ALLOCATION FOR THE FINANCIAL YEAR 2014-15 • Extracts of Vote on Account speech by Finance Minister “I am happy to announce that Govt has accepted the principle of OROP for the Defence Forces. This decision will be implemented prospectively from the FY 2014-15.The requirement for 2014-15 is estimated at Rs 500 Crores and as an earnest of the UPA Govt commitment, I propose to transfer a sum of Rs 500 Crores to the Defence Pensioner Account in the current FY”.
Principle : OROP • Two military personnel in same rank and equal length of service should get same pension irrespective of date of retirement. • Any future enhancement in the rates of pension be automatically passed on to the past pensioners.
DISPARITY DUE TO NFU LT GEN AS HAG SCALE 32 Yrs 36 Yrs 0.2 % 30 Yrs GP ₹ 10,000 JS MAJ GEN 22 Yrs 0.4 % 32 Yrs 3 % 26 Yrs GP ₹ 8,900 BRIG 20 Yrs GP ₹ 8,700 DIR COL 15 Yrs 16 Yrs 26 Yrs 8.7 % LT COL GP ₹ 8,000 14 Yrs 14 Yrs 14 Yrs GP ₹ 6600 MAJ 16 Yrs 22 Yrs GP ‘A’ , BRO & MES IAS ARMED FORCES
RecommendationS • A composite team of representatives from CGDA, MoD Fin, DESW and Armed Forces be constituted for preparation of implementation orders for OROP. • Implementation orders for OROP need to be issued by 15 Mar 14 to enable disbursement of pension at new scale wef 01 Apr 14. • Status Equivalence and Core Anomalies. • Core anomalies of VI CPC considered by the Committee of Secretaries in Jul 12 and status equivalence issues ordered vide PMO Directive of Dec 2008 • These issues included as preamble to draft ToR be resolved expeditiously.