One Rank, One Pension (OROP) Scheme

Why in news?

• The Union Cabinet has approved a pending pension revision for pensioners from the armed forces and their families under the One Rank One Pension (OROP) scheme which has been delayed since July 2019.

About One Rank, One Pension (OROP) Scheme:

• OROP for Defence Forces Personnel implies that uniform pension be paid to Personnel retiring in the same rank with the same length of service, regardless of their retirement date.
• This will bridge the gap between the rates of pension of current and past pensioners at periodic intervals.
  • For example: an officer who has been in service for 15 years (from 1985 to 2000), and retired in 2000 would get the same pension as an officer who retired in 2010 and was in service from 1995 to 2010 (15 years).
  • Before OROP >> the prevailing system for calculating the personnel’s pension was based on the last salary drawn.
• OROP is implemented by Department of Ex-Servicemen Welfare, Ministry of Defence.

PRACTICE QUESTION

Which of the following statements are correct regarding ‘One Rank, One Pension (OROP)’ Scheme?

1. It will reduce the defense expenditure in India  

2. It is implemented by Ministry of Finance

Select the correct answer using the code given below:

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer