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Government Distributes Rs. 42,700 Crore Under OROP Scheme

The central government has sanctioned an impressive sum of over Rs. 42,700 crore to 20.6 lakh retired defence personnel. This payment was enacted under the ‘One Rank One Pension’ (OROP) scheme, which publicly announced 5 years prior in 2015. The scheme endeavours to provide equality among military retirees through standardised pension payments, regardless of retirement dates.

Understanding One Rank One Pension (OROP)

OROP is a specific plan that guarantees the same amount of pension to military officials who have served in the same rank and for the same duration, regardless of when they retired. This uniformity ensures that all ex-servicemen of the same rank and service tenure receive equal pensions.

The previous pension system saw payments advised by the Pay Commission at the time of a serviceman’s retirement. However, the introduction of OROP sought to nullify these disparities caused by varying pay commission recommendations over the years.

The Beneficiaries: Spotlight on Uttar Pradesh and Punjab

Under the OROP scheme, certain states have seen more beneficiaries than others. Notably, Uttar Pradesh and Punjab have recorded the highest number of beneficiaries. The reason for this trend could be attributed to the high volume of individuals from these regions serving in the military.

However, it’s important to note that the OROP scheme covers all Armed Forces Personnel who had retired until the 30th June 2014. This cutoff aims to ensure that the majority of recent retirees also benefit from the uniformity of pension enforcement.

Implementation of OROP:

The OROP scheme was not enacted without careful deliberation. Its implementation is deeply rooted in the recommendation of the Koshiyari committee.

This committee, comprised of a 10-member, all-party parliamentary panel, was formed under the chairmanship of Bhagat Singh Koshiyari. Tasked with probing the feasibility and impact of implementing such a scheme, they provided key insights and suggestions which ultimately saw OROP being implemented.

The Financial Breakdown:

Under OROP, the central government has disbursed Rs. 42,700 crore to retired defense personnel. This number signifies the large financial commitment undertaken by the government in its pursuit to ensure financial fairness among military retirees.

In terms of beneficiary numbers, approximately 20.6 lakh retired defence personnel have benefited from this scheme. This figure gives a quantitative representation of the impact and reach of the OROP scheme across the military retiree community.

The OROP scheme symbolizes not just financial redistribution, but a step towards equality and recognition for our military personnel’s service to the nation.

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