Friday, July 19, 2019

OROP RTI INFORMATION


Office of the CGDA, Ulan Batar Road, Palam, Delhi Cantt-10

Sub: Re-fixation of pension under OROP - reg

        Ministry may kindly refer to their ID No.1(1)/2019/D (Pen/Pol) d/d 28.03.19 forwarding a copy of TRIPAS letter No.C/7026/VII CPC/84/OROP d/d 11.03.19. However, copy of ibid TRIPAS letter has not been found enclosed. It is requested to kindly forward the same.

2.     Further, vide Para 3 of ibid ID, Ministry has requested to start preparatory work for re-fixation of pension under OROP as per para 3(v) of MoD letter dated 7.11.2015. In order to begin work, Ministry is requested to clarify the following:

(a)   W.r.t. Para 3 of GoI, MoD letter dt. 7.11.15, it may be confirmed whether the same methodology is to be employed for calculating OROP rates viz. average of minimum and maximum pension. If so, the year from which data of current retirees is to be used may be specified. 

(b)   OROP was implemented w.e.f. 01.07.2014. Similarly date of effect of this next round of revisions may kindly be intimated.

(c)    It may be recalled that several issues and anomalies regarding OROP implementation has been raised earlier. Government has referred three (03) major categories of these issues to a One Man Judicial Commission appointed vide No. 12 (1)/2014-D (Pen/Pol) d/d 14.12.2015. Various ESM associations had also made reference to this OMJC. The report of OMJC is pending with the Ministry. It may be clarified whether any of the recommendations of the OMJC are to be factored into the new calculations.   

3.    It may be mentioned here that there have been several developments since the issue of OROP orders in 2015-16. The most significant is the implementation of the recommendations of the VIIth CPC. The impact of these recommendations with respect to revision of defence pensions was not factored into the OROP orders. As per the VII CPC orders, pension revision is to be undertaken by two methods and pension disbursed by the more beneficial of the two. The first method requires multiplication of pension as on 31.12.2015 by a factor of 2.57. This has been done by PDAs. The other method requires notional revision of pay across subsequent Pay Commission scales to arrive at a notional pay (and pension) under VIIth CPC scales. This revision has raised the following issues:  

(a)   The notional pay formula brings all past pensioners to current rates, almost as if they were serving under VIIth CPC. This is also the formula used in various Court judgments seeking to equate past pensioners with current retirees. For example, Hon’ble Supreme Court judgment in SPS Vains vs. UoI (2008) case and in DS Nakara case. As such it is a matter for consideration as to whether any logic exists to initiate the process of OROP revision once the pension of past and current pensioners has been equated w.e.f.1.1.2016.  

(b)  The notional pay based revision in respect of defence pensioners has just commenced. The final pension of past pensioners (as on 1.1.2016) is not available until this is completed. Therefore, data for comparing past pensioner with current pensioners is incomplete to that extent.

(c)   Ministry may also kindly refer to WP No. 419/2016 – Indian Ex-Servicemen Movement and others vs. UoI. While preparing to brief Ld ASG, Ministry had requested to compare pension under various Pay Commissions. The result was forwarded to Ministry vide this HQrs UO dated 23.08.2018 (copy enclosed). The sample study indicated that application of multiplication factor to OROP pension has created an anomaly whereby past pensioners are drawing higher pension that those who have retired between 1.7.2014 and 31.12.2015 and post 1.1.2016 retirees. It may be recalled that Service HQrs have also forwarded proposals citing this anomaly and seeking protection of pension of current retirees with respect to OROP pension. If this anomaly turns out to be widespread, the logic of revising pension of past retirees to bring them to the level of current pensioners would not subsist.  

4.   Ministry is requested to give directions of how to proceed further in view of the points mentioned above.

Sd/---------------------
(Kanwaldeep Singh)
Jt. CGDA (Pension)
Shri Pudi Hari Prasad, Joint Sec (ESW)
MoD, Deptt of ESW
South Block, New Delhi
5699/AT-P/OROP-2/Vol-I dated 05.04.2019

Copy to

1.  Shri RK Karna, IDAS, MoD (Fin)       For information w.r.t. above
     South Block, New Delhi        

2.  PCDA (P) Allahabad  : For information with request to compile data in r/o para 3 (c) above.
Sd/---------------------
(Kanwaldeep Singh)
Jt. CGDA (Pension)

Office of the CGDA, Ulan Batar Road, Palam Delhi Cantt - 10

Sub: Writ Petition (Civil) No. 419/2016 – IESM & Others Vs UOI & others

Ref:MoD D (ESW) letter No.4 (5)/2016-D (Pen/Legal) dated 30.07.18

      Ministry may please refer to their above mentioned letter, calling for a comparative table indicating amounts of pension drawn under various Pay Commissions with reference to OROP.

2.   In this regard it is submitted that calculation has been made, as a representative sample, for two ranks of JCOs/ORs (Havildar and Naib Subedar) and two ranks of Commissioned Officers (Lt Col & Brigadier). The calculation sheet is attached as Annexure A & B for JCOs & Ors and Commissioned Officers respectively. 

