Defence ministry seeks more funds post-OROP

In the wake of the announcement on the implementation of the 'One Rank One Pension' (OROP) scheme for ex-servicemen, the defence ministry has sought additional budgetary allocation of over Rs.5,000 crore for the current fiscal.

According to the Supplementary Demands for Grants, tabled by the government in parliament on Friday, the defence ministry sought Rs.5,735.74 crore in addition to its budget "for meeting expenditure towards increased rate of relief on pension and growth in pension".

The government announced the OROP scheme on September 5, following agitation and indefinite fast by ex-servicemen at the Jantar Mantar here. A notification was issued on November 7.

The defence ministry said the pension of earlier retirees would be re-fixed on the basis of those who retired in 2013 and the benefit would be given with effect from July 1, 2014.

The notification said pension will be re-fixed for all pensioners on the basis of the average of minimum and maximum pension of personnel retiring in 2013 in the same rank and with the same length of service. Pension for those drawing above the average shall be protected.

Arrears will be paid in four equal half-yearly instalments. However, for all family pensioners, including those in receipt of special or liberalised family pension, and gallantry award winners shall be paid arrears in one instalment.

The pension would be revised every five years.

The veterans however rejected this scheme, calling it 'one rank five pension' and continue to agitate.