OROP · pension

Issues Related To OROP And 7 CPC

With the filing of a petition in the Hon’ble Supreme Court on OROP, even as the one man judicial commission appointed to resolve anomalies is currently processing representations on the subject, there is even less clarity now as to what would be the final outcome.

Some weeks back, similar issues had been represented to the commission, as reported in the media.

Though what exactly is involved in the case in the Hon’ble Supreme Court, is not yet public knowledge. But going by what are being termed as “core anomalies”, some ideas can be formed as tabulated below :

Issues Related To OROP That Are Perceived To Have Been
Raised By ESM Bodies

Impressions

Equalization of pension every year instead of every five years.

·       Data has not been shared how this will impact pensions.   Therefore, it can only be surmised that this could have a bearing as without an actual review there is no 100% sure way of knowing that the minimum and maximum pensions in the year after base year would be at the same level. What if a person with the same service and rank, drawing a lot higher basic pay, had not retired in 2013 causing his pension not being considered in calculating OROP pensions, and another person with same rank/service retiring in 2014 had a much higher basic pay, resulting in a higher pension for the same rank/service?

 

·        As OROP introduced in 2014 will be effective only till 31 December 2015, the 7 CPC Matrix coming into effect from 01 Jan 2016, would there still be a requirement of an annual review thereafter as the matrix, being increment based, would automatically ensure, for both civilians and armed-forces pensioners, equal pension based on increments earned by them? There would be no requirement of getting data of maximum and minimum pensions annually. The underlying logic behind this was discussed in this blog post

 

·     But there is that all important issue of fixing the “index” for older (pre 2006) veterans in the matrix that can’t be ignored as explained here. Their index number in the 7 CPC matrix would have to be based not on the increments they had earned in the pay-scale in which they had retired before 2006 but would have to be based on the number of increments a current pensioner with the same rank and equal service would have earned in his matrix “level”. Otherwise, OROP would not apply.

 

·       There is the additional issue that if current pensioners with equal service automatically migrate to a higher matrix “level” on time-bound basis, then the older pensioners’ pension would need to be fixed in the higher “level” with appropriate index number as applicable to a current pensioner with equal service. An example is pensions of older Maj pensioners with more than 20 years of service requiring fixation in “level 12A” of 7 CPC matrix instead of “level 11” and at an index number applicable to a current Lt Col pensioner with equal service.

 

·       As mentioned previously in this comment, periodic reviews could still be necessary after 01 Jan 2016, but may not be required annually if the fixation of “index” number in the matrix is first rendered anomaly-free, as mentioned above.

Fixation of pension at top of the bracket instead of the average.

·        This would seem based on how OROP was originally defined. Fixing OROP pensions at the average would mean that those already drawing higher than “average” pensions would continue to do so, resulting in different amounts of pension for the same rank and service. But what needs to be clarified is what is meant by “at top of the bracket”. Bracket of what?

 

·       Since the Govt letters refer to “average of minimum and maximum pensions of personnel retired in 2013”, we can assume the demand is for fixation at “maximum pension” of personnel retired in 2013, or, as the subsequent point requires, “maximum pension” of personnel retired in fin year 2013-14.

 

·       The real issue is, have the OROP tables actually been based on “average of minimum and maximum pensions of personnel retired in 2013”? If some extrapolations have been used, what is the basis for those? How, for instance, has the OROP pension of a Major with 20 years of service been calculated considering no officer with 20 years of service would have retired in 2013 as “Major”. They would all have retired as Lt Col, a rank given on time-bound basis. It may be in interest of all veterans to have this line of thought included in any move, legal or otherwise, to rectify anomalies in OROP and also to ensure these do not recur when recommendations of 7 CPC are harmonized with the concept of OROP.

 

Implementing it from April 1, 2014 instead of July 1, 2014.

     As the outgoing UPA Government had announced OROP with effect from 01 April 2014, ESM bodies appear to reason that the Government of India is “Government”. The ESM associations’ point seems to be that with a different political party now in Government, should veterans be deprived of their OROP entitlements for the period 01 April 2014 to 30 June 2014?

 

Taking financial year 2013-14 as base year for calculation instead of average of calendar year 2013.

·       This appears logical from point of view of ESM associations as the basis of “calendar year 2013” does not include the maximum and minimum pensions for the period January 2014 to March 2004. The same question mark, as in the case of “annual review vs five years review” would apply here as well. What if the highest pension in the period January 2014 to March 2014 was higher than the one in calendar year 2013?

 

·       This is also in-line with the related demand for OROP to be implemented from 01 April 2014 and not July 2014. In this manner, the average pension of a “rank-qualifying service” combination (or the maximum pension for a “rank-qualifying service” combination, as ESM seem to want) of the preceding financial year would be considered for OROP to be implemented from the next financial year.

 

 

Advertisements

7 thoughts on “Issues Related To OROP And 7 CPC

  1. DEAR Sivadasan PV,

    Your querry and keenness to know the pension is understood. The 7th CPC with regard to Army, Navy and Air Force has not been published yet. Let us wait and watch. Regards

    Like

  2. 1. OROP : Basic pay of person serving above 33 yrs(in my case 38 + yrs) is fixed at par with a person having served for 33yrs & below, whereas provision exits for one more slab ?
    2. What will be fate of remaining instalments of arrears, as VII CPC will be implemented.
    3. Endorsement of DA due on 1st Jul 16 .

    Like

    1. Hi.

      1. OROP has been fixed, or so they say, based on average of min and max pension of a person retiring in 2013 with same rank and equal service. The actual fixation was the subject of discussions and representations to the One man Judicial Committee. The basis of fixing your OROP, if in doubt, could be raised. A RTI has been launched on the subject. Please click on this link to access information.

      2. The arrears appear to be getting credited as scheduled. Check your pension account statement.

      3. DA will get added as per the normal time-frame. You can check with your PDA.

      Regards.

      Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s