OROP: Employee and retiree associations have initiated the process of submitting their requests to the 8th Pay Commission. A major request is the enforcement of the One Rank, One Pension (OROP) policy. These groups argue that retired central government workers of the same rank should not experience significant differences in their pensions, even if they retire at different times.
What is the concept of OROP?
The main aim of One Rank, One Pension (OROP) is to address the disparities in pensions among retired individuals holding the same rank and with comparable years of service. Currently, retirees from different periods may receive varying pension amounts due to changes in salary and pension rules across different pay commissions.
Who currently benefits from OROP?
The Indian government introduced OROP for armed forces personnel in 2015, with financial adjustments effective from July 1, 2014. Additionally, specific pension equalization measures are in place for retired judges of the Supreme Court and High Courts, as well as the Comptroller and Auditor General (CAG). Now, employee organizations are advocating for a similar system to be extended to central government civilian staff from levels 1 to 18.
The issue of pension parity has been discussed in previous pay commissions.
C. Srikumar from AIDEF mentioned that previous pay commissions highlighted the necessity of bridging the pension gap between older and newer pensioners. For instance, the 5th Pay Commission proposed updating the pensions of pre-1986 retirees by aligning their pay with rates effective January 1, 1986. The Commission suggested that pensions should not fall below 50% of the minimum salary in the revised pay scale for the relevant position.
The 7th Pay Commission also emphasized the importance of achieving parity between old and new pensioners and suggested gradually narrowing the gap between them.
What are the expectations of employee organizations from the 8th Pay Commission?
AIDEF proposes that notional pay fixation could help link older pensioners to the benefits of subsequent pay commissions. It recommends considering an employee’s position, level, and career growth at the time of retirement, rather than solely relying on the outdated pay scale. The organization suggests that if a position is later upgraded or reclassified to a higher pay grade, earlier retirees from that position should also be eligible for the enhanced status.
What level of pension is AIDEF advocating for under OROP?
AIDEF suggests that pensions should amount to 50% of the pensionable pay determined by the pension fixation, while adhering to the minimum pension and relevant legal regulations for the specific position or level.
What impact could this have on older pensioners?
Should the 8th Pay Commission endorse OROP or a similar pension equalization plan for civilian employees and the government ratify it, the pension discrepancies among individuals in similar roles who retired during different pay commissions might diminish. However, the final outcome hinges on the recommendations of the 8th Pay Commission and the decision of the central government. Presently, this is a request and suggestion from employee groups, not yet a formal policy.