About 

• One Rank One Pension (OROP) is a pension scheme for military veterans launched in 2015 by the Ministry of Defence.
• The scheme addressed the long-standing disparity in pension benefits for ex-servicemen, in which the military personnel retiring in the same rank and with the same length of service should receive the same pension, regardless of their date of retirement.

Background

• Before implementation of OROP, the computation of pension was linked to the pay drawn by the personnel in a particular pay scale/ pay band at the time of his/her retirement. 
• Pay scales are revised to the higher side generally on the recommendation of Pay Commissions. 
• As such, the personnel retiring after the revision of the pay scales got more pension than those who had already retired. Hence, the gap remained in the pension of the past and present retirees.

Key features of the OROP Scheme

The policy’s primary elements include:

• Re-fixation of Pensions: The pension of all past pensioners is re-fixed based on the pensions of personnel who retired in 2013, starting from July 1, 2014. This created a new benchmark for pensions, with all retirees getting equal benefits for their service.

• Periodic Revision: The pension is to be re-fixed every five years, ensuring that it continues to reflect changes in the pay and pension structure.

• Arrears Payments: Arrears of pension were to be paid in equal half-yearly installments.

• Safeguarding above-Average Pension: For personnel drawing pensions higher than the average, their pensions are protected, ensuring that they do not lose out on the benefits of OROP.

1. Inclusive of all Ex-Servicemen: The order covered all personnel who retired up to June 30, 2014, and provided a robust framework for revising pensions for all ranks, including family pensioners.

Why in News?

• One Rank One Pension (OROP) marks the completion of  ten years since its inception on Nov, 7, 2015