UK, Hong Kong & Singapore Regiment Association (HKSRA), and King’s Commissioned Indian Officers (KCIO).
• Pensioners from the Pakistan or Burma Armies.
• Reservist Pensioners (those who were not in active service when they retired).
• Pensioners receiving Ex-Gratia payments (one-time financial assistance that is not considered a pension).
• Defence personnel who retired on or after 01.07.2014 and opted for premature retirement or retired on their request.

Pension Revision for Defence Security Corps (DSC) Personnel

• Personnel of the DSC who are receiving a single pension for both their Army and DSC service will have their pensions revised in line with Regular Army personnel of Group Y.
• However, JCOs and ORs in the DSC who are receiving a second pension due to their service in the DSC will have separate pension tables that show their revised rates.

Types of Pensions Covered Under OROP 3

The new OROP circular covers a wide variety of pension types, ensuring that different categories of defence personnel and their families benefit from the revision. These include:

• Service Pension/Retiring Pension: Pensions are provided to personnel upon completing their service.

• Disability Pension: Pensions provided to personnel who were medically discharged due to a service-related disability. Both the Service Element (basic pension) and the Disability Element (compensation for the disability) will be revised.

• War Injury Pension: This is for personnel who were injured during combat. Both the Service Element and the War Injury Element will be revised, with tables provided to ensure fairness in pension amounts.

• Family Pension:  Family members of deceased personnel will have their pensions revised as well. This includes:

• Ordinary Family Pension: Provided to family members of those who passed away after retirement.
• Special Family Pension: Given to families of those who passed away due to service-related reasons.
• Liberalized Family Pension: For families of personnel who died in combat or service.

Detailed Guidelines for Pension Revision

The revision of pensions under OROP follows specific rules, outlined in different tables included in the circular. Here’s how they work:

Rank and Qualifying Service

The revised pension for each individual is determined based on the rank they held and the years of service they completed. The tables attached to the circular help Pension Disbursing Authorities (PDAs) calculate the new pension amounts based on this information.

Protection of Existing Pension

If the revised pension, calculated as per the new OROP 3 rules, turns out to be less than the current pension, the pensioner will continue to receive their current (higher) pension. No pensioner will be at a disadvantage due to the revision.

Special Rules for Disability and War Injury Pensions

The Disability Element and War Injury Element of pensions will be revised based on the degree of disability. For those with 100% disability, the full revised pension will be provided, and for those with a lesser degree of disability, the pension will be reduced proportionally.

Special Rules for Senior Citizens (80 Years and Above)

For pensioners who are 80 years or older, the additional pension they receive due to their age will also be increased from 01.07.2024. This increase will happen either from the date the pensioner turns 80 or from 01.07.2024, whichever is later.

Role of Pension Disbursing Authorities (PDAs)

Pension Disbursing Authorities (PDAs), such as banks and other organizations responsible for issuing pensions, have been authorized to implement these new rules. They will revise pensions for the following categories based on the updated rates provided in the circular:

Disability Pension: Both the Service Element and the Disability Element will be revised according to the new tables.

War Injury Pension: The revised rates for the Service Element and War Injury Element will be applied based on the new guidelines.

Family Pension: PDAs will also revise Ordinary Family Pension, Special Family Pension, and Liberalized Family Pension as per the new rates in the tables.

Conclusion

The OROP 3 revision effective from 01.07.2024 is a significant step by the Government of India to ensure fairness in the pensions provided to retired defence personnel and their families. It ensures that all pensioners, regardless of when they retire, are treated equally in terms of their pension entitlements.

All defence pensioners and their families need to be aware of these changes. If you are eligible, make sure to check the pension tables and consult with the relevant authorities to understand how your pension will be revised. This revision reflects the government’s ongoing commitment to the welfare of those who have served the country in the armed forces.

Tables for Pension Revision

The circular includes a set of tables that show the revised pension rates for various ranks and categories. Below are some examples of the kinds of tables included:

Table 1-10: Revised rates of Service Pension and Service Element for All ranks.

Table 11-30: Revised rates of Ordinary Family Pension (enhanced and normal rates).

Table 31-50: Revised rates of Special Family Pension and Dependent Family Pension.

Table 51-86: Revised rates of Liberalized Family Pension and Dependent Pensions for children and parents.

Table 87-96: Revised rates of Disability Element and Impairment Relief for 100% disability.

Table 97-116: Revised rates of War Injury Element for 100% disability and discharge cases.

How to check the Tables (Table No 7)

1.  Identify the Rank: Find the rank (e.g., Sepoy, Naik, Havildar).
2. Check the Group: Determine the group (e.g., Group X, Group Y).
3. Locate the Service Length: Find the service length column (e.g., 15 years, 15.5 years).
4. Find the Pension Amount: Match the rank, group, and service length to get the pension amount.
5. Understand the Effective Date: Note the effective date (e.g., July 1, 2024).
6. Special Cases: Check for uniform rates for some ranks or honorary positions.

These tables are key to ensuring that each pensioner or family member receives the correct pension based on their rank and years of service. If you need help understanding the tables, you should reach out to your Pension Disbursing Authority (PDA) for guidance.

Click Here to Download OROP 3 : Table No 1

Click Here to Download OROP 3 : Table No 2

Click Here to Download OROP 3 : Table No 3

Click Here to Download OROP 3 : Table No 4

Click Here to Download OROP 3 : Table No 5

Click Here to Download OROP 3 : Table No 6

Click Here to Download OROP 3 : Table No 7

Click Here to Download OROP 3 : Table No 8

Click Here to Download OROP 3 : Table No 9

Click Here to Download OROP 3 : Table No 10