One Rank One Pension’ Explained: Latest News In Last 24 Hours

(OROP) One Rank One Pension Arrears – After Defence Ministry Cites Difficulty in Clearing Rs. 28,000 Crores Dues in Solo Go, Supreme Court Extend Timeline. 20 March 2023.

Considering the financial difficulties cited by the central government in paying the pension arrears of retired defense personnel under the (OROP) One Rank One Pension scheme in a single go. The supreme court on Monday allowed the center to clear the dues in a staggered manner. A bench comprising chief justice of India DY CHANDRACHUD, Justice PS NARASIMHA, and Justice JB PARDIWALA was hearing.

Defence Ministry Can’t Take Law in its Hands – Supreme Court Warns Centre Over OROP Pension Arrears – 13 March 2023.

The Supreme Court on Monday warned the Ministry of Defence against -taking the law into its own hands- Concerning the disbursement of arrears to eligible pensioners of the armed forces under the (OROP) One Rank One Pension Scheme. The bench comprises CJI DY Chandra and Justice PS Narasimha. And JB Pardiwala also directs the ministry to provide a note concerning.

SC (Supreme Court) Gives Centre Till March to Clear Arrears: A SC bench of Chief Justice DY Chandrachud and Justice PS Narasimha directed the centre to pay pension arrears to qualified pensioners of the Indian military. Under the One Rank One Pension (OROP) scheme, by using 15 March 2023.

What does the order say?

The order, which came on Monday, nine January. Directed the Central Government to conform with the apex court docket’s earlier order directing them to pay pension arrears beneath OROP to numerous lakh eligible pensioners of the defense force.

The petitioner’s side

The petitioner's side

According to Senior Advocate Huzefa Ahmadi, performing for the petitioners. Over four lakh pensioners of the armed forces have already died while anticipating their arrears under the scheme.

What’s Happened in the Case So Far?

What’s Happened in the Case So Far_

Moreover, In March 2022, the Supreme Court upheld the Centre’s OROP scheme for the defense force. Declaring that there has been no constitutional illness in it. The courtroom had also said that re-adjusted pensions underneath OROP would ought to be paid with impact from 1 July, 2019.

What is One Rank One Pension? One Rank One Pension: Latest News In Last 24 Hours

Moreover, Under the One Rank One Pension scheme or OROP scheme. Uniform pension is to be paid to defense force personnel retiring at the same rank with the equal length of service. Regardless of after they completed their provider or retired.

What is One Rank One Pension_ One Rank One Pension_ Latest News In Last 24 Hours

If that confused you, let’s simplify it a bit.

  • Imagine ‘A’ serves in the army for 15 years from 1975 to 1990 and retires as a corporal. According to the antique pension scheme. A’s pension might be based totally completely on their ultimate drawn earnings.
  • However, if ‘B’ serves in the navy for 10 years from 2010 to 2025 and retires as a corporal. Their pension could additionally be dependent on their closing drawn revenue.
  • But, B could be getting a miles larger pension than. A certainly due to the growing charges and standards of dwelling, and concurrent increases in salaries.
  • OROP objectives to rectify this hassle with the aid of giving all retired armed forces personnel who retired on the same rank with the identical years of provider. A uniform pension, no matter once they served and retired.

What’s Happened in the Case So Far?

In March 2022, the (SC) Supreme Court upheld the Centre’s OROP scheme for the defense force. Declaring that there has been no constitutional infirmity in it. The courtroom had also stated that re-adjusted pensions beneath OROP could have to be paid with impact from 1 July, 2019.

While ruling on OROP’s soundness in March 2022, the apex court had stated. Such a decision lies within the ambit of the coverage-making powers of the government. We do no longer discover any constitutional illness on the OROP principle and the notification dated November 7, 2015.”

The Court had given the Centre three months to pay the arrears, and in September 2022. The Centre had asked for every other three months to comply with thru with the order.

What’s Happened in the Case So Far?

