New OROP formula may be similar to MPs’ pension plan

NEW DELHI  TNN | Jun 5, 2015, 04.48 AM IST : The government is working on a fresh option to resolve the ongoing stand-off over 'one-rank-one-pension' demand of ex-servicemen, sources said on Thursday.  According to a senior government official, they are working on a proposal that would be similar to the pension scheme for MPs. The scheme operates on a band concept, with additional money for each additional year of service. 

READ ALSO: 'One-rank, one-pension' scheme 

The proposal is to create pension bands for each rank, and then provide additional money for each extra year of service. So all officers who retire in a particular rank will be in the same band of pension, with the total pension payment going up according to the number of years he has spent in that rank. 

"We are working out the fine details," one source said. Senior government officials are thrashing out the finer details, and it would be presented to the representatives of ex-servicemen and the military brass. 

The latest move comes even as ex-servicemen are continuing with their protests against what they feel is a huge let down by the Narendra Modi government, which had come to power promising to implement the OROP scheme. 

READ ALSO: Govt deliberately delaying one-rank, one-pension, Cong says 

Expectations of ex-servicemen were raised by repeated assurance from defence minister Manohar Parrikar who said over the recent months that OROP was virtually a "done thing" since it had been cleared by his ministry.

(Source- TOI)

(Pension rules for MPs

8

[8APension]

18a

[(1) With effect from the 18th day of May, 2009, there shall be paid a pension of twenty thousand rupees per mensem to every person who

has served for any period as a Member of the Provisional Parliament or either House of Parliament:

Provided that where a person has served as a member of the Provisional Parliament or either House of Parliament for a period exceeding five years, there shall be paid to him an additional pension of one thousand five hundred rupees per mensem for every year served in excess of five years.]

Explanation.

—For the purpose of this sub-section, "Provisional Parliament" shall include the body which functioned as the Constituent Assembly of

the Dominion of India immediately before the commencement of the Constitution.

18b

[* * * * *]

(2) Where any person entitled to pension under sub-section (1),—

(i) is elected to the office of the President or Vice-President or is appointed to the office of the Governor of any State or the Administrator of any Union Territory; or

(ii) becomes a member of the Council of States or the House of the People or any Legislative Assembly of a State or Union Territory or any

Legislative Council of a State or the Metropolitan Council of Delhi constituted under section 3 of the Delhi Administration Act, 1966; or

(iii) is employed on a salary under the Central Government or any State Government or any corporation owned or controlled by the Central

Government or any State Government, or any local authority or becomes otherwise entitled to any remuneration from such Government,

corporation or local authority; such person shall not be entitled to any pension under sub-section (1) for the period during which he continues to hold such office or as such member, or is so employed or continued to be entitled to such remuneration:

18

Inserted by Act 105 of 1976—effective from 9-9-1976.

18a Substituted by Act 37 of 2010—effective from 18-05-2009.

18b Omitted by Act 40 of 2006—effective from 15-9-2006.

Provided that where the salary payable to such person for holding such office or being such member or so employed, or where the remuneration referred to in clause (iii) payable to such person, is, in either case, less than the pension payable to him under sub-section (1), such person shall be entitled only to receive the balance as pension under that sub-section.

18c [(3) Where any person entitled to pension under sub-section (1) is also entitled to any other pension, such person shall be entitled to receive the pension under sub-section (1) in addition to such other pension.]

(4) In computing the number of years, for the purposes of sub-section (1), the period during which a person has served as a Minister as defined in Salaries and Allowances of Minister Act, 1952 or as an Officer of Parliament as defined in the Salaries and Allowances of Officers of Parliament Act, 1953, (other than the Chairman of the Council of States), or

19

[as a Leader of the Opposition as defined in the Salary and Allowances of Leader of Opposition in Parliament Act, 1977, or

has served in all or any two of such capacities] by virtue of his membership in the House of the People or in the Council of States shall also be taken into account) 

(Source- Via e-mail from  IESM Hyd)