One Rank One Pension deadlock likely to be resolved today, jawans could get a better deal

On the question of arrears, a formula has been suggested by veterans in case the government is unable to pay up due to financial difficulties.

One Rank One Pension deadlock likely to be resolved today, jawans could get a better deal
NEW DELHI: Hopes are high for a resolution to the deadlock over increased pensions for veterans as early as Thursday but all demands put forward by ex-servicemen may not be met. While hectic negotiations are on, at least two sticking points still remain, including the question of arrears worth over Rs 12,000 crore that may have to be paid if the One Rank One Pension ( OROP) demand is met with effect from April 2014.

While several 'solutions' are being suggested, the bigger sticking point seems to be the annual increment of 3% in pensions that is being demanded by veterans.

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Discussions are likely to go on late Wednesday night with a possible announcement on Thursday, sources said. It is also learnt that while contemplating the issue from all angles, including fiscal prudence, the government may end up being more generous to soldiers than to officers, who draw higher pensions.

"Soldiers draw much lesser pensions and their condition on certain cases is pretty bad. The government is aware that theirs is a more pressing need," sources aware of discussions on the subject said. There is a danger however of veteran organisations leading the protest seeing any such move as a way of driving a wedge between retired soldiers and officers.

Veterans are also not budging from their demand that OROP has to be implemented with effect from April 2014, as was announced by the BJP government after it came to power.
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On the question of arrears, a formula has been suggested by veterans in case the government is unable to pay up due to financial difficulties.

"There is a way out. War widows and veterans above the age of 80 be given arrears in cash while the rest can be issued government bonds in case the financial situations demands it. The government, however, should not go back on its promise of implementing it from April 2014," sources said.
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One Rank One Pension: 5 key things to know
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The finance ministry’s main argument is that the full OROP would prove to be a crushing burden on the economy.

But veterans argue that by the government’s own calculation the ORP bill would be Rs 8,600 crore a year, which is not that major an addition to the Rs 54,500-crore defence pensions expenditure estimated for this financial year.
The finance ministry’s main argument is that the full OROP would prove to be a crushing burden on the economy.

But veterans argue that by the government’s own calculation the ORP bill would b..
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Unfortunately, the issue has become highly politicised. After almost a decade of continuously turning down the OROP demand, the UPA suddenly changed its stance as the 2014 general elections neared. It accepted the OROP demand after the personal intervention of Rahul Gandhi.

OROP also became a BJP election plank. After taking over, Modi too announced that OROP would be implemented. However, even after a year the issue appears no closer to resolution with the finance ministry taking a contrary stand on the OROP interpretation. This one year of uncertainty has led to fresh OROP protests.
Unfortunately, the issue has become highly politicised. After almost a decade of continuously turning down the OROP demand, the UPA suddenly changed its stance as the 2014 general elections neared. I..
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While the matter has been festering for decades, it came out in the open only after the Sixth Pay Commission formally dismissed the OROP demand in 2008. Veterans protested, saying that a parliamentary committee had recommended its implementation in 2004.

They argued for special treatment citing the exceptional nature of their job and the fact that most soldiers are forced to retire before the age of 42, leaving them unemployable and in a state of penury.
While the matter has been festering for decades, it came out in the open only after the Sixth Pay Commission formally dismissed the OROP demand in 2008. Veterans protested, saying that a parliamentar..
Read More
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