The state’s competition: On, 9 January, 2023, speaking for the Central Government, Attorney General R Venkataramani stated that the Centre had received facts from 25 lakh militia pensioners and that the information became currently with the finance money owed of the Defence Ministry for very last vetting.

Why the extension? The bench, at the same time as granting time till March 2023 to complete the fee of arrears stated, “Mr N Venkataramani, Attorney General for India states that the tabulation for nearly 25 lakh defence pensioners has been completed with the aid of the Controller General of Defence Accounts (CGDA) , Allahabad. The tabulation shall now be processed via the Controller of Defence Accounts (CDA) and could be taken into consideration through the Ministry of Defence.”

On March 16th 2022, the SC upheld the OROP policy as proposed by the Union Government.

On March 16th 2022, a Bench comprising Justices D.Y. Chandrachud and Surya Kant upheld the ‘One Rank One Pension’ (OROP) policy as proposed by the Union Government.

What is OROP? One Rank One Pension: Latest News In Last 24 Hours

One Rank One Pension’ (OROP) is a system of paying uniform pensions to armed forces servicemen retiring with the same rank and years of service, regardless of their date of retirement. The OROP policy has been a continuous demand from army officers and veterans since 1973.

When the policy was finally passed in November 2015, army officers and veterans objected. They claimed that the 2015 OROP policy differed from the original promise based on the Koshyari Committee report. In the 2015 policy, enhancements in pension were not ‘automatically’ passed on to past pensioners.

One Rank One Pension: Latest News In Last 24 Hours

As per the 2015 policy, servicemen who retired prior January 1st 2014 would be entitled to pension on the basis of the average of the maximum and minimum salary drawn for their rank in 2013. Servicemen who retired after January 1st 2014 would receive pension based on their last drawn pay. The rates of pension would be revised every five years, rather than automatically, with the first revision due in 2019.

They objected to the creation of two classes of pensioners earning different rates of pension despite having retired at the same rank and having served for the same amount of time.

The Issue

One Rank One Pension: Latest News In Last 24 Hours: The petitioners claimed that the 2015 policy was arbitrary and discriminatory under Articles 14 and 21—it created two separate classes of retirees having the same rank and years of service.

Further, the petitioners claimed that the Union government reneged on their OROP promise by not adhering to the Koshyari Committee report.

Why it Matters

OROP addresses the generational difference in pensions received by different defence personnel. The decision determines how India’s 26 lakh defence pensioners will be affected by the 2015 OROP policy.

The Union government is left with the arduous task of choosing between the people and the purse—placating the retired servicemen or dealing with an additional Rs. 1.45 lakh crore bill.

The Challenge – One Rank One Pension: Latest News In Last 24 Hours

Ex-servicemen challenged the OROP policy at the Supreme Court on the grounds that the policy was arbitrary, discriminatory, and violated the understanding of OROP as outlined in the Koshyari Committee Report.

The Court dealt with two questions:

Is the Union’s 2015 OROP policy arbitrary and discriminatory?

Was the Union’s 2015 OROP scheme contrary to the original policy decision of the Government?

What did the Court say? One Rank One Pension: Latest News In Last 24 Hours

The Supreme Court held that the policy was not discriminatory. The same definition of OROP was applicable to all pensioners irrespective of their date of retirement.

All pensioners are subjected to the same periodic review—no separate category was made for automatic review.

Additionally. The decision to use the average of the maximum and minimum salary drawn for the rank in 2013 is a policy decision. As such, the Court does not have the jurisdiction to interfere with the decision.

The Court also thought that there was no legal mandate entitling pensioners holding the same rank to the same amount of pension.

The Bottom Line

One Rank One Pension: Latest News In Last 24 Hours: The Supreme Court upheld the Ministry of Defence’s November 2015 communication. The 2015 policy could not be struck down merely because it violated the ‘original understanding’ of the policy. The makers of a policy are at liberty to determine its implementation.

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