The One Rank One Pension (OROP) scheme was introduced in November 2015. The scheme was implemented from July 2014 onwards. The scheme has been revised for the third time according to a written reply by Sanjay Seth, Minister Of State (MoS) in the Ministry Of Defence.

The minister replied to a question by Lok Sabha member, Chamala Kiran Kumar Reddy on December 6, 2024. The minister said in his reply that the third revision came into effect on July 1, 2024.

“Government has made provisions for revision of One Rank One Pension (OROP) vide their letter dated 07.11.2015. Accordingly, a third revision of OROP has been carried out, with effect from 01.07.2024 vide the Ministry’s letter dated 10.07.2024. Arrears on account of these revisions have been paid,” Seth said.

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This is the third time the OROP revision has taken place. Seth highlighted key aspects of the third revision of the scheme such as:

• The minister highlighted that currently, there are 19.65 lakh (19,64,973) beneficiaries under the scheme, and the final implication of Rs 6703.24 crore per annum

• The minister added that no challenges have been faced in the disbursement of arrears and pensions under the scheme

•  Seth added that there are sufficient provisions in the budget to comply with the pension payment requirement under the OROP

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Why One Rank One Pension (OROP)

The OROP scheme allows a uniform pension for all armed forces personnel to retire at the same rank, and after the same number of work years, irrespective of their date of retirement. Before the implementation of the OROP, the pension was calculated on the basis of the retiree’s pay scale at the time of retirement. However, this would often create a difference in the amount of pension received by personnel retired before and after every pension commission’s recommendation.

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What are the Provisions Under OROP?

• According to the OROP provisions, the re-fixation of pension for defence personnel becomes due every five years since the scheme became effective (July 1, 2014)

• The pension is adjusted on the basis of the average of the minimum and the maximum pension of personnel retired in the previous year (2013) or the pension of the retirees at the time of the scheme’s inception, in the same rank and with the same length of service. Since the third revision to the scheme was made in 2024 the pension will be calculated for personnel retired in 2023

• Pension is protected for those getting more than the average pension

• The OROP benefits are passed on to the family pensioners. War widows and disabled pensioners are also covered under the provisions of the scheme

• As part of the scheme, any arrears which are due for the pensioner are paid within one financial year

• The demand for parity in terms of pension started the movement which culminated in the implementation of the OROP scheme.