3.   It is submitted that since 6th CPC, two revisions have been made for pre-2006 PBOR pensioners i.e. w.e.f. 01.09.2009 (CSC-2009) and 24.09.2012 (CSC-2012) with the intention to bring them at par with current pensioners. In addition, OROP benefits were given w.e.f. 01.07.2014. On analysing the data of post OROP pensioners, it is seen that: -

(a) Out of 668 retirees in the period 01.07.2014 to 31.12.2015 in the rank of Havildar, more than 20% of post OROP retirees are drawing pension less than OROP rate i.e. OROP pension is higher than pension of future retirees.

(b)  The difference is more prominent in the rank of Nb. Sub where more than 95% of post-OROP retired Nb. Subedars are drawing less pension than OROP rates.

(c)  More than 95% of post 01.01.2016 retirees in the rank of Nb. Sub draw less pension than the revised pension amount of OROP beneficiaries.

4.   This indicated that a significant proportion of post OROP retirees are getting less pension than past pensioners whose pension has been ameliorated as per OROP.

Sd/------------
Accounts Officer (AT-Pen)

Shri R K Arora, Under Secretary (P/L-II)
MoD, Deptt of ESW
Room No. 224, B-Wing, Sena Bhawan, New Delhi    
UO No. 5699/AT-P/OROP/Vol-XiX dated 23.08.2018

Copy to           

1. Shri Manoj Sinha, Under Secretary
    MoD, Deptt of ESW :          For information w.r.t. above
    222, B Wing, New BhawanNew Delhi

2.   PCDA (P) Allahabad          For Information w.r.t. above
----------------------------------------------------------------------------
                                                                                  Annexure A

REPRESENTATIVE SAMPLE CALCULATION FOR JCOs/ORs
Sl No.
Rank
Date
Havildar
Nb. Sub
Group
Y
Y
QS (Term of engagement)
24
26
1
2
3
4
1
Pension in 4thCPC (w.e.f 1.1.1986)
1.1.86
689
1057
2
Revision in 5thCPC
1.1.96
2104
3201
3
Revision 6thCPC
1.1.06
5085
7486
4
Modified Pay Parity
1.1.06
5820
8330
5
Revision as per CSC - 2009
1.07.09
6465
10029
6
Revision as per CSC – 2012
24.09.12
7375
10029
7
Revision as per OROP
1.07.14
7808
10405
8
Revision in 7thCPC (Col 7 x 2.57)
01.01.16
20067
28741
9
Pension as 1.1.2016 if OROP not given (Col 6 x 2.57)
01.01.16
18954
25775



ANALYSIS OF POST 01.07.2014 RETIREES

Time period
Havildar
Naib Subedar*
Total No. of pensioners with QS 24 Yrs in Gp Y
Pensioners drawing less than OROP rate
% of pensioners drawing less than OROP
Total No. of pensioners with QS 26 Yrs in Gp Y
Pensioners drawing less than OROP rate
% of pensioners drawing less than OROP
1.07.14 to 31.12.15
668
134
20.06
463
450
97.19
01.01.16 onwards
4091
Nil
432
418
96.75
* Majority of Nb Sub who have retired after 2014 are currently drawing less pension than OROP


Annexure B

REPRESENTATIVE SAMPLE CALCULATION FOR COMMISSIONED OFFICERS

1
Lt Colonel
Brigadier
2
Standard Qualifying Sevice
24
28
3
Pay (4th CPC)
Min Pay
Max Pay
Min Pay
Max Pay
4
Pay
3900
5100
4950
5100
5
Pension
4th CPC
2208
2772
3075
3150
6
Pension under 5thCPC under consolidation
w.e.f. 1.1.1996
5953 to 7286
7993 to 8105
7
Pension under modified parity 5thCPC
w.e.f. 1.1.1996
7093
9550
Range
01.01.96
7093 to 7286
9550 to 9550 (?)
8
Pension under 6thCPC by multiplication method
w.e.f. 1.1.2006
16032 to 16487
21583
9
Pension under Modified Parity
w.e.f. 1.1.2006
26265
29145
10
Revision under OROP
w.e.f.1.7.14
32428
36420
11
Revision in 7th CPC (Col 10 x 2.57
w.e.f 1.1.2016
83340
93600
12
Revision if he had not been granted OROP (Col 9 x 2.57)
w.e.f.
1.1.2016
67502
74903

           
                 ANALYSIS OF NON-OROP BENEFICIARIES

Time period
Lt Col *
Brigadier
Total No. of pensioners with QS 24 years
Pensioners drawing less than OROP rate
% of pensioners drawing less than OROP
Total No. of pensioners with QS 28 years
Pensioners drawing less than OROP rate
% of pensioners drawing less than OROP
1.07.14 to 31.12.15
246
232
94.3
97
8
8.25
1.01.16 onward
514
401
78.02
239
1
0.42
* Majority of Lt Col who have retired after 2014 are currently drawing less pension than OROP


 (SOURCE : AERIAL VIEW BLOG)